Approved:       4-27-07           

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE

The meeting was called to order by Chairperson Karin Brownlee at 8:30 A.M. on March 23, 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

Norm Furse, Revisor of Statutes

Jackie Lunn, Committee Assistant

Conferees appearing before the committee:

Others attending:

See attached list.

SB 193-State debt limitations and procedures

HB 2504-Borrowings for the state and state agencies.

Chairperson Brownlee announced that Ways and Means were not going the work to debt affordability bill, SB 193, and she suggested the Committee should put SB 193 into HB 2504. She introduced Jason Long, Revisor, to explain an amendment for SB 193. (Attachment 1)

Mr. Long explained the amendment for the Committee. On page 1 line 25 through line 38, adding the following language, starting language with the words “In order to”. “In order to implement this policy, the legislature desires to authorize the issuance of additional state tax-supported debt only when such authorization would not cause the ratio of debt service to revenue available to pay debt service on tax-supported debt to exceed 6%. If the 6% target debt ratio will be exceeded, the authorization of such additional debt must be accompanied by a legislative statement of determination that such authorization and issuance is the best interest of the state and should be implemented.”

Also on page 1, line 40, striking “conduct a debt affordability analysis each year” and adding in its place “submit” making (b) to read “The Kansas department of administration and the Kansas development finance authority jointly shall submit an affordability report each year to assist the governor and the legislature in setting priorities amount capital projects and related appropriations.”

On Pages 2 and 3 adding “,or any other fund or revenues of the state and state agencies,” where appropriate.

Upon the conclusion of Mr. Long’s explanation of the proposed amendment, a discussion followed. The Committee expressed their concern that Ways and Means is not working the bill. Senator Jordan stated the bill should be passed out of the Committee today and they can work out any concerns on the Senate floor. Senator Kelly has concerns that Duane Goossen, Budget Director, had not seen the amendment for the bill and would like to know if it alters his position on the bill. The Committee dialogued about other concerns expressed by Senator Kelly.

Chairperson Brownlee requested the staff email a copy of the proposed amendment to Duane Goossen, Budget Director and Steve Weatherford with the KDFA.

Senator Jordan moved to gut HB 2504 and add SB 193 including the proposed balloon and make it a substitute bill. Senator Emler seconded. Motion carried.

Senator Jordan made a motion to move the substitute bill for HB 2504 out favorably as amended. Senator Emler seconded. Motion carried.

Chairperson Brownlee called the Committee’s attention to testimony from Diana Wieland, Curriculum Director, Colby Public Schools regarding the Empowered Desktop by Kan-ed. (Attachment 2)

Chairperson Brownlee adjourned the meeting at 9:30 a.m. with no other meetings scheduled for this session.