Legislature(1993 - 1994)
05/10/1993 09:15 AM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
SB 154 An Act relating to the economic development grant program; and providing for an effective date. HCS CS SB 154 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Department of Administration dated 3/19/93. SENATE BILL 154 "An Act relating to the economic development grant program; and providing for an effective date." Representative Brown provided the Committee with a copy of Amendment #1 [Attachment #1]. The amendment would require the legislation to have an economic feasibility analysis for each project. Representative Brown MOVED Amendment #1. SENATOR GEORGE JACKO did not understand how direct costs to the State could be estimated. Representative Hanley recommended changing the language on the amendment, Section (6) by deleting "amount of direct and indirect" and also "generated" and inserting "incurred". The sentence would end after the word "project". Senator Jacko thought Section (6) would preclude the smaller communities from applying due 1 to a lack of technical expertise. Representative Brown pointed out that private industry will be involved with the projects and they would have the expertise. Representative Brown MOVED the change to the amendment proposed by Representative Hanley. Representative Brown pointed out that the change would cause an additional deletion on Page 2, Line 18 and Page 2, Line 19, within information specified in Amendment #1. There being NO OBJECTION to the amended amendment, it was adopted. Representative Brown advised that "feasibility" was not adequately addressed in the legislation. Discussion followed regarding the "feasibility" aspect of the bill. Representative Hanley pointed out that Section 1, Subsections (1) - (6) address the specifics of analysis necessary for the legislation. Representative Grussendorf reminded the Committee of previous mistakes made by the State in determining the "economic feasibility" of various projects. Senator Jacko refuted previous discussion, pointing out that Subsection (2) Page 2, Lines 9-10 would clarify the feasibility of projects. He added, he was not comfortable requiring the additional language in the bill. Representative Hanley MOVED all the proposed changes to Amendment #1. (Tape Change, HFC 93-137, Side 2). Representative Brown agreed to the changes. There being NO OBJECTIONS, it was so ordered. Representative Brown MOVED Amendment #1 as amended. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED to report HCS CS SB 154 (FIN) out of Committee with individual recommendations and the accompanying fiscal note. Co-Chair MacLean OBJECTED for the record. She remarked that the legislative process had been circumvented with regard to specific items placed in the capital budget before the bill was passed from Committee. Co-Chair MacLean WITHDREW HER OBJECTION. Representative Martin OBJECTED to reporting the bill out of Committee. Representative Brown asked why the fiscal note would be administered through the Department of Administration (DOA). She commented that the function of determining the economic feasibility should be handled through the Department of Commerce and Economic Development (DCED) or the Department of Community and Regional Development (DCRA). 2 SHELBY STASTNY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, noted the concept of the legislation was to administer a grant which is the responsibility of DOA and the explanation of the distribtion would be the responsibility of the Office of Management and Budget. A roll call was taken on the MOTION to report the bill from Committee. IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, MacLean. OPPOSED: Martin. Representatives Hanley and Larson were not present for the vote. The MOTION PASSED, (8-1).