NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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F I S C A L I M P A C T R E P O R T



SPONSOR: Pearce DATE TYPED: 02/23/99 HB 662/aHAFC
SHORT TITLE: Certificates of Indebtedness SB
ANALYST: Valenzuela


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
NFI NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



LFC Files

Department of Military Affairs



SUMMARY



Synopsis of HAFC Amendment



The House Appropriations and Finance Committee (HAFC) amendment to House Bill 662 adds an emergency clause, which would become effective as soon as the bill is signed into law.



Synopsis of Bill



House Bill 662 would increase from $100.0 to $250.0 the Adjutant General emergency public defense fund, which authorizes payment of salaries and necessary expenses, supplies, materials, etc., for the Department of Military Affairs, when the Governor calls the national guard into service.



Significant Issues



Emergencies in the past have focused attention on this issue, where national guardsmen and vendors have not been paid for their service in a timely manner. The problem was that the $100.0 cap, under the current statute, was exhausted relatively quick in face of extraordinary emergencies. The bill would increase the cap, allowing the department to process its financial obligations with fewer impediments.



FISCAL IMPLICATIONS



House Bill 662 does not contain an appropriation. The bill increases the cap by $150.0, but these funds are not subject to appropriation. The bill would not have a fiscal impact.



ADMINISTRATIVE IMPLICATIONS



The bill would not have an administrative impact. In fact, the bill would ease the administrative burden of the current statute.



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