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Minutes for HB2184 - Committee on Appropriations
Short Title
Extending the sunset date of the STAR bond financing act and other amendments.
Minutes Content for Wed, Mar 22, 2017
JIll Wolters, Office of the Revisor of Statutes, provided an overview of the bill, which extends the sunset date of the STAR bond financing act and other amendments. In a response to questions from committee members, she stated that other amendments included the language that no longer requires the Secretary of Commerce to approve a city or county option to use the transient guest tax revenue to be placed for principal or interest on star bonds. The sunset date would be July 1, 2022, she added.
Chairman Waymaster opened discussion on the bill.
Representative Davis, Vice-Chair, reviewed the three components of the amendments on the bill (Attachment 2). The need for an independent third party feasibility study, commissioned by the Department of Commerce, prior to final approval. The intent of the amendment is to take the feasibility study out of the hands of the developer and would become the responsibility of the Department of Commerce with proof of sufficient private capital exists.
Representative Davis made a motion for an amendment adding languague that a feasibility study would be conducted by the Secretary of Department of Commerce prior to final approval and upon proof of sufficient private capital exists. Representative Concannon seconded the motion.
Discussion followed by committee members regarding the amendment and the economic development impact of the bill. Concerns regarding the motion included the significant impact on projects underway and secured private investments. Jill Wolters responded that if it is the intent of the legislature, the bill would need to clearly state that the Department of Commerce would pay for the study, or state that it is included in the cost of the project. She noted that the statute states that the Department of Commerce can recover costs in the form of administrative fees for duties performed up to $200,000.
Representative Sutton made a motion to separate the amendments. Representative Helgerson seconded the motion.
Chairman Waymaster stated that the amendments have already been separated.
Representative Sutton withdrew the motion at the approval of the second.
Representative Campbell made a motion to amend the amendment that would remove the following language: information from the developer that proves sufficient private capital exists to make such project feasible. Representative Davis seconded the motion.
Discussion followed regarding the substitute motion. Concerns were expressed regarding the inclusion of city and counties involvement with a feasibility study.
Representative Campbell renewed the motion. Motion passed.
Representative Davis made a motion to approve the amendment as amended. Representative Lakin seconded the motion.
Discussion followed by committee members.
Representative Lakin made a substitute motion that a feasibility study would be a joint effort with the Secretary of the Department of Commerce, City and County. Representative Davis seconded the motion.
Discussion followed by committee members regarding the motion. Concern was expressed that further information on the impact of the motion would be needed.
Representative Davis renewed the motion. Motion failed
Representative Davis renewed the motion to amend the amendment. Motion failed.
Representative Clayes made a motion for favorable passage of HB 2184. Representative Wolfe Moore seconded the motion. Motion passed.
