Approved: 4-3-07                   

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE


The meeting was called to order by Chairperson Karin Brownlee at 8:30 A.M. on March 1, 2007 in Room 123-S of the Capitol.


All members were present except:

Ruth Teichman- excused


Committee staff present:

Kathie Sparks, Kansas Legislative Research Department

            Jason Long, Revisor of Statutes

Jackie Lunn, Committee Assistant


Conferees appearing before the committee:


Others attending:

See attached list.


SB 156--Professional employer organization act

Sub for SB 316--Codifying STAR bond financing separately from tax increment financing


Chairperson Brownlee announced to the Committee that she is putting SB 156 in a subcommittee. The members of the subcommittee will be: Senator Teichman, Senator Wagle, Senator Brownlee and either Senator Kelly or Senator Barone.


Chairperson Brownlee turned the Chair over to Senator Jordan. Chairperson Jordan announced the Committee would rework the STAR Bond bill and thanked the staff for all their hard work.


Chairperson Jordan introduced Kathie Sparks, Legislative Research to review the bill for the Committee.

Ms. Sparks reviewed the Substitute for Substitute for Senate Bill No. 316. (Attachment 1) She reviewed all the changes in the bill which were made in a previous committee meeting. During the review, there were questions and discussion.


Senator Barone made a motion to strike “and retail” on Page 5, (w) of the bill. Senator Brownlee seconded. Motion carried with one “no” vote from Senator Schodorf.


The review continued with discussion on eminent domain and the assurance the bill conforms to 2006 legislation.


Upon the conclusion of the changes to STAR Bonds, Ms. Sparks referred the Committee to the changes in TIF. (Attachment 2)


Chairperson Jordan called the Committee’s attention to Page 35, section 22 of the bill. He called on Jason Long, Revisor, to give the suggested language to make this section more clear. The change would be to add back in” eligible areas” and “a city thereby” and remove central business district areas of cities, blighted areas located within cities, environmentally and contaminated areas located” and “cities and enterprise zones located within cities, thus”.


Senator Brownlee moved to adopt the amendment offered by Jason Long, Revisors office. Seconded by Senator Kelly. Motion carried.


Ms. Sparks moved the discussion back to eminent domain language on Page 26, second paragraph. The additional percentage of appraisal required to be paid for STAR bond projects or bioscience development projects was discussed. It was noted that current eminent domain law requires 200% compensation and possibly the additional 25% should be removed.


Senator Barone made a motion to strike on Page 26, second paragraph, “In addition to any compensation or damages under the eminent domain procedures act with respect to any property subject to proceedings thereunder as a result of the construction of a STAR bond project or bioscience development project, such city or county shall provide for the payment of an amount equal to 25% of such compensation or damage amount.” Senator Brownlee seconded. Motion carried.


Ms. Sparks continued with the review covering TIF bonds. Multilevel parking facilities was discussed along with intermodal facilities.


Senator Kelly made a motion to add “parking facilities could be privately owned” to Page 42, (Q), (2) Senator Schodorf seconded.


Discussion followed.


Chairperson Jordan called for a vote. Motion carried.


Ms. Sparks continued with her review and questions from the Committee.


Upon the conclusion of the review a discussion followed regarding a new balloon that had been overlooked for the STAR Bond portion of the bill regarding cities and counties which appeared on page 14 of the small 81/2 x 11 balloon.


Senator Reitz made a motion to accept the balloon adding (3) “If no ordinance or resolution is passed by the city or county within 30 days from the conclusion of the public hearing, then such STAR bond project district or bioscience development district shall not be established. Senator Brownlee seconded.

Motion carried.


Senator Reitz made a motion to pass the sub for sub for SB 316 out favorably as amended. Motion carried.


Chairperson Jordan adjourned the meeting at 9:25 a.m. with the next scheduled meeting March 6th at 8:30 a.m. in room 123 S.