HOUSE BILL NO. 81                                                            
                                                                               
       "An Act relating to the longevity bonus program."                       
                                                                               
  NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION                 
  urged the Committee's support for  the Governors proposal to                 
  grandfather  participants  in at  the  current rate  of $250                 
  dollars with a three year phase down.                                        
                                                                               
  Commissioner Usera referred to the companion bill to HB  81,                 
  CSSB 58 (FIN).  She observed that the Administration has had                 
  the long standing problem of constitutionality in developing                 
  a phase out  program.  She  noted that eligibility based  on                 
  age has  been  questioned  by  the courts.    She  discussed                 
  amendments adopted in CSSB 58 (FIN) which have been endorsed                 
  by the Administration.   She pointed out that CSSB  58 (FIN)                 
  uses the application date as the eligibility criteria.   She                 
  added that a severability clause was  added to CSSB 58 (FIN)                 
  to assure  that if  a portion  of the  bill is  found to  be                 
  unconstitutional other  portions of  the bill  would not  be                 
  overturned.                                                                  
                                                                               
  Co-Chair Larson provided members with Work Draft, 8-GH1022-J                 
  (Attachment  1).  He  explained that the  Work Draft extends                 
  the phase out over a longer period  than CSHB 81 (STA).  Co-                 
  Chair Larson MOVED  to ADOPT Work Draft,  8-GH1022-J.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Co-Chair Larson compared CSHB  81 (FIN) with CSHB 81  (STA).                 
  He reviewed provisions contained in CSHB 81 (STA):                           
                                                                               
                                                                               
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       *    End new enrollment  with those who turn  65 before                 
            January 1, 1994;                                                   
                                                                               
       *    Bonus payments would be set at $225 dollars.                       
                                                                               
  He reviewed provisions of CSHB 81 (FIN):                                     
                                                                               
       *    End new enrollment  with those who turn  65 before                 
            January 1, 1996;                                                   
                                                                               
  Bonus payments would be:                                                     
                                                                               
       *    $225, if  the person reached the age  of 65 before                 
            January 1, 1994;                                                   
                                                                               
       *    $150, if the person  reached the age of  65 before                 
            January 1, 1995;                                                   
                                                                               
       *    $100,  if the person reached  the age of 65 before                 
            January 1, 1996;                                                   
                                                                               
  Co-Chair Larson  compared CSHB 81 (FIN) with  CSSB 58 (FIN).                 
  Co-Chair  Larson MOVED  to AMEND  CSHB 81 (FIN)  by deleting                 
  "person  reached  the  age of  65"  and  inserting "person's                 
  application was submitted"  on page 1, lines 8  - 13.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Commissioner Usera explained that eligibility  will be based                 
  on the date of application not age.  She gave the example of                 
  a 76 year old person who moves to the state and  applies for                 
  the first time after  January 1, 1995 but before  January 1,                 
  1996.  The individual would be  eligible for the same amount                 
  as  other  first  time participants  applying  at  that time                 
  ($100).                                                                      
                                                                               
  Representative Hanley MOVED  to ADOPT page  2, lines 2 -  31                 
  and page 3, lines 1 and 2, the language contained in CSSB 58                 
  (FIN)  with  the  following  amendments  to  that  language:                 
  Delete  "1997"  insert "1996"  on page  2,  lines 6  and 28;                 
  delete "(4)" insert "(3)", page  2, line 7.  There being  NO                 
  OBJECTION, the  amendments were  incorporated  into CSHB  81                 
  (FIN).                                                                       
                                                                               
  Representative  Hanley MOVED to report CSHB  81 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  Representative Hoffman OBJECTED.                 
  A roll call vote was taken on the motion.                                    
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Hanley,  Martin,   Parnell,                 
                 Therriault, MacLean, Larson                                   
  OPPOSED:  Hoffman, Foster                                                    
                                                                               
                                                                               
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  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (8-2).                                                     
                                                                               
  CSHB 81 (FIN) was reported out of Committee with "individual                 
  recommendations"  and  with  a  fiscal  impact note  by  the                 
  Department of Administration  and with a fiscal  impact note                 
  by the Department of Health and Social Services.