Legislature(2013 - 2014)HOUSE FINANCE 519

03/19/2013 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 19 PERM. MOT. VEH. REGISTRATION/TRAILERS TELECONFERENCED
Moved CSHB 19(TRA) Out of Committee
+ HB 153 NAMING WALTER J. HICKEL EXPRESSWAY TELECONFERENCED
Moved CSHB 153(TRA) Out of Committee
+ HB 109 NAMING MICHAEL WILEY BRIDGE TELECONFERENCED
<Bill Hearing Canceled>
+ HB 94 CON AND NELLIE MILLER BRIDGES TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 87 EXTEND SPECIAL EDUCATION SERVICE AGENCY TELECONFERENCED
Moved CSHB 87(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 19, 2013                                                                                            
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:53 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the  House Finance Committee meeting                                                                    
to order at 1:32 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative Lindsey Holmes                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative David Guttenberg                                                                                                 
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Pete   Higgins;   Marcy   Herman,   Special                                                                    
Assistant,  Department of  Education and  Early Development;                                                                    
Ms.  Elizabeth Sweeney  Nudelman, Director,  School Finances                                                                    
and   Facilities,   Department   of  Education   and   Early                                                                    
Development;  Darrell  Breese,  Staff,  Representative  Bill                                                                    
Stoltze;   Amy  Erickson,   Division   of  Motor   Vehicles,                                                                    
Department  of  Administration;   Representative  Bob  Lynn;                                                                    
Representative Doug Isaacson, Sponsor.                                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kirk  Wickersham,  Anchorage;  Scott Thomas,  Department  of                                                                    
Transportation  and Public  Facilities; Buzz  Otis, Director                                                                    
of North Pole Economic Development Corporation.                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB  19    PERM. MOT. VEH. REGISTRATION/TRAILERS                                                                                 
                                                                                                                                
          CSHB 19(TRA)  was REPORTED  out of  committee with                                                                    
          "no recommendation"  and with one new  fiscal note                                                                    
          from the Department of Administration.                                                                                
                                                                                                                                
HB  87    EXTEND SPECIAL EDUCATION SERVICE AGENCY                                                                               
                                                                                                                                
          CSHB 87(FIN) was REPORTED out  of committee with a                                                                    
          "do pass"  recommendation and with  one previously                                                                    
         published fiscal impact note: FN1 (EED).                                                                               
                                                                                                                                
HB  94    CON AND NELLIE MILLER BRIDGES                                                                                         
                                                                                                                                
          HB 94  was REPORTED  out of  committee with  a "do                                                                    
          pass"  recommendation  and   with  one  previously                                                                    
          published fiscal note: FN1 (DOT).                                                                                     
                                                                                                                                
CSHB 153 NAMING WALTER J. HICKEL EXPRESSWAY                                                                                     
                                                                                                                                
          CSHB 153(TRA)  was REPORTED out of  committee with                                                                    
          a   "do   pass"   recommendation  and   with   one                                                                    
          previously published fiscal note: FN1 (DOT).                                                                          
                                                                                                                                
1:33:06 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 87                                                                                                             
                                                                                                                                
     "An Act extending the special education service                                                                            
     agency; and providing for an effective date."                                                                              
                                                                                                                                
1:33:36 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze   stated  that  committee   concerns  were                                                                    
addressed for HB 87 regarding  the Special Education Service                                                                    
Agency (SESA).                                                                                                                  
                                                                                                                                
Representative Wilson MOVED to  ADOPT the proposed committee                                                                    
substitute  for HB  87,  Work  Draft, 28-LS0392\O,  Mischel,                                                                    
3/18/13,(FIN). Co-Chair Stoltze OBJECTED for discussion.                                                                        
                                                                                                                                
Representative  Wilson  explained  that  the  Department  of                                                                    
Education  and  Early  Development  (DEED)  would  now  have                                                                    
oversight of  SESA versus the  former Governor's  Council of                                                                    
Disabilities  and   Special  Education.  The   findings  and                                                                    
recommendations  on the  audit report  were considered  when                                                                    
making  the  decision.  She   stressed  "whereby  state  and                                                                    
federal  law it  is  the requirement  of  the Department  of                                                                    
Education  and  Early  Development  to make  sure  that  the                                                                    
correct  services  were  brought to  our  special  education                                                                    
students." She noted that a  special education director from                                                                    
the department  met with SESA  on regular intervals  and the                                                                    
change  will allow  the legislature  to  better monitor  the                                                                    
organization and its needs.                                                                                                     
                                                                                                                                
REPRESENTATIVE  PETE  HIGGINS,  spoke  about  the  bill.  He                                                                    
appreciated  the committee  tackling  the  issue of  program                                                                    
oversight.                                                                                                                      
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION..                                                                                       
                                                                                                                                
1:36:12 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki   MOVED  a   conceptual  amendment.                                                                    
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
     TO: CSHB 87 (FIN) Work Draft 28-LS0392\O                                                                                   
                                                                                                                                
     Page 1, line 11:                                                                                                           
     Delete "$15.75"                                                                                                            
     Insert "$21.50 [$15.75]"                                                                                                   
                                                                                                                                
     Page 2, following line 6:                                                                                                  
     Insert a new bill section to read:                                                                                         
                                                                                                                                
     "*Sec. 2. AS 1430.650 is amended by adding a new                                                                           
     subsection to read:                                                                                                        
                                                                                                                                
     (b)  The funding  allocated under  (a) of  this section                                                                    
     shall be  adjusted annually  by multiplying  the amount                                                                    
     allocated in  the immediately preceding fiscal  year by                                                                    
     0.5 percent."                                                                                                              
                                                                                                                                
Representative  Kawasaki explained  the amendment.  He noted                                                                    
that recent  discussions with  Legislative Budget  and Audit                                                                    
(LB&A)  and DEED  led to  information about  SESA's funding.                                                                    
The funding had  not kept up with inflation  or Base Student                                                                    
Allocation  (BSA)  increases.  He  noted that  SESA  was  an                                                                    
agency that was  flat-funded for many years  while the total                                                                    
number of program  participants increased substantially. The                                                                    
$21.50 would allow the program to keep up with inflation.                                                                       
                                                                                                                                
Representative  Wilson  responded  that  the  $15.75  was  a                                                                    
minimum   requirement.   She   noted  that   the   education                                                                    
subcommittee  did   not  discuss   the  issue   because  the                                                                    
program's  oversight was  through the  Department of  Health                                                                    
and Social Services (DHSS). The  audit stated that the "plan                                                                    
did  not have  the number  of students  and school  district                                                                    
personnel receiving  services and all funding  sources." She                                                                    
noted that the education  subcommittee would detail the fund                                                                    
sources  during the  interim with  the oversight  located in                                                                    
DEED.                                                                                                                           
                                                                                                                                
Co-Chair Stoltze spoke against  the amendment because he was                                                                    
philosophically   opposed   to  indexing   the   appropriate                                                                    
channels when working through the budget process.                                                                               
                                                                                                                                
Representative  Gara  pointed  out   the  cost  per  special                                                                    
education  student   in  Anchorage   or  Fairbanks   of  $50                                                                    
thousand. He  wondered what rural school  districts received                                                                    
to   educate   special   education  students   with   severe                                                                    
handicaps.                                                                                                                      
                                                                                                                                
1:39:03 PM                                                                                                                    
                                                                                                                                
Representative Higgins replied that  the current funding was                                                                    
adequate, but the  organization would prefer not  to be flat                                                                    
funded.  The  SESA  board  understood  that  the  state  was                                                                    
operating  under   budget  constraints.  The  goal   of  the                                                                    
legislation   was  to   extend   the   sunset  utilizing   a                                                                    
subcommittee process to address the funding issue.                                                                              
                                                                                                                                
Representative Gara  clarified his question. He  wondered if                                                                    
rural areas received funding  for special education services                                                                    
in addition to SESA.                                                                                                            
                                                                                                                                
Representative  Higgins  did  not  know the  answer  to  the                                                                    
question.                                                                                                                       
                                                                                                                                
1:40:42 PM                                                                                                                    
                                                                                                                                
Representative Wilson  responded that  the $15 was  based on                                                                    
the average daily attendance and  the numbers of students in                                                                    
the state.                                                                                                                      
                                                                                                                                
Representative  Kawasaki reiterated  that the  SESA baseline                                                                    
budget  was   established  15  years  ago.   He  noted  that                                                                    
inflation alone decreased the value  by over 36 percent. The                                                                    
sum was  small and  affected the  most vulnerable  people in                                                                    
rural Alaska who might not  have the assets available within                                                                    
their own  school districts. He  pointed out that  the joint                                                                    
legislative education  task force  recommendations advocated                                                                    
for  an  increase  for  the  intensive  needs  resources  to                                                                    
schools.  He noted  that not  every intensive-needs  student                                                                    
qualified  for SESA,  but  he believed  that  the money  was                                                                    
wisely spent  and impacted  those kids  who needed  the most                                                                    
help.                                                                                                                           
                                                                                                                                
Representative Wilson maintained her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Kawasaki                                                                                                        
OPPOSED:  Thompson, Costello, Edgmon, Neuman, Wilson,                                                                           
          Holmes, Munoz, Stoltze and Austerman                                                                                  
                                                                                                                                
The conceptual amendment failed (2/9).                                                                                          
                                                                                                                                
1:43:39 PM                                                                                                                    
                                                                                                                                
Representative Costello  detailed one  fiscal note  for CSHB                                                                    
87 showing an impact of  $2,035,500 for fiscal year 2014 for                                                                    
every fiscal year following.                                                                                                    
                                                                                                                                
Co-Chair Stoltze  asked a department  member if  fiscal note                                                                    
was correct.                                                                                                                    
                                                                                                                                
MARCY  HERMAN, SPECIAL  ASSISTANT,  DEPARTMENT OF  EDUCATION                                                                    
AND EARLY DEVELOPMENT, responded yes.                                                                                           
                                                                                                                                
Representative Wilson MOVED  to REPORT CSHB 87  (FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Kawasaki  OBJECTED in  favor of  hearing from                                                                    
DEED  about  the  implication of  the  legislation  and  the                                                                    
change in oversight from the council to the department.                                                                         
                                                                                                                                
MS.  ELIZABETH SWEENEY  NUDELMAN, DIRECTOR,  SCHOOL FINANCES                                                                    
AND   FACILITIES,   DEPARTMENT   OF  EDUCATION   AND   EARLY                                                                    
DEVELOPMENT, stated that the costs  shown in the fiscal note                                                                    
would remain accurate if SESA continued to operate.                                                                             
                                                                                                                                
Representative Kawasaki wondered  how the substantive change                                                                    
in  oversight would  affect the  program because  DEED would                                                                    
take over administration and governance of the program.                                                                         
                                                                                                                                
Ms. Nudleman replied  that the SESA organization  was run by                                                                    
a  board of  directors  and the  board,  with the  executive                                                                    
director  would continue  to operate  the organization.  She                                                                    
stated that  the fiscal note  would carry the same  costs it                                                                    
had  in  prior  years.  She  referred  to  the  sponsor  for                                                                    
questions regarding the CS.                                                                                                     
                                                                                                                                
Co-Chair  Stoltze wished  that  Representative Kawasaki  had                                                                    
followed  protocol by  raising  the point  when  the CS  was                                                                    
discussed.                                                                                                                      
                                                                                                                                
Representative  Kawasaki asked  if  SESA's nonprofit  status                                                                    
impacted   the   department's   ability  to   regulate   the                                                                    
organization.                                                                                                                   
                                                                                                                                
Ms. Nudelman responded that  the legislation consolidated by                                                                    
eliminating  oversight   from  the  Governor's   Council  on                                                                    
Disabilities  and  Special  Education. She  was  unaware  of                                                                    
further changes. The nonprofit was administered by a board.                                                                     
                                                                                                                                
1:50:27 PM                                                                                                                    
                                                                                                                                
Representative Gara  stated that  he did not  understand the                                                                    
decision to consolidate the agencies governing SESA.                                                                            
                                                                                                                                
Co-Chair   Stoltze   explained   that   the   audit   report                                                                    
recommendations were considered when making the decision.                                                                       
                                                                                                                                
Representative   Wilson   clarified   that   the   education                                                                    
subcommittee  discussed  the  matter at  great  length.  The                                                                    
council did  not have  the authority, if  the money  was not                                                                    
spent  correctly, to  do  anything about  it.  With new  and                                                                    
specific laws regulating special  education, the decision to                                                                    
give DEED  full oversight was  prudent. She stated  that the                                                                    
council would  continue to review programs.  The only change                                                                    
was  providing authority  to the  department to  ensure that                                                                    
the  students got  the help  they need  and money  was spent                                                                    
correctly. The authority was also  provided to DEED to bring                                                                    
the item forth in their budget for future program needs.                                                                        
                                                                                                                                
Representative Gara appreciated the explanation.                                                                                
                                                                                                                                
Representative Kawasaki WITHDREW his OBJECTION                                                                                  
                                                                                                                                
CSHB 87(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN1 (EED).                                                                                                         
                                                                                                                                
1:54:59 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:55:21 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 19                                                                                                             
                                                                                                                                
     "An   Act   relating   to   permanent   motor   vehicle                                                                    
     registration;  relating  to  the registration  fee  for                                                                    
     noncommercial  trailers and  to the  motor vehicle  tax                                                                    
    for trailers; and providing for an effective date."                                                                         
                                                                                                                                
1:55:36 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  noted  that  he  had  the  Department  of                                                                    
Administration  (DOA)   online.  He  reminded   that  public                                                                    
testimony  had been  taken on  the bill  in a  prior finance                                                                    
meeting.  He  imagined  that  most  people  appreciated  the                                                                    
notion of  permanent registration. He  anticipated questions                                                                    
about the  fiscal note.  He asked staff  to provide  a brief                                                                    
overview of the legislation.                                                                                                    
                                                                                                                                
DARRELL   BREESE,   STAFF,  REPRESENTATIVE   BILL   STOLTZE,                                                                    
explained  that HB  19 allowed  for permanent  registration,                                                                    
offered  through the  Division of  Motor Vehicles  (DMV) for                                                                    
non-commercial  motor vehicles  older than  eight years  and                                                                    
non-commercial   trailers  older   than  eight   years.  The                                                                    
permanent  registration would  cost $25  in addition  to the                                                                    
regular biannual  registration. The owner of  the vehicle or                                                                    
trailer had  a choice to  pay biannual registration  fees as                                                                    
established in  statute or to  select the  permanent vehicle                                                                    
or trailer  registration. He pointed out  that the permanent                                                                    
registration for  vehicles or trailers  was nontransferable.                                                                    
If  a  vehicle or  trailer  was  sold,  the new  owner  must                                                                    
register with DMV.                                                                                                              
                                                                                                                                
Co-Chair  Stoltze pointed  out the  "opt-out" provision  for                                                                    
the municipalities.                                                                                                             
                                                                                                                                
Mr.  Breeze added  that the  bill  offered municipalities  a                                                                    
provision to establish their  own motor vehicle registration                                                                    
tax  rate for  vehicles  that  were permanently  registered.                                                                    
Currently municipalities had the option  based on the age of                                                                    
the vehicles, but HB 19  allowed municipalities to adopt, by                                                                    
ordinance passed by city council or a local assembly.                                                                           
                                                                                                                                
Co-Chair  Stoltze   added  that  the   municipalities  could                                                                    
collect the portion  of the registration fee  that the state                                                                    
provided  to  local governments.  He  wished  to provide  an                                                                    
option for  the public to  avoid government fees.  He stated                                                                    
that he himself  had an older boat trailer  and pickup truck                                                                    
and was  impacted by  the legislation.  He wished  to detail                                                                    
the fiscal note.                                                                                                                
                                                                                                                                
AMY  ERICKSON, DIVISION  OF  MOTOR  VEHICLES, DEPARTMENT  OF                                                                    
ADMINISTRATION, was available to answer questions.                                                                              
                                                                                                                                
2:00:20 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki  asked why the DMV  collected on the                                                                    
behalf  of some  municipalities. Ms.  Erickson did  not have                                                                    
the history.                                                                                                                    
                                                                                                                                
Co-Chair Stoltze commented on  the assumptions stated on the                                                                    
fiscal  note. He  noted that  the  department projected  the                                                                    
fiscal  impact   or  revenue   loss  based   on  predictions                                                                    
regarding choice  of permanent  registration. He  added that                                                                    
the permanent  registration might  not benefit  those people                                                                    
who chose  to leave Alaska  to relocate to another  state or                                                                    
country.                                                                                                                        
                                                                                                                                
2:02:40 PM                                                                                                                    
                                                                                                                                
Representative  Gara   asked  to  combine   his  legislation                                                                    
related  to permanent  licensing registration   for  hunting                                                                    
and fishing.                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze answered  that he  had concerns  about the                                                                    
fish and  game fund and  the effect  that a combined  act of                                                                    
legislation  would have,  although  he was  amenable to  the                                                                    
concept.                                                                                                                        
                                                                                                                                
Representative  Gara  stated  that  his bill,  HB  157,  was                                                                    
written to avoid any impact on the fish and game fund.                                                                          
                                                                                                                                
2:03:48 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Neuman   expressed   concern   about   two-year                                                                    
registration for  DMV, which was implemented  to help reduce                                                                    
division costs.  Since DMV brought  in more money  than they                                                                    
needed, he suggested  legislation to reintroduce single-year                                                                    
registration.                                                                                                                   
                                                                                                                                
Co-Chair Stoltze  stated that  the department  was unwilling                                                                    
to  provide information  regarding  the fiscal  impact of  a                                                                    
return to a single-year registration.                                                                                           
                                                                                                                                
Representative Wilson asked about  the loss of revenue shown                                                                    
in  the  fiscal  note.  She  asked  if  the  division  would                                                                    
continue to  operate with a  surplus if HB 19  were enacted.                                                                    
Ms. Erickson replied yes.                                                                                                       
                                                                                                                                
Co-Chair  Stoltze   pointed  out  the   short-term  positive                                                                    
earnings  in the  division's near  future, as  documented in                                                                    
the  fiscal note.  He  asked to  know  the exact  short-term                                                                    
impact on the department.                                                                                                       
                                                                                                                                
Ms.  Erickson  replied  that the  department  anticipated  a                                                                    
surplus greater  than $6,000,000  in 2014  and approximately                                                                    
$7,000,500  in  2015. The  calculations  were  based on  the                                                                    
number of  vehicles. The  department estimated  that 478,000                                                                    
motor  vehicles  and  115,000  trailers  were  eligible  for                                                                    
permanent registration.                                                                                                         
                                                                                                                                
2:06:05 PM                                                                                                                    
                                                                                                                                
Representative Gara asked if  the projection became negative                                                                    
over time.                                                                                                                      
                                                                                                                                
Ms.  Erickson   responded  that  most   vehicles  registered                                                                    
biannually would  no longer bring  revenue. The  increase of                                                                    
$25  for the  permanent  registration led  to the  projected                                                                    
surplus,  but  after  2015  the   revenues  were  no  longer                                                                    
available to the division.                                                                                                      
                                                                                                                                
2:06:50 PM                                                                                                                    
                                                                                                                                
Representative Gara asked for an  estimate of annual loss to                                                                    
the division or communities.                                                                                                    
                                                                                                                                
Ms.  Erickson  stated that  the  revenue  loss impacted  the                                                                    
state  rather than  DMV. She  clarified  that once  vehicles                                                                    
were   permanently  registered,   the  revenue   loss  would                                                                    
compound.                                                                                                                       
                                                                                                                                
Co-Chair Stoltze clarified that  the projections were merely                                                                    
speculations.                                                                                                                   
                                                                                                                                
2:07:34 PM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  questioned the  assumption of  the fiscal                                                                    
note. He  supposed that  some people  might learn  about the                                                                    
option and choose  to register a vehicle  that was otherwise                                                                    
ignored, leading to further revenue for the state.                                                                              
                                                                                                                                
Co-Chair Stoltze agreed that speculations were merely that.                                                                     
                                                                                                                                
Representative  Munoz  asked  about the  percentage  of  the                                                                    
permanent fee  that was to  be shared with  communities. She                                                                    
asked if the formula would remain consistent.                                                                                   
                                                                                                                                
Mr.  Breese responded  that the  permanent registration  fee                                                                    
went  directly to  DMV and  thus the  state. The  cities and                                                                    
municipalities that had motor  vehicle registration tax were                                                                    
those  that  were  passed  and  approved  by  each  separate                                                                    
community.   The  permanent   registration   fee  would   be                                                                    
appropriated as the legislature chose.                                                                                          
                                                                                                                                
Co-Chair Stolze  agreed and  clarified that  the legislature                                                                    
appropriated funds through  the constitutional appropriation                                                                    
process.                                                                                                                        
                                                                                                                                
Representative  Munoz asked  the  estimated  savings to  the                                                                    
individual for the average life of a car.                                                                                       
                                                                                                                                
Mr.  Breese  stated  that  the   savings  was  difficult  to                                                                    
estimate. He noted  that the average age of  vehicles in the                                                                    
state   was  13   years  old.   Five   years  of   permanent                                                                    
registration  was  calculated  in  an  estimate  making  the                                                                    
savings difficult to discern.                                                                                                   
                                                                                                                                
Co-Chair Stoltze opined that government  gets its tax out of                                                                    
the vehicle at some point.                                                                                                      
                                                                                                                                
2:11:06 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:13:22 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Kawasaki MOVED  Amendment  1  to be  written                                                                    
properly for the floor.                                                                                                         
                                                                                                                                
     Page 1, line 2, following "trailers;":                                                                                     
     Insert   "providing   that  permanent   motor   vehicle                                                                    
     registration  may not  be  considered when  determining                                                                    
     the eligibility  of an individual for  a permanent fund                                                                    
     dividend;"                                                                                                                 
                                                                                                                                
     Page 5, following line 2:                                                                                                  
     Insert a new bill section to read:                                                                                         
      "* Sec. 8. AS 43.23.015(a) is amended to read:                                                                            
     (a)   The  commissioner shall  adopt regulations  under                                                                    
     AS 44.62    (Administrative   Procedures    Act)   [THE                                                                  
     ADMINISTRATIVE    PROCEDURE    ACT   (AS 44.62)]    for                                                                    
     determining   the   eligibility  of   individuals   for                                                                    
     permanent fund dividends.  The commissioner may require                                                                    
     an individual to provide proof  of eligibility, and the                                                                    
     commissioner may  use other information  available from                                                                    
     other state  departments or  agencies to  determine the                                                                    
     eligibility  of an  individual. The  commissioner shall                                                                    
     consider all relevant  circumstances in determining the                                                                    
     eligibility    of   an    individual.   However,    the                                                                  
     commissioner  may  not  consider   the  issuance  of  a                                                                  
     permanent    motor     vehicle    registration    under                                                                  
     AS 28.10.155   as   a   factor   in   determining   the                                                                  
     eligibility of  an individual, and the  residency of an                                                                  
     individual's  spouse may  not be  the principal  factor                                                                    
     relied  on [UPON]  by the  commissioner in  determining                                                                  
     the residency of the individual."                                                                                          
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative    Kawasaki   discussed    policy   regarding                                                                    
qualification  for the  Permanent  Fund  Dividend (PFD).  He                                                                    
stated that  establishing residency  for the PFD  used proof                                                                    
of  home  ownership,  employment  records,  school  records,                                                                    
voter registration,  motor vehicle registration  records and                                                                    
licenses  for  items  or  activities  such  as  hunting  and                                                                    
fishing.  He wanted  to ensure  that the  bill was  not used                                                                    
exclusively to  determine or establish residency.  He wanted                                                                    
to  ensure that  the  person did  have  a permanent  vehicle                                                                    
registration. He planned to amend  his amendment in the near                                                                    
future to allow the registration  to be used for eligibility                                                                    
for the PFD.                                                                                                                    
                                                                                                                                
2:14:46 PM                                                                                                                    
                                                                                                                                
Representative   Wilson   pointed   out   that   a   vehicle                                                                    
registration was  considered proof  of Alaskan  residence in                                                                    
the PFD application process.                                                                                                    
                                                                                                                                
Representative  Gara  explained  that  some  people  applied                                                                    
dishonestly  for  the  PFD.   The  commissioner  utilized  a                                                                    
vehicle  registration when  determining residency,  but with                                                                    
HB 19, a  person might pay $25 one time  and continue to use                                                                    
the documentation  to prove  that they  were eligible  for a                                                                    
PFD.                                                                                                                            
                                                                                                                                
Co-Chair  Stoltze countered  that a  negative trigger  often                                                                    
provided a red flag.                                                                                                            
                                                                                                                                
Representative Kawasaki WITHDREW his amendment.                                                                                 
                                                                                                                                
Representative Costello detailed the  fiscal note. She noted                                                                    
the change in revenues for FY  14 - FY 19, which illustrated                                                                    
a  fiscal  impact  of  $100,100   for  FY  14  for  database                                                                    
upgrades. The fiscal note also  illustrated changes in state                                                                    
revenues for  FY 14 as an  increase of $5,346,000, in  FY 15                                                                    
an increase of $5,982,000, FY  16 a decrease of $17,836,000,                                                                    
FY  17  a decrease  of  $20,128,000,  FY  18 a  decrease  of                                                                    
$20,128,000 and FY 19 projected a decrease of $22,420,000.                                                                      
                                                                                                                                
Co-Chair Stoltze clarified that  the fiscal note projections                                                                    
were purely speculative.                                                                                                        
                                                                                                                                
2:19:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman  MOVED  to REPORT  CSHB  19(TRA)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Kawasaki OBJECTED                                                                                                
                                                                                                                                
Representative   Kawasaki  noted   that   the  bill   packet                                                                    
contained collections  for communities with a  motor vehicle                                                                    
registration  tax.  He  pointed out  that  some  communities                                                                    
would feel a significant impact  from the revenue losses. He                                                                    
WITHDREW his OBJECTION.                                                                                                         
                                                                                                                                
CSHB  19  (TRA)  was  REPORTED out  of  committee  with  "no                                                                    
recommendation"  and  with  one  new fiscal  note  from  the                                                                    
Department of Administration.                                                                                                   
                                                                                                                                
2:20:35 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:23:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 153                                                                                                            
                                                                                                                                
     "An Act designating Minnesota Drive and a portion of                                                                       
     O'Malley Road in Anchorage the Walter J. Hickel                                                                            
     Expressway."                                                                                                               
                                                                                                                                
2:23:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BOB LYNN, explained  that HB 153 would rename                                                                    
a portion of  Minnesota Drive in Anchorage as  the Walter J.                                                                    
Hickel Parkway.  He provided a brief  history about Alaska's                                                                    
first governor.  He stated that Governor  Hickel pushed hard                                                                    
to  open Prudhoe  Bay for  oil development  and oversaw  the                                                                    
permitting process for the Trans-Alaskan pipeline.                                                                              
                                                                                                                                
2:24:42 PM                                                                                                                    
                                                                                                                                
Representative Gara stated that  he would like to co-sponsor                                                                    
the  bill. Representative  Lynn  stated that  Representative                                                                    
Gara was welcome to co-sponsor the bill.                                                                                        
                                                                                                                                
Representative  Kawasaki  asked   why  the  Minnesota  Drive                                                                    
portion of the highway was selected.                                                                                            
                                                                                                                                
Representative Lynn responded that  the portion of Minnesota                                                                    
Drive  was well-traveled  thoroughfare in  Anchorage deeming                                                                    
it the most appropriate highway for the name.                                                                                   
                                                                                                                                
Representative Holmes pointed out  that the proposed highway                                                                    
ran close to Governor Hickel's house and hotel.                                                                                 
                                                                                                                                
Representative  Kawasaki  asked  about the  Hickel  family's                                                                    
opinion  about   the  proposed  plan.   Representative  Lynn                                                                    
replied that Ermalee Hickel approved of the idea.                                                                               
                                                                                                                                
Representative  Kawasaki   asked  if  the   designation  was                                                                    
honorary or if postal services be affected.                                                                                     
                                                                                                                                
Representative  Lynn  replied  that the  plan  included  two                                                                    
large signs. The  street addresses would remain  the same to                                                                    
lessen the inconvenience.                                                                                                       
                                                                                                                                
2:27:49 PM                                                                                                                    
                                                                                                                                
KIRK  WICKERSHAM,  SELF,   ANCHORAGE  (via  teleconference),                                                                    
testified in  support of the  legislation. He  suggested the                                                                    
idea  of renaming  the  Minnesota  bypass to  Representative                                                                    
Lynn. He  pointed out  that the  Minnesota bypass  was named                                                                    
because the  street was  widened and  extended, which  was a                                                                    
random   decision  in   his  opinion.   He  encouraged   the                                                                    
elimination  of the  word  Minnesota from  the  name of  the                                                                    
expressway. A  combination of Minnesota and  Governor Hickel                                                                    
was proposed in a previous bill.                                                                                                
                                                                                                                                
2:30:46 PM                                                                                                                    
                                                                                                                                
SCOTT  THOMAS, CENTRAL  REGION TRAFFIC  ENGINEER, DEPARTMENT                                                                    
OF    TRANSPORTATION    AND     PUBLIC    FACILITIES    (via                                                                    
teleconference), was available for questions.                                                                                   
                                                                                                                                
Vice-Chair Neuman CLOSED public testimony.                                                                                      
                                                                                                                                
Representative Costello discussed the  two fiscal notes. The                                                                    
first  fiscal  note  was  a zero  note  from  Department  of                                                                    
Transportation and Public Facilities.  The second note had a                                                                    
fiscal   impact  of   $15   thousand   from  Department   of                                                                    
Transportation and  Public Facilities,  which would  pay for                                                                    
the cost of two signs.                                                                                                          
                                                                                                                                
Vice-Chair  Neuman noted  that  the second  fiscal note  was                                                                    
forthcoming.                                                                                                                    
                                                                                                                                
Representative Kawasaki  remarked that  he lived  on Glacier                                                                    
Avenue while in Juneau.  Apparently Glacier Avenue was known                                                                    
previously as Glacier Highway and  Google maps included both                                                                    
names when searched.                                                                                                            
                                                                                                                                
Representative Thompson  MOVED to  REPORT CSHB  153(TRA) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  153(TRA) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation  and  with  one  previously  published                                                                    
fiscal note: FN1 (DOT).                                                                                                         
                                                                                                                                
2:33:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:34:25 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 94                                                                                                             
                                                                                                                                
     "An  Act  naming  the northbound  Chena  Flood  Channel                                                                    
     Crossing  Bridge the  Nellie Miller  Bridge and  naming                                                                    
     the southbound Chena Flood  Channel Crossing Bridge the                                                                    
     Con Miller Bridge."                                                                                                        
                                                                                                                                
2:34:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOUG   ISAACSON,  SPONSOR,   introduced  the                                                                    
legislation  affecting two  bridges that  spanned the  Chena                                                                    
flood control  channel. The  proposed plan  was to  name the                                                                    
bridge for  two remarkable Alaskans, Con  and Nellie Miller.                                                                    
He stated that Con and  Nellie Miller were early settlers in                                                                    
the city  of North Pole  who founded the business  the Santa                                                                    
Claus  House  and  demonstrated  public  service  throughout                                                                    
their lives.  Con Miller  was the  longest serving  mayor of                                                                    
North Pole  dedicating 19 years of  leadership. He mentioned                                                                    
their son  Terry Miller  who served  as a  former Lieutenant                                                                    
Governor,   a  North   Pole  city   councilman,  a   borough                                                                    
assemblyman and as  an Alaskan legislator in  both the House                                                                    
and  the Senate.  Mike  Miller,  the other  son  of Con  and                                                                    
Nellie  also served  in  the  house and  the  senate for  18                                                                    
years.                                                                                                                          
                                                                                                                                
Representative  Gara  wondered   if  the  legislature  might                                                                    
choose an esteemed democrat for such honors.                                                                                    
                                                                                                                                
BUZZ  OTIS,  DIRECTOR  OF NORTH  POLE  ECONOMIC  DEVELOPMENT                                                                    
CORPORATION  (via teleconference),  testified in  support of                                                                    
the Millers and thought that the tribute was notable.                                                                           
                                                                                                                                
2:39:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze CLOSED PUBLIC TESTIMONY.                                                                                       
                                                                                                                                
Representative  Costello  addressed  the  fiscal  note  from                                                                    
Department  of  Transportation  and  Public  Facilities  for                                                                    
$6,900 for the creation of two signs.                                                                                           
                                                                                                                                
Representative  Wilson   MOVED  to  REPORT  HB   94  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HB 94 was REPORTED out of committee with a "do pass"                                                                            
recommendation and with one previously published fiscal                                                                         
note: FN1 (DOT).                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:43:00 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:43 p.m.                                                                                          

Document Name Date/Time Subjects
HB153 Support Documents - Wickersham Letter.PDF HFIN 3/19/2013 1:30:00 PM
HB 153
HB153 Sponsor Statement.pdf HFIN 3/19/2013 1:30:00 PM
HB 153
HB153 Hickel Citation.pdf HFIN 3/19/2013 1:30:00 PM
HB 153
HB153 Google Map.pdf HFIN 3/19/2013 1:30:00 PM
STRA 4/2/2013 1:30:00 PM
HB 153
HB153 Ak Republican Party Resolution.pdf HFIN 3/19/2013 1:30:00 PM
HB 153
Marshall letter of support.pdf HFIN 3/19/2013 1:30:00 PM
HB 94
Con and Nellie Miller Bridge Sponsor Statement.pdf HFIN 3/19/2013 1:30:00 PM
HB 94
HB 87 CS FIN WORKDRAFT O Version.pdf HFIN 3/19/2013 1:30:00 PM
HB 87
HB 87 SESA statute language opinion LAW DEED.pdf HFIN 3/19/2013 1:30:00 PM
HB 87
HB 87 Kawasaki Amendment to CS-O version.pdf HFIN 3/19/2013 1:30:00 PM
HB 87
HB 19 Amendment Kawasaki.pdf HFIN 3/19/2013 1:30:00 PM
HB 19