Senate approves bill increasing reporting and review of federal aid; critics say it would create unconstitutional committee veto

On third and final reading the Senate adopted House Bill 10 92, legislation that imposes expanded reporting and review requirements for federal aid to state departments.

Senator Watson, sponsor of the finance amendment on the floor, told colleagues the bill requires state departments to report annually to a joint committee on ways and means how federal funds were used, how much remains unspent, and if any aid was returned. The bill requires a summary of proposed federal aid be submitted to the joint committee before acceptance, along with an analysis of short- and long-term budget impacts and the percentage of the department budget funded by federal aid. Watson said certain programs — including Medicaid, higher education institutions, local governments and emergency funds — are exempt from the added oversight.

Senator Yarborough led the opposition on constitutional grounds. He argued the bill would empower a small subset of legislators to exercise a binding control over executive-branch decisions to accept federal funds and called that approach “flatly unconstitutional.” He referred to attorney-general opinions and state jurisprudence that, he said, reject a committee veto. "This legislation proposes to do is flatly unconstitutional," Yarborough said. He urged senators not to pass a measure the state may be sued over.

After floor debate, the clerk announced the result and the presiding officer declared the bill passed.