Legislature(2013 - 2014)HOUSE FINANCE 519
03/20/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB64 | |
| HB99 | |
| HB84 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 84 | TELECONFERENCED | |
| + | HB 99 | TELECONFERENCED | |
| *+ | HB 64 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 20, 2013
2:03 p.m.
2:03:57 PM
CALL TO ORDER
Co-Chair Austerman called the House Finance Committee
meeting to order at 2:03 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Mark Neuman, Vice-Chair
Representative Mia Costello
Representative Les Gara
Representative David Guttenberg
Representative Lindsey Holmes
Representative Cathy Munoz
Representative Steve Thompson
Representative Tammie Wilson
MEMBERS ABSENT
Representative Bryce Edgmon
ALSO PRESENT
Karen Rehfeld, Director, Office of Management and Budget,
Office of the Governor; Representative Dan Saddler,
Sponsor.
PRESENT VIA TELECONFERENCE
Bill Jeffress, Chair, Alaska Minerals Commission; Deantha
Crockett, Executive Director, Alaska Miners Association;
Marleanna Hall, Project Coordinator, Resource Development
Council; Stephen Trimble, Minerals Commission; Mark
Sansouci, Department of Defense, Tacoma; Patricia Senner,
Alaska Nurses Association, Anchorage; Jeff Selvey,
Executive Director, Alaska Workforce Investment Board,
Department of Labor and Workforce Development.
SUMMARY
HB 64 BUDGET: CAPITAL
HB 64 was HEARD and HELD in committee for further
consideration.
HB 84 MILITARY TRAINING CREDIT/TEMP. LICENSE
HB 84 was HEARD and HELD in committee for further
consideration.
CSHB 99 (RES)
EXTEND ALASKA MINERALS COMMISSION
CSHB 99(RES) was REPORTED out of committee with a
"do pass" recommendation and with one fiscal
impact note from Department of Commerce,
Community and Economic Development.
HOUSE BILL NO. 64
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
2:05:05 PM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, addressed the legislation. She
referred to a spreadsheet that included FY 14 capital
budget amendments (copy on file). The capital budget
request including the amendments and the mental health
budget totaled $1.86 billion. Of that, $799.2 million was
unrestricted general funds for approximately 43 percent of
the total budget. She pointed out that $74.6 million was
classified as designated general funds while $56.6 million
was "other funds" and $938.4 million was federal funds.
Ms. Rehfeld highlighted that designated general funds
included the Regional Educational Attendance Area Fund and
$46.2 million was requested for two school construction
projects. The Renewable Energy Grant Fund request was $25
million for round 6 of the renewable energy grants. She
noted that "other funds" addressed items like the Highway
Working Capital Fund, International Airport Funds and
Statutory Designated Program Receipts.
Ms. Rehfeld noted that HB 64 contained 14 sections. Section
1 was considered the number section of the bill and
contained individual department projects. The projects were
organized by department in order of priority. She stated
that the exception was the Department of Transportation and
Public Facilities (DOT/PF), which was organized by program
area in alphabetical order. The deferred maintenance
requests appeared at the end of each department's budget.
Sections 2 and 3 of the bill were the funding summaries for
the numbers included section 1. The language section began
on page 48.
2:08:36 PM
Ms. Rehfeld moved to the language section. She pointed to
Section 4, which included the Legislative Budget and Audit
Committee provisions. Section 5 on page 48, lines 17-21
included requests for fund capitalization. She pointed out
that (a) addressed the Alaska Gasline Inducement Act (AGIA)
reimbursement for a request of $25 million. She explained
that $305 had been appropriated for the project and the
additional increment would bring the total to $330 million
of the $500 million. She noted that $223 million had been
paid out in reimbursements in December 2012.
Ms. Rehfeld continued with section 5 (b) and the request
for $2 million for the Emerging Energy Technology Fund
created in 2010 for demonstration projects. She repeated
that section 6, page 48 addressed fund transfers. She
continued with section 7, page 48, which authorized
settlements from insurance claims to go to the catastrophic
reserve or appropriate state agency. Section 8, page 48 and
49 addressed the National Petroleum Reserve Alaska (NPRA)
Grants. She noted that the Office of Management and Budget
(OMB) brought forward an estimate of the amount of revenue
available for the next fiscal year. The amended budget
contained a revised amount and a list of grants. The
Department of Commerce, Community and Economic Development
(DCCED) managed the annual grant program for communities in
the impacted area of the NPRA.
Ms. Rehfeld continued with section 9, page 49 and a request
for reappropriation of $1,750,000 in funds from the Alaska
Energy Authority for a project for Akiak Rural Power System
Upgrade. The project was complete and the request was to
repurpose the balance for the completion of a project in
Atmautluak. Section 10, page 49 included a request to
reappropriate remaining balances from projects under the
Department of Environmental Conservation (DEC) for the
municipal matching grant program for project administration
of continuing water, sewer and solid waste facility grants.
The amount was estimated at $359,541.
2:12:04 PM
Ms. Rehfeld pointed to Section 11 on page 50. She mentioned
the Kodiak Near Island Research Facility through the
Department of Fish and Game to repurpose the funds for
their hunting and fishing licensing system. She continued
with Section 12 and the lapse provisions including (a), the
NPRA grant and (b) addressed fund capitalizations for AGIA
and the emerging technology. Section 13 provided
reappropriations and their effective date of June 30, 2013.
She added that section 14 was the effective date of the
bill July 1, 2013.
Ms. Rehfeld continued to highlight specific funding sources
proposed in the budget. Under the Alaska Housing Capital
Corporation funding source, $95.2 million was proposed for
the Susitna Watana project. She mentioned that the Alaska
Industrial Development and Export Authority annually
declared a dividend available and the FY 14 dividend amount
was $20,745,000, which was proposed for utilization in 4
projects. The projects included the Ambler Road to
Resources for $8.5 million, the Dalton Highway improvements
for $7.5 million and the general Roads to Resources program
for smaller timber harvest and other roads for $2 million
and the Strategic Mineral Assessment for $2,745,000.
Ms. Rehfeld noted that the Alaska Housing Finance
Corporation (AHFC) did not have dividends available for
projects, so their $10.6 million was allocated for debt
service under AHFC. She noted that the energy components of
the governor's capital request included the Susitna
project, the Alaska Industrial Development and Export
Authority (AIDEA) appropriation of $50 million to leverage
other funds and financing for natural gas treatment and
distribution for interior Alaska, weatherization at $31.5
million, home energy rebates at $20 million, and the
renewable energy grants at $25 million.
Ms. Rehfeld mentioned approximately $1 billion requested
for statewide infrastructure projects. The projects were
typically introduced for aviation and highway facilities,
the village safe water components municipal water and sewer
projects. She included the request for funding for 12 major
maintenance projects from the Department of Education and
Early Development (DEED) list with an amendment to fund
project 13. She noted that year 4 of the governor's
deferred maintenance initiative to address state facilities
for $100 million.
2:16:12 PM
Ms. Rehfeld pointed to a request for $15 million for the
Geologic Materials Center to purchase and renovate an
existing facility in Anchorage. She added the Chinook
Salmon Research Initiative for $10 million over a five year
period to take a strategic look at sustainability of the
initiative.
Ms. Rehfeld discussed the amendment package. She reviewed
the spreadsheet, line 2 and DEED's major maintenance
project, number 13 on the department's list. She noted that
OMB had the opportunity to reappropriate funds from two
prior projects; one from Susitna Valley Replacement School
and one from Petersburg Elementary School Roof Replacement.
She explained the legislative request to repurpose the
funds to finish Tununak K-12 Major Maintenance.
Ms. Rehfeld continued with lines three and four of the
spreadsheet, which were corrections to the submitted back-
up. The dollar amounts were unchanged. She pointed to line
4 and the Nome Airport Runway and Airport Pavement Rehab
should include the north apron area. She continued with a
request for $26.5 million in federal receipt authority
found on line 5. The request addressed 4 projects found on
lines 6, 7, 8 and 9. She mentioned the State Transportation
Improvement Program (STIP) amendment process. Most of the
projects occurred after the December budget was released.
She requested consideration for $10 million for the
Ketchikan Water Street Trestle replacement and $1.5 million
for Parks Highway Passing Lanes. She continued with a
request for $10 million for St. Mary's in Mountain Village
Road Rehabilitation. She added line 9 and the Wrangle
Evergreen Road Improvements.
Ms. Rehfeld continued with Line 10 and the adjustment to
the National Petroleum Reserve Alaska Impact Grant Program
containing a list of grants for the individual projects in
the back-up. She continued with line 11 and the earlier
mentioned reappropriation for the ability to fund the
Tununak School. Line 12 was a reappropriation through
DOT/PF to continue efforts to build sand storage buildings
in central region as part of an Environmental Protection
Agency (EPA) requirement.
2:21:06 PM
Ms. Rehfeld looked at line 1 of an additional spreadsheet
submitted March 19 (copy on file). The first item addressed
the Medallion Foundation. She explained that $750 thousand
would be added to the $250 thousand requested in the
governor's budget. She mentioned the second item for the
Northwest Arctic Borough for the Kivalina Evacuation Road.
The community of Kivalina had decided on an official
relocation site, and the evacuation road would provide safe
access to that location. Ultimately, the Kivalina School
would require replacement and the evacuation site would
house the new school.
Co-Chair Austerman pointed to the four DOT/PF projects and
the STIP. He asked if a state match would be requested the
following year. Ms. Rehfeld replied that a state match was
included annually in the request. She understood that
providing the authority would not require additional state
funds.
2:23:47 PM
Co-Chair Austerman pointed to reappropriations on page 1.
He asked about the Tununak school maintenance with a
request of $727.9 thousand. Ms. Rehfeld responded that
there were two components to funding the Tununak project.
She noted that the reappropriation with the $727.9 thousand
would total the $16,381,000 required for the project. She
pointed out line 2, which stated the $727.9 thousand and
line 11. The reappropriation estimated at $15,653,451 would
total the amount necessary to fund the Tununak project.
Representative Guttenberg asked about line 8 of the
amendments and the Saint Mary's road rehabilitation. He
wondered follow-up maintenance was planned for the road.
Ms. Rehfeld replied that DOT/PF would be responsible for
the road maintenance.
Representative Guttenberg asked if the department had
submitted a maintenance request for the item. He stated
that the maintenance was not a priority in the current time
and he reported to the committee that driving the 16 mile
stretch took approximately one hour.
Representative Wilson asked about safe-water projects
(pages 8 through 10 in the legislation). She noted that
there was an air-quality problem in Fairbanks. She wondered
why the Fairbanks problem was not a priority when safe-
water was.
Ms. Rehfeld replied that the Village Safe Water Program for
$8.7 million was a general fund match for federal funds.
The projects were not meant to be mutually exclusive to
clean air.
2:28:02 PM
Representative Wilson believed that the state should be
responsible for helping to address the air quality issue in
Fairbanks.
Representative Gara discussed the legislature's intent to
appropriate $50 million to the Renewable Energy Fund. The
intention was to allow for the completion of as many
projects as possible. He wondered why $25 million as
opposed to the $50 million statutory request.
Ms. Rehfeld answered that it was necessary to evaluate
budget items every year. She opined that the energy
component for the capital budget was robust. She pointed
out that the legislature had opportunity to amend the
request. She mentioned competing interests. She stated that
the administration believed there had been significant
investment in renewable energy with many good projects
leading to reductions in costs. The package included
renewables, the Home Energy Rebate, weatherization, the
interior energy project and Susitna.
Representative Gara noted that the decision was not based
on an evaluation about whether more than $25 million of
good applications would save communities money. Ms. Rehfeld
responded that the Alaska Energy Authority (AEA) had an
annual evaluation process, with a project list submitted to
the legislature at the end of January. She noted that AEA
had not completed its review process prior to the release
of the governor's budget.
Representative Gara asked about the request of $2 million
for the Emerging Energy Grant Fund. He requested further
explanation of the fund and its use. Ms. Rehfeld deferred
the question to AEA.
2:31:48 PM
Representative Guttenberg remarked that there had been a
long conversation regarding the Kivalina project.
Co-Chair Stoltze noted the bill would come before the
committee again.
HB 64 was HEARD and HELD in committee for further
consideration.
2:32:53 PM
AT EASE
2:37:39 PM
RECONVENED
HOUSE BILL NO. 99
"An Act extending the termination date of the Alaska
Minerals Commission."
2:38:09 PM
REPRESENTATIVE DAN SADDLER, SPONSOR, explained the bill.
The Alaska Minerals Commission would be extended for an
additional 10 years. He read from a statement.
House Bill 99 extends the Alaska Minerals Commission
until February 1, 2024 and provides for terms and term
limits for those who serve on the Commission. The
Commission is currently set to expire on February 1,
2024, and commissioners are not currently subject to
terms or term limits.
The Commission was created in 1986 and charged with
making recommendations to the Governor and the
Legislature on ways to mitigate constraints on the
development of minerals in Alaska.
The Commission consists of 11 members: five appointed
by the Governor, three b the Speaker of the House, and
three by the President of the Senate. Each member must
have at least five years of experience in the minerals
industry. At least one member must reside in a rural
community. Current commissioners represent the placer,
hard rock, and coal mining industries across the
state.
The Commission annually reports its recommendations to
the Governor and the Legislature during the first ten
days of the legislative session.
Key recommendations made by the Commission and
implemented by the Legislature since the Commission's
last reauthorization in 2003 include:
· Funding infrastructure development under the
Roads to Resources program
· Reforming state permitting processes to make them
timelier and more efficient
· Gathering and publishing geological and
geophysical data on Alaska's mineral potential
· Assuming state primacy of the National Pollutant
Discharge Elimination System
· Accelerating state land entitlement conveyances
in accordance with the Statehood Act
· Reestablishing the citizens Advisory Commission
on Federal Areas
· Asserting and defending public access to roads,
trails, and navigable waterways
· Funding University of Alaska mineral engineering
and geology programs
I urge you to allow the Commission to continue its
important work and to help ensure the growth and
sustainability of a vital sector of the Alaskan
economy by supporting HB 99.
2:40:01 PM
Co-Chair Stoltze asked about the policy related to term
limits. Representative Saddler replied that most
commissioners would serve only one term. Especially
effective commissioners would be invited to serve a second
term. He anticipated that commissioners might wish to serve
a second term because they care about the industry
tremendously.
Representative Guttenberg asked if an audit had been
performed for the upcoming sunset. Representative Saddler
replied that an audit had not been done.
Vice-Chair Neuman pointed to budget deficit issues and the
need to conserve money. He wondered about the possibility
of phasing out commissions following final recommendations
to the legislature. He stated that the Alaska Minerals
Commission cost $13 thousand per year, but with hundreds of
different commissions, the cumulative state expense was
great. He called attention to the role of private industry.
2:43:13 PM
Representative Saddler believed the question was fair. He
opined that the annual cost of $13 thousand for the board
was a "bargain-basement" cost. If the services were
contracted out, they would far exceed the cost. He
expressed one benefit of the commission was its command of
respect of regulators of the private industry for meetings
and dialogue.
Vice-Chair Neuman opined that the legislature must review
the state commissions and consider phasing some out in the
spirit of frugality.
Co-Chair Stoltze made a remark related to the expense of
the annual Energy Council conference.
Representative Gara echoed comments made by Vice-Chair
Neuman. He wanted evidence that the commission was
providing advantages that the governor's office was not
already performing.
Co-Chair Stoltze commented that the governor's efforts
might have been suggested by the commissions.
Representative Saddler answered that he did not know
whether the decisions were made before or after the
commission's recommendations.
Co-Chair Stoltze made a remark about the chicken or the
egg.
Representative Gara supposed that the information was
available if searched for.
2:47:07 PM
BILL JEFFRESS, CHAIR, ALASKA MINERALS COMMISSION (via
teleconference), was available for questions. He stated
that the commission supported the legislation. Co-Chair
Stoltze referred to Representative Gara's question.
Mr. Jeffress replied that the commission's role was
independent. All members had different experiences with the
mineral industry in the state. The commission addressed
impediments to the minerals industry and actions that could
be taken to correct the issues. He stated that the members
were the "town criers."
Representative Saddler pointed to the 2004 Alaska Minerals
Commission report, which stated the goals of developing
more efficient permitting processes to assist in
infrastructure development, to benefit mining and other
industries, and to acquire baseline geological and
environmental knowledge statewide.
2:50:07 PM
DEANTHA CROCKETT, EXECUTIVE DIRECTOR, ALASKA MINERS
ASSOCIATION (via teleconference) expressed strong support
for the legislation. She discussed recommendations to
Department of Natural Resources and she stressed the
importance of the board. The association supported the
amendments to the legislation as they believed in
circulating board members regularly.
Representative Gara asked if Ms. Crockett was on the
commission. Ms. Crockett answered in the negative.
2:52:31 PM
MARLEANNA HALL, PROJECT COORDINATOR, RESOURCE DEVELOPMENT
COUNCIL (via teleconference), spoke in support of the
legislation. She stated that historically, the mining
industry provided the cornerstone of Alaska's economy. The
appointed group made recommendations to the legislature and
the governor in an effort to promote Alaska's mineral
exploration and development industry. The industry provided
some of the state's highest paying jobs. The bill would
extend the commission for 10 years. She pointed out that
the bill had a low fiscal impact. She pointed to a broad-
based membership. She urged the committee to pass the
legislation.
Vice-Chair Neuman asked if the council would consider a
grant to help relieve financial burdens of the state and
private industry. Ms. Hall deferred the question.
Representative Costello believed that other boards and
commissions should strive for the frugality of the
commission. She requested electronic reports in the future.
STEPHEN TRIMBLE, MINERALS COMMISSION (via teleconference)
commented that the list of recommendations in
Representative Saddler's sponsor statements were put forth
by the commission and enacted by the administration. The
commission took a lead role in actively recommending ways
to mitigate constraints on state mineral resource
development.
Co-Chair Stoltze CLOSED public testimony.
Representative Saddler made a note related to the costs. He
noted that the report presented by the Minerals Commission
was available electronically.
Representative Costello discussed the fiscal impact note
from the Department of Commerce, Community and Economic
Development.
Representative Munoz MOVED to REPORT CSHB 99(RES) out of
committee with individual recommendations and the
accompanying fiscal note.
Representative Gara OBJECTED for discussion. He asked the
sponsor to relay to the commission his desire to have their
specific ideas brought to the administration's attention.
Representative Gara REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
CSHB 99(RES) was REPORTED out of committee with a "do pass"
recommendation and with one fiscal impact note from
Department of Commerce, Community and Economic Development.
3:01:13 PM
AT EASE
3:03:05 PM
RECONVENED
HOUSE BILL NO. 84
"An Act relating to applying military education,
training, and service credit to occupational licensing
and certain postsecondary education and employment
training requirements; providing for a temporary
occupational license for qualified military service
members; and providing for an effective date."
3:03:19 PM
REPRESENTATIVE DAN SADDLER, SPONSOR, presented HB 84, which
enabled separating service members to transition
appropriately into the civilian workforce. He explained
that HB 84 asked the Division of Professional Licensing,
the University of Alaska and the Department of Labor and
Workforce Development to evaluate military training and
education and to assign civilian credit where appropriate
without compromising current licensing standards. The bill
would improve the probability of veterans finding jobs by
accelerating the licensing process and/or their educational
credits.
Representative Saddler noted that service members often
experienced delays and lost opportunities in qualifying for
licenses even with the applicable training and experience.
As of July 12th, 19 states enacted similar legislation and
more than 30 states were in the consideration process for
2013. Forced reductions, sequestration and budget cuts
would soon mean that more veterans would be looking for
work and he believed that they deserved every opportunity
to leverage their military experience and training into
academic credit, job qualification or vocational training
credit.
Co-Chair Stoltze commented on the Senate President's
veteran's caucus.
3:05:45 PM
MARK SANSOUCI, DEPARTMENT OF DEFENSE, TACOMA (via
teleconference), testified in support of the legislation.
He informed the committee of the target to help young
veterans who were separating and had received world-class
education. He noted that 12 hundred veterans returned
annually to Alaska creating approximately 1 million new
veterans between 2011 and 2016. He echoed testimony from
Representative Saddler regarding decisions made by other
states to enact similar legislation. He mentioned that the
Joint Service Transcript was unveiled in March 2013, which
was meant to ease the burden of translating services into a
generic method for transcript evaluation.
3:08:14 PM
PATRICIA SENNER, ALASKA NURSES ASSOCIATION, ANCHORAGE (via
teleconference), supported most aspects of the bill. She
spoke to some concerns related to the possibility that
veterans could assume automatic eligibility for registered
nursing licenses without furthering their education. Since
the issue was a national one, the National Council of State
Boards and Nursing was developing a document for use by the
boards of nursing to make the determination. She explained
that the roles and responsibilities of Registered Nurses
(RN) and Licensed Practical Nurses (LPN) were different
from those of medics, core men and airmen. All RNs serving
in the military were licensed as such before entering
service. Medics trained by the military were certified as
Emergency Medical Technicians. She mentioned programs that
would facilitate the transfer of designation for medics or
core men to LPNs.
3:11:20 PM
Representative Wilson asked whether the board ever used
Skype for board meetings. Ms. Senner was not on the board
and could not answer the question.
JEFF SELVEY, EXECUTIVE DIRECTOR, ALASKA WORKFORCE
INVESTMENT BOARD, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT (via teleconference), was available for
questions.
Co-Chair Stoltze CLOSED public testimony.
Co-Chair Stoltze expressed intent to confer with the
sponsor on the issue related to nursing. He did not want to
create a false impression that the bill would enable an
automatic entry into the field.
Representative Saddler noted that the nursing profession
was a special case. He stated that it was up to various
entities to judge whether the military credentials and
experience met the requirements. He was pleased that nurses
were evaluating the potential.
3:15:03 PM
Representative Thompson asked the sponsor to look at the
$137,000 fiscal note, requiring that 11 different boards
meet in person. He believed the amount seemed excessive in
light of the technology available. He thought
teleconference meetings should be possible to save on
travel costs.
Co-Chair Stoltze suggested a delayed effective date to
reduce the fiscal impact. He asked the Division of
Occupational Licensing for input on the issue.
Representative Gara looked at the 180-day period related to
licensing. He wondered if the 180-day period was long
enough to achieve the certificates or licenses needed.
Representative Saddler replied that 180 days was determined
to be a reasonable time unless unforeseen circumstances
arose, in which case an option to extend a second 180 days
existed.
Co-Chair Stoltze asked if an opportunity for bar
credentials might exist via the legislation. Representative
Saddler replied that the board could best address that
issue.
Representative Guttenberg requested clarification related
to the language on page 2, line 13 "held the current
license." Representative Saddler stated that he would
discuss the issue with the drafter.
3:18:25 PM
Representative Munoz asked for an identification of the
names of the boards, which were identified with acronyms in
the fiscal note. Representative Saddler replied that he
would provide the information to the committee in writing.
Representative Munoz appreciated the information.
HB 84 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:22:53 PM
The meeting was adjourned at 3:22 p.m.