Legislature(1999 - 2000)

04/14/2000 03:25 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
          HB 116-BOARD OF AGRICULTURE AND CONSERVATION                                                                      
                                                                                                                                
CHAIRMAN HALFORD announced the committee  would take up HB 116 and                                                              
that a series of amendments had been prepared.                                                                                  
                                                                                                                                
The committee took a brief at-ease from 3:30 to 3:32 p.m.                                                                       
                                                                                                                                
CHAIRMAN HALFORD  informed committee members that  the sponsor had                                                              
prepared three amendments to HB 116.                                                                                            
                                                                                                                                
SENATOR  MACKIE moved  to adopt  Amendment  1 for  the purpose  of                                                              
discussion.  There being no objection, Amendment 1 was adopted.                                                                 
                                                                                                                                
BARBARA COTTING,  staff to Representative Jeanette  James, sponsor                                                              
of HB  116, informed committee  members that the  three amendments                                                              
are  the  result   of  a  subcommittee  meeting   held  yesterday.                                                              
Amendment 1 deals  with the ethics portion of the  bill.  It gives                                                              
the Board authority  to establish standards for  loans but removes                                                              
the Board's  authority to make  final decisions on  granting those                                                              
loans.   The amendment  will remove any  conflict of  interest and                                                              
allow board members to have loans.                                                                                              
                                                                                                                                
CHAIRMAN HALFORD  asked who will  make the final  determination of                                                              
which applicants get a loan.                                                                                                    
                                                                                                                                
MS. COTTING replied the loan officer  will in conjunction with the                                                              
director.                                                                                                                       
                                                                                                                                
CHAIRMAN   HALFORD  asked   if  the   agricultural  community   is                                                              
comfortable with that much power resting in the director.                                                                       
                                                                                                                                
MS.  COTTING  replied  yes,  for   that  particular  part  of  the                                                              
function.                                                                                                                       
                                                                                                                                
SENATOR MACKIE  asked if the  subcommittee discussed the  issue of                                                              
finding people to  serve on the board since most  qualified people                                                              
will have members of their families involved in agriculture.                                                                    
                                                                                                                                
SENATOR GREEN stated  this board was modeled after  the Commercial                                                              
Fishing and Agriculture Bank (CFAB).                                                                                            
                                                                                                                                
SENATOR TAYLOR  asked if  the board  will establish the  standards                                                              
and criteria upon which a loan may  be granted, rather than decide                                                              
who will get a loan.                                                                                                            
                                                                                                                                
SENATOR GREEN said that is correct.                                                                                             
                                                                                                                                
SENATOR  LINCOLN  asked  if her  concern  about  immediate  family                                                              
members was  removed.  She  also asked to  hear from the  staff at                                                              
the Department of  Natural Resources (DNR) and  asked whether they                                                              
were advised of the changes.                                                                                                    
                                                                                                                                
SENATOR GREEN said DNR staff were advised and given copies.                                                                     
                                                                                                                                
CHAIRMAN  HALFORD asked  Mr. Wells  to  address the  first of  the                                                              
three amendments.                                                                                                               
                                                                                                                                
MR. ROB  WELLS, Director  of the  Division of Agriculture,  stated                                                              
his understanding of the intent of  this legislation was to invest                                                              
more power in the  board.  He said he thinks the  language on page                                                              
3 of  the bill  that says, "may  employ staff  as directed  by the                                                              
board as responsible  for the daily operations  of the Agriculture                                                              
Revolving Loan Fund" could create a potential conflict.                                                                         
                                                                                                                                
SENATOR LINCOLN asked  Mr. Wells whether DNR supports  Amendment 1                                                              
and, if not, what DNR's concerns are.                                                                                           
                                                                                                                                
MR.  WELLS  said he  has  not had  a  chance  to confer  with  the                                                              
Commissioner  on   the  amendments.    [His  next   statement  was                                                              
inaudible.]                                                                                                                     
                                                                                                                                
SENATOR MACKIE  asked Mr.  Wells what his  concern is.   He stated                                                              
many questions regarding conflicts  of interest were raised at the                                                              
last hearing and that Amendment 1  takes the approval of loans out                                                              
of the board's hands.                                                                                                           
                                                                                                                                
MR. WELLS  said the board will  direct the director  regarding the                                                              
daily operations of the fund.  The  board is still responsible for                                                              
the  disposal of  the assets  of the  Agricultural Revolving  Loan                                                              
Fund and  will write  regulations that address  the loans  and the                                                              
disposal of assets.  Therefore, just  because the board is removed                                                              
from  the actual  vote  does  not mean  it  is not  directing  the                                                              
director.                                                                                                                       
                                                                                                                                
Number 864                                                                                                                      
                                                                                                                                
CHAIRMAN HALFORD asked Ms. Hickerson to comment.                                                                                
                                                                                                                                
MS.  ELIZABETH HICKERSON,  Assistant  Attorney  General, said  the                                                              
Department of  Law still  has concerns.   The Legislature  has the                                                              
ability  to  totally  exempt  boards   and  commissions  from  the                                                              
Executive Ethics Act.   This amendment  provides that the director                                                              
will now make  the loans.  Therefore,  a board member could  get a                                                              
loan yet the  board member directs the director  which creates the                                                              
potential for abuse regarding the  loan.  She stated Section 16 is                                                              
problematic  because under  that  section, the  board disposes  of                                                              
property.  The  board is not restricted from  purchasing property.                                                              
A  board member  could  play a  major  role in  determining  which                                                              
parcel will be disposed  of and when and how it  will be disposed.                                                              
The board  member could  actively participate  in drafting  an RFP                                                              
and then  submit a proposal and  be awarded the property  and have                                                              
the board  approve it.   She thought  that to  be one of  the true                                                              
forms of conflict of interest.                                                                                                  
                                                                                                                                
SENATOR GREEN  asked Ms. Hickerson  which version of the  bill she                                                              
was working from.                                                                                                               
                                                                                                                                
MS. HICKERSON  said the version  she received from  Representative                                                              
James' office this morning.                                                                                                     
                                                                                                                                
SENATOR GREEN asked Ms. Hickerson  if she was working from Version                                                              
Q.                                                                                                                              
                                                                                                                                
MS. HICKERSON said she was.                                                                                                     
                                                                                                                                
CHAIRMAN HALFORD announced that the  committee would recess to the                                                              
call of the  Chair to allow  Senators to attend the  floor session                                                              
and to allow time  for more work to be done on the  bill.  He then                                                              
recessed the meeting at 3:43 p.m.                                                                                               

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