Legislature(2003 - 2004)

04/29/2004 08:15 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                                                                            
                       STANDING COMMITTEE                                                                                     
                         April 29, 2004                                                                                         
                           8:15 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Morgan, Chair                                                                                               
Representative Kelly Wolf, Vice Chair                                                                                           
Representative Ralph Samuels                                                                                                    
Representative Albert Kookesh                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Kott                                                                                                        
Representative Tom Anderson                                                                                                     
Representative Sharon Cissna                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328(FIN)                                                                          
"An Act  relating to  the national forest  income program  in the                                                               
Department  of  Community and  Economic  Development  and to  the                                                               
authority  of   the  department  to  adopt   regulations;  making                                                               
conforming amendments; and providing for an effective date."                                                                    
                                                                                                                                
     - MOVED HCS CSSSSB 328(CRA) OUT OF COMMITTEE                                                                               
                                                                                                                                
CS FOR SENATE BILL NO. 190(STA)                                                                                                 
"An Act  adding certain state-owned  land and water to  the Kenai                                                               
River Special Management Area; relating  to the mineral estate of                                                               
the  state-owned  land  and  water in  the  Kenai  River  Special                                                               
Management Area;  relating to the Kenai  River Special Management                                                               
Area advisory board; and providing for an effective date."                                                                      
                                                                                                                                
     - SUBCOMMITTEE MEETING                                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 328                                                                                                                  
SHORT TITLE: NATIONAL FOREST INCOME PROGRAM/DCED REGS                                                                           
SPONSOR(S): SENATOR(S) STEDMAN                                                                                                  
                                                                                                                                
02/13/04       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/04       (S)       CRA, FIN                                                                                               
02/23/04       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
02/23/04       (S)       CRA, FIN                                                                                               
02/25/04       (S)       CRA AT 1:30 PM FAHRENKAMP 203                                                                          
02/25/04       (S)       Moved SB 328 Out of Committee                                                                          
02/25/04       (S)       MINUTE(CRA)                                                                                            
02/27/04       (S)       CRA RPT 3DP 2NR                                                                                        
02/27/04       (S)       DP: STEDMAN, WAGONER, ELTON;                                                                           
02/27/04       (S)       NR: LINCOLN, STEVENS G                                                                                 
03/11/04       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/11/04       (S)       -- Meeting Canceled --                                                                                 
03/24/04       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/24/04       (S)       Heard & Held                                                                                           
03/24/04       (S)       MINUTE(FIN)                                                                                            
03/29/04       (S)       FIN RPT CS 3DP 3NR        SAME TITLE                                                                   
03/29/04       (S)       DP: GREEN, WILKEN, STEVENS B;                                                                          
03/29/04       (S)       NR: DYSON, HOFFMAN, BUNDE                                                                              
03/29/04       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/29/04       (S)       Moved CSSSSB 328(FIN) Out of Committee                                                                 
03/29/04       (S)       MINUTE(FIN)                                                                                            
04/05/04       (S)       FIN CS ADOPTED Y12 N8                                                                                  
04/07/04       (S)       TRANSMITTED TO (H)                                                                                     
04/07/04       (S)       VERSION: CSSSSB 328(FIN)                                                                               
04/13/04       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/04       (H)       CRA, FIN                                                                                               
04/29/04       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR BERT STEDMAN                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of SSSB 328.                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 04-15, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  CARL  MORGAN  called  the  House  Community  and  Regional                                                             
Affairs  Standing  Committee  meeting   to  order  at  8:15  a.m.                                                               
Representatives Morgan,  Wolf, Samuels, and Kookesh  were present                                                               
at the call to order.                                                                                                           
                                                                                                                                
SB 328-NATIONAL FOREST INCOME PROGRAM/DCED REGS                                                                               
                                                                                                                                
CHAIR MORGAN announced that the first order of business would be                                                                
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328(FIN), "An Act                                                                 
relating to the national forest  income program in the Department                                                               
of Community  and Economic  Development and  to the  authority of                                                               
the   department   to   adopt  regulations;   making   conforming                                                               
amendments; and providing for an effective date."                                                                               
                                                                                                                                
Number 0080                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS moved  to adopt  HCS CSSSSB  328, Version                                                               
23-LS1620\Q, Bullock,  4/27/04, as  the working document.   There                                                               
being no objection, Version Q was before the committee.                                                                         
                                                                                                                                
Number 0135                                                                                                                     
                                                                                                                                
SENATOR BERT  STEDMAN, Alaska State Legislature,  sponsor of SSSB
328,  explained  that  the federal  government  has  changed  the                                                               
regulatory  environment for  timber receipts,  and therefore  the                                                               
state has  to modify its statutes  to come into compliance.   The                                                               
federal government  requires that a  small portion of  the timber                                                               
receipts  be  allocated to  something  other  schools and  roads.                                                               
Most  communities have  chosen the  variable program  under which                                                               
the community can choose which programs  to spend the money.  The                                                               
remainder  of   the  monies  are   divided  amongst   the  school                                                               
districts.    The  unified boroughs  receive  allocation  through                                                               
Anchorage while the boroughs that  aren't unified, which consists                                                               
of   a  substantial   portion   of   Southeast  Alaska,   receive                                                               
allocations based on student count.                                                                                             
                                                                                                                                
SENATOR  STEDMAN recalled  that in  the Senate  Finance Committee                                                               
there  was discussion  with  regard to  students  in Craig  being                                                               
counted  that  were  from  areas  outside  the  Tongass  National                                                               
Forest,  which  was   felt  to  be  inappropriate.     There  was                                                               
discussion regarding whether the  boundary should be brought down                                                               
to the boundary  of the Tongass National Forest or  to the school                                                               
district.  The  decision was to bring the boundary  to the school                                                               
district.  However,  Craig is in a unique  situation because, due                                                               
to the  extensive road system  on Prince of Wales,  many students                                                               
are  bussed   or  driven   to  Craig  to   attend  class.     The                                                               
aforementioned   students  wouldn't   be  counted   under  CSSSSB
328(FIN).    Version  Q  would   allow  the  students  physically                                                               
attending school  in Craig to  be counted,  which is fairer.   He                                                               
noted that  some of the  students on  Prince of Wales  don't have                                                               
schools to  go to, and  therefore have to  be bussed to  Craig or                                                               
another  school of  their choice.   Senator  Stedman stated  that                                                               
[Version Q]  also solves the  perceived abuse in which  there was                                                               
an over weighted dollar allocation  going to a select unorganized                                                               
borough  by counting  children outside  of  the Tongass  National                                                               
Forest.                                                                                                                         
                                                                                                                                
SENATOR  STEDMAN acknowledged  that over  the past  four to  five                                                               
years  Craig's  revenue  had  climbed  substantially  under  this                                                               
program, but  Craig is voluntarily  scaling that back  from about                                                               
600 students  to 160  students.   However, under  CSSSSB 328(FIN)                                                               
Craig would've  only been  able to count  six or  seven students.                                                               
He  related  his  understanding   that  Craig  is  supportive  of                                                               
[Version Q].   He  reiterated that the  allocation of  the monies                                                               
within the  unorganized boroughs is  based on student  count, and                                                               
therefore by  not counting  the students  outside of  the Tongass                                                               
National Forest the money goes back  into the total "pot" for the                                                               
unorganized   boroughs  and   is  split   up,  including   Craig,                                                               
Petersburg, Wrangell,  Kake, Hoonah, and  Angoon.  He  noted that                                                               
the Tongass National  Forest and the Chugach  National Forest are                                                               
the two that fall under this plan.                                                                                              
                                                                                                                                
CHAIR MORGAN  surmised then that  all the other  outlying schools                                                               
in the Tongass National Forest receive a slight increase.                                                                       
                                                                                                                                
SENATOR STEDMAN  replied yes,  but pointed  out that  the funding                                                               
source for  this will  end in  2006.  He  emphasized that  it's a                                                               
large  revenue source  for  the smaller  communities  as well  as                                                               
Juneau, Ketchikan, and Sitka.   Therefore, there is a movement to                                                               
get  the   congressional  delegation  to  extend   this  program.                                                               
Senator  Stedman opined  that  he wasn't  sure  that the  program                                                               
could  be extended  at the  same level  it is  today because  the                                                               
total  dollar amounts  were set  during  [better financial  times                                                               
for] timber  in the Tongass  National Forest.  However,  there is                                                               
virtually no  timber being  cut as  compared to  what was  cut 15                                                               
years  ago, which  means that  at  best the  dollar amounts  will                                                               
decrease.   The  loss of  this money  coupled with  the Teachers'                                                               
Retirement  System   (TRS)  is   going  to  create   a  difficult                                                               
situation.                                                                                                                      
                                                                                                                                
Number 0683                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH  thanked Senator  Stedman for  [Version Q]                                                               
because it addresses the Craig  issue, which was the only concern                                                               
he  had  with  the  legislation.   He  noted  that  most  of  the                                                               
communities being discussed are in his district.                                                                                
                                                                                                                                
CHAIR  MORGAN   informed  the  committee  that   he  talked  with                                                               
representatives  from Craig,  which  lead to  the development  of                                                               
[Version Q] with the help of the sponsor.                                                                                       
                                                                                                                                
SENATOR STEDMAN related that he  received word of CSSSSB 328(FIN)                                                               
late in the evening  and if there had been more  time, there is a                                                               
good  chance  that  language  similar  to  that  in  [Version  Q]                                                               
would've been developed.                                                                                                        
                                                                                                                                
CHAIR MORGAN,  upon determining  there was no  one who  wished to                                                               
testify, announced that public testimony was closed.                                                                            
                                                                                                                                
Number 0892                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH  moved to  report HCS CSSSSB  328, Version                                                               
23-LS1620\Q, Bullock,  4/27/04, out of committee  with individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  HCS CSSSSB  328(CRA) was  reported from  the House                                                               
Community and Regional Affairs Standing Committee.                                                                              
                                                                                                                                
SB 190-KENAI RIVER SPECIAL MANAGEMENT AREA                                                                                    
                                                                                                                                
Number 0964                                                                                                                     
                                                                                                                                
The  subcommittee  on  SB  190  met  and  the  recording  of  the                                                               
subcommittee meeting begins at this point on Tape 04-15, Side A.                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Community  and Regional  Affairs Standing  Committee meeting  was                                                               
adjourned at 8:30 a.m.                                                                                                          
                                                                                                                                
                                                                                                                                

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