Legislature(1993 - 1994)
04/21/1994 01:35 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 21, 1994
1:35 P.M.
TAPE HFC 94 - 138, Side 2, #000 - end.
TAPE HFC 94 - 139, Side 1, #000 - #411.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:35 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Keith Kelton, Director, Division of Facility Construction &
Operation, Department of Environmental Conservation; Clyde
Stoltzfus, Special Assistant, Commissioner's Office,
Department of Transportation and Public Facilities; Jack
Chenoweth, Attorney, Legislative Legal Counsel, Legislative
Affairs Agency; Jay Hogan, Staff, Representative Ron Larson.
SUMMARY
SB 210 An Act relating to disposal of state land within
five miles of the right-of-way of the Dalton
Highway to a licensed public utility or a licensed
common carrier.
HCS CS SB 210 (FIN) was reported out of Committee
with a "do pass" recommendation with fiscal notes
by the Department of Natural Resources, 2/15/94
and the Department of Transportation and Public
Facilities dated 2/07/94.
SB 330 An Act relating to water quality enhancement,
water supply, waste water, and solid waste grants;
the Alaska clean water fund; the establishment of
the Alaska clean water account, the Alaska
drinking water fund, and the Alaska drinking water
account; and providing for an effective date.
CS SB 330 (RLS) was reported out of Committee with
"no recommendations" and with a zero fiscal note
1
by the Department of Environmental Conservation
dated 2/24/94.
SB 247 An Act relating to state leases and to state
lease-purchase and lease-financing agreements, and
repealing a legislative authorization previously
given for acquisition of a facility through a
lease-purchase agreement; and providing for an
effective date.
HCS CS SB 247 (FIN) was reported out of Committee
with a "do pass" recommendation and with two zero
fiscal notes by the Department of Administration
dated 1/24/94 and Legislative Affairs Agency dated
1/21/94.
HB 541 An Act providing for an advisory vote of the
people concerning a preferred alternative for
increasing revenue available to support state
government; and providing for an effective date.
HB 541 was HELD in Committee for further
discussion.
SENATE BILL 330
"An Act relating to water quality enhancement, water
supply, waste water, and solid waste grants; the Alaska
clean water fund; the establishment of the Alaska clean
water account, the Alaska drinking water fund, and the
Alaska drinking water account; and providing for an
effective date."
KEITH KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION &
OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, noted
that SB 330 proposed modifications to two statutes
administered by the Division of Facility Construction &
Operation within the Department, AS 46.03.030 (Municipal
Matching Grants) and AS 46.03.032 (Alaska Clean Water Fund).
Mr. Kelton provided background history of the bill which
would create the Alaska Clean Water Fund in order to provide
low interest loans for the construction of municipal waste
water projects. The program, capitalized 83% by the federal
government, was designed to replace EPA construction grant
programs. He continued that since only the waste water
projects could be financed, the Legislature then created a
separate account for excess State appropriations to provide
loans for water supply and solid waste projects. Mr. Kelton
noted the account has not yet been capitalized and that the
only capitalized loans are for waste water projects.
2
Mr. Kelton added, SB 330 would provide funding assistance
through grants and loans to Alaska's incorporated
municipalities for the construction of water, waste water
and solid waste improvements.
Co-Chair MacLean questioned the legislative impact to the
VSW program and the matching grants for water and sewer
projects. Mr. Kelton responded that there would be a small
fiscal impact to the other grants at a higher percentage
than is currently available. He added that the impact would
be controlled by the appropriation process and the priority
list would be assembled by the Department.
Co-Chair MacLean reiterated that this legislation would be
impacting the municipal matching grants list. Only two
projects were funded this year through the municipal
matching grants for water and sewer and with the proposed
legislation, the local communities would be more seriously
competing for that money.
Representative Brown MOVED to report CS SB 330 (RLS) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
CS SB 330 (RLS) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the
Department of Environmental Conservation dated 2/24/94.
SENATE BILL 210
"An Act relating to disposal of state land within five
miles of the right-of-way of the Dalton Highway to a
licensed public utility or a licensed common carrier."
Representative Therriault explained SB 210 as proposed by
Senator Bert Sharp. He commented that under current
statute, the State is prohibited from disposing of or
leasing State land within five miles of the right-of-way of
the Dalton Highway. The State recently acquired several
parcels of land in the area, under the land selection
allocation, yet they could not be leased or purchased.
Representative Therriault explained the Subcommittee changes
made to the work draft resulting from concerns in the
Committee.
Co-Chair MacLean MOVED to adopt work draft 8-LS1110\O,
Luckhaupt, 4/18/94, as the version before the Committee.
There being NO OBJECTION, it was so ordered.
3
CLYDE STOLTZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, noted
the Department's support of the legislation and offered to
answer question's of the Committee.
Representative Therriault MOVED to report HCS CS SB 210
(FIN) out of Committee with individual recommendations and
with the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
HCS CS SB 210 (FIN) was reported out of Committee with a "do
pass" recommendation and with zero fiscal notes by the
Department of Natural Resources dated 2/15/94 and the
Department of Transportation and Public Facilities dated
2/07/94.
SENATE BILL 247
"An Act relating to state leases and to state
lease-purchase and lease-financing agreements, and
repealing a legislative authorization previously given
for acquisition of a facility through a lease-purchase
agreement; and providing for an effective date."
JACK CHENOWETH, ATTORNEY, LEGISLATIVE LEGAL COUNSEL,
LEGISLATIVE AFFAIRS AGENCY, clarified past action taken by
the Committee in regards to SB 247. When the bill came to
him, he was asked to incorporate two amendments. One of the
amendments was an exception for the University Board of
Regents addressing the necessity to rent or lease space
based upon federal or university receipts. He concluded
that addition would warrant a title change. The title is
tightly drawn and would not admit to any exceptions beyond
the ones listed and in the body of the bill.
Mr. Chenoweth continued that the second amendment would
require a deletion of an approval to construct a court
building in Fairbanks. That insertion would also require a
title change.
Representative Therriault provided the Committee with a work
draft of a house concurrent resolution #8-LS1905\A,
Chenoweth, 4/21/94, which would open up the title to
accommodate Amendment #2 but would not include language to
accommodate Amendment #1.
Representative Hanley elaborated that the bill had moved
from Committee and that Representative Therriault had moved
to divide the question in order to address a title change.
He added that Co-Chair MacLean objected to that motion.
Mr. Chenoweth pointed out that when the legislation was
4
initially drafted the title was broad, and then because of a
provision inserted in the original bill, language was added
to read "and repealing the legislative authorization
previously given for acquisition of a facility given a
lease-purchase agreement". The language clarified that
nothing would be "slipped" through the legislation. The
Senate proceeded to tighten the title which removed that
provision.
Representative Therriault MOVED to adopt the language of the
proposed house concurrent resolution which would broaden the
title to include necessary changes in order to accommodate
Amendment #2. Co-Chair MacLean WITHDREW her OBJECTION to
the motion. There being NO OBJECTIONS, the motion was
adopted.
Representative Therriault MOVED TO RESCIND previous action
taken in passing HCS CS SB 247 (FIN) out of Committee. Co-
Chair MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Navarre, Parnell, Therriault,
Foster, Grussendorf.
OPPOSED: Martin, Brown, MacLean, Larson.
Representative Hoffman was not present for the vote.
The MOTION PASSED (6-4).
Representative Therriault MOVED TO RESCIND previous action
taken in adopting Amendment #1. Co-Chair MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Parnell, Therriault, Foster,
Grussendorf.
OPPOSED: Martin, Brown, Hanley, Larson, MacLean.
Representative Hoffman was not present for the vote.
The MOTION FAILED (5-5).
(Tape Change, HFC 94-139, Side 1).
Representative Martin MOVED to report HCS CS SB 247 (FIN)
out of Committee with the accompanying fiscal notes.
Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Navarre, Parnell, Brown,
5
Grussendorf, Hanley, MacLean, Larson.
OPPOSED: Therriault, Foster.
Representative Hoffman was not present for the vote.
The MOTION PASSED (8-2).
Co-Chair MacLean MOVED to adopt the House Concurrent
Resolution work draft 8-LS1905\A, Chenoweth, 4/21/94. Co-
Chair MacLean MOVED to amend the resolution to Page 2, Line
6, adding the language "and repealing a legislative
authorization previously given for acquisition of a facility
through a lease-purchase agreement". Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Brown, Hanley, Martin, Larson,
MacLean.
OPPOSED: Therriault, Grussendorf.
Representative Hoffman was not present for the vote.
The MOTION PASSED (6-2).
Co-Chair MacLean MOVED to adopt the amended House Concurrent
Resolution. Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Brown, Grussendorf, Hanley,
Martin, MacLean, Larson.
OPPOSED: Therriault, Foster.
Representatives Hoffman and Navarre were not present for the
vote.
The MOTION PASSED (7-2).
HCS CS SB 247 (FIN) was reported out of Committee with a "do
pass" recommendation and with a title change through a House
Concurrent Resolution and with zero fiscal notes by the
Department of Administration dated 1/24/94 and the
Legislative Affairs Agency dated 1/21/94.
HOUSE BILL 541
"An Act providing for an advisory vote of the people
concerning a preferred alternative for increasing
revenue available to support state government; and
providing for an effective date."
6
Co-Chair Larson provided the Committee members with a
handout "Selected NFIB/Alaska Ballot Results-1993". [Copy
on file]. Co-Chair MacLean suggested establishing a limit
to the permanent fund dividend. She recommended that a cap
of either $900/$700/$400 be proposed to the public for
permanent fund checks. Co-Chair MacLean then suggested
forming an interim task force to consider revenue sources as
generated through the permanent fund.
HB 541 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 2:40 P.M.
HOUSE FINANCE COMMITTEE
April 21, 1994
1:35 P.M.
TAPE HFC 94 - 138, Side 2, #000 - end.
TAPE HFC 94 - 139, Side 1, #000 - #411.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:35 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Keith Kelton, Director, Division of Facility Construction &
Operation, Department of Environmental Conservation; Clyde
Stoltzfus, Special Assistant, Commissioner's Office,
Department of Transportation and Public Facilities; Jack
Chenoweth, Attorney, Legislative Legal Counsel, Legislative
Affairs Agency; Jay Hogan, Staff, Representative Ron Larson.
SUMMARY
SB 210 An Act relating to disposal of state land within
five miles of the right-of-way of the Dalton
Highway to a licensed public utility or a licensed
common carrier.
HCS CS SB 210 (FIN) was reported out of Committee
7
with a "do pass" recommendation with fiscal notes
by the Department of Natural Resources, 2/15/94
and the Department of Transportation and Public
Facilities dated 2/07/94.
SB 330 An Act relating to water quality enhancement,
water supply, waste water, and solid waste grants;
the Alaska clean water fund; the establishment of
the Alaska clean water account, the Alaska
drinking water fund, and the Alaska drinking water
account; and providing for an effective date.
CS SB 330 (RLS) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Department of Environmental Conservation
dated 2/24/94.
SB 247 An Act relating to state leases and to state
lease-purchase and lease-financing agreements, and
repealing a legislative authorization previously
given for acquisition of a facility through a
lease-purchase agreement; and providing for an
effective date.
HCS CS SB 247 (FIN) was reported out of Committee
with a "do pass" recommendation and with two zero
fiscal notes by the Department of Administration
dated 1/24/94 and Legislative Affairs Agency dated
1/21/94.
HB 541 An Act providing for an advisory vote of the
people concerning a preferred alternative for
increasing revenue available to support state
government; and providing for an effective date.
HB 541 was HELD in Committee for further
discussion.
SENATE BILL 330
"An Act relating to water quality enhancement, water
supply, waste water, and solid waste grants; the Alaska
clean water fund; the establishment of the Alaska clean
water account, the Alaska drinking water fund, and the
Alaska drinking water account; and providing for an
effective date."
KEITH KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION &
OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, noted
that SB 330 proposed modifications to two statutes
administered by the Division of Facility Construction &
Operation within the Department, AS 46.03.030 (Municipal
8
Matching Grants) and AS 46.03.032 (Alaska Clean Water Fund).
Mr. Kelton provided background history of the bill which
would create the Alaska Clean Water Fund in order to provide
low interest loans for the construction of municipal waste
water projects. The program, capitalized 83% by the federal
government, was designed to replace EPA construction grant
programs. He continued that since only the waste water
projects could be financed, the Legislature then created a
separate account for excess State appropriations to provide
loans for water supply and solid waste projects. Mr. Kelton
noted the account has not yet been capitalized and that the
only capitalized loans are for waste water projects.
Mr. Kelton added, SB 330 would provide funding assistance
through grants and loans to Alaska's incorporated
municipalities for the construction of water, waste water
and solid waste improvements.
Co-Chair MacLean questioned the legislative impact to the
VSW program and the matching grants for water and sewer
projects. Mr. Kelton responded that there would be a small
fiscal impact to the other grants at a higher percentage
than is currently available. He added that the impact would
be controlled by the appropriation process and the priority
list would be assembled by the Department.
Co-Chair MacLean reiterated that this legislation would be
impacting the municipal matching grants list. Only two
projects were funded this year through the municipal
matching grants for water and sewer and with the proposed
legislation, the local communities would be more seriously
competing for that money.
Representative Brown MOVED to report CS SB 330 (RLS) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
CS SB 330 (RLS) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the
Department of Environmental Conservation dated 2/24/94.
SENATE BILL 210
"An Act relating to disposal of state land within five
miles of the right-of-way of the Dalton Highway to a
licensed public utility or a licensed common carrier."
Representative Therriault explained SB 210 as proposed by
Senator Bert Sharp. He commented that under current
statute, the State is prohibited from disposing of or
9
leasing State land within five miles of the right-of-way of
the Dalton Highway. The State recently acquired several
parcels of land in the area, under the land selection
allocation, yet they could not be leased or purchased.
Representative Therriault explained the Subcommittee changes
made to the work draft resulting from concerns in the
Committee.
Co-Chair MacLean MOVED to adopt work draft 8-LS1110\O,
Luckhaupt, 4/18/94, as the version before the Committee.
There being NO OBJECTION, it was so ordered.
CLYDE STOLTZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, noted
the Department's support of the legislation and offered to
answer question's of the Committee.
Representative Therriault MOVED to report HCS CS SB 210
(FIN) out of Committee with individual recommendations and
with the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
HCS CS SB 210 (FIN) was reported out of Committee with a "do
pass" recommendation and with zero fiscal notes by the
Department of Natural Resources dated 2/15/94 and the
Department of Transportation and Public Facilities dated
2/07/94.
SENATE BILL 247
"An Act relating to state leases and to state
lease-purchase and lease-financing agreements, and
repealing a legislative authorization previously given
for acquisition of a facility through a lease-purchase
agreement; and providing for an effective date."
JACK CHENOWETH, ATTORNEY, LEGISLATIVE LEGAL COUNSEL,
LEGISLATIVE AFFAIRS AGENCY, clarified past action taken by
the Committee in regards to SB 247. When the bill came to
him, he was asked to incorporate two amendments. One of the
amendments was an exception for the University Board of
Regents addressing the necessity to rent or lease space
based upon federal or university receipts. He concluded
that addition would warrant a title change. The title is
tightly drawn and would not admit to any exceptions beyond
the ones listed and in the body of the bill.
Mr. Chenoweth continued that the second amendment would
require a deletion of an approval to construct a court
building in Fairbanks. That insertion would also require a
title change.
10
Representative Therriault provided the Committee with a work
draft of a house concurrent resolution #8-LS1905\A,
Chenoweth, 4/21/94, which would open up the title to
accommodate Amendment #2 but would not include language to
accommodate Amendment #1.
Representative Hanley elaborated that the bill had moved
from Committee and that Representative Therriault had moved
to divide the question in order to address a title change.
He added that Co-Chair MacLean objected to that motion.
Mr. Chenoweth pointed out that when the legislation was
initially drafted the title was broad, and then because of a
provision inserted in the original bill, language was added
to read "and repealing the legislative authorization
previously given for acquisition of a facility given a
lease-purchase agreement". The language clarified that
nothing would be "slipped" through the legislation. The
Senate proceeded to tighten the title which removed that
provision.
Representative Therriault MOVED to adopt the language of the
proposed house concurrent resolution which would broaden the
title to include necessary changes in order to accommodate
Amendment #2. Co-Chair MacLean WITHDREW her OBJECTION to
the motion. There being NO OBJECTIONS, the motion was
adopted.
Representative Therriault MOVED TO RESCIND previous action
taken in passing HCS CS SB 247 (FIN) out of Committee. Co-
Chair MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Navarre, Parnell, Therriault,
Foster, Grussendorf.
OPPOSED: Martin, Brown, MacLean, Larson.
Representative Hoffman was not present for the vote.
The MOTION PASSED (6-4).
Representative Therriault MOVED TO RESCIND previous action
taken in adopting Amendment #1. Co-Chair MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Parnell, Therriault, Foster,
Grussendorf.
OPPOSED: Martin, Brown, Hanley, Larson, MacLean.
11
Representative Hoffman was not present for the vote.
The MOTION FAILED (5-5).
(Tape Change, HFC 94-139, Side 1).
Representative Martin MOVED to report HCS CS SB 247 (FIN)
out of Committee with the accompanying fiscal notes.
Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Navarre, Parnell, Brown,
Grussendorf, Hanley, MacLean, Larson.
OPPOSED: Therriault, Foster.
Representative Hoffman was not present for the vote.
The MOTION PASSED (8-2).
Co-Chair MacLean MOVED to adopt the House Concurrent
Resolution work draft 8-LS1905\A, Chenoweth, 4/21/94. Co-
Chair MacLean MOVED to amend the resolution to Page 2, Line
6, adding the language "and repealing a legislative
authorization previously given for acquisition of a facility
through a lease-purchase agreement". Representative
Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Brown, Hanley, Martin, Larson,
MacLean.
OPPOSED: Therriault, Grussendorf.
Representative Hoffman was not present for the vote.
The MOTION PASSED (6-2).
Co-Chair MacLean MOVED to adopt the amended House Concurrent
Resolution. Representative Therriault OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Brown, Grussendorf, Hanley,
Martin, MacLean, Larson.
OPPOSED: Therriault, Foster.
Representatives Hoffman and Navarre were not present for the
vote.
The MOTION PASSED (7-2).
12
HCS CS SB 247 (FIN) was reported out of Committee with a "do
pass" recommendation and with a title change through a House
Concurrent Resolution and with zero fiscal notes by the
Department of Administration dated 1/24/94 and the
Legislative Affairs Agency dated 1/21/94.
HOUSE BILL 541
"An Act providing for an advisory vote of the people
concerning a preferred alternative for increasing
revenue available to support state government; and
providing for an effective date."
Co-Chair Larson provided the Committee members with a
handout "Selected NFIB/Alaska Ballot Results-1993". [Copy
on file]. Co-Chair MacLean suggested establishing a limit
to the permanent fund dividend. She recommended that a cap
of either $900/$700/$400 be proposed to the public for
permanent fund checks. Co-Chair MacLean then suggested
forming an interim task force to consider revenue sources as
generated through the permanent fund.
HB 541 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 2:40 P.M.
13
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