04/09/2008 10:24 AM Senate FIN

CS FOR HOUSE BILL NO. 419(FIN)                                                                                                
                                                                                                                                
     "An Act relating to state lease-purchases of equipment                                                                     
     and other personal property; and providing for an                                                                          
     effective date."                                                                                                           
                                                                                                                                
Senator  Huggins MOVED  to ADOPT SCS  CSHB 419(FIN),  labeled                                                                   
25-LS1567\V, Cook,  4/9/08, as  the working draft  before the                                                                   
Committee.  Co-Chair Stedman OBJECTED.                                                                                          
                                                                                                                                
TOM WRIGHT,  STAFF, REPRESENTATIVE  MIKE CHENAULT,  explained                                                                   
that the new CS mirrors the bill  that passed from the House.                                                                   
Section 1  clarifies that  lease-purchase agreements  must be                                                                   
for real  property.  Section  2 deals with lease-purchase  of                                                                   
personal  property.   It allows  all agencies  to enter  into                                                                   
lease-purchase  agreements.  If  the agreement is  worth over                                                                   
$100,000 notice must be given.                                                                                                  
                                                                                                                                
Mr. Wright related that Section  3 says that by January 15 of                                                                   
each year  each agency, through  OMB, has to submit  a report                                                                   
of every lease-purchase agreement.                                                                                              
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.   There being  NO                                                                   
OBJECTION, SCS CSHB 419 (FIN) was adopted.                                                                                      
                                                                                                                                
Co-Chair   Stedman  commented   on   a   concern  about   the                                                                   
restrictiveness  of the  bill.   As a  compromise, the  House                                                                   
version of the  bill was adopted.  There will  be an on-going                                                                   
opportunity to  review the outcome  of the bill and  a chance                                                                   
to tighten it up if necessary.                                                                                                  
                                                                                                                                
Senator Huggins asked if the sponsor  supports the bill as it                                                                   
is.  Mr.  Wright said he did.   He further explained  the cap                                                                   
option, which  was not incorporated  in the bill.   The issue                                                                   
will be revisited as needed.                                                                                                    
                                                                                                                                
6:54:38 PM                                                                                                                    
                                                                                                                                
Senator  Thomas  MOVED to  REPORT  SCS  CS HB  419(FIN)  from                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SCS  CSHB 419(FIN)  was REPORTED  out of  Committee with  "no                                                                   
recommendation"  and with zero  fiscal note  #1 by  the House                                                                   
Finance Committee  for the  Department of Administration  and                                                                   
zero fiscal  note #2 by the  House Finance Committee  for the                                                                   
Office of the Governor.                                                                                                         
                                                                                                                                
AT-EASE:       6:55:22 PM                                                                                                     
                                                                                                                                
RECONVENED:    6:56:38 PM