Legislature(2017 - 2018)HOUSE FINANCE 519

05/09/2017 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 159 OPIOIDS;PRESCRIPTIONS;DATABASE;LICENSES TELECONFERENCED
<Bill Hearing Canceled>
+= HB 150 PAY, ALLOWANCES, BENEFITS FOR MILITIA MEM TELECONFERENCED
Moved HB 150 Out of Committee
+= HB 124 BENEFIT CORPORATIONS TELECONFERENCED
Moved CSHB 124(FIN) Out of Committee
+ HB 142 UNEMPLOYMENT COMPENSATION BENEFITS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 74 DRIVER'S LICENSE & ID CARDS & REAL ID ACT TELECONFERENCED
Moved CSHB 74(FIN) Out of Committee
HOUSE BILL NO. 124                                                                                                            
                                                                                                                                
     "An Act relating to corporations, including benefit                                                                        
     corporations, and other entities; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
2:29:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster MOVED to ADOPT Amendment 2 (copy on file):                                                                      
                                                                                                                                
     Page 15, following line 2:                                                                                                 
          Insert a new section to read:                                                                                         
                                                                                                                                
               "Sec. 10.60.725.  Reliance by  third parties.                                                                    
               (a) A person who,  in good faith, enters into                                                                    
               a transaction with  a benefit corporation may                                                                    
               assume without inquiry  that the transaction,                                                                    
               and each  action or inaction by  any director                                                                    
               or officer of  the benefit corporation giving                                                                    
               effect to the  transaction, does not conflict                                                                    
               with   the   benefit  corporation's   general                                                                    
               public  benefit  purpose or  specific  public                                                                    
               benefit purpose.                                                                                                 
                                                                                                                                
               (b)  Nothing   in  this  section   exempts  a                                                                    
               covered     financial    institution     from                                                                    
               identifying  and   verifying  the  beneficial                                                                    
               owner of  a legal  entity that is  a customer                                                                    
               as required  under a federal or  state law or                                                                    
               regulation.  In   this  subsection,  "covered                                                                    
               financial institution" has the meaning given                                                                     
               in 31C.F.R.1010.605."                                                                                            
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Foster  invited his staff  to the table  to explain                                                                    
the amendment.                                                                                                                  
                                                                                                                                
JANE PIERSON,  STAFF, REPRESENTATIVE NEAL  FOSTER, explained                                                                    
that Amendment  2 was  the safe  harbor amendment  which had                                                                    
been offered  before. The language  had been  corrected. The                                                                    
amendment  operated  as  a  safe  harbor  for  parties  that                                                                    
entered   into   contractual  relationships   with   benefit                                                                    
corporations. It prevented third  parties from being able to                                                                    
assume a contract,  made sure the contract  did not conflict                                                                    
with any public benefit  goals, and provided assurances that                                                                    
the contract  would be enforced.  The amendment  was offered                                                                    
to provide  contractual certainty  to third  parties dealing                                                                    
with benefit corporations.                                                                                                      
                                                                                                                                
Ms.  Pierson continued  that absent  the proposed  language,                                                                    
third parties  might feel compelled  to make  an independent                                                                    
assessment of  whether the transaction satisfied  the public                                                                    
benefit requirement.  The analysis  might increase  the cost                                                                    
of completing  transactions and make some  transactions more                                                                    
difficult to complete. The safe  harbor amendment would make                                                                    
it easier for benefit  corporations to include third parties                                                                    
to transact business with them.                                                                                                 
                                                                                                                                
Co-Chair Foster relayed the list of available testifiers.                                                                       
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment 2 was ADOPTED.                                                                              
                                                                                                                                
Vice-Chair Gara reviewed the fiscal note:                                                                                       
                                                                                                                                
     [FN1 - Fiscal Impact Note]                                                                                                 
     Department: Department of Commerce, Community and                                                                          
     Economic Development                                                                                                       
     Appropriation: Corporations, Business and Professional                                                                     
     Licensing                                                                                                                  
     Allocation: Corporations, Business and Professional                                                                        
     Licensing                                                                                                                  
     OMB Component Number: 2360                                                                                                 
                                                                                                                                
Vice-Chair  Gara reported  that  the cost  reflected in  the                                                                    
fiscal  note was  $27,400 in  the first  year with  no other                                                                    
costs  estimated in  the future.  The costs  had to  do with                                                                    
database changes to accommodate the new from of business.                                                                       
                                                                                                                                
Representative  Wilson noted  that the  costs were  paid for                                                                    
through program  receipts but  wanted further  detail. Vice-                                                                    
Chair  Gara thought  the committee  should defer  to someone                                                                    
from DCCED.                                                                                                                     
                                                                                                                                
JANEY   HOVENDEN,   DIRECTOR,  DIVISION   OF   CORPORATIONS,                                                                    
BUSINESS   AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY  AND  ECONOMIC  DEVELOPMENT,  responded                                                                    
that  fees would  be  spread  across corporations'  business                                                                    
licensing revenues.                                                                                                             
                                                                                                                                
Representative Wilson asked  how much money was  in the fund                                                                    
that was not  being utilized. Ms. Hovenden did  not have the                                                                    
exact  dollar amount  but  relayed that  any  of the  excess                                                                    
revenues went back into the  general fund. She estimated the                                                                    
dollar amount to be about $6 million.                                                                                           
                                                                                                                                
Co-Chair  Seaton  MOVED to  report  CSHB  124 (FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara,  Grenn, Stutes,  Kawasaki, Ortiz,  Thompson,                                                                    
Seaton, Foster                                                                                                                  
OPPOSED: Tilton, Wilson, Pruitt                                                                                                 
                                                                                                                                
The MOTION to REPORT OUT CSHB 74(FIN) PASSED (8/3).                                                                             
                                                                                                                                
CSHB 74(FIN) was REPORTED OUT  of Committee with a "do pass"                                                                    
recommendation  and  with   a  previously  published  fiscal                                                                    
impact note: FN1(CED).                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB142 Memo of Changes 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB142 Additional Documents-Unemployment Insurance Handbook 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB 142 Additional Documents-WBA charts 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB142 Opposing Documents - Opposition Letters 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB142 Sectional Analysis 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB142 Sponsor Statement 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB142 Supporting Document - Support Letters 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB142 Supporting Document-MWBA Analysis 4.15.17.pdf HFIN 5/9/2017 1:30:00 PM
HB 142
HB 74 Real ID Letter from Commissioner Fisher May 5 2017.pdf HFIN 5/9/2017 1:30:00 PM
HB 74
HB 124 Amendment 2 Foster.pdf HFIN 5/9/2017 1:30:00 PM
HB 124
HB 124 Amendment 1 Foster v.D.1.pdf HFIN 5/9/2017 1:30:00 PM
HB 124
HB 74 Amendments 1 - 4.pdf HFIN 5/9/2017 1:30:00 PM
HB 74
HB 74 _ background_complications of not retaining documents from non-compliant IDS.pdf HFIN 5/9/2017 1:30:00 PM
HB 74
HB 74 Native Am Airport Screening .pdf HFIN 5/9/2017 1:30:00 PM
HB 74
HB74_Oppose_050917.pdf HFIN 5/9/2017 1:30:00 PM
HB 74
HB74_Support_050917.pdf HFIN 5/9/2017 1:30:00 PM
HB 74
HB 74 Amendment NEW NEW 1.PDF HFIN 5/9/2017 1:30:00 PM
HB 74
HB 74 Amendment 5 .PDF HFIN 5/9/2017 1:30:00 PM
HB 74
HB 74 _ background_complications of not retaining documents from non-compliant IDS.pdf HFIN 5/9/2017 1:30:00 PM
HB 74