Legislature(2009 - 2010)HOUSE FINANCE 519

03/30/2009 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 89 RETIREMENT BENEFITS: TERRITORIAL GUARD TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 20 FISHERIES LOANS FOR ENERGY EFFICIENCY TELECONFERENCED
Moved CSHB 20(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 30, 2009                                                                                           
                         1:33 p.m.                                                                                              
                                                                                                                                
1:33:28 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze  called the House Finance  Committee meeting                                                                   
to order at 1:33 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas, Jr., Vice-Chair                                                                                     
Representative Allan Austerman                                                                                                  
Representative Harry Crawford                                                                                                   
Representative Anna Fairclough                                                                                                  
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Reggie Joule                                                                                                     
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Hawker, Co-Chair                                                                                            
Representative Mike Kelly                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Josh Temple,  Staff, Senator Charlie Huggins;  McHugh Pierre,                                                                   
Liaison, Department of Military  and Veterans Affairs (DMVA);                                                                   
Representative   Bryce   Edgmon,   Sponsor;   Greg   Winegar,                                                                   
Director,  Alaska  Division  of  Investments,  Department  of                                                                   
Commerce, Community and Economic Development                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 89(FIN)                                                                                                                    
          "An Act relating to retirement benefits for                                                                           
          members of the Alaska Territorial Guard; and                                                                          
          providing for an effective date."                                                                                     
                                                                                                                                
          CSSB 89 (FIN) was REPORTED out of Committee with a                                                                    
          "do pass" recommendation and with fiscal note #1                                                                      
          by the Department of Military and Veterans                                                                            
          Affairs.                                                                                                              
                                                                                                                                
HB 20     "An Act relating to commercial fishing loans for                                                                      
          energy efficiency upgrades."                                                                                          
          CSHB 20 (FIN) was REPORTED out of Committee with a                                                                    
          "do pass" recommendation and with fiscal note #1                                                                      
          by the Department of Commerce, Community and                                                                          
          Economic Development.                                                                                                 
                                                                                                                                
1:34:00 PM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 89(FIN)                                                                                                
                                                                                                                                
     "An Act relating to retirement benefits for members of                                                                     
     the Alaska Territorial Guard; and providing for an                                                                         
     effective date."                                                                                                           
                                                                                                                                
JOSH TEMPLE, STAFF, SENATOR CHARLIE  HUGGINS, reported on the                                                                   
history of the Alaska Territorial  Guard.  From 1942 to 1947,                                                                   
a few men  and women volunteered  to be a part of  the Alaska                                                                   
Territorial Guard.  They were  officially recognized in 2000.                                                                   
In January 2009,  the U.S. Department of Defense  reduced the                                                                   
amount  of the  Guard's pensions  and  determined that  their                                                                   
service during  WW II  did not  count toward retirement  pay.                                                                   
Their  pensions would  be  reduced  on February  1.   Due  to                                                                   
public   outrage,   the   Alaska   Congressional   delegation                                                                   
sponsored  a bill to  permanently honor  the Guard  and offer                                                                   
them a full  pension.  They  also came up with  a stipulation                                                                   
that  the  army  fund the  pension  for  another  two  months                                                                   
through March 30.                                                                                                               
                                                                                                                                
Co-Chair  Stoltze noted  the retroactivity  provision in  the                                                                   
bill.                                                                                                                           
                                                                                                                                
Mr.  Temple   summarized  that  the  bill   provides  "bridge                                                                   
funding"  and   would  fund  the   difference  in   what  the                                                                   
Department of Defense  pensions used to be and  what they are                                                                   
now   until  the   federal   government   resumes  its   full                                                                   
responsibility of the pensions.                                                                                                 
                                                                                                                                
Co-Chair  Stoltze asked  how many  Guard  veterans this  bill                                                                   
would affect.   Mr.  Temple reported that  there are  26 men.                                                                   
The cost  would be  $31,300 for  FY09 and  $83,500 for  FY10,                                                                   
totaling $114,800.                                                                                                              
                                                                                                                                
MCHUGH PIERRE,  LIAISON, DEPARTMENT OF MILITARY  AND VETERANS                                                                   
AFFAIRS (DMVA), explained that  the governor sent a letter to                                                                   
the Secretary  of the  Army requesting  continued funding  of                                                                   
retirement  benefits for the  Guard.   The bill provides  for                                                                   
DMVA to  pay benefits to  eligible individuals who  served in                                                                   
the Guard.                                                                                                                      
                                                                                                                                
1:39:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze asked for demographics  regarding the Guard.                                                                   
Mr. McHugh  related that the  beneficiaries of this  bill are                                                                   
in their 80's  and 90's.  He  reported that DMVA is  ready to                                                                   
respond  to  the  bill  and  make   the  payments  until  the                                                                   
Congressional fix is in place.                                                                                                  
                                                                                                                                
Co-Chair Stoltze commented that the bill has a sunset date.                                                                     
                                                                                                                                
1:41:40 PM                                                                                                                    
                                                                                                                                
Representative  Salmon asked  why the  duration is only  from                                                                   
April 2009  to February  2010.  Mr.  Pierre reported  that in                                                                   
consulting with  the Congressional  delegation, it  was found                                                                   
that a  fix should be  in place by the  end of October.   The                                                                   
legislation would  extend into the  next session in  case the                                                                   
fix was not yet in place.                                                                                                       
                                                                                                                                
Co-Chair Stoltze noted a fiscal note by DMVA.                                                                                   
                                                                                                                                
1:42:59 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Thomas  MOVED to  REPORT  CSSB  89 (FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSSB 89 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and  with fiscal note #1 by  the Department of                                                                   
Military and Veterans Affairs.                                                                                                  
                                                                                                                                
1:44:10 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 20                                                                                                             
                                                                                                                                
     "An Act relating to commercial fishing loans for energy                                                                    
     efficiency upgrades."                                                                                                      
                                                                                                                                
REPRESENTATIVE  BRYCE EDGMON,  SPONSOR, commented that  there                                                                   
was one amendment to the bill.                                                                                                  
                                                                                                                                
Co-Chair Stoltze MOVED to ADOPT Amendment 2:                                                                                    
                                                                                                                                
     Page 4, line 31, through page 5, line 2:                                                                                   
     Delete all material.                                                                                                       
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
Vice-Chair Thomas OBJECTED.                                                                                                     
                                                                                                                                
Representative  Edgmon  explained  that the  amendment  would                                                                   
remove the  retroactivity clause  because it is  unnecessary.                                                                   
Under current  regulation, those who  may have gotten  a loan                                                                   
under the energy efficiency program can be included.                                                                            
                                                                                                                                
Representative  Fairclough  asked  for clarification  of  the                                                                   
amendment number.                                                                                                               
                                                                                                                                
Co-Chair Stoltze explained that  it was previous Amendment 2.                                                                   
Amendment 1 was offered and then withdrawn.                                                                                     
                                                                                                                                
Vice-Chair  Thomas WITHDREW  his  objection  to Amendment  2.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
1:46:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze requested an  explanation of fiscal note #1.                                                                   
                                                                                                                                
GREG  WINEGAR,  DIRECTOR,  ALASKA  DIVISION  OF  INVESTMENTS,                                                                   
DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT,                                                                   
explained  the fiscal  note anticipates  an increase  in loan                                                                   
demands  by  approximately  $4.2  million in  FY10,  by  $2.1                                                                   
million in  FY11, and by $1.6  million in years  FY12 through                                                                   
FY15.   The fiscal  note requests  money to  handle one  loan                                                                   
officer position,  which would come out of the  loan fund, as                                                                   
do all of the operating expenses.                                                                                               
                                                                                                                                
1:48:17 PM                                                                                                                    
                                                                                                                                
Representative  Austerman MOVED to  REPORT CSHB 20  (FIN) out                                                                   
of  Committee, as  amended, with  individual  recommendations                                                                   
and the accompanying fiscal note.   There being NO OBJECTION,                                                                   
it was so ordered.                                                                                                              
                                                                                                                                
CSHB 20 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and  with fiscal note #1 by  the Department of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 1:49 PM.                                                                                           
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
CS Changes for SB 89.PDF HFIN 3/30/2009 1:30:00 PM
SB 89
2009-03-18ATG Letter to AK Joint Armed Services Committee.pdf HFIN 3/30/2009 1:30:00 PM
SB 89
CSSB 89 Sponsor Statement.PDF HFIN 3/30/2009 1:30:00 PM
SB 89