HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE March 8,1994 3:00 p.m. MEMBERS PRESENT Rep. Cynthia Toohey, Co-Chair Rep. Con Bunde, Co-Chair Rep. Gary Davis, Vice Chair Rep. Al Vezey Rep. Pete Kott Rep. Harley Olberg Rep. Bettye Davis Rep. Irene Nicholia Rep. Tom Brice MEMBERS ABSENT None OTHER LEGISLATORS PRESENT Rep. John Davies COMMITTEE CALENDAR HB 506: "An Act relating to student loans; to sanctions for defaulting on a student loan, including denial of a state occupational license or disbursement of state money; and providing for an effective date." PASSED OUT OF COMMITTEE *HB 466: "An Act authorizing the issuance of bonds by the Alaska Housing Finance Corporation to pay for the cost of repair and rehabilitation of student housing facilities of the University of Alaska; authorizing the insurance of bonds by the University of Alaska to pay for the costs of repair and rehabilitation of facilities of the University of Alaska; amending powers of the Alaska Housing Finance Corporation; amending the definition of "public building"; relating to the Alaska debt retirement fund; and providing for an effective date." PASSED OUT OF COMMITTEE *HB 234: "An Act relating to endowments and donations of the University of Alaska and the University of Alaska endowment trust fund; and providing for an effective date." PASSED OUT OF COMMITTEE (* First public hearing.) WITNESS REGISTER JOE MCCORMICK, Executive Director Alaska Commission on Postsecondary Education 3030 Vintage Blvd. Juneau, Alaska 99801-7109 Phone: (907) 465-6740 Position Statement: Answered questions on HB 506 BRIAN ROGERS, Vice-President for Finance University of Alaska System 207 D Butrovich UA Fairbanks, Alaska 99775 Phone: (907) 474-7448 Position Statement: Testified in support of HB 466 and HB 234 WILL GAY, Executive Director Alaska Housing Finance Corporation 520 E. 34th Ave. Anchorage, Alaska 99503 Phone: (907) 564-9326 Position Statement: Testified in support of HB 466 (spoke via offnet) ALISON ELGEE, Statewide Budget Director University of Alaska 227 4th St. Juneau, Alaska 99801 Phone: (907) 463-3086 Position Statement: Testified on HB 466 CHIP WAGONER, Vice-President Alumni Board University of Alaska Fairbanks 3294 Pioneer Ave. Juneau, Alaska 99801 Phone: (907) 586-1867 Position Statement: Testified in support of HB 466 NICHOLAS ABRAMCZYK, Member Associated Students of the University of Alaska, Fairbanks P.O. Box 99775 Fairbanks, Alaska 99775 Phone: (907) 474-5156 Position Statement: Testified in support of HB 466 LARAINE DERR, Deputy Commissioner Treasury Department of Revenue P.O. Box 110400 Juneau, Alaska 99811-0400 Phone: (907) 465-4880 Position Statement: Testified in opposition of HB 234 PREVIOUS ACTION BILL: HB 506 SHORT TITLE: STUDENT LOAN PROGRAM SPONSOR(S): HEALTH, EDUCATION AND SOCIAL SERVICES BY REQUEST JRN-DATE JRN-PG ACTION 02/16/94 2416 (H) READ THE FIRST TIME/REFERRAL(S) 02/16/94 2416 (H) HES, L&C, FINANCE 03/03/94 (H) HES AT 03:00 PM CAPITOL 106 03/03/94 (H) MINUTE(HES) BILL: HB 466 SHORT TITLE: AHFC BONDS FOR UNIV. OF ALASKA USES SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR JRN-DATE JRN-PG ACTION 02/11/94 2348 (H) READ THE FIRST TIME/REFERRAL(S) 02/11/94 2348 (H) HES, FINANCE 02/11/94 2348 (H) -2 ZERO FISCAL NOTES (GOV, REV) 2/11/94 02/11/94 2349 (H) GOVERNOR'S TRANSMITTAL LETTER 03/08/94 (H) HES AT 03:00 PM CAPITOL 106 BILL: HB 234 SHORT TITLE: UNIVERSITY OF AK ENDOWMENT TRUST FUND SPONSOR(S): REPRESENTATIVE(S) DAVIES,Martin,Phillips,Bunde, Ulmer JRN-DATE JRN-PG ACTION 03/17/93 684 (H) READ THE FIRST TIME/REFERRAL(S) 03/17/93 684 (H) HES, FINANCE 03/08/94 (H) HES AT 03:00 PM CAPITOL 106 ACTION NARRATIVE TAPE 94-40, SIDE A Number 000 CHAIR BUNDE called the meeting to order at 3:08 p.m., noted members present and announced the calendar. He then read portions of an article from the Anchorage Daily News regarding students and student loans. He indicated that collectively students in the United States owe $41.9 billion on student loans. He said in many schools 70% of the student body choose to borrow, and the average debt per student is $79,000. He further related that in a survey of 551 recent college graduates, four out of ten students said they could handle their payments; however, one out four said their debt affected their decision as to when or if to marry. One-third stated that it also influenced their decision to start a family, and four out of ten work at two jobs or more because of their debt. He further stated that 1/4 said their loans have caused them to live with relatives and 35% said they have postponed needed health care because of their debt. He also said that 13% said they were forced to drop out of school because of their debt. (CHAIR BUNDE stated for the record that Rep. Nicholia and Rep. B. Davis arrived at 3:10 p.m.) CHAIR BUNDE then brought HB 506 to the table. HB 506 - STUDENT LOAN PROGRAM Number 122 CHAIR BUNDE indicated that Amendment 1 was before the committee, which would address the issue of consolidating loans and would allow loans to be rounded off to the nearest tenth. (He indicated that Rep. Olberg arrived at 3:11 p.m.) He then moved Amendment 1 for purposes of discussion. REP. BRICE objected. CHAIR BUNDE asked Mr. McCormick to speak to the amendment. Number 130 JOE MCCORMICK, Executive Director, Alaska Commission on Postsecondary Education (ACPE), answered questions on HB 506. He stated that "this is just a mechanical, or what I would call a technical, amendment to exact the administration of this provision of the bill. And, this is the only further amendment that we have today..." Number 165 CHAIR BUNDE asked Rep. Brice to speak to his objection. REP. BRICE asked, if loans are consolidated and the average rate is 7.6%, will the rate then be rounded off to 8%? MR. MCCORMICK explained that it is the nearest tenth of a percent. REP. BRICE said he understood. CHAIR BUNDE asked if Rep. Brice still maintained his objection. REP. BRICE said no. Number 194 CHAIR BUNDE, hearing no further objections, declared that Amendment 1 was adopted. He said HB 506 as amended was before the committee. REP. VEZEY proposed an amendment that would incorporate the body of a bill he introduced (HB 488) with that of HB 506 as amended. He said it dealt with the same chapters of Alaska statutes. CHAIR BUNDE interjected and said he assumed Rep. Vezey's amendment would limit student loans to Alaskan schools only. REP. VEZEY said yes. CHAIR BUNDE asked if he were interested in pursuing the issue. REP. VEZEY asked the pleasure of the committee in regards to HB 488. REP. BRICE said he felt that the amendment might hold merit in certain circumstances, but indicated that he would feel much more comfortable with back-up information and the opportunity to debate that specific bill before the amendment would be made. He said he opposed the amendment. Number 262 CHAIR BUNDE asserted that he would rather address HB 488 separately to allow opportunity for testimony and discussion. REP. TOOHEY suggested that a roll call vote be taken. CHAIR BUNDE stated that before the amendment could be addressed it would have to be seen and testified upon. He said the committee would not vote on something that has not been discussed. He reiterated that he wanted to handle it as a separate issue. REP. VEZEY concurred. CHAIR BUNDE asked for further discussion on HB 506. REP. BRICE suggested that perhaps some discussion should be made in the Labor and Commerce Committee in regards to capping the interest rate at 15% or 16%. He referred to the article that indicated that employers are looking for highly skilled and technically trained college graduates. He said that a free floating percentage rate could leave students in very difficult situations and that the loan program would not be making any loans. CHAIR BUNDE asked the pleasure of the committee. REP. VEZEY made a motion to pass HB 506 as amended out of committee with individual recommendations and accompanying fiscal note. CHAIR BUNDE, hearing no objections, stated that HB 506 was so moved. He then brought HB 466 to the table. He asked for public testimony. HB 466 - AHFC BONDS FOR UNIV OF AK USES Number 394 BRIAN ROGERS, Vice-President for Finance, University of Alaska, testified in support of HB 466. He stated that the legislation would address the long standing problem of deferred maintenance throughout the University of Alaska system. He said the proposal would authorize the Alaska Housing Finance Corporation (AHFC) to issue up to $30 million for the repair and rehabilitation of student housing projects and would authorize the University of Alaska to issue an additional $45 million in bonds to cover other deferred maintenance projects throughout the system. MR. ROGERS referred to project lists in the committee bill packets and stated that the deferred maintenance problem totals over $150 million. He said, accumulated over time, it would be a major step in solving the problem. He expected that funds would be spent at $25 million per year, which would fix dormitories and address other projects. He further stated that $30 million in AHFC bonds is the full amount of the repair and rehabilitation projects for student housing throughout the system and would bring all existing student housing deferred maintenance down to zero. He stated that $45 million is the most current debt capacity allowed and he felt that going further than that would jeopardize the University's excellent credit rating. He said bonds would provide a comprehensive program to address the deferred maintenance problem and would prevent accelerated deferred maintenance. MR. ROGERS further stated that currently the cost of money is the lowest it has been in the last thirty years. He said with a payoff over time with inflated dollars, the net present value will not be that much larger than the cost of issuance. He then indicated that Will Gay was on line to testify also. CHAIR BUNDE asked for testimony from Mr. Gay. Number 477 WILL GAY, Executive Director, Alaska Housing Finance Corporation, testified via offnet in support of HB 466. He stated that the bill would allow a chance for the AHFC to have access to the capital market and to help youths with student housing. He said this was an example of one of the many ways that AHFC can help the state. He commented that he had heard rumors about various amounts of assets that could be expropriated away from the AHFC. He felt it was an example of how AHFC can help the state with its housing needs. Number 507 REP. BRICE asked if the AHFC or the University will have to go before the legislature again for approval of specific projects. MR. ROGERS stated that the bond issue would not require further legislative authority. He said the University has tried to supply the legislature with a full list of projects and he would continue to keep the legislature apprised of the progress. Number 532 REP. VEZEY asked Mr. Rogers to explain to him why there is a $75 million bond authorization and a zero fiscal note. MR. ROGERS explained that the fiscal note is zero in terms of initial costs, but there is a debt service note that has not been provided. The amount of debt service would "ramp up" to a total of $6.2 million on an annual basis, once all the bonds are issued and debt service begins. There would be no cost to the general fund next year, but there certainly would be in the following years. REP. VEZEY said he did not have a fiscal note from the University. CHAIR BUNDE asked Alison Elgee to testify. Number 550 ALISON ELGEE, Statewide Budget Director, University of Alaska, testified on HB 466. She stated that the proposal is in essence an appropriation bill that would appropriate debt capacity. She said included in Section 6, subsection B, is the description of the anticipated annual payment amount on $45,000 that would be bonded under the University's debt capacity. Number 593 (CHAIR BUNDE stated for the record that Rep. Kott arrived at 3:24 p.m.) REP. VEZEY said he is still did not see a fiscal note that addresses the debt service. MS. ELGEE said she would be glad to provide Rep. Vezey with a fiscal note. MR. ROGERS stated that the debt service would be appropriated out of the Alaska Debt Retirement Fund. He said he was unaware that a fiscal note had not been prepared for that. REP. VEZEY asked what the Alaska Debt Retirement Fund is. MR. ROGERS explained that it is a fund that was created by Alaska Statute 37.15.011 that consists of annual appropriations by the legislature. Number 627 CHAIR BUNDE asked Chip Wagoner to testify. Number 630 CHIP WAGONER, Vice-President, Alumni Board, University of Alaska Fairbanks (UAF), testified in support of HB 466. He stated that there is much history in the University of Alaska and today the University is one of the most internationally known research, teaching and public service institutions in the world. He said it is rated in the top ten in research institutions in the country, and second in the Pacific Northwest for the number of national merit scholars attending UAF. He stated that UAF is one of the few institutions in the country that has been not only designated as a land grant college, but also as a sea grant college and a space grant college. He indicated that past legislatures have certainly recognized the importance of young people and their futures in the state. MR. WAGONER said there are over 22 acres of roofs on the buildings at UAF, nearly 2.6 million square feet of floors, and over 25% of all state facilities are on the UAF campus. He then explained that UAF is one of the oldest investments in the state with buildings over 70 years old. He said the mechanical systems are falling apart and they do not have ventilation systems. He also stated that nearly 90% of the buildings are over 20 years old. MR. WAGONER further commented on the state of disrepair throughout the entire UAF campus, citing leaking roofs and falling concrete. He asserted that if the situation continues into the next few years, it will cost the state even more to maintain its investment. He said the deferred maintenance is "catch up work." He said deferred maintenance has been the Alumni Board's number one priority for the last two years. He suggested that if the entire $150 million could not be funded, they were willing to accept $75 million. MR. WAGONER stated that a comprehensive funding solution is necessary to maintain Alaska's sound investment in the University. He urged the committee to make deferred maintenance for the University system its chief priority this session. Number 818 CHAIR BUNDE asked Mr. Wagoner if there was any private support coming through from the Alumni. MR. WAGONER stated that UAF just completed a campaign to raise funds for scholarships, etc. He said he was pleased to say that the Alumni Board and the public contributed over $12 million. He said the Alumni Association plans to become more proactive. CHAIR BUNDE commended the efforts of the Alumni Board. He then commented that the reason the state has the deferred maintenance problem now is because the University administration and the Regents did not spend the money that had been given to them by the legislature, they invested it in other places. He said he will support the bill now but would not support any reallocation of funds in the future. Number 865 REP. BRICE added that the Chamber of Commerce has been a great support to the University. He then thanked Mr. Wagoner for his time and testimony.. Number 884 NICHOLAS ABRAMCZYK, Member, Associated Students of the University of Alaska, Fairbanks, testified in support of HB 466. He stated that he is a resident on the UAF campus. He said that he uses the analogy that he is the tenant and the state is his landlord. He specified various states of disrepair he has encountered, citing flooded bathrooms, broken heating systems at -60 degrees, and obstacle courses of buckets in the halls that catch the water leaking from the ceilings. He related his concern he had as to whether his younger brother would be offered any type of quality education if the problem wasn't addressed. He urged the committee to pass HB 466. Number 955 CHAIR BUNDE thanked Mr. Abramczyk for his testimony. REP. BRICE explained that while he was sitting in class at UAF he had encountered tiles and light panels falling from the ceiling. He asserted that there is bound to be liability when deferred maintenance is not dealt with appropriately and he supposed that a student could be seriously injured. He said ultimately the cost would fall back on the state. Number 000 CHAIR BUNDE suggested that another option would be to close the facilities. He then closed public testimony and asked for testimony. REP. G. DAVIS reiterated the problems the University was facing and said the issue must be addressed. He indicated that the financial aspect should be addressed in the Finance Committee. He made a motion to move HB 466 out of committee with individual recommendations. CHAIR BUNDE objected and asked if the committee would rather wait for the missing fiscal note. REP. VEZEY said he would vote against moving the bill out until a fiscal note is received. Number 022 REP. BRICE indicated that the committee is aware of the necessary funds which are outlined specifically in the bill. He said the information is there but not in fiscal note form. Number 028 REP. TOOHEY agreed with Rep. Brice. She said the committee's job has been done and the funding would be addressed by Finance. REP. BRICE agreed with Rep. Toohey and Rep. Brice. CHAIR BUNDE called for the vote. Representatives Toohey, Bunde, G. Davis, Olberg, B. Davis, Nicholia, and Brice voted Yea, and Rep. Vezey voted Nay. Chair Bunde stated that HB 466 was passed out of committee without the accompanying fiscal note. MR. ROGERS stated that he could have the fiscal note delivered to the committee by the end of the day. CHAIR BUNDE thanked Mr. Rogers. He then brought HB 234 to the table. HB 234 - UNIVERSITY OF AK ENDOWMENT TRUST FUND TAPE 94-40, SIDE B Number 000 REP. JOHN DAVIES, Prime Sponsor of HB 234, addressed his bill. He stated that the legislation would transfer the management of the University of Alaska endowment trust fund from the Department of Revenue to the University. He said Governor Hickel has charged the University "with managing the ranch." He said the University seeks to have the authority to meet that responsibility. He said, "I would note that the Department of Revenue has said that perhaps the comparisons here are apples and oranges. Being an educational institution, the University chooses apples." Number 051 CHAIR BUNDE called on Brian Rogers for further testimony. Number 053 BRIAN ROGERS, Vice-President for Finance, University of Alaska, testified in support of HB 234. He stated that the bill would increase the University's control over its endowment revenues and potentially increase income to the University. He said the trust fund was established prior to statehood as a trust fund tied to the University's land activities. The net income from the development of the land is placed in the trust fund and the University has access to the revenues annually. He said that as of June 30, 1993, there was a total of $21 million in the trust and expected there to be $26 million by this year end. MR. ROGERS asserted that the concern regarding management by the Department of Revenue was in the area of investment performance. He said the Department does a "spectacular job" of managing fixed income investments; however, their equity funds have lagged significantly. He said there are no international investment opportunities. He indicated that after reviewing the last five years, it was felt that if the University had managed the portfolio under the asset allocation that the Foundation uses, as opposed to the asset allocation the Department uses, the difference would be about $300,000 per year. He said the legislation was introduced by the five members of the University Budget Subcommittee of the House Finance Committee. MR. ROGERS further stated that he had performance comparison numbers comparing the state's and the University's management plans. He said the University may still want to have the state manage portions of the fixed income investment because they have done such a good job. But, he felt that further diversification makes more sense. Number 145 CHAIR BUNDE asked if the University would be at a greater risk managing the money as it would be looking for a greater return. MR. ROGERS explained that because of the kind of diversification the University has been able to do, the risk levels are not being exceeded, while the return levels are being exceeded. He attributed the success to the choice of superior managers that have been in the top 14% in the country for the last five years. He said their fees are lower than comparable commercial managers because they are set up as a nonprofit organization. Number 194 CHAIR BUNDE referred to the zero fiscal note from the University and said there must be a cost for managing the funds. He asked, if additional funds are added to what is already being managed, would there be an additional cost. MR. ROGERS said that there would be a cost, but it would be netted against the investment results. Investment fees are deducted from the net that is received. He said it would be additional income, but the amount could not be predicted. He said he was surprised to see that it would actually cost the Department of Revenue more not to manage the funds. CHAIR BUNDE asked what percentage it costs to manage the funds. Number 223 MR. ROGERS stated that it ranged from 20 to 50 basis points depending on the type of investment. "The state's at 20% on average on theirs. I believe we pay them $52,000... it was last year for managing our funds." CHAIR BUNDE requested testimony from Laraine Derr. Number 230 LARAINE DERR, Deputy Commissioner, Treasury, Department of Revenue, testified in opposition to HB 234. She stated that the Department of Revenue believes that it makes more sense for funds to be in one place. When there are more funds to manage the costs are less expensive. She said it cost the Department about 20 basis points to manage the funds. She explained that 100 basis points is 1%, indicating that the Department charges the University 200ths of a percent to manage the funds which is "as inexpensive as you can get anywhere." MS. DERR stated that in a performance measurement report that she received that week, the fund surpassed $26.7 million in December. She said the Department's strength is in fixed management and the fund earned $2.2 million from September 30, 1993, to December 31, 1994. She further stated that the asset allocation in the Department for the trust fund is relatively risk free at 82% in fixed income and only 8% in domestic equity. She explained that the Department met with the University in December and indicated that if the Department kept the funds and the funds were maintained in the treasury, the Department would be interested in working with an asset allocation. She said it was true that the funds could be further diversified between fixed income and domestic equities. Number 326 CHAIR BUNDE asked Ms. Derr to speak to the fiscal note. MS. DERR said there are no custodial fees because they are "netted out." She said, "In their case, when they're not using state people to manage the funds, they can take them out of fees. We essentially charge them, but it would reduce the earnings. It's portions of people time... monitoring and investing managing the money." CHAIR BUNDE said, "But, you really wouldn't be doing the work. So would you still be losing the income?" MS. DERR said, "The people are still there, so I have to pay their salaries. Right now the fund is charged 22.5 thousand to manage the funds. If the funds go away, I've still got the people there because it's like... 10% of this person's time and 3% of this person's time and counting the assets and investing the fund. It's part of $3 billion in one part and $6 billion in another part that's invested, so it's very minuscule." Number 359 REP. TOOHEY said she was a little nervous and said it would be like changing stock brokers. She asked Ms. Derr if the fund would be in jeopardy if given over to the University. MS. DERR said no. REP. TOOHEY asked if the Department's primary concern is only to be in charge of the fund. MS. DERR said yes. MR. ROGERS said the University managers offer other diversification and better equity management. Number 394 REP. TOOHEY asked what happens if the University takes over the fund and loses money. She asked if the fund would be transferred back to the Department of Revenue. MR. ROGERS said long term relationships must be stressed and that it is not wise to jump from one management team to another. REP. BRICE said, "If University is paying that 22.5 out of its earnings, the $26 million... that wouldn't be considered straight general fund. That should probably be considered program receipts." MS. DERR said the Department of Revenue pays the University interest on the fund quarterly and then they are billed annually for the $22,500. She said the University may take it out of the earnings and interest that the Department is paying them. She stated that the trust account is split amongst several people, and she would not be able to lay off a half-time person. She said, "I would have to pick up the 22.5. I can't lay off a half-time person." Number 460 REP. BRICE asked where the $22,500 was going to as it was not reflected anywhere else in the fiscal notes. MS. DERR said, "...and what Mr. Rogers said was that they would pick it up. But they wouldn't be using University people to manage it. They wouldn't be paying somebody in house. They would be paying an external manager. So, they could net fees on the entire thing, and so it would be just a different form of management." REP. BRICE said it sounds like it is all within the same system. Number 480 REP. VEZEY stated that the Department invests in fixed income and the University invests in equity which has fluctuating principle values. He said there would be higher return potential with the equity investment, but there would be a substantially higher risk involved. MR. DERR said if the University invested all the funds in domestic equity, and the Department invested it all in fixed income, there would certainly be a difference in risk return. REP. TOOHEY asked if the University managers are going to be "willy-nilly" investors. She said the Department has a proven track record. MS. DERR said that the assets are primarily in fixed income investments and indicated that it is relatively risk free. Number 518 REP. BRICE suggested that the business students at UAF could do a great job at managing the funds. REP. G. DAVIS asked Mr. Rogers to explain the comparison of earnings rates that is supplied in the bill packet. Number 525 MR. ROGERS stated that both the state and the University get performance evaluations that are conducted by the state. He indicated that he also had results from an evaluation that ended June 30, 1993, whereby the University endowment fund earned 14.17% under state management. The University of Alaska Foundation Funds earned 16.1% over the same period. He said in 1993 the state earned 14.3% under fixed income versus the University at 13.2% and the Department out- performed the University's fixed income manager. He further stated that the state earned 13.63% on the equity fund and the University earned 24.90%. Number 564 REP. G. DAVIS asked if 1988 was the first year of comparison. MR. ROGERS said yes. REP. DAVIES maintained that the risk is relative to the nature of the particular investment and that most investments would be over a long period of time, thereby reducing the risk. MR. ROGERS noted that Mr. Rassmussen, Chair of the University Investment Committee, has helped to set the guidelines for asset allocation. He further stated that the University's asset allocation does not normally exceed 50% in equities at any given point in time. Approximately 25% of University equity investments will be foreign equities, and approximately 20% of bond investments will be outside the United States. He said the University is taking a very cautious approach to nontraditional investments. MS. DERR asserted that the majority of funds in the Department are diversified in similar ratios to that of the University. She indicated that the Department just recently received returns on the retirement fund that put them in the top seventh and eighth percentile in the United States for fund investments. Number 632 CHAIR BUNDE asked Ms. Derr what the percentage of return was for the Department last year. MS. DERR said 14.3% for the entire funds. CHAIR BUNDE asked what the total percentage of return was for the University's portion. MS. DERR answered 11.5%. CHAIR BUNDE asked for further discussion. MR. ROGERS stated that the Department of Revenue has been paying more attention to the fund since last year when they became aware that the University wanted to take over the management of funds. CHAIR BUNDE interjected and indicated that Rep. B. Davis was leaving for another meeting and for the record welcomed her back to Juneau. MR. ROGERS further stated that it appears that competition does have advantages. Number 669 CHAIR BUNDE said he endorsed competition amongst the three branches of the University. REP. BRICE made a motion to move HB 234 out of committee. CHAIR BUNDE indicated that public testimony had not been closed. He asked for further testimony. Hearing none, he closed public testimony and asked for discussion from the committee. REP. BRICE made a motion to pass HB 234 out of committee with individual recommendations and accompanying fiscal note. REP. VEZEY objected. Number 682 CHAIR BUNDE called for the vote. Representatives Bunde, G. Davis, Nicholia, Brice, and Toohey voted Yea and Rep. Vezey voted Nay. Chair Bunde declared that HB 234 was so moved. Seeing no further business before the committee, CHAIR BUNDE ADJOURNED the meeting at 4:12 p.m