Legislature(2007 - 2008)HOUSE FINANCE 519

04/13/2007 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 133 ELECTRONIC MONITORING OF GANG PROBATIONER TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 28 POWER SOURCE DISCLOSURE TELECONFERENCED
Moved CSHB 28(FIN) Out of Committee
+= HB 229 KENAI GASIFICATION PROJECT; RAILROAD BOND TELECONFERENCED
Moved Out of Committee
+= HB 152 ESTABLISHING A RENEWABLE ENERGY FUND TELECONFERENCED
Moved CSHB 152(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 13, 2007                                                                                           
                         1:46 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:46:12 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Richard Foster                                                                                                   
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Jay  Ramras; Patrick Gamble, President  & CEO,                                                                   
Alaska Railroad Corporation; Lisa  Parker, Corporate Affairs,                                                                   
Agrium, Inc.;  Charisse Millet,  Staff, Speaker John  Harris;                                                                   
Kaci   Schroeder-Hotch,    Staff,   Representative    Thomas;                                                                   
Representative  Bob  Buch;  Rick  Svobodny,  Chief  Assistant                                                                   
Attorney General,  Legal Services Section -  Juneau, Criminal                                                                   
Division,   Department  of   Law;   Dwayne  Peeples,   Deputy                                                                   
Commissioner, Department of Corrections                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Sarah  Fisher-Goad,  Deputy Director  of  Operations,  Alaska                                                                   
Energy Authority;  Chris Rose, Executive  Director, Renewable                                                                   
Energy   Alaska  Project   (REAP);   Katherine  Lamal,   Vice                                                                   
President  of  Power,  Golden  Valley  Electric  Association;                                                                   
Connie Fredenberg,  Community Development,  Aleutian Pribilof                                                                   
Islands  ASS Association  (APIA); Meera  Kohler, President  &                                                                   
CEO,  Alaska  Village Electric  Cooperative;  Gwen  Holdmann,                                                                   
Vice  President of  Development,  Chena  Hot Springs  Resort;                                                                   
Gardner Cobb, Gang Unit, Anchorage Police Department                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 28     "An Act requiring retail suppliers of electricity                                                                     
          to disclose sources of electricity to consumers."                                                                     
                                                                                                                                
          CSHB 28 (FIN) was REPORTED  out of Committee with a                                                                   
          "no recommendation"  and with fiscal note #1 by the                                                                   
          Department  of  Commerce,  Community  and  Economic                                                                   
          Development.                                                                                                          
                                                                                                                                
HB 229    "An   Act    authorizing   the    Alaska   Railroad                                                                   
          Corporation to participate  in a project consisting                                                                   
          of  the  acquisition,   construction,  improvement,                                                                   
          maintenance,  equipping, or  operation of  real and                                                                   
          personal   property,   including   facilities   and                                                                   
          equipment,  for  the  Kenai  gasification  project,                                                                   
          authorizing  the  corporation  to  issue  bonds  to                                                                   
          finance  all  or  a  portion of  the  project,  and                                                                   
          identifying these as  bonds for an essential public                                                                   
          and  governmental  purpose;  and providing  for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          HB  229 was REPORTED  out of  Committee with  a "no                                                                   
          recommendation"  and with a new fiscal  note by the                                                                   
          Department  of  Commerce,  Community  and  Economic                                                                   
          Development.                                                                                                          
                                                                                                                                
HB 152    "An Act establishing a renewable energy fund and                                                                      
          describing its uses and purposes."                                                                                    
                                                                                                                                
          CSHB 152  (FIN) was REPORTED out of  Committee with                                                                   
          a  "do  pass"  recommendation   and  with  two  new                                                                   
          indeterminate  fiscal  notes by  the Department  of                                                                   
          Commerce, Community and Economic Development.                                                                         
                                                                                                                                
HB 133    "An   Act   relating    to   requiring   electronic                                                                   
          monitoring as a special  condition of probation for                                                                   
          offenders whose  offense was related to  a criminal                                                                   
          street gang."                                                                                                         
                                                                                                                                
          HB 133 was heard and  HELD in Committee for further                                                                   
          consideration.                                                                                                        
                                                                                                                                
1:46:28 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 28                                                                                                             
                                                                                                                                
     "An Act requiring retail suppliers of electricity to                                                                       
     disclose sources of electricity to consumers."                                                                             
                                                                                                                                
REPRESENTATIVE  JAY   RAMRAS,  sponsor,  addressed   concerns                                                                   
raised  by a drafting  error.   Amendment #2  will address  a                                                                   
concern  about  exempting  small utilities  and  will  delete                                                                   
wording to correct a drafting error.                                                                                            
                                                                                                                                
1:48:35 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #1:                                                                                
                                                                                                                                
    Page 1, line 1, following "sources of electricity":                                                                       
     Insert "and emissions"                                                                                                   
                                                                                                                                
     Page 1, line 13, following "sources":                                                                                    
     Insert "and emissions"                                                                                                   
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "* Sec. 3. AS 42.05.695, as enacted by sec. 2 of this                                                                    
    Act, is amended by adding a new subsection to read:                                                                         
          (c) The retail supplier shall disclose to the                                                                         
     consumer the supplier's best estimate of carbon dioxide                                                                    
     emissions per billion BTU or other unit of energy                                                                          
     output that is understandable by consumers."                                                                               
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, following line 29:                                                                                                 
     Insert a new bill section to read:                                                                                         
     "*Sec. 7. Section 3 of this Act takes effect January 1,                                                                  
     2009."                                                                                                                     
                                                                                                                                
Representative  Gara  explained   that  the  amendment  would                                                                   
provide  information   to  consumers  about   carbon  dioxide                                                                   
emissions.    It would  also  delay  the effective  date  for                                                                   
Section 3 for another year.                                                                                                     
                                                                                                                                
Representative Ramras preferred the bill to stand as it is                                                                      
without the amendment.                                                                                                          
                                                                                                                                
Representative Gara argued in support of the amendment.                                                                         
                                                                                                                                
1:51:29 PM                                                                                                                    
                                                                                                                                
Representative Kelly spoke in support of the bill and                                                                           
against the amendment.                                                                                                          
                                                                                                                                
Co-Chair Meyer MAINTAINED his OBJECTION.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara                                                                                                                  
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer                                                                                  
                                                                                                                                
Representatives Crawford, Foster, Joule, Nelson, and                                                                            
Chenault were absent for the vote.                                                                                              
                                                                                                                                
The MOTION FAILED (1-5).                                                                                                        
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment #2:                                                                                     
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new subsection to read:                                                                                           
          "(c) An electric utility that does not gross more                                                                     
     than $5,000,000  annually is exempt from  the provisions                                                                   
     of this section."                                                                                                          
                                                                                                                                
     Page 2, lines 21 - 25:                                                                                                     
     Delete all material.                                                                                                       
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative   Ramras   explained   that   this   amendment                                                                   
addresses a  concern brought forth by Representative  Hawker.                                                                   
It exempts utilities  that do not gross more  than $5 million                                                                   
a year.                                                                                                                         
                                                                                                                                
Representative Kelly  commented that rural power  is the most                                                                   
expensive power produced.  He agreed to try the exemption.                                                                      
                                                                                                                                
Representative  Hawker WITHDREW his  objection.   There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
1:56:37 PM                                                                                                                    
                                                                                                                                
Vice  Chair Stoltze  MOVED to  REPORT  CSHB 28  (FIN) out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  28 (FIN)  was  REPORTED  out of  Committee  with a  "no                                                                   
recommendation" and with fiscal  note #1 by the Department of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
1:57:57 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 229                                                                                                            
                                                                                                                                
     "An Act  authorizing the Alaska Railroad  Corporation to                                                                   
     participate in a project  consisting of the acquisition,                                                                   
     construction,  improvement,  maintenance, equipping,  or                                                                   
     operation  of  real  and  personal  property,  including                                                                   
     facilities  and equipment,  for  the Kenai  gasification                                                                   
     project, authorizing  the corporation to issue  bonds to                                                                   
     finance   all  or   a  portion   of  the  project,   and                                                                   
     identifying these  as bonds for an essential  public and                                                                   
     governmental  purpose; and  providing  for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
DEVEN  MITCHELL, EXECUTIVE  DIRECTOR,  ALASKA MUNICIPAL  BOND                                                                   
BANK  AUTHORITY, DEPARTMENT  OF  REVENUE,  offered to  answer                                                                   
questions.                                                                                                                      
                                                                                                                                
Representative Hawker  asked Mr. Mitchell if  the legislation                                                                   
causes any problems for the state.                                                                                              
                                                                                                                                
Mr. Mitchell explained that it  appears that a double benefit                                                                   
will be gained  by this legislation: developing use  of a raw                                                                   
resource  with the  coal and  anchoring Agrium  in the  Kenai                                                                   
Peninsula where it has a huge  economic impact.  He addressed                                                                   
non-recourse revenue  bonds where  the railroad has  a unique                                                                   
ability to  contemplate issuing industrial  development bonds                                                                   
that are  now precluded by  the Tax Reform  Act of 1986.   He                                                                   
suggested that the project, as proposed, makes sense.                                                                           
                                                                                                                                
Representative Hawker spoke of  a concern over the industrial                                                                   
development bonds and the effect  on the state's rating.  Mr.                                                                   
Mitchell replied  that it  should have  not impact  and there                                                                   
has never been  an issue in that regard.  He  gave an example                                                                   
of development bonds from the City of Valdez.                                                                                   
                                                                                                                                
2:02:12 PM                                                                                                                    
                                                                                                                                
Representative Gara asked how  a railroad that generated such                                                                   
large  profits last  year  can issue  $2.6  billion worth  of                                                                   
bonds.  Mr. Mitchell responded  that the market would have to                                                                   
validate a high probability of success.                                                                                         
                                                                                                                                
Representative  Gara asked about  a state-owned  gas pipeline                                                                   
and its effect on the bonding.   Mr. Mitchell replied that it                                                                   
would have no impact on this bonding proposal.                                                                                  
                                                                                                                                
Representative    Kelly    wondered   about    pulling    the                                                                   
authorization  some time  in  the future  if  it doesn't  get                                                                   
used.   Mr. Mitchell  reported that once  the bond  is issued                                                                   
there are contractual issues.   Representative Kelly restated                                                                   
the question.   Mr. Mitchell explained that if  the bonds are                                                                   
not issued, statute can be changed.                                                                                             
                                                                                                                                
2:05:25 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #1:                                                                                
                                                                                                                                
     Page 4, line 4, following "this Act,":                                                                                     
     Insert "and  compliance with  the requirement of  (b) of                                                                   
     this section,"                                                                                                             
                                                                                                                                
     Page 4, following line 23:                                                                                                 
     Insert a new subsection to read:                                                                                           
     "(b)   The  Alaska Railroad  Corporation  may not  issue                                                                   
     bonds under  the authorization  and approval set  out in                                                                   
     this  section  unless the  Department  of  Environmental                                                                   
     Conservation  certifies that  the coal gasification  and                                                                   
     electrical  power generation  facility will be  designed                                                                   
     and  operated in  a manner  that does  not release  more                                                                   
     carbon  dioxide  into the  atmosphere,  per megawatt  of                                                                   
     power   produced,  than   the  average  carbon   dioxide                                                                   
     released per megawatt during calendar year 2006 by the                                                                     
     Beluga natural gas power plant, located on the western                                                                     
     coast of Cook Inlet."                                                                                                      
                                                                                                                                
     Re-letter the following subsections accordingly.                                                                           
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative Gara  explained that the amendment  deals with                                                                   
carbon emissions from the coal  plant.  He wanted to regulate                                                                   
carbon emissions in exchange for the bonding request.                                                                           
                                                                                                                                
Co-Chair  Meyer  noted  that Co-Chair  Chenault  was  not  in                                                                   
support of  the amendment.   He  said he sees  the bill  as a                                                                   
financial tool.                                                                                                                 
                                                                                                                                
2:08:26 PM                                                                                                                    
                                                                                                                                
Representative Kelly spoke strongly against Amendment #1.                                                                       
                                                                                                                                
LISA PARKER, CORPORATE AFFAIRS,  Agrium, testified that there                                                                   
are regulations already in place regarding this issue.                                                                          
                                                                                                                                
Representative  Gara emphasized  the  importance of  limiting                                                                   
carbon emissions  and the problem  of the greenhouse  effect.                                                                   
He requested pro-active steps to reduce carbon emissions.                                                                       
                                                                                                                                
Co-Chair Meyer spoke against Amendment #1.                                                                                      
                                                                                                                                
Representative Kelly  explained his beliefs  regarding global                                                                   
warming.  He  termed the amendment irresponsible  relative to                                                                   
global warming.                                                                                                                 
                                                                                                                                
2:13:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MAINTAINED his objection.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Nelson                                                                                                          
OPPOSED: Thomas, Hawker, Kelly, Stoltze, Meyer                                                                                  
                                                                                                                                
Representatives  Crawford, Foster,  Joule, and Chenault  were                                                                   
absent for the vote.                                                                                                            
                                                                                                                                
The MOTION FAILED (2-5).                                                                                                        
                                                                                                                                
2:15:13 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  acknowledged   a  concern  about  the                                                                   
impact of the  bill on the state; however,  he stated support                                                                   
for the bill in its present form.                                                                                               
                                                                                                                                
Vice  Chair Stoltze  stated concerns  by the  Mat-Su about  a                                                                   
rail extension  to Port McKenzie  being shut out due  to this                                                                   
bill.  He referred to a letter  from the Mat-Su Borough (copy                                                                   
on file.)  He spoke in support  of the Agrium project but not                                                                   
at the  expense of the Port  McKenzie project.   He mentioned                                                                   
that the Mayor of Wasilla has  had no contact with the Alaska                                                                   
Railroad Corporation  (ARRC).  He brought out  concerns about                                                                   
the  Port  of  Anchorage  route.   He  concluded  by  stating                                                                   
support for the bill.                                                                                                           
                                                                                                                                
2:22:28 PM                                                                                                                    
                                                                                                                                
PAT GAMBLE,  PRESIDENT AND CEO, ALASKA  RAILROAD CORPORATION,                                                                   
thought  that  Vice  Chair  Stoltze  was  correct  about  the                                                                   
Wasilla-to-Anchorage  corridor problems.   He spoke  in favor                                                                   
of the  extension to Port  McKenzie, but thought  the project                                                                   
decision was up to Agrium.  It  is not a preference issue for                                                                   
the railroad;  at issue  is the  urgency and  need to  meet a                                                                   
timeline.  The  railroad is the easiest component,  but works                                                                   
in response to Agrium's direction.                                                                                              
                                                                                                                                
Vice  Chair  Stoltze  apologized  for  the use  of  the  word                                                                   
"cavalier" in reference to ARRC.                                                                                                
                                                                                                                                
Representative Thomas asked about  the Beluga Coal Mine route                                                                   
and the  possibility of saving  money.  Ms. Parker  said that                                                                   
had been looked into and both options are being considered.                                                                     
                                                                                                                                
2:29:30 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED to REPORT  HB 229 out  of Committee                                                                   
with  individual  recommendations   the  accompanying  fiscal                                                                   
note.  There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
CSHB  229 (FIN)  was REPORTED  out  of Committee  with a  "no                                                                   
recommendation" and with a new  fiscal note by the Department                                                                   
of Commerce, Community and Economic Development.                                                                                
                                                                                                                                
2:30:47 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 152                                                                                                            
                                                                                                                                
     "An Act establishing a renewable energy fund and                                                                           
     describing its uses and purposes."                                                                                         
                                                                                                                                
CHARISSE  MILLET,   STAFF,  SPEAKER  JOHN   HARRIS,  sponsor,                                                                   
explained the purpose  behind HB 152.  The high  cost of fuel                                                                   
in  Alaska has  made it  increasingly  difficult for  Alaskan                                                                   
residents to prosper.  Home heating  fuel and gasoline prices                                                                   
have  skyrocketed   in  recent  years  leaving   some  Alaska                                                                   
families,  who already struggle  to make  ends meet,  left to                                                                   
prioritize between basic necessities  of life: heat, food, or                                                                   
health  care.   The bill  contains  recommendations from  the                                                                   
Alaska Energy Policy Task Force formed in 2003.                                                                                 
                                                                                                                                
With the bill, Alaska would be  one of 40 states to institute                                                                   
a policy on renewable energy.                                                                                                   
                                                                                                                                
Ms. Millet  reported that the  bill accomplishes  two things:                                                                   
provides for  a revolving loan  fund under the  Alaska Energy                                                                   
Authority  (AEA)  and  has  a  grant  component.    There  is                                                                   
currently no funding mechanism  for the fund.  The bill seeks                                                                   
only to establish the fund in statute.                                                                                          
                                                                                                                                
2:33:37 PM                                                                                                                    
                                                                                                                                
KACI  SCHROEDER-HOTCH,  STAFF,   REPRESENTATIVE  THOMAS,  co-                                                                   
sponsor, explained  the sections of the bill.   She mentioned                                                                   
that a  natural gas project could  also qualify for  a grant.                                                                   
She explained the makeup of the advisory committee.                                                                             
                                                                                                                                
2:36:38 PM                                                                                                                    
                                                                                                                                
SARAH  FISHER-GOAD,  DEPUTY DIRECTOR  OF  OPERATIONS,  ALASKA                                                                   
ENERGY AUTHORITY, testified in  support of HB 152.  She spoke                                                                   
of  the  intentions  of  the  renewable  energy  fund.    She                                                                   
suggested an  amendment which  would allow the  Department of                                                                   
Revenue to be the investment manager of the new fund.                                                                           
                                                                                                                                
2:38:14 PM                                                                                                                    
                                                                                                                                
CHRIS  ROSE,  EXECUTIVE  DIRECTOR,  RENEWABLE  ENERGY  ALASKA                                                                   
PROJECT  (REAP),  testified  in   support  of  HB  152.    He                                                                   
explained that there are no fuel  costs related to generating                                                                   
renewable energy.   The bill would  create a fund  similar to                                                                   
ones in  15 other  states, and  will attract  capital to  the                                                                   
state.                                                                                                                          
                                                                                                                                
KATHERINE  LAMAL,  VICE  PRESIDENT OF  POWER,  GOLDEN  VALLEY                                                                   
ELECTRIC   ASSOCIATION,   testified   in   support   of   the                                                                   
legislation, which  would help jumpstart renewable  energy in                                                                   
Alaska and show that Alaska is a forward-looking state.                                                                         
                                                                                                                                
2:41:27 PM                                                                                                                    
                                                                                                                                
CONNIE FREDENBERG,  COMMUNITY DEVELOPMENT,  ALEUTIAN PRIBILOF                                                                   
ISLANDS  ASSOCIATION  (APIA),  testified  in support  of  the                                                                   
legislation.   She noted that  the Aleutian Islands  have had                                                                   
renewable  energy for the  past four  years.  She  maintained                                                                   
that  the technology  exists and  that much  of Alaska  could                                                                   
benefit  from renewable  resources.   Displacing diesel  fuel                                                                   
with  renewable  resources  is  a long-term  solution.    She                                                                   
stressed the need  for the political will to  make it happen.                                                                   
She  maintained  that  establishing a  renewable  grant  fund                                                                   
would benefit all of Alaska.                                                                                                    
                                                                                                                                
2:44:15 PM                                                                                                                    
                                                                                                                                
MEERA  KOHLER,  PRESIDENT  &  CEO,  ALASKA  VILLAGE  ELECTRIC                                                                   
COOPERATIVE, testified  in support  of the legislation.   She                                                                   
provided  examples   of  renewable  resources   used  in  the                                                                   
villages.  She  maintained that Alaska has a  large potential                                                                   
for renewable resources.                                                                                                        
                                                                                                                                
Representative  Kelly expressed concern  that the  members of                                                                   
the advisory  committee would end  up gridlocked most  of the                                                                   
time.   Ms.  Kohler explained  that the  committee has  great                                                                   
potential, is small,  and workable.  The committee  is needed                                                                   
to focus on renewable resources.                                                                                                
                                                                                                                                
2:48:35 PM                                                                                                                    
                                                                                                                                
GWEN HOLDMANN,  VICE PRESIDENT OF NEW DEVELOPMENT,  CHENA HOT                                                                   
SPRINGS  RESORT, testified  in  support  of the  legislation.                                                                   
She  noted  that their  power  plant  has  won awards.    She                                                                   
reported  that in  seven  months, they  were  able to  offset                                                                   
$280,000 in  diesel fuel costs.   She provided  other details                                                                   
of  their  use  of  renewable  resources  and  the  resulting                                                                   
savings. She observed  that they would not have  been able to                                                                   
make the advances without grant funding.                                                                                        
                                                                                                                                
2:51:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment 1:                                                                                      
                                                                                                                                
     Page 3, line 19                                                                                                            
     After "balance"                                                                                                            
     Insert "of"                                                                                                                
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment 2:                                                                               
                                                                                                                                
     Page 3, line 17:                                                                                                           
     Delete "and"                                                                                                               
                                                                                                                                
     Page 3, line 20, following "section":                                                                                      
     Insert "; and                                                                                                              
               (4) apply for and be able to receive                                                                             
     contributions from other sources for distribution as                                                                       
     grants to eligible applicants"                                                                                             
                                                                                                                                
Representative Crawford noted  that other funding sources are                                                                   
available for renewable energy systems.                                                                                         
                                                                                                                                
2:56:49 PM                                                                                                                    
                                                                                                                                
Ms. Millet explained  that there is nothing in  the bill that                                                                   
prohibits AEA from seeking other  funding.  Some fund sources                                                                   
are weighted  higher than  others due  to the possibility  of                                                                   
matching funds.                                                                                                                 
                                                                                                                                
Representative  Crawford emphasized  the wording "apply  for"                                                                   
in the  amendment.  He  agreed that  there is nothing  in the                                                                   
bill that would prevent that,  but there is also nothing that                                                                   
states that "they  should" apply for other sources  of funds.                                                                   
Representative Thomas  said he has no problem  with Amendment                                                                   
#2.                                                                                                                             
                                                                                                                                
2:58:22 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked  if Speaker  Harris would  agree                                                                   
with Amendment #2.  Ms. Millet  said he would have no problem                                                                   
with it.                                                                                                                        
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  objection.   There  being  NO                                                                   
OBJECTION, Amendment #2 was adopted.                                                                                            
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment #3:                                                                              
                                                                                                                                
     Page 5, lines 14-17                                                                                                        
     Delete after (g): [as applicable to licensing water-                                                                       
     power development projects,  unless the authority adopts                                                                   
     a different definition based  on a determination made by                                                                   
     a    nationally   recognized    independent    nonprofit                                                                   
     corporation that considers  the environmental effects of                                                                   
     hydropower practices;]                                                                                                     
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Thomas pointed out  that the amendment  would                                                                   
keep the  definition as defined  under AS 42.45.350(g).   Ms.                                                                   
Millet said the sponsor has no objection to the amendment.                                                                      
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  objection.   There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
2:59:57 PM                                                                                                                    
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment # 4:                                                                             
                                                                                                                                
     Page 3, line 9                                                                                                             
     Add: (4) investments to be managed by the Department of                                                                    
     Revenue                                                                                                                    
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Thomas explained  that the  amendment was  at                                                                   
the recommendation  of Ms. Fisher-Goad from AEA.   Ms. Millet                                                                   
agreed with the amendment.                                                                                                      
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  objection.   There  being  NO                                                                   
OBJECTION, Amendment #4 was adopted.                                                                                            
                                                                                                                                
Co-Chair  Meyer  questioned  fiscal  note  #2.    He  thought                                                                   
$126,000 should  be general fund money rather  than renewable                                                                   
energy fund  money.  Ms. Millet  did not have a  problem with                                                                   
that.                                                                                                                           
                                                                                                                                
3:03:47 PM                                                                                                                    
                                                                                                                                
Representative  Hawker mentioned that  either the  account or                                                                   
the fund will  require a separate appropriation  before there                                                                   
is any money available.  He suggested  that both fiscal notes                                                                   
be indeterminate, rather than a fixed number.                                                                                   
                                                                                                                                
Ms. Millet  suggested  consulting with  AEA about the  fiscal                                                                   
notes.                                                                                                                          
                                                                                                                                
Representative  Kelly commented  that the full-time  position                                                                   
is not needed.  He agreed with Representative Hawker.                                                                           
                                                                                                                                
Co-Chair   Meyer  thought   both  fiscal   notes  should   be                                                                   
indeterminate fiscal notes.  Ms. Millet agreed.                                                                                 
                                                                                                                                
Ms.  Fisher-Goad explained  that  the reason  for the  amount                                                                   
under  the   renewable  energy   fund  was  because   of  the                                                                   
assumption that there  would be an appropriation  to make the                                                                   
program move  forward.   She said she  would comply  with the                                                                   
will of the committee.                                                                                                          
                                                                                                                                
Representative  Hawker spoke about  travel, which  he thought                                                                   
AEA could absorb.                                                                                                               
                                                                                                                                
3:09:55 PM                                                                                                                    
                                                                                                                                
Representative Hawker  MOVED that Fiscal  Notes #1 and  #2 be                                                                   
indeterminate.  There being NO  OBJECTION, it was so ordered.                                                                   
                                                                                                                                
Co-Chair Meyer wanted to move the bill.                                                                                         
                                                                                                                                
Representative  Hawker stated willingness  to move  the bill,                                                                   
but  emphasized that  this legislation  is  no assurance  for                                                                   
funding for the program.                                                                                                        
                                                                                                                                
Representative Crawford  spoke in support of  moving the bill                                                                   
and finding private sources of money to fund it.                                                                                
                                                                                                                                
Representative  Thomas  agreed  to  move the  bill  and  find                                                                   
funding later.                                                                                                                  
                                                                                                                                
3:13:00 PM                                                                                                                    
                                                                                                                                
Representative  Hawker MOVED  to  REPORT CSHB  152 (FIN),  as                                                                   
amended,  with   individual  recommendations  and   with  the                                                                   
accompanying   amended  fiscal   notes.     There  being   NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB  152 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with  two new indeterminate  fiscal                                                                   
notes by the  Department of Commerce, Community  and Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
3:13:59 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 133                                                                                                            
                                                                                                                                
     "An Act relating to requiring electronic monitoring as                                                                     
     a special condition of probation for offenders whose                                                                       
     offense was related to a criminal street gang."                                                                            
                                                                                                                                
Vice Chair Stoltze MOVED to ADOPT  the work draft for HB 133,                                                                   
labeled  25-LS0465\N,  Luckhaupt, 4/13/07.    There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
REPRESENTATIVE  BOB BUCH,  sponsor, explained  that the  bill                                                                   
deals with the  gang problem in Anchorage.   It would require                                                                   
people who are  convicted of violent, gang-related  crimes to                                                                   
wear  electronic   monitoring  devices  as  a   condition  of                                                                   
probation.    The bill  addresses  a  problem that  has  been                                                                   
documented  by the  Anchorage  Police Department  where  gang                                                                   
members who have been convicted  of violent crimes go back to                                                                   
gang activity.   He spoke  of the review  of the bill  by the                                                                   
Judiciary Committee.   He clarified  that the bill  gives law                                                                   
enforcement  a  tool to  deal  with convicted,  violent  gang                                                                   
members.   The scope of the  bill is very narrow  and applies                                                                   
only to  those who  are convicted  of violent gang  behavior.                                                                   
He noted  that he has added  a five-year sunset  provision to                                                                   
make electronic monitoring a pilot program.                                                                                     
                                                                                                                                
3:18:29 PM                                                                                                                    
                                                                                                                                
Representative Buch mentioned  support of the bill from Chuck                                                                   
Copp, Chief of Police in Kenai.                                                                                                 
                                                                                                                                
Vice Chair Stoltze asked why the  courts need so much time to                                                                   
enact laws.   Representative Buch  noted that time  is needed                                                                   
to convict gang members and to implement the bill.                                                                              
                                                                                                                                
3:19:45 PM                                                                                                                    
                                                                                                                                
GARDNER COBB,  HEAD, GANG UNIT, ANCHORAGE  POLICE DEPARTMENT,                                                                   
testified  in strong  support of  the bill.   He related  his                                                                   
experience  with gang  problems in Anchorage.   He  predicted                                                                   
that ankle monitoring would prevent  future crime.  The focus                                                                   
of the  bill is  narrow to entail  "gang-motivated"  crime as                                                                   
opposed to "gang-related" crime.                                                                                                
                                                                                                                                
Representative  Kelly  asked   how  many  states  are  having                                                                   
success with this device.  Mr.  Cobb related that it has been                                                                   
used for  sex offenders  in the  past.  Representative  Kelly                                                                   
requested that information from the sponsor.                                                                                    
                                                                                                                                
Representative  Hawker  asked if  the technology  is  readily                                                                   
available.     Mr.  Cobb  thought  that  the   Department  of                                                                   
Corrections could better answer that.                                                                                           
                                                                                                                                
3:26:41 PM                                                                                                                    
                                                                                                                                
Representative   Buch   addressed    Representative   Kelly's                                                                   
question.  He said that he is  getting a report back from San                                                                   
Bernadino, California, as to the  results of the device being                                                                   
used there.  He  pointed out that one of the  benefits of the                                                                   
ankle bracelet is that it gives  the gang member an excuse to                                                                   
separate from the gang community.                                                                                               
                                                                                                                                
Representative  Kelly asked how  many states use  the device.                                                                   
Representative   Buch  said  approximately   20  states   are                                                                   
utilizing the device.  He noted  that the sunset clause would                                                                   
allow for evaluation in five years.                                                                                             
                                                                                                                                
3:29:53 PM                                                                                                                    
                                                                                                                                
DWAYNE   PEEPLES,   DEPUTY   COMMISSIONER,    DEPARTMENT   OF                                                                   
CORRECTIONS,  answered   Representative  Hawker's   questions                                                                   
regarding  the availability  and  geographic restrictions  of                                                                   
the technology.   Mr. Peeples reported that  the equipment is                                                                   
available,  and he thought  there would  be no problems  with                                                                   
the  use of  the  device  in urban  or  suburban  areas.   He                                                                   
thought  there may  be  a staff  monitoring  issue in  remote                                                                   
areas.                                                                                                                          
                                                                                                                                
Co-Chair Meyer asked if the electronic  monitoring is for the                                                                   
entire probation period.  Representative  Buch said it is for                                                                   
the entire  time a  person is  on parole  or probation.   Co-                                                                   
Chair  Meyer asked  what  happens if  the  person leaves  the                                                                   
state.    Mr.  Peeples  discussed  intrastate  issues.    Mr.                                                                   
Peeples thought  the individuals  would be closely  monitored                                                                   
and not allowed to travel.                                                                                                      
                                                                                                                                
3:33:57 PM                                                                                                                    
                                                                                                                                
Co-Chair   Meyer  asked   how   this  would   be  paid   for.                                                                   
Representative Buch  said that the convicted  criminals would                                                                   
be responsible for paying for the device.                                                                                       
                                                                                                                                
Representative  Gara spoke  to  the affordability  provision.                                                                   
He  thought that  the GPS  system  would only  be imposed  in                                                                   
areas where  there are gangs,  and therefore there  would not                                                                   
be a "use problem" in areas where there are no gangs.                                                                           
                                                                                                                                
Representative  Hawker   asked  if  this  legislation   is  a                                                                   
prospective application.   Mr. Peeples  said yes.   There are                                                                   
currently clients  who could have qualified.   Representative                                                                   
Hawker wondered if they would  be mandated to use the device.                                                                   
Representative Buch said the legislation  would take place as                                                                   
soon as  possible.  Representative  Hawker wondered  if these                                                                   
conditions  could  be  imposed  on  current  parolees.    Mr.                                                                   
Peeples said  an aggravating  factor would  have had  to have                                                                   
been found at the time of their conviction.                                                                                     
                                                                                                                                
3:37:41 PM                                                                                                                    
                                                                                                                                
RICK SVODBODNY,  CHIEF ASSISTANT  ATTORNEY GENERAL,  CRIMINAL                                                                   
DIVISION, DEPARTMENT OF LAW, related  that it can only have a                                                                   
prospective  application because  it would  have had  to have                                                                   
been determined during  the trial.  He explained  that parole                                                                   
conditions are discretionary and  can be imposed at any time.                                                                   
                                                                                                                                
Representative  Hawker asked  about  the aggravating  factors                                                                   
already  existing   in  statute.    He  wondered   if  anyone                                                                   
currently qualifies.   Mr. Svobodny said it  is possible, but                                                                   
not likely.   Representative Hawker  asked if the  bill would                                                                   
cause  a  change  in  behavior  for  prosecutors  to  try  to                                                                   
identify this aggravating factor.   Mr. Svobodny didn't think                                                                   
it  would be  a change  of  behavior because  prosecutors  in                                                                   
Anchorage are already trying to prove it.                                                                                       
                                                                                                                                
Mr. Peeples informed  the committee that gangs  are not being                                                                   
tracked in  institutions.  There  are about 100  gang members                                                                   
on probation, and about 50-75  juvenile offenders, with notes                                                                   
in their records  regarding an aggravating factor.   He could                                                                   
not say  how many would fall  under the felony heading.   The                                                                   
financial plan  is to have  an indeterminate fiscal  note and                                                                   
then ask for funding as needed.                                                                                                 
                                                                                                                                
3:44:42 PM                                                                                                                    
                                                                                                                                
Representative  Hawker addressed  the  bright line  regarding                                                                   
proof  of an aggravating  factor.   He wanted  to lessen  the                                                                   
burden of proof  on the "good guys".  Mr. Svobodny  said that                                                                   
could legally be  done.  It depends on the court's  view.  He                                                                   
maintained it is  a condition of probation and  does not need                                                                   
to be tied to proving an aggravating factor.                                                                                    
                                                                                                                                
Representative   Buch   addressed   Representative   Hawker's                                                                   
concern.   He  pointed  out that  existing  law provides  for                                                                   
"auto  waiver"  for  juveniles  with  violent  crimes  to  be                                                                   
treated as  adults.   He reported that  the fiscal  impact of                                                                   
broadening  the use  of this  legislation was  out of  sight.                                                                   
The  new   technology   in  the  ankle   bracelet  does   the                                                                   
monitoring.                                                                                                                     
                                                                                                                                
3:49:59 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked how  to get  the device  on more                                                                   
ankles.   Representative  Buch  pointed out  that  this is  a                                                                   
pilot  program and  can be  expanded if  it works  well.   It                                                                   
addresses a public safety concern in Anchorage.                                                                                 
                                                                                                                                
Representative Kelly  asked if it is mandatory  for the judge                                                                   
to consider this  as a condition of probation.   Mr. Svobodny                                                                   
said it is.  Representative Kelly  asked if this device would                                                                   
cause lesser  sentences to  be given.   Mr. Svobodny  said he                                                                   
could  not  predict.  It  is tied  to  serious  felonies  and                                                                   
presumptive sentencing.   If an aggravating factor  is found,                                                                   
the sentence can be extended.                                                                                                   
                                                                                                                                
Representative Kelly also supported  making it easier for the                                                                   
"good guys".   Representative Buch pointed out  that the bill                                                                   
addresses a specific  problem of bad behavior.    It would be                                                                   
too expensive  to have a  broad perspective.   Representative                                                                   
Kelly called it a tool and wished more could be used.                                                                           
                                                                                                                                
3:57:26 PM                                                                                                                    
                                                                                                                                
Representative  Gara  related  the experience  of  increasing                                                                   
sentences  and needing  to prove beyond  a reasonable  doubt.                                                                   
He  said the  bill,  as  written,  meets U.S.  Supreme  Court                                                                   
approval.   "If you  say the  judge can  do it without  proof                                                                   
beyond a reasonable doubt", it may be unconstitutional.                                                                         
                                                                                                                                
Vice Chair Stoltze referred to  a letter from Rob Heun, Chief                                                                   
of Police, Anchorage  (copy on file.)  He  thought conditions                                                                   
of  probation  should  not  be a  negotiated  process.    Mr.                                                                   
Svobodny  responded that  they could  be negotiated  with the                                                                   
District Attorney  early on.  He  said he hope that  does not                                                                   
happen.  The bright line in this bill is at sentencing.                                                                         
                                                                                                                                
Representative  Hawker referred  to an  earlier fiscal  note.                                                                   
He wondered  if it also  included misdemeanors.   Mr. Peeples                                                                   
said  it did.   It  was  a wide  net  with a  differentiation                                                                   
between "gang  related" and "gang associated".   He discussed                                                                   
the earlier note.                                                                                                               
                                                                                                                                
Representative  Hawker did  not  take issue  with the  dollar                                                                   
amount,  but with  the  public safety  issue.   He  expressed                                                                   
concern  about the  "high hurdle"  to meet  the condition  of                                                                   
aggravating factor.   He read  from AS 12.55.155(c)(29).   He                                                                   
voiced concern that the bill falls short.                                                                                       
                                                                                                                                
4:06:58 PM                                                                                                                    
                                                                                                                                
Representative  Buch  summarized  that  the idea  behind  the                                                                   
legislation is that  it addresses a very specific  crime with                                                                   
very  specific  criteria;  a  very  specific  tool  for  very                                                                   
extreme gang activity.                                                                                                          
                                                                                                                                
HB  133  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 4:09 PM.                                                                                           

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