03/05/2002 03:22 PM House MLV
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON MILITARY AND
VETERANS' AFFAIRS
March 5, 2002
3:22 p.m.
MEMBERS PRESENT
Representative Mike Chenault, Chair
Representative Lisa Murkowski
Representative Joe Green
Representative Joe Hayes
MEMBERS ABSENT
Representative Beverly Masek
Representative Pete Kott
Representative Sharon Cissna
COMMITTEE CALENDAR
HOUSE BILL NO. 371
"An Act establishing the Alaska veterans' memorial endowment
fund and providing for credits against certain taxes for
contributions to that fund; relating to other tax credits for
certain contributions; and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 324
"An Act making supplemental and other appropriations for
homeland security; and providing for an effective date."
- HEARD AND HELD
PREVIOUS ACTION
BILL: HB 371
SHORT TITLE:ALASKA VETERANS' MEM.ENDOWMENT FUND
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR
Jrn-Date Jrn-Page Action
02/01/02 2119 (H) READ THE FIRST TIME -
REFERRALS
02/01/02 2119 (H) MLV, STA, FIN
02/01/02 2119 (H) FN1: INDETERMINATE(CED)
02/01/02 2119 (H) FN2: INDETERMINATE(REV)
02/01/02 2119 (H) FN3: (MVA)
02/01/02 2119 (H) GOVERNOR'S TRANSMITTAL LETTER
03/05/02 (H) MLV AT 3:00 PM CAPITOL 124
BILL: HB 324
SHORT TITLE:HOMELAND SECURITY APPROPRIATIONS
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR
Jrn-Date Jrn-Page Action
01/16/02 1972 (H) READ THE FIRST TIME -
REFERRALS
01/16/02 1972 (H) MLV, STA, FIN
01/16/02 1972 (H) GOVERNOR'S TRANSMITTAL LETTER
01/16/02 1972 (H) SPREADSHEET BY DEPT. COST
02/12/02 (H) MLV AT 3:00 PM CAPITOL 124
02/12/02 (H) Heard & Held
02/12/02 (H) MINUTE(MLV)
02/19/02 (H) MLV AT 3:00 PM CAPITOL 124
02/19/02 (H) Heard & Held
02/19/02 (H) MINUTE(MLV)
02/21/02 (H) MLV AT 3:00 PM CAPITOL 124
02/21/02 (H) Heard & Held
02/21/02 (H) MINUTE(MLV)
02/26/02 (H) MLV AT 3:00 PM CAPITOL 124
02/26/02 (H) Heard & Held
02/26/02 (H) MINUTE(MLV)
02/28/02 (H) MLV AT 3:00 PM CAPITOL 124
02/28/02 (H) -- Meeting Canceled --
03/05/02 (H) MLV AT 3:00 PM CAPITOL 124
WITNESS REGISTER
CAROL CARROLL, Director
Central Office
Administrative Services Division
Department of Military & Veterans' Affairs
400 Willoughby Avenue, Suite 500
Juneau, Alaska 99811
POSITION STATEMENT: Presented HB 371.
PAT CAROTHERS, Chair
Alaska Veterans Advisory Council (AVAC)
P.O. Box 32926
Juneau, Alaska 99803-2926
POSITION STATEMENT: Answered questions and expressed support
for HB 371.
CHUCK HARLAMERT, Juneau Section Chief
Central Office
Tax Division
Department of Revenue
PO Box 110420
Juneau, Alaska 99811-0420
POSITION STATEMENT: Testified on the tax implications of
HB 371.
JOHN JENKS, Chief Investment Officer
Treasury Division
Department of Revenue
PO Box 110405
Juneau, Alaska 99811-0405
POSITION STATEMENT: Answered questions on HB 371.
MIKE CONWAY, Director
Division of Statewide Public Service
Department of Environmental Conservation
410 Willoughby Avenue, Suite 303
Juneau, Alaska 99801-1795
POSITION STATEMENT: Testified on HB 324 on behalf of the
department.
ACTION NARRATIVE
TAPE 02-14, SIDE A
Number 0001
CHAIR MIKE CHENAULT called the House Special Committee on
Military and Veterans' Affairs meeting to order at 3:22 p.m.
Representatives Chenault, Murkowski, Green, and Hayes were
present at the call to order.
HB 371-ALASKA VETERANS' MEM.ENDOWMENT FUND
CHAIR CHENAULT announced the first order of business, HOUSE BILL
NO. 371, "An Act establishing the Alaska veterans' memorial
endowment fund and providing for credits against certain taxes
for contributions to that fund; relating to other tax credits
for certain contributions; and providing for an effective date."
Number 0167
CAROL CARROLL, Director, Central Office, Administrative Services
Division, Department of Military & Veterans' Affairs, informed
the committee that the bill would indeed establish the Alaska
veterans' memorial endowment fund. The purpose is to have
income from that fund maintain the monuments and memorials to
veterans and the military around the state. She noted that some
memorials are in pretty bad shape; in the past, the veterans
themselves have volunteered their time to keep up the memorials.
She pointed out that already $125,000 has been collected from
members of the Alaskan community.
Number 0246
MS. CARROLL explained that the fiscal note is for an additional
$125,000 for the state "match" to get some seed money into the
endowment fund. She reported that businesses would be able to
get a tax credit for any donations given to the fund, but there
are some limitations on that. She referred to the sectional
analysis which describes what the tax credit is and indicated
that someone from the Department of Revenue could answer
questions on the tax credit portion of the bill.
Number 0303
MS. CARROLL informed members that Section 4 is the description
of the fund that would be managed by the Department of Revenue.
The Department of Revenue would determine the income off that
and would be allocated to the Department of Military & Veterans'
Affairs by the legislature. From that point on, the department
would work with veterans groups to grant money to them for the
maintenance or construction of military monuments and memorials.
Number 0367
REPRESENTATIVE MURKOWSKI said she understands from talking with
[Major General Oates, Adjutant General/Commissioner, Department
of Military and Veterans' Affairs] and some of the veterans that
there is no state money that currently goes towards maintenance
of any of the memorials. The memorials have only been
maintained through volunteer efforts. She asked how many
veterans' memorials there are in the state.
Number 0458
PAT CAROTHERS, Chair, Alaska Veterans Advisory Council (AVAC),
replied that there are 78 right now. He said there will be one
more with promised funds.
Number 0516
MR. CAROTHERS reported that in his experience with administering
the Archie Van Winkle memorial fund, there was $2,000 left over
from the construction and building of that particular memorial.
He reported that the veterans have repaired it, professionally
cleaned it, and put in benches and trees, and that's all been
done with the interest of the $2,000. He told members there is
no question in his mind that with $250,000, up to 90 different
memorials could be supported. He noted that there are different
kinds of memorials. Several are memorial highways - DOT/PF
[Department of Transportation & Public Facilities] takes care of
them anyway - and some are a plaque on a bridge.
Number 0606
MR. CAROTHERS stated that the largest expenditures will be
replacement of the memorials. This bill will afford the
opportunity to maintain these memorials in a dignified manner,
and one the veterans richly deserve. He acknowledged that the
veterans who are commemorated did much to honor this country;
they bled and died for this country and for this state. He
affirmed that other than Pearl Harbor, the only medal of honor
awarded for action in the United States was in Adak, Alaska, PFC
[Private First Class] Martinez. He offered that what is being
asked for is a means in which to honorably recognize those
heroic efforts that these memorials recognize. He said:
Places of remembrance need to be maintained. For
[Alaskan] veterans who took care of Americans, it's
high time we took care of them. Now the public has,
through private contributions, ... put their money up
- $125,000. We're asking for $125,000 in matching
funds, ... and we will live off that interest, which
will come out to about $12,000 a year. ... I'm
completely satisfied that we can maintain these
memorials in an honorable way by using these funds in
that manner.
MR. CAROTHERS introduced Joe [Sadlier], a World War II veteran,
who was one of those who brought LST-325 [Landing Ship, Tank]
across the Atlantic Ocean from Greece to Mississippi. He is a
native of Juneau and now lives in Ketchikan.
Number 0830
CHAIR CHENAULT asked Mr. Carothers if he felt the maintenance on
these memorials could be done on this money.
MR. CAROTHERS replied that he is thoroughly convinced of that,
especially with his experience on the [Archie Van Winkle]
memorial in town. He noted there are other memorials in
[Juneau] that haven't been touched. The USS [United States
Ship] Juneau [memorial] brass plaque, with the names of all who
perished in that, hasn't been shined or cleaned since [it was
put in]. He commented that there is no committee behind that
one, and that's what can happen. He said he thinks that it
would be dishonoring [those veterans] if this [bill] doesn't go
through. He urged the committee to pass on [HB 371].
Number 0990
CHAIR CHENAULT asked about the tax implications for corporations
and what may or may not be deductible or allowable under this
current bill. He referred to the paragraph in the sectional
analysis that talks about Sections 2, 6, 8, 10, 12, 14, and 16,
the parallel sections dealing with oil and gas production taxes
and pipeline transportation property taxes, and he wondered how
that would work.
Number 1070
CHUCK HARLAMERT, Juneau Section Chief, Central Office, Tax
Division, Department of Revenue, explained that the credit
allows a combined credit, no matter what tax it is applied
against, up to $150,000 a calendar year. Similar to other
current education tax credits, taxpayers can choose which tax
liability they are liable for to apply it against. The taxes
involved are insurance premium taxes, corporate income tax, oil
and gas severance tax, and oil and gas property taxes, mining
license tax, fisheries business tax, and the fisheries landing
tax.
Number 1140
MR. HARLAMERT explained that they would get a credit against the
state tax liability and a net deduction on the federal return
for their contribution, less the amount of the state tax credit.
Number 1162
REPRESENTATIVE MURKOWSKI referred to Section 17 and said she is
trying to understand how the amounts are available for
appropriation. She asked if the 5-percent payout is for the
succeeding years or just in the first year.
Number 1260
JOHN JENKS, Chief Investment Officer, Treasury Division,
Department of Revenue, said that the investment features of this
bill set out instruction for the department to invest this
endowment to earn 5 percent after inflation over time. If
inflation is 3 percent, he said the endowment would be trying to
earn 8 percent. There is explicit instruction to inflation
proof this endowment so that ten years from now, Mr. Carothers
will have the same economic power to maintain those monuments
that he has today. The transitional language says it will build
up to that three years. The first fiscal year starts out with
the monthly market values and then it builds to that three-year
rolling average. He explained that the three-year average is in
there to provide some "smoothing." Markets go up and down, and
over time this will smooth things out so that the veterans will
have a fairly stable expectation of how much resources they'll
have year to year by having a stable payout over time - that is
5 percent of the average market value of the endowment.
REPRESENTATIVE MURKOWSKI said her question was whether or not
the 5 percent of the market value is what it is capped at.
MR. JENKS said yes.
Number 1360
REPRESENTATIVE MURKOWSKI asked what he anticipated would be
available to Mr. Carothers and his group on an annual basis.
MR. JENKS replied that approximately $12,500 in current
purchasing power each year would be available. A great market
could certainly grow it, or if people donate to the fund and the
fund gets bigger because of that, then that money would increase
as a result of the subsequent donations. For the original
$250,000, he indicated that he doesn't anticipate that growing
to some large amount.
Number 1433
CHAIR CHENAULT asked if this was modeled after the PFD
[permanent fund dividend].
MR. JENKS replied that this legislation is really very typical
of current endowment language used by individuals or other
states. He agreed that it's thought to be the best way to
provide for the most efficient investment and stable payout for
these endowments.
Number 1470
REPRESENTATIVE MURKOWSKI asked how many other endowments the
Department of Revenue manages.
MR. JENKS answered that this would be the sixth specific
endowment managed by the department. He explained that this
language is the model language. Something similar to this
language was used for the power cost equalization fund, which is
thought of as an endowment also. In reply to a question by
Representative Murkowski, he answered that because there are
these endowments and the other funds managed by the state, there
is a real scale of efficiency that allows the department to
invest these very efficiently, yet still have the liquidity to
provide on an annual basis for the payout, so it works very
well.
Number 1565
REPRESENTATIVE GREEN asked if the other five [endowments]
averaged in the 8-plus percent [interest] in the last two years.
MR. JENKS answered that they have done fairly well, and several
of the other endowments don't have this language. He noted that
Senator Therriault has sponsored some legislation that would
change the "rules of the road" as they're set out in statute for
investment of the children's trust and public school trust to
make them as efficient as this. Over time, he said the
department thinks this endowment, absent that bill becoming law,
would actually achieve superior long-term returns because of the
flexibility incorporated here.
Number 1625
REPRESENTATIVE MURKOWSKI asked if the people who have already
donated to the fund will be able to avail themselves of the tax
credits that are being talked about.
MR. HARLAMERT replied that no, the contributions were already
made. In order to qualify for the credit, the contributors
would have to be made in a year in which the bill was effective.
He responded to an earlier question of how much could possibly
accumulate. He explained that in the Alaska education tax
credit program, the taxpayer only gets 50 percent of the first
$100,000 as a credit, but 100 percent of the second $100,000, so
people tend to contribute the entire $200,000 for the full
150,000 credit. At least 90 percent of all the tax credits they
get in terms of dollars are "maxed out" at the $150,000 level.
It's a very tight-knit group of taxpayers who tend to have
strong charitable giving programs in their own right. He
implied it was likely that the fund, if it grows, will grow in
substantial steps, $150,000 at a "pop."
CHAIR CHENAULT commented that this is set up more for bigger
contributors than for people like himself.
Number 1744
CHAIR CHENAULT announced that HB 371 would be held over.
HB 324-HOMELAND SECURITY APPROPRIATIONS
[Contains testimony on HB 51]
Number 1774
CHAIR CHENAULT announced the final order of business, HOUSE BILL
NO. 324, "An Act making supplemental and other appropriations
for homeland security; and providing for an effective date."
CHAIR CHENAULT informed participants that the committee would
consider Items 23-28 [of the document "Terrorism Disaster Policy
Cabinet: Cost Estimates for Highest Priority Recommendation,"
dated 1/14/02], which is for the Department of Environmental
Conservation.
Number 1802
MIKE CONWAY, Director, Division of Statewide Public Service,
Department of Environmental Conservation (DEC), informed members
that he'd provided a copy of a summary sheet for the
Environmental Health Laboratory. That is an item not listed for
funding from HB 324; it's listed there as a critical component
of the homeland security net. He said he believes that the
Department of Health & Social Services has other laboratory
items under its items. The Environmental Health Laboratory,
however, is sitting in HB 51 and is before both finance
committees as a bonding measure based upon its standalone
merits. He explained that there's a breakdown, so the committee
can see the functions of the laboratory.
MR. CONWAY said [the laboratory] has a peacetime mission that
also carries over in the event of a weapons of mass destruction
attack, in which the department would have the capability to
look at the food and water sources and know if there had been
any contamination. Since September 11 [2001 terrorist attacks
on the East Coast], water contamination is not just limited to
those kinds of attacks. He informed the members there's a
pending case against somebody who has threatened the Anchorage
water supply system going through criminal proceedings
currently. He also reported there was a case in The Dalles,
Oregon several years ago in which 751 people were made sick. A
group was trying to affect a local election and contaminated a
salad bar so people wouldn't make it out for the election.
MR. CONWAY noted that other peacetime missions the department
has been involved in include testing food when tourists on buses
have gotten sick, testing shellfish for different diseases, and
performing dairy inspections that allows Alaska's milk to be
sold commercially to the military, for instance.
Number 1967
CHAIR CHENAULT referred to Item 25 ["Increase DEC emergency
alert status to 24 hours per day with six additional response
corps staff"] and asked for a rundown on it.
MR. CONWAY explained that the six positions and 24-hour response
capability is not associated with the laboratory, but would be
part of DEC's Division of Spill Prevention and Response to
augment the existing staff and capabilities for response to
hazardous materials incidences and spills. These six people
would work with communities around the state, the DEC, and other
agencies in preparedness for a capability to respond to weapons
of mass destruction incidences. Currently, he explained, there
is a peacetime function for oil and substances spills. The
resources presently available are dedicated to doing that at the
current level of activities. He indicated that new expertise
and new equipment are needed to address the idea of weapons of
mass destruction.
Number 2108
REPRESENTATIVE GREEN asked about the $100,000 for fiscal year
2003.
MR. CONWAY replied that the $100,000 is a one-time cost for
equipping and training the whole group. The other amounts are
for the personal services for the staff. The first $250,000 is
for the remaining fiscal year. If the supplemental is approved,
the $600,000 is the ongoing annual amount.
REPRESENTATIVE GREEN said that's $100,000 per person.
MR. CONWAY answered that $100,000 per responder is typical when
looking at the salaries, equipment, and training.
Number 2160
MR. CONWAY replied to Representative Green's question that [the
staff] are environmental specialists. He explained that
$100,000 is the current rate now for oil spill responders and
hazardous chemical responders. To maintain the capability to
operate the equipment, there is continual training required for
different levels of "HAZMAT" [hazardous materials] response, and
that's the going rate.
Number 2190
REPRESENTATIVE GREEN asked what they do in between threats.
MR. CONWAY answered that they are responding to spills right
now. The group being asked for [in Item 25] are not doing
anything with weapons of mass destruction. This is done in
anticipation of those attacks. The existing group of responders
are responding to spills. He reported that there are about
2,500 spills reported a year; within that, there is a ranking
and an assessment process on the spills responded to.
MR. CONWAY clarified that the people being asked for in Item 25
will be dedicated to weapons of mass destruction responses.
REPRESENTATIVE GREEN asked if these people will be sitting
around waiting for something to happen.
MR. CONWAY answered that they will continually be operating with
training communities, writing up the plans, preparing drilling
exercises, and doing all of the activities that a fire
department does while waiting for a fire to happen.
Number 2282
MR. CONWAY referred to Item 74 under the Department of Military
& Veterans' Affairs ["Hazardous Materials Response Teams:
Provide training, trucks, and [equipment] for 2 new Level A
HAZMAT teams in Valdez and in Juneau to service Southeast;
Provide Alaska-specific detection, identification and safety
equipment for 103d CST (WMD) [Civilian Support Team for Weapons
of Mass Destruction]; and provide WMD advanced level training
for the Fairbanks HAZMAT team"] and said that would make four
teams that require considerable training, exercising, and
planning, which are typical emergency preparedness activities.
He indicated that they are not going to be sitting around
waiting for weapons of mass destruction incidences to happen;
they are going to be preparing. They will work with
municipalities, federal agencies, the civil support team under
the National Guard, and the whole network of responders in the
event of an attack.
Number 2345
REPRESENTATIVE GREEN asked how they would fit in with the other
agencies when there is a problem. He wondered if there was any
duplication.
MR. CONWAY replied that nobody duplicates services in a
response; they all come together through the incident command
system. They would be assigned specific duties as part of a
joint incident command system. He explained that it would be
the same as for a North Slope spill. There are not standalone
capabilities for the state; they would fit in with local,
federal, and other state agency responders.
REPRESENTATIVE GREEN asked if they would be "geographically
spread" or would they be stationed in one area.
MR. CONWAY said that the assignments of figuring out where
they'll be hasn't been decided yet. He offered to get back to
him on that.
Number 2421
REPRESENTATIVE GREEN wondered how the number six came up.
MR. CONWAY explained that the state emergency coordination
center activates during the time of a response and will require
a 24-hour watch capability, so [the department] was looking at
the capability to augment the other four response teams
throughout the state and have two positions in the state
emergency coordination center at Fort Richardson.
Number 2490
MR. CONWAY referred to Item 26, Decontamination Equipment for
People Exposed to Hazardous Materials, and Item 27 ["Pre-
position decontamination foam and trailers in six cities to
serve regions throughout the state and obtain six [fly-away]
decontamination sets"]. He told members that both of these
items are related to responding to and assisting citizens who
are exposed to weapons of mass destruction, either biological or
chemical agents. The targets for a lot of these attacks can be
several thousand people, and there's no capability existing in
the state to get the decontamination equipment to them. He
explained that there is a two-way approach to this: 1) In major
areas of population, Fairbanks, Anchorage, and Juneau, there
would be a fixed capability there, to rapidly decontaminate
people who are exposed in the event, and 2) a deployment
capability located where the fixed ones are in which there would
be trailers and "airliftable" things to get to a remote
community.
Number 2569
CHAIR CHENAULT asked Mr. Conway to explain what decontamination
foam is.
MR. CONWAY answered that it is a chemical foam used to spray on
equipment and in buildings to attack the biological agent
attached to things, neutralize, and destroy it.
Number 2640
CHAIR CHENAULT surmised that the six fly-a-way decontamination
sets would include all the materials needed in case of some type
of biological attack.
MR. CONWAY indicated yes, it would include the equipment. The
equipment packages would basically be large capacity hot water
heaters, inflatable shelters, tents, heaters, and mass
decontamination privacy kits. He noted these things were for
decontamination of the people affected. In answer to a
question, he told the Chair that the suits and that sort of
thing come under the other items for the responders.
Number 2722
REPRESENTATIVE GREEN asked what the person in Anchorage used for
threatening the drinking water.
MR. CONWAY said he had limited knowledge of it, but there was a
threat by somebody who was angry about something and told some
people he was going to poison the Anchorage drinking water
system. He was arrested and the case is in process.
MR. CONWAY responded to a question from Representative Green and
said the assessments would look at the inroads that somebody
would try to use who wanted to contaminate the system and
further, to be able to detect [the contaminant].
Number 2774
REPRESENTATIVE GREEN asked if there is any ongoing testing now.
MR. CONWAY replied that the larger municipalities have ongoing
increased security and are testing.
CHAIR CHENAULT asked if the assessments would be done for most
of the public drinking water systems.
Number 2859
MR. CONWAY explained that the large public drinking water
systems are being looked at, and they are attempting to get
federal funds to do it. He indicated that until the assessments
are done, the department won't know what to buy. He indicated
that federal money is expected for upgrading the security and
detection systems on drinking water systems.
Number 2892
REPRESENTATIVE MURKOWSKI asked how what the [Anchorage Water &
Wastewater Utility] does to ensure that its drinking water is
safe on a daily basis would be any different from a
vulnerability assessment.
MR. CONWAY answered that [the department] has worked with the
municipalities and said it would try to get the money to do
that, and it will be passed out to them. The vulnerability
assessments would be done under the direction of the
municipalities. In the current structure, the local
municipalities are responsible for their systems. The DEC
provides some oversight, but the municipalities don't report to
DEC; they're not subservient, and DEC doesn't direct them on how
to do that.
Number 2972
REPRESENTATIVE MURKOWSKI asked if the municipalities are already
doing it, why does the legislature need to give them money. She
wondered if there is a different component when the
vulnerability is assessed than what is done to ensure that the
drinking water is safe.
MR. CONWAY reminded her that what they have been talking about
today is for weapons of mass destruction.
TAPE 02-14, SIDE B
Number 2968
MR. CONWAY said [the municipalities] haven't been addressing
things for weapons of mass destruction.
REPRESENTATIVE MURKOWSKI said they must do a daily testing to
make sure there aren't weird things in it. She offered that if
there were some type of chemical agent, she thought it would be
picked up.
MR. CONWAY agreed that they are testing for things they expect.
He said, "We don't know what the biological agents would be or
the chemicals that they might use. We need to find that out and
then be able to see if we would be able to detect it."
[HB 324 was held over.]
ADJOURNMENT
Number 2795
There being no further business before the committee, the House
Special Committee on Military and Veterans' Affairs meeting was
adjourned at 4:13 p.m.
| Document Name | Date/Time | Subjects |
|---|