COMMITTEE REPORT

SPRING FORUM IN WASHINGTON, D.C. RAPIDLY APPROACHES

The Economic Development, Trade & Cultural Affairs Committee will next meet at the Spring Forum, held April 14-16 in Washington, D.C. The Committee will discuss tax incentives for businesses and the recent Ohio federal court case, Cuno vs. DaimlerChrysler; the Supreme Court case Kelo v. City of New London and its effects on the use of eminent domain; and reform efforts for regulation of Fannie Mae and other government sponsored enterprises. A seminar on international trade issues and preemption of state authority will be held in conjunction with the Spring Forum, co-hosted by NCSL and the National Association of Attorneys General. Please see www.ncsl.org/forum/ about registration and lodging. Committee agenda updates will be online at www.ncsl.org/standcomm/scecon/scecon.htm. The trade seminar agenda is at www.ncsl.org/standcomm/scecon/seminaragendaspring05.htm.

COMMUNITY DEVELOPMENT GRANT SUPPORTED BY U.S. SENATORS

A bipartisan group of 55 U.S. Senators signed a letter dated March 2 to the Chair and Ranking Member of the U.S. Senate Budget Committee in support of retaining the Community Development Block Grant (CDBG) at a budget allocation of $4.732 billion, and maintaining the grant’s administration at the Department of Housing and Urban Development. The letter is found online at www.usmayors.org/uscm/news/press_releases/documents/CDBGSenate_030205.pdf.

COMMERCE TESTIFIES ON COMMUNITY DEVELOPMENT GRANTS

David Sampson, Assistant Secretary of Commerce for Economic Development, testified on March 17 in the U.S. House Transportation and Infrastructure Subcommittee on Economic Development about the “Strengthening America’s Communities” initiative. The Administration contends that programs are duplicative and don’t address current situations in struggling communities. A panel representing localities and development commissions presented anecdotal evidence of how the Community Development Block Grant (CDBG) has been used to benefit communities around the country. Committee members expressed support specifically for the Economic Development Administration (EDA) which was just reauthorized last fall, and the initiative proposes to dismantle. They were also concerned about the cuts in funding overall and that the stringent accountability measures are unreasonable. Panelists’ testimony and further details are online at www.house.gov/transportation/pbed/index.html. NCSL has policy supporting the CDBG but does not yet have a position on the Strengthening America’s Communities proposal.

FANNIE MAE SIGNS REGULATORY AGREEMENT

On March 7, Fannie Mae and the Office of Federal Housing Enterprise Oversight (OFHEO) signed an agreement with 15 requirements supplementing a September 27, 2004 document between the two offices. Fannie Mae is obligated to create internal controls and an office of ethics, and make administrative and staffing changes. There are also governance, accounting and capital requirements. The first step of implementation is that Fannie Mae has 45 days to separate the positions of board chairman and CEO.  In addition, the U.S. Senate and House have oversight hearings scheduled for the week of April 4. NCSL’s Spring Forum includes a joint session with the Economic Development, Trade & Cultural Affairs and Financial Services Committees to discuss GSE reform in general. The Fannie Mae/OFHEO March agreement is online at www.fanniemae.com/media/pdf/issues/ofheosuppagrmt030705.pdf.

NCSL RELEASES HEALTHY COMMUNITY DESIGN LEGISLATION DATABASE