NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Stewart

 

DATE TYPED:

3/12/03

 

HB

HJM 111

 

SHORT TITLE:

Redevelopment Task Force

 

SB

 

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

State Investment Council

Economic Development Department

 

Responses Not Received From

Department of Finance and Administration

Governor’s Office

 

SUMMARY

 

     Synopsis of Bill

 

House Joint Memorial 111 requests the Governor to create a task force on redevelopment.  Specifically, the task force would be led by the economic development department, the department of finance and administration and the governor’s office of planning.  The task force would also include “representation from the real estate development industry, the finance industry, a statewide smart growth advocacy organization, redevelopment staff and a nonprofit organization with experience in redevelopment projects.  The purpose of the task force is to study and make recommendations for a provision to use the severance tax permanent fund as a financial guarantee for real estate development in redevelopment areas.

 

FISCAL IMPLICATIONS

 

There is no appropriation associated with this memorial.

 

ADMINISTRATIVE IMPLICATIONS

 

The State Investment Council indicates minimal commitment, as the memorial is written.  Additionally, the Economic Development Department notes there is no department assigned to lead the task force, making it hard to comment on the implications.

 

TECHNICAL ISSUES

 

A definition of “real estate development” and “redevelopment areas” is needed.

 

OTHER SUBSTANTIVE ISSUES

 

The State Investment Council indicates since it has fiduciary responsibility for the investment of the Severance Tax Permanent Fund, it would seem appropriate for the council to be represented on the task force. 

 

POSSIBLE QUESTIONS

 

  1. Is this outside the corpus of the severance permanent tax fund?
  2. What is the potential liability to the state to use the severance permanent tax fund as a financial guarantee for real estate development?

 

KBC/njw