HOUSE SPECIAL SESSION COMMITTEE ON BUDGET

Second Special Session

March 2, 2002 Hearing Room F

2:00 p.m. Tapes 6 - 7

MEMBERS PRESENT:

Rep. Ben Westlund, Chair

Rep. Jan Lee

Rep. Susan Morgan

Rep. Kurt Schrader

Rep. Lane Shetterly

STAFF PRESENT:

Adrienne Sexton, Administrator

Paul Warner, Legislative Revenue Officer

Dick Yates, Legislative Revenue Office

Harrison Conley, Legislative Counsel's Office

Sandy Thiele-Cirka, Administrative Support

MEASURES HEARD: Public Hearing and Work Session

HJR 76

HB 4034-A

HB 4041

HB 4042

Introduction of Committee Measures

LC 53 – Revenue Bonds for State School Funds

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 6, A
004	Chair Westlund	Calls meeting to order at 2:29 p.m. and opens public hearing on HJR 76.
HJR 76 – PUBLIC HEARING
008	Chair Westlund	Closes public hearing on HJR 76 and opens work session on HJR 76.
HJR 76 – WORK SESSION
010	Paul Warner	Legislative Revenue Officer, Legislative Revenue Office. Summarizes and submits amendments –2 (3/1/02), -4 (3/2/02) and the –5 (3/2/02) amendments (EXHIBIT A). Reviews the estimated end-of-year balance chart (EXHBIT B).
043	Rep. Shetterly	Provides additional clarification (EXHIBIT B).
052	Rep. Shetterly	MOTION: Moves to ADOPT HJR 76 –2 amendments dated 3/1/02.
055	Rep. Schrader	Comments on the amendments not before the committee. Notes possible confusion between SJR 50 and HJR 76.
072	Rep. Shetterly	Responds that Rep. Schrader’s question is based on the possibility that both resolutions will be on ballot.
083	Rep. Schrader	Questions the purpose of the –5 amendments (EXHIBIT A).
085	Chair Westlund	Responds that the –5 amendments (EXHIBIT A) are being proposed as a back up.
095	Rep. Schrader	Responds in agreement.
101	Rep. Lee	Notes concern and opposition to the 200 and 220 figures being proposed. States opposition to the –2, -4, and –5 amendments (EXHIBIT A).
114	Chair Westlund	Acknowledges concerns and states that if the proposed amount is not approved that the ability to fund schools will be in question.
121	Rep. Lee	States support for the resolution but not the proposed dollar figure.
124	Rep. Shetterly	Provides further clarification regarding the location of the fund.
138	Rep. Lee	Comments on the backfill situation and the remaining budget shortfall.
156		VOTE: 4-1-0 AYE: 4 – Morgan, Schrader, Shetterly, Westlund NAY: 1 - Lee
	Chair Westlund	The motion CARRIES.
158	Rep. Shetterly	MOTION: Moves to ADOPT HJR 76-4 amendments dated 3/2/02.
		VOTE: 5-0-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
160	Rep. Shetterly	MOTION: Moves to ADOPT HJR 76-5 amendments dated 3/2/02.
		VOTE: 3-2-0 AYE: 3 - Morgan, Shetterly, Westlund NAY: 2 - Lee, Schrader
	Chair Westlund	The motion CARRIES.
165	Chair Westlund	MOTION: Moves HJR 76 be sent to the floor with a BE ADOPTED AS AMENDED recommendation.
		VOTE: 4-1-0 AYE: 4 - Morgan, Schrader, Shetterly, Westlund NAY: 1 - Lee
	Chair Westlund	The motion CARRIES. REP. SHETTERLY will lead discussion on the floor.
179	Chair Westlund	Closes work session on HJR 76 and opens public hearing on HB 4034 A.
HB 4034 A - PUBLIC HEARING
186	Chair Westlund	Closes public hearing on HB 4034 A and opens work session on HB 4034 A.
HB 4034 A - WORK SESSION
191	Rep. Shetterly	MOTION: Moves to ADOPT HB 4034 –A2 amendments dated 3/1/02 (EXHIBIT C).
		VOTE: 5-0-0
210	Chair Westlund	Hearing no objection, declares the motion CARRIED.
211	Rep. Shetterly	MOTION: Moves HB 4034A to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 5-0-0
215	Chair Westlund	Hearing no objection, declares the motion CARRIED. REP. SHETTERLY will lead discussion on the floor.
216	Chair Westlund	Closes work session on HB 4034A and opens public hearing on HB 4041.
HB 4041 - PUBLIC HEARING
219	Chair Westlund	Closes public hearing on HB 4041 and opens work session on HB 4041.
HB 4041 - WORK SESSION
234	Warner	Summarizes –2 amendments (3/1/02) (EXHIBIT D).
242	Rep. Shetterly	MOTION: Moves to ADOPT HB 4041 –2 amendments dated 3/1/02.
248	Rep. Shetterly	Provides additional clarification on the ballot title opinion.
		VOTE: 4-1-0 AYE: 4 - Morgan, Schrader, Shetterly, Westlund NAY: 1 - Lee
	Chair Westlund	The motion CARRIES.
270	Chair Westlund	MOTION: Moves HB 4041 to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 4-1-0 AYE: 4 - Morgan, Schrader, Shetterly, Westlund NAY: 1 - Lee
	Chair Westlund	The motion CARRIES. REP. SHETTERLY will lead discussion on the floor.
277	Chair Westlund	Closes work session on HB 4041 and opens public hearing on HB 4042.
HB 4042 - PUBLIC HEARING
279	Chair Westlund	Closes public hearing on HB 4042 and opens work session on HB 4042.
HB 4042 - WORK SESSION
284	Warner	Summarizes and reviews –1 amendment (3/2/02) (EXHIBIT E).
305	Rep. Schrader	Questions and requests clarification of line 20 and the current language.
312	Warner	Responds the current language reflects current law.
319	Rep. Shetterly	Clarifies title reflected on the agenda.
324	Rep. Shetterly	MOTION: Moves to ADOPT HB 4042 –1 amendments dated 3/2/02.
329	Rep. Lee	Acknowledges support.
334	Rep. Shetterly	MOTION: Moves HB 4042 to the floor with a DO PASS AS AMENDED recommendation.
338	Chair Westlund	Hearing no objection, declares the motion CARRIED. REP. SHETTERLY will lead discussion on the floor.
342	Chair Westlund	Recesses meeting 2:50 p.m. and reconvenes at 3:43 p.m. Opens a public hearing on the introduction of committee bills.
INTRODUCTION OF COMMITTEE BILLS
LC 53 - PUBLIC HEARING
354	Chair Westlund	Closes public hearing on the introduction of LC 53 and opens a work session on LC 53.
LC 53 - WORK SESSION
371	Dick Yates	Economist, Legislative Revenue Office. Summarizes LC 53 (EXHIBIT F). Notes similarities with HB 4034.
389	Rep. Shetterly	Questions if the figure should be $120 million.
400	Harrison Conley	Deputy Legislative Counsel, Legislative Counsel's office. Responds that SJR 50 provides the $120 million and LC 53 adds $100 million in order that the total equals $220 million.
413	Rep. Schrader	Requests clarification that SJR 50 is $120 million and LC 53 is $100 million. Ask how the figures are interfaced.
416	Conley	Responds and clarifies that LC 53 will only be enacted if HJR 76 fails and SJR 50 passes at the election.
432	Rep. Shetterly	Questions the consequences if SJR 50 is not on the ballot.
438	Conley	Responds that if SJR 50 is on the ballot, that situation is addressed in HB 4034.
452	Rep. Shetterly	MOTION: Moves LC 53 BE INTRODUCED as a committee bill.
456	Rep. Schrader	Questions if SJR 50 passes and HJR 76 fails whether the goal of LC 53 is to allocate tobacco revenue bonds to generate the $220 million figure.
468	Chair Westlund	Responds affirmatively.
		VOTE: 4-1-0 AYE: 4 - Morgan, Schrader, Shetterly, Westlund NAY: 1 - Lee
472	Chair Westlund	The motion CARRIES
481	Chair Westlund	Recesses meeting at 3:48 p.m.
TAPE 7, A
001	Chair Westlund	Reconvenes meeting at 4:31 p.m. and opens public hearing on HB 4043.
HB 4043 - PUBLIC HEARING
003	Chair Westlund	Closes public hearing on HB 4043 and opens work session on HB 4043.
HB 4043 - WORK SESSION
008	Rep. Shetterly	MOTION: Moves HB 4043 to the floor with a DO PASS recommendation.
		VOTE: 3-0-2 AYE: 3 - Morgan, Shetterly, Westlund EXCUSED: 2 – Lee, Schrader
	Chair Westlund	The motion CARRIES. REP. SHETTERLY will lead discussion on the floor.
012	Chair Westlund	Recesses the meeting at 4:34 p.m. NOTE: The committee did not reconvene.

Submitted By, Reviewed By,

Sandy Thiele-Cirka, Adrienne Sexton,

Administrative Support Administrator

EXHIBIT SUMMARY

A – HJR 76, -2 (3/1/02), -4 (3/2/02), -5 (3/2/02) amendments, staff, 3 pp

B – Education Stability Fund Balance Chart, staff, 1 p

C – HB 4034A, -A2 amendment, dated 3/1/02, staff, 1 p

D – HB 4041, -2 amendment, dated 3/1/02, staff, 1 p

E – HB 4042, -1 amendment, dated 3/2/02, staff, 1 p

F – LC 53 (HB 4043), dated 3/2/02, staff, 16 pp