Legislature(1993 - 1994)

01/26/1993 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                        January 26, 1993                                       
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Al Vezey, Chair                                               
  Representative Pete Kott, Vice Chair                                         
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  Representative Gary Davis                                                    
  Representative Fran Ulmer                                                    
  Representative Bettye Davis                                                  
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Terry Martin                                                  
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HJR 7:   Proposing amendments to the Constitution of the                    
            State of Alaska authorizing the use of the                         
            initiative to amend the Constitution of the State                  
            of Alaska and amending the requirements relating                   
            to applications for initiatives and referenda.                     
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HJR 15:  Proposing an amendment to the Constitution of the                  
            State of Alaska relating to the duration of a                      
            regular session.                                                   
                                                                               
            SSHJR 15 HELD IN COMMITTEE FOR FURTHER                             
            CONSIDERATION                                                      
                                                                               
  *HJR 5:   Proposing an amendment to the Constitution of the                  
            State of Alaska relating to the duration of a                      
            regular session.                                                   
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HJR 3:   Proposing amendments to the Constitution of the                    
            State of Alaska limiting tenure in the                             
            legislature.                                                       
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HB 17:   "An Act limiting tenure in the legislature."                       
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HJR 4:   Proposing amendments to the Constitution of the                    
            State of Alaska limiting tenure in the                             
            legislature.                                                       
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HJR 6:   Proposing amendments to the Constitution of the                    
            State of Alaska limiting the number of terms a                     
            person may serve in the legislature.                               
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HJR 9:   Proposing an amendment to the Constitution of the                  
            State of Alaska prohibiting the imposition of                      
            state personal income taxation, state ad valorem                   
            taxation on real property, or state retail sales                   
            taxation without the approval of the voters of the                 
            state.                                                             
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  *HB 35:   "An Act relating to deposits to the budget reserve                 
            fund."                                                             
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Representative Joe Sitton                                                    
  State Capitol, Room 609                                                      
  Juneau, AK  99811-1182                                                       
  465-2327                                                                     
  Position Statement: Prime Sponsor of HJR 7                                   
                                                                               
  Representative Pete Kott                                                     
  State Capitol, Room 609, Court                                               
  Juneau, AK  99811-1182                                                       
  465-2327                                                                     
  Position Statement: Prime Sponsor of SSHJR 15                                
                                                                               
  Representative Terry Martin                                                  
  State Capitol, Room 411                                                      
  Juneau, AK  99811-1182                                                       
  465-3783                                                                     
  Position Statement: Prime Sponsor of HJR 3, HB 35, HJR 9 &                   
                      HB 17                                                    
                                                                               
  Representative Jim Nordlund                                                  
  State Capitol, Room 608                                                      
  Juneau, AK  99811-1182                                                       
  465-4968                                                                     
  Position Statement: Prime Sponsor of HJR 4                                   
                                                                               
  Representative Curt Menard                                                   
  State Capitol, Room 405                                                      
  Juneau, Alaska  99811-1182                                                   
  465-2679                                                                     
  Position Statement: Prime Sponsor of HJR 5 & HJR 6                           
                                                                               
  Don Wanis, Director                                                          
  Division of Finance                                                          
  Department of Administration                                                 
  P.O. Box 110204                                                              
  Juneau, AK  99811                                                            
  465-2240                                                                     
  Position Statement: Supported HB 35                                          
                                                                               
  Joe Thomas, State Accountant                                                 
  Division of Finance                                                          
  Department of Administration                                                 
  P.O. Box 110204                                                              
  Juneau, AK  99811                                                            
  465-2240                                                                     
  Position Statement: Supported HB 35                                          
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HJR  7                                                                
  SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION                         
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) SITTON                                         
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska authorizing the use of the initiative to amend the                 
  Constitution of the State of Alaska and amending the                         
  requirements relating to applications for initiatives and                    
  referenda.                                                                   
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        23    (H)   PREFILE RELEASED                                 
  01/11/93        23    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        23    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HJR 15                                                                
  SHORT TITLE: 100 DAY SESSION LIMIT                                           
  BILL VERSION: SSHJR 15                                                       
  SPONSOR(S): REPRESENTATIVE(S) KOTT                                           
  TITLE: Proposing an amendment to the Constitution of the                     
  State of Alaska relating to the duration of a regular                        
  session.                                                                     
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/14/93        58    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/14/93        58    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/20/93       113    (H)   SPONSOR SUBSTITUTE INTRODUCED/                   
                              REFERRALS                                        
  01/20/93       113    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HJR  5                                                                
  SHORT TITLE: 90 DAY SESSION & FEBRUARY CONVENING DATE                        
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MENARD                                         
  TITLE: Proposing an amendment to the Constitution of the                     
  State of Alaska relating to the duration of a regular                        
  session.                                                                     
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        22    (H)   PREFILE RELEASED                                 
  01/11/93        22    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        22    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HJR  3                                                                
  SHORT TITLE: LIMITING TERMS OF LEGISLATORS                                   
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott                                    
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska limiting tenure in the legislature.                                
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        22    (H)   PREFILE RELEASED                                 
  01/11/93        22    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        22    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB  17                                                                
  SHORT TITLE: LIMITING TERMS OF LEGISLATURE                                   
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN                                         
  TITLE: "An Act limiting tenure in the legislature."                          
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        28    (H)   PREFILE RELEASED                                 
  01/11/93        29    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        29    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HJR  4                                                                
  SHORT TITLE: LIMITING TERMS OF LEGISLATORS                                   
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) NORDLUND,Carney                                
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska limiting tenure in the legislature.                                
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        22    (H)   PREFILE RELEASED                                 
  01/11/93        22    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        22    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/22/93       143    (H)   COSPONSOR(S): CARNEY                             
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HJR  6                                                                
  SHORT TITLE: CONST. AM: LIMIT LEGISLATIVE TERMS                              
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MENARD,Brown                                   
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska limiting the number of terms a person may serve in                 
  the legislature.                                                             
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        22    (H)   PREFILE RELEASED                                 
  01/11/93        22    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        22    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HJR  9                                                                
  SHORT TITLE: VOTER APPROVAL FOR NEW TAXES                                    
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN                                         
  TITLE: Proposing an amendment to the Constitution of the                     
  State of Alaska prohibiting the imposition of state personal                 
  income taxation, state ad valorem taxation on real property,                 
  or state retail sales taxation without the approval of the                   
  voters of the state.                                                         
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        23    (H)   PREFILE RELEASED                                 
  01/11/93        23    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        23    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/19/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/21/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/21/93              (H)   MINUTE(STA)                                      
  01/23/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/23/93              (H)   MINUTE(STA)                                      
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  BILL:  HB  35                                                                
  SHORT TITLE: DEPOSITS TO THE BUDGET RESERVE FUND                             
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN,Therriault                              
  TITLE: "An Act relating to deposits to the budget reserve                    
  fund."                                                                       
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        33    (H)   PREFILE RELEASED                                 
  01/11/93        33    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        33    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-6, SIDE A                                                            
  Number 000                                                                   
                                                                               
  The fourth meeting of the House State Affairs Committee was                  
  called to order at 8:00 a.m. on January 26, 1993, by                         
  Chairman Al Vezey.  He noted a quorum was present.                           
  HJR 7:  USE OF INITIATIVE TO AMEND CONSTITUTION                              
                                                                               
  CHAIRMAN AL VEZEY read the title of HJR 7, and invited the                   
  sponsor, Representative Joe Sitton, to testify.                              
                                                                               
  Number 011                                                                   
                                                                               
  REPRESENTATIVE JOE SITTON, PRIME SPONSOR of HJR 7, compared                  
  HJR 7 to HJR 1 and HJR 8.                                                    
                                                                               
  Number 094                                                                   
                                                                               
  CHAIRMAN VEZEY summarized HJR 1 and HJR 8 from prior                         
  committee meetings with regard to majority vote and super                    
  majority.                                                                    
                                                                               
  Number 105                                                                   
                                                                               
  REPRESENTATIVE BETTYE DAVIS requested a subcommittee be                      
  appointed to discuss amendment of the constitution and all                   
  the bills related to this topic.                                             
                                                                               
  Number 108                                                                   
                                                                               
  CHAIRMAN VEZEY stated the differences in the bills were                      
  minor and a subcommittee would not be necessary.                             
                                                                               
  Number 130                                                                   
                                                                               
  REPRESENTATIVE JERRY SANDERS asked about the difference each                 
  bill had with regard to the numbers of voters.                               
                                                                               
  Number 138                                                                   
                                                                               
  REPRESENTATIVE SITTON stated the requirements were tighter                   
  in HJR 7.  A simple majority was too easy and two thirds was                 
  too much.  The 60% in HJR 7 was a middle ground, he                          
  believed.                                                                    
                                                                               
  Number 159                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG discussed a committee                           
  substitute.                                                                  
                                                                               
  Number 169                                                                   
                                                                               
  CHAIRMAN VEZEY stated a committee substitute might be                        
  considered, but was not necessary.                                           
                                                                               
  Number 180                                                                   
                                                                               
  REPRESENTATIVE FRAN ULMER stated any changes by the                          
  committee would be in the form of a committee substitute.                    
                                                                               
  Number 185                                                                   
                                                                               
  CHAIRMAN VEZEY stated amendments may be attached.                            
                                                                               
  Number 192                                                                   
                                                                               
  REPRESENTATIVE SITTON discussed the handouts given to the                    
  committee.  He also thanked the committee for hearing HJR 7,                 
  which was then held in committee for further consideration.                  
  Number 202                                                                   
                                                                               
  SSHJR 15: 100 DAY SESSION LIMIT                                              
                                                                               
  CHAIRMAN VEZEY read the title of SSHJR 15, and invited the                   
  sponsor, Representative Pete Kott, to testify.                               
                                                                               
  Number 211                                                                   
                                                                               
  REPRESENTATIVE PETE KOTT, PRIME SPONSOR of SSHJR 15,                         
  discussed the public's desire to change from 120 session                     
  days to 100.  He spoke on the history of session length, and                 
  stated that twenty six states had shorter sessions than                      
  Alaska.                                                                      
                                                                               
  Number 215                                                                   
                                                                               
  CHAIRMAN VEZEY asked Representative Kott if he thought SSHJR
  15 would pass both legislative bodies and become law.                        
                                                                               
  Number 256                                                                   
                                                                               
  REPRESENTATIVE KOTT definitely thought SSHJR 15 would pass                   
  both bodies or he would not have brought it before the                       
  legislature.                                                                 
  Number 257                                                                   
                                                                               
  HJR 5: 90 DAY SESSION & FEBRUARY CONVENING DATE                              
                                                                               
  CHAIRMAN VEZEY thanked Representative Kott for his                           
  testimony, and asked if there were any comments on HJR 5,                    
  which related to the same subject.                                           
                                                                               
  Number 285                                                                   
                                                                               
  REPRESENTATIVE KOTT discussed the difference between SSHJR
  15, which had a 100 day limit to HJR 5, which had a limit of                 
  90 days.  He noted that in HJR 5 the first day of session                    
  did not count whereas in SSHJR 15 the first day was                          
  included, which closed the difference in time to only nine                   
  days.  The major difference was that in HJR 5 the starting                   
  date was the fourth Monday in February, while the starting                   
  date in SSHJR 15 was the second Monday in January, with the                  
  exception of gubernatorial election years.  On those years                   
  it would be the third Monday in January, he said.                            
                                                                               
  Number 307                                                                   
                                                                               
  CHAIRMAN VEZEY summarized the differences and pointed out                    
  the adjournment date in HJR 5 would be later in May.                         
                                                                               
  Number 331                                                                   
                                                                               
  REPRESENTATIVE KOTT discussed the scheduling and hearing of                  
  bills with a change in the length of session.                                
                                                                               
  Number 345                                                                   
                                                                               
  CHAIRMAN VEZEY asked if there were any more comments or                      
  testimony regarding HJR 5.  There being none, HJR 5 was held                 
  in committee for further consideration.                                      
                                                                               
  HJR 3: LIMITING TERMS OF LEGISLATORS                                         
                                                                               
  CHAIRMAN VEZEY read the title of HJR 3, and invited the                      
  sponsor, Representative Terry Martin, to testify.                            
                                                                               
  Number 363                                                                   
                                                                               
  REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR of HJR 3, spoke                   
  on the intent of term limitation.  He asked the committee to                 
  pass HJR 3 and suggested it would allow term limits to be                    
  tested for a few years.                                                      
                                                                               
  Number 411                                                                   
                                                                               
  CHAIRMAN VEZEY requested information from Representative                     
  Martin regarding the twelve year total of two terms in each                  
  body:  Four years in the House and eight years in the                        
  Senate.                                                                      
                                                                               
  Number 417                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated the decision to limit the                       
  length of terms resulted from a discussion at the National                   
  Conference of State Legislatures (NCSL), and also from talks                 
  with the public.                                                             
                                                                               
  Number 433                                                                   
                                                                               
  CHAIRMAN VEZEY referenced a report in members' packets                       
  regarding term limits by NCSL.  Discussion among committee                   
  members ensued with regard to a lifetime ban from the                        
  legislature after serving.                                                   
                                                                               
  HB 17:  LIMITING TERMS OF LEGISLATURE                                        
                                                                               
  CHAIRMAN VEZEY referenced HB 17 with regard to term limit                    
  and asked if there were any comments.  Hearing none, HJR 3                   
  and HB 17 were held in committee for further consideration.                  
                                                                               
  HJR 4:  LIMITING TERMS OF LEGISLATURE                                        
                                                                               
  CHAIRMAN VEZEY read the title of HJR 4.  He noted HJR 4                      
  would allow for three terms in the House and two in the                      
  Senate.  He invited the sponsor, Representative Jim                          
  Nordlund, to testify.                                                        
                                                                               
  Number 499                                                                   
                                                                               
  REPRESENTATIVE JIM NORDLUND, PRIME SPONSOR of HJR 4, stated                  
  term limits were a campaign issue for him.  He believed                      
  there was a need for more responsive, effective and fair                     
  campaigning, and pointed out that HJR 4 did not limit                        
  consecutive service in that there was no limit of total time                 
  served and no lifetime ban.                                                  
                                                                               
  REPRESENTATIVE NORDLUND stated the incumbent had a benefit                   
  of using public staff, money was easier to raise, and there                  
  was more name recognition.  There was just too much                          
  advantage over the general public, and the public desired a                  
  term limit.  He pointed out fourteen other states had a term                 
  limit.                                                                       
                                                                               
  Number 547                                                                   
                                                                               
  CHAIRMAN VEZEY asked Representative Nordlund how he decided                  
  on the three terms in the House and two in the Senate.                       
                                                                               
  Number 544                                                                   
                                                                               
  REPRESENTATIVE NORDLUND decided the first term was needed to                 
  learn the process, the second to continue what was started                   
  the first term, and a third to be in leadership.  There                      
  needed to be a balance with the experience in the executive                  
  branch to the experience in the legislative branch, he                       
  added.                                                                       
  Number 583                                                                   
                                                                               
  REPRESENTATIVE KOTT explained another difference in HJR 4                    
  compared to HJR 3, that being a legislator could go from the                 
  House to the Senate back to the House and then to the Senate                 
  indefinitely.                                                                
                                                                               
  Number 591                                                                   
                                                                               
  REPRESENTATIVE NORDLUND stated the legislator would still                    
  have to challenge the incumbent.                                             
  HJR 6:  CONST. AM: LIMIT LEGISLATIVE TERMS                                   
                                                                               
  Number 600                                                                   
                                                                               
  REPRESENTATIVE VEZEY thanked Representative Nordlund for his                 
  testimony, and held HJR 3 for further consideration.  On                     
  that same topic, HJR 6 sponsored by Representative Curt                      
  Menard, was reviewed next.                                                   
                                                                               
  Number 607                                                                   
                                                                               
  REPRESENTATIVE CURT MENARD, PRIME SPONSOR of HJR 6,                          
  discussed the support for term limits.  He noted HJR 6                       
  allowed four terms in the House and two in the Senate.                       
                                                                               
  Number 619                                                                   
                                                                               
  CHAIRMAN VEZEY asked Representative Menard where the wording                 
  came from or the reason for two terms in the House and one                   
  term in the Senate along with a lifetime limit.                              
                                                                               
  Number 626                                                                   
                                                                               
  REPRESENTATIVE MENARD stated a two or four year separation                   
  was not as important as the idea itself.  A lifetime ban was                 
  not a requirement either, he added.                                          
                                                                               
  Number 633                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the break in power for the                          
  incumbent.                                                                   
                                                                               
  Number 639                                                                   
                                                                               
  REPRESENTATIVE KOTT asked the difference between HJR 6 and                   
  HJR 3.                                                                       
                                                                               
  Number 644                                                                   
                                                                               
  REPRESENTATIVE MENARD was unfamiliar with HJR 3.                             
                                                                               
  Number 645                                                                   
                                                                               
  REPRESENTATIVE KOTT stated he believed HJR 6 and HJR 3 were                  
  basically the same except for the 12 year break.                             
                                                                               
  Number 651                                                                   
                                                                               
  CHAIRMAN VEZEY, as a point of information to the committee,                  
  stated that SJR 3 had passed the Senate State Affairs                        
  Committee.                                                                   
                                                                               
  TAPE 93-6, SIDE B                                                            
  Number 000                                                                   
  HJR 9:  VOTER APPROVAL FOR NEW TAXES                                         
                                                                               
  CHAIRMAN VEZEY read the title of HJR 9, and asked the                        
  sponsor,  Representative Martin, if he would like to testify                 
  on behalf of the resolution.                                                 
                                                                               
  Number 041                                                                   
                                                                               
  REPRESENTATIVE MARTIN, PRIME SPONSOR of HJR 9, discussed the                 
  history of taxation in this country, including the Boston                    
  Tea Party and King James loosing his head.  Because                          
  government controlled the money, people should have the                      
  power to limit taxation, he said, and noted the public had                   
  supported an increase in tax for specific purposes and would                 
  vote it in when needed.                                                      
                                                                               
  Number 146                                                                   
                                                                               
  REPRESENTATIVE ULMER stated Alaska had the lightest tax per                  
  household.  She discussed an article from Money Magazine                     
  related to taxation of States.                                               
                                                                               
  Number 189                                                                   
                                                                               
  REPRESENTATIVE SANDERS supported a Republic, and trusted the                 
  public more than the legislature because he felt the                         
  legislature had a tendency to lose perspective.  He said he                  
  would vote down any sort of tax.  Yet, if the constituents                   
  wanted a tax they should exercise control by voting through                  
  the initiative process.  He recommended the committee vote                   
  to pass HJR 9.                                                               
                                                                               
  CHAIRMAN VEZEY stated because of the Saturday teleconference                 
  he would hold HJR 9 over for public testimony.  He                           
  encouraged written testimony.                                                
  Number 215                                                                   
                                                                               
  HB 35:  DEPOSITS TO THE BUDGET RESERVE FUND                                  
                                                                               
  The committee then addressed HB 35, related to deposits to                   
  the budget reserve fund.                                                     
                                                                               
  Number 292                                                                   
                                                                               
  REPRESENTATIVE MARTIN, PRIME SPONSOR of HB 35, discussed the                 
  need for protecting the fund and having money for future                     
  generations so they would not be heavily taxed to support                    
  government.                                                                  
                                                                               
  Number 350                                                                   
                                                                               
  CHAIRMAN VEZEY discussed how monies would be paid back and                   
  how the budget reserve fund had been created.                                
                                                                               
  Number 376                                                                   
                                                                               
  REPRESENTATIVE MARTIN discussed revenue shortfalls.                          
                                                                               
  Number 408                                                                   
                                                                               
  CHAIRMAN VEZEY discussed how money was to be deposited into                  
  the fund.                                                                    
                                                                               
  Number 417                                                                   
                                                                               
  REPRESENTATIVE ULMER inquired into the necessity of HB 35.                   
  She thought the Department of Administration was required to                 
  deposit funds.                                                               
                                                                               
  Number 426                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated there was no statute that                       
  required funds to be deposited.                                              
                                                                               
  Number 432                                                                   
                                                                               
  REPRESENTATIVE ULMER discussed deposits to the fund.                         
                                                                               
  Number 441                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated the legislature was to                          
  establish procedures through the law yet had not done so.                    
                                                                               
  CHAIRMAN VEZEY stated HB 35 would fulfill the legislative                    
  requirement.  He asked a question regarding monies for the                   
  fund.                                                                        
                                                                               
  Number 457                                                                   
                                                                               
  REPRESENTATIVE MARTIN spoke about the constitutional                         
  provision.  He stated the monies borrowed had to be returned                 
  by December 16th.                                                            
                                                                               
  REPRESENTATIVE SANDERS asked if the budget reserve fund was                  
  like a revolving loan fund.                                                  
                                                                               
  Number 479                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated the budget reserve fund was                     
  like a revolving loan fund that would have to be paid back                   
  each following year.  In reality it was a spending account,                  
  not a saving account, he added.                                              
                                                                               
  Number 487                                                                   
                                                                               
  REPRESENTATIVE SANDERS discussed with Representative Martin                  
  the fact that the budget reserve fund drew interest.                         
                                                                               
  Number 493                                                                   
                                                                               
  REPRESENTATIVE BETTYE DAVIS asked if any monies had been                     
  drawn from the fund.                                                         
                                                                               
  Number 495                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated at this time no monies from the                 
  budget reserve fund had been touched.                                        
                                                                               
  Number 504                                                                   
                                                                               
  REPRESENTATIVE KOTT inquired into the current balance of the                 
  fund.                                                                        
                                                                               
  Number 506                                                                   
                                                                               
  REPRESENTATIVE MARTIN advised that currently there was                       
  $625,000,000 in the budget reserve fund.                                     
                                                                               
  Number 522                                                                   
                                                                               
  DON WANIS, DIRECTOR, DIVISION OF FINANCE, DEPARTMENT OF                      
  ADMINISTRATION (the Department), and JOE THOMAS, State                       
  Accountant for the Division, discussed the December 16 date                  
  for depositing funds.  They suggested November 1 would be                    
  too soon because the balance would not be available to the                   
  general fund by that date.                                                   
                                                                               
  CHAIRMAN VEZEY discussed the deposit being made on                           
  December 16.                                                                 
                                                                               
  Number 540                                                                   
                                                                               
  MR. WANIS stated a report would be available to the public                   
  on the first week of December regarding the monies in the                    
  account.                                                                     
                                                                               
  REPRESENTATIVE ULMER asked how the Department would proceed                  
  without HB 35.                                                               
                                                                               
  MR. THOMAS stated there were constitutional regulations to                   
  take monies out, but there needed to be statutory authority                  
  to put monies back into the account.                                         
                                                                               
  Number 564                                                                   
                                                                               
  REPRESENTATIVE ULMER discussed accounting procedures.                        
                                                                               
  MR. THOMAS discussed accounting procedures.                                  
                                                                               
  CHAIRMAN VEZEY clarified the Department advocated passage of                 
  HB 35 to make execution of accounting duties clear.                          
                                                                               
  Number 603                                                                   
                                                                               
  MR. WANIS stated the Department supported passage of HB 35.                  
                                                                               
  Number 608                                                                   
                                                                               
  REPRESENTATIVE SANDERS restated authority was in place to                    
  take funds out of the account but there was no authority to                  
  repay it.  He stated the Department was advocating this way                  
  to put monies back in the fund.                                              
                                                                               
  Number 615                                                                   
                                                                               
  MR. WANIS concurred.                                                         
                                                                               
  Number 616                                                                   
                                                                               
  CHAIRMAN VEZEY summarized the testimony, asked Mr. Wanis                     
  again if HB 35 was necessary to put monies back into the                     
  account.                                                                     
                                                                               
  Number 625                                                                   
                                                                               
  MR. WANIS replied in the affirmative.  He added that                         
  authority was needed in the law in some fashion.                             
                                                                               
  Number 626                                                                   
                                                                               
  CHAIRMAN VEZEY discussed monies to be placed into the                        
  account.                                                                     
                                                                               
  Number 633                                                                   
                                                                               
  MR. WANIS asked if the balance in the general fund was                       
  available and monies were owed to the reserve account, would                 
  only monies that were available be used to pay the account                   
  back.                                                                        
                                                                               
  Number 641                                                                   
                                                                               
  CHAIRMAN VEZEY clarified the debt would continue forward and                 
  that only surplus monies would be available to replenish the                 
  account.                                                                     
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  With no further comments on HB 35, Chairman Vezey Adjourned                  
  the meeting at 9:35 a.m.                                                     

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