Legislature(1999 - 2000)
05/04/1999 01:55 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
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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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