Legislature(1995 - 1996)
04/16/1996 02:20 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 16, 1996
2:20 P.M.
TAPE HFC 96 - 123, Side 1, #000 - end.
TAPE HFC 96 - 123, Side 2, #000 - #573.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 2:20 P.M.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
ALSO PRESENT
Camden Toohey, Staff, Senator Bert Sharp; Tom Garrett,
Director, Division of Tourism, Department of Commerce and
Economic Development; Juanita Hensley, Chief, Driver
Services, Division of Motor Vehicles, Department of Public
Safety; Annette Kreitzer, Staff, Senator Loren Leman; George
Sullivan, Mayor, Anchorage; Marie Sansone, Assistant
Attorney General, Civil Division, Department of Law; Crystal
Smith, Legal Administrator, Department of Law; Wendy Redman,
Vice President, University Relations, University of Alaska;
Fred Pascoe, Staff, Representative Tom Brice; Nico Bus,
Acting Director, Division of Administrative Services,
Department of Natural Resources; Douglas Bailey, (Testified
via teleconference), Student, Anchorage; Cindy Feather,
(Testified via teleconference), Director, University Student
Housing Program, University of Alaska, Anchorage; Chester
Wegner, (Testified via teleconference), State Fire Marshall,
Anchorage; Chris Kennedy, (Testified via teleconference),
Assistant Attorney General, Civil Division, Anchorage; Frank
John Dillon, (Testified via teleconference), Executive Vice
President, Alaska Trucking Association, Anchorage; Sharon
Young, (Testified via teleconference), State Recorder,
Recorder's UC Component, Support Services Division,
Department of Natural Resources (DNR), Anchorage.
SUMMARY
SB 69 An Act relating to hazardous chemicals, hazardous
materials, and hazardous waste.
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HCS CS SB 69 (FIN) was reported out of Committee
with a "do pass" recommendation and with fiscal
notes by the Senate Finance Committee dated
2/07/96, the Department of Military and Veterans
Affairs dated 2/07/96, and the Department of
Public Safety dated 2/07/96.
SB 86 An Act relating to issuance of special request
commemorative gold rush motor vehicle license
plates.
SB 86 was HELD in Committee for further
consideration.
SB 163 An Act approving the University of Alaska's plans
to enter into long-term obligations to borrow
money from the Alaska Housing Finance Corporation
for the acquisition of student housing facilities;
and providing for an effective date.
CS SB 163 (FIN)(title am) was reported out of
Committee with a "do pass" recommendation and with
zero fiscal notes by Statewide Budget Office dated
3/27/96, the Department of Revenue dated 2/14/96
and a fiscal impact note by the Statewide Budget
Office.
HB 438 An Act relating to the indexing of documents
recorded in the state recorder's offices; and
providing for an effective date.
HB 438 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Natural Resources dated
3/12/96 and fiscal impact note by the Department
of Natural Resources.
SENATE BILL 86
"An Act relating to issuance of special request
commemorative gold rush motor vehicle license plates."
CAMDEN TOOHEY, STAFF, SENATOR BERT SHARP, stated that the
purpose of SB 86 would be to commemorate the period between
1994 and 2004 as the Alaska Gold Rush Centennial Decade with
the issuance of a new motor vehicle license plate. The
Commissioner of the Department of Public Safety (DPS) would
design the license plate in consultation with the Alaska
Gold Rush Centennial Task Force and license plate
manufacturer.
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Mr. Toohey continued, the legislation had been requested by
the Alaska Gold Rush Centennial Task Force representing
twenty-five Alaskan communities and parts of Canada. The
Gold Rush Task Force was established to coordinate statewide
celebrations of the 100th anniversary in order to promote
the understanding of the importance of the "Gold Rush Era"
in Alaska's history and to enhance tourism opportunities.
He added that the 18th Alaska Legislature passed SB 407
which changed the standard plate to the Gold Rush license
plate but Governor Hickel vetoed the bill because it removed
the two plate requirement.
TOM GARRETT, DIRECTOR, DIVISION OF TOURISM, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT (DCED), spoke to the
tourism promotion as it related to the Gold Rush license
plate. Gold Rush is going to become the predominating theme
affecting all tourism promotions for the next few years.
The Department is working closely with the Yukon government
in the promotion and marketing of the theme. He noted that
the Administration is supportive of the legislation.
Representative Mulder asked if there had been discussion
which would make the design a ten year temporary plate. Mr.
Toohey stated there had not been discussion, although the
purpose of the legislation would be to extend the ten year
celebration to 2004. Representative Mulder inquired if
Senator Sharp would be opposed to reinstating the yellow and
blue license plate after ten years. Mr. Toohey did not
think that Senator Sharp would oppose that concept.
Co-Chair Hanley inquired if everyone would be required to
replace their license plates. Mr. Toohey stated they would
not. The plate will take about a year to design and will be
ready to put on cars in the beginning of 1998. There will
be a phase in of the new plate when the yellow and blue
stock is depleted; then the Department will start
distributing the new theme plate. That plate will be for
vehicles newly registered or for those others that want to
change over their plates at a $5 dollar charge.
JUANITA HENSLEY, CHIEF, DRIVER SERVICES, DIVISION OF MOTOR
VEHICLES, DEPARTMENT OF PUBLIC SAFETY (DPS), noted that it
was the intent of the Department to issue a specified number
of plates and that replacement plates would not be required.
Co-Chair Hanley questioned the fiscal note reference to a
10% vendor price increase. Ms. Hensley responded that it
was anticipated that the new contract because of additional
graphics, would cost 10% more. Co-Chair Hanley asked the
cost of the "vanity" plates. Ms. Hensley replied that the
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"vanity" plates cost substantially more per plate, although,
the "recovery" cost exceeds the cost of each plate. The
Gold Rush plate would be a general issue plate; the current
contract cost would be approximately $2.68 each set of
plates.
Co-Chair Foster asked what had happened to all the designs
provided in the contest sponsored two years ago. Ms.
Hensley explained that contest had produced the two vanity
plates.
Representative Brown suggested that the language should
clearly define the intent that everyone was not required to
have a new Gold Rush plate.
Representative Brown MOVED a conceptual amendment which
clarified that the change would be a "transition" and that
the Department would replace the existing plates with the
new design. There being NO OBJECTION, it was adopted.
Representative Mulder MOVED a conceptual amendment which
would allow for a plate to convert back to its traditional
blue and gold after the year 2004. He understood that would
make the legislation a temporary law. Representative Brown
recommended that both of these statements be displayed,
providing a transitional amendment. She suggested that the
bill be HELD until the draft was returned.
Representative Mulder thought that perhaps the legislation
would benefit from a sunset clause in for 2004.
Representative Mulder WITHDREW THE MOTION for the conceptual
amendment. There being NO OBJECTION, it was withdrawn.
Mr. Toohey stated that the concept of reverting to a new
plate in the year of 2004 had been discussed in the Senate
Finance Committee.
Co-Chair Hanley noted that the transitional language would
be drafted and that the bill would be HELD in Committee for
further consideration following review of the draft.
CS SB 86 (FIN) was HELD in Committee for further
consideration.
SENATE BILL 69
"An Act relating to hazardous chemicals, hazardous
materials, and hazardous waste."
ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, spoke in
support of SB 69. She explained that as we downsize
government, and make it more "user friendly", a need to
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assess the efficiency becomes more apparent.
Currently, businesses in Alaska must report virtually the
same information about hazardous chemicals, materials and
wastes in four different formats to four different entities.
The proposed legislation would eliminate three formats and
one entity.
The bill was drafted with input from industry, fire
departments, Department of Environmental Conservation (DEC)
and the Department of Public Safety (DPS), Division of Fire
Prevention. The information reported would be streamlined
to one form which would satisfy federal, state and local
reporting requirements.
Ms. Kreitzer continued, providing the Committee a sectional
analysis of the legislation. Section 1 was an amendment
added in the House Resources Committee and would add an
immunity to Title 9, protecting the State from strict
liability for oil spills or other environmental releases at
the REAA schools. Without the change, the State and school
districts could each be liable for 100% of damages claimed
from environmental problems on school sites. The amendment
was added as part of the State's response to the Toksook Bay
lawsuit.
Section 2 & 3 deletes reference to AS 18.70.310 of the state
fire marshals placarding program. A placarding program list
which hazardous substances or chemicals are in the vicinity
and how one should respond in fire suppression. The program
has not been effective nor well implemented.
Ms. Kreitzer commented that Section 4, Subsection (a) would
make the State Emergency Response Commission the agency to
approve a form to be used for the reporting of placarding
information under a municipal placarding program. The
action would ensure that if the form needs to be changed,
the commission could coordinate with all agencies that
receive such reports.
Section 5, Subsection (c) refers to the existing municipal
placarding program. Currently under State or federal law,
either a municipality or the State Emergency Response
Commission (SERC) may add substances to those already
required to be reported. This section ensures a public
process for adding or removing substances.
MARIE SANSONE, ASSISTANT ATTORNEY GENERAL, CIVIL DIVISION,
DEPARTMENT OF LAW, commented that the Attorney General's
Office was supportive of the proposed legislation.
Ms. Kreitzer spoke to Amendment #1 which would place a time-
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line on when the form should be developed, which would
provide date certain times for the public.
Representative Mulder MOVED to adopt Amendment #1, 9-
LS0360\K.1, Lauterbach, 2/06/96. There being NO OBJECTION,
it was adopted.
CHESTER WEGNER, (TESTIFIED VIA TELECONFERENCE), ASSISTANT
STATE FIRE MARSHAL, ANCHORAGE, advised that the State Fire
Marshal's Office was in support of the legislation. He
stated that the current program was difficult to implement.
CHRIS KENNEDY, (TESTIFIED VIA TELECONFERENCE), ASSISTANT
ATTORNEY GENERAL, CIVIL DIVISION, ANCHORAGE, offered to
answer questions on Section 1 of the legislation.
CRYSTAL SMITH, LEGAL ADMINISTRATOR, DEPARTMENT OF LAW,
provided an overview of Section 1. Section 1 represents one
aspect of the Administration's response to the States
exposure to the major liability which was revealed in the
Toksook Bay lawsuit. That lawsuit was brought in response
to a fuel spill at an REAA school which occurred in 1990.
The State received that school from the Bureau of Indian
Affairs (BIA) just a year prior to the incident.
The result of the lawsuit has been addressed by a consent
judgement. A settlement against the State was made and the
REAA's are now paying a portion of that settlement. As a
result, the State's liability for damages was revealed.
Without the change included in Section 1, the State and
school district could be held 100% liable for any damages at
the school sites. The exemption from liability is
"narrowly" drawn and would only apply for liability for
damages.
Ms. Smith continued, Section 14 includes the transitional
applicability language which has to do with Section 1
exemptions. Representative Parnell asked if under current
law, the State was exempt from strict liability. Mr.
Kennedy advised that the legislation would change liability
for both the State and the REAA.
Currently, both the State and the REAA are strictly liable
under AS 46.03.822. Representative Parnell asked if there
would be any other transfers by the federal government
similar to the REAA's that the State currently bears
exposure for which are not being addressed in the proposed
legislation. Mr. Kennedy suggested there probably were,
although in SB 69, a specific problem was addressed at the
request of the Senate leadership.
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FRANK JOHN DILLON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
VICE PRESIDENT, ALASKA TRUCKING ASSOCIATION, ANCHORAGE,
commented that the association which he represents handles
the majority of the hazardous materials in the State.
Currently, that group is stringently regulated by the
federal government. Mr. Dillon requested that the
legislation not move beyond federal requirements and
regulations.
At this time, tremendous amounts of hazardous waste and
materials are moved without incident. The reason this can
be done, is that there currently exists a body of "good"
safety regulations and required enforcement of those rules.
He requested that the legislation not move beyond what is
reasonable or what is contained in federal regulations.
(Tape Change, HFC 96-123, Side 2).
Representative Kelly asked if "hazardous waste" as defined
in AS 46.03.900 and the Environmental Statute 40 CFR 261
were different. Ms. Kreitzer replied that the AS 46.03.900
was more encompassing than the other one referenced.
Ms. Sansone added that the hazardous waste definition which
is in law in Title 46 is broad and written in qualitative
terms. However, in implementing the State Statute, DEC
adopted the Environmental Protection Agency (EPA)
identification of hazardous waste sets in regulation,
whereas, the State is using the federal standard list of
hazardous waste. There is a provision in State law which
allows the commissioner of DEC to find other ways in which
something may be "hazardous". She added, the DEC
commissioner has never carried through and named an
additional substance.
The definition of "hazardous materials" references another
section in the federal regulations. Those regulations
designate and identifies hazardous materials for the
purposes of transportation laws. Regarding those
regulations, the State and local laws are pre-empted by
federal regulations which are more detailed.
Representative Kelly MOVED a conceptual amendment to Section
11, Subsection (A) & (B), removing (B), which he thought
would avoid "non-achievable" standards currently existing in
regulation. Representative Brown asked which chemicals
would be covered in removal of Subsection (B). There was no
representative from DEC who could explain that exemption.
Ms. Kreitzer asserted that the Senate Resources Committee
made it explicit that it was not their intent to include
anything more stringent then already existed in federal
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regulations. She thought that the legislation was a step
toward streamlining all the current reportings required.
Removing portions of the legislation could affect the entire
bill. Representative Kelly voiced concern that the language
was "too broad" and removal would make the State standard
less stringent.
Co-Chair Hanley pointed out that the intent was to combine
four different requirements into one. He explained that if
information was required to be reported "somewhere" in
statute, and then removed from the form, someone might not
be in compliance by not reporting on that one form.
Representative Kelly WITHDREW the MOTION to the amendment.
There being NO OBJECTION, it was withdrawn.
Representative Brown questioned Section 5, Page 3, Line 20,
the change from 500 pounds to 10 thousand pounds for
reporting of a hazardous chemical. Ms. Kreitzer stated that
change was consistent with federal law.
Representative Therriault asked why there was a zero fiscal
note for DEC. Ms. Kreitzer responded, currently, DEC has
been delegated by the State Emergency Response Commission
(SERC) as the agency which receives "community right to
know" reports. That motion has not been rescinded to date.
DEC currently makes the report available and the Senate
assumed that DEC could continue to provide that obligation.
She emphasized that this is not a new requirement.
Representative Martin MOVED to report HCS CS SB 69 (FIN) out
of Committee with individual recommendations. There being
NO OBJECTION, it was so ordered.
HCS CS SB 69 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Public Safety dated 2/07/96 and zero fiscal
notes by the Department of Military & Veterans Affairs dated
2/07/96 and the Senate Finance Committee dated 2/07/96.
SENATE BILL 163
"An Act approving the University of Alaska's plans to
enter into long-term obligations to borrow money from
the Alaska Housing Finance Corporation for the
acquisition of student housing facilities; and
providing for an effective date."
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, spoke in support of SB 163. She
pointed out that last year the bill included both Juneau and
Ketchikan housing projects which this year have been
removed. The Juneau housing project was funded last year
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with a cash appropriation; the Ketchikan housing project is
currently going forward with private financing through a
local bank. The proposed legislation is only for an
Anchorage student housing project.
The University has worked with Alaska Housing Finance
Corporation (AHFC) over the interim in order to create a
financing plan which will meet both entities needs. The
Governor has agreed to include the project as part of the
AHFC Capital Improvement Project (CIP) for FY98.
Ms. Redman added that it had not been the Board of Regents
intent to turn Anchorage into a residential campus. A
residential campus would have between 35% to 55% of their
students housed. The Fairbanks campus is a residential
campus. Currently, in Anchorage, only 3% of those students
are residential. With the proposed legislation, that number
would increase to 7%. The long range goals would be to
increase the Anchorage campus to 15% students housed. She
urged the Committee's support of the legislation.
Representative Brown asked the source of the interest rate
subsidy. Ms. Redman stated that would result from AHFC
reserves.
Representative Navarre voiced support of the legislation.
He suggested assessment of housing needs within the
outlining campuses.
GEORGE SULLIVAN, MAYOR, ANCHORAGE, spoke in support of SB
163, pointing out that the Anchorage campus has an extensive
waiting list for campus bed space.
DOUGLAS BAILEY, (TESTIFIED VIA TELECONFERENCE), STUDENT,
UNIVERSITY OF ALASKA, ANCHORAGE, testified in support of the
bill. He stressed the need for more housing for University
students on the Anchorage campus.
CINDY FEATHER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
STUDENT HOUSING PROGRAM, UNIVERSITY OF ALASKA, ANCHORAGE,
offered to answer any questions of the Committee regarding
the proposed project or financial concerns in connection
with it. She stressed that the program has a lot of support
from the public and from the students.
Representative Navarre MOVED to report CS SB 163 (FIN)(title
am) out of Committee with individual recommendations. There
being NO OBJECTION, it was so ordered.
CS SB 163 (FIN) (tile am) was reported out of Committee with
a "do pass" recommendation and with a fiscal note by
Statewide Budget Office and zero fiscal notes by the
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Statewide Budget Office dated 3/27/96 and the Department of
Revenue dated 2/14/96.
HOUSE BILL 438
"An Act relating to the indexing of documents recorded
in the state recorder's offices; and providing for an
effective date."
FRED PASCOE, STAFF, REPRESENTATIVE TOM BRICE, spoke to HB
438. He stated that the legislation would mandate a
geographic location indexing method within the State
Recorder's Office. The result will be the continuation of
an effective cataloguing system of lands in the State, and
future possibilities of cross referencing that information
with the resources, leases, and claims information in other
data bases.
Mr. Pascoe stated that under the current work load, the
Record's Office does not anticipate a significant fiscal
impact. Land is an important asset in our State, and
providing the data for an eventually up-to-date, integrated
system for recording and retrieving resource, ownership, and
location data is in everyone's best interest.
SHARON YOUNG, (TESTIFIED VIA TELECONFERENCE), STATE
RECORDER, RECORDER'S UC COMPONENT, SUPPORT SERVICES
DIVISION, DEPARTMENT OF NATURAL RESOURCES, ANCHORAGE, stated
that HB 438 would mandate the location index for the
recording system. A location index is currently maintained
by the State, which has been a curtesy for a number of
years. Because it is a "curtesy", it gives way to other
statutory mandates. There are many location gaps in the
index at this time. She offered to answer questions of the
Committee.
Representative Mulder referenced the revised fiscal note
included by the Department of Natural Resources.
Representative Brown voiced concern with the lack of funding
to implement the fiscal impact. She suggested that these be
program receipts. Ms. Young pointed out that the bill is
viewed as "prospective", being too extensive a task to go
back and capture the old information.
NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES, added, initially when the
legislation was evaluated, there were two fiscal notes, one
for the State Recorder's Office submitted January 29, 1996,
and one for the Information Resource Management. The
revised fiscal note deals only with the impact to the State
Recorder's Office. Now that has been changed to a zero
impact. He added, however, the Information Resource
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Management fiscal note is still valid.
Representative Brown MOVED to report HB 438 out of Committee
with individual recommendations and with the accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
HB 438 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by the Department of
Natural Resources dated 3/12/96 and a new zero fiscal note
by the Department of Natural Resources.
ADJOURNMENT
The meeting adjourned at 3:35 P.M.
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