Legislature(2005 - 2006)HOUSE FINANCE 519

02/14/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 379 CONTROLLED SUBSTANCES, INCL. ANALOGS TELECONFERENCED
Moved CSHB 379(JUD) Out of Committee
+ HB 395 FIRE SEASON START DATE TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 334 MUNICIPAL PROPERTY TAX DEFERRAL/EXEMPTION
Heard & Held
HOUSE BILL NO. 395                                                                                                            
                                                                                                                                
     An Act extending the period of the fire season.                                                                            
                                                                                                                                
KONRAD JACKSON,  STAFF, REPRESENTATIVE KURT  OLSON, testified                                                                 
that the spruce  bark beetle kill on the Kenai  Peninsula has                                                                   
created an  enormous amount  of dry grass  and that  the dead                                                                   
trees  are susceptible  to  lightning  strikes  and man  made                                                                   
fires.  The threat grows greater  every year.  Gradually over                                                                   
the past  several years,  the climate in  that area  has been                                                                   
warming earlier,  leaving wild  areas dry and  increasing the                                                                   
risk of major wildfires.                                                                                                        
                                                                                                                                
Mr. Jackson pointed out that the  largest uncontained fire on                                                                   
the  Southern  Kenai Peninsula  was  the Tracy  Avenue  fire,                                                                   
                        st                                                                                                      
starting  before  May  1,  2005,  threatening  residents  and                                                                   
property.    The  fire  might have  been  contained  had  the                                                                   
equipment  and  personnel been  available  the  first day  it                                                                   
started.                                                                                                                        
                                                                                                                                
Mr. Jackson  discussed that by  moving the fire  season start                                                                   
                  st                                                                                                            
date  to  April  1,  allows  the  State  to  become  actively                                                                   
involved in  the fire prevention  and control earlier  in the                                                                   
season.                                                                                                                         
                                                                                                                                
2:58:45 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch  questioned if an extra  month would                                                                   
add additional  expense and asked why the  Legislature should                                                                   
decide  rather than the  Commissioner  for the Department  of                                                                   
Natural Resources.                                                                                                              
                                                                                                                                
Mr. Jackson  reported that the  intention was to  provide the                                                                   
Commissioner  with  the  authority  to  bring  people  online                                                                   
earlier.   Representative  Weyhrauch  repeated his  question.                                                                   
Mr. Jackson  noted it is at  the request of  the firefighters                                                                   
to be able to be better prepared,  earlier in the season.  He                                                                   
pointed out that in some instances,  the State has to pay for                                                                   
firefighters brought up from the lower '48.                                                                                     
                                                                                                                                
Representative  Foster commented  that over  1,000 fires  are                                                                   
man  made and  questioned the  relief that  comes from  arson                                                                   
fires.                                                                                                                          
                                                                                                                                
Mr.  Jackson said  that  they had  not  considered arson  set                                                                   
fires.   It  is the  early  season fires  that  are the  main                                                                   
concern.  He did  not know how those fires  were started, but                                                                   
the intent is to  guarantee that they are put  out as quickly                                                                   
as possible with available resources.                                                                                           
                                                                                                                                
3:04:17 PM                                                                                                                    
                                                                                                                                
Representative Holm  voiced concern that bills  like this set                                                                   
the entire  State into a poor  situation.  He asked  if using                                                                   
"fire season"  would provide the Commissioner  more power for                                                                   
all the  State.  Mr.  Jackson said it  would.  He  added that                                                                   
the Commissioner "may" designate  periods other than the fire                                                                   
season to  prohibit the  setting of  fires that would  unduly                                                                   
increase  fire danger.   The  legislation only  puts it  into                                                                   
effect, one month earlier.                                                                                                      
                                                                                                                                
Representative  Holm voiced concerned  with the snow  melting                                                                   
at different times in various  parts of the State, making the                                                                   
fire  potential  different statewide.    He  believed that  a                                                                   
"blanket statement"  could negatively affect  different parts                                                                   
of the State not at danger.                                                                                                     
                                                                                                                                
Mr.  Jackson pointed  out that  currently, local  authorities                                                                   
determine the  local danger.  The local  municipalities deter                                                                   
regionally.                                                                                                                     
                                                                                                                                
3:08:18 PM                                                                                                                    
                                                                                                                                
CRAIG GOODRICH,  (TESTIFIED VIA TELECONFERENCE),  FIRE CHIEF,                                                                   
CITY  OF  ANCHORAGE,  testified   that  the  purpose  of  the                                                                   
legislation  requests to  bring on  air crews  and part  time                                                                   
membership one month  earlier.  That action  would help fight                                                                   
campaign  fires.   He  advised  the structural  component  of                                                                   
having  the  crews  on  one  month  earlier.    Mr.  Goodrich                                                                   
stressed  that this  is a  crucial  issue.   A campaign  fire                                                                   
costs the State  about $1 million dollars per day.   He noted                                                                   
what the fiscal costs represent.                                                                                                
                                                                                                                                
3:10:15 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  inquired  why  the bill  does  not                                                                   
indicate  that the  Commissioner  designate  the fire  season                                                                   
each  year.   Mr.  Goodrich explained  that  would require  a                                                                   
guess to determine when the fires  will occur.  The intent is                                                                   
to have  the seasonal  employees back  to work and  equipment                                                                   
ready to go on  fire alert.  He emphasized  that the training                                                                   
and the  equipment should be ready  beforehand.  It  would be                                                                   
better to move it up one month in statute.                                                                                      
                                                                                                                                
Representative  Weyhrauch reiterated  why the first  sentence                                                                   
could  not say  that the  Commissioner  designates the  first                                                                   
day.   Mr.  Goodrich  replied  that  language would  ask  the                                                                   
Commissioner  to  imagine  when  to  suspect  a  fire  season                                                                   
starts.   There  is an  ecological change  in conditions  now                                                                   
happening and  the fire seasons  are simply starting  a month                                                                   
earlier.                                                                                                                        
                                                                                                                                
3:12:08 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  was concerned  about  the fiscal  note                                                                   
accompanying the  bill and spoke  to the relentless  pressure                                                                   
of employees  in every field wanting  to go to  work earlier.                                                                   
He asked about  exchanging the month up front,  giving up the                                                                   
back  end.    Mr. Goodrich  deferred  to  the  Department  of                                                                   
Natural  Resources.     Representative Kelly  reiterated  his                                                                   
concern with the fiscal note.                                                                                                   
                                                                                                                                
Co-Chair Meyer agreed.                                                                                                          
                                                                                                                                
3:14:27 PM                                                                                                                    
                                                                                                                                
Representative Hawker disagreed  with the manner in which the                                                                   
bill had  been presented.  He  requested to question  Mr. Bus                                                                   
from the Department.                                                                                                            
                                                                                                                                
SCOTT  WALDEN, (TESTIFIED  VIA TELECONFERENCE),  COORDINATOR,                                                                   
KENAI PENINSULA  BOROUGH EMERGENCY MANAGEMENT  OFFICE, KENAI,                                                                   
spoke in support  of the legislation.  He provided  members a                                                                   
handout  of the  major  Kenai  Peninsula fires  since  1996+.                                                                   
[Copy on File].                                                                                                                 
                                                                                                                                
He stressed that prevention is  very important.  Mobilization                                                                   
is a reaction  and an expense  itself.  Having  the resources                                                                   
prepared  comes with  costs  -  it is  proactive.   He  urged                                                                   
support for the bill.                                                                                                           
                                                                                                                                
3:19:00 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  referenced   the  beetle  kill  spruce                                                                   
concern  and asked  if  that area  was  being  logged to  the                                                                   
maximum.  Mr. Walden  did not know the logging  level.  There                                                                   
is mitigation process  preparation going on daily.   They are                                                                   
concentrating on  the egress points, preparing  for the large                                                                   
fires.  The  Northern areas will benefit from  passage of the                                                                   
legislation.  The  staging areas are generally  in Palmer and                                                                   
Kenai.   Having the operations  one month early  will benefit                                                                   
the entire region.                                                                                                              
                                                                                                                                
Representative  Kelly asked about  the coordinated  approach.                                                                   
He thought  it was "insane" not  to maximize logging  when it                                                                   
serves as the base of the problem.                                                                                              
                                                                                                                                
3:21:00 PM                                                                                                                    
                                                                                                                                
Mr. Jackson  advised that  in the  House Resource  Committee,                                                                   
testimony was  heard indicating there has been  a significant                                                                   
amount of  logging in the region,  which has helped  with the                                                                   
mitigation effort.  He understood  that since the majority of                                                                   
the trees have  been dead for a long time, the  value of that                                                                   
timber is rapidly decreasing.                                                                                                   
                                                                                                                                
3:22:18 PM                                                                                                                    
                                                                                                                                
NICO  BUS,   ACTING  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                                                                   
SERVICES, DEPARTMENT OF NATURAL  RESOURCES, offered to answer                                                                   
questions of the Committee.                                                                                                     
                                                                                                                                
He  noted  queries  proposed   by  Representative  Weyhrauch,                                                                   
regarding  the statutes,  stating that  the proposed  date of                                                                   
April  through   September  has  been  offered   because  the                                                                   
Department  of  Natural  Resources prefers  to  provide  fire                                                                   
protection in  a cost effective  manner.  The easiest  way to                                                                   
do  that  would  be to  provide  long-term  contracts.    The                                                                   
standard fire  season used to  be through late May  to middle                                                                   
July.   The contracts  were written and  ready by  that time;                                                                   
however, currently,  the aviation  contracts are  May through                                                                   
September.    As  history has  indicated  and  climates  have                                                                   
changed, the  fires are happening  earlier, which is  part of                                                                   
the reason  for the  fiscal request  - $395 thousand  dollars                                                                   
contractual services.  He addressed  the five-year contracts.                                                                   
                                                                                                                                
Mr. Buss responded  to comments made by  Representative Kelly                                                                   
regarding employee's  pressure to come back  to work earlier.                                                                   
The Department  only has 32 full  time employees in  the fire                                                                   
preparedness  program  and  179   seasonal  employees,  which                                                                   
remain four  to seven  months.   The season  is limited.   He                                                                   
recommended that what should be  focused upon are determining                                                                   
the needs  and the best  utilization of  that staff.   If the                                                                   
State waits  until May to train,  they might not be  ready or                                                                   
fully trained when the fires start.                                                                                             
                                                                                                                                
3:25:29 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  observed that  the  bill changes  the                                                                   
definition  of  "fire season".    The only  operative  effect                                                                   
defining fire  season, the Commissioner may  offer preventive                                                                   
activities.    He  admitted  that  the  additional  authority                                                                   
should provide  that and understood  that extending  the date                                                                   
was  the entire  consequence  of  the bill.    Representative                                                                   
Hawker  asked  if   the  State  was  mandated   to  have  the                                                                   
definition  of the fire  contracts in  place during  the fire                                                                   
season.   He believed  there were  two separate policy  calls                                                                   
being proposed  and was  troubled with the  fiscal note.   He                                                                   
proposed it be  zeroed out and run through  the Department of                                                                   
Natural Resources' subcommittee budget.                                                                                         
                                                                                                                                
3:29:00 PM                                                                                                                    
                                                                                                                                
Mr.  Bus  agreed  it  was a  policy  call,  noting  that  the                                                                   
Department was requesting the funding.                                                                                          
                                                                                                                                
Co-Chair  Meyer  indicated  he  would  not  be  "comfortable"                                                                   
letting  the  bill  leave  Committee  with  the  accompanying                                                                   
fiscal note  because of  the impacts that  would have  on the                                                                   
operating budget.                                                                                                               
                                                                                                                                
Representative   Holm   applauded   Representative   Hawker's                                                                   
                                    st                                                                                          
assessment.   He  asked why  April 1   had been  chosen.   He                                                                   
remembered the  huge fire in  Fairbanks, which the  State did                                                                   
not fight.                                                                                                                      
                                                                                                                                
Mr. Bus  responded that  the proposed  legislation would  not                                                                   
impact actually the fighting of fires.                                                                                          
                                                                                                                                
3:31:32 PM                                                                                                                    
                                                                                                                                
LYNN WILCOCK,  (TESTIFIED VIA TELECONFERENCE), CHIEF  OF FIRE                                                                   
AND  AVIATION, DIVISION  OF FORESTRY,  DEPARTMENT OF  NATURAL                                                                   
                                              st                                                                                
RESOURCES, ANCHORAGE,  stated that the April 1   date was set                                                                   
                                      th                                                                                        
because often fires begin by April 15.                                                                                          
                                                                                                                                
Representative Holm commented  on the nature of his "seasonal                                                                   
business",  proactively  preparing  in  the  autumn  for  the                                                                   
upcoming spring.   He  pointed out he  attempts to  rehire as                                                                   
many  workers as  possible from  the previous  year, so  that                                                                   
they do not need to be trained.                                                                                                 
                                                                                                                                
Mr. Wilcock  said they do  a lot of  preparatory work  in the                                                                   
fall for  fire fighting in  the spring; however,  pointed out                                                                   
that they are  subject to the national standard  for fighting                                                                   
fires, which calls for annual  recertification for the safety                                                                   
of the fire  fighters.  Also, there is extensive  work, which                                                                   
needs to be done in the spring  for the fire-fighting season.                                                                   
                                                                                                                                
3:35:04 PM                                                                                                                    
                                                                                                                                
Representative  Joule inquired if  there were other  types of                                                                   
trees being impacted by the spruce  type beetle.  Mr. Wilcock                                                                   
replied that  spruce bark beetle  was the biggest  influence.                                                                   
He  knew  there  were others,  affecting  hardwoods  but  not                                                                   
nearly with the same impact.  He mentioned the aspen fluff.                                                                     
                                                                                                                                
Representative Joule  asked if there was an  insect affecting                                                                   
the birch  trees.   Mr. Wilcock replied  that they  have seen                                                                   
birch pathogens,  mostly defoliators, which cause  leave fall                                                                   
later in the summer.  Typically,  hardwood stands are not the                                                                   
problem in  Alaska.   It is controlling  grass in  the spring                                                                   
and later on in the summer, switching to black spruce.                                                                          
                                                                                                                                
3:37:14 PM                                                                                                                    
                                                                                                                                
Representative Joule  inquired if the State  was experiencing                                                                   
a reduced  annual precipitation.   Mr. Wilcock replied  he is                                                                   
not a climitologist.  He indicated  that two years of reduced                                                                   
rainfall is not an indication  of a climate change and he did                                                                   
not know if there was a new trend.                                                                                              
                                                                                                                                
Representative  Kelly  read  from   the  bill  regarding  the                                                                   
Commissioner  making the  declaration.   He did  not want  to                                                                   
experience pressure to bring employees  on for longer periods                                                                   
of time.  He  thought that the bill's language  would provide                                                                   
plenty of flexibility to the Commissioner.                                                                                      
                                                                                                                                
3:39:31 PM                                                                                                                    
                                                                                                                                
Mr. Wilcock  responded that the Commissioner's  authority was                                                                   
exercised  in  2003, the  spring  in  which there  were  many                                                                   
fires.    A  fire must  occur  before  the  Commissioner  can                                                                   
declare a  fire season early-start.   It only takes  one full                                                                   
day of  sunshine before  the fire season  starts and  that is                                                                   
difficult to predict.                                                                                                           
                                                                                                                                
Representative Kelly  commented, "flexibility is  relative to                                                                   
weather conditions".   He recommended extending it  back by a                                                                   
couple weeks and leaving the budget alone.                                                                                      
                                                                                                                                
3:43:00 PM                                                                                                                    
                                                                                                                                
CHRIS  MAISCH,  (TESTIFIED  VIA   TELECONFERENCE),  DIRECTOR,                                                                   
DIVISION  OF  FORESTRY,  DEPARTMENT   OF  NATURAL  RESOURCES,                                                                   
ANCHORAGE,  explained that  the problem  with the early  fire                                                                   
season  indication is  that the  budget is  in two  different                                                                   
BRU's.   The  suppression  portion of  the  budget cannot  be                                                                   
accessed until there  is activity.  To bring  people on early                                                                   
in  the  season,  they  have  to  take  the  funds  from  the                                                                   
preparedness part of the budget.   That part of the budget is                                                                   
currently funded at a level that  allows bringing people back                                                                   
              st                                                                                                                
at  the May  1   date.   It  is  not  simple because  of  the                                                                   
financial resource restrictions.                                                                                                
                                                                                                                                
Representative Kelly  thought it could  be moved up  a couple                                                                   
of weeks without further budget appropriation.                                                                                  
                                                                                                                                
Co-Chair  Meyer  asked if  the  bill  were passed,  would  it                                                                   
guarantee no supplemental funding requests next year.                                                                           
                                                                                                                                
Representative  Hawker  commented   that  previous  testimony                                                                   
should  not determine  the budgeting process.   He  disagreed                                                                   
about the need.  He recommended  structuring a budget without                                                                   
the additional money and restructuring  the BRU concerns.  He                                                                   
emphasized that pushing the date  back does not have a fiscal                                                                   
consequence.                                                                                                                    
                                                                                                                                
3:46:45 PM                                                                                                                    
                                                                                                                                
Representative Kerttula  asked the cost per  day of combating                                                                   
a big fire.   Mr. Bus responded anywhere between  $1 thousand                                                                   
- $260 thousand dollars per day.                                                                                                
                                                                                                                                
Representative  Kerttula questioned  the problem between  the                                                                   
two BRU's  with the Department's  budget.  Mr.  Bus explained                                                                   
that the  history of the  fire suppression budget  is varied.                                                                   
The  Department  has  tried  a new  approach  in  which  they                                                                   
completely separate  it from actually doing  the suppression.                                                                   
By doing  that, they attempt  to approximate what  an average                                                                   
fire year would  cost.  Then the preparedness  aspect is used                                                                   
for  aviation contracts  and seasonal  staff.   The  proposed                                                                   
legislation proposes  to make  those contracts longer.   With                                                                   
the  current allocations,  the Department  cannot extend  the                                                                   
season.                                                                                                                         
                                                                                                                                
3:49:01 PM                                                                                                                    
                                                                                                                                
Representative Kerttula  stated that the bottom  line is that                                                                   
the Department cannot  take care of the fire  season with the                                                                   
current budget.   Mr. Bus  replied that without  the seasonal                                                                   
staff  and the  contracts, it  becomes  an efficiency  issue.                                                                   
The contracts  need to be in  place to make the  process more                                                                   
economical and is part of the speculation.                                                                                      
                                                                                                                                
Co-Chair   Meyer  referenced   all   the   "unknowns".     He                                                                   
recommended  that the  concerns be further  discussed  in the                                                                   
Department   of    Natural   Resources   Subcommittee    with                                                                   
Representative Kelly, the Subcommittee Chair.                                                                                   
                                                                                                                                
HB 395 was HELD in Committee for further discussion.                                                                            

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