Bill Summary for Bill Number HB06-1395

Date: 04/13/2006

Final
BILL SUMMARY for HB06-1395

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved a substitute motion to adopt amendment L.008 Moved to reconsider amendment L.003 (Attachment E) Refer House Bill 06-1050, as amended, to the Commi	Pass Without Objection PASS PASS

11:55 AM -- House Bill 06-1050 - House Bill 06-1050 - Concerning A Budget Stabilization Fund - (for action only)

House Bill 06-1050 was initially heard by the committee on March 8, 2006. (During this meeting, Representative Buescher and Representative Hall explained that House Bill 06-1050 creates a rainy day fund from several funding sources. Representative Buescher distributed amendment L.003 and said the amendment changes the funding sources for the rainy day fund and also allows money in the fund to be used for any purpose with a two-thirds vote of the legislature. Funding sources include: an annual General Fund appropriation of $5 million (appropriation is optional if the fund balance is at least 5% of total General Fund appropriations under the 6% limit of the preceding fiscal year or if General Fund revenue is estimated to limit General Fund appropriations to growth of less than 4%.); $10 million of the tobacco settlement money that is credited to the General Fund annually; and 10% of excess General Fund reserves.)

During the April 13 meeting, the committee heard the bill for action only, Representative Buescher distributed amendment L.008 (Attachment B), a preamended version of House Bill 06-1050 incorporating amendment L.008 (Attachment C), and a summary sheet on amendment L.008 from the Office of Legislative Legal Services (Attachment D). Representative Buescher explained the following. The amendment provides for the funding sources for the Budget Stabilization Fund in House Bill 06-1050 beginning FY 2006-07. The three primary funding sources are: from the General Fund, for FY 2006-07, an appropriation in the amount of any difference between the 6 percent limit and the amount of General Fund appropriations actually made, for each subsequent year, $5 million; plus, 10 percent of the amount of any General Fund surplus that is credited to the Highway Users Tax Fund and the Capital Construction Fund (2/3, 1/3 diversion); plus, from the tobacco litigation settlement moneys, $10 million per year unless the state does a full or partial tobacco securitization, in which case the first $150 million of net proceeds.

Representative Buescher continued to discuss the provisions in the amended version of the bill that would allow the General Assembly to access money from the Budget Stabilization Fund. When General Fund revenue will limit General Fund appropriations under the 6 percent limit to growth of less than 4 percent, the bill allows the General Assembly to access an amount less than or equal to 1/2 of the difference between 4% General Fund appropriations growth and the amount below 4% that General Fund appropriations are able to increase. In addition, with an affirmative vote of 2/3 of the General Assembly, the fund can be used for any purpose, including to maintain the 4% statutory reserve. There is no limit on the amount that is used when the fund is used with an affirmative vote of 2/3 of the General Assembly.

The committee discussed the amendment as a change that would allow for a funding source from tobacco litigation settlement moneys should the state securitize the revenue stream from the Master Settlement Agreement. (In order for the committee to adopt amendment L.008, it reconsidered amendment L.003 which was adopted at a previous meeting. Once the amendment was reconsidered, a substitute motion to adopt amendment L.008 passed without objection by those members present. The committee took final action on the bill and referred it to the Committee on Appropriations as amended, on a 12-1-0 vote (see following vote sheets).


BILL:	HB06-1050
TIME:	12:10:09 PM
MOVED:	Judd
MOTION:	Moved to reconsider amendment L.003 (Attachment E). (On March 8, 2006, the House Finance Committee adopted amendment L.003. The amendment changes the funding sources for the rainy day fund and also allows money in the fund to be used for any purpose with a two-thirds vote of the legislature. Funding sources include: an annual General Fund appropriation of $5 Million (appropriation is optional if the fund balance is at least 5% of total General Fund appropriations under the 6% limit of the preceding fiscal year or if General Fund revenue is estimated to limit General Fund appropriations to growth of less than 4%.); $10 million of the tobacco settlement money that is credited to the General Fund annually; and 10% of excess General Fund reserves.) The motion to reconsider amendment L.003 passed on a 13-0-0 vote.
SECONDED:	Cloer
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Not Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB06-1050
TIME:	12:11:01 PM
MOVED:	Cloer
MOTION:	Moved a substitute motion to adopt amendment L.008. The amendment provides for the funding sources for the Budget Stabilization Fund in House Bill 06-1050 beginning FY 2006-07. The three primary funding sources are: from the General Fund, for FY 2006-07, an appropriation in the amount of any difference between the 6 percent limit and the amount of General Fund appropriations actually made, for each subsequent year, $5 million; plus, 10 percent of the amount of any General Fund surplus that is credited to the Highway Users Tax Fund and the Capital Construction Fund (2/3, 1/3 diversion); plus, from the tobacco litigation settlement moneys, $10 million per year unless the state does a full or partial tobacco securitization, in which case the first $150 million of net proceeds. The substitute motion to adopt amendment L.008 passed without objection by those members present.
SECONDED:	McCluskey
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1050
TIME:	12:11:32 PM
MOVED:	Frangas
MOTION:	Refer House Bill 06-1050, as amended, to the Committee on Appropriations. The motion passed on a 12-1-0.
SECONDED:	Judd
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	No
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS