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Senate delays SB 57, seeks clarifications on $5 million rural development loan fund
Summary
Lawmakers circled (postponed) Senate Bill 57 after sponsor explanations and questions about whether a one-time $5 million set-up appropriation would be replenished automatically; senators sought clarity on whether repayments would grow the fund or whether the balance should be held at $5 million.
Senate Bill 57, a proposal to establish a state fund using sales-and-use-tax revenues to provide loans and grants for business development in disadvantaged rural communities, was debated on the floor Feb. 14 before senators voted to "circle" the bill for further consideration.
Sponsor Senator Knudson explained that the bill is intended to create a $5,000,000 fund that would be maintained at that level: initial appropriations would set up the fund and subsequent reinfusion would be intended to keep the fund at a $5 million balance rather than create a recurring $5 million annual infusion. He told colleagues that management fees and loan/grant mechanics affect the fiscal note, and that repayments could increase the fund over time.
Members, including Senators Stevenson, Mansell and Evans, asked for plain-language clarification about how sales-and-use-tax revenues would be appropriated into the fund, whether the Community Impact Board (CIB) monies could be used and whether the Legislature would have to appropriate funds annually. Sponsor and colleagues clarified the fund would be established by appropriation and administered by the governor's Board of Community and Economic Development; they discussed possible amendments to cap automatic growth or to require the Legislature to refill only to the $5 million working balance.
Following the exchange, Senator Knudson moved to "circle" SB 57 (postpone for later consideration) to allow sponsors and staff to draft clarifying amendments; the motion passed by voice vote and the bill was held without final action that day.
