05/05/2023 09:30 AM House FINANCE

HOUSE BILL NO. 3                                                                                                              
                                                                                                                                
     "An Act relating to specie as legal tender in the                                                                          
     state; and relating to borough and city sales and use                                                                      
     taxes on specie."                                                                                                          
                                                                                                                                
1:50:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Johnson  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute (CS)  for HB 3,  Work Draft  33-LS0087\S (Nauman,                                                                    
5/4/23).                                                                                                                        
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.  He asked his staff                                                                    
to explain the changes in the CS.                                                                                               
                                                                                                                                
BRODIE ANDERSON, STAFF,  REPRESENTATIVE NEAL FOSTER, relayed                                                                    
that  the CS  contained one  change from  the previous  bill                                                                    
version.  He  directed attention  to  page  2, line  21.  He                                                                    
detailed  that the  previous version  of the  bill used  the                                                                    
House Finance Committee  as the point of  origin directing a                                                                    
study to be  conducted. The CS changed the  reference to the                                                                    
Legislative  Budget  and  Audit  (LB&A)  Committee  per  the                                                                    
sponsor's request.  He explained it had  been suggested that                                                                    
the House Finance Committee may  not be the most appropriate                                                                    
committee  to  direct  a  study   and  that  LB&A  was  more                                                                    
suitable.                                                                                                                       
                                                                                                                                
Co-Chair Foster  WITHDREW the OBJECTION  to the  adoption of                                                                    
the  CS.  There  being  NO  further  OBJECTION,  it  was  so                                                                    
ordered. He invited the bill sponsor to make any comments.                                                                      
                                                                                                                                
REPRESENTATIVE  KEVIN   MCCABE,  SPONSOR,   appreciated  the                                                                    
committee hearing the  bill and supported the  change in the                                                                    
CS.                                                                                                                             
                                                                                                                                
Representative  Hannan asked  if Legislative  Legal Services                                                                    
had weighed in  on the bill provision  dictating a committee                                                                    
to take action  and whether the legislature  had the ability                                                                    
to do  so under statute. Additionally,  she wondered whether                                                                    
Legislative  Legal had  specified what  would happen  if the                                                                    
specific committee  did not take action  dictated by statute                                                                    
in the bill.                                                                                                                    
                                                                                                                                
Representative McCabe responded that  his office had not had                                                                    
any conversation  specific to whether the  legislature could                                                                    
direct  LB&A to  [direct a  study]. He  believed Legislative                                                                    
Legal had drafted the CS  and no problem had been indicated;                                                                    
however, he had not specifically asked the question.                                                                            
                                                                                                                                
1:54:29 PM                                                                                                                    
                                                                                                                                
Representative Hannan MOVED to  ADOPT conceptual Amendment 1                                                                    
to change the word "shall" to  "may" on page 2, line 21. She                                                                    
was  concerned that  without a  legal memorandum  indicating                                                                    
the  action was  legal,  the House  Finance Committee  could                                                                    
perhaps   be  establishing   a  mandate   directing  another                                                                    
committee to  do something  that it  did not  have authority                                                                    
over. She stated  that if the bill passed,  the record would                                                                    
indicate there was interest in  LB&A doing so and LB&A would                                                                    
take the  interest under advisement.  She believed  the bill                                                                    
sponsor would also  work with LB&A to  implore the committee                                                                    
to take action.                                                                                                                 
                                                                                                                                
Co-Chair Johnson OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair Foster asked Representative  McCabe for his opinion                                                                    
on the conceptual amendment.                                                                                                    
                                                                                                                                
Representative  McCabe  replied that  he  would  not have  a                                                                    
problem with changing the language  to "may." He was unclear                                                                    
whether  the House  Finance Committee  had received  a legal                                                                    
opinion. He shared  that the original bill did  not have any                                                                    
memo   addressing  the   topic  [raised   by  Representative                                                                    
Hannan].                                                                                                                        
                                                                                                                                
Co-Chair  Edgmon heard  the point  by Representative  Hannan                                                                    
but he highlighted that the  word "shall" did not imply they                                                                    
[LB&A] must  [take action],  in the sense  that there  was a                                                                    
time frame attached it could be  five or ten years later. He                                                                    
thought  changing the  word from  "shall" to  "may" in  some                                                                    
ways  changed the  intent  of the  legislation.  He did  not                                                                    
support the amendment.                                                                                                          
                                                                                                                                
Representative  Stapp valued  the intent  of the  conceptual                                                                    
amendment,  but he  thought inserting  the word  "may" would                                                                    
render the  bulk of the  bill irrelevant. He  elaborated the                                                                    
change  would mean  there was  no action  taken tied  to any                                                                    
specific  timeframe  or  date  regarding  legal  tender.  He                                                                    
believed the result would be a  bill with no directive to do                                                                    
anything, which would undermine the  concept of the bill. He                                                                    
did not support the amendment.                                                                                                  
                                                                                                                                
1:57:53 PM                                                                                                                    
                                                                                                                                
Co-Chair   Johnson  referenced   the   statement  [made   by                                                                    
Representative  Hannan]  that  the House  Finance  Committee                                                                    
would be  giving direction  to a committee  it may  not have                                                                    
jurisdiction  over. She  pointed out  that by  the time  the                                                                    
bill passed  it would  be seen  and voted  on by  the entire                                                                    
legislature. She stated that the  entire legislature had the                                                                    
ability to direct other committees.                                                                                             
                                                                                                                                
Representative  Hannan provided  wrap up  on the  conceptual                                                                    
amendment. She stated that the  majority of the bill was not                                                                    
about the  study. She did  not believe in doing  things that                                                                    
seemed to be confusing in their intent.                                                                                         
                                                                                                                                
Co-Chair Johnson MAINTAINED the OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Galvin, Hannan, Josephson, Ortiz                                                                                      
OPPOSED:  Stapp,   Tomaszewski,  Coloumbe,   Cronk,  Edgmon,                                                                    
Johnson, Foster                                                                                                                 
                                                                                                                                
The MOTION to adopt conceptual Amendment 1 FAILED (4/7).                                                                        
                                                                                                                                
Co-Chair  Johnson  MOVED  to   REPORT  CSHB  3(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB  3(FIN) was  REPORTED  out of  committee  with six  "do                                                                    
pass"     recommendations,    one     "no    recommendation"                                                                    
recommendation,  and two  "amend"  recommendations and  with                                                                    
two  previously  published zero  notes:  FN1  (ADM) and  FN2                                                                    
(CED).                                                                                                                          
                                                                                                                                
Representative McCabe thanked the committee.                                                                                    
                                                                                                                                
Co-Chair Foster reviewed the schedule for the next meeting.