Approved: 4-25-07
Date
MINUTES OF THE SENATE COMMERCE COMMITTEE
The meeting was called to order by Chairperson Karin Brownlee at 8:15 A.M. on March 15, 2007 in Room 123-S of the Capitol.
All members were present.
Committee staff present:
Amy Deckard, Kansas Legislative Research Department
Kathie Sparks, Kansas Legislative Research Department
Jason Long, Revisor of Statutes
Jackie Lunn, Committee Assistant
Conferees appearing before the committee:
Chris Howe, Director of Purchasing, Department of Administration
Doug Schwinn, Springhill School District
Lisa Hoopes, Post Audit
Philip Hayes, Kansas Society for Human Resource Management
Bill Goodlatte, LDF Companies, Wichita
Doug Robinson, Finance Director, City of Lenexa
Kathleen Olsen-Kansas Bankers Association
Kim Winn, LKM
Bob Mackey, Department of Administration
Secretary Jim Garner, Department of Labor
Others attending:
See attached list.
HB 2169-KDFA issuance of bonds for energy conservation measures
HB 2316-Authorizing paperless payroll methods for employers
SB 342-Enacting the Kansas investment credit act and the Kansas jobs credit act
Chairperson Brownlee introduced Lisa Hoopes, Post Audit, to review the E911 Post Audit Report. (On file in Post Audit) Ms. Hoopes reviewed the report for the Committee. She explained that the Enhanced 911 (E-911) which automatically identifies the location from which an emergency call is being made, has been available for calls made from regular “land-line” telephones for many years. In contrast enhanced 911 for “wireless” calls made from cell phones is a fairly recent development. Determining the location from which a wireless E-911 phone call is being made involves complex, costly technology that many Public Safety Answering Points (PSAPS) can’t afford. A funding source was established in 2004 to help pay for implementation of wireless E-911 services. A statewide grant fund was created to help pay for the implementation of wireless E-911 services. The statewide grant fund will be eliminated in 2010.
Post Audit concluded that it is too early to say with any certainty how PSAPS’s financial status will be affected by the changes in the fee structure in 2010, there are indications of potential problems ahead. Even assuming that PSAPSs will change the maximum allowed by law for wireless and VoIP subscribers, those fees probably won’t generate enough revenue just to pay ongoing monthly operating costs for about 14% of the PSAP.s.
Post Audit recommends that the Department of Administration should do the following:
• use its statutory authority to conduct periodic audits of providers’ records, in addition to the initial audits mandated in 2006 for wireless providers and in 2008 for VoIP providers.
• require these audits to identify all providers who should be collecting 911 fees, make sure they are collecting the fees, and make sure they are remitting the fees. Such audits could include site visits to review and evaluate applicable accounting and control procedures, and to ensure those procedures are appropriately followed.
Post Audit also recommends The Wireless Advisory Board should follow up with the PSAP’s implementing Phase II in 2008 or later. The Board should determine whether the PSAP’s need technical assistance in planning for implementation, and whether they have a reliable funding strategy.
Questions and discussion followed. It appears some funds are higher than needed and may need to be reduced.
Chairperson Brownlee called the Committee’s attention to HB 2169 and introduced Representative Sloan to explain the balloon he offered on the bill. (Attachment 1) Representative Sloan stated the balloon addresses concerns of KCC and KDFA and they are both in agreement and in support of the bill with the amendments.
Senator Barone made a motion to accept the balloon presented by Representative Sloan. Senator Jordan seconded. Motion carried.
Senator Schodorf made a motion to move the bill out favorably as amended. Senator Emler seconded. Motion carried.
Chairperson Brownlee introduced Chris Howe, Director of Purchasing, to give a presentation on the State Tax Use Law. Mr. Howe presented written copy (Attachment 2) He stated the state use laws were modified creating the State Use Committee which consists of members of the vendor community, advocates for persons with disabilities, representatives from a large school district, a small school district and the Board of Regents, as well as the Director of Purchases and two members of the Kansas Legislature.
He stated some Catalog Vendors make their products available through the State of Kansas office supplies contractor improving efficiency and delivery. Sales have increased and he feels that the program is successful.
Chairperson Brownlee introduced Doug Schwin, Spring Hill School District. He also serves on the State Use Committee. He presented written copy. (Attachment 3) He stated quality has improved over the years but the prices are problems in some areas. The Committee is in the process of making several improvements. In closing he stated the amount of sales have increased.
Ron Pasmore, President/CEO of KETCH and a vendor representative on the State Use Law Committee presented written only testimony regarding the presentation of the State Use Law. (Attachment 4)
Chairperson Brownlee opened the hearing on HB 2316 and introduced Jason Long, Revisor, to explain the bill. Mr. Long stated the bill adds a new method of payment into the statute. A payment card is an additional option for employers if they use the electronic fund transfer method but have employees that do not have a bank account. The employer deposits funds into a bank account set up by the employer and then gives the employee a debit card and the employee can access funds in that account using the debit card. Employee would be allowed to withdraw funds one time during each pay period without any usage fees being charged to the employee.
Questions and discussion followed.
Chairperson Brownlee introduced Philip Hayes, Kansas Society for Human Resource Management, to give his testimony as a proponent of HB 2316. He presented written copy. (Attachment 5) Mr. Hayes stated the bill is similar to the bill from last session with a few changes. He stated the bill allows Kansas employers the flexibility they need to more efficiently manage payroll processes and payment methods. Mr. Hayes called the Committee’s attention to a newspaper article from the Wichita Eagle (Attachment 6) and an article from Business & Money. (Attachment 7)
Chairperson Brownlee introduced Bill Goodlatte, LDF Companies, Wichita, to give his testimony as a proponent of HB 2316. He presented written copy. (Attachment 8) He stated employers and employees both benefit from the electronic payroll processing. He urged the Committee to support the bill.
Chairperson Brownlee introduced Doug Robinson, Finance Director, City of Lenexa, to give his testimony as a proponent of HB 2316. He presented written copy. (Attachment 9) Mr. Robinson stated the City of Lenexa strongly supports the bill and any other statewide legislation that would aid local governments in becoming more efficient and effective in paying their employees.
Chairperson Brownlee introduced Kathleen Olsen, Kansas Bankers Association, to give her testimony as a proponent of HB 2316. She presented written copy. (Attachment 10) Ms. Olsen stated the Kansas Bankers Association is in support of the bill and urged the Committee to vote favorably.
Chairperson Brownlee introduced Kim Winn, League of Kansas Municipalities, to give her testimony as a proponent of HB 2316. She presented written copy. (Attachment 11) Ms. Winn stated authorizing the use of electronic transfers will save time and money at the local level. LKM strongly supports the use of technology to provide government services in a more efficient manner.
Chairperson Brownlee introduced Robert Mackey, Director, Division of Accounts & Reports, Department of Administration to give his testimony as a proponent of HB 2316. He presented written copy. (Attachment 12) He stated the Department of Administration would like to offer an amendment to HB 2316. He stated the balloon would bring consistency between the statute governing payment for state employees with the statute that covers all other employers within the state.
Chairperson Brownlee introduced Secretary Garner, Department of Labor, to give his testimony as a neutral party of SB 2316. (Attachment 13) Secretary Garner stated Department of Labor would like to offer an amendment to this bill to allow KDOL to use debit cards for the payment of unemployment insurance benefits.
Chairperson Brownlee called the Committee’s attention to the written only proponent testimony of:
Ron Hein, Kansas Restaurant and Hospitality Association (Attachment 14)
Carol Gonzales, City Manager, City of Shawnee (Attachment 15)
Marlee Carpenter, KCCI (Attachment 16)
Patrick Salmans, Vice President of Human Resources, Sunflower Bank, N.A., Salina (Attachment 17)
Questions for the proponents and discussion followed.
Senator Emler made a motion to adopt the amendment offered by the Department of Labor allowing them to use the debit cards for the payment of unemployment insurance benefits. Senator Reitz seconded. Motion carried.
Senator Emler made a motion to adopt the amendment offered by the Department of Administration, bringing consistency between the statute governing payment for state employees with the statute that covers all other employers within the state. Senator Jordan seconded. Motion carried.
Senator Jordan made a motion to pass HB 2316 out of the Committee favorably as amended. Senator Emler seconded. Motion carried.
Chairperson Brownlee announced that SB 342 would be worked in the Committee meeting on Tuesday morning, March 20th.
Chairperson Brownlee adjourned the meeting at 9:28 a.m. with the next scheduled meeting for Tuesday, March 20th at 8:30 a.m. in room 123 S.