05/11/2002 09:18 PM House FIN

CS FOR SENATE BILL NO. 359(RLS)                                                                                               
                                                                                                                                
     "An Act relating to organization grants for mergers,                                                                       
     consolidations, or unifications involving third class                                                                      
     boroughs; and relating to identification by the Local                                                                      
     Boundary Commission of areas that meet the standards                                                                       
     for borough incorporation."                                                                                                
                                                                                                                                
MARY JACKSON,  STAFF, SENATE  COMMUNITY AND REGIONAL  AFFAIRS                                                                   
COMMITTEE, provided information  on SB 359. The bill provides                                                                   
a change  in  statute to  allow consolidations  to receive  a                                                                   
grant from the state as do other  entities when they form new                                                                   
governments.  The  Senate  provided for  two,  $200  thousand                                                                   
dollar  grants: one  for each  of  the first  two years.  The                                                                   
Senate  Finance  Committee added  section  3  and the  Senate                                                                   
Rules  Committee  deleted  the second  $200  thousand  dollar                                                                   
dispersement.  The fiscal  note on the  legislation  would be                                                                   
$250 thousand dollars.  She observed that there  is a problem                                                                   
with section 3,  which was amended in the  proposed committee                                                                   
substitute.  The  sponsor  supports  the  proposed  committee                                                                   
substitute.                                                                                                                     
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT  proposed committee substitute                                                                   
22-LS1633\O,  5/11/02. There  being NO  OBJECTION, it  was so                                                                   
ordered.                                                                                                                        
                                                                                                                                
Representative Foster MOVED to  report HCS CSSB 359 (FIN) out                                                                   
of   Committee    with   the   accompanying    fiscal   note.                                                                   
Representative  Bunde observed  that he  has been  consistent                                                                   
with  not wanted  to expand  state funding,  but he  believed                                                                   
that  by allowing  consolidations  the residents  would  take                                                                   
more  local control  and  need less  state  funds. There  are                                                                   
opportunities in  statute for other size boroughs  and cities                                                                   
to consolidate. There being NO  OBJECTION, it was so ordered.                                                                   
                                                                                                                                
HCS CSSB 359 (FIN)  was REPORTED out of Committee  with a "do                                                                   
pass" recommendation  and with a previously  published fiscal                                                                   
note: #2 CED.