Legislature(1999 - 2000)

05/04/1999 01:55 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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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