Legislature(1993 - 1994)
03/14/1994 08:30 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 14, 1994
8:30 A.M.
TAPE HFC 94 - 60, Side 1, #000 - end.
TAPE HFC 94 - 60, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf
Representatives Hoffman and Navarre were not present for the
meeting.
ALSO PRESENT
Representative Fran Ulmer; Representative Bettye Davis;
Representative Cliff Davidson; Renee Chatman, Staff to
Representative Bettye Davis; Michael J. Stark, Assistant
Attorney General, Criminal Division, Department of Law;
Richard Collum, Executive Director, Parole Board, Juneau;
Dean Guaneli, Chief, Assistant Attorney General, Legal
Services Section, Criminal Division, Department of Law; Chip
Toma, Self, Juneau; Bill Cotton, (Testified via
teleconference), Executive Director, Alaska Judicial
Council, Anchorage; Diane Schenker, Special Assistant,
Department of Corrections; Kenneth E. Bishcoff, Director,
Division of Administrative Services, Department of
Corrections; Wendy Redman, Vice President for University
Relations, University of Alaska.
SUMMARY
HB 418 An Act extending the termination date of the Board
of Parole; and providing for an effective date.
HB 418 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Corrections dated 3/14/94.
HB 466 An Act authorizing the issuance of bonds by the
Alaska Housing Finance Corporation to pay for the
1
costs of repair and rehabilitation of student
housing facilities of the University of Alaska;
authorizing the issuance of bonds by the
University of Alaska to pay for the costs of
repair and rehabilitation of facilities of the
University of Alaska; amending powers of the
Alaska Housing Finance Corporation; amending the
definition of "public building"; relating to the
Alaska debt retirement fund; and providing for an
effective date.
HB 466 was placed into Subcommittee with
Representative MacLean as Chair and with members
Representative Martin, Representative Grussendorf
and Representative Therriault.
HB 442 An Act relating to criminal justice information;
providing procedural requirements for obtaining
certain criminal justice information; and
providing for an effective date.
CS HB 442 (FIN) was reported out of Committee with
"individual recommendations" and with a fiscal
note by the Department of Corrections and zero
fiscal notes by the Department of Public Safety,
the Department of Law dated 2/04/94, and the
Department of Health and Social Services dated
2/04/94.
HOUSE BILL 418
"An Act extending the termination date of the Board of
Parole; and providing for an effective date."
RENEE CHATMAN, STAFF TO REPRESENTATIVE BETTYE DAVIS, stated
that HB 418 would extend the Board of Parole for the
customary four-year period under A.S. 44.66.101 (c). Under
current law, and without passage of the legislation, the
Board is scheduled to end its operations on June 30, 1994.
She added that the Board was created in 1960 and has been an
essential component of Alaska's criminal justice system.
There are currently 700 felons on paroled supervision. Each
year, about 400 prisoners are eligible to be released to
discretionary parole supervision for a portion of their
sentence. In addition, 500 prisoners are released to
mandatory parole supervision for a period equal to one-third
of their sentence.
Ms. Chatman advised that expiration of the Parole Board
could not alter the state's responsibility under Title 33,
Chapter 16, which provides for prisoners to be eligible for
and supervised on discretionary and mandatory parole.
2
Ms. Chatman explained the changes in the committee
substitute reflect work of the Senate Judiciary Committee
version to SB 286. The committee substitute validates the
long standing practice of the board to establish special
conditions for mandatory parole by one board member.
MICHAEL J. STARK, ASSISTANT ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, explained that Page 3, Lines
14-28 would delete certain conditions of parole which under
present law are discretionary with the Board. The change
would remove certain items, at which time they would become
mandatory conditions of parole. The conditions would not be
deleted, although they would become mandatory conditions of
parole.
RICHARD COLLUM, EXECUTIVE DIRECTOR, PAROLE BOARD, JUNEAU,
stated that under federal law, anyone convicted of a felony
would be prohibited from owning or possessing any type of a
firearm. The Parole Board has added to that language "all
dangerous or deadly weapons".
Representative Martin asked why the legislation had not been
sent to the House Judiciary and House State Affairs
Committee. He pointed out that there was no fiscal note
attached to the legislation and that those two committees
should have been consulted regarding the legality of the
legislation. Mr. Collum replied that changes had been made
in the Senate Judiciary Committee. Representative Martin
emphasized that the House Judiciary Committee should
consider the bill before the House Finance Committee.
Mr. Stark explained the changes. The committee substitute
would define the original purpose and would extend the life
of the Parole Board in order that it may continue to carry
on its constitutional and statutory authorities. The
committee substitute would also establish supplemental
conditions of parole by the entire Board rather than that
determination being made by a single board member. Without
the requested statutory change, the Board will be required
to meet with full membership each time a decision is to be
made. He advised that this has significant fiscal impact on
the State. The committee substitute would also establish
mandatory discretionary conditions of parole.
REPRESENTATIVE BETTYE DAVIS stated that the original bill
would extend the Parole Board. She drafted a committee
substitute to conform to the changes made by the Senate
Judicial Committee. Representative Martin MOVED TO RETURN
the legislation to the House Judiciary Committee.
Representative Hanley echoed Representative Martin's
concerns and pointed out that without a fiscal note the bill
3
would not need to come back to the House Finance Committee.
Representative Davis requested that the Committee vote on
the original bill to extend the Parole Board.
Representative Martin WITHDREW THE MOTION. There being NO
OBJECTION, the motion was withdrawn.
Representative Grussendorf MOVED to report HB 418 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 418 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by the Department of
Correction dated 2/18/94.
HOUSE BILL 442
"An Act relating to criminal justice information;
providing procedural requirements for obtaining certain
criminal justice information; and providing for an
effective date."
DEAN GUANELI, CHIEF, ASSISTANT ATTORNEY GENERAL, LEGAL
SERVICES SECTION, DEPARTMENT OF LAW, stressed the need for
new statutory changes to govern criminal justice information
systems. The systems currently used are twenty years old
and are recognized as out dated by legislative auditors. As
a result, the Department of Public Safety (DPS) contracted
with a nationally known consultant to study the current
systems used and make recommendations for change.
The legislation would provide a board for oversight and
policy guidance of the criminal justice information systems.
It would also provide guidelines for the operation of the
systems and would specifically designate criminal justice
records as confidential and subject to dissemination only as
specific in statute.
Representative Grussendorf asked if there were federal funds
available to match the fiscal note. Mr. Guaneli responded
there are federal funds available which the Department of
Public Safety is currently receiving in order to improve the
Department's systems. The Administration is not aware of
federal funds available to the Department of Corrections or
the Department of Law.
Mr. Guaneli explained that the Board is currently made up of
one public member, one municipal law enforcement chief and
the heads of all State agencies who currently head criminal
justice information systems. He added, that it is the
intent of the legislation to keep the group narrowly focused
and for that reason, no other groups have been included.
4
The role of the Chief Justice was understood to fill the
Judicial Council function, although there has been a request
to broaden the function and include the Judicial Council.
BILL COTTON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA JUDICIAL COUNCIL, ANCHORAGE, commented that
the Judicial Council supports the legislation and urges its
passage.
CHIP TOMA, REPRESENTING HISSELF, JUNEAU, spoke in support of
HB 442. He explained that HB 442 is a similar right to
privacy piece of legislation as introduced by Representative
Terry Miller over 20 years old SJR 9. The purpose of the
legislation addresses the important role of Alaskan's right
to privacy.
Representative Hanley MOVED to adopt CS HB 442 (FIN), #8-
GH2005\J, Luckhaupt, 3/11/94. There being NO OBJECTION, it
was adopted.
(Tape Change, HFC 94-60, Side 2).
Representative Brown suggested including the Judicial
Council to the Parole Board. She MOVED a change to Page 2,
Line 7, inserting "(9) The Executive Director of the Alaska
Judicial Council or the Executive Director's designee".
Representative Hanley asked why the Parole Board and the
Judicial Council were currently separate. Representative
Brown responded that the Judicial Council could assist in
the information systems coordination. There being NO
OBJECTION, the amendment was adopted.
Representative Hanley asked why the Department of
Corrections added $1200 hundred dollars for travel.
DIANE SCHENKER, SPECIAL ASSISTANT, DEPARTMENT OF CORRECTION,
stated that the travel component in the Commissioner's
Office has been reduced to such a degree that it would be
impossible to participate without the additional funds. She
added that there is no position assigned within the
Department for writing policy and procedures and that the
legislation would change duties, resulting in fiscal impact
to the Department. None of the requested funds address the
finger printing component.
Representative Brown asked if the proposed legislation would
make available to the public the location of inmates. Ms.
Schenker stated it would. Representative Brown pointed out
the significant problems with the data processing system in
the Department of Corrections. She recommended adopting the
fiscal note, pointing out that more than training should be
funded in order to provide services for sorting the records
5
and making them more accurate.
KENNETH E. BISHCOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, stated that drafting
the legislation took into consideration the needs of rural
Alaska. He pointed out that the legislation does have
statewide support from police chiefs. The Department of
Public Safety strongly supports HB 442.
Representative Brown MOVED to report CS HB 442 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. Representative Martin asked if
the fiscal note was realistic. Ms. Schenker responded that
the fiscal note does not provide funds for additional finger
printing. She stated that the legislation does specify that
the additional volume of finger printing would be done by
police or correctional agencies. She added that no amount
has been requested for that component as the additional
volume has not yet been determined. There being NO
OBJECTION, it was so ordered.
CS HB 442 (FIN) was reported out of Committee with
"individual recommendations" and with new fiscal notes by
the Department of Corrections, a zero fiscal note by the
Department of Public Safety, the Department of Law dated
2/04/94 and the Department of Health and Social Services
dated 2/04/94.
HOUSE BILL 466
"An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation to pay for the costs of
repair and rehabilitation of student housing facilities
of the University of Alaska; authorizing the issuance
of bonds by the University of Alaska to pay for the
costs of repair and rehabilitation of facilities of the
University of Alaska; amending powers of the Alaska
Housing Finance Corporation; amending the definition of
"public building"; relating to the Alaska debt
retirement fund; and providing for an effective date."
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, FAIRBANKS, explained that after years
of inadequate funding, the backlog of deferred maintenance
projects now totals more than $150 million dollars for the
University of Alaska system. Over the past decade, the
university has sought nearly $180 million dollars for
maintenance projects, and received less than one third of
that amount. The result is that the facilities on every
campus, particularly the oldest campuses in Fairbanks and
Ketchikan, are in a dangerous state of disrepair.
6
She added that the Board of Regents has made capital
improvement maintenance the highest priority and that the
university wants the problem resolved this year either
through passage of bonding legislation or direct
appropriation. Bonds make sense this year because the
state's outstanding debt service is declining and bond
interest rates are low. It is necessary that the bond
holder have lease to the facility during the time while the
bond is being paid off. Certain type of projects are
difficult to bond since there are no tangible assets.
Co-Chair MacLean suggested that a "sunset clause" be added
as the requests are project specific. Ms. Redman understood
that when a bond is issued, there is a certain amount of
time to sell them at the completion of the project.
Ms. Redman added that campus housing is a high priority for
the Anchorage and Juneau campus. The Board of Regents has
not taken a position on the housing concern. She pointed
out that these funds are disproportionate around the state.
Representative Therriault noted that he will not support any
new building around the state until the maintenance concern
is addressed. He asked if there was any other proposed
legislation which addresses new construction. Ms. Redman
replied that SB 229 requests cash for student housing
projects in Anchorage. She added that the Anchorage campus
is the fastest growing campus in the State and no new
facilities have been built for years.
Co-Chair Larson placed HB 466 into a subcommittee chaired by
Representative MacLean and with members Representative
Martin, Representative Grussendorf and Representative
Therriault.
Representative Martin provided the Committee with an
amendment for its consideration incorporating it. [Copy on
file].
HB 466 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 10:00 a.m.
HOUSE FINANCE COMMITTEE
March 14, 1994
8:30 A.M.
TAPE HFC 94 - 60, Side 1, #000 - end.
TAPE HFC 94 - 60, Side 2, #000 - end.
7
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf
Representatives Hoffman and Navarre were not present for the
meeting.
ALSO PRESENT
Representative Fran Ulmer; Representative Bettye Davis;
Representative Cliff Davidson; Renee Chatman, Staff to
Representative Bettye Davis; Michael J. Stark, Assistant
Attorney General, Criminal Division, Department of Law;
Richard Collum, Executive Director, Parole Board, Juneau;
Dean Guaneli, Chief, Assistant Attorney General, Legal
Services Section, Criminal Division, Department of Law; Chip
Toma, Self, Juneau; Bill Cotton, (Testified via
teleconference), Executive Director, Alaska Judicial
Council, Anchorage; Diane Schenker, Special Assistant,
Department of Corrections; Kenneth E. Bishcoff, Director,
Division of Administrative Services, Department of
Corrections; Wendy Redman, Vice President for University
Relations, University of Alaska.
SUMMARY
HB 418 An Act extending the termination date of the Board
of Parole; and providing for an effective date.
HB 418 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Corrections dated 3/14/94.
HB 466 An Act authorizing the issuance of bonds by the
Alaska Housing Finance Corporation to pay for the
costs of repair and rehabilitation of student
housing facilities of the University of Alaska;
authorizing the issuance of bonds by the
University of Alaska to pay for the costs of
repair and rehabilitation of facilities of the
University of Alaska; amending powers of the
Alaska Housing Finance Corporation; amending the
definition of "public building"; relating to the
8
Alaska debt retirement fund; and providing for an
effective date.
HB 466 was placed into Subcommittee with
Representative MacLean as Chair and with members
Representative Martin, Representative Grussendorf
and Representative Therriault.
HB 442 An Act relating to criminal justice information;
providing procedural requirements for obtaining
certain criminal justice information; and
providing for an effective date.
CS HB 442 (FIN) was reported out of Committee with
"individual recommendations" and with a fiscal
note by the Department of Corrections and zero
fiscal notes by the Department of Public Safety,
the Department of Law dated 2/04/94, and the
Department of Health and Social Services dated
2/04/94.
HOUSE BILL 418
"An Act extending the termination date of the Board of
Parole; and providing for an effective date."
RENEE CHATMAN, STAFF TO REPRESENTATIVE BETTYE DAVIS, stated
that HB 418 would extend the Board of Parole for the
customary four-year period under A.S. 44.66.101 (c). Under
current law, and without passage of the legislation, the
Board is scheduled to end its operations on June 30, 1994.
She added that the Board was created in 1960 and has been an
essential component of Alaska's criminal justice system.
There are currently 700 felons on paroled supervision. Each
year, about 400 prisoners are eligible to be released to
discretionary parole supervision for a portion of their
sentence. In addition, 500 prisoners are released to
mandatory parole supervision for a period equal to one-third
of their sentence.
Ms. Chatman advised that expiration of the Parole Board
could not alter the state's responsibility under Title 33,
Chapter 16, which provides for prisoners to be eligible for
and supervised on discretionary and mandatory parole.
Ms. Chatman explained the changes in the committee
substitute reflect work of the Senate Judiciary Committee
version to SB 286. The committee substitute validates the
long standing practice of the board to establish special
conditions for mandatory parole by one board member.
MICHAEL J. STARK, ASSISTANT ATTORNEY GENERAL, CRIMINAL
9
DIVISION, DEPARTMENT OF LAW, explained that Page 3, Lines
14-28 would delete certain conditions of parole which under
present law are discretionary with the Board. The change
would remove certain items, at which time they would become
mandatory conditions of parole. The conditions would not be
deleted, although they would become mandatory conditions of
parole.
RICHARD COLLUM, EXECUTIVE DIRECTOR, PAROLE BOARD, JUNEAU,
stated that under federal law, anyone convicted of a felony
would be prohibited from owning or possessing any type of a
firearm. The Parole Board has added to that language "all
dangerous or deadly weapons".
Representative Martin asked why the legislation had not been
sent to the House Judiciary and House State Affairs
Committee. He pointed out that there was no fiscal note
attached to the legislation and that those two committees
should have been consulted regarding the legality of the
legislation. Mr. Collum replied that changes had been made
in the Senate Judiciary Committee. Representative Martin
emphasized that the House Judiciary Committee should
consider the bill before the House Finance Committee.
Mr. Stark explained the changes. The committee substitute
would define the original purpose and would extend the life
of the Parole Board in order that it may continue to carry
on its constitutional and statutory authorities. The
committee substitute would also establish supplemental
conditions of parole by the entire Board rather than that
determination being made by a single board member. Without
the requested statutory change, the Board will be required
to meet with full membership each time a decision is to be
made. He advised that this has significant fiscal impact on
the State. The committee substitute would also establish
mandatory discretionary conditions of parole.
REPRESENTATIVE BETTYE DAVIS stated that the original bill
would extend the Parole Board. She drafted a committee
substitute to conform to the changes made by the Senate
Judicial Committee. Representative Martin MOVED TO RETURN
the legislation to the House Judiciary Committee.
Representative Hanley echoed Representative Martin's
concerns and pointed out that without a fiscal note the bill
would not need to come back to the House Finance Committee.
Representative Davis requested that the Committee vote on
the original bill to extend the Parole Board.
Representative Martin WITHDREW THE MOTION. There being NO
OBJECTION, the motion was withdrawn.
Representative Grussendorf MOVED to report HB 418 out of
Committee with individual recommendations and with the
10
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 418 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by the Department of
Correction dated 2/18/94.
HOUSE BILL 442
"An Act relating to criminal justice information;
providing procedural requirements for obtaining certain
criminal justice information; and providing for an
effective date."
DEAN GUANELI, CHIEF, ASSISTANT ATTORNEY GENERAL, LEGAL
SERVICES SECTION, DEPARTMENT OF LAW, stressed the need for
new statutory changes to govern criminal justice information
systems. The systems currently used are twenty years old
and are recognized as out dated by legislative auditors. As
a result, the Department of Public Safety (DPS) contracted
with a nationally known consultant to study the current
systems used and make recommendations for change.
The legislation would provide a board for oversight and
policy guidance of the criminal justice information systems.
It would also provide guidelines for the operation of the
systems and would specifically designate criminal justice
records as confidential and subject to dissemination only as
specific in statute.
Representative Grussendorf asked if there were federal funds
available to match the fiscal note. Mr. Guaneli responded
there are federal funds available which the Department of
Public Safety is currently receiving in order to improve the
Department's systems. The Administration is not aware of
federal funds available to the Department of Corrections or
the Department of Law.
Mr. Guaneli explained that the Board is currently made up of
one public member, one municipal law enforcement chief and
the heads of all State agencies who currently head criminal
justice information systems. He added, that it is the
intent of the legislation to keep the group narrowly focused
and for that reason, no other groups have been included.
The role of the Chief Justice was understood to fill the
Judicial Council function, although there has been a request
to broaden the function and include the Judicial Council.
BILL COTTON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA JUDICIAL COUNCIL, ANCHORAGE, commented that
the Judicial Council supports the legislation and urges its
passage.
11
CHIP TOMA, REPRESENTING HISSELF, JUNEAU, spoke in support of
HB 442. He explained that HB 442 is a similar right to
privacy piece of legislation as introduced by Representative
Terry Miller over 20 years old SJR 9. The purpose of the
legislation addresses the important role of Alaskan's right
to privacy.
Representative Hanley MOVED to adopt CS HB 442 (FIN), #8-
GH2005\J, Luckhaupt, 3/11/94. There being NO OBJECTION, it
was adopted.
(Tape Change, HFC 94-60, Side 2).
Representative Brown suggested including the Judicial
Council to the Parole Board. She MOVED a change to Page 2,
Line 7, inserting "(9) The Executive Director of the Alaska
Judicial Council or the Executive Director's designee".
Representative Hanley asked why the Parole Board and the
Judicial Council were currently separate. Representative
Brown responded that the Judicial Council could assist in
the information systems coordination. There being NO
OBJECTION, the amendment was adopted.
Representative Hanley asked why the Department of
Corrections added $1200 hundred dollars for travel.
DIANE SCHENKER, SPECIAL ASSISTANT, DEPARTMENT OF CORRECTION,
stated that the travel component in the Commissioner's
Office has been reduced to such a degree that it would be
impossible to participate without the additional funds. She
added that there is no position assigned within the
Department for writing policy and procedures and that the
legislation would change duties, resulting in fiscal impact
to the Department. None of the requested funds address the
finger printing component.
Representative Brown asked if the proposed legislation would
make available to the public the location of inmates. Ms.
Schenker stated it would. Representative Brown pointed out
the significant problems with the data processing system in
the Department of Corrections. She recommended adopting the
fiscal note, pointing out that more than training should be
funded in order to provide services for sorting the records
and making them more accurate.
KENNETH E. BISHCOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, stated that drafting
the legislation took into consideration the needs of rural
Alaska. He pointed out that the legislation does have
statewide support from police chiefs. The Department of
Public Safety strongly supports HB 442.
12
Representative Brown MOVED to report CS HB 442 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. Representative Martin asked if
the fiscal note was realistic. Ms. Schenker responded that
the fiscal note does not provide funds for additional finger
printing. She stated that the legislation does specify that
the additional volume of finger printing would be done by
police or correctional agencies. She added that no amount
has been requested for that component as the additional
volume has not yet been determined. There being NO
OBJECTION, it was so ordered.
CS HB 442 (FIN) was reported out of Committee with
"individual recommendations" and with new fiscal notes by
the Department of Corrections, a zero fiscal note by the
Department of Public Safety, the Department of Law dated
2/04/94 and the Department of Health and Social Services
dated 2/04/94.
HOUSE BILL 466
"An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation to pay for the costs of
repair and rehabilitation of student housing facilities
of the University of Alaska; authorizing the issuance
of bonds by the University of Alaska to pay for the
costs of repair and rehabilitation of facilities of the
University of Alaska; amending powers of the Alaska
Housing Finance Corporation; amending the definition of
"public building"; relating to the Alaska debt
retirement fund; and providing for an effective date."
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, FAIRBANKS, explained that after years
of inadequate funding, the backlog of deferred maintenance
projects now totals more than $150 million dollars for the
University of Alaska system. Over the past decade, the
university has sought nearly $180 million dollars for
maintenance projects, and received less than one third of
that amount. The result is that the facilities on every
campus, particularly the oldest campuses in Fairbanks and
Ketchikan, are in a dangerous state of disrepair.
She added that the Board of Regents has made capital
improvement maintenance the highest priority and that the
university wants the problem resolved this year either
through passage of bonding legislation or direct
appropriation. Bonds make sense this year because the
state's outstanding debt service is declining and bond
interest rates are low. It is necessary that the bond
holder have lease to the facility during the time while the
13
bond is being paid off. Certain type of projects are
difficult to bond since there are no tangible assets.
Co-Chair MacLean suggested that a "sunset clause" be added
as the requests are project specific. Ms. Redman understood
that when a bond is issued, there is a certain amount of
time to sell them at the completion of the project.
Ms. Redman added that campus housing is a high priority for
the Anchorage and Juneau campus. The Board of Regents has
not taken a position on the housing concern. She pointed
out that these funds are disproportionate around the state.
Representative Therriault noted that he will not support any
new building around the state until the maintenance concern
is addressed. He asked if there was any other proposed
legislation which addresses new construction. Ms. Redman
replied that SB 229 requests cash for student housing
projects in Anchorage. She added that the Anchorage campus
is the fastest growing campus in the State and no new
facilities have been built for years.
Co-Chair Larson placed HB 466 into a subcommittee chaired by
Representative MacLean and with members Representative
Martin, Representative Grussendorf and Representative
Therriault.
Representative Martin provided the Committee with an
amendment for its consideration incorporating it. [Copy on
file].
HB 466 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 10:00 a.m.
14
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