Date: 01/08/2010

Final
Capital Finance Corporation

COMMITTEE ON EXECUTIVE COMMITTEE OF THE LEGISLATIVE COUNCIL

Votes: View--> Action Taken:
Moved to approve drafting and introduction of a bPass Without Objection



09:24 AM -- Capital Finance Corporation

Mr. Mauer discussed the purpose of the Capital Finance Corporation, which was created to allow the state to purchase land and buildings through certificates of participation. He noted that the corporation faced a lawsuit which questioned whether the corporation was distant enough from the state to perform these transactions, and after the lawsuit, the corporation was not used for a decade. He explained it was brought up to regulation last year, at which time, he discovered that the corporation held 40 state-owned properties. These properties were quick-deeded back to the state departments. Because the corporation does not have any further functions to perform and may not have the authority to do so, Mr. Mauer requested that the corporation be removed from statute. Representative May noted that most cities have this type of corporation, and asked whether the authority of those corporations are in jeopardy. Mr. Mauer replied that cities with these types of corporations are not affected by the lawsuit and that the legislative legal staff believes that the corporation could still operate. However, because the corporation is not functional and there are fees associated with maintaining the corporation, Mr. Mauer recommended that the corporation be removed from statute.

BILL:Capital Finance Corporation
TIME: 09:26:49 AM
MOVED:Morse
MOTION:Moved to approve drafting and introduction of a bill to eliminate the Capital Finance Corporation. The motion passed without objection.
SECONDED:Shaffer B.
VOTE
May
Morse
Penry
Excused
Weissmann
Shaffer B.
Carroll T.
Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection




09:27 AM

The committee decided that the bill would be carried by the Majority Leaders of both houses and that the bill will start in the Senate.