Legislature(1999 - 2000)
05/04/1999 01:55 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 40
An Act combining parts of the Department of Commerce
and Economic Development and parts of the Department of
Community and Regional Affairs by transferring some of
their duties to a new Department of Commerce and Rural
Development; transferring some of the duties of the
Department of Commerce and Economic Development and the
Department of Community and Regional Affairs to other
existing agencies; eliminating the Department of
Commerce and Economic Development and the Department of
Community and Regional Affairs; relating to the
Department of Commerce and Rural Development and the
commissioner of commerce and rural development;
adjusting the membership of certain multi- member
bodies to reflect the transfer of duties among
departments and the elimination of departments;
creating the office of international trade and relating
to its duties; and providing for an effective date.
MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, spoke
to Amendment #11. [Copy on File]. He explained that the
amendment would change a section of the bill which indicates
that the commissioner of the board may designate and
additional person.
(Tape Change HFC 99 - 117, Side 2).
Mr. Tibbles continued that if the commissioner is not able
to sit in on a meeting, he must designate someone else from
the Department to be present, and that person can not be a
public member.
Co-Chair Therriault MOVED to adopt Amendment #11. There
being NO OBJECTION, it was so ordered.
Co-Chair Therriault MOVED to adopt Amendment #12. [Copy on
File]. Mr. Tibbles explained that the amendment would add a
new subsection to the duties of the new department. The
amendment would insure that there is clear statutory
authority for the CDQ program as authorized by the federal
government. There being NO OBJECTION, it was adopted.
JACK KREINHEDER, SENIOR POLICY ANALYST, OFFICE OF MANAGEMENT
AND BUDGET, advised that the Administration does support the
adopted amendments.
Ms. McConnell spoke to the new fiscal note by the Office of
Management and Budget. She pointed out that the primary
savings would be to the out years. The note shows the known
personnel cost reductions during the initial implementation
year. Further reductions are anticipated after all
organizational changes are completed, which will be
reflected in the FY2001 operating budget.
The fiscal note indicates initial capital implementation
cost of $200 thousand dollars, a minimal amount for some
employee movement to bring units together and necessary
changes to computer/telephone configurations. She added
that additional funds will be needed in the second year.
Also included is a $200 thousand general fund replacement of
federal receipts in Rural Energy component.
Ms. McConnell stated that Sec. 78(e) specifies that
appropriations are to be transferred with the programs being
relocated; all program funding is currently contained within
the operating budget. The cost savings indicated above are
based on the following:
* There will be one less Commissioner and Executive
Secretary;
* The vacant Administrative Services Director
position (DCRA) will be deleted; and
* Other administrative support costs will be reduced
by downgrading or eliminating other positions.
Co-Chair Therriault voiced concern that the fiscal costs had
increased to $200 thousand dollars. He requested a further
breakdown from the Administration regarding the increased
costs. He noted that there would be plenty of time to make
adjustments to the fiscal note; he did not want to hold the
bill in Committee.
Representative Kohring MOVED to report CS HB 40 (FIN) out of
Committee with individual recommendations and with the
accompanying new fiscal note. Representative J. Davies
OBJECTED for the purpose of making a comment.
Representative J. Davies advised that many of the changes
incorporated into the bill make sense, however, if the
primary savings is the elimination of a Commissioner, that
should not be regarded as "efficiency in government", but
rather a reduction in government services. He stated that
all the commissioners perform great services to the people
of the State and that some services will be lost with this
consolidation effort. There will be less emphasis on some
of the elements that the Department of Commerce and Economic
Development and the Department of Community and Regional
Affairs had before. He reiterated that this is a "reduction
in government but not greater efficiency within the system".
Representative J. Davies WITHDREW his OBJECTION to the
motion to move the bill. There being NO further OBJECTIONS,
it was so ordered.
CS HB 40 (FIN) was reported out of Committee with "no
recommendation" and with a fiscal note by the Office of
Management and Budget,
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