HB 81:  PHASE OUT LONGEVITY BONUS                                            
                                                                               
  Number 419                                                                   
                                                                               
  CHAIRMAN VEZEY introduced a committee substitute (CS) to HB                  
  81, explained a legal analysis of it, then ordered a five                    
  minute recess at 8:26 a.m. so members could look at the                      
  research.                                                                    
                                                                               
  Number 432                                                                   
                                                                               
  CHAIRMAN VEZEY reconvened the meeting at 8:32 a.m., and                      
  explained the motivation behind the analysis.  He stated                     
  concerns that under HB 81, costs would continue to rise for                  
  at least four years, and asked analysts if there was a way                   
  to begin cutting costs earlier.  He then outlined the three                  
  options presented in the research.                                           
                                                                               
  Number 504                                                                   
                                                                               
  CHAIRMAN VEZEY called another five minute at ease so members                 
  could read the presentation.                                                 
                                                                               
  Number 518                                                                   
                                                                               
  CHAIRMAN VEZEY, after calling the committee back to order,                   
  invited Commissioner of Administration, Nancy Bear Usera, to                 
  comment on the proposals.                                                    
                                                                               
  Number 520                                                                   
                                                                               
  NANCY BEAR USERA, COMMISSIONER, DEPARTMENT OF                                
  ADMINISTRATION, urged the committee to reject CSHB 81 in                     
  favor of HB 81.  She stated the governor's proposal was                      
  fair, reasonable, and affordable even in the face of                         
  increasing costs.  She also stated the governor had already                  
  considered proposals similar to CSHB 81, and rejected them.                  
                                                                               
  Number 542                                                                   
                                                                               
  VICE CHAIR KOTT asked if the governor was likely to veto the                 
  alternatives.                                                                
                                                                               
  COMMISSIONER USERA explained the governor was committed to                   
  his version of HB 81, and alternatives were likely to be                     
  vetoed.                                                                      
                                                                               
  Number 553                                                                   
                                                                               
  REPRESENTATIVE ULMER asked if the Administration had legal                   
  opinions that the grandfathering provision based on age                      
  would withstand legal challenges.                                            
                                                                               
  COMMISSIONER USERA assured Representative Ulmer that                         
  opinions had been written, and that the phaseout of any                      
  program was easily defended.  She also stated the governor's                 
  commitment to the grandfathering clause, but noted a                         
  compromise on the amounts to be paid under it was possible.                  
                                                                               
  Number 626                                                                   
                                                                               
  CHAIRMAN VEZEY noted he would add HB 81 to the next                          
  meeting's agenda.                                                            
                                                                               
  Number 628                                                                   
                                                                               
  VICE CHAIR KOTT expressed his concern to move HB 81 quickly.                 
                                                                               
  Number 639                                                                   
                                                                               
  REPRESENTATIVE OLBERG suggested members come prepared to                     
  move HB 81 at the next meeting with a minimum of discussion.                 
                                                                               
  Number 647                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS favored moving a bill that had the                   
  best chance of passing.                                                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Number 655                                                                   
                                                                               
  CHAIRMAN VEZEY noted all the arguments and adjourned the                     
  committee at 8:53 a.m.