Legislature(2003 - 2004)

04/19/2004 02:15 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 19, 2004                                                                                           
                         2:15 P.M.                                                                                              
                                                                                                                                
TAPE HFC 04 - 88, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House Finance Committee meeting                                                                    
to order at 2:15 P.M.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Harris, Co-Chair                                                                                            
Representative Bill Williams, Co-Chair                                                                                          
Representative Kevin Meyer, Vice-Chair                                                                                          
Representative Mike Chenault                                                                                                    
Representative Eric Croft                                                                                                       
Representative Hugh Fate                                                                                                        
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Carl Moses                                                                                                       
Representative Bill Stoltze                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Jim Pound, Staff to Representative Fate; Jim Shine, Staff to                                                                    
Representative Anderson; Jim Derringer, Staff to                                                                                
Representative Fate; Nico Bus, Director, Administrative                                                                         
Services, Department Of Natural Resources                                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dick Mylius, Deputy Director, Division of Mining Land and                                                                       
Water, Department of Natural Resources, Anchorage                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
                                                                                                                                
HB 319         An Act relating to the disposal of state land                                                                    
               by lottery; and relating to the disposal,                                                                        
               including    sale   or   lease,    of   remote                                                                   
               recreational cabin sites.                                                                                        
                                                                                                                                
               CSHB 319(FIN) was REPORTED out of Committee                                                                      
               with individual recommendations and with two                                                                     
               new fiscal impact notes.                                                                                         
                                                                                                                                
HB 467         An Act establishing an Alaska Commemorative                                                                      
               Coin   Commission   to  develop   the   design                                                                   
               concepts    and   to   make    recommendations                                                                   
               regarding  the  final  design  of  the  Alaska                                                                   
               quarter  under  the  50  States  Commemorative                                                                   
               Coin   Program  Act;  and  providing   for  an                                                                   
               effective date.                                                                                                  
                                                                                                                                
               HB 467 was heard and HELD in Committee for                                                                       
               further consideration.                                                                                           
                                                                                                                                
HB 476         An Act establishing the Alaska Statehood                                                                         
               Celebration  Commission; and providing  for an                                                                   
               effective date.                                                                                                  
                                                                                                                                
               CSHB 476(STA) was REPORTED out of Committee                                                                      
               with  individual recommendations and  with two                                                                   
               zero fiscal impact notes.                                                                                        
                                                                                                                                
HOUSE BILL NO. 319                                                                                                            
                                                                                                                                
     An Act relating to the disposal of state land by                                                                           
     lottery; and relating to the disposal, including sale                                                                      
     or lease, of remote recreational cabin sites.                                                                              
                                                                                                                                
Representative Fate MOVED to ADOPT Amendment #2 which                                                                           
replaces the previous Amendment #2. Co-Chair Williams                                                                           
OBJECTED for purposes of discussion.                                                                                            
                                                                                                                                
Amendment #2, Version W.5 dated 4-19-04, reads:                                                                                 
                                                                                                                                
Page 1, line 2, following "deeds;":                                                                                           
     Delete "and"                                                                                                             
                                                                                                                                
Page 1, line 3, following "sites":                                                                                            
     Insert "; and providing for an effective date"                                                                           
                                                                                                                                
Page 3, lines 6 - 7:                                                                                                            
     Delete "Sales under this section may be at public or                                                                   
private sale under (g) of this section."                                                                                    
                                                                                                                                
Page 3, lines 25 - 28:                                                                                                          
     Delete all material and insert:                                                                                            
          "(f)  A resident may nominate a parcel for                                                                            
     disposal under this section and, if the resident has                                                                       
     not leased or purchased land under this section during                                                                     
     the three-year period preceding the date of nomination,                                                                    
     may apply for a lease for the nominated parcel under                                                                       
     (b) of this section."                                                                                                      
                                                                                                                                
Page 3, line 29:                                                                                                                
     Delete "five"                                                                                                              
     Insert "10"                                                                                                                
                                                                                                                                
Page 4, line 2:                                                                                                                 
     Delete "400"                                                                                                               
     Insert "700"                                                                                                               
                                                                                                                                
Page 4, line 6, following ";":                                                                                                  
     Insert "and"                                                                                                               
                                                                                                                                
Page 4, lines 7 - 9:                                                                                                            
     Delete all material.                                                                                                       
                                                                                                                                
Page 4, line 10:                                                                                                                
     Delete "(4)"                                                                                                               
     Insert "(3)"                                                                                                               
                                                                                                                                
Page 4, following line 11:                                                                                                      
     Insert a new bill section to read:                                                                                         
        "* Sec. 5.  AS 38.05.600(f) as enacted in sec. 4 of                                                                 
this Act, takes effect January 1, 2005."                                                                                        
                                                                                                                                
JIM  POUND,  STAFF TO  REPRESENTATIVE  FATE,  explained  that                                                                   
Amendment #2, Version  W.5, adds an effective  date clause in                                                                   
the bill title.  The language on page 3, lines  6-7 addresses                                                                   
and  eliminates  private sales,  which  had been  a  concern.                                                                   
Paragraph  (f) in  Section 4  eliminates the  first right  of                                                                   
refusal clause and allows an individual  to file for a lease.                                                                   
The amendment expands "not to  exceed" from five to ten acres                                                                   
because  several  organized  boroughs   have  platting  rules                                                                   
requiring  a  minimum of  ten  acres  for cabin  sites.  This                                                                   
change would make more land available  within those boroughs.                                                                   
                                                                                                                                
Representative Chenault  asked which of the  boroughs require                                                                   
10-acre parcels.  Mr. Pound replied  that both the Mat-Su and                                                                   
North Star Boroughs have 10-acre requirements.                                                                                  
                                                                                                                                
Mr.  Pound explained  that  because of  the  expansion to  10                                                                   
acres,  the waterfront  language  has been  changed from  400                                                                   
feet to "may not exceed 700 feet."  The meander mile has been                                                                   
eliminated because  it was a  buffer zone inadvertently  left                                                                   
in paragraph  3 when  the 660-foot  buffer zone was  removed.                                                                   
The  amendment  also  adds  applicability   to  be  effective                                                                   
January  1,   2005.  Currently  the  Department   of  Natural                                                                   
Resources  (DNR) has  remote  recreational  cabin staking  in                                                                   
excess of 13 acres  and if the bill takes effect  before that                                                                   
process  is completed,  it  would change  the  rules in  mid-                                                                   
stream.                                                                                                                         
                                                                                                                                
Co-Chair  Williams   removed  his  objection.   Amendment  #2                                                                   
Version W.5 was adopted.                                                                                                        
                                                                                                                                
JIM DERRINGER,  STAFF TO REPRESENTATIVE FATE,  explained that                                                                   
the sponsor  had worked with  the DNR  on the fiscal  note to                                                                   
arrive at  an agreement  on the  revenues, which the  sponsor                                                                   
set  higher  than  the  Department's  figures.  The  revenues                                                                   
nearly doubled  when the parcels  changed from 5 acres  to 10                                                                   
acres.  The  Department's  initial   cost  to  implement  the                                                                   
program increased from $300 thousand  to $390 thousand, which                                                                   
is  justifiable. He  said  that the  program  would begin  to                                                                   
break even after the third year,  and would start to generate                                                                   
revenue for the State thereafter.                                                                                               
                                                                                                                                
NICO BUS,  DIRECTOR, ADMINISTRATIVE  SERVICES, DEPARTMENT  OF                                                                   
NATURAL RESOURCES,  agreed that the  DNR had worked  with the                                                                   
sponsor on  the fiscal note.  The revenue has  increased with                                                                   
the shift to 10-acre parcels,  but he thought that the timing                                                                   
of the revenue stream was "optimistic."                                                                                         
                                                                                                                                
Representative  Chenault asked  how Mr.  Bus foresaw  the two                                                                   
programs  working simultaneously.   Mr.  Bus deferred  to Mr.                                                                   
Mylius for explanation.                                                                                                         
                                                                                                                                
DICK MYLIUS,  DEPUTY DIRECTOR,  DIVISION  OF MINING LAND  AND                                                                   
WATER, DEPARTMENT  OF NATURAL RESOURCES,  VIA TELECONFERENCE,                                                                   
ANCHORAGE, said that  the DNR hadn't figured out  how the two                                                                   
programs  would  operate, although  the  differences  between                                                                   
them aren't  as great  with the  new Amendment  #2. The  main                                                                   
change  is that  under this  proposal,  individuals would  be                                                                   
nominating  specific  parcels.  Mr.  Mylius  stated  that  if                                                                   
nominations were in an area where  more parcels were offered,                                                                   
the DNR  would roll those into  the existing program.   These                                                                   
would not be entirely distinct programs.                                                                                        
                                                                                                                                
Representative  Chenault  pointed out  that  the fiscal  note                                                                   
reflects 5 full-time and one part-time  staff, and expands to                                                                   
7 full-time  and one  part-time staff  in 2010. He  commented                                                                   
that if  the two  programs were  combined at  some point,  he                                                                   
would  expect the  fiscal note  to drop.  Mr. Mylius  replied                                                                   
that  the  DNR  initially  envisions  two  separate  programs                                                                   
because many people would apply  for the parcels. The largest                                                                   
initial   cost  under   HB  319   would  involve   processing                                                                   
individual applications for specific parcels.                                                                                   
                                                                                                                                
Representative  Fate MOVED  to  report CSHB  319(FIN) out  of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
CSHB 319(FIN)  was REPORTED out of Committee  with individual                                                                   
recommendations and with two new fiscal impact notes.                                                                           
                                                                                                                              
HOUSE BILL NO. 467                                                                                                            
                                                                                                                                
     An  Act   establishing  an  Alaska   Commemorative  Coin                                                                   
     Commission  to develop the  design concepts and  to make                                                                   
     recommendations  regarding   the  final  design  of  the                                                                   
     Alaska quarter under the 50 States Commemorative Coin                                                                      
     Program Act; and providing for an effective date.                                                                          
                                                                                                                                
JIM SHINE, STAFF  TO REPRESENTATIVE ANDERSON,  explained that                                                                   
the bill follows  the federal authorizing legislation  of the                                                                   
Fifty States Commemorative  Coin Act, and it  establishes the                                                                   
Alaska  Commemorative Coin  Commission  with eleven  members.                                                                   
From 1999  to 2008,  the U.S. Mint  is annually issuing  five                                                                   
quarter  dollar coins  with state  designs  displayed on  the                                                                   
reverse side.  The quarter honoring  Alaska is  scheduled for                                                                   
issuance in August 2008. He discussed  the membership, noting                                                                   
that  six  of the  eleven  members  would be  public  members                                                                   
appointed by the Governor.                                                                                                      
                                                                                                                                
Mr. Shine  noted that  the presiding  officers of the  Alaska                                                                   
House of Representatives and the  Alaska Senate would appoint                                                                   
a  majority   and  minority  member   from  each   body.  The                                                                   
Governor's Office would initiate  a public process to solicit                                                                   
narrative  design  concepts  for   the  Alaska  quarter.  The                                                                   
calendar year  of the  issuance of  the Alaska quarter  would                                                                   
coincide  with  events  leading  to the  celebration  of  the                                                                   
fiftieth year anniversary of Alaska statehood, in HB 476.                                                                       
                                                                                                                                
Representative  Foster  assumed  that the  backsides  of  the                                                                   
state quarters were the states'  emblems or seals.  Mr. Shine                                                                   
said that the design guidelines  are strict and they prohibit                                                                   
the use of  state seals, and copyrighted  photographs require                                                                   
permission for  use. Representative Foster asked  if the coin                                                                   
designs might use state flags.  Mr. Shine said that he didn't                                                                   
think so.                                                                                                                       
                                                                                                                                
Representative Hawker  referred to the fiscal  note and asked                                                                   
why  there  would be  a  half-time  position over  two  years                                                                   
instead of using a current staff  position. Mr. Shine replied                                                                   
that  the  drafter  included  that  language,  but  the  bill                                                                   
sponsor  might   agree  to  use  an  existing   organization.                                                                   
Representative  Hawker  commented  further  on  the  existing                                                                   
support within the Administration.                                                                                              
                                                                                                                                
Representative Hawker  MOVED to ADOPT a zero  fiscal note for                                                                   
CS HB 467(STA). There being NO  OBJECTION, it was so ordered.                                                                   
                                                                                                                                
Co-Chair Harris  asked if  it would also  zero out  the part-                                                                   
time   authorization    employees.   Representative    Hawker                                                                   
confirmed that it would.                                                                                                        
                                                                                                                                
Representative Foster  asked what would happen  to the design                                                                   
of the quarter if the bill doesn't  pass the Legislature this                                                                   
session. Mr.  Shine said  that the bill  would die.  The U.S.                                                                   
Mint would  contact the  Governor's Office  two years  before                                                                   
the calendar  year of  issuance of the  quarter.   He pointed                                                                   
out that this bill simply sets the framework in place.                                                                          
                                                                                                                                
Co-Chair Williams read the Letter of Intent from the State                                                                      
Affairs Committee that accompanies the bill.                                                                                    
                                                                                                                                
Representative Stoltze  suggested substituting the  Letter of                                                                   
Intent as the  context of the bill. Mr. Shine  explained that                                                                   
the State Affairs  Committee wanted the design  concept to go                                                                   
through  the framework  of a  commission, and  the Letter  of                                                                   
Intent  simply  solicits  design   concepts  in  a  statewide                                                                   
contest.                                                                                                                        
                                                                                                                                
Co-Chair Harris  referred to the Sponsor Statement  and asked                                                                   
if the majority and minority members  of the Commission would                                                                   
be public  members or  legislators.   Mr. Shine replied  that                                                                   
the intent  is to  appoint a majority  and a minority  member                                                                   
from both the  House and Senate separate from  the six public                                                                   
members.  The  Governor or  his  appointee would  occupy  the                                                                   
eleventh seat.                                                                                                                  
                                                                                                                                
Representative  Stoltze commented  that he  would prefer  the                                                                   
Commission membership  to be less  politically driven  and to                                                                   
include  geographic  and  ethnic  considerations.  Mr.  Shine                                                                   
replied that the issue had not been considered.                                                                                 
                                                                                                                                
Representative  Foster  agreed with  Representative  Stoltze,                                                                   
and recommended  one member  from each  of the four  judicial                                                                   
districts  so that  the composition  would  be regional.  Mr.                                                                   
Shine noted that  there already are four public  members, one                                                                   
from each judicial district. He  would discuss the removal of                                                                   
legislators from the commission with the bill sponsor.                                                                          
                                                                                                                                
Representative Stoltze offered to work on the bill.                                                                             
                                                                                                                                
HB 467 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 476                                                                                                            
                                                                                                                                
     An Act establishing the Alaska Statehood Celebration                                                                       
     Commission; and providing for an effective date.                                                                           
                                                                                                                                
JIM SHINE, STAFF  TO REPRESENTATIVE ANDERSON,  explained that                                                                   
the Alaska  Statehood Celebration Commission  would celebrate                                                                   
the landmark fifty-year anniversary  of Alaska's statehood in                                                                   
January, 2009.   He discussed the nine-member  composition of                                                                   
the Commission  and its role.  He pointed out that  the State                                                                   
Affairs  Committee   Substitute  reduces  the   size  of  the                                                                   
Commission and the fiscal note.                                                                                                 
                                                                                                                                
Co-Chair  Williams noted  the funding  for two  years of  the                                                                   
five.  Mr.  Shine  replied  that  the  fiscal  note  analysis                                                                   
reflects  the  best estimate  of  the  startup costs  of  the                                                                   
Commission.  After  the  Commission  is  organized,  it  will                                                                   
prepare its  own budget for  subsequent years as  required in                                                                   
the legislation.  He referred  to the bill's language on page                                                                   
3, lines  3-4 that  states: "prepare  a timetable and  budget                                                                   
for completion of its responsibilities under this Act;"                                                                         
                                                                                                                                
Representative  Stoltze asked  if the  history of the  Silver                                                                   
Anniversary  Celebration had  been reviewed  for guidance  in                                                                   
avoiding waste  and diversion  of funding. Mr.  Shine replied                                                                   
that he  had considered it,  and it resulted  the appointment                                                                   
of subcommittees  to spread out  duties and costs over  a few                                                                   
years.                                                                                                                          
                                                                                                                                
Representative Hawker referred  to the fiscal note reflecting                                                                   
a full time position to support  the Commission and commented                                                                   
that  civic  or  business  organizations  could  provide  the                                                                   
needed support.                                                                                                                 
                                                                                                                                
Representative Chenault noted  that no positions are shown on                                                                   
the  fiscal note,  which  is zero,  and  he  wondered if  the                                                                   
position is in the Administrative Services budget.                                                                              
                                                                                                                                
Representative  Hawker  MOVED   to  change  Fiscal  Note  #2,                                                                   
GOV/Executive Office  dated 4/7/04,  to zero. There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Vice-Chair Meyer commented that  five years is a long time to                                                                   
be planning  a party  and it would  add to  the costs  of the                                                                   
Commission. Mr. Shine replied  that the intent of the sponsor                                                                   
was to  start early to form  subcommittees and  receive input                                                                   
for the celebration.                                                                                                            
                                                                                                                                
In  response to  a  question by  Co-Chair  Harris, Mr.  Shine                                                                   
explained the composition of the  Commission. Co-Chair Harris                                                                   
noted,  as  in HB  467,  four  legislators  would be  on  the                                                                   
Commission.                                                                                                                     
                                                                                                                                
Representative Hawker agreed that  five years to plan a party                                                                   
is a  long time,  and suggested  changing the effective  date                                                                   
from January 1,  2005, to January 1, 2007,  which would allow                                                                   
a year for start  up and a year for planning.  Representative                                                                   
Croft respectfully disagreed and  argued that longer planning                                                                   
would allow for a better presentation of Alaska's history.                                                                      
                                                                                                                                
Representative  Hawker  thought   that  Representative  Croft                                                                   
presented a convincing argument for longer planning.                                                                            
                                                                                                                                
Representative  Foster MOVED to  report CSHB 476(STA)  out of                                                                   
Committee  with   individual  recommendations  and   the  two                                                                   
accompanying fiscal  notes. There being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 476(STA)  was REPORTED out of Committee  with individual                                                                   
recommendations and with two zero fiscal impact notes.                                                                          
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:01 P.M.                                                                                          
                                                                                                                                
                                                                                                                                

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