Legislature(1999 - 2000)
04/14/2000 08:55 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 447
An Act making appropriations relating to power cost
equalization and the sale of the four-dam pool
hydroelectric project and to capitalize funds; and
providing for an effective date.
KEITH LAUFER, CHIEF FINANCIAL OFFICIER, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), ANCHORAGE, advised
that there had been a change made to Section 1 of the bill.
Monies that were appropriated for the Southeast inter-tie
loans in Section 5, Chapter 19, were appropriated under the
bill, some to Alaska Energy Authority (AEA) for cost of the
sale and the bulk to the Power Cost Equalization (PCE)
endowment fund. That language has been rewritten under
Section 1(a) of the bill. The original appropriation for
the Southesat inter-tie loan lapses back to the Railbelt
Energy Fund, Sections (b) & (c) and would be appropriated
from the Constitutional Budget Reserve (CBR).
Representative J. Davies asked the amount expected to be
lapsed to that fund. Mr. Laufer replied $20 million
dollars.
Vice Chair Bunde MOVED to ADOPT the work draft #1-GH2083\D,
Cramer, 4/13/00, as the version of the bill before the
Committee. There being NO OBJECTION, it was adopted.
Representative Phillips questioned if the interest would be
going into the endowment. Co-Chair Therriault replied that
it has been accruing into the general fund.
Mr. Laufer advised that there were no other changes to the
bill except the recommendation to Section 5 to add the legal
names of each entity.
Representative J. Davies referenced Page 2, Line 10,
"purchasing the utilities". He believed that the previous
version contained a definition of that language.
BRIAN BJORKQUIST, (TESTIFIED VIA TELECONFERNCE), ASSISTANT
ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, acknowledged
that the other bill had a definition of "purchasing
utilities". Picking up that definition would insert after
"Wrangle" the language "purchasing a utility,". To Page 2,
Line 27, Co-Chair Therriault MOVED to ADOPT the proposed
Amendment #1, the language recommended by Mr. Bjorkquist.
There being NO OBJECTION, it was adopted.
Representative Austerman MOVED to ADOPT Amendment #2, which
would delete "$19.5 million dollars" and would insert
"$100,000,000". [Copy on File]. Representative Austerman
noted that the amendment would fully fund a Power Cost
Equalization (PCE) endowment fund so that it would not need
to be addressed every year. Representative J. Davies voiced
support for the amendment.
Co-Chair Therriault asked if the amendment were to pass,
would it cause technical problems with HB 446. Mr. Laufer
replied that it would reduce the dividends that flow from
the endowment, however, it would not impact HB 446.
Vice Chair Bunde pointed out that there is a statutory limit
for $17 million dollars. The current scheme does not fully
fund PCE. There would continue to be a need for a smaller
amount to fund that. He noted concern that even with the
amendment, there would most likely be additional funding
requests for unanticipated growth.
RANDY SIMMONS, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), ANCHROAGE, advised
that the statutory language states that a minimum of $17.3
million dollars in that language would be taken from the
1993 Act. The current formula in statute is for $17 million
dollars.
Mr. Bjorkquist interjected that in Chapter 18, SLA 1993,
there is legislative intent that provides funding remain at
a minimum of $17 million dollars. Co-Chair Therriault asked
if that was considered intent language. Mr. Bjorkquist
replied it was. Vice Chair Bunde reminded members the value
of intent language.
Representative Bunde suggested that the amendment could be a
partial solution to the problem. Co-Chair Therriault asked
if the current statutory formula drives that number. He
noted that language would not modify the passage of either
of the bills; instead, it calls for proration.
Representative J. Davies agreed that the amendment would not
fully fund the endowment. He stated that if the next
legislature were to appropriate more or less, it would give
strong statutory support. He emphasized that it would not
bind future legislatures.
Representative Phillips spoke in favor of the amendment.
She stated that it would bring the issue of the PCE battle
"off the table".
A roll call vote was taken on the motion.
IN FAVOR: Austerman, Bunde, J. Davies, G. Davis,
Foster, Grussendorf, Moses, Phillips,
Williams
OPPOSED: Therriault
Co-Chair Mulder was not present for the vote.
The MOTION PASSED (9-1).
Representative Foster MOVED to report CS HB 447 (FIN) out of
Committee with individual recommendations. There being NO
OBJECTION, it was ordered.
CS HB 447 (FIN) was reported out of Committee with a "do
pass" recommendation.
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