Legislature(2003 - 2004)

02/03/2004 01:36 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                             HOUSE FINANCE COMMITTEE                                                                            
                                February 03, 2004                                                                               
                                     1:36 PM                                                                                    
                                                                                                                                
          TAPE HFC 04 - 17, Side A                                                                                              
                                                                                                                                
          CALL TO ORDER                                                                                                       
                                                                                                                                
          Co-Chair Williams called the House Finance Committee meeting                                                          
          to order at 1:36 PM.                                                                                                  
                                                                                                                                
          MEMBERS PRESENT                                                                                                     
                                                                                                                                
          Representative John Harris, Co-Chair                                                                                  
          Representative Bill Williams, Co-Chair                                                                                
          Representative Mike Chenault                                                                                          
          Representative Eric Croft                                                                                             
          Representative Hugh Fate                                                                                              
          Representative Richard Foster                                                                                         
          Representative Mike Hawker                                                                                            
          Representative Reggie Joule                                                                                           
          Representative Carl Moses                                                                                             
          Representative Bill Stoltze                                                                                           
                                                                                                                                
          MEMBERS ABSENT                                                                                                      
                                                                                                                                
          Representative Kevin Meyer, Vice-Chair                                                                                
                                                                                                                                
          ALSO PRESENT                                                                                                        
                                                                                                                                
          Senator Fred Dyson; David Teal, Legislative Fiscal Analyst,                                                           
          Legislative Finance.                                                                                                  
                                                                                                                                
          PRESENT VIA TELECONFERENCE                                                                                          
                                                                                                                                
     Dennis Fentie, Premier, Yukon Territories, Canada                                                                          
                                                                                                                                
          SUMMARY                                                                                                             
                                                                                                                                
          CSSB 56(FIN)                                                                                                          
                    An  Act relating to sport fishing  license fees and                                                         
                    anadromous  king salmon  tag fees for  residents of                                                         
                    Yukon,  Canada;  and  providing  for  an  effective                                                         
                    date.                                                                                                       
                                                                                                                                
                    HCS  CSSB  56(FIN) was  REPORTED  out of  Committee                                                         
                    with  a "do  pass"  recommendation and  with  a new                                                         
                    fiscal note by the Department of Fish and Game.                                                             
                                                                                                                                
          HB 413    An Act making an appropriation to reverse the                                                               
                    deposit  of  money available  for appropriation  in                                                         
                    the  general fund  at the end  of fiscal  year 2003                                                         
                    into   the  constitutional  budget   reserve  fund;                                                         
                    making an  appropriation under art. IX, sec. 17(c),                                                         
          Constitution of the State of Alaska, from the                                                                         
          constitutional budget reserve fund; and providing                                                                     
          for an effective date.                                                                                                
                                                                                                                                
          HB 413 was heard and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
CS FOR SENATE BILL 56(FIN)                                                                                                    
                                                                                                                                
     An Act relating to sport fishing license fees and                                                                          
     anadromous king salmon tag fees for residents of Yukon,                                                                    
     Canada; and providing for an effective date.                                                                               
                                                                                                                                
SENATOR  FRED DYSON  spoke  in support  of  CSSB 56(FIN).  He                                                                   
explained that  the Yukon  Territory has amended  regulations                                                                   
to  allow Alaskans  to obtain  resident  fishing licenses  in                                                                   
Canada. Similarly,  this bill  would allow Canadians  to fish                                                                   
Alaskan  waters with resident  license  rates.  He  commented                                                                   
that  Governor Murkowski  and  Premier  Fentie have  recently                                                                   
established   a  broad   memorandum   of  understanding   and                                                                   
cooperation between Alaska and the Yukon Territory.                                                                             
                                                                                                                                
PREMIER  DENNIS  FENTIE, YUKON  TERRITORY,  CANADA  expressed                                                                   
support for SB  56, stating that the goodwill  intent of this                                                                   
legislation  speaks to  the ongoing  cooperation between  the                                                                   
Yukon  Territory   and  Alaska.    He  explained   that  many                                                                   
Canadians  enjoy fishing  but have no  saltwater access.  The                                                                   
communities of Haines and Skagway  have welcomed Canadians to                                                                   
enjoy  coastal fishing  and other  activities, which  support                                                                   
their local economies.  In September 2003, the  Yukon amended                                                                   
its fishing regulations to allow  for license fee reciprocity                                                                   
for Alaskans to  fish the freshwater lakes and  rivers of the                                                                   
Yukon  at resident  rates, contingent  on similar  provisions                                                                   
being enacted for Yukoners to fish in Alaskan waters.                                                                           
                                                                                                                                
Representative Fate asked if there  would be a curtailment of                                                                   
Alaskan residents' ability to  fish in the areas of the Yukon                                                                   
that  are controlled  by guides.   Mr.  Fentie affirmed,  and                                                                   
explained that  fishing would not  be allowed in  areas where                                                                   
fishing  lodges are  located.   The Yukon  has stocked  lakes                                                                   
with char that previously had  no fish, and in certain cases,                                                                   
these  would  be  off limits  to  fishing  by  Alaskans.  The                                                                   
information  would be  readily  available when  a license  is                                                                   
purchased.                                                                                                                      
                                                                                                                                
Co-Chair Harris  clarified that  CSSB 56(FIN) is  the version                                                                   
before the committee.                                                                                                           
                                                                                                                                
Co-Chair Harris MOVED to ADOPT Amendment 1, which reads:                                                                        
                                                                                                                                
     Page 2, line 1:                                                                                                            
                                                                                                                                
          Delete "immediately under AS 01.10.070(c)"                                                                            
                    Insert "January 1, 2005."                                                                                   
                                                                                                                                
     There being NO OBJECTION, Amendment 1 was ADOPTED.                                                                         
                                                                                                                                
          Co-Chair  Williams explained that  the amendment  changes the                                                         
          effective  date to January 1,  2005 because the  licenses for                                                         
          2004 have already been printed.                                                                                       
                                                                                                                                
          Representative  Foster MOVED to  report HCS CSSB  56(FIN) out                                                         
          of   Committee  with   the  accompanying   fiscal   note  and                                                         
          individual  recommendations.   There  being NO  OBJECTION, it                                                         
          was so ordered.                                                                                                       
                                                                                                                                
          HCS  CSSB 56(FIN) was  REPORTED out  of Committee with  a "do                                                         
          pass"  recommendation  and  with a  new  fiscal  note by  the                                                         
          Department of Fish and Game.                                                                                          
                                                                                                                                
          HOUSE BILL NO. 413                                                                                                  
                                                                                                                                
          Representative  Croft explained  that the Legislature  owes a                                                         
          debt  to  the  Constitutional  Budget  Reserve  (CBR)  [under                                                         
          section 17(d), which  requires leftover general fund balances                                                         
          to  be swept  into the  CBR at  the end  of the  fiscal year.                                                         
          These funds are generally  restored by a ¾ vote under section                                                         
          17(c) of the CBR provisions].  He explained that HB 413 would                                                         
          simply reverse  the sweep, and  noted that it's  usual in the                                                         
          CBR  negotiations  that  the  legislature restore  the  small                                                         
          funds.   Representative  Croft   discussed  the   "CBR  Sweep                                                         
          Summary-DRAFT"  (copy on  file.)   He observed  that  the $88                                                         
          million restoration  affects the State  Forestation Fund, the                                                         
          Oil  and Hazardous  Substance Release  Accounts,  the Tobacco                                                         
          Education/Cessation     Fund,    the    Alcohol/Drug    Abuse                                                         
          Treatment/Prevention  Fund, and the Railbelt  Energy Fund. He                                                         
          explained that  because the CBR negotiations  failed to reach                                                         
          agreement  last  year,  these  sub-accounts  were  swept.  He                                                         
          observed that  although the sweep hasn't  had a direct impact                                                         
          on  government yet,  it's becoming  more critical  that these                                                         
          funds be  restored. Representative Croft offered  HB 413 as a                                                         
          goodwill  gesture.    He stated  that  the  bill expresses  a                                                         
          willingness  to put  monies back into  the general  fund sub-                                                         
          accounts  in the hope  of resolving  the larger issue  of the                                                         
          basic withdrawal of the CBR.                                                                                          
                                                                                                                                
     Co-Chair Harris presented conceptual Amendment 1:                                                                          
                                                                                                                                
               Amend section 1 by adding a new subsection to read:                                                              
                                                                                                                                
                    (b) The sum of $125,000 is appropriated from the                                                            
               budget  reserve fund (art. IX, sec.  17, Constitution of                                                         
               the  State  of Alaska)  to  the  Department of  Revenue,                                                         
               treasury  division, for the fiscal year  ending June 30,                                                         
               2004,  for  investment management  fees  for the  budget                                                         
     reserve fund (art. IX, sec. 17, Constitution of the                                                                        
     State of Alaska).                                                                                                          
                                                                                                                                
     Amend existing subsection (b) to read:                                                                                     
                                                                                                                                
          (c)(b) The appropriations in (a)and (b) of     this                                                           
     section are [IS] made under art. IX, sec. 17(c),                                                                       
     Constitution of the State of Alaska.                                                                                       
                                                                                                                                
MR.  DAVID  TEAL,  LEGISLATIVE  FISCAL  ANALYST,  LEGISLATIVE                                                                   
FINANCE confirmed  that the $125  thousand in  CBR management                                                                   
fees  to  Department  of  Revenue,   treasury  division,  was                                                                   
correct.                                                                                                                        
                                                                                                                                
Representative Croft did not object to the amendment, which                                                                     
is the standard amount paid for management of the CBR.                                                                          
                                                                                                                                
There being NO OBJECTION, the conceptual amendment was                                                                          
ADOPTED.                                                                                                                        
                                                                                                                                
HB 413 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 1:54 P.M.                                                                                          
                                                                                                                                
                                                                                                                                

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