01/24/1994 09:00 AM Senate FIN

  SB 243:   An  Act  relating to  the  four dam  pool transfer                 
            fund.                                                              
                                                                               
            Senator Robin Taylor and Randy Welker, Legislative                 
            Auditor testified in support of SB  243.  The bill                 
            was HELD in committee for additional review.                       
                                                                               
  SENATE BILL NO. 243:                                                         
                                                                               
       An Act relating to the four dam pool transfer fund.                     
                                                                               
  Co-chair Frank  directed that SB  243 be brought  before the                 
  committee and invited Senator Taylor to speak to the bill.                   
                                                                               
  Senator Taylor  said that SB  243 was  introduced by  Senate                 
  Rules Committee at the request of Legislative Budget & Audit                 
                                                                               
                                                                               
  after it approved  a specific motion reaffirming  the intent                 
  of the  legislature to  appropriate from  the Four  Dam Pool                 
  Transfer  fund  to  the  Southeast Energy  Fund.    He cited                 
  letters from the  Department of Law  and maintained that  if                 
  the legislation  retains current  language, the  needed fund                 
  transfer cannot be accomplished in the current fiscal year.                  
                                                                               
  Senator Sharp voiced his surprise at the overview from DC&RA                 
  showing  a  new  general fund  requirement  for  $525,000 to                 
  administer the electrical division.   Discussion followed by                 
  Senators  Rieger  and Taylor  whether  SB 243  would address                 
  Senator Sharp's concern.                                                     
                                                                               
  Co-chair Frank invited Randy Welker, Legislative Auditor, to                 
  speak to  SB 243.  RANDY WELKER explained that when the Four                 
  Dam   Pool  Transfer  Fund   was  established  the  language                 
  accompanying it  directed sub-accounts  for that  money into                 
  the  three   different  funds  including   the  "subject  to                 
  appropriation" language.   The corresponding  appropriations                 
  were  then written  directly out  of the  sub-funds and  the                 
  appropriation link between  the Transfer  Fund and the  sub-                 
  funds was inadvertently left out.  He  said that SB 243 is a                 
  technical amendment to accomplish the legislature's original                 
  intent and would not cause any inter-fund problems since all                 
  sub-accounts are within the general fund.                                    
                                                                               
  Co-chair  Frank  asked   for  a   flow  chart  prepared   by                 
  Legislative Finance to  be included  in the members'  files.                 
  Senator  Sharp  requested  the  Department  of  Community  &                 
  Regional Affairs to give the committee  an update on the new                 
  energy division.   It was decided  that on January 28,  1994                 
  during the  budget overview,  the energy  division would  be                 
  reviewed.  Senator  Kerttula asked  that Donald Harris  from                 
  McGrath be invited  to come  before committee  and speak  to                 
  these issues.                                                                
                                                                               
  Co-chair Frank  announced  that  SB 243  would  be  HELD  in                 
  committee.