Legislature(1993 - 1994)

04/13/1993 01:00 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                                      
                         April 13, 1993                                        
                            1:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chairman                                  
  Representative Con Bunde                                                     
  Representative Cynthia Toohey                                                
  Representative Ed Willis                                                     
  Representative Bill Williams                                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative John Davies                                                   
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Richard Foster                                                
                                                                               
  SENATE MEMBERS PRESENT                                                       
                                                                               
  Senator George Jacko                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 70     "An Act relating to state impact aid for                           
            municipalities; and providing for an effective                     
            date."                                                             
                                                                               
            NOT HEARD                                                          
                                                                               
  *HJR 22   Proposing amendments to the Constitution of the                    
            State of Alaska relating to membership of the                      
            legislature.                                                       
                                                                               
            PASSED FROM COMMITTEE WITH INDIVIDUAL                              
            RECOMMENDATIONS                                                    
                                                                               
  SB 154    "An Act relating to the economic development grant                 
            program."                                                          
                                                                               
            CSSB 154 (L&C) PASSED FROM COMMITTEE WITH A DO                     
            PASS RECOMMENDATION                                                
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Senator George Jacko                                                         
  Capitol Building, Room 125                                                   
  Juneau, AK  99801-1182                                                       
  Phone: 465-4942                                                              
  POSITION STATEMENT: Prime Sponsor of SB 154                                  
                                                                               
  Ann Williams, Lobbyist                                                       
  Municipality of Anchorage                                                    
  3001 C Street, #40                                                           
  Anchorage, AK  99503                                                         
  Phone: 343-4461                                                              
  POSITION STATEMENT: Supported CSSB 154 (L&C)                                 
                                                                               
  Don Dietz, Port Director                                                     
  Port of Anchorage                                                            
  2000 Anchorage Port Road                                                     
  Anchorage, AK  99501                                                         
  Phone: 272-1531                                                              
  POSITION STATEMENT: Supported CSSB 154 (L&C)                                 
                                                                               
  Christopher Gates, Director                                                  
  Division of Economic Development                                             
  Department of Commerce and Economic Development                              
  P.O. Box 110804                                                              
  Juneau, AK  99811-0804                                                       
  Phone: 465-2017                                                              
  POSITION STATEMENT: Supported HB 198                                         
                                                                               
  Representative Richard Foster                                                
  State Capitol                                                                
  Court Building, Room 611                                                     
  Juneau, AK  99801-1182                                                       
  Phone: 465-3789                                                              
  POSITION STATEMENT: PRIME SPONSOR OF HJR 22                                  
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 70                                                                 
  SHORT TITLE:  STATE IMPACT AID FOR MUNICIPALITIES                            
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) MACLEAN                                      
                                                                               
  TITLE: "An Act relating to state impact aid for                              
  municipalities; and providing for an effective date."                        
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/18/93       101    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/18/93       101    (H)   CRA, JUDICIARY, FINANCE                          
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  04/01/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  04/06/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  04/13/93              (H)   CRA AT 01:30 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HJR 22                                                                
  SHORT TITLE:  LEGISLATURE OF 25 SENATORS, 50 REPS                            
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) FOSTER,Davidson                              
                                                                               
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska relating to membership of the legislature.                         
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/01/93       197    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/01/93       197    (H)   CRA, STATE AFFAIRS, JUDICIARY,                   
                              FINANCE                                          
  02/05/93       240    (H)   COSPONSOR(S): DAVIDSON                           
  04/13/93              (H)   CRA AT 01:30 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  SB 154                                                                
  SHORT TITLE:  ECONOMIC DEVELOPMENT GRANT FUND                                
  BILL VERSION: CSSB 154(L&C)(EFD FLD)                                         
  SPONSOR(S):   SENATOR(S) JACKO,Halford,Pearce,Kelly,Taylor;                  
  REPRESENTATIVE(S) Moses                                                      
                                                                               
  TITLE: "An Act relating to the economic development grant                    
  program."                                                                    
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/09/93       691    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/09/93       691    (S)   LABOR & COMMERCE, FINANCE                        
  03/15/93       811    (S)   COSPONSOR:  TAYLOR                               
  03/16/93              (S)   L&C AT 01:45 PM FAHRENKAMP ROOM                  
                              203                                              
  03/19/93       876    (S)   L&C RPT  CS  1DP 2NR   (SAME                     
                              TITLE)                                           
  03/19/93       876    (S)   FISCAL NOTE TO SB (DCED)                         
  03/19/93       876    (S)   FISCAL NOTE TO CS (ADM)                          
  03/22/93              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  03/23/93       912    (S)   FIN RPT  7DP (L&C)CS                             
  03/23/93       912    (S)   ZERO FISCAL NOTE (DCED)                          
  03/23/93       912    (S)   PREVIOUS FISCAL NOTE (ADM)                       
  03/24/93       926    (S)   RULES RPT  3CAL 1NR   3/24/93                    
  03/24/93       928    (S)   READ THE SECOND TIME                             
  03/24/93       928    (S)   L&C CS ADOPTED UNAN CONSENT                      
  03/24/93       928    (S)   ADVANCE TO 3RD RDG FLD  Y11 N9                   
  03/24/93       929    (S)   THIRD READING 3/25/93                            
  03/25/93       951    (S)   READ THE THIRD TIME  CSSB                        
                              154(L&C)                                         
  03/25/93       951    (S)   HELD IN 3RD RDG  TO 3/29                         
                              CALENDAR                                         
  03/25/93       952    (S)   COSPONSOR WITHDRAWN:  ZHAROFF                    
  03/29/93       975    (S)   RETURN TO 2ND FOR AM 1    FLD                    
                              Y10 N8 E2                                        
  03/29/93       976    (S)   RETURN TO 2ND FOR AM 2    FLD                    
                              Y10 N8 E2                                        
  03/29/93       976    (S)   RETURN TO 2ND FOR AM 3    FLD                    
                              Y10 N8 E2                                        
  03/29/93       977    (S)   RETURN TO 2ND FOR AM 4    FLD                    
                              Y10 N8 E2                                        
  03/29/93       978    (S)   RETURN TO 2ND FOR AM 5    FLD                    
                              Y10 N8 E2                                        
  03/29/93       978    (S)   HELD TO 3/31 CAL IN 3RD   PSD                    
                              Y10 N8 E2                                        
  03/31/93      1010    (S)   PASSED Y11 N9                                    
  03/31/93      1011    (S)   EFFECTIVE DATE FAILED Y11 N9                     
  03/31/93      1011    (S)   ADAMS  NOTICE OF                                 
                              RECONSIDERATION                                  
  03/31/93              (H)   MINUTE(ECO)                                      
  04/01/93      1029    (S)   RECON TAKEN UP - IN THIRD                        
                              READING                                          
  04/01/93      1030    (S)   PASSED ON RECONSIDERATION Y11                    
                              N9                                               
  04/01/93      1031    (S)   EFFECTIVE DATE FAILED Y11 N9                     
  04/01/93      1049    (S)   TRANSMITTED TO (H)                               
                              CSSB154(L&C)(EFD FLD)                            
  04/02/93       925    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/02/93       925    (H)   CRA, FINANCE                                     
  04/08/93      1137    (H)   CROSS SPONSOR(S): MOSES                          
  04/13/93              (H)   CRA AT 01:30 PM CAPITOL 124                      
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-22, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN HARLEY OLBERG called the meeting to order at 1:37                   
  p.m.  He noted Representatives Willis, Bunde and Sanders                     
  were present.  Representative Williams joined the committee                  
  at 1:38.                                                                     
                                                                               
  SB 154:  ECONOMIC DEVELOPMENT GRANT FUND                                     
                                                                               
  SENATOR GEORGE JACKO, PRIME SPONSOR OF SB 154, testified by                  
  reading his sponsor statement aloud, and referenced the new                  
  version, CSSB 154 (L&C).  (Copies of this sponsor statement                  
  and the committee substitute may be found in the House                       
  Community and Regional Affairs Committee Room, Capitol Room                  
  110, and after the adjournment of the second session of the                  
  18th Alaska State Legislature, in the Legislative Reference                  
  Library.)                                                                    
                                                                               
  SENATOR JACKO added, "In summary, I want to say that this                    
  legislation (CSSB 154 (L&C)) is not intended as a                            
  replacement or a substitute for other capital funding                        
  programs, either in existence or being proposed.  The                        
  economic development grant program is intended as a separate                 
  program within the capital budget for municipalities...to                    
  access grants based solely on economic criteria."                            
                                                                               
  Representative Cynthia Toohey arrived in committee at 1:40.                  
                                                                               
  Number 089                                                                   
                                                                               
  ANN WILLIAMS, LOBBYIST, MUNICIPALITY OF ANCHORAGE, testified                 
  in support of CSSB 154 (L&C) saying, "We were very                           
  enthusiastic when this first came to our attention.  One of                  
  the first things we did was look at some of our highest                      
  priority economic development projects for the future, and                   
  the one we came up with was one with the Port of                             
  Anchorage..."                                                                
                                                                               
  DON DIETZ, PORT DIRECTOR, PORT OF ANCHORAGE, testified, "I                   
  spoke to many of you a little over a month ago explaining a                  
  couple of important capital projects.  One of those projects                 
  was a project that benefited a broad region of the state,                    
  one where an improvement may be done in the immediate area                   
  of the port for road, rail, utility extension and land                       
  development (and) will allow new economic development                        
  products to be brought into the state.  And predominantly,                   
  we are thinking of timber right now...  We believe our land                  
  development capital project grant request which is further                   
  defined in the six criteria, pretty much hits the nail on                    
  the head for this bill (CSSB 154)..."                                        
                                                                               
  MS. WILLIAMS added, "We also wanted to give the committee an                 
  example of something that would work for both the                            
  Municipality of Anchorage and the south central region and                   
  we think this project would fit that criteria."                              
                                                                               
  Number 134                                                                   
                                                                               
  CHAIRMAN OLBERG asked, "What's the source of the funding for                 
  the grants?"                                                                 
                                                                               
  SENATOR JACKO said, "This is enabling legislation that sets                  
  up the program...and sources of funds will be, of course,                    
  general funds passed down in the governor's capital project                  
  bill..."                                                                     
                                                                               
  Number 142                                                                   
                                                                               
  CHAIRMAN OLBERG asked, "The Port of Anchorage is prepared to                 
  do the necessary match?"                                                     
                                                                               
  MR. DIETZ said absolutely and referred to a 70/30 match.                     
                                                                               
  Number 151                                                                   
                                                                               
  VICE-CHAIRMAN JERRY SANDERS asked, "Does this bill (CSSB 154                 
  (L&C)) call for a match?"                                                    
                                                                               
  SENATOR JACKO said, "There's no specific match.  It doesn't                  
  say you have to have 70/30, but the criteria, the way the                    
  bill (CSSB 154 (L&C)) is worded, is if you had 70 versus                     
  someone who had 50, you'd probably get more points, more                     
  likely to be recommended for the money."                                     
                                                                               
  MS. WILLIAMS said, "The way we understand the criteria, you                  
  also need to have private enterprise money..."                               
                                                                               
  MR. DIETZ added, "Basically, our port revenue funds are                      
  generated from profits from Sealand...and other businesses                   
  that come out of the port.  We're sure they are going to                     
  continue to support us in that regard.  We'll come up with                   
  that 2.1 million, I think, very easily if we get funded for                  
  this.  This project is also already designed.  We have all                   
  the permitting done on it and all the wetland mitigation, so                 
  it's ready to go this year, if we get funded."                               
                                                                               
  Number 174                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY asked, "Your profits...do they                 
  go into the municipality?"                                                   
                                                                               
  MR. DIETZ said, "Yes and no.  Actually our funds are                         
  governed by the municipality's monetary and auditing system.                 
  But the Port of Anchorage is like a utility.  It is not tax                  
  supported.  All of its revenues come from its business                       
  customers and leases of the port property to port business                   
  customers."                                                                  
                                                                               
  REPRESENTATIVE TOOHEY clarified, "So you're basically self-                  
  supporting."                                                                 
                                                                               
  MR. DIETZ concurred and said, "We actually contribute about                  
  175 to 200,000 dollars a year to general government for                      
  police, fire protection, and all the amenity things that we                  
  have there within the port..."                                               
                                                                               
  Number 189                                                                   
                                                                               
  REPRESENTATIVE ED WILLIS asked, "How would Anchorage then                    
  apply for this under this bill (CSSB 154 (L&C)?  Who do they                 
  submit their application to and how would it be processed?"                  
                                                                               
  SENATOR JACKO responded, "The application would be submitted                 
  to the review committee which is headed up by OMB (Office of                 
  Management and Budget)...the committee would review their                    
  application and try to make a decision based on the criteria                 
  that's set forth in (the) legislation.  If they think it                     
  meets the criteria, they make the recommendation to the                      
  legislature that the project be funded."                                     
                                                                               
  Number 204                                                                   
                                                                               
  REPRESENTATIVE BILL WILLIAMS asked if smaller communities                    
  had the same criteria.                                                       
                                                                               
  SENATOR JACKO said, "What we've done with the unincorporated                 
  communities is asked that their applications be submitted                    
  through a regional ARDOR (Alaska Regional Development                        
  Organization).  The reason for that was because they felt                    
  the regional ARDORs had a better perspective of the whole                    
  region in terms of what the best economic development                        
  projects would be in the region, and that would reduce the                   
  number of applicants that would be submitted..."                             
                                                                               
  REPRESENTATIVE WILLIAMS asked how Ketchikan would be                         
  included in these ARDOR programs.                                            
                                                                               
  SENATOR JACKO said, "A municipality would be able to submit                  
  directly, unincorporated would go through an ARDOR.  The                     
  ARDOR wouldn't own the project; the project would be owned                   
  by the community."                                                           
                                                                               
  REPRESENTATIVE WILLIAMS proceeded, "So a community as small                  
  as Saxman can qualify for this?"                                             
                                                                               
  SENATOR JACKO said, "Certainly, if it's organized, some sort                 
  of city government or village council or something like                      
  that..."                                                                     
                                                                               
  Number 234                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked, "Is there a limit to the number                 
  of grants utilized every year?"                                              
                                                                               
  SENATOR JACKO said, "The limitation is the amount that we're                 
  able to get out of general funds...  It's up to the                          
  legislature to decide how much to appropriate."                              
                                                                               
  Number 243                                                                   
                                                                               
  VICE-CHAIRMAN SANDERS asked, "Did I understand that one of                   
  the criteria for this is the match, when they go judge on                    
  who they're going to give this money too, the bigger the                     
  match, the more likely you would receive the money?"                         
                                                                               
  SENATOR JACKO confirmed this.                                                
                                                                               
  VICE-CHAIRMAN SANDERS pointed out, "Is it probable then that                 
  all the money's going to rush where all the money is?  The                   
  ones who have the money to help themselves to make a match,                  
  the money's going to rush to them, isn't it?"                                
                                                                               
  SENATOR JACKO said, "Some of the money will be oriented to                   
  those proportions of the state where there is economic                       
  vitality."                                                                   
                                                                               
  Number 256                                                                   
                                                                               
  CHAIRMAN OLBERG said, "Within the rating system is there an                  
  in-kind, similar to the governor's capital matching grant                    
  idea?"                                                                       
                                                                               
  Number 262                                                                   
                                                                               
  CHRIS GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT,                     
  DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified,                  
  "There is no limit on the number of projects, just on the                    
  amount of money...certainly small communities are encouraged                 
  and there's a mechanism, a very easy mechanism for them to                   
  use the ARDORs to access this money.  There is no weighted                   
  score for rural areas.  They would all be competing evenly                   
  against the number of jobs and the amount of economic                        
  activity they say that these projects would create.  The                     
  basis of the judgement for the projects...would be made on                   
  the basis of the six criteria in the bill (CSSB 154 (L&C))."                 
                                                                               
  REPRESENTATIVE ED WILLIS MOVED to PASS CSSB 154 (L&C) out of                 
  committee with individual recommendations.  There were no                    
  objections, and IT SO MOVED.                                                 
                                                                               
  Number 293                                                                   
                                                                               
  HJR 22:  LEGISLATURE OF 25 SENATORS, 50 REPS                                 
                                                                               
  REPRESENTATIVE RICHARD FOSTER, PRIME SPONSOR OF HJR 22,                      
  testified saying, "I put it (HJR 22) in knowing that it                      
  probably wouldn't get anywhere, but I did it just to try to                  
  get various members of the legislature to start thinking of                  
  this concept because I think it's inevitable here, in the                    
  next few years, that this problem will have to be                            
  addressed..."                                                                
                                                                               
  REPRESENTATIVE FOSTER continued, "It (the present system)                    
  makes it prohibitive for the common person, just a regular                   
  working person, to run for election because it's impossible                  
  for most people to get enough campaign funds to be able to                   
  do that.  And it pretty much guarantees the future of an                     
  incumbent and I always thought it was unfair that the size                   
  of these districts kept other people from getting involved                   
  in the legislative process.  That's on the one hand.  On the                 
  other hand, my district is divided into Yupiks and Inupiaks                  
  and it's pretty much even.  Because of the size and the                      
  population required to make a house district, it creates                     
  disunity..."                                                                 
                                                                               
  Number 324                                                                   
                                                                               
  REPRESENTATIVE FOSTER added, "This bill (HJR 22), I was                      
  hoping would address some of those problems, the only                        
  problem is, naturally, its got a big fiscal note...  By                      
  shrinking these areas and increasing the numbers of                          
  Senator's and representatives, I think it'll make                            
  legislators more responsive to the needs of the people...                    
  I'm afraid by the year 2000, Senator Adams's Senate district                 
  will probably become a House district because of the size of                 
  Anchorage and the fact that the urban population tends to                    
  grow drastically faster than does the birth rate of the                      
  rural people."                                                               
                                                                               
  REPRESENTATIVE FOSTER concluded, "That's the way I feel.                     
  I've introduced this bill (HJR 22) as more of an educational                 
  effort for my colleagues and I don't see it going anywhere                   
  but I do hope to get some sympathy and understanding on this                 
  and I think it will come up, possibly not from me in the                     
  years to come, but from somebody else.  I think it's                         
  important enough that it should be addressed by somebody."                   
                                                                               
  Number 390                                                                   
                                                                               
  REPRESENTATIVE WILLIS said, "Back when I was in the                          
  legislature before, there was a concept put forth on                         
  unicameral government.  Have you thought of that concept?"                   
                                                                               
  REPRESENTATIVE FOSTER replied, "When I was a freshman here I                 
  thought that would be the most efficient, effective way of                   
  getting things done, in that there's no time delay in trying                 
  to address the plight of the poor, for example, or issues                    
  even though they might be controversial...but the longer I'm                 
  here, the more it frightens me that if there's only one                      
  legislative body and you had some real stinking legislation                  
  coming from the other side, there's no way to stop it and I                  
  can't help but think that one checkmates the other and the                   
  cost of delay and everything is worth the terror that it                     
  might bring down."                                                           
                                                                               
  CHAIRMAN OLBERG joked, "And there wouldn't be another body                   
  to blame everything on either."                                              
                                                                               
  Number 407                                                                   
                                                                               
  VICE CHAIR SANDERS asked, "Wouldn't it help your fiscal note                 
  substantially if you put the effective date of this off to                   
  2002?  That way it could all be incorporated with the new                    
  reapportionment rather than try to reapportion in the middle                 
  of things?"                                                                  
                                                                               
  REPRESENTATIVE FOSTER said, "A lot of the agencies that                      
  don't like a certain concept you advance will give you a big                 
  fiscal note.  I don't mind that so much, I just want the                     
  forum to explain the frustration of the Bush, and whether                    
  it's one million or five million, it's almost mute to me.  I                 
  don't see this really going anywhere right now..."                           
                                                                               
  Number 426                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE said, "I support your idea, I can                   
  only imagine the frustration of these huge areas and trying                  
  to navigate around there.  But I also share your concern                     
  about the huge fiscal note...I wish we could back up a year                  
  and have this come up before reapportionment instead of                      
  after reapportionment..."                                                    
                                                                               
  CHAIRMAN OLBERG said, "My district is fairly compact                         
  compared to some, but it's still an all day trip to get from                 
  one end to the other.  To get to Cordova, I have to drive to                 
  Fairbanks and get on a plane..."                                             
                                                                               
  REPRESENTATIVE FOSTER said, "It took me all summer to hit 30                 
  villages in my district..."                                                  
                                                                               
  Number 467                                                                   
                                                                               
  REPRESENTATIVE BUNDE said, "To add to the discussion, my                     
  district is three miles by six miles...a tank of gas costs                   
  me a lot less."                                                              
                                                                               
  REPRESENTATIVE FOSTER said, "I did not introduce this bill                   
  (HJR 22) with any intention of it making it to the floor but                 
  I would appreciate a consideration, if I could have the same                 
  forum that I'm having with you, before the finance                           
  committee.  We know it's not going anywhere with the finance                 
  committee because of the fiscal note, but if it's your                       
  pleasure to hold it that's fine with me too.  At least I've                  
  had the honor of talking with each of you today and I                        
  appreciate your time."                                                       
                                                                               
  Number 477                                                                   
                                                                               
  REPRESENTATIVE WILLIAMS MOVED to PASS HJR 22 out of                          
  committee with individual recommendations.  There were no                    
  objections, and IT SO MOVED.                                                 
                                                                               
  Number 481                                                                   
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 2:15 p.m.                           

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