SB 55 AMEND DEFINITION OF "PROGRAM RECEIPTS" COCHAIR PEARCE MOVED for adoption of a draft CS. SENATOR ADAMS objected, then withdrew his objection. Without further objection, CSSB 55(FIN) was adopted. SENATOR PHILLIPS MOVED for adoption of Amendment #1. COCHAIR PEARCE objected. Testimony was heard from ALISON ELGEE, RANDY WELKER and MIKE GREANY. Amendment offered. COCHAIR PEARCE MOVED CSSB 55(FIN) from committee with individual recommendations and an updated fiscal note. Without objection, CSSB 55(FIN) was REPORTED OUT with a zero fiscal note from the Senate Finance Committee. SENATE BILL NO. 55 "An Act relating to the definition of certain state receipts; and providing for an effective date." COCHAIR PEARCE MOVED for adoption of a draft CS, version B. SENATOR ADAMS objected for the purpose of an explanation. COCHAIR PEARCE noted the changes on page 2, lines 3-6 using language from a similar bill passed last year, and a change on page 3, lines 9-13 that added specific entities to the list of fund receipts, those being the children's trust, commercial fisheries test fishing operations, and the public utilities commission. Contracting language from the governor's bill was moved up to page 2, line 6. SENATOR ADAMS withdrew his objection. Without further objection, CSSB 55(FIN) was adopted. SENATOR PHILLIPS MOVED for adoption of Amendment #1. He requested the drafter insert the language in the appropriate sections. It would add rental receipts to page 2, line 3 and cover Pioneer Homes, Public Safety and Fish and Game employees, and Foreign Trade Offices. It had been a concern brought up by the department and he offered it on their behalf. COCHAIR PEARCE objected. ALISON ELGEE, Deputy Commissioner, Department of Administration, testified that they were interested in recognizing the rents that Pioneer Home residents pay for residing there as something other than general fund program receipts. The revenues would continue to be appropriated and subject to the same scrutiny, but as rents were raised, they would get some credit toward the general fund expenditures by recognizing them as being specific to the Pioneer Home programs. There was discussion between SENATOR PARNELL and MS. ELGEE about where the language should appear in the bill. COCHAIR PEARCE invited Mr. Welker and Mr. Greany to the table to comment on their recommendations. In response to a question from SENATOR TORGERSON, MS. ELGEE discussed employee housing rental receipts and noted there was not lease agreement. MIKE GREANY, Director, Legislative Finance Division, described the bill and the columns of appropriations. He informed the committee that SB 55 would move some of the general fund appropriations to the other funds column and they would no longer be counted as general fund. It would move about $55 million of designated receipts from the general fund and move them off budget. He expressed concerns about moving closer to a form of dedication and away from the notion that the majority of receipts the state takes in were not dedicated were available to the legislature for appropriation. He explained in further detail. RANDY WELKER, Legislative Auditor, Division of Legislative Audit, testified that the bill represented strictly a budgetary consideration of which column you want the receipts to show up in. He said it didn't matter from an accounting perspective because there were still mechanisms to track the receipts. The bill was drafted to narrowly define what receipts were moving out of the general fund category into other funds so that only those things where a third party had a significant influence over how the funds must be spent would be moved. In response to a question from COCHAIR SHARP, MR. GREANY responded that there would be less than $500 thousand of receipts for Fish and Game, Foreign Trade offices and Public Safety. Additional discussion ensued among COCHAIR PEARCE, SENATOR PHILLIPS and MS. ELGEE about keeping a narrow definition and housing receipts. A roll call vote was taken on the MOTION to adopt Amendment IN FAVOR: Adams, Phillips OPPOSED: Torgerson, Parnell, Pearce, Sharp Amendment #1 FAILED by a 2 to 4 vote. Amendment #2 was not offered. COCHAIR PEARCE MOVED CSSB 55(FIN) from committee with individual recommendations and an updated fiscal note. Without objection, CSSB 55(FIN) was REPORTED OUT with a zero fiscal note from the Senate Finance Committee.