02/10/1993 09:10 AM Senate STA

  SENATOR LEMAN  introduced SB  56  (ADMINISTRATION OF  BUDGET                 
  RESERVE FUND) as the next order of business.                                 
                                                                               
  REPRESENTATIVE BROWN outlined the following changes  made in                 
  a  new  draft  committee substitute  (8-LS0453\O)  that  was                 
  before the committee for its consideration:                                  
                                                                               
       1)  An effective date is added to the title.                            
                                                                               
       2)  On page 1, lines 10 and 13, the six months language                 
  that appeared in  prior draft  has been removed  and it  now                 
  reads:    "money received  after  an informal  conference or                 
  after a request  for a formal  hearing has been received  by                 
  the state the  money would be  deemed disputed and would  go                 
  into the Constitutional Budget Reserve."                                     
                                                                               
       3)  On page 2, line 7, a new sentence has been added to                 
  ensure that what is looked at for the purpose of determining                 
  what is  available, the  comparable sources  from the  prior                 
  year are looked as well.                                                     
                                                                               
       4)  On page  2, line 13, the words "federal funds" have                 
  been added and on  page 2, line 14 the words  "or money held                 
  in trust for a particular purpose."  It now reads that money                 
  available  for  appropriation    does  not include  "federal                 
  funds" the earnings reserve, "or money held for a particular                 
  purpose."                                                                    
                                                                               
       5)      On  page   2,  line   20,  the   Department  of                 
  Administration would be  the entity transferring the  money,                 
  rather than the Department of Revenue as in the prior draft.                 
                                                                               
       6)   On page  2, line  24, the  transfer date has  been                 
  changed from November 15 to December 16.                                     
                                                                               
       7)  Sections  2 and  3, which deal  with the  effective                 
  date, are new.                                                               
                                                                               
  Representative   Brown  pointed  out   that  the  Section  2                 
  application section  states that  Section 1  would apply  to                 
  taxes received after  June 30,  together with penalties  and                 
  interest.  However, the legislative  counsel has advised the                 
  legislature cannot in a piece of statute assure that a court                 
  might not reach a different result should this issue ever be                 
  litigated.   She said after  having talked to  other members                 
  about  it  and recognizing  the  situation with  the current                 
  budget  year,  she believes  the  bill will  stand  a better                 
  chance of passage if it contains an application provision.                   
                                                                               
                                                                               
  SENATOR MILLER  moved that  CSSB 56  (STA) referenced as  8-                 
  LS0453\O  be  adopted in  lieu  of the  committee substitute                 
  adopted by the committee on  2/3/93.  Hearing no  objection,                 
  the motion carried.                                                          
                                                                               
  SENATOR RANDY PHILLIPS,  Chairman of the  Legislative Budget                 
  and Audit Committee,  said he  has looked  at the  committee                 
  substitute and that he has no problems with it.                              
                                                                               
  SENATOR TAYLOR stated  that he believes that by passing this                 
  into statute law,  it does  a great deal  more to  establish                 
  what   the  legislature's   original  intent   was  of   the                 
  proposition that was placed before the people.                               
                                                                               
  Number 300                                                                   
                                                                               
  SENATOR LEMAN asked for the will of the committee.                           
                                                                               
  SENATOR MILLER moved  that CSSB  56 (STA) be  passed out  of                 
  committee  with  individual  recommendations.    Hearing  no                 
  objection, it was so ordered.