HOUSE BILL NO. 3 "An Act relating to specie as legal tender in the state; and relating to borough and city sales and use taxes on specie." 1:50:00 PM Co-Chair Johnson MOVED to ADOPT the proposed committee substitute (CS) for HB 3, Work Draft 33-LS0087\S (Nauman, 5/4/23). Co-Chair Foster OBJECTED for discussion. He asked his staff to explain the changes in the CS. BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER, relayed that the CS contained one change from the previous bill version. He directed attention to page 2, line 21. He detailed that the previous version of the bill used the House Finance Committee as the point of origin directing a study to be conducted. The CS changed the reference to the Legislative Budget and Audit (LB&A) Committee per the sponsor's request. He explained it had been suggested that the House Finance Committee may not be the most appropriate committee to direct a study and that LB&A was more suitable. Co-Chair Foster WITHDREW the OBJECTION to the adoption of the CS. There being NO further OBJECTION, it was so ordered. He invited the bill sponsor to make any comments. REPRESENTATIVE KEVIN MCCABE, SPONSOR, appreciated the committee hearing the bill and supported the change in the CS. Representative Hannan asked if Legislative Legal Services had weighed in on the bill provision dictating a committee to take action and whether the legislature had the ability to do so under statute. Additionally, she wondered whether Legislative Legal had specified what would happen if the specific committee did not take action dictated by statute in the bill. Representative McCabe responded that his office had not had any conversation specific to whether the legislature could direct LB&A to [direct a study]. He believed Legislative Legal had drafted the CS and no problem had been indicated; however, he had not specifically asked the question. 1:54:29 PM Representative Hannan MOVED to ADOPT conceptual Amendment 1 to change the word "shall" to "may" on page 2, line 21. She was concerned that without a legal memorandum indicating the action was legal, the House Finance Committee could perhaps be establishing a mandate directing another committee to do something that it did not have authority over. She stated that if the bill passed, the record would indicate there was interest in LB&A doing so and LB&A would take the interest under advisement. She believed the bill sponsor would also work with LB&A to implore the committee to take action. Co-Chair Johnson OBJECTED. Co-Chair Foster asked Representative McCabe for his opinion on the conceptual amendment. Representative McCabe replied that he would not have a problem with changing the language to "may." He was unclear whether the House Finance Committee had received a legal opinion. He shared that the original bill did not have any memo addressing the topic [raised by Representative Hannan]. Co-Chair Edgmon heard the point by Representative Hannan but he highlighted that the word "shall" did not imply they [LB&A] must [take action], in the sense that there was a time frame attached it could be five or ten years later. He thought changing the word from "shall" to "may" in some ways changed the intent of the legislation. He did not support the amendment. Representative Stapp valued the intent of the conceptual amendment, but he thought inserting the word "may" would render the bulk of the bill irrelevant. He elaborated the change would mean there was no action taken tied to any specific timeframe or date regarding legal tender. He believed the result would be a bill with no directive to do anything, which would undermine the concept of the bill. He did not support the amendment. 1:57:53 PM Co-Chair Johnson referenced the statement [made by Representative Hannan] that the House Finance Committee would be giving direction to a committee it may not have jurisdiction over. She pointed out that by the time the bill passed it would be seen and voted on by the entire legislature. She stated that the entire legislature had the ability to direct other committees. Representative Hannan provided wrap up on the conceptual amendment. She stated that the majority of the bill was not about the study. She did not believe in doing things that seemed to be confusing in their intent. Co-Chair Johnson MAINTAINED the OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Galvin, Hannan, Josephson, Ortiz OPPOSED: Stapp, Tomaszewski, Coloumbe, Cronk, Edgmon, Johnson, Foster The MOTION to adopt conceptual Amendment 1 FAILED (4/7). Co-Chair Johnson MOVED to REPORT CSHB 3(FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 3(FIN) was REPORTED out of committee with six "do pass" recommendations, one "no recommendation" recommendation, and two "amend" recommendations and with two previously published zero notes: FN1 (ADM) and FN2 (CED). Representative McCabe thanked the committee. Co-Chair Foster reviewed the schedule for the next meeting.