Legislature(2009 - 2010)HOUSE FINANCE 519
04/09/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB45 | |
| HB44 | |
| SB3 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 45 | TELECONFERENCED | |
| + | SB 3 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 44 | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 9, 2009
1:41 p.m.
1:41:27 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:41 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas, Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
MEMBERS ABSENT
Representative Richard Foster
Representative Woodie Salmon
ALSO PRESENT
Senator Gene Therriault, Sponsor; Sharon Long, Staff,
Senator Charlie Huggins; McHugh Pierre, Liaison, Department
of Military and Veterans Affairs; Representative Mike
Chenault; Tom Wright, Staff, Representative Mike Chenault,
Sponsor; Tim Benintendi, Staff, Senator Don Olson; Frank
Homan, Commissioner, Commercial Fisheries Entry Commission
PRESENT VIA TELECONFERENCE
Pat Luby, Advocacy Director, Alaska Association of Retired
Persons (AARP), Anchorage; Joe Fields, Chair of Alaska
Veterans Advisory Committee
SUMMARY
CSSB 45(FIN)
"An Act relating to state employment preferences
for veterans, former prisoners of war, and members
of the Alaska National Guard; authorizing the
Department of Military and Veterans' Affairs to
establish and maintain Alaska veterans'
cemeteries; establishing the Alaska veterans'
cemetery fund in the general fund; and authorizing
the legislature to appropriate income from fees
collected for commemorative veterans' plates to
the Alaska veterans' cemetery fund."
CSSB 45 (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 44 "An Act relating to investments applicable to
energy; authorizing the Alaska Permanent Fund
Corporation to make in-state energy project
investments; and authorizing certain public
corporations to issue bonds for energy projects."
HB 44 was HEARD and HELD in Committee for further
consideration.
SB 3 "An Act authorizing an Alaska regional development
organization to use the Alaska Commercial
Fisheries Entry Commission as an informational
resource."
SB 3 was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note #1
by the Department of Commerce, Community and Economic
Development and zero fiscal note #2 by the
Department of Fish and Game.
1:41:36 PM
CS FOR SENATE BILL NO. 45(FIN)
"An Act relating to state employment preferences for
veterans, former prisoners of war, and members of the
Alaska National Guard; authorizing the Department of
Military and Veterans' Affairs to establish and
maintain Alaska veterans' cemeteries; establishing the
Alaska veterans' cemetery fund in the general fund; and
authorizing the legislature to appropriate income from
fees collected for commemorative veterans' plates to
the Alaska veterans' cemetery fund."
1:42:22 PM
SENATOR GENE THERRIAULT, SPONSOR, discussed the Section
Summary, Legal Services Memorandum, February 3, 2009,
Sections 1-9 (copy on file). Section 1 is intent language
which indicates that it is the intent of the Department of
Military and Veterans Affairs (DMVA) to begin planning and
designing a veterans' cemetery in Fairbanks and to submit a
report to the presiding officers of the legislature before
December 15, 2009.
Senator Therriault reported that Sections 2-4 create a
cemetery fund from revenues from veterans' license plate
sales. Sections 5-9 address changes in language regarding
veterans hiring preference. Section 10 is enabling language
making reference to U.S. codes.
Senator Therriault related that there are 100,000 veterans
in Alaska - the highest per capita the in nation.
Currently, Ft. Richardson and Sitka have veterans'
cemeteries. The plan is to build a cemetery in Fairbanks,
which has the second densest military population and is near
several bases. Many military retire in Alaska's interior.
SHARON LONG, STAFF, SENATOR CHARLIE HUGGINS, added that the
overriding value of the bill is that it provides for a
sacred resting place for veterans. She said that Senator
Huggins was proud to be a sponsor of the bill.
1:46:45 PM
Senator Therriault referred to a letter of community support
by the Fairbanks North Star Borough (copy on file). He
listed people available to answer questions regarding the
bill.
Vice-Chair Thomas asked if, because he was a veteran, his
wife could be buried in a state veterans' cemetery. Senator
Therriault deferred to Mr. Pierre to answer.
MCHUGH PIERRE, LIAISON, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, reported that wives would have burial rights in
state veterans' cemeteries, similar to national veterans'
cemetery benefits.
1:49:21 PM
PAT LUBY, ADVOCACY DIRECTOR, ALASKA ASSOCIATION OF RETIRED
PERSONS (AARP), ANCHORAGE, testified via teleconference. He
reported that AARP has a large number of veterans. He spoke
strongly in favor of SB 45.
JOE FIELDS, CHAIR OF ALASKA VETERANS ADVISORY COMMITTEE,
testified via teleconference. He maintained that veterans
were dying at a fast pace and the potential for a resting
place of honor in Alaska was important. He suggested
passing the bill as quickly as possible.
1:51:46 PM
Co-Chair Stoltze closed public testimony. He requested an
explanation of the Department of Military Affairs fiscal
note.
Mr. Pierre commented that the fiscal note reflects the
operating budget portion of $250,000. He considered that
amount seed money in order to qualify for $5 million in
federal dollars from the Veterans' Administration to design
and construct the facility, as well as purchase equipment.
After that the state will be responsible for maintaining the
cemetery. License plate sales should offset some of the
cost.
Co-Chair Stoltze welcomed group donations to this good cause
and requested assistance in keeping the dignity of the
project.
Mr. Pierre added that the land would be donated and no state
money would be needed.
Senator Therriault referred to Section 3 of the bill, which
addresses gifts and donations that can be put into the fund.
1:55:05 PM
Vice-Chair Thomas MOVED to report SB 45 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
CSSB 45 (FIN) was REPORTED out of Committee with a "do pass"
recommendation and with fiscal note #1 by the Department of
Military and Veterans Affairs.
1:55:58 PM AT EASE
1:59:17 PM RECONVENED
HOUSE BILL NO. 44
"An Act relating to investments applicable to energy;
authorizing the Alaska Permanent Fund Corporation to
make in-state energy project investments; and
authorizing certain public corporations to issue bonds
for energy projects."
REPRESENTATIVE MIKE CHENAULT, SPONSOR, mentioned that the
Committee has heard the bill and has made no changes yet.
The proposed amendment would not let the bonds be written
without approval from Legislative Budget and Audit. This
would ensure a legislative review process.
Representative Chenault emphasized that it was time to make
a move forward on in-state gas. He named TransCanada and
the Denali Project as potential projects that, at the
earliest, could be ready in 2020. He voiced concern about
the Railbelt's energy needs in the next 5 years with the
possibility of a gas shortage. He thought the legislature
should enlist every opportunity possible to make sure
Alaskans have a long-term energy supply.
2:02:22 PM
Representative Joule asked if there has been any analysis of
the cost benefit of bringing gas from the North Slope rather
than importing it from somewhere else.
Representative Chenault did not have the numbers, but was
sure there were studies which showed which method was more
cost effective. He related that the amount of gas produced
in Cook Inlet is enough to heat Alaska homes and businesses
during the summer; however, the crunch time happens in
winter. He was not sure which would be the cheapest, but
pointed to the unlimited gas supply available in Alaska,
which could benefit the Railbelt and rural areas.
2:05:28 PM
Co-Chair Stoltze Moved to adopt Amendment 1:
Page 3, line 6:
Delete "The"
Insert "Subject to (b) of this section, the"
Page 3, following line 17:
Insert a new subsection to read:
"(b) Bonds may not be issued under (a) of this section
without the prior written approval of the Legislative
Budget and Audit Committee."
Reletter the following subsection accordingly.
Co-Chair Hawker OBJECTED for discussion purposes.
Co-Chair Hawker read (b) and asked if the Legislative Budget
and Audit Committee has the authority as written.
TOM WRIGHT, STAFF, REPRESENTATIVE MIKE CHENAULT, referred to
a legal opinion in the members' packets which addresses that
question. He noted that it is questionable. The LB&A
Committee is being allowed veto authorization that might be
improper. He pointed out that, in this case, it is a pre-
authorization. The involvement of LB&A is another step in
the process of approval.
Co-Chair Hawker did not agree with that opinion.
2:07:24 PM
Representative Gara explained that currently the bonds can
be issued, but the bill would require legislative approval.
Mr. Wright agreed.
Representative Gara concluded that a bonding bill can be
passed which requires no legislative approval; therefore, a
bonding bill can be passed which requires approval from a
committee. He maintained that delegating it to Legislative
Council is not a problem and Amendment 1 does not make the
bill more challengeable.
2:09:04 PM
Co-Chair Hawker concurred with the concerns raised in the
legal opinion and agreed that it could become a matter of
litigation.
Mr. Wright agreed it was challengeable. He emphasized that
the bill authorizes pre-authorization for the bonds. He
thought an argument could be made on other side.
Co-Chair Hawker WITHDREW his OBJECTION. There being NO
OBJECTION, Amendment 1 was adopted.
Representative Kelly commented on past interactions with
Alaska Natural Gas Pipeline Development Authority (ANGDA).
He questioned ANGDA's usefulness. He wanted assurance
regarding ANGDA's role.
2:11:21 PM
Representative Chenault reported that there was some
indifference with the process and with the relationship with
ANGDA. He shared that when ANGDA was put up for public
vote, he voted against it due to their view of using only
one route, which might have made economic sense at the time.
Over time, and through the legislative process, things have
been added to the ANGDA scope, such as a spur line to the
Cook Inlet.
Representative Chenault stated that his first choice was for
private business to build the line. As a board, ANGDA has
put together some good programs, but has strayed from its
original scope sometimes. However, it is the entity out
there trying to get gas to communities in Alaska at a
reasonable cost. They are not the only choice, but the
legislature needs to step up and look at all options. This
does not give ANGDA permission to go forward regardless of
cost. It does not preclude ANGDA from joining a private
company on this project.
2:14:29 PM
Representative Kelly asked if Representative Chenault was
comfortable with LB&A's role.
Representative Chenault observed that he was more
comfortable with LB&A's involvement, rather than having no
legislative control once the bonds were issued.
HB 44 was HEARD and HELD in Committee for further
consideration.
2:16:45 PM
SENATE BILL NO. 3
"An Act authorizing an Alaska regional development
organization to use the Alaska Commercial Fisheries
Entry Commission as an informational resource."
TIM BENINTENDI, STAFF, SENATOR DON OLSON, explained that the
bill provides a benefit to the state's economic development
organizations, Alaska Regional Development Organizations
(ARDOR's), by allowing them to obtain public information
from the Commercial Fisheries Entry Commission (CFEC)
without charge. The bill would provide only public
information; no confidential information would be made
available, and no custom research would be authorized. The
information would especially benefit the eight ARDOR's which
have commercial fishing as a significant portion of their
economies, and would help them anticipate regional economic
trends and development opportunities.
Mr. Benintendi related that AS 37.10.052 says that resource
agencies shall charge for services and AS 16.43.100 (16)
says the CFEC shall establish reasonable user fees for
services. Thus, the provisions of SB 3 must be done by
statute instead of regulation. The CFEC supports the bill,
and feels the loss of fees would be negligible at less than
$10,000 per year. The bill carries two zero fiscal notes.
Co-Chair Stoltze expressed his continuing effort to reach
out to the commercial fishing industry.
2:18:41 PM
FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY
COMMISSION, indicated full support of the bill in order to
help regional economic development. The ARDOR's are funded
by the state, plus donations and grants. He termed it a
worthy effort.
2:19:51 PM
Representative Crawford expressed his confusion in
understanding the actual effect of the bill. Mr. Benintendi
replied that the main thrust was to benefit the ARDOR's as
their budgets were usually low. The ARDOR's could get this
public information for free, but they would not have access
to confidential information.
Representative Crawford asked for an example of what sort of
information would be advantageous. Mr. Homan remarked that
the ARDOR's were regional developments and their regions may
or may not conform to the way data is presented. ARDOR's
have unique boundaries and the information must be tailored
to fit their requests.
Co-Chair Stoltze interjected that this information aids in
grant requests. Mr. Homan agreed.
2:23:05 PM
Representative Crawford asked why the ARDOR's would want to
know these things. Mr. Homan explained that the ARDOR's use
economic information to promote their area and secure grant
funds from the state or federal government.
Co-Chair Stoltze reiterated that many of these ARDOR's are
in some of the most depressed areas of the state.
Representative Austerman asserted that the ARDOR's don't
benefit the commercial fishermen. Mr. Homan noted that the
ARDOR's had sympathy for the fishermen.
2:25:19 PM
Vice-Chair Thomas asked how the Commercial Fisheries Entry
Commission (CFEC) is funded. Mr. Homan explained that CFEC
was funded entirely by permit license renewal and vessel
licensing. There is no general fund money at this time.
Vice-Chair Thomas emphasized that a large amount of money
was put into vessel licensing and into the Department of
Fish and Game fund. Mr. Homan agreed that CFEC funds itself
as well as a portion of the Commercial Fisheries Division.
2:26:42 PM
Co-Chair Stoltze noted that the two fiscal notes had been
discussed.
Co-Chair Hawker MOVED to report SB 3 out of Committee with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
SB 3 was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note #1 by the
Department of Commerce, Community and Economic Development
and zero fiscal note #2 by the Department of Fish and Game.
ADJOURNMENT
The meeting was adjourned at 2:29 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2009 FNSB Resolution.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| HB 44 Amendment 1 Version E.3.pdf |
HFIN 4/9/2009 1:30:00 PM |
HB 44 |
| SB 45 vs E sectional.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| SB 45 Support.AARP to SFIN co Chairs.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| SB 45 Support. US Sen Begich 022009.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| SB 45 Support. Am Legion,VFW,DAV.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| SB 45 Support Ak Com on Aging022309.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| SB 45 Sponsor Stmt.doc |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| Prese Release.doc |
HFIN 4/9/2009 1:30:00 PM |
SB 45 |
| HB 44 Amendment 2 Version E.2.pdf |
HFIN 4/9/2009 1:30:00 PM |
HB 44 |
| HB 44 Amendment 3 -Gara.doc |
HFIN 4/9/2009 1:30:00 PM |
HB 44 |
| Legal Opinion to Amendment HB44.pdf |
HFIN 4/9/2009 1:30:00 PM |
HB 44 |
| SB3_ARDORletter1.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |
| SB3_ARDORletter2.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |
| SB3_Fish&GameLetter.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |
| SB3_Lower_Kuskokwim_Letter.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |
| SB3_Lower_Kuskokwim_Letter.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |
| SB3_Sponsor_Statement&_Sectional_Analysis.doc |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |
| SB3_SWAMCletter.pdf |
HFIN 4/9/2009 1:30:00 PM |
SB 3 |