SENATE SPECIAL SESSION COMMITTEE ON REVENUE

 

 

June 17, 2002 Hearing Room A

10:00 am Tapes  10 - 11

 

MEMBERS PRESENT:            Sen. Ted Ferrioli, Chair

Sen. Joan Dukes

Sen. Bill Fisher

Sen. John Minnis

Sen. Cliff Trow

 

STAFF PRESENT:                  Paul Warner, Administrator

Nancy Massee, Administrative Support

 

MEASURE/ISSUES HEARD:

                                                HB 4050 Public Hearing

                                                HB 4052A Public Hearing

                                                HB 4056 Public Hearing

                                                HB 4059 Public Hearing

                                                SB 1021 Public Hearing

 

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 10, A

004

Chair Ferrioli

Convenes meeting at 1:55 p.m. 

010

Paul Warner

Discusses Division of State Lands (DSL) legislative concept in regard to distribution of their earnings.  Discusses size and number of firms in the state.  Refers to tables. (EXHIBIT A)

038

Chair Ferrioli

Explains tap tap hearings on HB 4059, HB 4056, HB 4052, and HB 4050A.  Announces Powerpoint presentation on PERS Benefits by Dick Yates, Legislative Fiscal Office (LFO).  Opens public hearing on SB 1021.

SB 1021 PUBLlC HEARING

010

Dick Yates

LFO. Gives powerpoint presentation on PERS Benefits Simplified.  Discusses how changes in mortality tables have effect on benefits to retirees.  (EXHIBIT B)

100

Yates

Explains reduction of 10 percent in benefits.  Explains how different actions on the bill will affect beneficiaries. 

124

Sen. Trow

Asks about the multi segment approach.

125

Yates

Answers, no, that is the approach in HB 4057.

127

Chair Ferrioli

Asks about Wear Away.  Does it refer to diminishment of benefits?

139

Yates

PERS named Wear Away.  Explains the growth in benefits occurring each year under each system. No action system produces negative results at first. Explains benefits with new mortality rates.  Looks at benefits with floor.  No change in benefits first two biennia.   Refers to the 5-Year Wear Away approach.  That needs a rule for adding losses. 

190

Yates

Continues explaining the results of different actions on SB 1021.

229

Yates

Explains the segmented approach in HB 4057.  Explains savings to the state.

280

Chair Ferrioli

Asks for questions.  Welcomes Sen. Morrisette.  Reiterates the savings for employers and the range of savings in the three approaches.

310

Sen. Morrisette

Asks if the 10 percent reduction in loss is.  Relates a concern in the graduated part.

312

Yates

Explains what happens to member balances.  Explains his assumptions in the example he gave earlier of growth of 8 percent a year.  Variables would be more complicated.  Explains changes in mortality tables effects.  Explains the 10 percent reduction.

350

Chair Ferrioli

Says he has not heard from the employee representatives on the bill.  Closes public hearing on SB 1021.  Opens public hearing on HB 4059, HB 4051, HB 4052, and HB 4056.

 HB 4059 PUBLIC HEARING

374

Warner

Explains briefly HB 4059.

399

Chair Ferrioli

These are companion bills to HJR 80?

400

Warner

And HB 4051.

405

Sen. Trow

Asks what they put on the ballot to vote on.

406

Warner

The two issues to vote on are the HJR 80, the stability fund measure, and an increase on the cigarette tax to $1.43 per pack.

404

Chair Ferrioli

Questions.  Closes public hearing on HB 4059.  Opens public hearing on HB 4056.

HB 4056 PUBLIC HEARING

420

Warner

Explains briefly HB 4056.

436

Chair Ferrioli

Questions?

438

Sen. Trow

Asks if this would go into effect if the measure fails. Then you have the automatic backup financing with bonding?

439

Warner

Correct.  Financing is revenue bonds backed by the master settlement agreement.  The model this is based on is SB 832.

414

Chair Ferrioli

Questions?  Closes HB 4056.  Opens public hearing on HB 4052A.

HB 4052A PUBLIC HEARING

456

Warner

Explains briefly HB 4052A.

TAPE 11A

022

Chair Ferrioli

Questions? Any testimony? Closes public hearing.  Opens public hearing HB 4050.

HB 4050 PUBLIC HEARING

 

Chair

Questions?  Testimony?  Closes public hearing.  Awaiting amendments on HJR 80.  At 2:30 p.m., recesses until 4:00 p.m.

050

Chair Ferrioli

Reconvenes at 4:15 p.m.  SJR 80 amendments are being distributed to Revenue and Fiscal.  Adjourns meeting at 4:17 p.m.

 

Submitted By,                        Reviewed By,

 

 

 

Nancy Massee                        Paul Warner

Administrative Support                        Administrator

 

EXHIBIT SUMMARY

 

A -  DSL concept and tables, staff, 5 pp

B – PERS Benefits Simplified, 9 pp