Committee action, Jun. 1: SB 122, SB 202, SB 259, SB 260

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SB 122 by Sen. Robert Adley would amend the Constitution to increase the cap on money from mineral revenues, where the excess flows to the Budget Stabilization Fund, by $100 million. He reminded the House Appropriations Committee that every decade this can be changed, meaning that more money can directed to state spending. Last year was the first year the cap was eligible to be increased. This he said, through other legislation, could shunt money to transportation needs. This he considered important because while statute would begin taking money from vehicle fees and dedicating it to transportation, it is now estimated that 2020 would be the earliest the benchmarks would be hit to permit this. In the interim, this bill could provide money for this need. After brief discussion and amendment to change the effective date, without objection it was reported favorably.

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SB 202 by Adley would amend the Constitution to change the BSF so that funding past $500 million that the Constitution directs to the BSF currently could be used for transportation needs. He said by fixing this cap some money would not sit idly by, waiting on appropriation that needs certain conditions to trigger, but could be put to work on a major concern. Without objection it was reported favorably.

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SB 259 by Adley was the enabling legislation for SB 202. Without objection it was reported favorably.

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SB 260 by Sharon Weston Broome, as explained by co-author Sen. Dan Claitor, would place more legislative control over the process of rate-setting by the Office of Group Benefits. A group would have to recommend a rate structure for benefits offered made by another group. Further, oversight and approval of the rates would come at the hands of appropriate standing committees, although he clarified this would not include vendor contracts outside of benefits offered such as actuarial, professional, or legal contracts.

In response to questioning by Chairman Jim Fannin, he said he preferred legislative oversight than by either group because legislators were elected. Rep. Rob Shadoin suggested the model used in Rep. Chris Broadwater’s HB 370 that set up yet another independent body of elected and appointed officials and their representatives to have approval power. Fannin said there was conflict between the two bills and this needed to be worked out. Shadoin asked whether HB 370 could be read into SB 260, but Claitor said he needed to consult with Broome. They agreed to get together on the issue, although Claitor perceived that the Gov. Bobby Jindal Administration looked more favorably on his version than the other.

The bill was moved favorably without objection.