Legislature(2003 - 2004)

03/05/2004 08:04 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 422-BUDGET RESERVE FUND INVESTMENT                                                                                         
Number 0552                                                                                                                     
CHAIR WEYHRAUCH  announced that  the last  order of  business was                                                               
HOUSE  BILL NO.  422, "An  Act repealing  the special  subaccount                                                               
established in  the constitutional budget reserve  fund; relating                                                               
to the powers of the Department  of Revenue for the investment of                                                               
amounts in the constitutional budget  reserve fund; and providing                                                               
for an effective date."                                                                                                         
Number 0543                                                                                                                     
REPRESENTATIVE  SEATON moved  to adopt  the committee  substitute                                                               
(CS)  for HB  422, Version  23-LS157\Q, Cook,  3/4/04, as  a work                                                               
draft.   [No objection was stated,  and Version Q was  treated as                                                               
Number 0450                                                                                                                     
REPRESENTATIVE GRUENBERG moved Amendment 1 to Version Q.                                                                        
REPRESENTATIVE HOLM objected.                                                                                                   
Number 0398                                                                                                                     
The committee took an at-ease from 9:37 a.m. to 9:38 a.m.                                                                       
TAPE 04-30, SIDE A                                                                                                            
Number 0001                                                                                                                     
REPRESENTATIVE GRUENBERG  said he wanted  to know if  Amendment 1                                                               
would give the Department of Revenue additional flexibility.                                                                    
Number 0058                                                                                                                     
TOMAS   H.   BOUTIN,   Deputy   Commissioner,   Office   of   the                                                               
Commissioner, Department of Revenue,  responded that while he has                                                               
no  problem  with  Amendment  1,  it  would  not  really  provide                                                               
additional flexibility.   Furthermore, he stated  that Version Q,                                                               
without Amendment 1,  would "do just fine," and  is worded better                                                               
than the original bill.                                                                                                         
Number 0126                                                                                                                     
REPRESENTATIVE GRUENBERG withdrew Amendment 1.                                                                                  
Number 0156                                                                                                                     
REPRESENTATIVE  HOLM  moved  to  report  CSHB  422,  Version  23-                                                               
LS1527\Q,  Cook,   3/4/04,  out  of  committee   with  individual                                                               
recommendations [and the accompanying fiscal note].                                                                             
REPRESENTATIVE  SEATON  objected  for discussion  purposes.    He                                                               
turned to  the title  of Version  Q.  He  asked, "If  the special                                                               
subaccount established in the  constitutional budget reserve fund                                                               
(CBRF)  is repealed,  does the  money automatically  flow to  the                                                               
CBR, or does it flow to the general fund?"                                                                                      
Number 0200                                                                                                                     
MR. BOUTIN stated he is certain it  would be part of the CBR.  He                                                               
said the  department currently reports  the CBR  balance, without                                                               
even delineating the CBR.   He explained that the only difference                                                               
in the  subaccount is that it  needs to be invested  with a five-                                                               
year minimum time horizon in mind.                                                                                              
REPRESENTATIVE SEATON explained  that he wanted it  on the record                                                               
that "this was not a ... CBR draw that we were offering."                                                                       
Number 0300                                                                                                                     
REPRESENTATIVE  GRUENBERG moved  [Amendment  2 to  Version Q],  a                                                               
technical  amendment that  would remove  the words,  "On July  1,                                                               
2004,"  from page  1, line  7 of  Version Q.   He  explained that                                                               
since the committee had changed  the effective date from "July 1,                                                               
2004" in  the original bill  version to  "effective immediately",                                                               
the July  1, 2004 date in  the "TRANSITION" part of  the bill was                                                               
no longer accurate.                                                                                                             
MR. BOUTIN concurred.                                                                                                           
Number 0339                                                                                                                     
REPRESENTATIVE HOLM,  at the bequest  of the chair,  withdrew his                                                               
previously  stated motion  [as  a  point of  order,  so that  the                                                               
committee could address Amendment 2].                                                                                           
REPRESENTATIVE  GRUENBERG questioned  whether  the  tense of  the                                                               
word "merge" on page 1, line 8 should be changed.                                                                               
Number 0374                                                                                                                     
CHAIR  WEYHRAUCH  offered his  understanding  that  line 7  would                                                               
therefore begin with the word "The".                                                                                            
REPRESENTATIVE  SEATON asked  for  clarification  on whether  the                                                               
word "TRANSITION" would be deleted.                                                                                             
CHAIR WEYHRAUCH announced that,  without objection, the technical                                                               
[Amendment 2] was so ordered.                                                                                                   
Number 0400                                                                                                                     
REPRESENTATIVE HOLM moved to report  CSHB 422, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  note.    There  being no  objection,  CSHB  422(STA)  was                                                               
reported out of the House State Affairs Standing Committee.                                                                     

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