Legislature(1993 - 1994)

04/25/1993 12:10 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 124                                                           
                                                                               
       "An  Act relating  to  grants to  municipalities, named                 
       recipients,     and     unincorporated     communities;                 
       establishing  capital  project matching  grant programs                 
       for  municipalities  and   unincorporated  communities;                 
       establishing  a  local  share requirement  for  capital                 
       project grants to municipalities, named recipients, and                 
       unincorporated  communities;  and   providing  for   an                 
       effective date."                                                        
                                                                               
  Co-Chair MacLean provided  members a with work  draft for HB
  124  (FIN),  8-GH1018\O (copy  on  file).   Co-Chair MacLean                 
  provided  members  with  AMENDMENT 1  (Attachment  1).   She                 
  explained that  Amendment 1 would create a sliding scale and                 
  change 8 percent  to 7 percent.   Co-Chair MacLean MOVED  to                 
  ADOPT AMENDMENT  1.   There being  NO OBJECTION,  it was  so                 
  ordered.                                                                     
                                                                               
  Representative  Brown  presented  members  with AMENDMENT  2                 
  (Attachment 2).  Amendment 2  would define "capital project"                 
  as a project with a cost exceeding $10.0 thousand dollars...                 
  with  an  anticipated  life  exceeding  one  year..."    She                 
  suggested that  the Amendment  be amended  to $5.0  thousand                 
  dollars a year over two years.                                               
                                                                               
  SHELBY STASTNY, DIRECTOR,  OFFICE OF  BUDGET AND  MANAGEMENT                 
  did not  have objections to Representative Brown's amendment                 
  or amendment to  the Amendment.   Co-Chair Larson  expressed                 
  concern that  school districts and municipalities  would use                 
  the matching grant for deferred maintenance.  Representative                 
  Martin  expressed  concern  that the  $5.0  thousand  dollar                 
  eligibility requirement would result in more  administrative                 
  costs.                                                                       
                                                                               
  Representative  Parnell asked if  the Internal  Revenue Code                 
  definition  of  capital project  would  apply.   Mr. Stastny                 
  replied  that the  Internal  Revenue Code  defines  "capital                 
  project" as  any expenditure that  is expected to  last more                 
  than   a  year  and/or   extend  the   life  of   an  asset.                 
  Representative  Grussendorf  noted  that  the definition  of                 
  capital project contained in Amendment 2 would only apply to                 
  the Capital Matching Program.                                                
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Co-Chair  Larson  stressed  that  municipalities can  handle                 
  smaller maintenance projects.  Representative Brown asserted                 
  that small communities need flexibility.                                     
                                                                               
  Representative Brown MOVED  to AMEND  Amendment 2 to  insert                 
  "$5.0" and delete "$10.0" and  delete "one" and insert "two"                 
  years.  Representative  Martin OBJECTED.   A roll call  vote                 
  was taken on the motion.                                                     
                                                                               
  IN FAVOR: Parnell, Brown                                                     
  OPPOSED:  Grussendorf,  Foster,  Hanley,   Martin,  Parnell,                 
                 Therriault, MacLean, Larson                                   
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  Representative   Brown   MOVED   to   ADOPT   AMENDMENT   2.                 
  Representative Martin OBJECTED.  A  roll call vote was taken                 
  on the motion.                                                               
                                                                               
  IN FAVOR: Therriault, Brown, Foster, Grussendorf, MacLean                    
  OPPOSED:  Martin, Parnell, Hanley, Larson                                    
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (5-4).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  3                 
  (Attachment  3).   She  explained  that the  Amendment would                 
  acknowledge that the state is  not responsible for operation                 
  of projects.  She discussed Amendment  3.  Members discussed                 
  the   affect   of   the   amendment   on  CSHB   82   (FIN).                 
  Representative Brown WITHDREW AMENDMENT 3.                                   
                                                                               
  Co-Chair MacLean expressed concern that  page 4, line 20 and                 
  23 needs further  clarification to  identify money spent  as                 
  capital matching money.                                                      
                                                                               
  JACK FARGNOLI, OFFICE  OF MANAGEMENT  AND BUDGET, OFFICE  OF                 
  THE GOVERNOR  observed that  language should  be adopted  to                 
  define that "10 percent  of the total amount of  money spent                 
  on land acquisition" applies to  the appropriation or grant.                 
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  4                 
  (Attachment 4).  She explained that Amendment 4 will clarify                 
  that no more than  10 percent of state money will  go to the                 
  administrative cost for the  whole project.   Representative                 
  Brown MOVED to ADOPT AMENDMENT 4.  There being NO OBJECTION,                 
  it was so ordered.                                                           
                                                                               
                                4                                              
                                                                               
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  5                 
  (Attachment 5).  She explained that Amendment 5 will forward                 
  fund the program.  The Office of Management and Budget would                 
  have   the   summer   months   to   establish   regulations.                 
  Representative Brown MOVED  to ADOPT AMENDMENT 5.   Co-Chair                 
  MacLean OBJECTED.  A roll call vote was taken on the motion.                 
                                                                               
  IN FAVOR: Brown                                                              
  OPPOSED:  Grussendorf,  Navarre,  Hanley,  Martin,  Parnell,                 
                 Therriault, MacLean, Larson                                   
                                                                               
  The MOTION FAILED (8-1).                                                     
                                                                               
  Representatives Foster and Hoffman were  not present for the                 
  vote.                                                                        
                                                                               
  Representative Brown MOVED to ADOPT AMENDMENT 6  (Attachment                 
  6).  She MOVED to AMEND the Amendment to delete "originally"                 
  and "insert or other assets".  She stated that the amendment                 
  to Amendment 5 would allow  equipment obtained through state                 
  grants to  be sold.   There  being NO  OBJECTION, it  was so                 
  ordered.  Representative Brown MOVED to ADOPT AMENDMENT 5 as                 
  amended.  Co-Chair Larson spoke in support of the amendment.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Co-Chair   MacLean  provided   members   with  AMENDMENT   7                 
  (Attachment 7).                                                              
                                                                               
  (Tape Change, HFC 93-125, Side 1)                                            
                                                                               
  Mr. Fargnoli explained that Amendment  7 is a "housekeeping"                 
  amendment which  clarifies the definition of  "local share".                 
  Co-Chair MacLean MOVED to ADOPT AMENDMENT 7.                                 
                                                                               
  Co-Chair  Larson  asked who  would  be responsible  for cost                 
  overruns.  Mr.  Stastny stressed that each community has the                 
  option  of  investing  from  their  pool  of funds.    If  a                 
  community has money in their account the state would provide                 
  a match at the same ratios.                                                  
                                                                               
  Co-Chair MacLean referred  to fiscal  notes accompanying  HB
  124.  Mr. Fargnoli discussed fiscal notes for the Department                 
  of   Community   and   Regional   Affairs,   Department   of                 
  Administration and municipal impact.  He noted that matching                 
  requirements  will  add  to  administrative  costs  in   the                 
  Department of Community and Regional Affairs.                                
                                                                               
  Representative Navarre express concern  that the departments                 
  will  not  have  sufficient personnel  to  administrator the                 
  grants efficiently.  He asked  if Davis Bacon laws regarding                 
  pay scale cause difficulties.  Mr. Fargnoli assured him that                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Davis Bacon laws will not cause problems.                                    
                                                                               
  Representative  Grussendorf  asked   if  the  Department  of                 
  Transportation and  Public Facilities would  be involved  in                 
  projects.    Mr  Fargnoli  agreed  that  the  Department  of                 
  Transportation  and Public  Facilities could be  affected by                 
  projects but did not anticipate increased budget needs.                      
                                                                               
  Representative  Foster  MOVED  to  ADOPT  the  fiscal  notes                 
  associated with CSSB 88 (FIN) for as House Finance Committee                 
  fiscal notes for  HB 124.  There being NO  OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  Representative Martin  MOVED to report CSHB 124 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 124  (FIN)  was  reported out  of  Committee  with  "no                 
  recommendation" and  with a  zero fiscal  note by  the House                 
  Finance  Committee and with  two fiscal impact  notes by the                 
  House Finance Committee.                                                     
                                                                               
  Representative   Hanley   expressed   his  desire   to   see                 
  administrative costs deducted  from the grant.   Mr. Stastny                 
  observed that overhead costs for the capital matching grants                 
  are absorbed  in the  affected agencies'  budget.   Co-Chair                 
  Larson agreed that increased agency costs should be included                 
  in  the  grant  process.    He   stressed  that  it  is  the                 
  Committee's intent that costs be born by  the grant program.                 
  There being NO OBJECTION, CSHB 124  (FIN) was moved from the                 
  Committee.                                                                   

Document Name Date/Time Subjects