Legislature(2007 - 2008)SENATE FINANCE 532
03/05/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB249 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 249 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 249
"An Act establishing the Alaska capstone avionics
revolving loan fund and relating to the fund; and
providing for an effective date."
GREG WINEGAR, DIRECTOR, DIVISION OF INVESTMENT, DEPARTMENT
OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, expressed
pleasure in being able to play a role in improving air
traffic safety in Alaska. He noted that his agency has the
infrastructure in place to run a program like the capstone
avionics revolving loan fund. The fund provides excellent
terms such as a low interest rate and a manageable repayment
plan for aircraft owners. It pays its own way and will
return the monies to the general fund when it sunsets. He
termed it a win-win situation, both from a public policy
standpoint and from a fiscal standpoint.
Co-Chair Hoffman requested a review of the $4.9 million
fiscal note.
Mr. Winegar explained that the fiscal note is for two
positions to help with the increased work load; a loan
officer and a loan closer. Funds will also be used for new
software and for travel and will come out of the revolving
fund.
Co-Chair Hoffman mentioned great reviews regarding the
demonstration project in the Yukon Kuskokwim Delta.
9:07:55 AM
Senator Elton reported on a potential amendment which would
prevent the fund from being used for refinancing until
December 31, 2013, and only allow the purchasing of
equipment. He requested a response from the department.
Mr. Winegar replied that the department does not have a
problem with such an amendment.
Senator Olson pointed out the target number of 4,000
aircraft and the $4.8 million available for the purchase and
installation of equipment. He wondered what would happen in
the event that there was an overwhelming interest in the
program. He inquired if there is there a provision for more
funding to meet future needs.
Mr. Winegar explained that the $4.8 million would provide
for 400 loans and equip 150 aircraft during the first year.
Because it is a revolving fund, over time, loans could
continue to be made at the rate of about 60 per year. He
related that about $13 million in loans could be made, up
until the end of the sunset date. If there is substantial
interest in the program, an additional request to the
legislature may be made next year. Currently, it is unclear
what the response for the loans will be.
Senator Olson wondered if there is any interest in
installing avionics equipment in state-owned aircraft in the
Department of Public Safety (DPS). He recalled several
accidents in the past. Mr. Winegar said that the intent is
to equip those planes.
9:11:20 AM
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, reported that the Department of Fish and Game is
interested in purchasing capstone equipment for their
aircraft. He thought that DPS had identification concerns
due to using the planes for law enforcement. Capstone
equipped aircraft identifies planes with a tail number.
Senator Olson noted that only a few planes are included in
the law enforcement category. Mr. Richards could not
provide further information.
9:12:50 AM
KAREN CASANOVAS, EXECUTIVE DIRECTOR, ALASKA AIR CARRIERS
ASSOCIATION, ANCHORAGE, testified in support of the bill.
She discussed how federal dollars could be utilized in
conjunction with state matches. She shared figures about
the potential relationship of federal and state monies. She
spoke of the benefit of the loans for economic development.
She explained the relationship of investment in avionics
equipage and the impact on Alaska's economy. Supporting
this bill also supports economic development in the state.
9:16:36 AM
Senator Olson spoke of the great job the air carriers have
done. He asked how the legislature could help get this
program going, such as by making grant money available. Ms.
Casanovas replied that additional grant money would help.
Also, marketing and outreach would be useful.
9:18:13 AM
WILFRED RYAN, PRESIDENT, ALASKA AIR CARRIERS ASSOCIATION,
ANCHORAGE, shared statistics about aircraft accidents and
the possibility of a reduction in accidents due to capstone
equipment. He testified in support of the bill. He noted
challenges in the avionics industry such as expenses to
equip the planes and to provide incentives for owners to
equip their aircraft. He reported on the number of aircraft
that will need to be equipped.
9:22:17 AM
MIKE STEDMAN, DIRECTOR OF OPERATIONS, WINGS OF ALASKA,
JUNEAU, testified in support of SB 249. He shared
information about the potential for capstone equipment to
prevent accidents. He offered ideas for equipping state
airplanes.
Senator Thomas asked when the capstone project was started
in the YK Delta. Mr. Stedman thought it started in 1999.
Juneau has been in the program for about four years and the
research and development phase is scheduled to expire
December 31, 2008. At that time there is a choice to remove
the equipment or buy it from the FAA. He preferred to keep
the equipment for the safety features it provides.
Senator Thomas asked about statistics regarding planes with
and without capstone equipment. Mr. Stedman reported on the
substantial benefit as seen in the 48 percent reduction of
accidents.
9:25:49 AM
Senator Elton referred to Amendment 2, which he had planned
to offer, but which is incorrect from line 14 on. He
offered to clean it up and offer it in the next committee of
referral.
9:27:15 AM
Senator Olson MOVED to REPORT SB 249 out of Committee with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
SB 249 was REPORTED out of Committee with a "do pass"
recommendation and with fiscal note #1 by Department of
Commerce, Community and Economic Development.
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