WORK SESSION

HB 2030, HB 2031, HB 2032

 

TAPE 34 A

 

HOUSE REVENUE COMMITTEE

FEBRUARY 8, 2005   1:30 PM   STATE CAPITOL BUILDING

 

Members Present:                      Rep. Tom Butler, Chair

                                                Rep. Vicki Berger, Vice-Chair

                                                Rep. Mark Hass, Vice-Chair

                                                Rep. Brian Boquist

                                                Rep. Sal Esquivel                                       

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Andy Olson

                                                Rep. Chuck Riley

                       

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Economist

                                                Debra Buchanan, Finance Director, Dept. of Revenue

                                                Joan Robinson, Legislative Counsel

                                                Kristi Bowman, Committee Assistant

                                               

 

TAPE 34, SIDE A

002

Chair Butler

Calls meeting to order at 1:35 p.m.

 

 

 

OPENS WORK SESSION FOR HOUSE BILL 2030

 

006

Mazen Malik

Provides overview of this bill (Exhibit 1) originally discussed on 01/27/05. This bill will allow state agencies to use Electronic Fund Transfers (EFT) or Store Value Cards for payment from various state programs. Discusses the -1 amendment (Exhibit 2) which addresses the concerns from counties who do not have the ability to receive electronic funds. The amendment also addresses the concern that Dept. of Revenue does not have to use EFT for tax refunds as their only method of payment.

 

 

 

030

Chair Butler

Asks for explanation of section b (line 2) in the amendment.

 

 

 

033

Malik

Responds that the language prohibits an agency from assessing penalties against a payee unable to receive payment via EFT.

 

 

 

039

Chair Butler

Asks for explanation of section 3 (line 10).

 

 

 

041

Malik

Explains that this section states that the Dept. of Revenue is exempt from using  EFT as the primary method of payment. They will still be able to use paper checks.

 

 

 

055

Rep. Boquist

Requests from the chair that a representative from the Dept. of Revenue confirm that these changes are approved by the agency.

 

 

 

061

Debra Buchanan

Provides expert testimony. Confirms that the Dept. of Revenue will not draft rules that mandate taxpayers to receive funds via EFT only. She expresses concern about the increased use of direct deposit with refunds in the future and the possibility of the Dept. of Revenue being in violation of this statute.

 

 

 

079

Rep. Riley

Agrees with Ms. Buchanan about her concerns.  The language in the amendment is ambiguous.

 

 

 

096

Chair Butler

Committee stands at ease at 1:40 p.m.

 

 

 

098

Chair Butler

Reconvenes at 1:50 p.m. Continues work session on House Bill 2030.

 

 

 

129

Malik

Discusses fiscal information received from fiscal office and a new fiscal impact statement from the Dept. of Justice (Exhibit 4) that will be reviewed by the fiscal office soon.

 

 

 

143

Chair Butler

Expresses concern about revised wording on amendment.

 

 

 

158

Joan Robinson

Explains wording on amendment. The language after line 17 was designed to prevent the Dept. of Revenue from requiring taxpayers to accept electronic funds transfers. She suggests alternative language.

 

 

 

190

Chair Butler

Asks Ms. Robinson to clarify the wording in the amendment with Dept. of Revenue and  the State Treasurer’s Office.

 

 

 

200

Chair Butler

Continues House Bill 2030 to a future work session date.

 

 

 

CLOSES WORK SESSION FOR HB 2030

 

 

 

OPENS WORK SESSION FOR HB 2031

 

 

 

210

Malik

Provides overview of House Bill 2031 (Exhibit 5). The bill allows an electronic image of a check to be proof of a check instead of a paper check. Aligns with the new Check-21 standards.

 

 

 

227

Chair Butler

Reviews bill history.

 

 

 

233

Rep. Berger

MOTION: MOVES HB 2031 TO THE FLOOR WITH A DO-PASS RECOMMENDATION AND TO BE PLACED ON THE CONSENT CALENDAR.

 

240

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS. MOTION PASSES 9-0-0. ANSWERING AYE: BERGER, HASS, BOQUIST, ESQUIVEL, GALIZIO, KOMP, OLSON, RILEY, BUTLER.

 

CLOSES WORK SESSION FOR HB 2031

 

 

 

OPENS WORK SESSION FOR HB 2032

 

247

Malik

Provides overview of House Bill 2032 (Exhibit 6). This bill pertains to cash flow projections and examinations of these projections by the State Treasurer. No revenue or fiscal impact.

 

 

 

261

Chair Butler

Asks if cash flow projections are required each time of an issuance of revenue bonds.

 

 

 

263

Malik

Responds that this is the current policy, and this bill would provide more flexibility for agencies with the reporting requirements.

 

 

 

280

Rep. Berger

MOTION: MOVES HB 2032 TO THE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

283

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS. MOTION PASSES 9-0-0. ANSWERING AYE: BERGER, HASS, BOQUIST, ESQUIVEL, GALIZIO, KOMP, OLSON, RILEY, BUTLER.

 

 

 

CLOSES WORK SESSION FOR HB 2032

 

290

Chair Butler

Adjourns meeting at 2:05 p.m.

 

 

 

Additional information submitted by State Treasurer Office regarding various bonding programs discussed in public hearing for House Bill 2041 on 02/03/05. (Exhibit 7).

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  • 1.      HB 2030, Staff Measure Summary, Malik, 1 pg., 02/08/05
  • 2.      HB 2030, Proposed Amendment HB 2030-1, Malik, 1 pg., 02/07/05
  • 3.      HB 2030, Fiscal Analysis, Legislative Fiscal Office, 1 pg., 02/07/05
  • 4.      HB 2030, Fiscal Impact Estimate, Dept. of Justice, 1 pg., 02/07/05
  • 5.      HB 2031, Staff Measure Summary, Malik, 1 pg., 02/08/05
  • 6.      HB 2032, Staff Measure Summary, Malik, 1 pg., 02/08/05
  • 7.      HB 2041, Follow-up information, State Treasurer’s Office, 25 pp., 02/07/05