HB 397 - TAXING POWER OF SECOND CLASS CITIES                                 
                                                                               
  CHAIRMAN OLBERG brought forth SSHB 397 and announced that                    
  this  sponsor substitute had been read across the floor on                   
  February 2, 1994, since the last time this bill had been                     
  before the committee.                                                        
                                                                               
  REPRESENTATIVE DAVIES moved that the original bill be                        
  brought before the committee as a committee substitute                       
  because "in the original bill, there is a requirement for a                  
  public vote and I would support the bill if that remained in                 
  there."                                                                      
                                                                               
  CHAIRMAN OLBERG objected.                                                    
                                                                               
  REPRESENTATIVE WILLIS said, "I concur with Representative                    
  Davies' conclusion.  I do support the motion before us...to                  
  allow the people a chance to vote on it.  We're talking                      
  about second class cities.  As the years go by, the                          
  differences between the first and second class cities are                    
  beginning to narrow.  There's very few differences...and I                   
  think one of the strong points for a lot of people that                      
  voted to have municipalities implemented, one of the strong                  
  reasons they vote for it, is the fact they still feel they                   
  have control over the taxation process.  And that is by a                    
  vote of the people."                                                         
                                                                               
  Number 328                                                                   
                                                                               
  The role was taken on Representative Davies' motion to adopt                 
  the original bill as the committee substitute in lieu of the                 
  sponsor substitute.  Representatives Toohey, Davies, Willis                  
  voted yes on the motion.  Representatives Bunde, Sanders,                    
  Williams, Olberg voted no on the motion.  Then                               
  Representative Toohey changed her vote.  The sponsor                         
  substitute remained the bill before the committee.                           
                                                                               
  REPRESENTATIVE DAVIES said, "I would just note that this is                  
  not a requirement under cities right now, but it is a                        
  requirement at this point in time for boroughs...a new sales                 
  tax, use tax or increase in the rate of levy of sales tax                    
  does not take effect unless ratified by the majority of                      
  voters.  So this principle does apply in general to                          
  boroughs, but apparently not in cities."                                     
                                                                               
  REPRESENTATIVE BUNDE moved that the sponsor substitute for                   
  HB 397 be moved from committee with individual                               
  recommendations.                                                             
  REPRESENTATIVE DAVIES objected to the motion.                                
                                                                               
  A role call was taken.  Representatives Williams, Sanders,                   
  Toohey, Bunde and Olberg voted yes.  Representatives Willis                  
  and Davies voted no.  The motion passed.                                     
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 2:19 p.m.