Legislature(2007 - 2008)HOUSE FINANCE 519
04/03/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB289 | |
| SB303 | |
| HB366 | |
| SB214 | |
| SB255 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 214 | TELECONFERENCED | |
| + | SB 255 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 289 | TELECONFERENCED | |
| += | SB 303 | TELECONFERENCED | |
| += | HB 366 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 3, 2008
1:52 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:52:18 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
None
ALSO PRESENT
Representative Bob Buch; Senator Lyda Green; Dan Fauske,
CEO/Executive Director, Alaska Housing Finance Corporation,
Department of Revenue; Bryan Butcher, Legislative Liaison,
Alaska Housing Finance Corporation; Ginger Blaisdell, Staff,
Senator Lyda Green; John Combs, Mayor, City of Palmer; Bill
Allen, City Manager, Palmer; Bill Griffith, Facility
Programs Inspector, Department of Environmental
Conservation; Jerry Burnett, Director, Division of
Administrative Services, Department of Revenue; Dwayne
Peoples, Deputy Commissioner, Department of Corrections;
Jody Simpson, Staff, Senator Charlie Huggins; Kristen
Wright, Finance/Licensing Supervisor, Division of
Administrative Services, Department of Fish and Game; McHugh
Pierre, Liaison, Department of Military and Veterans
Affairs; Senator Kim Elton.
PRESENT VIA TELECONFERENCE
Bob Brean, Alaska Housing Finance Corporation, Department of
Revenue.
SUMMARY
HB 366 An Act relating to an exemption from public
disclosure of certain appropriations from the
dividend fund; and providing for an effective
date.
HB 366 was REPORTED out of Committee with no
recommendation and zero fiscal note by Department
of Corrections and zero fiscal note by the
Department of Revenue.
CS SB 214(FIN)
An Act relating to hunting licenses and tags for
nonresident members of the military service or the
United States Coast Guard and their dependents;
and providing for an effective date.
HCS CSSB 214(FIN) was REPORTED out of Committee
with a "do pass" recommendation and with new
fiscal note by Department of Fish and Game.
SB 255 An Act relating to refunding of certain
outstanding bonds issued by the Alaska Industrial
Development and Export Authority concerning the
Snettisham hydroelectric project and related
assets; and providing for an effective date.
SB 255 was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note by
Department of Commerce, Community and Economic
Development.
SB 289 An Act relating to home energy conservation and
weatherization for purposes of certain programs of
the Alaska Housing and Finance Corporation.
SB 289 was HEARD and HELD by the Committee for
further consideration.
SB 303 An Act relating to certain grants awarded by the
Department of Environmental Conservation.
SB 303 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 289
An Act relating to home energy conservation and
weatherization for purposes of certain programs of the
Alaska Housing and Finance Corporation.
1:54:02 PM
Representative Kelly asked how the $300 million would be
spent in the first years of the project.
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, thought $20-40 million
would be spent the first year. He said the goal is to get
people involved as soon as possible.
BOB BREAN, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT OF
REVENUE (testified via teleconference), emphasized that
there would be a ramping up period. The Alaska Housing
Finance Corporation (AHFC) was looking at twenty
contractors. Mr. Fauske added that he had spoken to vendors
and wanted to take into consideration the barge schedule to
remote areas.
1:56:28 PM
Representative Thomas asked if there was a cap on the grant.
Mr. Fauske responded that the loan amount would be $30,000.
People would borrow money and there would be a rebate at the
$5,000 level. Representative Thomas asked about the grant
portion.
BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION, said the rebate program would be capped at the
number that would give incentives to Alaskans to use the
program. The $5,000 amount is flexible. In terms of the
weatherization, AHFC is looking at an average amount. Funds
are limited, so the average would around $4,000. With more
funding, the program could do more in individual homes, but
the average would still only be around $8,000.
Representative Thomas asked if there were restrictions since
the value of the house would be increased. Mr. Butcher
answered that the goal of the program is to make houses more
energy efficient. If the person sold the home, it would
still be more energy efficient. Representative Thomas
reiterated concerns about people taking advantage of the
program to increase the re-sale value of homes. He suggested
a restriction such as not being able to sell the home for
two years.
Mr. Brean said that in the early days, there were no
restrictions and people took advantage of loopholes to
install solariums and hot tubs. A lot was learned. The uses
of the money have been reconfigured to focus more accurately
on energy efficiency. There are no restrictions on the sale
of the home. The value is the return on investment to the
State. Energy efficient homes benefit the State as a whole.
This could be adjusted if there were strong concerns.
2:00:53 PM
Representative Thomas wanted the issue to be looked at so
that people could not take advantage of the program. Mr.
Fauske thought a pre-payment penalty on a loan could be
built into the regulations.
Representative Kelly thought that it would help to have a
list of all the programs that provide assistance for
heating, listing the number of people impacted. He was
concerned about fraud.
PUBLIC TESTIMONY CLOSED.
SB 289 was HEARD and HELD by the Committee for further
consideration.
SENATE BILL NO. 303
An Act relating to certain grants awarded by the
Department of Environmental Conservation.
2:04:48 PM
GINGER BLAISDELL, STAFF, SENATOR LYDA GREEN, explained that
the bill changes the population requirements for certain
match rates from 5,000 to 10,000 for a grant that would
receive 70% state funding with a 30% municipal match. She
referred to a community population list (Copy on File), that
shows Anchorage, Fairbanks, and Juneau at over 30,000; eight
communities between 10,000 and 5,000; the remainder of
Alaskan communities are under five thousand. Current match
rates are: communities 5,000 and higher pay a 50/50 match;
$1,000 to 5,000 pay 70/30; and below 1,000 pay 85/15. The
main reason to change the population criteria is to bring in
the eight communities just above 5,000 to give them more
state participation for water and sewer projects. Rapidly
escalating prices in steel and construction costs means
smaller communities cannot make the 50/50 match.
Representative Thomas pointed out that Haines was not on the
list. Ms. Blaisdell assured him that Haines and Skagway are
still eligible.
Co-Chair Meyer OPENED PUBLIC TESTIMONY.
2:08:05 PM
JOHN COMBS, MAYOR, CITY OF PALMER, spoke in support of the
legislation. He represented not only Palmer but Wasilla,
Kenai, Homer, Ketchikan, Sitka, Kodiak, Bethel, Haines, and
Skagway. Palmer has 3200, and cannot absorb the expenses of
water and sewer projects. Local projects are on the shelf
due to an inadequate economic base. He asserted that the
issue is public safety.
BILL ALLEN, CITY MANAGER, PALMER, spoke in support of the
bill. He referenced a letter from Alaska Municipal League
Executive Director Kathie Wasserman (Copy on File).
Communities that are growing find themselves supporting
infrastructure and utilities that supply more and more
people, yet are eligible for less grant money. He added the
cities of Barrow, Unalaska and Valdez would soon be impacted
as well. Palmer has 50-year-old, thin-wall pipes that are
failing. Pressure tests have revealed a 40% leakage rate in
the water supply. They have also been notified that they are
out of compliance with the Environmental Protection Agency
for water safety. The cost of coming into compliance is over
$1 million. There is not a large enough tax-paying base to
raise that much money.
2:15:25 PM
PUBLIC TESTIMONY CLOSED.
Vice-Chair Stoltze commented on the difficulty of explaining
why other parts of the state get grants when large
neighborhoods attached to larger cities have many similar
problems. He voiced his frustration and listed problems in
the city of Anchorage.
2:18:41 PM
Representative Thomas asked if the program was capped.
BILL GRIFFITH, FACILITY PROGRAMS INSPECTOR, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, answered that the program was
not capped but limited by the amount of money made available
each year for capital projects.
Representative Thomas asserted that water and sewer were a
priority and thought more money should be put into the
program.
SB 303 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 366
An Act relating to an exemption from public disclosure
of certain appropriations from the dividend fund; and
providing for an effective date.
REPRESENTATIVE HARRY CRAWFORD, SPONSOR, explained that the
bill pertained to people without a voice. The Permanent Fund
Dividend (PFD) was taken away from children of certain
people in prison who had lost their PFD. The bill makes it
possible to use the PFD money for child support. It does not
take away the liability of the responsible person, but would
make sure the Dividend would get to the young instead of to
the Department of Corrections.
2:24:21 PM
Co-Chair Chenault asked for clarification regarding how the
bill would affect the parent's child support debt.
Representative Crawford answered the PFD money does not go
to the debt.
Representative Kelly queried as to the order of priority of
the distribution. Representative Crawford responded that in
all other cases, the Child Support Services Division is
first in line. The legislation puts them back into the list.
There is a system in place that the legislation does not
otherwise affect.
Representative Gara asked if the bill was trying to solve
the problem of those who owe legal child support or for all
parents.
2:27:53 PM
Representative Crawford answered some people are hard to
find. They might have to apply for the money. He thought the
change would not capture everyone but many.
Vice-Chair Stoltze noted that the Department of Public
Safety seemed unaware of the bill.
Co-Chair Chenault expressed questions regarding the zero
fiscal note.
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE (DOR), responded that while
there are 5,000 incarcerated people with active child
support cases, between 2000 and 3000 children not under
state foster care or public assistance would benefit from
the legislation. Currently when DOR garnishes the PFD, the
money goes to the State and is shared between the state and
the federal government. The Department does not want to
displace a shared state/federal program with an all-state
program. He said a lot of work needed to be done to
calculate the amount needed. Co-Chair Chenault did not want
a surprise in the next year. He asked the total number of
children involved.
2:32:33 PM
Mr. Burnett clarified that there are approximately 5,000
obligore parents involved. Generally, there are 1.6 children
per person who is obligated to pay. However, children can be
up to 40, because of back money owed. There are
approximately 2,000-3,000 children between 0 and 18 who are
not currently receiving public benefits.
Co-Chair Chenault asked how Department of Revenue would
address that if there was no General Fund increase in their
budget.
DWAYNE PEOPLES, DEPUTY COMMISSIONER, DEPARTMENT OF
CORRECTIONS, responded that the House version of the
Operating Budget has all of the PFD money allocated to
inmate health care. If that component comes up short, the
Legislature will have to address it.
2:35:39 PM
Representative Nelson thought the emphasis should be on the
children and not on the prisoners. She did not want the
children to go without. Co-Chair Chenault agreed and
clarified that he wanted people to see the cost associated
with the change.
Representative Hawker addressed the fiscal notes. He
wondered if the legislation would require the departments to
change the way they are currently budgeting the funds. Mr.
Burnett answered there is no requirement besides the
Legislature's intent. Mr. Peoples agreed there was no
obligation on his department.
Representative Hawker asked if the individual dividend would
have to show how much it was reduced as a result of the
budgetary change. Mr. Burnett said that was correct. Because
of the way the statute is constructed, the Department would
be limited to the amount calculated from the number of
people times the dividend paid.
Representative Hawker asked if the statutory authority was
broad enough. Mr. Burnett thought there was sufficient
authorization to provide for the grant program.
2:39:37 PM
Representative Hawker asked if DOR was accustomed to grant
programs paying money out. Mr. Burnett said the Department
does not have grant programs, but they do pay the money to
parents of custodial children. There is a disbursement
mechanism.
Representative Hawker asked if DOR wanted to create a grant
program with eligibility and compliance responsibilities.
Mr. Burnett stated that he had discussed the issue with the
Child Support Director and other staff. DOR was able and
willing to do that.
2:41:14 PM
There was a discussion about the requirements for the
program.
2:43:43 PM
PUBLIC TESTIMONY CLOSED.
2:46:14 PM
Vice-Chair Stoltze MOVED to REPORT HB 366 out of Committee
with individual recommendations and the accompanying fiscal
note by Department of Corrections and Department of Revenue.
There being NO OBJECTION, it was so ordered.
HB 366 was REPORTED out of Committee with no recommendation
and zero fiscal note by Department of Corrections and zero
fiscal note by the Department of Revenue.
CS FOR SENATE BILL NO. 214(FIN)
An Act relating to hunting licenses and tags for
nonresident members of the military service or the
United States Coast Guard and their dependents; and
providing for an effective date.
Vice-Chair Stoltze MOVED to ADOPT Work Draft 25-LS1261\V,
Kane, 4/1/08. There being NO OBJECTION, it was so ordered.
2:49:45 PM
JODY SIMPSON, STAFF, SENATOR CHARLIE HUGGINS, explained the
bill as providing newly stationed military members and their
dependents with hunting and fishing privileges, including
big game licenses and tags, at the equivalent of resident
rates. She described the requirements in other states
compared to Alaska's. The requirement to hire a guide is
retained to hunt dangerous game: brown and grizzly bears,
sheep and mountain goats. The bill does not affect
eligibility for PFD or jury pools. It also does not affect
personal use or subsistence requirements for the usual
twelve-month waiting period. The CS includes a new section
rolling in language previously contained in HB 62 providing
for free hunting and fishing licenses for active duty
members of the Alaska National Guard and Military Reserves.
(Sponsor Statement, Copy on File).
2:54:39 PM
Representative Hawker asked if the Sponsor was supportive of
the changes reflected in the CS. Ms. Simpson confirmed that
he was.
Co-Chair Chenault asked how sheep and goats got classified
as dangerous animals. Ms. Simpson replied that it has to do
with terrain.
Representative Thomas related the history of the bill. He
emphasized that it is not a recruitment tool. He shared a
personal story.
2:57:49 PM
Co-Chair Chenault asked if the license is different than a
regular license.
KRISTEN WRIGHT, FINANCE/LICENSING SUPERVISOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME,
described the difference in the licenses. Co-Chair Chenault
asked if there is an annual requirement. Ms. Wright said
there was.
Representative Joule inquired how many would be receiving
the license. Ms. Wright reported that there are 4,800
active-duty military in Alaska, which relates to the second
part of the bill. Regarding the first part of the bill, in
2006, approximately 500 licenses were sold. Representative
Joule asked if that number would increase. Ms. Wright
replied that was hard to predict.
3:00:58 PM
MCHUGH PIERRE, LIAISON, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, described the bill as a tribute to active-duty and
Coast Guard personnel. Co-Chair Chenault agreed.
3:03:03 PM
Co-Chair Chenault drew attention to the fiscal note. Ms.
Wright acknowledged that a new fiscal note would be needed
for the amount of $19,500 in replacement General Funds with
the acceptance of the CS.
Representative Foster moved to report HCS CSSB 214(FIN) with
individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
HCS CSSB 214(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with new fiscal note by Department
of Fish and Game.
3:05:25 PM
SENATE BILL NO. 255
An Act relating to refunding of certain outstanding
bonds issued by the Alaska Industrial Development and
Export Authority concerning the Snettisham
hydroelectric project and related assets; and providing
for an effective date.
SENATOR KIM ELTON, SPONSOR, explained that the bill was at
the request of Alaska Industrial Development and Export
Authority, (AIDEA), to help out Alaska Electric Light and
Power (AEL&P). It is specific only to the Snettisham
hydroelectric project. AEL&P operates, maintains, and pays
the debt service on Snettisham, which was transferred to the
State in 1988. Legal counsel for AIDEA needs additional
authority in order to roll costs of a new issuance in
premiums for early retirement of existing higher cost bonds
into new, lower cost bonds. There is no new project in the
bill and the bond market must be favorable before AIDEA and
AEL&P move forward. The savings, around $400,000 annually,
will go to the rate-payers.
3:07:51 PM
Representative Hawker asked if DOR is supportive of the
bill. Senator Elton thought so.
PUBLIC TESTIMONY CLOSED.
Co-Chair Chenault mentioned the fiscal note.
3:09:10 PM
Representative Foster moved to report SB 255 out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SB 255 was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note by Department of
Commerce, Community and Economic Development.
ADJOURNMENT
The meeting was adjourned at 3:09 PM.
| Document Name | Date/Time | Subjects |
|---|