Approved:       4-3-07 

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE


The meeting was called to order by Chairperson Nick Jordan at 8:30 A.M. on March 6, 2007 in Room 123-S of the Capitol.


All members were present.


Committee staff present:

Kathie Sparks, Kansas Legislative Research Department

Norm Furse, Revisor of Statutes

Jackie Lunn, Committee Assistant


Conferees appearing before the committee:

State Representative Tom Sloan

Stanley Rasmussen, Dept of Defense, Div of Army

Rebecca Floyd, Kansas Development Finance Authority (KDFA)

Joe Harkins, KCC

Patty Clark, Department of Commerce


Others attending:

See attached list.


HB 2169--KDFA issuance of bonds for energy conservation measures

HB 2004--Rural business development tax credit program extended through 2012

HB 2005--Center for entrepreneurship statutes, technical cleanup

 

Chairperson Jordan introduced Jason Long, Revisor to explain HB 2169. Mr. Long stated the bill would allow state and federal governmental entities to use KDFA financing to take energy conservation measures. Mr. Long reviewed the bill and changes in current law.

 

Chairperson Jordan opened the hearing on HB 2169 and introduced State Representative Tom Sloan to give his testimony as a proponent of the bill. Representative Sloan referred the Committee to his written copy (Attachment 1). He stated he met with Ft. Riley’s Commanding General, Installation Commander and staff on how the State and the Department of Defense could best partner to help Ft. Riley, Ft. Leavenworth, and McConnell Airbase meet requirements of the Federal Energy Act of 2005. The meeting prompted this bill to be introduced this session. Representative Sloan urged the Committee to give HB 2169 their support.

 

Questions and discussion followed.

 

Chairperson Jordan introduced Stanley Rasmussen with the Department of Army to give his testimony as a proponent of HB 2169. Mr. Rasmussen presented written copy. (Attachment 2) Mr. Rasmussen stated he is Regional Counsel for the Regional Environmental Coordinator for Standard Federal Region VII, Department of Defense which includes the state of Kansas. Mr. Rasmussen reviewed his testimony. He stated HB 2169 not only affords the Department of Defense an opportunity to meet the requirements of the Executive Order, but also provides model legislation for other states to follow. It will also provide federal facilities in Kansas and the state an opportunity to work together by combining and leveraging funds in a manner which will help support growth of the Kansas renewable energy market. In closing, he stated the Department of Defense supports the bill.

 

Discussion followed.

 

Chairperson Jordan introduced Rebecca Floyd, KDFA, to give her testimony as a proponent of HB 2169. Ms. Floyd presented written copy. (Attachment 3) Ms. Floyd stated KDFA has identified several issues regarding the current state of energy conservation authorizations. They believe they can achieve economies of scale similar to those attained in other pool and revolving fund finance programs the Authority currently offers, providing the advantages of a central finance administration department, pooling of multiple smaller financings, and consolidated cost of issuance efficiencies and reduced borrowing costs attributable to using tax-exempt bonds, typically representing the lowest cost of borrowing.

 

Questions and discussion followed.

 

Chairperson Jordan introduced Joe Harkins, Kansas Corporation Commission, (KCC), to give his testimony as an opponent of HB 2169. Mr. Harkins presented written copy. (Attachment 4) Mr. Harkins asked the Committee to wait until next year and allow KCC the opportunity to work with KDFA and the Department of Administration to carefully study some of the ideas put forth by HB2169 to determine how they might integrate with their ongoing planning process.

 

Chairperson Jordan closed the hearing on HB 2169 and stated they would work the bill on another day this session.

 

Chairperson Jordan called the Committee’s attention to the Senate Confirmation Information Summary on David D. Kerr (Attachment 5) and announced the hearing would be held in the meeting on March 14th.

 

Chairperson Jordan introduced Kathie Sparks, Legislative Research, to explain HB 2004 and HB 2005.

Ms. Sparks stated both these bills came out of the Kansas Economic Growth Act of 2004. HB 2004 is the rural business development tax credit program and the bill would extend the credits cap through FY 2007.

 

Ms. Sparks stated that HB 2005 is for the Center for entrepreneurship statutes and is for cleanup only.

 

Chairperson Jordan introduced Patty Clark, Department of Commerce, to give her testimony as a proponent of HB 2004 and HB 2005. Ms. Clark presented written copy. (Attachment 6) Ms. Clark stated the Department of Commerce supports the extension of time on tax credits to 2012 in HB 2004 and they also support the technical cleanup in HB 2005.

 

Senator Teichman made a motion to pass HB 2004 out favorably. Senator Kelly seconded. Motion carried.

 

Senator Schodorf made a motion to approve the Committee minutes for the following days: January 26, 2007; January 31, 2007; February 1, 2007; and February 6, 2007. Senator Teichman seconded. Motion carried.

 

Chairperson Jordan adjourned the meeting at 9:20 a.m. with the next scheduled meeting, March 7, at 8:30 a.m. in room 123 S.