Legislature(2007 - 2008)HOUSE FINANCE 519
03/20/2008 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB311 | |
| HB54 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 311 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 54 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 20, 2008
8:42 a.m.
CALL TO ORDER
Co-Chair Chenault called the House Finance Committee meeting
to order at 8:42:23 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Les Gara
Representative Mike Hawker
Representative Mike Kelly
Representative Bill Thomas, Jr.
Representative John Harris
Representative Reggie Joule
Representative Harry Crawford
MEMBERS ABSENT
Representative Mary Nelson
ALSO PRESENT
Bryan Butcher, Legislative Liaison, Alaska Housing Finance
Corporation; Les Campbell, Budget Director, Alaska Housing
Finance Corporation; Representative Mark Neuman
PRESENT VIA TELECONFERENCE
None
SUMMARY
HB 311 "An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing
for an effective date."
HB 311 was heard and HELD in Committee for further
consideration.
HB 54 "An Act relating to construction of a legislative
hall; and repealing provisions relating to
relocating the capital, the legislature, or any of
the present functions of state government."
CSHB 54(FIN) was REPORTED out of Committee with a
"do not pass" recommendation and with zero fiscal
note #1 by the Department of Administration,
indeterminate fiscal note #2 by the Office of the
Governor, and fiscal note #3 by Legislative
Affairs Agency.
8:44:52 AM
HOUSE BILL NO. 311
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date."
DEPARTMENT OF REVENUE/ALASKA HOUSING FINANCE CORPORATION
BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION (AHFC), introduced AHFC's Budget Summary.
LES CAMPBELL, BUDGET DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, addressed individual AHFC budget requests.
Project #45379
Public Software Replacement
$1,250,000 Corporate Receipts
Mr. Campbell explained that the purpose of the program is to
purchase, implement, support, and provide training for a
software system that will help manage the Corporation's
public housing programs. The current software is outdated
and a new system is critical to support AHFC's rental
housing programs. A new system would make compliance with
HUD regulations much easier.
Project #45382
Phone System Replacement
$450,000 Corporate Receipts
Mr. Campbell related the reason for the request: to replace
AHFC's phone system with a Voice-Over-IP (VOIP)
infrastructure.
8:46:51 AM
Project #45383
HR/Payroll Implementation
$387,900 Corporate Receipts
Mr. Campbell said the request is to complete the process of
a new HR payroll function for AHFC. The current system is
over 15 years old and does not have the capabilities to
provide needed reports and information, or capture the
employee information required. The new system will fully
integrate human resources, benefits administration, and
payroll functions.
Project #37918
Housing Loan Program - Teacher/Health/Public Safety Housing
$8,000,000 Corporate Receipts
Mr. Campbell explained that this is an on-going request and
provides gap funding to increase homeownership and rental
units throughout the state. The program is designed to help
retain desirable professionals in high-cost areas. The
projected outcomes would include an addition of 62 new
units, increased affordability for housing purchases by low
income families, lower interest rate on mortgage programs,
and a statewide housing conference.
8:48:50 AM
Project #6323
Supplemental Housing Development Program
$8,000,000 Corporate Receipts
Mr. Campbell noted that the request would supplement federal
HUD funds and would be used to cover costs related to water,
sewer, and electrical systems, as well as for road
construction to project sites and site development. The
funds are limited to 20 percent of HUD's total development
cost per unit and cannot be used for administrative
purposes.
Project #6632
Low-Income Weatherization Program
$2,000,000 Federal Receipts
$6,000,000 Corporate Receipts
Mr. Campbell explained the purpose of the program to provide
cost-effective energy improvements to homes of low-income
families. Weatherization provides for fire safety through
furnace and electrical repairs, education, chimney and
woodstove repairs, and egress windows. It is the same
program that was funded in the supplemental budget.
8:50:45 AM
Project #6634
Senior Citizen's Housing Development Fund (SCHDF)
$6,000,000 Corporate Receipts
Mr. Campbell reported that the funds are used for grants for
municipalities and public or private non-profit
corporations, in conjunction with other agencies, for the
development of senior citizen housing. Funds can be used
for the purchase of building sites, site preparation,
materials, construction, and rehabilitation of existing
housing. Organizations qualified to apply include
municipalities and public or private nonprofit corporations.
Additional components include smaller grants for nonprofit
senior organizations to pay for preparation of plans and
project feasibility studies, appraisals, site preparation
and other pre-development activities. This program has
funded 931 units to date.
Project #6347
HUD Federal HOME Grant Program
$750,000 Corporate Receipts
$3,450,000 Federal Receipts
Mr. Campbell reported that the purpose of the request is to
expand the supply of affordable, low- and moderate-income
housing and to strengthen the ability of the state to design
and implement strategies to achieve an adequate supply of
safe, energy-efficient, and affordable housing. This
program has funded 44 rental projects containing 818 units
and rehabilitated 373 low-income homes. It has assisted
another 315 low-income households to purchase homes.
Co-Chair Chenault requested clarification about the number
of units funded by item Project #6634. Mr. Campbell said
931.
Project #6342
HUD Capital Fund Program
$3,200,000 Federal Receipts
Mr. Campbell summarized that the purpose of the program is
to renovate and modernize the public housing rental units
statewide.
Project #6348
Federal and Other Competitive Grants
$1,500,000 Corporate Receipts
$3,000,000 Federal Receipts
Mr. Campbell related that the request is to allow AHFC to
apply for HUD, other federal agency, and private foundation
grants that target the housing needs and supportive services
of low-income and special needs groups such as: senior
citizens, the mentally, physically, or developmentally
disabled, or the homeless. AHFC will also apply for energy-
related grants as they relate to housing. When required,
AHFC will provide the needed matching funds. Some of the
funds received will be passed through to local non-profit
sub-grantee organizations that deliver housing and/or
services.
8:54:18 AM
Project #6350
Competitive Grants for Public Housing
$250,000 Corporate Receipts
$750,000 Federal Receipts
Mr. Campbell explained that this request is similar to the
last request, but is directly related to public housing.
The purpose of the program is to allow AHFC to apply for HUD
and other grants that target housing needs for low-income or
special needs groups.
Vice-Chair Stoltze noted a project in Palmer that works with
faith-based groups for low-income weatherization. He
wondered if those were the types of projects eligible under
this category. Mr. Campbell replied that the Drug
Elimination Program would qualify under this category. The
last project was broader and could include Vice-Chair
Stoltze's example. Vice-Chair Stoltze asked if faith-based
missions were an issue. Mr. Butcher thought not.
8:56:55 AM
Project #6351
Energy Efficiency Monitoring Research
$1,000,000 Corporate Receipts
Mr. Campbell said that the project would use AHFC funds for
a designated grant to Cold Climate Housing Research Center
to conduct housing construction research, analysis, and
information dissemination among the housing industry and the
public. Data gathering and analysis is being continually
related to energy efficiency technology for homes
constructed in northern building and market conditions.
Project #32526
State Energy Program (SEP) Special Projects
$30,000 Corporate Receipts
$150,000 Federal Receipts
Mr. Campbell related that the program utilizes Federal
Department of Energy and Corporate match funds for State
Energy Program special projects such as building
technologies, Codes and Standards, Wind and Power
technologies, renewable energy for remote areas, or
transportation technologies.
Representative Gara asked about the previous item Project
#6351. He inquired about the research behind the
construction industry and whether the industry has embraced
it. Mr. Butcher replied that the industry worked several
years ago to get this funded. The industry is working
closely with the energy community to find appropriate energy
improvement solutions in various parts of Alaska.
Representative Gara asked if they were federal receipts.
Mr. Butcher responded that they were corporate receipts.
Representative Gara asked what Mr. Butcher's comfort level
was. Mr. Butcher replied that he was very comfortable. He
gave an example of energy efficiency testing in Fairbanks.
9:01:10 AM
Project #40068
Statewide Project Improvements
$2,500,000 Corporate Receipts
Mr. Campbell reported that the purpose of the project is to
provide funding to address known and unknown conditions in
AHFC's housing stock, the rental units. It utilizes AHFC
funds to provide repairs, deferred maintenance, and
improvements to AHFC-owned properties throughout the state.
This project will allow AHFC to keep pace with the
deterioration of existing components of rental properties
such as roofs, sidewalks, and common areas. It will enhance
operations, and allow quick response to ordinance and code
changes. The primary function of this fund is to address
those major or extraordinary work items identified annually
through the Physical Needs Assessments by the public housing
maintenance staff and Asset Supervisors.
Project #41531
Denali Commission Projects
$7,000,000 Federal Receipts
Mr. Campbell noted this item is funded by federal receipts.
Project #43076
Loussac Manor Renovation - Phase II
$2,336,000 Corporate Receipts
Mr. Campbell explained the request for funds for a project
which would begin the second phase of renovation to replace
all structures in the Loussac Manor. The funds would be
used to replace the housing, following approval last year to
replace the underground utilities and infrastructure for the
entire complex. Following the completion of a professional
site assessment that included cost estimates to renovate or
replace the existing structures, it has been determined that
it is not economically feasible to renovate the structures.
This funding request would replace all structures under a
phased plan that would use existing foundations.
9:03:08 AM
Project #43079
Prison Housing
$1,000,000 SDPR
Mr. Campbell reported that these Statutory Designated funds
are for a statewide correction facility/prisoner housing
project. Following identification of a building site and
evaluation of the costs to provide the necessary
infrastructure and utilities to the proposed Mat-SU Prison
site, it was determined that the construction budget allowed
under SB 65 was not sufficient to absorb the additional
costs. The Department of Corrections has revised their
approach and identified a strategy to expand existing
facilities at various locations around the state and reduce
the size of the proposed facility. AHFC is currently
assisting Corrections with the initial planning for the new
strategy through a limited RSA and anticipates the need for
additional spending authority in the next fiscal year to
continue to provide planning and construction management
services to the Department of Corrections.
Project #45385
Chugach View Siding and Window Replacement
$2,500,000 Federal Receipts
Mr. Campbell stated that this request is funded by federal
receipts.
9:04:42 AM
Project #45386
Etolin Heights Roofing Replacement
$500,000 Corporate Receipts
Mr. Campbell explained that the project would replace the
existing metal roof on the Market Housing side of Etolin
Heights family housing complex in Wrangell, Alaska. The
roofing was originally installed in 1981 and continues to
leak. Complete replacement is necessary.
Vice-Chair Stoltze noted the need for a roofing task force
due to the numerous requests for roof repairs around the
state. Mr. Butcher commented that AHFC could look into
that. He recalled a previous legislative task force that
looked into deferred maintenance. Vice-Chair Stoltze added
that several current projects could use additional advice.
9:09:05 AM
Project #45387
Etolin Heights Mechanical Replacement
$450,000 Corporate Receipts
Mr. Campbell said that the request would use funds to
upgrade heating systems at the Wrangell family housing
properties. This project would facilitate the conversion of
the existing oil-fired boiler systems at both the Corporate-
owned Market family housing and Low Rent family housing to a
cost effective heating system powered by the local
hydroelectric grid, which is less expensive to operate and
maintain than the current fuel oil heating systems.
Project #45388
Statewide Energy Improvements
$500,000 Corporate Receipts
Mr. Campbell reported that the funds would address specific
recommendations suggested in the required energy audits
performed throughout the state. The audits identify
specific improvements that can be made to the housing to
reduce energy consumption.
Representative Kelly asked if heat pumps will be used in the
Etolin Heights mechanical replacement, due to the limited
nature of hydroelectricity. Mr. Campbell explained that
the plan is to use the existing hot water base board system,
but replace the boilers with electric boilers, and not use
heat pumps. Representative Kelly asked if cold climate
research has looked into that. He requested further
information. Mr. Butcher offered to provide that
information.
9:12:33 AM
Project #45389
Statewide ADA Improvements
$500,000 Corporate Receipts
Mr. Campbell explained that the funding is to address
specific recommendations suggested in the required energy
audits performed throughout the state. Projected outcomes
are to begin to address recommendations suggested in the
audit, maintain federal funding by complying with HUD,
increase comfort of tenants, and increase unit rentability.
Project #45384
Bethel Community Room and Shop
$2,000,000 Corporate Receipts
Mr. Campbell related that the funds would be used for a new
community room in Bethel. The project combines the need to
replace the existing office/shop and provide a community
space for the 117 units of family housing at Bethel Heights
in Bethel. An existing design that has been previously
constructed for AHFC properties in Kodiak, Sitka, and Juneau
will be used that includes a shop area, community room, and
supporting offices.
9:13:44 AM
Mr. Campbell reported that the next group of projects are
requests found in the Mental Health bill.
Project #6359
Homeless Assistance Program
$1,000,000 Corporate Receipts
$500,000 MHTAAR
$500,000 General Funds/Mental Health
Mr. Campbell explained that the funds are for grants to
local communities/agencies to help develop programs to
prevent homelessness by providing assistance to families in
imminent danger of becoming homeless or those who are
currently homeless. Corporate funds will be matched by
Mental Health Trust Authority funds and be administered by
AHFC.
Vice-Chair Stoltze requested more information about the
definition of homelessness. Mr. Butcher replied that AHFC
uses the same definition as HUD and the U.S. Department of
Education.
Project #6360
Beneficiary and Special Needs Housing
$1,750,000 Corporate Receipts
Mr. Campbell related that the program would provide funds
for Alaskan nonprofit service providers and housing
developers to increase housing opportunities to Alaska
Mental Health Trust beneficiaries and other special needs
populations throughout Alaska. The program has developed
118 units since FY 2000. In FY 2008, 18 units were funded
for persons with severe mental illness and development
disabilities.
Mr. Campbell shared the projected outcomes: add 16
congregate housing units for people with mental illness or
developmental disabilities, reduce recidivism amongst
clients in institutions, provide supportive housing for
people who qualify, and provide transitional housing for
newly recovering alcoholics and addicts.
Project #43318
Emergency Assistance Grants for Mental Health Trust
Beneficiaries
$200,000 MHTARR
Mr. Campbell said that these are funds for grants to support
beneficiaries of the Alaska Mental Health Trust Authority to
prevent loss of housing that might occur due to unforeseen
events such as institutionalization.
9:17:11 AM
Project #45390
Housing Trust
$2,500,000 MHTAAR
$2,500,000 General Fund/MH
$2,500,000 SD
$2,500,000 Corporate Receipts
Mr. Campbell reported that the request is to create a trust
that would address two main issues in Alaska: preventing
homelessness and creating affordable housing for low-
moderate income renters and homeowners. Funds would be used
to assist projects that provide housing for the homeless, to
prevent homelessness, and to create long-term affordable
housing. Eligible projects would include new construction,
rehabilitation, rental assistance and homeless services.
Mr. Campbell reported that the outcomes would be a reduction
in the number of homeless persons that interact with the
social service system, a reduction in the public cost of
emergency and institutional services that treat the
homeless, an expansion of the community based mental health
system, and a strong evaluation component.
Co-Chair Chenault asked for the total number of single
family housing units under Alaska Housing Finance
Corporation's control. Mr. Butcher thought there were 1,400
public housing units. Mr. Campbell clarified that there
were 1,330 in the low rent program, a little less than 400
in other programs, and 4,200 in the voucher program. Co-
Chair Chenault summarized that there were about 6,000 units
total.
Representative Kelly requested a projection of the numbers
into the future. Mr. Campbell thought public housing would
remain consistent and the voucher program would increase.
AHFC is eligible to apply for 35 more veteran units.
Representative Kelly voiced concern about being able to
sustain growth in the program. He also mentioned the
pattern of Mental Health withdrawing support after
initiating programs.
Mr. Bucher agreed. The Mental Health trust is now looking
at making 5-year commitments. He provided a brief history
of public housing. The voucher program was in response to
the negatives of public housing. The number of vouchers has
increased and traditional public housing has decreased.
Congress has been very supportive. The voucher program is
completely federally funded.
9:25:10 AM
Representative Gara asked about the Housing Trust funding
source. Mr. Butcher explained that the Rasmussen Foundation
has committed $1 million. There is $2.5 million in receipt
authority. There is still a need for $1.5 million.
Representative Gara asked if there would be HUD funding in
the future. Mr. Butcher replied that he did not know.
Representative Kelly asked about the "bricks and mortar"
aspect of the program - the participation by the
foundations. Mr. Butcher said that was correct, as well as
funding support services to help the homeless stay off the
street.
9:26:56 AM
Representative Harris commented that the housing units are
for people with limited incomes. He wondered if there was
anything to address what happens when they are no longer
eligible for the program. Mr. Butcher explained the federal
regulations for qualification. Representative Harris
recalled incidents of people who live in government
subsidized housing and who were making a decent wage. He
wondered what the incentives were to encourage people to get
out of the program.
Mr. Butcher explained that the voucher program allows people
to transfer anywhere in the U.S. He noted that the public
housing authority checks to see if eligibility is
maintained. Mr. Campbell added that a portion of income
goes into an escrow account. He noted that in the low
income program, the case that Representative Harris
mentioned could happen. He clarified that the program is
based on 30 percent of a client's income. Representative
Harris commented that high incomes should not be allowed in
the program.
9:31:55 AM
Representative Hawker clarified that there is only $2.5
million in general funds. He noted future expenses to the
program.
Vice-Chair Stoltze disclosed his membership as a HUD board
member.
Representative Gara said the point is not to just give
people housing, but to get them into transitional housing
and into work. Representative Harris maintained that there
are abuses of the system. Representative Gara emphasized
that these are homeless people. Representative Harris
understood that some may have limited mental or physical
capabilities.
9:34:34 AM
HOUSE BILL NO. 54
"An Act relating to construction of a legislative hall;
and repealing provisions relating to relocating the
capital, the legislature, or any of the present
functions of state government."
Vice-Chair Stoltze MOVED to ADOPT the work draft to HB 54,
labeled 25-LS0284\L, Cook, 3/19/08.
Representative Gara OBJECTED. He requested to know the
changes made in the new CS. Co-Chair Meyer said he would
provide that information.
Representative Gara WITHDREW his OBJECTION.
There being NO further OBJECTION, the work draft to HB 54
was adopted.
REPRESENTATIVE MARK NEUMAN, sponsor, stated that the changes
in the new CS were in response to discussions from committee
members.
Representative Gara pointed out that the FRANK Initiative
has been deleted in the bill and there is no provision that
would let voters approve the construction of a legislative
hall. He wondered if there was any provision in the bill
for a voter response. Representative Neuman thought that
Representative Gara's job should be to represent his area
regarding this legislation. Representative Gara pointed out
that he represents people throughout the state.
Co-Chair Meyer clarified that the bill proposes to build a
new legislative hall, not move the capital. Representative
Neuman agreed.
Co-Chair Meyer announced that Amendments 1 and 2 were
withdrawn.
9:38:32 AM
Co-Chair Meyer MOVED to ADOPT Amendment 3:
Page 4, line 1
After "consider"
Insert "the cost to state residents of transportation
to and from the proposed site based on calculation
involving transportation costs from at least five
cities, including one city in each judicial district.
The legislative council shall also consider"
Representative Hawker OBJECTED.
Co-Chair Meyer thought the wrong approach was being taken
when considering costs in this legislation and in the FRANK
Initiative. He opined that the cost of the people's access
to government should be considered, not the cost to the
state. He thought the people's government should be closer
to the people. The average person cannot afford to see
their legislators in action. This amendment requires
legislative council, when considering the proposal to build
a legislative hall, to consider the cost to the average
Alaskan. He maintained it would cost less to access
Fairbanks, Anchorage, or the MatSu Valley than it would to
access Juneau. He noted that it costs over $1,000 to travel
from Kotzebue to Juneau.
9:40:27 AM
Representative Gara countered that if costs to citizens are
the most important factor, then the move of the legislative
hall should be to Anchorage.
Co-Chair Meyer said cost is one of many factors considered
in the bill. Representative Gara argued that since nothing
can cost more than $1, it would end up in Anchorage.
Representative Neuman said nothing in Amendment 3 addresses
$1. He agreed with Co-Chair Meyer that the costs expressed
in the amendment should be considered.
9:42:29 AM
Representative Hawker WITHDREW his OBJECTION.
Representative Kelly OBJECTED. He clarified that the bill
removes the FRANK Initiative so the total cost is not
identified, yet the cost of travel for Alaskans is required
in the bill.
Co-Chair Meyer noted the amendment deals with costs of
travel only.
Co-Chair Chenault said costs of transportation, as well as
for utility service and airport access, should be
considered.
Representative Gara pointed to the five factors listed on
page 4: adequate utility services, adequate airport access,
adequate access by road, air, or marine ferry, and adequate
health, education, and social services facilities and
adequate housing. He maintained that the lowest costs of
all five are in the biggest community - Anchorage.
Co-Chair Meyer did not agree.
Co-Chair Chenault argued that Juneau has the cheapest
electric costs in the state. Each description of service or
access carries different ramifications for different areas
of the state.
9:45:06 AM
Representative Gara noted that Juneau cannot keep the
capital under this bill unless they tear down the old one
and build a new one.
Representative Hawker corrected that the bill says for
construction or renovation.
Representative Kelly WITHDREW his OBJECTION.
There being NO OBJECTION, Amendment 3 was adopted.
9:46:44 AM
Representative Hawker MOVED to ADOPT Amendment 4:
Page 2, lines 18-19
Delete all material
Vice-Chair Stoltze OBJECTED.
Representative Hawker explained that Amendment 4 removes two
lines in the bill that address the request for proposal:
"one courtroom and adequate offices for judicial officers of
the supreme court and staff;". He thought that was beyond
the scope of a legislative hall.
Vice-Chair Stoltze agreed.
Vice-Chair Stoltze WITHDREW his OBJECTION.
Co-Chair Chenault requested a response from Representative
Neuman. Representative Neuman had no objection to the
amendment.
There being NO OBJECTION, it was so ordered.
9:48:04 AM
Representative Hawker MOVED to ADOPT Amendment 5:
Page 4, lines 30-31
Delete all material
Vice-Chair Stoltze OBJECTED.
Representative Hawker explained that the amendment removes
the controversial language that would have repealed the
FRANK Initiative. He said he wanted the costs associated
with the capital move to remain before the public. He
shared the beliefs in his district that a majority of the
people would like to see the legislative hall relocated, but
a minority want to see the capital moved.
Co-Chair Meyer thought Amendment 3 took care of the cost
concerns of Alaskans.
9:49:59 AM
Representative Neuman reported that the Administration
planned to make all costs known to the people. He agreed
that Amendment 3 does require a cost to the people be
included. He termed this a policy call.
Vice-Chair Stoltze commented that he had conflicting
feelings about the issue
9:53:13 AM
Representative Hawker spoke to Amendment 3, "the legislative
council shall consider the costs" to the people. He voiced
concern about legislative council's propensity to overstate
the costs. He said he is comfortable with the FRANK
Initiative's information regarding costs.
Vice-Chair Stoltze clarified he was talking about LAA in
Juneau.
9:56:04 AM
Representative Gara thought that Amendment 3 did not involve
the public enough. He asked if one of the costs of moving
the legislative hall was for relocating current employees.
Representative Neuman noted the costs listed in the packet
to move those who are currently working in Juneau.
Representative Gara said his intention is to minimize the
damage to people if the bill passes. The people have the
right to know the costs and Amendment 3 does not provide
that information. He noted that the public has never yet
approved of the cost of moving the capital. Representative
Neuman took issue with the wording "minimize the damage".
Co-Chair Meyer noted that the fiscal notes would contain the
costs of the bill.
Representative Gara disagreed with Representative Neuman's
explanation of allowing the public to come up with a plan
for more access. The people in his district would not agree
with this legislation.
9:58:32 AM
Representative Thomas commented on the damage done to the
value of homes in Juneau by this move. He thought
legislators and staff with homes in Juneau should be held
harmless on property values.
Vice-Chair Stoltze MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Kelly, Thomas, Crawford, Harris, Gara,
Hawker, Chenault
OPPOSED: Stoltze, Meyer
Amendment 5 was ADOPTED (8-2).
Representative Crawford WITHDREW Amendment 6.
10:01:02 AM
Representative Gara MOVED to ADOPT Amendment 7:
Page 3, line 20
Insert new subsection
"(d) The qualifying bid that makes the Hall most
accessible to the largest number of citizens, and
proximate in location to the largest number of
citizens, shall be accepted, to the extent any bid is
accepted and a decision is made to proceed with a
legislative hall move. If a bid is approved under this
subsection, and provides for a cost that is approved by
the voters, construction of the Hall may proceed even
if the cost to the state exceeds $1 per year."
Representative Hawker OBJECTED.
Representative Gara explained that he has concerns about the
bill, but if it is going to go ahead, an argument in favor
of moving the legislative hall is to make it accessible to
the largest number of people. He thought the public should
be able to approve the project and vote on the cost.
Co-Chair Meyer argued that even if the legislative hall were
to be in Wasilla it would be more accessible than it
currently is.
Representative Hawker commented on the consequence of the
amendment, which would provide single criteria to evaluate a
proposal - access to the largest number of citizens.
Representative Hawker MAINTAINED his OBJECTION.
10:04:30 AM
Representative Neuman said he does not support Amendment 7.
Representative Gara said he thought the purpose of the bill
was to make the capital more accessible. He questioned the
real intention of the bill.
A roll call vote was taken on the motion.
IN FAVOR: Gara
OPPOSED: Kelly, Stoltze, Thomas, Crawford, Harris, Hawker,
Joule, Meyer, Chenault
The MOTION FAILED (1-9).
Co-Chair Chenault commented on page 2, line 6, where it
addresses the size of the offices.
Representative Kelly said it was hard to price out the non-
economic reasons for moving the capital. He pointed out
that the bill does not address reasons for not locating a
capital in the largest population area of a state. He
questioned the definition of a capital if the legislative
hall is moved to another area. He agreed with the idea of
listing constituency travel costs. He noted that there is
no competition left in the process for a community to attain
a legislative hall.
Vice-Chair Stoltze said this is all about reality and people
vote with their feet.
10:10:47 AM
Representative Gara asked Representative Neuman if he has
researched the impact of this proposal on the economy in
Juneau. He questioned the idea of the $1 proposal and
wondered if there was a response from any other districts.
Representative Neuman said the FRANK Initiative addresses
the impact on Juneau's economy. He said he went to his own
community to find out if this proposal was feasible.
10:12:41 AM
Co-Chair Meyer commented on the fiscal notes.
Vice-Chair Stoltze MOVED to REPORT CSHB 54 (FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
Representative Thomas OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Stoltz, Harris, Hawker, Kelly, Chenault, Meyer
OPPOSED: Thomas, Crawford, Gara, Joule
The MOTION to REPORT CSHB 54(FIN) out of Committee PASSED
(6-4).
CSHB 54(FIN) was REPORTED out of Committee with a "do not
pass" recommendation and with zero fiscal note #1 by the
Department of Administration, indeterminate fiscal note #2
by the Office of the Governor, and fiscal note #3 by
Legislative Affairs Agency.
ADJOURNMENT
The meeting was adjourned at 10:15 AM.
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