04/04/2016 09:00 AM Senate FINANCE

SENATE BILL NO. 170                                                                                                           
                                                                                                                                
     "An   Act  authorizing   the   Department  of   Natural                                                                    
     Resources,  division  of   geological  and  geophysical                                                                    
     surveys,  to collect  fees  for facilities,  equipment,                                                                    
     products,  and  services;  relating to  accounting  for                                                                    
     certain   program  receipts;   and  providing   for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:34:16 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  shared that the public  hearing had been                                                                    
held  and closed  on  March  17, 2016.  She  asked the  bill                                                                    
sponsor's staff to put his name on the record.                                                                                  
                                                                                                                                
AKIS  GIALOPSOS, STAFF,  SENATOR  CATHY GIESSEL,  introduced                                                                    
himself.                                                                                                                        
                                                                                                                                
Vice-Chair  Micciche  discussed  the fiscal  note  from  the                                                                    
Department of Natural Resources.  He relayed there were zero                                                                    
operating costs from FY 17  through FY 22. He highlighted an                                                                    
increase in  revenues of  $85,000 in FY  17, $200,000  in FY                                                                    
18, $275,000  in FY 19,  $350,000 in  FY 20, $425,000  in FY                                                                    
21, and $485,000 in FY 22.                                                                                                      
                                                                                                                                
9:36:02 AM                                                                                                                    
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9:36:18 AM                                                                                                                    
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Co-Chair  MacKinnon   referred  to   a  document   from  the                                                                    
Legislative Finance Division dated  March 14, 2016 (copy not                                                                    
on file).                                                                                                                       
                                                                                                                                
Vice-Chair Micciche  explained the document  specified there                                                                    
were  no   technical  issues  with   the  fiscal   note.  He                                                                    
elaborated that  an earlier version  of the fiscal  note had                                                                    
omitted the  change in revenues,  which had  been corrected.                                                                    
He  detailed that  under the  scenario  contemplated in  the                                                                    
fiscal  note,  fee  revenues  would   not  be  utilized  for                                                                    
division operations.  Instead, the fee revenues  would go to                                                                    
the  General Fund  until program  receipts reached  $400,000                                                                    
annually.  He  continued  that at  that  time  the  Geologic                                                                    
Materials Center would join the  Public Building Fund, which                                                                    
was  projected to  occur in  FY 21.  Capital costs  would be                                                                    
reduced  for  operations of  the  center;  until that  time,                                                                    
program  receipts could  replace undesignated  general funds                                                                    
(UGF) in the operating budget.                                                                                                  
                                                                                                                                
Co-Chair  MacKinnon  clarified  that   the  funds  would  be                                                                    
diverted to the General Fund  and would join another area of                                                                    
state   agencies  for   operation   replacement  value   and                                                                    
maintenance.                                                                                                                    
                                                                                                                                
Co-Chair  Kelly  MOVED  to  report   CSSB  170(RES)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 170(RES) was REPORTED out of committee with a "do                                                                          
pass" recommendation and with one new fiscal impact note                                                                        
from the Department of Natural Resources.                                                                                       
                                                                                                                                
9:38:02 AM                                                                                                                    
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9:40:30 AM                                                                                                                    
RECONVENED