Date: 07/10/2006

Final
BILL SUMMARY for HB06S-1015

COMMITTEE ON CONFERENCE COMMITTEE

Votes: View--> Action Taken:
Adopt the rerevised bill with amendments (.004). PASS


08:39 AM

Representative McGihon explained the purpose of the conference committee. Senator Keller noted that the Office of Information Technology (OIT) has concerns about the timeline required for preparation of a database of information.


08:40 AM

John Picanso, Director, Office of Information Technology, spoke to the committee about establishing a state portal required by the bill within the current deadlines of the bill. Representative McGihon noted that the vagueness in the bill was intended to make implementation of its requirements more flexible.


08:43 AM

Representative J. Kerr asked what types of privacy issues Mr. Picanso was referring to in his testimony. Committee discussion ensued. Mr. Picanso suggested that OIT's Chief Information Security Officer would be able to clarify those issues.


08:47 AM

Mark Weatherford, Chief Information Security Officer, Office of Information Technology, responded to Representative J. Kerr's question regarding privacy controls. He emphasized the need to define who would have access to the database. Senator Keller and Senator Owen discussed the need to take time to plan for implementation of the database.


08:53 AM

Michael Cooke, Executive Director, Department of Revenue (DOR), came to the table to discuss the way OIT and DOR might be required to work together to implement the legislation. She indicated that Revenue does not currently have in place a process for verifying employee identification.


08:58 AM

Jason Gelender, Office of Legislative Legal Services, discussed language in the bill regarding the role of the Department of Revenue in verifying employee identification. Ms. Cooke indicated that at present the Internal Revenue Service (IRS) database is not operational and her office is unaware when such database will be available and who will have access to it.


09:03 AM

Jennifer Okes, Department of Personnel and Administration, came to the table to discuss the fiscal impact of the bill on the department.


09:08 AM

Michael Cooke, DOR, discussed with the committee where rejected social security or individual tax identification numbers are returned after a state department has submitted them.


09:10 AM

Senator Keller indicated that her understanding was that the discussion for the conference committee was the fiscal impact statement of the bill. She asked Ms. Okes to address that issue.


09:12 AM

Ms. Okes responded that the Department felt new programming would be necessary to implement some kind of state level check of social security numbers and individual tax identification numbers. Committee discussion ensued.


09:15 AM

Following discussion, the committee recessed pending the Senate requesting permission to go beyond the scope of differences between the two houses. In addition, the committee asked departments to provide additional clarification about how the requirements of the bill would be implemented.


03:39 PM

Committee discussion resumed. Representative McGihon explained the progress of the discussion since the conference committee's previous meeting.


03:40 PM

Senator Tapia asked for clarification of the role of the Department of Revenue following discussions. Senator Keller asked for clarification of who would be required to fill out a 1099. Representative McGihon explained the definition of employer under the related section of state law.


03:45 PM

Ron Kirk, Legislative Council Staff, explained how the 1099 form would apply for businesses hiring independent contractors. He responded to additional questions from the committee.


03:49 PM

Representative McGihon explained the proposed conference committee report (Attachment A). The committee also received a draft of the pre-amended bill with the changes from the committee report incorporated (Attachment B).


03:52 PM

Senator Keller expressed her continuing concern about to whom the withholding requirements of the 1099 would apply. Committee discussion ensued.


03:56 PM

Jeff Wells, Executive Director, Department of Personnel and Administration, came to the table to discuss how many 1099s are returned to the Department. He indicated that approximately 14,500 1099 forms are submitted to the Internal Revenue Service. Of those, about 120 are returned to the state and all but about 10 to 12 are fixed. He explained the Department's process for obtaining 1099s from contractors who do work for the state.


04:06 PM

Senator Owen asked why the bill did not include and enforcement mechanism. Committee discussion ensued.


04:14 PM

Ron Kirk, LCS, explained the cross-verification program available to state government via the IRS.


04:17 PM

Following clarifications from the discussion, Senator Keller listed the changes made to the bill from the conference committee report.


04:19 PM

Representative McGihon noted her intent in changing "person" to "employer" in the bill.


04:21 PM

Representative A. Kerr noted the original desire of himself and Representative J. Kerr to implement the requirements of the bill immediately, although the amended bill would allow more time for implementation of the changes required.
BILL:HB06S-1015
TIME: 04:54:58 PM
MOVED:Kerr A.
MOTION:Adopt the rerevised bill with amendments (.004). The motion passed 6-0.
SECONDED:Kerr J.
VOTE
Kerr A.
Yes
Tapia
Yes
Kerr J.
Yes
Owen
Yes
Keller
Yes
McGihon
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



04:22 PM

The committee adjourned.