Legislature(2015 - 2016)HOUSE FINANCE 519

11/04/2015 09:00 AM House FINANCE

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Audio Topic
09:00:58 AM Start
09:01:41 AM SB3001
09:08:29 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB3001 APPROP: LNG PROJECT & FUND/AGDC/SUPP. TELECONFERENCED
Moved CSSB 3001(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                   THIRD SPECIAL SESSION                                                                                        
                     November 4, 2015                                                                                           
                         9:00 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:00:58 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Neuman called the House Finance Committee meeting                                                                      
to order at 9:00 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mark Neuman, Co-Chair                                                                                            
Representative Steve Thompson, Co-Chair                                                                                         
Representative Dan Saddler, Vice-Chair                                                                                          
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative Lynn Gattis                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Lance Pruitt                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 3001(FIN)                                                                                                                  
          APPROP: LNG PROJECT & FUND/AGDC/SUPP.                                                                                 
                                                                                                                                
          CSSB 3001(FIN) was REPORTED out of committee with                                                                     
          a "do pass" recommendation.                                                                                           
                                                                                                                                
Co-Chair Neuman reviewed the agenda for the meeting. He                                                                         
indicated amendments would be taken and it was his                                                                              
intention to move the bill out of committee.                                                                                    
                                                                                                                                
9:01:41 AM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 3001(FIN)                                                                                              
                                                                                                                                
     "An Act making supplemental appropriations; making                                                                         
     appropriations to capitalize funds; and providing for                                                                      
     an effective date."                                                                                                        
                                                                                                                                
Representative Kawasaki MOVED to ADOPT Amendment 1                                                                              
29/GS3812\L3 (Wallace/Martin, 11/3/15) (copy on file):                                                                          
                                                                                                                                
     Page 2, line 3:                                                                                                            
          Delete "only"                                                                                                         
          Following "ending":                                                                                                   
          Insert "(1)"                                                                                                          
          Following "2016":                                                                                                     
          Insert "; or                                                                                                          
          (2) June  30, 2017,  if the work  is substantially                                                                    
          completed during  the fiscal year ending  June 30,                                                                    
          2016,  and  the  money  is  obligated  during  the                                                                    
          fiscal year ending June 30, 2016"                                                                                     
                                                                                                                                
     Page 2, line 1l:                                                                                                           
          Delete "only"                                                                                                         
                                                                                                                                
     Page 2, line 12:                                                                                                           
          Following "ending":                                                                                                   
          Insert "(1)"                                                                                                          
          Following "2016":                                                                                                     
          Insert "; or                                                                                                          
          (2) June  30, 2017,  if the work  is substantially                                                                    
          completed during  the fiscal year ending  June 30.                                                                    
          2016,  and  the  money  is  obligated  during  the                                                                    
          fiscal year ending June 30, 2016"                                                                                     
                                                                                                                                
     Page 2, line 19:                                                                                                           
          Delete "only"                                                                                                         
          Following "ending":                                                                                                   
          Insert "(1)"                                                                                                          
                                                                                                                                
     Page 2, line 20:                                                                                                           
          Following "2016":                                                                                                     
          Insert "; or                                                                                                          
          (2) June  30, 2017,  if the work  is substantially                                                                    
          completed during  the fiscal year ending  June 30,                                                                    
          2016,  and  the  money  is  obligated  during  the                                                                    
          fiscal year ending June 30, 2016"                                                                                     
                                                                                                                                
Co-Chair Neuman OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Kawasaki  addressed Amendment 1.  He believed                                                                    
requiring  work to  be completed  at the  end of  the fiscal                                                                    
year ending June  30, 2016 provided a  very strict timeline.                                                                    
He referred  to prior  testimony from David  Teal [Director,                                                                    
Legislative Finance  Division] who had relayed  the language                                                                    
was not typical for  an appropriations bill. Subsequently he                                                                    
had listened  to testimony in  the Senate  Finance Committee                                                                    
where it had been conveyed  that the work could be completed                                                                    
by the  specific date  and come back  to the  legislature at                                                                    
the appropriate time. He believed  there were currently "too                                                                    
many  cooks in  the kitchen"  and that  the legislature  was                                                                    
trying  to   micromanage  the  agencies.  However,   he  was                                                                    
comfortable with  the legislation if the  agencies felt they                                                                    
could handle the timeline.                                                                                                      
                                                                                                                                
Representative   Gara  understood   that   there  had   been                                                                    
discussions with  the Senate Finance Committee  and that the                                                                    
passage  of  the  amendment  would  result  in  an  extended                                                                    
special session. He did not believe  it was smart to tell an                                                                    
agency it had  to spend all of  its money by the  end of the                                                                    
year.  He reasoned  that an  agency would  spend all  of its                                                                    
money  by the  end of  the year  in an  inefficient way.  He                                                                    
believed  it was  wiser to  direct  an agency  to spend  its                                                                    
money on  a schedule that  was more efficient. He  hoped the                                                                    
practice would not continue  during the upcoming legislative                                                                    
session.  He  did  not believe  the  strategy  was  fiscally                                                                    
prudent.                                                                                                                        
                                                                                                                                
9:04:07 AM                                                                                                                    
                                                                                                                                
Co-Chair  Neuman stated  that the  governor's original  bill                                                                    
did not  ask for an extended  lapse date. He did  not recall                                                                    
ever seeing a time "where  we've extended it out past that."                                                                    
He  stated that  the  legislature would  address  the FY  17                                                                    
budget  during  the upcoming  session.  He  believed it  was                                                                    
appropriate to address FY 17 requests at that time.                                                                             
                                                                                                                                
Representative  Wilson  agreed.   She  elaborated  that  the                                                                    
legislature  was  "going  in   through  our  regular  budget                                                                    
process."  She stated  that if  agencies  needed more  money                                                                    
going into the new year  there would be the opportunity. She                                                                    
added that the  bill would extend the time  until the budget                                                                    
process was  complete. She did  not necessarily  believe the                                                                    
department  would spend  the money  just because  a deadline                                                                    
was  imposed.  She  elaborated that  the  legislature  would                                                                    
monitor the issue.  She appreciated that the  money would be                                                                    
coded in  a way that  would enable the legislature  to track                                                                    
where it was. She wished  the same practice was utilized for                                                                    
more of the departments.                                                                                                        
                                                                                                                                
Co-Chair  Neuman clarified  that there  would be  a tracking                                                                    
code  associated with  the expenditures  in order  to ensure                                                                    
the legislature knew where the money went.                                                                                      
                                                                                                                                
Representative  Gattis  agreed   that  there  were  tracking                                                                    
methods. She stated  that in any other time she  may tend to                                                                    
agree  with   the  amendment;   however,  there   were  many                                                                    
unanswered questions.  She believed the timing  was poor for                                                                    
the  amendment.  She opined  that  it  was prudent  to  move                                                                    
forward, track the dollars, and  answer the questions as the                                                                    
process moved forward.                                                                                                          
                                                                                                                                
Representative Guttenberg believed  Amendment 1 was relevant                                                                    
in terms of the  dialogue throughout the legislature related                                                                    
to  government  not knowing  how  to  do business  like  the                                                                    
private  sector. He  stressed  that  government would  never                                                                    
succeed at  mimicking the private  sector. He  reasoned that                                                                    
government  could do  a comparable  job (and  had) in  other                                                                    
places, but  he did not  believe the committee  was starting                                                                    
off  on the  right track  with the  current bill.  He stated                                                                    
that when  significant people had  asked how  the government                                                                    
funded,  the answer  had been  "by phases."  He stated  that                                                                    
money had to be  spent to get to the next  point and at that                                                                    
point  the   situation  was   evaluated.  He   believed  the                                                                    
amendment introduced  the dialogue  about what was  the best                                                                    
way  to act  like a  government  in a  partnership with  the                                                                    
private   sector.  He   believed  the   dialogue  was   very                                                                    
important. He  opined that how  the state thought  about the                                                                    
issue needed to be changed.                                                                                                     
                                                                                                                                
9:07:39 AM                                                                                                                    
                                                                                                                                
Representative Kawasaki WITHDREW Amendment 1.                                                                                   
                                                                                                                                
Co-Chair  Thompson MOVED  to report  CSSB  3001(FIN) out  of                                                                    
Committee  with individual  recommendations. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSSB 3001  was REPORTED  out of committee  with a  "do pass"                                                                    
recommendation.                                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:08:29 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:08 a.m.                                                                                          

Document Name Date/Time Subjects
SB 3001 HFIN Kawasaki Amd #1 SB3001.pdf HFIN 11/4/2015 9:00:00 AM
SB3001