Legislature(1993 - 1994)
04/13/1993 01:00 PM CRA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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.