04/21/1994 10:00 AM Senate FIN

  SB 377:             An Act relating  to state agency  fiscal                 
                      procedures;   and   providing   for   an                 
                      effective date.                                          
                                                                               
                      Amendment 1, 3,  4, and 5  were ADOPTED.                 
                      John  Bitney,  aide   to  Representative                 
                      Larson, spoke to amendment 2.  Amendment                 
                      2 was HELD.  CSSB 377(FIN)  was REPORTED                 
                      out  of committee  with a  "do pass,"  a                 
                      zero fiscal note  for the Department  of                 
                      Revenue, and  a revenue fiscal  note for                 
                      the  Department   of  Administration   -                 
                      Statewide for $(147.7).                                  
                                                                               
  SENATE BILL NO. 377:                                                         
                                                                               
                                                                               
       An Act relating to state  agency fiscal procedures; and                 
       providing for an effective date.                                        
                                                                               
  Co-chair  Pearce  announced  that  SB  377  was  before  the                 
  committee.  She said there were five suggested amendments.                   
                                                                               
  Co-chair  Frank  MOVED   amendment  1  regarding   prorating                 
  language consistent with  language in last year's  fee bill.                 
  No objection being heard, it was ADOPTED.                                    
                                                                               
  JOHN  BITNEY,  aide  to  Representative  Larson,  said  that                 
  amendment 2 would delete provisions  within the statute that                 
  were currently being used to fund the catastrophic insurance                 
  functions of the state.   He understood that currently  what                 
  the state did was  use lapsing general fund balances  at the                 
  end of each fiscal  year to fund the  catastrophic insurance                 
  account.  This  language was  drafted with the  help of  the                 
  Office of Management & Budget.   This year the House Finance                 
  Committee budgeted  it from the Constitutional  Reserve Fund                 
  rather  than from  lapsing balances.   He  pointed out  that                 
  section did fall  out of the front section when it failed to                 
  get a three-quarters  vote on  the house floor.   The  House                 
  Finance Committee felt  that these types of  provisions that                 
  the administration had been using  to sweep lapsing balances                 
  should  be  deleted  in order  to  apply  that lapsed  money                 
  towards the deficit situation.                                               
                                                                               
  Co-chair  Pearce said amendment 2  would be HELD until Legal                 
  Services could be questioned.                                                
                                                                               
  Mr. Bitney said that amendment 3 was another provision where                 
  House  Finance  Committee  was  looking  to  delete sections                 
  within  the   Executive  Budget  Act  that   authorized  the                 
  Department  of  Administration  to   sweep  lapsing  balance                 
  accounts at  the end of  the FY.   They  would prefer  these                 
  funds lapse back into the general fund each year.                            
                                                                               
  Co-chair  Frank   MOVED  amendment  3.     Senator  Kerttula                 
  OBJECTED.    Senator Kerttula  WITHDREW  his objection.   No                 
  further objection being heard, amendment 3 was ADOPTED.                      
                                                                               
  Co-chair  Pearce  announced  amendment  4   was  before  the                 
  committee.  Mr. Bitney said the intention of amendment 4 was                 
  that when the Governor submitted his initial budget proposal                 
  to  the  legislature,  under the  repayment  section,  if an                 
  appropriation  had  been   made  as   part  of  his   budget                 
  recommendation  to  the  legislature,  the  Governor   shall                 
  propose the amounts that were available and what the payback                 
  provisions should be.                                                        
                                                                               
  Co-chair Frank MOVED amendment 4.  No objection being heard,                 
  amendment 4 was ADOPTED.                                                     
                                                                               
  Co-chair  Pearce said that  amendment 5 was  proposed by the                 
                                                                               
                                                                               
  Department of Health  & Social Services  in relation to  the                 
  Infant Learning Program.  Co-chair  Frank MOVED amendment 5.                 
  No objection being heard, amendment 5 was ADOPTED.                           
                                                                               
  Co-chair Pearce  announced that SB  377 as amended  would be                 
  HELD until Legislative Legal Services spoke to amendment 2.                  
                                                                               
  At this  time, the  committee returned  to SB  365 (see  the                 
  section of meetings pertaining to SB 365).                                   
                                                                               
  Co-chair Pearce  announced that  Legislative Legal  Services                 
  had recommended that amendment 2 be withdrawn.                               
                                                                               
  Co-chair Frank MOVED  for the passage  of SB 377 as  amended                 
  from   committee  with   individual  recommendations.     No                 
  objection being  heard, CSSB  377(FIN) was  REPORTED out  of                 
  committee with  a  "do  pass,"  zero fiscal  notes  for  the                 
  Department of Revenue, and the Department of Administration-                 
  Statewide also  showing a  revenue of  $(147.7).   Co-chairs                 
  Pearce and Frank,  Senators Rieger,  Jacko, Kelly and  Sharp                 
  signed "do pass," and Senator Kerttula signed "do not pass."                 
                                                                               
  At this time the  committee returned to SB 376  (see portion                 
  of minutes pertaining to SB 376).