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Minutes for SB432 - Committee on Commerce
Short Title
Transparency, project financial viability requirements and other reforms to the STAR bond financing act.
Minutes Content for Tue, Mar 6, 2018
Chairperson Lynn opened the meeting on SB 432 and requested Revisor Chuck Reimer to provide an overview of the bill.
Chairperson Lynn recognized Clint Anderson, private citizen, who provided testimony in support of the bill. He said his preference would be to see the STAR Bond program eliminated. However, if the program is not eliminated, he said he supported much of the bill, as an improvement to the existing operations. It is to the taxpayers' benefit to have greater transparency and oversight of the STAR Bond program. Mr. Anderson's testimony contained a list of what he considered to be operational flaws of the STAR Bond program and his comments concerning how the flaws were addressed in SB 432 and SB 434. He also offered suggestions for modifications to the bills. (Attachment 1)
Senator Olson asked Mr. Anderson his opinion about the use of abatements other than STAR Bonds. Mr. Anderson said he was generally opposed to such things. There is no shortage of private capital. If a project "needs abatements", then we are asking the taxpayer to fund something that private markets have found not to be viable.
Senator Sykes said she appreciated his comments concerning the need to improve reporting requirements, in particular, the failure to track and report visitor data. Mr. Anderson noted his suggestion on page 6 of the testimony concerning reviewing and reporting on license plate information collected on a routine basis.
Senator Baumgardner asked Mr. Anderson about his suggestion on page 7 which said no STAR Bond district shall exceed 150 acres. She asked if the 150 acre restriction was based on data he had gathered. Mr. Anderson replied he selected the number after reviewing the size of various STAR Bond projects.
Chairperson Lynn recognized Elizabeth Patton, Americans for Prosperity, who provided testimony in support of the bill. Americans for Prosperity is committed to leveling the playing field for all businesses by fighting government handouts to select politically-connected industries. This cannot be accomplished without the facts of whether government programs deliver the results their proponents promise. Not only does this bill go a long way towards providing those facts, but it also sets up safeguards for taxpayers in the process. (Attachment 2)
Chairperson Lynn said the hearing on SB 432 would continue at the next meeting. The meeting was adjourned at 9:28 a.m. The next meeting is scheduled for March 7, 2018.
