04/27/2001 02:00 PM House FIN

HOUSE BILL NO. 51                                                                                                             
                                                                                                                                
     "An Act giving  notice of and approving  the entry into,                                                                   
     and the  issuance of certificates of  participation for,                                                                   
     a  lease-purchase  agreement  for  a  seafood  and  food                                                                   
     safety  laboratory   facility;  and  providing   for  an                                                                   
     effective date."                                                                                                           
                                                                                                                                
MIKE  TIBBLES, STAFF,  REPRESENTATIVE  WILLIAMS reviewed  the                                                                   
proposed  committee substitute,  work  draft 22-LS  GH1012\C,                                                                   
Bannister, 4/27/01 (copy on file.)   He noted that there is a                                                                   
new  mechanism for  financing  and a  reduction  of the  bond                                                                   
issue  by $2  million  dollars.  He observed  that  equipment                                                                   
purchases  were   reduced  by  $375  thousand   dollars.  The                                                                   
reduction  included: $280  thousand dollars  in deferment  of                                                                   
ventilation  upgrades,  $200 thousand  dollars  (in  reduced)                                                                   
administrative  space, $115 in  (reductions) in  the shipping                                                                   
and  handling  area, $150  thousand  dollars  in other  space                                                                   
(reductions)  including  bathrooms   and  lockers,  and  $878                                                                   
thousand  dollars (reduction)  in  investment  income on  the                                                                   
sale  of the  bonds.  Debt service  was  also  reduced to  $1                                                                   
million dollars annually, subject to appropriation.                                                                             
                                                                                                                                
In  response to  a  question  by Representative  Hudson,  Mr.                                                                   
Tibbles noted  that the  difference in  debt service  of $220                                                                   
thousand dollars  a year is  due to the  reduced size  of the                                                                   
sale of  the bonds,  from reductions  of the actual  facility                                                                   
and investment earnings.                                                                                                        
                                                                                                                                
Representative  Lancaster MOVED to  report CSHB 51  (FIN) out                                                                   
of Committee with  the accompanying fiscal note.  There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
CSHB 51 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation  and  with  two  previously  published  fiscal                                                                   
impact notes  (#1 and #2),  and a new  fiscal impact  note by                                                                   
the Department of Revenue.