SENATE THIRD SPECIAL SESSION

COMMITTEE ON SENATE BUDGET

June 29, 2002 Hearing Room B

5:30 p.m. Tape 19

MEMBERS PRESENT: Sen. Len Hannon, Chair

Sen. Peter Courtney

Sen. Avel Gordly

Sen. John Minnis

Sen. Dave Nelson

STAFF PRESENT: Lizbeth Martin-Mahar, Legislative Revenue Office Economist

Patsy Wood, Committee Assistant

MEASURE/ISSUES HEARD: HB 4064A Public Hearing and Work Session

HB 4065 Public Hearing and Work Session

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 19, A
004	Chair Hannon	Calls the meeting to order at 5:38 p.m. and opens a public hearing on HB 4064A which sunsets the cigarette tax rate increase in HB 4051 on July 1, 2009, if enrolled HB 4051 becomes law.
007	Lizbeth Martin-Mahar	LRO Economist. States that HB 4064A puts a sunset of January 1, 2009 on a cigarette tax, if enrolled HB 4051 becomes law.
020	Sen. Minnis	Asks why the fiscal impact sunsets the tax on July 1, 2009 and the revenue impact sunsets the tax on January 1, 2009.
023	Martin-Mahar	States that the revenue impact should read July 1, 2009.
HB 4064A PUBLIC HEARING
027	Chair Hannon	Opens the public hearing on HB 4064A. No one testifies so he closes the public hearing and opens a work session.
HB 4064A WORK SESSION
032	Chair Hannon	MOTION: Moves HB 4064A to the floor with a PASSAGE OF THE A-ENGROSSED MEASURE recommendation.
		VOTE: 5-0
035	Chair Hannon	Hearing no objection, declares the motion CARRIED. SEN. HANNON will lead discussion on the floor.
036	Chair Hannon	Closes the work session on HB 4064A and opens a public hearing on HB 4065 which refers enrolled HB 4051 to a vote of the people.
HB 4065 PUBLIC HEARING
038	Lizbeth Martin-Mahar	LRO Economist. Further explains that this referral will take place at a special election on September 17, 2002. Indicates that the revenue impact will have a loss of $8.1 million as the effective date of HB 4051C will move to November 1, 2002 rather than October 1, 2002.
049	Sen. Minnis	Asks if the cost of having a special election is somehow recaptured.
050	Martin-Mahar	Answers that the fiscal cost of this election was not taken into account.
052	Sen. Minnis	Wonders if the special election cost was taken into account in an earlier version of this legislation.
054	Martin-Mahar	Responds that HB 4059 had cost for a special election September 17 for HJR 80. Notes that there will be incremental costs to also refer HB 4051, but they will not be significant.
065	Chair Hannon	Closes the public hearing on HB 4065 and opens a work session.
HB 4065 WORK SESSION
068	Sen. Minnis	MOTION: Moves HB 4065 to the floor with a DO PASS recommendation.
		VOTE: 5-0
071	Chair Hannon	Hearing no objection, declares the motion CARRIED. SEN. HANNON will lead discussion on the floor.
073	Chair Hannon	Closes the work session on HB 4065 and adjourns the meeting at 5:43 p.m.

Submitted By, Reviewed By,

Patsy Wood Gina Rumbaugh,

Committee Assistant Legislative Fiscal Office Manager