Members, the House Committee on Rules will come to order. The Chair thanks the members and guests for their attendance today. Pleased to welcome our Pages Mr. Allen, Mr. Griffin, Mr. Johnson and Mr. O'shea[sp?] thank you for being with us. Thank you to our Sergeant-at-Arms staff and our central staff for their support. The matter before the Committee today is a proposed Committee Substitute to House Bill 97. Is there objection to the proposed Committee Substitute to House Bill 97 being before the committee? Seeing none, it is so ordered. Members, this is the order in which we will proceed today, it's the Chair's intent to recognize central staff who will direct the members and those listening to this conversation to the page and line numbers that are changed in this PCS from the PCS that was adopted yesterday afternoon. after the staff goes through and identifies all of the sections, then we will turn it back over to the members as far as trying to explain before we answer questions about the policy otherwise. We'll go as quickly as we can, and we'll start with Mr. Bostic. Good afternoon Richard Bostic, Fiscal Research. I'm going to work. The Chair sincerely apologizes, the Chair directs the Sergeant-at-Arms to distribute the proposed Committee Substitutes. Representative Howe, I thought your staff was mighty small there, my apologies. Mr. Chair Members the chapel read that all the members present in the room have been given a printed copy of the proposed committee substitute before us the chair would also point out that this was emailed out to all members of the rules committee, to the members of house of representatives and if not it will be shortly to the Presco, so with that it's the chair's attention to proceed with staff providing quick technical direction of what is changing this PCS and then we will discuss those changes Mr. Bast OK, Now look at your money report turn to page one, The General Fund Availability Statement at line 11 Film and Entertainment Grant Funds that has been reduced to 60 million to 40 million in the past year the second year for the Grant Funds is found on page L2 item eight and that item has been reduced by 20 million L2 item 8 is the second part of the grant files, so both years has been reduced by 20 million and that will drop to the bottom line we have an increase on the balance remaining on line 54 page one an increase of 138 to 158 million Okay I'm sorry.
Chair the first time representative Floyd Representative Ben Gardner. Yes sir. Would just start over. Yes sir right so general page one general availability statement dominate attainment grant funds in 15 16 is reduced from 60 to 40 million. In the second year the grant funds is found on page L2 item eight. LT item eight, that's been reduced by 20 million. Okay the next you won't see it because we have taken out the RND touch credit extension that was about 44 million, that's been removed from your availability, so stays to 44 million in the second year that will drop to the bottom of the balance remaining. so in total you have an increase in the first year of your account balance went from 138 to 158 million then you have a gain of about 84 million in the second year because it was around 22 I think and it went to one over 6.9. So those are the big dollar changes and we'll have more to tell on a smaller change next with Chris Noster. Well [xx] question on fiscal research. The change in the [xx] education forcing the bill begins on page F9, this is within the community college section of the budget. You find items 55, innovative pilot program. This item was reduced by 500000 nonrecurring and each of 15, 15 and 16, 17. If I can direct you to page F14 they knew item number 90 to expand the sessional education scholarship program with 500000 dollars of non recurring funds in each of 15, 16 and 16, 17. If their are no questions I will turn over to [xx] to cover the transportation changes Representative Blast, quick question this is a they are explaining whats in a proposed amendment of this version is that what you want, No Representative Blats this should be, the reason you were going through this extra staff is that as you have the actual proposed substitute before you changes from the old one would not be underlined or it's easy to identify so we are just going, so this are changes in this new version? Yes sir, this are changes that have been incorporated from the last PCS into this PCS, Representative Torbett. Thank you Mr. Chair you've added 90 can you tell me the genesis or the origin of that the addiation of 90 Members we would you hold that inquiry let's get through the technical presentation and then we will present. Thank you Mr. Chair and good afternoon committee price fall of fiscal research, if you'll turn your money report to page K4. K4 within the transportation section highway fund section specifically, item number 27 in adjustments to revenue availability. What are you talking about? HK4 item number 27, again this item needs an adjustment to revenue availability within the highway fund it reduces the proposed increase of DMVP which was across the board by 50% instead this item increases at least 30% that changes affects January 1st 2015 and the Revenue Association with this increase is projects 76.1 million high in the first year and 172.2 million in the second year and that represents decrease from the prior version of the bill of $56.9 million within the highway fund. You'll see corresponding adjustments so item number 17 on page K2, the Contract Re-servicing Allocation, and a corresponding reduction as well on page k4 item
number 32 to North Carolina State Port Authority allocation. This adjustment also has implications for the Highway Trust funds availability you will see that summary on pageK6 item number 36 within the body of the provision their temporally distribution changes. And that is the reason for the impact to the Highway Trust Fund. It is an additional reduction of 8.5 Million in the first year, and 14.3 million in the second year. Now if you'll turn to the body of the Bill. On page 241 section 29.1 at the top of the page. It's all in plain language, but it sets out the cash flow projections for next four fiscal years beyond the biennium, this has been updated base when this bill dirty changes that have just described. As well on page 261, section 29.3, this section outlines it illuminates all of the individual rates that where affected by the across the board increase to the MVP, I will note that their is no change in this adjustment. To section 2913, that is on page 265, that language is identical 265, Section In. The language is identical to the prior version [Blank] N Members we`re going to go back now, representative Torbit was going to allow the gentleman to get his files to Representative Torbit is recognized to propose to counter the question representative Stem or representative Johnson. thank you Mr. Chair just retaliating other questions. Out of 90 [xx] I was asking requirement through its origin or Mr. Chair can I respond? Respond. It's not a new scholarship, its been their for several years the Governor in his recommended budget under UNC, item seven, it recommended an increase of 2.1 million sort of I guess increase for the ones already through a series of whatever oversights that was left out so this is partially doing the moment increase for that hopefully in the rest of the budget process the other 1.6 million will be added somewhere but this is what could be done now but it is not a new program it's existence. Follow up The gentleman is recognized Thank you Mr. Chair did I hear this is just a partial and that it's not the entire planning, is that what I'm hearing? That's correct. So we're partial. Follow up Mr. Chair. The gentleman is recognized. Just want to be clear the existing, the clerk rise the clock here stop 4.36 million, so this could get it up to 4.8 and it needs to go up another 4.6 at some point hopefully that will happen. Last follow up question this was hearing many I'm assuming it wasn't in previous version of the budget. Mr, Torbit my I direct this to Representative Josh who is the primary sponsor to the bill? We've had this program for sometime and it turns out it's services, the children wail the advanced protocol and the system at a public school system save money by doing this the appropriation was agreed upon, it was just somehow between tax of a three month in the sub chair it would overlook that the item wasn't in there. It's not that anyone in the firm room or in the sub committee has a problem with it. Thank you Miss Chair lady, next clear is the gentleman Members if the Chair could direct your attention please to page 315 lines 12-23 our staff work diligently to
prepare all the documents that member has requested all our mater and substantial amount, however the language contains on page 315 lines 12-23 dealing with and airline tax credit because not need to be in the budget it's already contained in house bill 117 and the provisions on that should that 117 become law already reserved therefore the chair is going to send forward an amendment to strike to amend the bill on page 315 lines 12-23 by the reading those lines is there discussion or debate on amended? Representative [xx] That was in 117 now if you remember directly out of this document No representative Blust its the Chair's understanding that this little appeared as a ghost it was in the finance package that was discussed on Monday it was not in the appropriations package that was discussed on Tuesday it just appeared and staff the Chair was going to ask that it be considered a truly technical amendment and there are so many lines involved staff build it more prudent to run it as an actual amendment to the bill. there will be no discussion or debate, those in favor of the amendment will say aye. Aye. Those opposed will say no, in the opinion of the chair the ayes have it and the amendment is adopted. Members it was the intention of the chair and the direction of the rules to that the changes that you've all heard, be aired and that they be placed into a new committee proposed substitute so that the house may begin its debate at this afternoon. If we represent Bail moves that the committee substitute to house bill 97 has amended the load into a new committee substitute. Favorable with pro as to the committee substitute unfavorable as to the original bill, and furthermore the staff be authorized to make [xx] corrections and also conforming changes related to reconciling the various amendments adopted. Representative Stam, for what purpose? This is a procedural question before you, only adopting one amendment then you report this out with the pending amendment and say another step? The gentleman asked a very good question that the chair posed as well. However, the Chair has been assured by our central staff that since this was not in the earlier versions of the bill, it's not a problem just to take it out so that the members page and line numbers and what not for, our amendments will actually match up more properly. So, and the Chair has also been assured that that can be done in very very short order so that the amended PCS can be on the dashboard. Further discussions, further debate on the motion from the gentleman from Wayne, Representative Carney? The tax credit dint work out [xx], the tax credit has already passed the house in 117, there's not changing of that. Should 117 become law, the money is set aside for that but it doesn't need to appear in the budget bill. Rep. Floyd [xx] Further discussion further debate, but on the motion general from whine[sp?] the question before the committee he has the motion by representative Bailey to give the purpose committee substitute to house bill 97 as amended a favorable report and unfavorable to the original bill and further will the staff be authorized to make technical corrections and also confirming changes related to reconciling to various ammends they may have been adaptted All who favor the motion will signify by saying Aye. Aye. All opposed will signify by saying No. No. In the opinion of the Chair, the Ayes have it, the motion carries. The bill will be reported favorably, and the Chair thanks all the members for their attendance.