04/15/1998 09:12 AM Senate FIN

                                                                               
 HOUSE BILL NO. 467                                                            
                                                                               
"An Act relating to employees of the legislature who                           
are employed under a personal services contract."                              
                                                                               
                                                                               
BRUCE CAMPBELL, staff to Representative Pete Kelly was                         
invited to join the committee.  He reviewed the bill and                       
sponsor statement.  This regarded legislative contract                         
employees and most state agencies that have the authority to                   
hire temporary employees who do not participate in PERS.                       
This did not include seasonal employees but rather short-                      
term employees who worked on a salary or hourly basis.  He                     
further noted the Administration supported this bill.  The                     
attacked fiscal note indicates it would save the State                         
money.                                                                         
                                                                               
PAM VARNI, Director, Division of Legislative Affairs Agency                    
was invited to join the committee.  In response to Senator                     
Phillips she said the bill would affect the tour guides                        
because they would not be hired in the retirement system.                      
Actually, if they were not working during session or special                   
session they had not been putting them in the retirement                       
system.  She advised the committee that they usually use                       
high school interns not interested in being in the                             
retirement system.                                                             
                                                                               
Senator Phillips asked if they could put current staff under                   
contract as well?  Ms. Varni said if there was someone who                     
did not want to be in the retirement system and the                            
appointing authority wanted to look at doing that it would                     
be a possibility.                                                              
                                                                               
Senator Adams said the title implied that anyone in the                        
Legislature could do this.  He asked if the State would                        
still handle the self-employment tax or would the individual                   
have to make that contribution to the Federal IRS?  Ms.                        
Varni said they did report on the 1099 Form for employees                      
that have a professional service contract.  The individual                     
does need to pay the required taxes.                                           
                                                                               
Senator Torgerson MOVED HB 467 and WITHOUT OBJECTION it was                    
REPORTED OUT with individual recommendations and                               
accompanying fiscal notes from the Department of                               
Administration, Retirement and Benefits, zero and All                          
Legislature (-$4.3).                                                           
                                                                               
                                                                               
ADJOURNMENT                                                                    
                                                                               
After outlining the schedule for tomorrow's agenda, Co-chair                   
Sharp recessed the meeting at approximately 10:25 a.m.                         
SFC-98 -1- 4/15/98