Legislature(1993 - 1994)

03/23/1993 01:30 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                         March 23, 1993                                        
                            1:30 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chairman                                  
  Representative Con Bunde                                                     
  Representative John Davies                                                   
  Representative Cynthia Toohey                                                
  Representative Ed Willis                                                     
  Representative Bill Williams                                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Eldon Mulder                                                  
  Representative Pat Carney                                                    
  Representative Curt Menard                                                   
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HB 76:   "An Act making a special appropriation to the                      
            Department of Natural Resources for the purchase                   
            of the inholdings of the Seldovia Native                           
            Association and the Cook Inlet Region, Inc., and                   
            the timber rights of the Timber Trading Company,                   
            within the Kachemak Bay State Park; and providing                  
            for an effective date."                                            
                                                                               
            PASSED FROM COMMITTEE WITH INDIVIDUAL                              
            RECOMMENDATIONS                                                    
                                                                               
  Bills previously heard:                                                      
                                                                               
  HB 206:   "An Act relating to the regulation of election                     
            campaigns, and providing for regulation by the                     
            Alaska Public Offices Commission of elections by                   
            electrical cooperatives."                                          
                                                                               
            PASSED FROM COMMITTEE WITH A DO PASS                               
            RECOMMENDATION                                                     
                                                                               
  HB 32:    "An Act relating to reimbursement of school                        
            construction debt; and providing for an effective                  
            date."                                                             
                                                                               
            PASSED FROM COMMITTEE WITH NO RECOMMENDATIONS                      
                                                                               
  HB 20:    "An Act relating to the electrical service                         
            extension fund."                                                   
                                                                               
            PASSED FROM COMMITTEE WITH NO RECOMMENDATIONS                      
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Sandy Nusbaum, Legislative Aide                                              
    to Representative Gail Phillips                                            
  State Capitol, Room 216                                                      
  Juneau, AK  99811-1182                                                       
  Phone: 465-2689                                                              
  POSITION STATEMENT: Read HB 76's sponsor statement                           
                                                                               
  Karin Holser                                                                 
  HC 33 Box 3177 K                                                             
  Wasilla, AK  99654                                                           
  Phone: 376-6231                                                              
  POSITION STATEMENT: Supported HB 76                                          
                                                                               
  Anne Wieland                                                                 
  Kachemak Bay Citizens Coalition - Anchorage Chapter                          
  1421 N St.                                                                   
  Anchorage, AK  99501                                                         
  Phone: 276-5477                                                              
  POSITION STATEMENT: Supported HB 76                                          
                                                                               
  Katya Kirsch                                                                 
  Alaska Environmental Lobby                                                   
  P.O. Box 22151                                                               
  Juneau, AK  99802                                                            
  Phone: 463-3366                                                              
  POSITION STATEMENT: Supported HB 76                                          
                                                                               
  Representative Eldon Mulder                                                  
  State Capitol, Room 116                                                      
  Juneau, AK  99811-1182                                                       
  Phone: 465-2647                                                              
  POSITION STATEMENT: Prime Sponsor, HB 206                                    
                                                                               
  Representative Pat Carney                                                    
  State Capitol                                                                
  Court Building, Room 607                                                     
  Juneau, AK  99811-1182                                                       
  Phone: 465-2186                                                              
  POSITION STATEMENT: Prime Sponsor, HB 32                                     
                                                                               
  Gary Bader, Director                                                         
  Administrative Services                                                      
  Department of Education                                                      
  801 W. 10th Street, Suite 200                                                
  Juneau, AK  99801-1894                                                       
  Phone: 465-2875                                                              
  POSITION STATEMENT: Answered questions on HB 32                              
                                                                               
  Representative Curt Menard                                                   
  Capitol Building, Room 405                                                   
  Juneau, AK  99811-1182                                                       
  Phone: 465-2647                                                              
  POSITION STATEMENT: Prime Sponsor, HB 26                                     
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 76                                                                 
  SHORT TITLE:  APPROP: KACHEMAK BAY ST. PK.TIMBER RIGHTS                      
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) PHILLIPS                                     
  TITLE: "An Act making a special appropriation to the                         
  Department of Natural Resources for the purchase of the                      
  inholdings of the Seldovia Native Association and the Cook                   
  Inlet Region, Inc., and the timber rights of the Timber                      
  Trading Company, within the Kachemak Bay State Park; and                     
  providing for an effective date."                                            
  JRN-DATE     JRN-PG               ACTION                                     
  01/22/93       129    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/22/93       129    (H)   CRA, RESOURCES, FINANCE                          
  03/23/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 206                                                                
  SHORT TITLE:  ELECTIONS AND ELECTRIC COOP ELECTIONS                          
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) MULDER                                       
  TITLE: "An Act relating to the regulation of election                        
  campaigns, and providing for regulation by the Alaska Public                 
  Offices Commission of elections by electrical cooperatives."                 
  JRN-DATE     JRN-PG               ACTION                                     
  03/05/93       553    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/05/93       553    (H)   CRA, STATE AFFAIRS                               
  03/16/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/17/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/17/93              (H)   MINUTE(CRA)                                      
                                                                               
                                                                               
  BILL:  HB 32                                                                 
  SHORT TITLE:  SCHOOL CONSTRUCTION DEBT REIMBURSEMENT                         
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) CARNEY                                       
  TITLE: "An Act relating to reimbursement of school                           
  construction debt; and providing for an effective date."                     
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        32    (H)   PREFILE RELEASED                                 
  01/11/93        32    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        32    (H)   CRA, HES, FINANCE                                
  03/11/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/18/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/19/93              (H)   CRA AT 01:30 PM CAPITOL 124                      
  03/19/93              (H)   MINUTE(CRA)                                      
                                                                               
                                                                               
  BILL:  HB 20                                                                 
  SHORT TITLE:  ELECTRICAL SERVICE EXTENSION FUND GRANTS                       
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) MENARD,Carney                                
  TITLE: "An Act relating to the electrical service extension                  
  fund."                                                                       
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        29    (H)   PREFILE RELEASED                                 
  01/11/93        29    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        29    (H)   CRA, LABOR & COMMERCE, FINANCE                   
  01/20/93       117    (H)   COSPONSOR(S): CARNEY                             
  03/18/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/19/93              (H)   CRA AT 01:30 PM CAPITOL 124                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-17, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN HARLEY OLBERG called the meeting to order at 1:42                   
  p.m.  He noted Representatives Bunde, Williams, Toohey, and                  
  Davies were present.                                                         
  HB 76:  APPROP: KACHEMAK BAY ST. PK. TIMBER RIGHTS                           
                                                                               
  Number 024                                                                   
                                                                               
  SANDY NUSBAUM, LEGISLATIVE AIDE TO REPRESENTATIVE GAIL                       
  PHILLIPS, PRIME SPONSOR OF HB 76, read the sponsor statement                 
  into the record.  (A copy of this sponsor statement may be                   
  found in the House Community and Regional Affairs Committee                  
  Room, Capitol 110, and after the adjournment of the second                   
  session of the 18th Alaska State Legislature, in the                         
  Legislative Reference Library.)                                              
                                                                               
  Representative Jerry Sanders joined the committee at 1:43.                   
                                                                               
  Number 138                                                                   
                                                                               
  KARIN HOLSER, WASILLA, testified in support of HB 76 saying,                 
  "We just heard this morning at the pollution prevention                      
  conference that tourism has surpassed the fisheries and                      
  mining industry here in Alaska, and it just seems to me that                 
  tourists are not going to come down to Homer to look at                      
  clear cutting."                                                              
                                                                               
  Number 160                                                                   
                                                                               
  REPRESENTATIVE BILL WILLIAMS said, "(Do) I understand you                    
  saying that now, we would rather have tourists here than the                 
  timber industry?"                                                            
                                                                               
  MS. HOLSER replied, "All I'm saying is:  The economist from                  
  ISER (Institute of Social and Economic Research) that was                    
  speaking this morning was pointing out that tourism is an                    
  industry that is going to be growing and growing, so we need                 
  to consider it..."                                                           
                                                                               
  REPRESENTATIVE WILLIAMS asked if she agreed with the $22                     
  million dollar price.                                                        
                                                                               
  MS. HOLSER replied, "From everything I've seen yes, it seems                 
  very viable.  We've sort of been putting this issue off and                  
  off and off, and the longer you put it off the higher the                    
  price is going to be.  If it's one that everybody can agree                  
  on then we need to move forward with it.  If we try to get                   
  them to lower the price, I don't think they're in a                          
  negotiating mood because, my personal opinion is, they've                    
  been jerked around long enough."                                             
                                                                               
  Number 204                                                                   
                                                                               
  ANNE WIELAND, ANCHORAGE CHAPTER, KACHEMAK BAY CITIZENS                       
  COALITION, testified in favor of HB 76 saying, "What you                     
  have before you is an opportunity...to solve a longstanding                  
  problem situation in a win-win kind of way.  The                             
  administration has put together a package.  One portion of                   
  which is from the Exxon Valdez Oil Spill Trustee Council:                    
  Money that was approved this January.  A second part of it                   
  is money from the Alyeska Pipeline settlement.  The third                    
  part is Representative Phillips's HB 76," and "We also feel                  
  the $50 million criminal penalty money is the appropriate                    
  source of funding for HB 76 given the language of that                       
  settlement and also given the documented oiling of Kachemak                  
  Bay in 1989..."                                                              
                                                                               
  Number 283                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY asked, "Is there any land                      
  along the waterfront that could be used for development,                     
  small lots for people to build cabins?"                                      
                                                                               
  MS. WIELAND replied, "There are lots of private inholdings                   
  here and there in that area, and some of those are                           
  subdivision holdings...  Additionally, Seldovia Native                       
  Association has an active leasing program in the area on                     
  some of the remaining land they hold just outside the park."                 
                                                                               
  REPRESENTATIVE WILLIAMS said, "I am from a timber industry                   
  area, which is Ketchikan, and I believe that clear-cuts, if                  
  they're done correctly, are good looking."  He then extended                 
  an invitation to Ms. Wieland to show her this.  He added,                    
  "Timber is a renewable resource, it will grow back.  So I                    
  would appreciate it if everybody else would see that this is                 
  better for the state in a different manner than say that                     
  'clear cuts are ugly'."                                                      
                                                                               
  MS. WIELAND said she is familiar with his district and,                      
  "This is not a logging issue.  This is a completion of a                     
  package put together by the administration.  That is how we                  
  view it.  All of us live in wood houses.  I use paper.  As a                 
  result, I am very cognizant of this issue that you raise."                   
                                                                               
  Number 328                                                                   
                                                                               
  KATYA KIRSCH, ASSISTANT, ALASKA ENVIRONMENTAL LOBBY,                         
  testified in support of HB 76 and added, "However, we                        
  believe also that this legislation should address a broader                  
  range of habitat projects around the oil spill affected                      
  area.  The Alaska Environmental Lobby would like to                          
  emphasize that the environmental community, as well as many                  
  other Alaskans, believe the remaining criminal money should                  
  be spent on habitat projects and acquisitions.  These                        
  include acquisitions around Cordova, Frog Neck Island, the                   
  Kenai River, Kodiak Archipelago, and other areas.  Money                     
  should also be set aside for fisheries projects around                       
  Kodiak, Kenai and Prince William Sound to mitigate fisheries                 
  damage by the oil spill."                                                    
                                                                               
  Number 372                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE commented, "It's very difficult for                 
  me to spend seven and a half million dollars to buy dead                     
  trees when I'm under assault for reducing budgets for                        
  schools, seniors, welfare and that sort of thing."                           
                                                                               
  CHAIRMAN OLBERG said, "I think that's why this proposal's                    
  for only seven million."                                                     
                                                                               
  REPRESENTATIVE BUNDE continued, "I feel so much better...                    
  But, as their is such a large constituency that seems to                     
  want this.  I will vote the will of that constituency."                      
                                                                               
  Number 385                                                                   
                                                                               
  CHAIRMAN OLBERG said, "This seems to me to be a bill and an                  
  issue that truly needs to go to the floor of both houses of                  
  the legislature for final resolution."                                       
                                                                               
  REPRESENTATIVE BUNDE MOVED that HB 76 be passed out of                       
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  CHAIRMAN OLBERG called a short at ease from 2:05 to 2:06                     
  p.m.                                                                         
                                                                               
  HB 206:  ELECTIONS AND ELECTRIC COOP ELECTIONS                               
                                                                               
  Number 414                                                                   
                                                                               
  REPRESENTATIVE ELDON MULDER, PRIME SPONSOR OF HB 206,                        
  testified on the two new work drafts he supplied the                         
  committee.  He said, "(The CS with) the last letter K does                   
  not include the amendment as proposed by Representative                      
  Davies.  It does, however, include the amendment by APOC                     
  (Alaska Public Offices Commission).  (The CS with) the                       
  letter O includes both the APOC amendment as well as                         
  Representative Davies' amendment.  The APOC amendment                        
  requires that APOC be notified by the appropriate clerk, to                  
  let them know who the list of candidates are.  I consider                    
  that to be a friendly amendment."                                            
                                                                               
  REPRESENTATIVE MULDER continued, "The Davies' amendment,                     
  includes the stipulation that these cooperatives could opt                   
  out of APOC regulation by a vote of their membership.  After                 
  deliberation, with the individual that actually wrote the                    
  amendment, I concluded that for the spirit and the intent of                 
  the legislation as I drafted it, I would not consider that                   
  to be friendly, in that it should be uniformly addressed and                 
  put to every organization."  He then recommended the                         
  committee adopt the CS for HB 206 numbered 8-LS0686\K.                       
                                                                               
  Number 443                                                                   
                                                                               
  REPRESENTATIVE TOOHEY made the MOTION to ADOPT the 8-                        
  LS0686\K CS as the committee's working draft.                                
                                                                               
  REPRESENTATIVE JOHN DAVIES OBJECTED and said, "There are                     
  many different kinds of communities around this state.  This                 
  would make it mandatory for every community around the state                 
  to be under the APOC regulations.  Some of these problems in                 
  the smaller areas of the state where this might still apply,                 
  however, more than 10,000 customers, have relatively                         
  informal elections.  There aren't large power groups out                     
  there manipulating to control things.  So I think by having                  
  the option to opt out, we would allow the communities to                     
  tailor according to their own likes, what kind of public                     
  process they want."                                                          
                                                                               
  REPRESENTATIVE MULDER said, "We do make an allowance with                    
  the 10,000 customer threshold which, coincidentally, is                      
  probably larger than any of our house districts, in terms of                 
  voting populations...  There are only five rural electric                    
  cooperatives that are included and one municipal telephone                   
  cooperative that is included in that membership."                            
                                                                               
  REPRESENTATIVE TOOHEY gave an example where HB 206 would                     
  have alleviated some problems and been beneficial.                           
                                                                               
  A roll call vote was taken.  Representatives Williams,                       
  Toohey, Olberg and Sanders voted to ADOPT the 8-LS0686\K CS.                 
  Representative Davies voted NO.  The MOTION CARRIED.                         
                                                                               
  Number 510                                                                   
                                                                               
  REPRESENTATIVE DAVIES said, "It's not my experience that                     
  this is a problem and it seems to me this just adds an                       
  unnecessary level of bureaucracy and control.  There's no                    
  problem to be solved here in other areas of the state."  He                  
  then MOVED that "everywhere the figure 10,000 appears in                     
  this bill, as it applies to the number of customers, that it                 
  be amended to 50,000."                                                       
                                                                               
  CHAIRMAN OLBERG said, "I've made some inquiries about,                       
  thinking along those very same lines, and it turns out...the                 
  problem that we're attempting to address is, in fact, Homer.                 
  And Homer is unfortunately, 18,173 (members)."  He then                      
  OBJECTED to Representative Davies' PROPOSED AMENDMENT.                       
                                                                               
  A roll call vote was taken on whether to adopt                               
  Representative Davies most current amendment.                                
  Representatives Williams, Toohey, Olberg, Sanders and Bunde                  
  voted NO.  Representative Davies voted YES.  The MOTION                      
  FAILED.                                                                      
                                                                               
  Number 556                                                                   
                                                                               
  REPRESENTATIVE WILLIAMS MOVED that the 8-LS0686\K CS for HB
  206 be moved out of committee with individual                                
  recommendations.  There were no objections, and the MOTION                   
  CARRIED.                                                                     
                                                                               
  CHAIRMAN OLBERG called a brief at ease between 2:15 and 2:17                 
  p.m.                                                                         
                                                                               
  HB 32:  SCHOOL CONSTRUCTION DEBT REIMBURSEMENT                               
                                                                               
  Number 570                                                                   
                                                                               
  CHAIRMAN OLBERG asked at the onset, "Does this change                        
  anything that we're doing now?  Does this do anything now?"                  
                                                                               
  REPRESENTATIVE PAT CARNEY, PRIME SPONSOR OF HB 32, testified                 
  addressing Chairman Olberg's questions: "Over the years,                     
  quite a number of years in the past, 15 years perhaps or                     
  more, the state agreed to pay a percentage of the debt                       
  service for communities to bond themselves for building                      
  schools.  That percentage has varied from time to time based                 
  on the sentiment of the particular people involved in                        
  passing legislation.  From 50 percent to 90 percent...  In                   
  1989, the bill passed, HB 37, which was supposed to level                    
  the playing field of school construction statewide,                          
  supposedly taking the politics out of school construction,                   
  of prioritizing school construction to be built by the state                 
  at the state's cost without bonding."                                        
                                                                               
  REPRESENTATIVE CARNEY continued, "Unfortunately, because of                  
  the great need for schools in the Bush from a health safety                  
  point...most of the schools that are being funded directly                   
  by the state are being funded in the rural areas.  So I                      
  believe, in order to give some relief to the urban areas                     
  that need schools constructed now, we can't wait until they                  
  come up high on the priority list..."                                        
                                                                               
  Number 593                                                                   
                                                                               
  CHAIRMAN OLBERG asked, "Does this affect bonding that                        
  currently exists...previously incurred debt?"                                
                                                                               
  GARY BADER, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF                 
  EDUCATION (DOE), replied in the negative and said, "This is                  
  an approach for school constructions and municipalities that                 
  would be in addition to the current HB 37 process...  In HB
  37 it's a straight grant by the legislature.  It's a                         
  legislative appropriation to fund school construction.  I                    
  believe what's intended under this bill (HB 32) is that in                   
  addition to that, municipalities would have the opportunity                  
  to bond themselves and to construct schools and get                          
  reimbursed from the state for a portion of the bonding                       
  cost."                                                                       
                                                                               
  REPRESENTATIVE BUNDE pointed out, "There is a provision that                 
  the Department of Education evaluate these requests.  I                      
  don't think it's a blank check."                                             
                                                                               
  Number 626                                                                   
                                                                               
  REPRESENTATIVE CARNEY said, "In fact the requirements for                    
  these schools are identical to the requirements involved in                  
  the priority one schools, that DOE has to go through the                     
  same evaluation process and come up with a determination of                  
  the need for the school."                                                    
                                                                               
  REPRESENTATIVE BUNDE said, "I can easily conceive there will                 
  be more requests than money available.  How are we going to                  
  prioritize?"                                                                 
                                                                               
  REPRESENTATIVE CARNEY said, "In the first place these                        
  payments begin two years after the bond has been incurred.                   
  So there's a two year lag before you have to begin funding.                  
  If it turns out that the funding isn't available, the                        
  legislature simply short-funds.  Instead of getting 70                       
  percent, they get 50 or 40 or whatever we fund."                             
                                                                               
  REPRESENTATIVE BUNDE asked, "If ten people requested and we                  
  had enough money to fund eight at 50 percent, you're saying                  
  then they would spread the money out over all ten at a lower                 
  rate."                                                                       
                                                                               
  Number 640                                                                   
                                                                               
  REPRESENTATIVE CARNEY replied, "I hope that wouldn't happen                  
  but that's what traditionally happens if we run up short of                  
  money.  We prorate based on the requests.                                    
                                                                               
  CHAIRMAN OLBERG asked, "Aren't we already doing that?"                       
                                                                               
  Number 642                                                                   
                                                                               
  REPRESENTATIVE CARNEY said, "On previous bonds that were                     
  sold some years back, we're doing that, I believe."                          
                                                                               
  REPRESENTATIVE DAVIES said, "Those were funded at various                    
  percentages, typically around 80 percent of the 80 percent."                 
                                                                               
  REPRESENTATIVE CARNEY said, "So you see, we've been short-                   
  funding 20 percent on our previous commitments."                             
                                                                               
  CHAIRMAN OLBERG referred to the fiscal note.  (A copy of                     
  this fiscal note may be found in the House Community and                     
  Regional Affairs Committee Room, Capitol 110, and after the                  
  adjournment of the second session of the 18th Alaska State                   
  Legislature, in the Legislative Reference Library.)  He then                 
  asked Mr. Bader if HB 32, aside from administrative fees,                    
  would cost more than what is spent now "because the funds                    
  still have to be appropriated by the legislature and                         
  allocated by the department."                                                
                                                                               
  Number 652                                                                   
                                                                               
  MR. BADER pointed out HB 32 requires a DOE approval, but he                  
  did not know if the approval was prior to the                                
  municipalities' bond or after.                                               
                                                                               
  REPRESENTATIVE DAVIES said, "I can't imagine a municipality                  
  doing that.  There are a lot of questions asked when you try                 
  to put an issue out to bond.  The voters have to approve it.                 
  And if the point was raised that you didn't have approval                    
  for this, I'm sure the bond issue would go down in flames."                  
                                                                               
  Number 681                                                                   
                                                                               
  MR. BADER referred to Chairman Olberg's earlier question on                  
  the DOE's fiscal note.  He said, "We have no idea how many                   
  municipalities might decide to go out and bond for this so                   
  these costs reflected here are simply administrative costs."                 
                                                                               
  REPRESENTATIVE BUNDE suggested current DOE employees "pick                   
  up the program rather than have to hire new employees."                      
                                                                               
  REPRESENTATIVE CARNEY concurred that HB 32 requires the same                 
  tasks that are already being done currently at the DOE.                      
                                                                               
  Number 699                                                                   
                                                                               
  MR. BADER said, "The legislature funded school construction                  
  last year at a level of about 20 to 25 million dollars.                      
  That's a handful of grants...  This program, presumably,                     
  there will be many times that amount of grants to approve."                  
                                                                               
  TAPE 93-17, SIDE B                                                           
  Number 000                                                                   
                                                                               
  MR. BADER continued, "I think it's a valid statement to say                  
  we are looking at the grant requests as they come in, but                    
  primarily what we're doing with them is we're taking them                    
  and putting them on a list and ranking them."                                
                                                                               
  REPRESENTATIVE WILLIAMS agreed most of the work is being                     
  done already and asked how many positions are requested to                   
  work on the school funding bill, HB 83.                                      
                                                                               
  Representative Ed Willis arrived at 2:35 p.m.                                
                                                                               
  MR. BADER indicated two positions, at approximately                          
  $130,000, are included for the school funding bill, HB 83.                   
                                                                               
  REPRESENTATIVE DAVIES clarified, "Most of the schools we're                  
  talking about in terms of the approval part of the process,                  
  have already requested approval.  They're on the list in                     
  some priority ranking right now, so there would be                           
  relatively little, in most cases, additional work required                   
  in that aspect of the project.  If the program were to                       
  blossom into some big program, there may be more ongoing                     
  work in terms of oversight of the projects."  He then                        
  suggested the House Finance Committee address the fiscal                     
  note.                                                                        
                                                                               
  Number 063                                                                   
                                                                               
  REPRESENTATIVE BUNDE pointed out school funding is currently                 
  being discussed in the House Education and Social Services                   
  Committee.  He said, "You're asking for a blanket 30 percent                 
  match which would exclude many of the smaller communities.                   
  But it also would excuse some of these larger communities                    
  that the governor would ask for a 50 percent match.  Have                    
  you given any thought to that kind of graduated scale, three                 
  levels of funding or something like that?"                                   
                                                                               
  REPRESENTATIVE CARNEY replied, "We have to assume that some                  
  of these schools will be built under the Governor's program                  
  of prioritizing schools.  I don't know how many...  It could                 
  be a decision by the community about whether or not they                     
  want to take the 70 - 30 percent in bonding and build                        
  schools they need now, or if they wanted to wait...   I just                 
  think this is an option..."                                                  
                                                                               
  Number 133                                                                   
                                                                               
  REPRESENTATIVE DAVIES made a MOTION to pass HB 32 out of                     
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  HB 20:  ELECTRICAL SERVICE EXTENSION FUND GRANTS                             
                                                                               
  CHAIRMAN OLBERG called an at ease from 2:38 to 2:40 p.m.                     
                                                                               
  REPRESENTATIVE CURT MENARD, PRIME SPONSOR OF HB 20, began by                 
  testifying, "I was involved in the legislation that set up                   
  the small electric grant fund (Title 44.83.370) a few years                  
  ago which was a 60/40 match...  One of the things that upset                 
  me with the way we structured the Alaska Energy Authority                    
  (AEA) fund, was that the Executive Director makes the total                  
  grant applications.  ...Under this bill (HB 20), the AEA                     
  directors would make the decision after receiving the                        
  recommendation from the executive director.  It would also                   
  require the directors to state, in writing, the reasons for                  
  awarding or denying applications."                                           
                                                                               
  REPRESENTATIVE MENARD then read his sponsor statement into                   
  the record.  (A copy of this sponsor statement may be found                  
  in the House Community and Regional Affairs Committee Room,                  
  Capitol 110, and after the adjournment of the second session                 
  of the 18th Alaska State Legislature, in the Legislative                     
  Reference Library.)  He added, "My contention is:  I feel                    
  homesteaders that are on generators on the end of a line                     
  have every bit as equal access to that fund as a large                       
  commercial development.  All I want is a level playing                       
  field."                                                                      
                                                                               
  Number 242                                                                   
                                                                               
  REPRESENTATIVE TOOHEY pointed out she probably has a                         
  conflict of interest because she "lives on a road, seven                     
  miles out" and has no electricity.  She then asked, "Does                    
  this include municipal property?"                                            
                                                                               
  REPRESENTATIVE MENARD was unsure.                                            
                                                                               
  CHAIRMAN OLBERG said, "Almost by definition, this is going                   
  to be people beyond the end of the line.  It isn't going to                  
  be folks in town."                                                           
                                                                               
  Number 288                                                                   
                                                                               
  REPRESENTATIVE DAVIES said, "I don't have any problem with                   
  requiring the directors to consider a cost benefit analysis,                 
  but I think oftentimes public policy considerations come                     
  into play where the right thing to do is not necessarily the                 
  one that's most cost effective."  He added, "I wonder if you                 
  would consider a friendly amendment to modify that in such a                 
  way that it said they shall give consideration to this, but                  
  not necessarily give priority to them."                                      
                                                                               
  REPRESENTATIVE MENARD explained in detail the financial                      
  mechanisms involved with HB 20.                                              
                                                                               
  CHAIRMAN OLBERG said, "You're suggesting that if we                          
  eliminate the lowest costs per customer criteria, we need                    
  some other?"                                                                 
                                                                               
  Number 352                                                                   
                                                                               
  REPRESENTATIVE MENARD said, "Your eight customers would have                 
  to get together with your utility.  You'd have to have all                   
  your eight customers willing to sign up for it.  The utility                 
  would give you the estimate on what it would cost.  They                     
  would tell you what your forty percent is.  You'd have to                    
  divide that forty percent up..."                                             
                                                                               
  REPRESENTATIVE DAVIES said, "My concern is that there are                    
  many varying circumstances around the state, and if we                       
  happen to have a circumstance where there's only five people                 
  at the end of one particular line...  I'm just wondering if                  
  we can allow the board of directors some (discretion)."                      
                                                                               
  CHAIRMAN OLBERG said, "I'm on record as suggesting that you                  
  can't pass a piece of legislation in the state of Alaska                     
  that's equitable throughout the state."                                      
                                                                               
  Number 409                                                                   
                                                                               
  REPRESENTATIVE DAVIES MOVED that HB 20 be passed out of                      
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 2:40 p.m.                           

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