Legislature(1995 - 1996)

04/16/1996 02:20 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 16, 1996                                        
                            2:20 P.M.                                          
                                                                               
  TAPE HFC 96 - 123, Side 1, #000 - end.                                       
  TAPE HFC 96 - 123, Side 2, #000 - #573.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark Hanley  called  the House  Finance  Committee                 
  meeting to order at 2:20 P.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Martin                          
  Co-Chair Foster               Representative Mulder                          
  Representative Brown          Representative Navarre                         
  Representative Grussendorf    Representative Parnell                         
  Representative Kelly          Representative Therriault                      
  Representative Kohring                                                       
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Camden  Toohey,  Staff,  Senator  Bert  Sharp;  Tom Garrett,                 
  Director, Division  of Tourism,  Department of  Commerce and                 
  Economic   Development;   Juanita  Hensley,   Chief,  Driver                 
  Services, Division of  Motor Vehicles, Department of  Public                 
  Safety; Annette Kreitzer, Staff, Senator Loren Leman; George                 
  Sullivan,   Mayor,   Anchorage;  Marie   Sansone,  Assistant                 
  Attorney General, Civil Division, Department of Law; Crystal                 
  Smith, Legal Administrator, Department of Law; Wendy Redman,                 
  Vice President, University  Relations, University of Alaska;                 
  Fred  Pascoe,  Staff, Representative  Tom  Brice; Nico  Bus,                 
  Acting  Director,  Division   of  Administrative   Services,                 
  Department of Natural  Resources; Douglas Bailey, (Testified                 
  via  teleconference),  Student,  Anchorage;  Cindy  Feather,                 
  (Testified via teleconference), Director, University Student                 
  Housing  Program, University  of Alaska,  Anchorage; Chester                 
  Wegner, (Testified via teleconference), State Fire Marshall,                 
  Anchorage;  Chris  Kennedy, (Testified  via teleconference),                 
  Assistant Attorney General, Civil Division, Anchorage; Frank                 
  John Dillon, (Testified via  teleconference), Executive Vice                 
  President,  Alaska  Trucking Association,  Anchorage; Sharon                 
  Young,  (Testified  via  teleconference),   State  Recorder,                 
  Recorder's   UC   Component,   Support  Services   Division,                 
  Department of Natural Resources (DNR), Anchorage.                            
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 69     An Act relating  to hazardous chemicals, hazardous                 
            materials, and hazardous waste.                                    
                                                                               
                                1                                              
                                                                               
                                                                               
            HCS CS SB  69 (FIN) was reported  out of Committee                 
            with a  "do pass"  recommendation and  with fiscal                 
            notes  by  the  Senate   Finance  Committee  dated                 
            2/07/96, the  Department of Military  and Veterans                 
            Affairs  dated  2/07/96,  and  the  Department  of                 
            Public Safety dated 2/07/96.                                       
                                                                               
  SB 86     An Act  relating  to issuance  of special  request                 
            commemorative  gold  rush  motor  vehicle  license                 
            plates.                                                            
                                                                               
            SB  86   was  HELD   in   Committee  for   further                 
            consideration.                                                     
                                                                               
  SB 163    An Act approving the University of  Alaska's plans                 
            to enter  into  long-term  obligations  to  borrow                 
            money from the  Alaska Housing Finance Corporation                 
            for the acquisition of student housing facilities;                 
            and providing for an effective date.                               
                                                                               
            CS  SB  163 (FIN)(title  am)  was reported  out of                 
            Committee with a "do pass" recommendation and with                 
            zero fiscal notes by Statewide Budget Office dated                 
            3/27/96, the Department  of Revenue dated  2/14/96                 
            and a fiscal  impact note by the  Statewide Budget                 
            Office.                                                            
                                                                               
  HB 438    An  Act relating  to  the  indexing  of  documents                 
            recorded  in  the  state recorder's  offices;  and                 
            providing for an effective date.                                   
                                                                               
            HB 438  was reported out  of Committee with  a "do                 
            pass" recommendation and  with a zero  fiscal note                 
            by  the  Department  of  Natural  Resources  dated                 
            3/12/96 and fiscal impact  note by the  Department                 
            of Natural Resources.                                              
  SENATE BILL 86                                                               
                                                                               
       "An   Act  relating  to  issuance  of  special  request                 
       commemorative gold rush motor vehicle license plates."                  
                                                                               
  CAMDEN TOOHEY, STAFF,  SENATOR BERT  SHARP, stated that  the                 
  purpose of SB 86 would be  to commemorate the period between                 
  1994 and 2004 as the Alaska Gold Rush Centennial Decade with                 
  the issuance  of a  new motor  vehicle license  plate.   The                 
  Commissioner of the Department of  Public Safety (DPS) would                 
  design the  license plate  in consultation  with the  Alaska                 
  Gold   Rush  Centennial   Task  Force   and   license  plate                 
  manufacturer.                                                                
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Mr. Toohey continued, the legislation  had been requested by                 
  the Alaska  Gold  Rush Centennial  Task  Force  representing                 
  twenty-five Alaskan communities  and parts  of Canada.   The                 
  Gold Rush Task Force was established to coordinate statewide                 
  celebrations of the  100th anniversary  in order to  promote                 
  the understanding of  the importance of the  "Gold Rush Era"                 
  in Alaska's history and to enhance tourism opportunities.                    
                                                                               
  He  added that  the 18th  Alaska  Legislature passed  SB 407                 
  which changed the  standard plate to  the Gold Rush  license                 
  plate but Governor Hickel vetoed the bill because it removed                 
  the two plate requirement.                                                   
                                                                               
  TOM GARRETT, DIRECTOR,  DIVISION OF  TOURISM, DEPARTMENT  OF                 
  COMMERCE  AND ECONOMIC  DEVELOPMENT  (DCED),  spoke  to  the                 
  tourism promotion as  it related  to the  Gold Rush  license                 
  plate.  Gold Rush is going to become the predominating theme                 
  affecting all  tourism promotions  for the  next few  years.                 
  The Department is working closely  with the Yukon government                 
  in  the promotion and marketing of the theme.  He noted that                 
  the Administration is supportive of the legislation.                         
                                                                               
  Representative Mulder  asked  if there  had been  discussion                 
  which would make the design a ten year temporary plate.  Mr.                 
  Toohey stated there  had not  been discussion, although  the                 
  purpose of the legislation  would be to extend the  ten year                 
  celebration  to  2004.  Representative  Mulder  inquired  if                 
  Senator Sharp would be opposed to reinstating the yellow and                 
  blue license  plate after  ten years.   Mr.  Toohey did  not                 
  think that Senator Sharp would oppose that concept.                          
                                                                               
  Co-Chair Hanley inquired  if everyone  would be required  to                 
  replace their license plates.   Mr. Toohey stated they would                 
  not.  The plate will take about a year to design and will be                 
  ready to put on cars in  the beginning of 1998.  There  will                 
  be a  phase in  of the new  plate when  the yellow  and blue                 
  stock  is   depleted;   then  the   Department  will   start                 
  distributing the new  theme plate.   That plate will be  for                 
  vehicles newly registered or for  those others that want  to                 
  change over their plates at a $5 dollar charge.                              
                                                                               
  JUANITA HENSLEY, CHIEF,  DRIVER SERVICES, DIVISION OF  MOTOR                 
  VEHICLES, DEPARTMENT OF  PUBLIC SAFETY (DPS), noted  that it                 
  was the intent of the Department to issue a specified number                 
  of plates and that replacement plates would not be required.                 
                                                                               
                                                                               
  Co-Chair Hanley questioned  the fiscal  note reference to  a                 
  10% vendor price  increase.  Ms.  Hensley responded that  it                 
  was anticipated that the new  contract because of additional                 
  graphics, would  cost 10% more.   Co-Chair Hanley  asked the                 
  cost of the "vanity"  plates.  Ms. Hensley replied  that the                 
                                                                               
                                3                                              
                                                                               
                                                                               
  "vanity" plates cost substantially more per plate, although,                 
  the "recovery" cost  exceeds the  cost of each  plate.   The                 
  Gold Rush plate would be a  general issue plate; the current                 
  contract  cost  would  be approximately  $2.68  each  set of                 
  plates.                                                                      
                                                                               
  Co-Chair Foster asked what  had happened to all  the designs                 
  provided in  the  contest  sponsored  two years  ago.    Ms.                 
  Hensley explained that  contest had produced the  two vanity                 
  plates.                                                                      
                                                                               
  Representative  Brown  suggested  that the  language  should                 
  clearly define the intent that everyone was not required  to                 
  have a new Gold Rush plate.                                                  
                                                                               
  Representative  Brown  MOVED  a  conceptual amendment  which                 
  clarified  that the change would be  a "transition" and that                 
  the Department would  replace the  existing plates with  the                 
  new design. There being NO OBJECTION, it was adopted.                        
                                                                               
  Representative  Mulder MOVED  a  conceptual amendment  which                 
  would allow for a  plate to convert back to  its traditional                 
  blue and gold after the year 2004.  He understood that would                 
  make the legislation a temporary  law.  Representative Brown                 
  recommended  that both  of  these statements  be  displayed,                 
  providing a transitional amendment.   She suggested that the                 
  bill be HELD until the draft was returned.                                   
                                                                               
  Representative Mulder  thought that perhaps  the legislation                 
  would   benefit   from  a   sunset   clause  in   for  2004.                 
  Representative Mulder WITHDREW THE MOTION for the conceptual                 
  amendment.  There being NO OBJECTION, it was withdrawn.                      
                                                                               
  Mr. Toohey stated  that the  concept of reverting  to a  new                 
  plate  in the year of 2004  had been discussed in the Senate                 
  Finance Committee.                                                           
                                                                               
  Co-Chair Hanley  noted that the transitional  language would                 
  be drafted and that the bill  would be HELD in Committee for                 
  further consideration following review of the draft.                         
                                                                               
  CS  SB   86  (FIN)  was   HELD  in  Committee   for  further                 
  consideration.                                                               
  SENATE BILL 69                                                               
                                                                               
       "An Act  relating  to  hazardous  chemicals,  hazardous                 
       materials, and hazardous waste."                                        
                                                                               
  ANNETTE  KREITZER, STAFF,  SENATOR  LOREN  LEMAN,  spoke  in                 
  support  of  SB  69.   She  explained  that  as we  downsize                 
  government,  and  make it  more "user  friendly", a  need to                 
                                                                               
                                4                                              
                                                                               
                                                                               
  assess the efficiency becomes more apparent.                                 
                                                                               
  Currently, businesses  in Alaska  must report  virtually the                 
  same information  about hazardous  chemicals, materials  and                 
  wastes in four different formats to four different entities.                 
  The proposed legislation  would eliminate three  formats and                 
  one entity.                                                                  
                                                                               
  The  bill  was  drafted  with   input  from  industry,  fire                 
  departments, Department of Environmental  Conservation (DEC)                 
  and the Department of Public  Safety (DPS), Division of Fire                 
  Prevention.   The information reported would  be streamlined                 
  to one form  which would   satisfy federal, state and  local                 
  reporting requirements.                                                      
                                                                               
  Ms. Kreitzer continued, providing the Committee  a sectional                 
  analysis of  the legislation.   Section 1  was an  amendment                 
  added  in the  House Resources  Committee  and would  add an                 
  immunity  to  Title  9,  protecting  the State  from  strict                 
  liability for oil spills or  other environmental releases at                 
  the REAA schools.  Without the  change, the State and school                 
  districts could  each be liable for 100%  of damages claimed                 
  from environmental problems on school  sites.  The amendment                 
  was added as part of the State's response to the Toksook Bay                 
  lawsuit.                                                                     
                                                                               
  Section 2 & 3 deletes reference to AS 18.70.310 of the state                 
  fire marshals placarding program.  A placarding program list                 
  which hazardous substances or chemicals  are in the vicinity                 
  and how one should respond in fire suppression.  The program                 
  has not been effective nor well implemented.                                 
                                                                               
  Ms. Kreitzer commented that Section  4, Subsection (a) would                 
  make the State  Emergency Response Commission the  agency to                 
  approve a form  to be used  for the reporting of  placarding                 
  information  under a  municipal  placarding  program.    The                 
  action would ensure  that if the  form needs to be  changed,                 
  the  commission  could  coordinate with  all  agencies  that                 
  receive such reports.                                                        
                                                                               
  Section 5, Subsection  (c) refers to the  existing municipal                 
  placarding program.   Currently under State or  federal law,                 
  either  a  municipality  or  the  State  Emergency  Response                 
  Commission  (SERC)  may  add  substances  to  those  already                 
  required  to be  reported.   This  section ensures  a public                 
  process for adding or removing substances.                                   
                                                                               
  MARIE SANSONE,  ASSISTANT ATTORNEY GENERAL,  CIVIL DIVISION,                 
  DEPARTMENT  OF  LAW, commented  that the  Attorney General's                 
  Office was supportive of the proposed legislation.                           
                                                                               
  Ms. Kreitzer spoke to Amendment #1 which would place a time-                 
                                                                               
                                5                                              
                                                                               
                                                                               
  line  on  when the  form  should be  developed,  which would                 
  provide date certain times for the public.                                   
                                                                               
  Representative  Mulder  MOVED  to  adopt  Amendment  #1,  9-                 
  LS0360\K.1, Lauterbach, 2/06/96.   There being NO OBJECTION,                 
  it was adopted.                                                              
                                                                               
  CHESTER  WEGNER,  (TESTIFIED VIA  TELECONFERENCE), ASSISTANT                 
  STATE FIRE MARSHAL,  ANCHORAGE, advised that the  State Fire                 
  Marshal's  Office was  in support  of the  legislation.   He                 
  stated that the current program  was difficult to implement.                 
                                                                               
                                                                               
  CHRIS  KENNEDY,  (TESTIFIED  VIA TELECONFERENCE),  ASSISTANT                 
  ATTORNEY  GENERAL,  CIVIL  DIVISION, ANCHORAGE,  offered  to                 
  answer questions on Section 1 of the legislation.                            
                                                                               
  CRYSTAL  SMITH,  LEGAL  ADMINISTRATOR,  DEPARTMENT  OF  LAW,                 
  provided an overview of Section 1.  Section 1 represents one                 
  aspect  of  the  Administration's  response  to  the  States                 
  exposure  to the major  liability which was  revealed in the                 
  Toksook Bay  lawsuit.  That lawsuit was  brought in response                 
  to a fuel  spill at an REAA  school which occurred in  1990.                 
  The State  received that  school from  the Bureau  of Indian                 
  Affairs (BIA) just a year prior to the incident.                             
                                                                               
  The result of  the lawsuit has  been addressed by a  consent                 
  judgement.  A settlement against the  State was made and the                 
  REAA's  are now paying  a portion of that  settlement.  As a                 
  result, the  State's  liability for  damages  was  revealed.                 
  Without the  change included  in  Section 1,  the State  and                 
  school district could be held 100% liable for any damages at                 
  the  school  sites.     The  exemption  from   liability  is                 
  "narrowly"  drawn  and would  only  apply for  liability for                 
  damages.                                                                     
                                                                               
  Ms.  Smith continued, Section  14 includes  the transitional                 
  applicability  language  which  has  to  do with  Section  1                 
  exemptions.   Representative Parnell asked  if under current                 
  law,  the State  was  exempt  from  strict liability.    Mr.                 
  Kennedy  advised that the legislation would change liability                 
  for both the State and the REAA.                                             
                                                                               
  Currently,  both the State and the  REAA are strictly liable                 
  under AS 46.03.822.   Representative Parnell asked  if there                 
  would  be  any  other transfers  by  the  federal government                 
  similar  to  the  REAA's  that  the  State  currently  bears                 
  exposure for which are not  being addressed in the  proposed                 
  legislation.    Mr. Kennedy  suggested there  probably were,                 
  although in SB 69,  a specific problem was addressed  at the                 
  request of the Senate leadership.                                            
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  FRANK JOHN DILLON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE                 
  VICE  PRESIDENT,  ALASKA  TRUCKING  ASSOCIATION,  ANCHORAGE,                 
  commented that  the association which he  represents handles                 
  the  majority  of  the  hazardous  materials in  the  State.                 
  Currently,  that  group  is  stringently  regulated  by  the                 
  federal   government.     Mr.  Dillon  requested   that  the                 
  legislation  not  move   beyond  federal  requirements   and                 
  regulations.                                                                 
                                                                               
  At  this  time, tremendous  amounts  of hazardous  waste and                 
  materials are moved  without incident.  The  reason this can                 
  be done, is  that there  currently exists a  body of  "good"                 
  safety  regulations and required enforcement of those rules.                 
  He requested  that the legislation  not move beyond  what is                 
  reasonable or what is contained in federal regulations.                      
                                                                               
  (Tape Change, HFC 96-123, Side 2).                                           
                                                                               
  Representative Kelly  asked if "hazardous waste"  as defined                 
  in AS  46.03.900 and  the Environmental  Statute 40  CFR 261                 
  were different.  Ms. Kreitzer replied that  the AS 46.03.900                 
  was more encompassing than the other one referenced.                         
                                                                               
  Ms. Sansone added that the  hazardous waste definition which                 
  is in law in  Title 46 is  broad and written in  qualitative                 
  terms.    However, in  implementing  the State  Statute, DEC                 
  adopted   the   Environmental   Protection    Agency   (EPA)                 
  identification  of  hazardous  waste   sets  in  regulation,                 
  whereas, the  State is  using the  federal standard  list of                 
  hazardous waste.   There is a  provision in State law  which                 
  allows the commissioner of  DEC to find other ways  in which                 
  something  may  be   "hazardous".     She  added,  the   DEC                 
  commissioner  has   never  carried  through  and   named  an                 
  additional substance.                                                        
                                                                               
  The definition  of "hazardous materials"  references another                 
  section  in  the  federal  regulations.   Those  regulations                 
  designate  and   identifies  hazardous  materials   for  the                 
  purposes   of   transportation   laws.     Regarding   those                 
  regulations,  the  State and  local  laws are  pre-empted by                 
  federal regulations which are more detailed.                                 
                                                                               
  Representative Kelly MOVED a conceptual amendment to Section                 
  11, Subsection  (A) & (B),  removing (B),  which he  thought                 
  would avoid "non-achievable" standards currently existing in                 
  regulation.    Representative  Brown  asked which  chemicals                 
  would be covered in removal of Subsection (B).  There was no                 
  representative from DEC who could explain that exemption.                    
                                                                               
  Ms. Kreitzer  asserted that  the Senate Resources  Committee                 
  made it explicit  that it  was not their  intent to  include                 
  anything  more stringent  then  already  existed in  federal                 
                                                                               
                                7                                              
                                                                               
                                                                               
  regulations.  She  thought that the  legislation was a  step                 
  toward  streamlining all  the  current reportings  required.                 
  Removing portions of the legislation could affect the entire                 
  bill.  Representative Kelly voiced concern that the language                 
  was "too  broad" and removal  would make the  State standard                 
  less stringent.                                                              
                                                                               
  Co-Chair  Hanley pointed out that the  intent was to combine                 
  four  different requirements into one.  He explained that if                 
  information  was  required  to be  reported  "somewhere"  in                 
  statute, and then  removed from the form,  someone might not                 
  be  in  compliance  by  not  reporting  on  that  one  form.                 
  Representative Kelly WITHDREW  the MOTION to  the amendment.                 
  There being NO OBJECTION, it was withdrawn.                                  
                                                                               
  Representative Brown questioned Section 5,  Page 3, Line 20,                 
  the  change  from  500  pounds  to  10  thousand pounds  for                 
  reporting of a hazardous chemical.  Ms. Kreitzer stated that                 
  change was consistent with federal law.                                      
                                                                               
  Representative Therriault asked why there  was a zero fiscal                 
  note for DEC.   Ms. Kreitzer  responded, currently, DEC  has                 
  been  delegated by the  State Emergency  Response Commission                 
  (SERC)  as  the agency  which  receives "community  right to                 
  know" reports.  That motion has  not been rescinded to date.                 
  DEC  currently  makes the  report  available and  the Senate                 
  assumed that DEC could continue  to provide that obligation.                 
  She emphasized that this is not a new requirement.                           
                                                                               
  Representative Martin MOVED to report HCS CS SB 69 (FIN) out                 
  of Committee  with individual recommendations.   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  HCS CS SB 69 (FIN) was reported  out of Committee with a "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department of Public  Safety dated  2/07/96 and zero  fiscal                 
  notes by the Department of Military & Veterans Affairs dated                 
  2/07/96 and the Senate Finance Committee dated 2/07/96.                      
  SENATE BILL 163                                                              
                                                                               
       "An Act approving  the University of Alaska's  plans to                 
       enter into long-term obligations  to borrow money  from                 
       the  Alaska   Housing  Finance   Corporation  for   the                 
       acquisition   of   student   housing  facilities;   and                 
       providing for an effective date."                                       
                                                                               
  WENDY   REDMAN,   VICE   PRESIDENT,  UNIVERSITY   RELATIONS,                 
  UNIVERSITY  OF  ALASKA, spoke  in support  of  SB 163.   She                 
  pointed out that last year the bill included both Juneau and                 
  Ketchikan  housing  projects  which  this  year   have  been                 
  removed.  The  Juneau housing project  was funded last  year                 
                                                                               
                                8                                              
                                                                               
                                                                               
  with a cash appropriation; the  Ketchikan housing project is                 
  currently going  forward  with private  financing through  a                 
  local  bank.    The  proposed  legislation  is only  for  an                 
  Anchorage student housing project.                                           
                                                                               
  The  University  has  worked  with  Alaska  Housing  Finance                 
  Corporation (AHFC) over  the interim  in order  to create  a                 
  financing plan  which will meet  both entities  needs.   The                 
  Governor has agreed  to include the  project as part of  the                 
  AHFC Capital Improvement Project (CIP) for FY98.                             
                                                                               
  Ms. Redman added that  it had not been the Board  of Regents                 
  intent  to  turn Anchorage  into  a residential  campus.   A                 
  residential campus  would have between  35% to 55%  of their                 
  students  housed.   The  Fairbanks  campus is  a residential                 
  campus.  Currently, in Anchorage, only  3% of those students                 
  are residential.  With the proposed legislation, that number                 
  would  increase to 7%.   The  long range  goals would  be to                 
  increase  the Anchorage campus to  15% students housed.  She                 
  urged the Committee's support of the legislation.                            
                                                                               
  Representative Brown asked  the source of the  interest rate                 
  subsidy.  Ms.  Redman  stated that  would  result  from AHFC                 
  reserves.                                                                    
                                                                               
  Representative Navarre  voiced support  of the  legislation.                 
  He  suggested  assessment   of  housing  needs   within  the                 
  outlining campuses.                                                          
                                                                               
  GEORGE SULLIVAN, MAYOR,  ANCHORAGE, spoke  in support of  SB                 
  163, pointing out that the Anchorage campus has an extensive                 
  waiting list for campus bed space.                                           
                                                                               
  DOUGLAS  BAILEY,  (TESTIFIED  VIA TELECONFERENCE),  STUDENT,                 
  UNIVERSITY OF ALASKA, ANCHORAGE, testified in support of the                 
  bill.  He stressed the need  for more housing for University                 
  students on the Anchorage campus.                                            
                                                                               
  CINDY  FEATHER,  (TESTIFIED  VIA TELECONFERENCE),  DIRECTOR,                 
  STUDENT HOUSING  PROGRAM, UNIVERSITY  OF ALASKA,  ANCHORAGE,                 
  offered to answer  any questions of the  Committee regarding                 
  the  proposed  project or  financial concerns  in connection                 
  with it.  She stressed that the program has a lot of support                 
  from the public and from the students.                                       
                                                                               
  Representative Navarre MOVED to report CS SB 163 (FIN)(title                 
  am) out of Committee with individual recommendations.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  CS SB 163 (FIN) (tile am) was reported out of Committee with                 
  a  "do  pass"  recommendation  and with  a  fiscal  note  by                 
  Statewide  Budget  Office  and  zero  fiscal  notes  by  the                 
                                                                               
                                9                                              
                                                                               
                                                                               
  Statewide Budget Office dated 3/27/96  and the Department of                 
  Revenue dated 2/14/96.                                                       
  HOUSE BILL 438                                                               
                                                                               
       "An Act relating to the  indexing of documents recorded                 
       in the state  recorder's offices; and providing  for an                 
       effective date."                                                        
                                                                               
  FRED PASCOE, STAFF,  REPRESENTATIVE TOM  BRICE, spoke to  HB                 
  438.    He  stated  that the  legislation  would  mandate  a                 
  geographic  location   indexing  method  within   the  State                 
  Recorder's Office.   The result will be  the continuation of                 
  an effective cataloguing system  of lands in the State,  and                 
  future possibilities  of cross referencing  that information                 
  with the resources, leases, and  claims information in other                 
  data bases.                                                                  
                                                                               
  Mr.  Pascoe stated  that under  the current  work  load, the                 
  Record's Office  does not  anticipate  a significant  fiscal                 
  impact.    Land is  an  important  asset in  our  State, and                 
  providing the  data for an eventually up-to-date, integrated                 
  system for recording and retrieving resource, ownership, and                 
  location data is in everyone's best interest.                                
                                                                               
  SHARON   YOUNG,   (TESTIFIED   VIA  TELECONFERENCE),   STATE                 
  RECORDER,   RECORDER'S   UC   COMPONENT,  SUPPORT   SERVICES                 
  DIVISION, DEPARTMENT OF NATURAL RESOURCES, ANCHORAGE, stated                 
  that  HB  438  would  mandate the  location  index  for  the                 
  recording system.  A location  index is currently maintained                 
  by the  State, which  has been  a  curtesy for  a number  of                 
  years.   Because it  is a "curtesy",  it gives way  to other                 
  statutory mandates.   There  are many  location gaps  in the                 
  index at this time.  She offered  to answer questions of the                 
  Committee.                                                                   
                                                                               
  Representative  Mulder  referenced the  revised  fiscal note                 
  included   by   the   Department   of   Natural   Resources.                 
  Representative Brown voiced concern with the lack of funding                 
  to implement the fiscal impact.  She suggested that these be                 
  program receipts.   Ms. Young pointed  out that the bill  is                 
  viewed as  "prospective", being too  extensive a task  to go                 
  back and capture the old information.                                        
                                                                               
  NICO  BUS, DIRECTOR,  DIVISION  OF ADMINISTRATIVE  SERVICES,                 
  DEPARTMENT OF  NATURAL RESOURCES, added,  initially when the                 
  legislation was evaluated, there were  two fiscal notes, one                 
  for the State Recorder's Office  submitted January 29, 1996,                 
  and  one  for  the  Information  Resource Management.    The                 
  revised fiscal note deals only with  the impact to the State                 
  Recorder's Office.   Now  that has  been changed  to a  zero                 
  impact.    He  added,   however,  the  Information  Resource                 
                                                                               
                               10                                              
                                                                               
                                                                               
  Management fiscal note is still valid.                                       
                                                                               
  Representative Brown MOVED to report HB 438 out of Committee                 
  with individual  recommendations and  with the  accompanying                 
  fiscal notes.  There being NO  OBJECTION, it was so ordered.                 
                                                                               
                                                                               
  HB  438  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with  a fiscal note by the  Department of                 
  Natural  Resources dated 3/12/96 and  a new zero fiscal note                 
  by the Department of Natural Resources.                                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:35 P.M.                                           
                                                                               
                                                                               
                               11                                              

Document Name Date/Time Subjects