Legislature(2007 - 2008)HOUSE FINANCE 519

04/03/2008 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 214 HUNTING BY MILITARY,COAST GD., DEPENDENTS TELECONFERENCED
Moved HCS CSSB 214(FIN) Out of Committee
+ SB 255 SNETTISHAM REFUNDING BONDS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 289 HOME ENERGY CONSERVATION TELECONFERENCED
Heard & Held
+= SB 303 SANITATION AND WATER GRANTS TELECONFERENCED
Heard & Held
+= HB 366 DISCLOSURE: APPROPRIATIONS FROM PFD FUND TELECONFERENCED
Moved Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 3, 2008                                                                                            
                         1:52 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:52:18 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas Jr.                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Bob Buch;  Senator  Lyda  Green; Dan  Fauske,                                                                   
CEO/Executive Director,  Alaska Housing Finance  Corporation,                                                                   
Department  of Revenue; Bryan  Butcher, Legislative  Liaison,                                                                   
Alaska Housing Finance Corporation;  Ginger Blaisdell, Staff,                                                                   
Senator Lyda Green;  John Combs, Mayor, City  of Palmer; Bill                                                                   
Allen,  City   Manager,  Palmer;   Bill  Griffith,   Facility                                                                   
Programs    Inspector,     Department    of     Environmental                                                                   
Conservation;   Jerry   Burnett,    Director,   Division   of                                                                   
Administrative  Services,   Department  of   Revenue;  Dwayne                                                                   
Peoples,  Deputy  Commissioner,  Department  of  Corrections;                                                                   
Jody  Simpson,   Staff,  Senator  Charlie   Huggins;  Kristen                                                                   
Wright,    Finance/Licensing    Supervisor,    Division    of                                                                   
Administrative Services, Department  of Fish and Game; McHugh                                                                   
Pierre,  Liaison,   Department   of  Military  and   Veterans                                                                   
Affairs; Senator Kim Elton.                                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Bob Brean, Alaska Housing Finance  Corporation, Department of                                                                   
Revenue.                                                                                                                        
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 366    An  Act  relating  to   an  exemption  from  public                                                                   
          disclosure of certain appropriations from the                                                                         
          dividend  fund;  and  providing  for  an  effective                                                                   
          date.                                                                                                                 
                                                                                                                                
          HB  366  was  REPORTED  out of  Committee  with  no                                                                   
          recommendation  and zero fiscal note  by Department                                                                   
          of  Corrections   and  zero  fiscal   note  by  the                                                                   
          Department of Revenue.                                                                                                
                                                                                                                                
CS SB 214(FIN)                                                                                                                  
          An Act  relating to  hunting licenses and  tags for                                                                   
          nonresident members  of the military service or the                                                                   
          United  States Coast  Guard  and their  dependents;                                                                   
          and providing for an effective date.                                                                                  
                                                                                                                                
          HCS  CSSB 214(FIN)  was REPORTED  out of  Committee                                                                   
          with  a  "do  pass"  recommendation  and  with  new                                                                   
          fiscal note by Department of Fish and Game.                                                                           
                                                                                                                                
SB 255    An Act relating to refunding of certain                                                                               
          outstanding  bonds issued by the  Alaska Industrial                                                                   
          Development  and  Export Authority  concerning  the                                                                   
          Snettisham   hydroelectric   project  and   related                                                                   
          assets; and providing for an effective date.                                                                          
                                                                                                                                
          SB  255 was REPORTED  out of  Committee with  a "do                                                                   
          pass" recommendation  and with zero fiscal  note by                                                                   
          Department  of  Commerce,  Community  and  Economic                                                                   
          Development.                                                                                                          
                                                                                                                                
SB 289    An Act relating to home energy conservation and                                                                       
          weatherization for purposes  of certain programs of                                                                   
          the Alaska Housing and Finance Corporation.                                                                           
                                                                                                                                
          SB 289 was HEARD and HELD by the Committee for                                                                        
          further consideration.                                                                                                
                                                                                                                                
SB 303    An Act relating to certain grants awarded by the                                                                      
         Department of Environmental Conservation.                                                                              
                                                                                                                                
          SB 303 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 289                                                                                                           
                                                                                                                                
     An Act relating to home energy conservation and                                                                            
     weatherization for purposes of certain programs of the                                                                     
     Alaska Housing and Finance Corporation.                                                                                    
                                                                                                                                
1:54:02 PM                                                                                                                    
                                                                                                                                
Representative Kelly asked how the $300 million would be                                                                        
spent in the first years of the project.                                                                                        
                                                                                                                                
DAN FAUSKE,  CEO/EXECUTIVE DIRECTOR,  ALASKA HOUSING  FINANCE                                                                   
CORPORATION,  DEPARTMENT OF REVENUE,  thought $20-40  million                                                                   
would be  spent the first  year. He said  the goal is  to get                                                                   
people involved as soon as possible.                                                                                            
                                                                                                                                
BOB BREAN, ALASKA HOUSING FINANCE  CORPORATION, DEPARTMENT OF                                                                   
REVENUE  (testified  via  teleconference),   emphasized  that                                                                   
there  would  be a  ramping  up  period. The  Alaska  Housing                                                                   
Finance   Corporation   (AHFC)    was   looking   at   twenty                                                                   
contractors. Mr.  Fauske added that he had  spoken to vendors                                                                   
and wanted to  take into consideration the barge  schedule to                                                                   
remote areas.                                                                                                                   
                                                                                                                                
1:56:28 PM                                                                                                                    
                                                                                                                                
Representative Thomas asked if  there was a cap on the grant.                                                                   
Mr. Fauske responded  that the loan amount would  be $30,000.                                                                   
People would borrow money and  there would be a rebate at the                                                                   
$5,000  level. Representative  Thomas asked  about the  grant                                                                   
portion.                                                                                                                        
                                                                                                                                
BRYAN BUTCHER,  LEGISLATIVE LIAISON,  ALASKA HOUSING  FINANCE                                                                   
CORPORATION, said  the rebate program would be  capped at the                                                                   
number  that would  give incentives  to Alaskans  to use  the                                                                   
program.  The $5,000  amount  is flexible.  In  terms of  the                                                                   
weatherization, AHFC  is looking at an average  amount. Funds                                                                   
are limited,  so the average  would around $4,000.  With more                                                                   
funding, the program  could do more in individual  homes, but                                                                   
the average would still only be around $8,000.                                                                                  
                                                                                                                                
Representative Thomas asked if  there were restrictions since                                                                   
the  value  of the  house  would  be increased.  Mr.  Butcher                                                                   
answered that the goal of the  program is to make houses more                                                                   
energy  efficient. If  the  person sold  the  home, it  would                                                                   
still  be   more  energy  efficient.  Representative   Thomas                                                                   
reiterated  concerns about  people  taking  advantage of  the                                                                   
program to increase the re-sale  value of homes. He suggested                                                                   
a restriction  such as not  being able  to sell the  home for                                                                   
two years.                                                                                                                      
                                                                                                                                
Mr.  Brean  said  that  in the  early  days,  there  were  no                                                                   
restrictions  and  people  took  advantage  of  loopholes  to                                                                   
install solariums  and hot tubs. A lot was  learned. The uses                                                                   
of the money have been reconfigured  to focus more accurately                                                                   
on energy efficiency.  There are no restrictions  on the sale                                                                   
of the  home. The value  is the return  on investment  to the                                                                   
State. Energy efficient  homes benefit the State  as a whole.                                                                   
This could be adjusted if there were strong concerns.                                                                           
                                                                                                                                
2:00:53 PM                                                                                                                    
                                                                                                                                
Representative  Thomas wanted  the issue to  be looked  at so                                                                   
that  people could  not take  advantage of  the program.  Mr.                                                                   
Fauske  thought a  pre-payment  penalty on  a  loan could  be                                                                   
built into the regulations.                                                                                                     
                                                                                                                                
Representative  Kelly thought  that it would  help to  have a                                                                   
list  of  all  the  programs   that  provide  assistance  for                                                                   
heating,  listing  the  number  of people  impacted.  He  was                                                                   
concerned about fraud.                                                                                                          
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
SB  289 was  HEARD  and HELD  by  the Committee  for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 303                                                                                                           
                                                                                                                                
     An Act relating to certain grants awarded by the                                                                           
     Department of Environmental Conservation.                                                                                  
                                                                                                                                
2:04:48 PM                                                                                                                    
                                                                                                                                
GINGER BLAISDELL,  STAFF, SENATOR LYDA GREEN,  explained that                                                                   
the  bill changes  the  population requirements  for  certain                                                                   
match  rates from  5,000 to  10,000  for a  grant that  would                                                                   
receive 70%  state funding  with a  30% municipal match.  She                                                                   
referred to a community population  list (Copy on File), that                                                                   
shows Anchorage, Fairbanks, and  Juneau at over 30,000; eight                                                                   
communities  between  10,000  and  5,000;  the  remainder  of                                                                   
Alaskan communities  are under  five thousand. Current  match                                                                   
rates are:  communities 5,000 and  higher pay a  50/50 match;                                                                   
$1,000 to  5,000 pay  70/30; and below  1,000 pay  85/15. The                                                                   
main reason to change the population  criteria is to bring in                                                                   
the  eight communities  just above  5,000 to  give them  more                                                                   
state  participation for  water and  sewer projects.  Rapidly                                                                   
escalating  prices  in  steel and  construction  costs  means                                                                   
smaller communities cannot make the 50/50 match.                                                                                
                                                                                                                                
Representative Thomas pointed  out that Haines was not on the                                                                   
list. Ms. Blaisdell  assured him that Haines  and Skagway are                                                                   
still eligible.                                                                                                                 
                                                                                                                                
Co-Chair Meyer OPENED PUBLIC TESTIMONY.                                                                                         
                                                                                                                                
2:08:05 PM                                                                                                                    
                                                                                                                                
JOHN COMBS,  MAYOR, CITY OF PALMER,  spoke in support  of the                                                                   
legislation.  He represented  not  only  Palmer but  Wasilla,                                                                   
Kenai, Homer,  Ketchikan, Sitka, Kodiak, Bethel,  Haines, and                                                                   
Skagway. Palmer has  3200, and cannot absorb  the expenses of                                                                   
water and  sewer projects.  Local projects  are on  the shelf                                                                   
due  to an  inadequate economic  base. He  asserted that  the                                                                   
issue is public safety.                                                                                                         
                                                                                                                                
BILL ALLEN,  CITY MANAGER,  PALMER, spoke  in support  of the                                                                   
bill. He  referenced a  letter from  Alaska Municipal  League                                                                   
Executive   Director  Kathie   Wasserman   (Copy  on   File).                                                                   
Communities  that  are  growing  find  themselves  supporting                                                                   
infrastructure  and  utilities  that  supply  more  and  more                                                                   
people, yet are  eligible for less grant money.  He added the                                                                   
cities of Barrow, Unalaska and  Valdez would soon be impacted                                                                   
as well.  Palmer has  50-year-old, thin-wall  pipes that  are                                                                   
failing. Pressure  tests have revealed a 40%  leakage rate in                                                                   
the water supply. They have also  been notified that they are                                                                   
out of  compliance with  the Environmental Protection  Agency                                                                   
for water safety. The cost of  coming into compliance is over                                                                   
$1 million.  There is not a  large enough tax-paying  base to                                                                   
raise that much money.                                                                                                          
                                                                                                                                
2:15:25 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Vice-Chair Stoltze commented on  the difficulty of explaining                                                                   
why  other  parts   of  the  state  get  grants   when  large                                                                   
neighborhoods  attached to  larger cities  have many  similar                                                                   
problems. He  voiced his frustration  and listed  problems in                                                                   
the city of Anchorage.                                                                                                          
                                                                                                                                
2:18:41 PM                                                                                                                    
                                                                                                                                
Representative Thomas asked if the program was capped.                                                                          
                                                                                                                                
BILL  GRIFFITH, FACILITY  PROGRAMS  INSPECTOR, DEPARTMENT  OF                                                                   
ENVIRONMENTAL  CONSERVATION, answered  that  the program  was                                                                   
not capped but limited by the  amount of money made available                                                                   
each year for capital projects.                                                                                                 
                                                                                                                                
Representative  Thomas asserted that  water and sewer  were a                                                                   
priority  and  thought more  money  should  be put  into  the                                                                   
program.                                                                                                                        
                                                                                                                                
SB  303  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 366                                                                                                            
                                                                                                                                
     An Act relating to an exemption from public disclosure                                                                     
     of certain appropriations from the dividend fund; and                                                                      
     providing for an effective date.                                                                                           
                                                                                                                                
REPRESENTATIVE  HARRY CRAWFORD,  SPONSOR, explained  that the                                                                   
bill pertained to people without  a voice. The Permanent Fund                                                                   
Dividend  (PFD)  was  taken away  from  children  of  certain                                                                   
people in  prison who had lost  their PFD. The bill  makes it                                                                   
possible to use the PFD money  for child support. It does not                                                                   
take away the liability of the  responsible person, but would                                                                   
make sure the Dividend  would get to the young  instead of to                                                                   
the Department of Corrections.                                                                                                  
                                                                                                                                
2:24:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  asked for clarification regarding  how the                                                                   
bill   would  affect   the  parent's   child  support   debt.                                                                   
Representative  Crawford answered the  PFD money does  not go                                                                   
to the debt.                                                                                                                    
                                                                                                                                
Representative Kelly  queried as to the order  of priority of                                                                   
the distribution.  Representative Crawford responded  that in                                                                   
all  other cases,  the  Child  Support Services  Division  is                                                                   
first in line. The legislation  puts them back into the list.                                                                   
There  is a system  in place  that the  legislation does  not                                                                   
otherwise affect.                                                                                                               
                                                                                                                                
Representative  Gara asked if  the bill  was trying  to solve                                                                   
the problem of  those who owe legal child support  or for all                                                                   
parents.                                                                                                                        
                                                                                                                                
2:27:53 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  answered some  people  are hard  to                                                                   
find. They might have to apply  for the money. He thought the                                                                   
change would not capture everyone but many.                                                                                     
                                                                                                                                
Vice-Chair  Stoltze  noted  that  the  Department  of  Public                                                                   
Safety seemed unaware of the bill.                                                                                              
                                                                                                                                
Co-Chair  Chenault  expressed  questions regarding  the  zero                                                                   
fiscal note.                                                                                                                    
                                                                                                                                
JERRY   BURNETT,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                   
SERVICES, DEPARTMENT  OF REVENUE (DOR), responded  that while                                                                   
there  are  5,000  incarcerated   people  with  active  child                                                                   
support  cases,  between 2000  and  3000 children  not  under                                                                   
state foster  care or  public assistance  would benefit  from                                                                   
the legislation.  Currently when  DOR garnishes the  PFD, the                                                                   
money goes to the  State and is shared between  the state and                                                                   
the  federal government.  The  Department  does  not want  to                                                                   
displace  a shared  state/federal program  with an  all-state                                                                   
program.  He  said  a  lot  of work  needed  to  be  done  to                                                                   
calculate the  amount needed. Co-Chair Chenault  did not want                                                                   
a surprise  in the next  year. He asked  the total  number of                                                                   
children involved.                                                                                                              
                                                                                                                                
2:32:33 PM                                                                                                                    
                                                                                                                                
Mr.  Burnett clarified  that  there are  approximately  5,000                                                                   
obligore parents involved. Generally,  there are 1.6 children                                                                   
per person who is obligated to  pay. However, children can be                                                                   
up   to  40,   because  of   back  money   owed.  There   are                                                                   
approximately 2,000-3,000  children between 0 and  18 who are                                                                   
not currently receiving public benefits.                                                                                        
                                                                                                                                
Co-Chair  Chenault  asked  how Department  of  Revenue  would                                                                   
address that if  there was no General Fund  increase in their                                                                   
budget.                                                                                                                         
                                                                                                                                
DWAYNE   PEOPLES,   DEPUTY   COMMISSIONER,    DEPARTMENT   OF                                                                   
CORRECTIONS,  responded   that  the  House  version   of  the                                                                   
Operating  Budget  has all  of  the  PFD money  allocated  to                                                                   
inmate health  care. If  that component  comes up short,  the                                                                   
Legislature will have to address it.                                                                                            
                                                                                                                                
2:35:39 PM                                                                                                                    
                                                                                                                                
Representative Nelson  thought the emphasis should  be on the                                                                   
children  and not  on the  prisoners.  She did  not want  the                                                                   
children  to   go  without.  Co-Chair  Chenault   agreed  and                                                                   
clarified that  he wanted people  to see the  cost associated                                                                   
with the change.                                                                                                                
                                                                                                                                
Representative   Hawker  addressed   the  fiscal  notes.   He                                                                   
wondered if the legislation would  require the departments to                                                                   
change the  way they are  currently budgeting the  funds. Mr.                                                                   
Burnett  answered   there  is  no  requirement   besides  the                                                                   
Legislature's  intent.  Mr.  Peoples   agreed  there  was  no                                                                   
obligation on his department.                                                                                                   
                                                                                                                                
Representative Hawker asked if  the individual dividend would                                                                   
have  to show how  much it  was reduced  as a  result of  the                                                                   
budgetary change. Mr. Burnett  said that was correct. Because                                                                   
of the way  the statute is constructed, the  Department would                                                                   
be  limited  to the  amount  calculated  from the  number  of                                                                   
people times the dividend paid.                                                                                                 
                                                                                                                                
Representative  Hawker asked if  the statutory authority  was                                                                   
broad  enough.  Mr.  Burnett  thought  there  was  sufficient                                                                   
authorization to provide for the grant program.                                                                                 
                                                                                                                                
2:39:37 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked if  DOR was accustomed  to grant                                                                   
programs paying  money out. Mr.  Burnett said  the Department                                                                   
does not  have grant programs, but  they do pay the  money to                                                                   
parents  of  custodial  children.  There  is  a  disbursement                                                                   
mechanism.                                                                                                                      
                                                                                                                                
Representative Hawker  asked if DOR wanted to  create a grant                                                                   
program  with eligibility  and  compliance  responsibilities.                                                                   
Mr. Burnett stated  that he had discussed the  issue with the                                                                   
Child  Support Director  and other  staff. DOR  was able  and                                                                   
willing to do that.                                                                                                             
                                                                                                                                
2:41:14 PM                                                                                                                    
                                                                                                                                
There  was  a  discussion  about  the  requirements  for  the                                                                   
program.                                                                                                                        
                                                                                                                                
2:43:43 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
2:46:14 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to REPORT  HB 366 out  of Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note by Department of Corrections  and Department of Revenue.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 366 was  REPORTED out of Committee with  no recommendation                                                                   
and zero  fiscal note by  Department of Corrections  and zero                                                                   
fiscal note by the Department of Revenue.                                                                                       
                                                                                                                                
CS FOR SENATE BILL NO. 214(FIN)                                                                                               
                                                                                                                                
     An  Act  relating  to  hunting  licenses  and  tags  for                                                                   
     nonresident  members  of  the military  service  or  the                                                                   
     United  States Coast  Guard  and their  dependents;  and                                                                   
     providing for an effective date.                                                                                           
                                                                                                                                
Vice-Chair  Stoltze MOVED  to ADOPT  Work Draft  25-LS1261\V,                                                                   
Kane, 4/1/08. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
2:49:45 PM                                                                                                                    
                                                                                                                                
JODY SIMPSON,  STAFF, SENATOR CHARLIE HUGGINS,  explained the                                                                   
bill as providing newly stationed  military members and their                                                                   
dependents  with hunting  and  fishing privileges,  including                                                                   
big game  licenses and  tags, at  the equivalent of  resident                                                                   
rates.  She  described  the  requirements   in  other  states                                                                   
compared  to Alaska's.  The requirement  to hire  a guide  is                                                                   
retained  to hunt dangerous  game: brown  and grizzly  bears,                                                                   
sheep  and   mountain  goats.   The  bill  does   not  affect                                                                   
eligibility for  PFD or jury pools.  It also does  not affect                                                                   
personal  use  or  subsistence  requirements  for  the  usual                                                                   
twelve-month waiting  period. The  CS includes a  new section                                                                   
rolling in language  previously contained in  HB 62 providing                                                                   
for  free  hunting  and  fishing  licenses  for  active  duty                                                                   
members of the  Alaska National Guard and  Military Reserves.                                                                   
(Sponsor Statement, Copy on File).                                                                                              
                                                                                                                                
2:54:39 PM                                                                                                                    
                                                                                                                                
Representative Hawker asked if  the Sponsor was supportive of                                                                   
the changes reflected  in the CS. Ms. Simpson  confirmed that                                                                   
he was.                                                                                                                         
                                                                                                                                
Co-Chair Chenault  asked how sheep  and goats  got classified                                                                   
as dangerous animals.  Ms. Simpson replied that it  has to do                                                                   
with terrain.                                                                                                                   
                                                                                                                                
Representative  Thomas related  the history  of the  bill. He                                                                   
emphasized that  it is  not a recruitment  tool. He  shared a                                                                   
personal story.                                                                                                                 
                                                                                                                                
2:57:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  asked if the  license is different  than a                                                                   
regular license.                                                                                                                
                                                                                                                                
KRISTEN  WRIGHT, FINANCE/LICENSING  SUPERVISOR,  DIVISION  OF                                                                   
ADMINISTRATIVE  SERVICES,   DEPARTMENT  OF  FISH   AND  GAME,                                                                   
described the  difference in the licenses.  Co-Chair Chenault                                                                   
asked  if there  is an  annual requirement.  Ms. Wright  said                                                                   
there was.                                                                                                                      
                                                                                                                                
Representative  Joule inquired  how many  would be  receiving                                                                   
the  license.  Ms.  Wright  reported  that  there  are  4,800                                                                   
active-duty military  in Alaska, which relates  to the second                                                                   
part of  the bill. Regarding the  first part of the  bill, in                                                                   
2006, approximately  500 licenses  were sold.  Representative                                                                   
Joule  asked  if  that  number  would  increase.  Ms.  Wright                                                                   
replied that was hard to predict.                                                                                               
                                                                                                                                
3:00:58 PM                                                                                                                    
                                                                                                                                
MCHUGH PIERRE,  LIAISON, DEPARTMENT OF MILITARY  AND VETERANS                                                                   
AFFAIRS, described  the bill as a tribute to  active-duty and                                                                   
Coast Guard personnel. Co-Chair Chenault agreed.                                                                                
                                                                                                                                
3:03:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault drew  attention  to the  fiscal note.  Ms.                                                                   
Wright acknowledged  that a new  fiscal note would  be needed                                                                   
for the amount  of $19,500 in replacement General  Funds with                                                                   
the acceptance of the CS.                                                                                                       
                                                                                                                                
Representative Foster moved to  report HCS CSSB 214(FIN) with                                                                   
individual  recommendations   and  the  accompanying   fiscal                                                                   
notes.  There being NO OBJECTION, it was so ordered.                                                                            
                                                                                                                                
HCS CSSB  214(FIN) was REPORTED  out of Committee with  a "do                                                                   
pass" recommendation  and with new fiscal note  by Department                                                                   
of Fish and Game.                                                                                                               
                                                                                                                                
3:05:25 PM                                                                                                                    
                                                                                                                                
SENATE BILL NO. 255                                                                                                           
                                                                                                                                
     An  Act relating  to  refunding of  certain  outstanding                                                                   
     bonds issued  by the  Alaska Industrial Development  and                                                                   
     Export     Authority    concerning    the     Snettisham                                                                   
     hydroelectric project and  related assets; and providing                                                                   
     for an effective date.                                                                                                     
                                                                                                                                
SENATOR KIM  ELTON, SPONSOR, explained  that the bill  was at                                                                   
the  request  of Alaska  Industrial  Development  and  Export                                                                   
Authority,  (AIDEA), to  help out Alaska  Electric Light  and                                                                   
Power  (AEL&P).  It  is  specific   only  to  the  Snettisham                                                                   
hydroelectric  project. AEL&P  operates, maintains,  and pays                                                                   
the debt service on Snettisham,  which was transferred to the                                                                   
State  in 1988.  Legal  counsel  for AIDEA  needs  additional                                                                   
authority  in  order to  roll  costs  of  a new  issuance  in                                                                   
premiums for early  retirement of existing higher  cost bonds                                                                   
into new,  lower cost bonds. There  is no new project  in the                                                                   
bill and the  bond market must be favorable  before AIDEA and                                                                   
AEL&P move  forward. The  savings, around $400,000  annually,                                                                   
will go to the rate-payers.                                                                                                     
                                                                                                                                
3:07:51 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  asked if  DOR  is supportive  of  the                                                                   
bill. Senator Elton thought so.                                                                                                 
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Co-Chair Chenault mentioned the fiscal note.                                                                                    
                                                                                                                                
3:09:10 PM                                                                                                                    
                                                                                                                                
Representative  Foster   moved  to  report  SB   255  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SB  255  was REPORTED  out  of  Committee  with a  "do  pass"                                                                   
recommendation  and with  zero fiscal  note by Department  of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:09 PM.                                                                                           
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects