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