fees that cannot be justified. He suggested that an analysis to justify business license fees, particularly on apartments, needs to be done on a per unit basis and should be reviewed periodically to ensure that the level of license fee adequately supports the service demand.

    Mr. Kevin Howe, Senior Manager, Archstone Communities, briefed the committee on some of the issues apartment complex owners are facing and how they are trying to address them.

    Mr. Keith Nielson, Owner, Valley Park Apartments, said that Lieutenant Governor Olene Walker, in her address at the Utah Apartment Association's trade show on the issue of affordable housing, said that increased building costs of apartments is due in part to the large impact fees assessed on apartment owners.

    Mr. Bruce Wasden, Taylorsville City Councilman, indicated that some of the impact fees are high but are needed to meet the additional need created by the impact of people in a small area. He encouraged the committee to look at the demands for services that are made on cities by the high impact by apartment dwellers.

    Sen. Poulton pointed out that if any of the presenters would like legislation drafted on this issue to contact the members of the committee.

4.    Impacts of Road Construction on Businesses - Ms. Mary Evans, Owner, Central Office Supply, explained to the committee the hardships businesses are going through with road construction. She indicated that she hopes the Legislature will plan better in the future and offer some relief to affected businesses such as discounts on sales tax or other tax incentives.

    Ms. Karen Silver, Salt Lake Community Action Program, requested that the Legislature look into the impact that road construction has on businesses and ask that better planning can be done in the future.

5.    Utah Technology Finance Corporation (UTFC) Task Force Report - Mr. David Simmons, Task Force Chair, said that he chairs a task force to review the operations of UTFC and he indicated that the task force has not completed its work, but hopes to do so within the next month. He stated that the task force has been looking at UTFC's original purpose and whether or not there is a continued need for its services. He indicated that the task force is close to finalizing recommendations and those recommendations will be given to the Department of Community and Economic Development board at its November board meeting. Mr. Simmons said that a copy of those recommendations will also be submitted to the committee for its review. He stated that the task force is in large part in support of UTFC.
    
6.    Consolidation of Economic Development Functions - Ms. Mary Catherine Perry, Research Analyst, gave a brief background of business recruiting in Utah, as performed by the Economic

Development Corporation of Utah (EDCU) and the Division of Business and Economic Development within the Department of Community and Economic Development (DCED). She provided committee members with a printed copy of her presentation.

    Mr. Rick Mayfield, Director, Division of Business and Economic Development, said that DCED has identified overlap with EDCU in the area of business recruiting and a task force was formed to study this issue.

    Mr. Lou Callister, Chair, EDCU, indicated that the task force's recommendation was to combine the Economic Development Corporation of Utah and the national recruiting staff of the Division of Business and Economic Development into a new organization to be named the Utah Business Development Partnership, which would be chaired by the governor. Mr. Callister explained that the expected benefits of this merger would be: 1) elimination of duplicated efforts; 2) a combined organization that has more capabilities, including the ability to employ industry specialists and rural specialists; and 3) the opportunity to build a world class organization that could benefit from opportunities presented by the Olympic Winter Games.

    Mr. Mayfield said that the challenge of the governor was to make sure that there was local consensus for merging the two organizations together. When the first task force published its recommendations, some of the local economic development professionals had concerns with the proposal and a second task force was created. Mr. Mayfield indicated that the recommendations of the second task force were: 1) that the new organization have a policy advisory board made up of local economic development professionals; 2) that the executive committee be represented by the entire state and not just Salt Lake City; 3) that the partnership have other functions in addition to business recruiting; 4) that the new organization honor commitments to rural Utah; and 5) that a training program be set up for local economic developers. Mr. Mayfield told the committee that the department has met with the cochairs of the task force and will meet with the entire task force on Friday, October 30th to make sure that the members are in consensus with the recommendations. After that meeting, the intent of the department is to receive the governor's approval and then move ahead with merging the two organizations.

    Mr. Larry Bunkall, President, Utah Manufacturers Association (UMA), said that UMA has no position on this issue, but asked if there is a problem legally with the concept of state departments awarding contracts to a single organization and not offering them to whoever would like to bid on them.
                
    Mr. Callister explained that the legal side is being looked at by an attorney with the state to make sure that the merger is done in accordance with law and regulation and the department would welcome the committee's involvement in this process.

    Rep. Adair suggested that the committee staff follow up on the issue of state contracting.

7.    Licensing of Talent Agencies - Ms. Patricia Owen, Associate General Counsel, said that during the 1998 General Session Senator Mayne sponsored S.B. 193, which would have created a licensing classification for talent agents. She indicated that because the bill was drafted late in the session and time did not permit full discussion of it, Sen. Mayne requested that the bill be brought before the committee for further discussion.

    Ms. Leigh Vonderesch, Director, Film Commission, DCED, spoke in opposition to the legislation as it is now written and would be willing to work on fine tuning the legislation to the benefit of the industry in the state.
    
    Mr. Randall Edwards, an attorney with Christensen and Jensen, representing the TMG Talent Agency, spoke in opposition of the bill.

    Mr. Jerry Hoockey, Business Representative for the Screen Actors Guild, spoke in favor of the bill.

    Ms. Linda Bearman, Talent Management Group, spoke in opposition of the bill.

    Ms. Diane Woodhouse spoke in favor of the bill.

    Mr. Lance Williams, President of America International Media, spoke in opposition of the bill.

    Ms. Susie McCarty, McCarty Agency, spoke in opposition of the bill.

    Mr. Scott Shurian, Talent Manager Group, spoke in opposition of the bill.

8.    Adjourn -

     MOTION: Rep. Pace moved to adjourn the meeting. The motion passed unanimously with Sen. Waddoups, Rep. Arent, Rep. Knudson, Rep. King, and Rep. Harper were absent for the vote.

    Chair Poulton adjourned the meeting at 5:00 p.m.