Legislature(2003 - 2004)

05/04/2004 07:48 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 04, 2004                                                                                            
                         7:48 P.M.                                                                                              
                                                                                                                                
TAPE HFC 04 - 105, Side A                                                                                                       
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House  Finance Committee meeting                                                                   
to order at 7:48 P.M.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Harris, Co-Chair                                                                                            
Representative Bill Williams, Co-Chair                                                                                          
Representative Kevin Meyer, Vice-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                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Pete  Ecklund,  House Committee  Staff,  Representative  Bill                                                                   
Williams;   James  Armstrong,   Staff,  Representative   Bill                                                                   
Williams;  John  MacKinnon, Deputy  Director,  Department  of                                                                   
Transportation   and   Public  Facilities;   Diane   Barrans,                                                                   
Executive  Director,   Postsecondary  Education   Commission,                                                                   
Department of Education                                                                                                         
                                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
                                                                                                                                
HB 561    An Act  providing for and relating  to the issuance                                                                   
          of general  obligation bonds in a  principal amount                                                                   
          of  not more  than $1,000,000  for  the purpose  of                                                                   
          paying the  cost of state transportation  projects;                                                                   
          and providing for an effective date.                                                                                  
                                                                                                                                
          CS HB 561 (FIN) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with a  new fiscal                                                                   
          note by the Department of Revenue.                                                                                    
                                                                                                                                
CSSB 337(L&C)                                                                                                                   
          An Act relating to the  powers of the Alaska Energy                                                                   
          Authority to  make grants and loans,  to enter into                                                                   
          contracts,  and  to  improve, equip,  operate,  and                                                                   
          maintain   bulk   fuel,    waste   energy,   energy                                                                   
          conservation,  energy  efficiency, and  alternative                                                                   
          energy  facilities and  equipment; relating  to the                                                                   
          bulk  fuel revolving  loan  fund;  relating to  the                                                                   
          Alaska   Energy  Authority's   liability  for   the                                                                   
          provision   of   technical  assistance   to   rural                                                                   
          utilities;   relating    to   the   Alaska   Energy                                                                   
          Authority's  investment  of the  power  development                                                                   
          fund;  repealing the  electrical service  extension                                                                   
          fund; and providing for an effective date.                                                                            
                                                                                                                                
          HCS CS  SB 337 (FIN) was reported  out of Committee                                                                   
          with  a "no recommendation"  and with zero  note #1                                                                   
          by the  Department of Revenue  and zero note  #2 by                                                                   
          the    Department   of    Community   &    Economic                                                                   
          Development.                                                                                                          
                                                                                                                                
CS FOR SENATE BILL NO. 337(L&C)                                                                                               
                                                                                                                                
     An  Act relating  to  the powers  of  the Alaska  Energy                                                                   
     Authority  to  make  grants  and loans,  to  enter  into                                                                   
     contracts, and to improve,  equip, operate, and maintain                                                                   
     bulk  fuel, waste  energy,  energy conservation,  energy                                                                   
     efficiency,   and  alternative  energy   facilities  and                                                                   
     equipment;  relating  to the  bulk  fuel revolving  loan                                                                   
     fund;   relating  to  the   Alaska  Energy   Authority's                                                                   
     liability for  the provision of technical  assistance to                                                                   
     rural   utilities;  relating   to   the  Alaska   Energy                                                                   
     Authority's  investment of  the power development  fund;                                                                   
     repealing  the electrical  service  extension fund;  and                                                                   
     providing for an effective date.                                                                                           
                                                                                                                                
Representative  Foster MOVED  to  RESCIND previous  Committee                                                                   
action taken  on passing HCS SB  337 (FIN) out  of Committee.                                                                   
There being NO OBJECTION, action was rescinded.                                                                                 
                                                                                                                                
Co-Chair   Williams  observed   that   the  previous   passed                                                                   
amendment had not addressed all the necessary concerns.                                                                         
                                                                                                                                
PETE  ECKLUND,  HOUSE COMMITTEE  STAFF,  REPRESENTATIVE  BILL                                                                   
WILLIAMS, reiterated that Amendment  #1, previously passed by                                                                   
Committee  had been incomplete.   There  are two sections  in                                                                   
law, which  the amendment could  not officially sustain.   He                                                                   
pointed  out  that  Amendment   #2,  #23-GS2076\D.4,  Craver,                                                                   
5/4/04,  would provide  the proper extension  needed  for the                                                                   
ethanol tax credit.  (Copy on File).                                                                                            
                                                                                                                                
Co-Chair    Williams   MOVED    to   ADOPT   Amendment    #2.                                                                   
Representative Hawker  OBJECTED asking if Amendment  #2 would                                                                   
be in addition  to Amendment #1.  Mr. Ecklund  clarified that                                                                   
Amendment #2 would be included  with the Committee's previous                                                                   
taken action.  Representative  Hawker WITHDREW his OBJECTION.                                                                   
                                                                                                                                
There being NO further OBJECTION, Amendment #2 was adopted.                                                                     
                                                                                                                                
Representative  Foster MOVED to  report HCS  CS SB  337 (FIN)                                                                   
out  of Committee  with individual  recommendations and  with                                                                   
the accompanying  fiscal notes.   He asked that  the previous                                                                   
signed committee  report be the  one attached with  the bill.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HCS CS SB 337 (FIN) was reported  out of Committee with a "no                                                                   
recommendation" and  with zero note  #1 by the  Department of                                                                   
Revenue and  zero note  #2 by the  Department of  Community &                                                                   
Economic Development.                                                                                                           
                                                                                                                                
HOUSE BILL NO. 561                                                                                                            
                                                                                                                                
     An Act  providing for  and relating  to the issuance  of                                                                   
     general obligation  bonds in  a principal amount  of not                                                                   
     more than $1,000,000 for  the purpose of paying the cost                                                                   
     of state  transportation projects; and providing  for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
Vice-Chair Meyer  MOVED to RESCIND  previous action  taken in                                                                   
passing CS  HB 561 (FIN)  out of Committee.   There  being NO                                                                   
OBJECTION, action was rescinded.                                                                                                
                                                                                                                                
Vice-Chair Meyer  MOVED to RESCIND  previous action  taken by                                                                   
the  Committee in  adopting  Amendment #1.    There being  NO                                                                   
OBJECTION, the action was rescinded.                                                                                            
                                                                                                                                
Co-Chair Williams  MOVED to ADOPT  the Revised  Amendment #1.                                                                   
(Copy on File).                                                                                                                 
                                                                                                                                
JAMES   ARMSTRONG,  STAFF,   REPRESENTATIVE  BILL   WILLIAMS,                                                                   
explained the new  Amendment #1, which would  add, change and                                                                   
delete  previous  projects,  changing the  total  request  to                                                                   
$93,280 million dollars.  He highlighted the changes:                                                                           
                                                                                                                                
     ·    Anchorage - Jewel Lake Road & Strawberry Road                                                                         
          Signalization                 inclusion $1,100,000                                                                    
     ·    Skagway - Harbor Deferred Maintenance                                                                                 
                                         deletion $1,300,000                                                                    
     ·    Donlin Creek - Crooked Creek/Donlin Creek Access                                                                      
          Road                          inclusion $2,000,000                                                                    
     ·    Changed Statewide Harbor Deferred Maintenance                                                                         
                       Change  from $3,5000,000 to $4,800,000                                                                   
                                                                                                                                
Vice-Chair Meyer  noted that  the distribution list  appeared                                                                   
"out of balance".                                                                                                               
                                                                                                                                
Representative   Croft   believed   that   there   would   be                                                                   
significant  balance  achieved   in  consolidation  with  the                                                                   
education   bond   package   proposed,   and   includes   the                                                                   
University.  He  pointed out that the projects  proposed were                                                                   
addressing critical  needs in Anchorage.  He  reiterated that                                                                   
it  is   important  to  look   at  the  whole   package  when                                                                   
determining the balance.                                                                                                        
                                                                                                                                
Representative  Chenault commented  that there  is a  federal                                                                   
earmark match for  the State Highway System in  the amount of                                                                   
$15  million dollars  to match  the $280  million dollars  of                                                                   
federal  projects.     Mr.   Armstrong  responded   that  the                                                                   
distribution percentage was removing  the $15 million dollars                                                                   
from the  top and  applying the  percentages  used in HB  525                                                                   
from  the FY03  budget.   Using  that calculation,  Anchorage                                                                   
will receive the same amount it did through HB 525.                                                                             
                                                                                                                                
Co-Chair Williams  questioned  the Department's rational  for                                                                   
changing the numbers in the State highway system projects.                                                                      
                                                                                                                                
JOHN    MACKINNON,    DEPUTY    DIRECTOR,    DEPARTMENT    OF                                                                   
TRANSPORTATION  AND  PUBLIC FACILITIES,  explained  that  the                                                                   
Department does not know what  the projects will be and there                                                                   
has  been no  federal  authorization  to date.    There is  a                                                                   
policy  in the Department  that  the State  makes a match  on                                                                   
State owned  projects  and on the  non-State owned  projects,                                                                   
the  communities  are encouraged  to  make  the match.    The                                                                   
additional  language clarifies  that  the  earmarks would  be                                                                   
State  owned   projects.     The  Department  requested   the                                                                   
language.                                                                                                                       
                                                                                                                                
Representative  Croft  observed  that  by  removing  the  $15                                                                   
million  dollars,  Anchorage  has approximately  33%  of  the                                                                   
designated projects.                                                                                                            
                                                                                                                                
There  being  NO  OBJECTION, the  revised  Amendment  #1  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
Vice  Chair   Meyer  asked   if  the   goal  in  making   the                                                                   
determinations  was to  keep the  amount  under $100  million                                                                   
dollars.  Co-Chair Williams responded  that it was his intent                                                                   
to keep all numbers as low as possible.                                                                                         
                                                                                                                                
Representative Foster  MOVED to report CSHB 561  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note and the previous  adopted committee                                                                   
report.  There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
CS HB 561 (FIN) was reported out of Committee with a "do                                                                        
pass" recommendation and with a new fiscal note by the                                                                          
Department of Revenue.                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 8:03 P.M.                                                                                          

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