04/12/1996 01:35 PM House FIN

                                                                               
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  HOUSE BILL NO. 456                                                           
                                                                               
       "An  Act  relating   to  the  Board  of   Storage  Tank                 
       Assistance; and providing for an effective date."                       
                                                                               
  ROGER POPPE, STAFF, REPRESENTATIVE KOTT testified in support                 
  of HB 456.  He  noted that the legislation would extend  the                 
  sunset of the  Board of Storage  Tank Assistance and add  an                 
  additional member to the Board.  He noted that the Board was                 
  originally created in 1990 to deal with regulations and laws                 
  involving  environmental  concerns  relating to  underground                 
  storage  tanks.   The Board  oversees regulations  regarding                 
  spills, building new  tanks, provisions of grants  and loans                 
  and   provides   mediation   between   the   Department   of                 
  Environmental Conservation and owners.   The Board is due to                 
  sunset on June 30,  1996.  The Legislative Budget  and Audit                 
  Committee Report recommended  the Board  be extended to  the                 
  year  2000.  He  pointed out that  on December  22, 1998 new                 
  federal  regulations  will  go  into   effect.    There  are                 
  currently  seven  members  on the  Board.    The Legislative                 
  Budget and Audit Committee recommended that an eighth member                 
  from the public at large be added.                                           
                                                                               
  Representative Brown questioned the cost of the Board.                       
                                                                               
  JOHN  BARNETT, EXECUTIVE  DIRECTOR,  BOARD  OF STORAGE  TANK                 
  ASSISTANCE replied that the Board's  annual budget is $114.0                 
  thousand  dollars.   This  covers travel,  public assistance                 
  expenses and one employee.                                                   
                                                                               
  Representative Brown questioned if the  purpose of the Board                 
  is  to  decide who  gets  state  subsidizes in  the  form of                 
  cleanup assistance.   Mr. Barnett  acknowledged that one  of                 
  the Board's functions  is to  set the  ranking system  which                 
  determines the  priorities  for  receipt  of funds.      The                 
  program is focussed on smaller businesses with a priority to                 
  public health threats.   The  Board also mediates  disputes.                 
  The Board is a judicial appeal board.                                        
                                                                               
  Representative Brown asked  if the  ranking system could  be                 
  administered    by    the   Department    of   Environmental                 
  Conservation.  Mr. Barnett noted  that the ranking system is                 
  subject  to  dispute.   The tank  owner  has the  ability to                 
  appeal   decisions.      There   are   approximately   1,000                 
  applications on file.  Only 2 or 3 cleanups are being funded                 
  annually.  There are a constant number of disputes that must                 
  be mediated.  The ranking is  reviewed each year and changed                 
  through regulation and public notice and review.                             
                                                                               
  Representative Brown questioned if costs could be reduced by                 
  the use  of the teleconference  network.  Mr.  Barnett noted                 
  that travel costs have  been reduced.  The savings  has been                 
                                                                               
                               10                                              
                                                                               
                                                                               
  spent on educational assistance in the form of a newsletter.                 
  He observed  that their  budget has  not increased  over the                 
  past five years.                                                             
                                                                               
  Representative  Brown   noted  that  the  Board   of  Public                 
  Broadcasting is being  eliminated.  She maintained  that the                 
  Storage Tank Assistance Program is an unnecessary subsidy to                 
  people that  have a responsibility through their businesses.                 
                                                                               
                                                                               
  Mr.  Barnett noted  that the  Board has  proposed ideas  for                 
  possible   changes   to   the   program   in   the   future.                 
  Consideration is  being given  to  a loan  or grant  program                 
  based on need.                                                               
                                                                               
  Representative  Brown  maintained  that  the  program  is  a                 
  blatant form of corporate welfare.                                           
                                                                               
  Representative Kohring MOVED to report CSHB 456 (L&C) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO  OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS HB  456 (L&C) was  reported out of  Committee with  a "do                 
  pass"  recommendation  and with  a zero  fiscal note  by the                 
  Department of Environmental Conservation.