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).