Legislature(1999 - 2000)
04/14/2000 03:25 PM Senate RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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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