HB 324 - HOMELAND SECURITY APPROPRIATIONS Number 0070 CHAIR COGHILL announced that the first order of business would be HOUSE BILL NO. 324, "An Act making supplemental and other appropriations for homeland security; and providing for an effective date." CHAIR COGHILL asked if there was any objection to adopting the proposed committee substitute (CS) for HB 324, version 22- GH2078\L, Utermohle, 5/6/02, as a work draft. Number 0188 REPRESENTATIVE HAYES objected so the committee could hear from the department. CHAIR COGHILL noted that this proposed CS was pared down considerably, and it will not be everything that the departments wanted. His intention was that anything beyond that related to the general fund would have to be justified at the Finance Committee, since almost all the general funds are scrutinized there. Number 0266 CAROL CARROLL, Director, Central Office, Administrative Services Division, Department of Military & Veterans Affairs (DMVA), told the committee that the DMVA would work further on this bill with the Finance Committee. Number 0288 REPRESENTATIVE HAYES removed his objection. There being no further objection, Version L was before the committee. Number 0465 NANCY SLAGLE, Director, Division of Administrative Services, Department of Transportation & Public Facilities, told the committee that some of the category 3 items on the 04-19-02 spreadsheet in the packet could cause the state to lose federal dollars, specifically for the airports. She said that some of the items in category 3 are non-general fund dollars. There has been a request to the federal government for reimbursement on the security-related items that are required by FAA [Federal Aviation Administration]. If those requirements are not met, some airports could be shutdown, and that in turn causes the loss of federal dollars if the airports can't be maintained. There is a relationship with the loss of federal dollars if there isn't compliance. Some items are identified as International Airport Revenue Funds, which are not general fund dollars. Several of those will be requested to be identified as federal dollars instead of International Airport Revenue Funds in line with the application to the federal government for special funding of those items. Number 0635 MS. SLAGLE told the committee that items on lines 72 and 73 will be requested as federal dollars. Items 77, 78, 79, 80, and 81 relate to the requirement by FAA that the department do a criminal background check through fingerprinting of all airline operators and any individuals who have access to secured areas of an airport. She noted that has not been done before. It is basically receiving a fee from airline employees, concessionaire employees, or any employees on the airport who need to have access to secure areas, and who must go through the fingerprinting criminal background check. The department has to be in compliance with FAA by December 6, 2002. For those specific items, receipt and expenditure authority is requested so those funds can be received to process the criminal background checks. MS. SLAGLE explained that items 77, 78, and 79 are general fund program receipts. That means the department wants to receive the money. It is possible that those can be identified as receipt-supported services instead of general funds, since the department isn't going to be performing those fingerprint background checks unless it receives the monies. She said she believes that those could be shown as non-general fund. Items 80 and 81 are International Airport Revenue Funds. CHAIR COGHILL said that these areas would be pointed out to the Finance Committee. He reiterated that the proposed CS was pared back so the Finance Committee can put back in the needed items. Number 0958 REPRESENTATIVE HAYES moved to report CSHB 324(STA) out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 324(STA) was reported out of the House State Affairs Standing Committee.