HB 177-STATE EMPLOYEE RETIREMENT CONTRIBUTIONS                                                                                
                                                                                                                                
10:00:14 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that the  last order of business was HOUSE                                                               
BILL  NO.  177,  "An  Act   relating  to  employee  and  employer                                                               
contributions to  the teachers' retirement system  and the public                                                               
employees'  retirement system;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
CHAIR  SEATON said  the bill  looks at  the distribution  of past                                                               
service costs between employers and  employees.  He said he knows                                                               
the  full  committee is  not  in  agreement  over the  bill,  but                                                               
nevertheless would  like to see  the committee move the  bill out                                                               
of the House  State Affairs Standing Committee and  let the House                                                               
Finance Committee work on it.                                                                                                   
                                                                                                                                
CHAIR  SEATON [moved  to report  HB  177] out  of committee  with                                                               
individual recommendations and the accompanying fiscal notes.                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG objected.   He explained, "I don't think                                                               
we're ready to move these pension bills yet."                                                                                   
                                                                                                                                
CHAIR SEATON  said the  committee would have  the "full  range of                                                               
pension elements" before  it.  He said there  are questions about                                                               
the constitutionality  of HB  177 and  he would  like to  see the                                                               
House  Finance Committee  work on  the bill.   In  response to  a                                                               
suggestion by  Representative Gruenberg  that the bill  should be                                                               
heard  by  the  House  Judiciary Standing  Committee  if  it  has                                                               
questionable  legality,  he  said that  committee's  chair  could                                                               
request to hear the bill.                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he  would remove his  objection to                                                               
moving the  bill if  the committee clearly  states that  it wants                                                               
the bill  heard by the  House Judiciary Standing  Committee prior                                                               
to its being heard by the House Finance Committee.                                                                              
                                                                                                                                
REPRESENTATIVE GARDNER concurred.                                                                                               
                                                                                                                                
CHAIR SEATON said, "That will be fine with me."                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG removed his objection.                                                                                 
                                                                                                                                
CHAIR SEATON  announced that, there being  no further objections,                                                               
HB  177  was  moved  out  of the  House  State  Affairs  Standing                                                               
Committee  with  individual   recommendations,  the  accompanying                                                               
fiscal  notes,  and  a  letter   to  the  Speaker  of  the  House                                                               
requesting a House Judiciary Standing Committee referral.