Legislature(1995 - 1996)
02/21/1996 01:37 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 207 REVENUE BONDS: WATER & WASTE PROJECTS
Number 130
SENATOR TORGERSON brought SB 207 before the committee as the next
order of business. He directed attention to four proposed
amendments for the committee's consideration.
SENATOR RANDY PHILLIPS moved adoption of the following Amendment
No. 1:
Amendment No. 1
Page 6, line 6: After "in" insert "the current fiscal year and"
Page 8, line 12: After "letters" insert "and lines"
Number 160
MARIE SANSONE , Assistant Attorney General, Civil Division,
Department of Law, said she worked closely with the Department of
Environmental Conservation and the Department of Revenue in
preparing SB 207. The amendment was proposed by the Department of
Revenue to add the term "the current fiscal year" which was
inadvertently omitted when the statute was being drafted.
SENATOR TORGERSON asked if there was objection to the adoption of
Amendment No. 1, and hearing none, he stated it was adopted.
Number 175
SENATOR RANDY PHILLIPS moved adoption of the following Amendment
No. 2:
Amendment No. 2
Page 2, line 7: After "authorized" insert ",subject to (b) of this
section"
Page 2, line 13: Insert a new subsection to read: "(b) The
state bond committee may not issue more than $15,000,000 in revenue
bonds during a fiscal year, excluding refunding bonds. The total
amount of revenue bonds outstanding at any one time may not exceed
$150,000,000, including principal and interest owed on the bonds."
SENATOR TORGERSON explained the amendment puts a cap on the revenue
bonds by setting out that there can be no more than $15,000,000 in
revenue bonds sold in one year, and it cannot exceed $150,000,000
for the total program.
MARIE SANSONE stated the Administration's support for the language.
SENATOR ZHAROFF said he has no problem with setting a cap, but his
concern is having some kind of safety mechanism for the small
community that may have the ability to take advantage of the
program, but could be excluded because they are bumping up against
the cap. SENATOR TORGERSON said an attempt was made to draft some
language to address his concern, but there were problems with its
interpretation. MARIE SANSONE pointed out the intent language in
Section 1 of the bill does recognize that the financing of needed
water quality improvements is the purpose of this legislation.
Also, there is another provision which requires the state bond
committee to consider that in all its decisions.
SENATOR TORGERSON asked if there was objection to the adoption of
Amendment No. 2. Hearing none, he stated Amendment No. 2 was
adopted.
Number 235
SENATOR KELLY moved adoption of the following Amendment No. 3:
Amendment No. 3
Page 7, line 19 - 21: Delete all material.
Page 8, lines 27 - 28: Delete "The provisions of this section
shall be liberally construed in order to carry out the purposes for
which they were enacted."
MARIE SANSONE said the term "liberal construction," when talking
about statutes, is a very standard phrase. It is a term that is
recognized by the State Supreme Court. Because this is a remedial
statute that is designed to achieve the public purpose of promoting
public health and welfare, the statute will have a liberal
construction if that ever became an issue. She said it does serve
a purpose to leave this provision in the statute, but she suggested
if the committee wants to change it, the term "broadly construed"
could be used in its place.
SENATOR KELLY voiced his concern that if, in fact, it does goes to
court he doesn't want them to "liberally construe" that language,
and he doesn't want to give the court that option.
SENATOR TORGERSON asked if there was objection to the adoption of
Amendment No. 3, and hearing none, he stated it was adopted.
Number 305
SENATOR HOFFMAN moved adoption of the following Amendment No. 4:
Amendment No. 4
Page 2, line 5: Delete "state agencies" and insert "other
qualified entities"
Page 9, line 18: Delete "state agencies" and insert "other
qualified entities"
Page 9, line 20: Delete "state agencies" and insert "other
qualified entity"
Page 9, line 22: Delete "state agencies" and insert "other
qualified entity"
Page 10, line 11: Delete "state agency" and insert "other
qualified entity
Page 11, line 10: Following "1" insert "other qualified entity"
means an intermunicipal or interstate agency as those terms are
used in 33 US>C. 1383, and may include an authority, corporation,
instrumentality, enterprise, or other entity formed through an
agreement between a municipality and one or more other governmental
entities under AS 29.35.010(13) or under art. X. sec. 13,
Constitution of the state of Alaska, or between a municipality and
a regional housing authority under AS 18.55.996(b);
(2)"
Page 11, lines 22 - 25: Delete ";
(2) "state agency" means a department, authority, public
corporation, instrumentality, or other administrative unit of the
executive branch of state government"
SENATOR TORGERSON , explaining the amendment, said the intent is to
take out the references and definition of "state agency" and to
insert "other qualified entity" and its definition in its place.
A "state agency" is not an eligible entity because state agencies
cannot dedicate funds to the repayment of their debt obligations.
Senator Hoffman also requested municipalities and regional housing
authorities be added so they could enter into joint agreements.
MARIE SANSONE stated the department supports the amendment.
Number 310
SENATOR TORGERSON asked if there was objection to the adoption of
Amendment No. 4, and hearing none, he stated it was adopted. He
also stated the four adopted amendments would be incorporated into
a committee substitute.
Number 315
SENATOR RANDY PHILLIPS moved that CSSB 207(CRA) and the
accompanying fiscal notes be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
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