Legislature(1993 - 1994)
05/09/1994 08:00 AM House STA
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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 STATE AFFAIRS STANDING COMMITTEE
May 9, 1994
8:00 a.m.
MEMBERS PRESENT
Representative Al Vezey, Chairman
Representative Pete Kott, Vice-Chairman
Representative Bettye Davis
Representative Gary Davis
Representative Harley Olberg
Representative Jerry Sanders
Representative Fran Ulmer
MEMBERS ABSENT
None
COMMITTEE CALENDAR
SB 227: "An Act relating to terminal rental
adjustment clauses for motor vehicles and
trailers."
MOVED FROM COMMITTEE WITH DO PASS
RECOMMENDATIONS
SB 365: "An Act amending, and repealing laws
providing for state agency functions and
services related to transportation and
capital improvement planning, workers'
compensation, motor vehicles and motor
vehicle insurance, medical care for
prisoners, state building leases, and review
and approval of water and sewer systems, for
the purpose of reducing state government
expenditures; and providing for an effective
date."
MOVED FROM COMMITTEE WITH DO PASS
RECOMMENDATIONS
WITNESS REGISTER
CAROL CARROL, Staff
Senator Jay Kerttula
Alaska State Capitol, Room 427
Juneau, AK 99811
Phone: 465-6600
POSITION STATEMENT: Addressed SB 227
SHELBY STASTNY, Director
Office of Management & Budget
P.O. Box 110020
Juneau, AK 99811-0020
Phone: 465-3568
POSITION STATEMENT: Addressed SB 365am
CLYDE STOLTZFUS, Special Assistant
Department of Transportation & Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
Phone: 465-3906
POSITION STATEMENT: Answered questions on SB 365am
PREVIOUS ACTION
BILL: SB 227
SHORT TITLE: MOTOR VEHICLE RENTAL TERMS
SPONSOR(S): SENATOR(S) KERTTULA
JRN-DATE JRN-PG ACTION
01/03/94 2453 (S) PREFILE RELEASED 1/3/94
01/10/94 2453 (S) READ THE FIRST TIME/REFERRAL(S)
01/10/94 2453 (S) STA, L&C, TRA
02/16/94 (S) STA AT 9:00 AM BUTROVICH RM 205
02/16/94 (S) MINUTE(STA)
02/18/94 2882 (S) STA RPT 1DP 2NR
02/18/94 2883 (S) ZERO FISCAL NOTE PUBLISHED
(S.STA)
03/10/94 (S) L&C AT 01:30 PM FAHRENKAMP
ROOM 203
03/10/94 (S) MINUTE(L&C)
03/14/94 3184 (S) L&C RPT 1DP 4NR
03/14/94 3184 (S) ZERO FN PUBLISHED (DPS)
03/14/94 3184 (S) PREVIOUS ZERO FN (S.STA)
03/24/94 (S) TRA AT 03:30 PM BELTZ ROOM 211
03/31/94 (S) TRA AT 03:30 PM BELTZ ROOM 211
03/31/94 (S) MINUTE(TRA)
04/05/94 3444 (S) TRA RPT 3DP
04/05/94 3444 (S) PREVIOUS ZERO FNS (DPS, S.STA)
04/07/94 (S) RLS AT 09:00 AM FAHRENKAMP
ROOM 203
04/07/94 (S) MINUTE(RLS)
04/11/94 3556 (S) RULES TO CALENDAR 4/11/94
04/11/94 3559 (S) READ THE SECOND TIME
04/11/94 3559 (S) ADVANCED TO THIRD READING UNAN
CONSENT
04/11/94 3559 (S) READ THE THIRD TIME SB 227
04/11/94 3560 (S) PASSED Y20 N-
04/11/94 3567 (S) TRANSMITTED TO (H)
04/12/94 3367 (H) READ THE FIRST TIME/REFERRAL(S)
04/12/94 3367 (H) TRANSPORTATION, STATE AFFAIRS
04/27/94 3804 (H) TRA REFERRAL WAIVED
04/27/94 3805 (H) REFERRED TO STATE AFFAIRS
05/09/94 (H) STA AT 08:00 AM CAPITOL 102
BILL: SB 365
SHORT TITLE: GOVERNOR'S OMNIBUS BILL
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
03/24/94 3345 (S) READ THE FIRST TIME/REFERRAL(S)
03/24/94 3345 (S) STA, FIN
03/24/94 3345 (S) FISCAL NOTES PUBLISHED
(DPS,ADM,DEC,REV)
03/24/94 3345 (S) ZERO FNS PUBLISHED
03/24/94 3345 (S) (DPS, ADM, GOV, DCRA, DOT)
03/24/94 3346 (S) GOVERNOR'S TRANSMITTAL LETTER
03/30/94 (S) STA AT 9:00 AM BUTROVICH RM 205
03/30/94 (S) MINUTE(STA)
04/06/94 (S) STA AT 9:00 AM BUTROVICH RM 205
04/06/94 (S) MINUTE(STA)
04/08/94 (S) STA AT 9:00 AM BUTROVICH RM 205
04/08/94 (S) MINUTE(STA)
04/08/94 (S) STA AT 9:00 AM BUTROVICH RM 205
04/11/94 3553 (S) STA RPT CS 3NR 1DNP SAME TITLE
04/11/94 3554 (S) PREVIOUS FNS APPLY (DPS, ADM,
DEC, REV)
04/11/94 3554 (S) PREVIOUS ZERO FNS APPLY
04/11/94 3554 (S) (DPS, ADM, GOV, DCRA, DOT)
04/14/94 (S) FIN AT 09:00 AM SENATE FIN 518
04/20/94 (S) RLS AT 06:45 PM FAHRENKAMP
ROOM 203
04/21/94 (S) FIN AT 10:00 AM SENATE FIN 518
04/21/94 (S) RLS AT 02:15 PM FAHRENKAMP
ROOM 203
04/21/94 3837 (S) FIN RPT CS 4DP 1NR 2DNP
NEW TITLE
04/21/94 3838 (S) FNS TO CS PUBLISHED
(S.FIN/DPS-2)
04/21/94 3838 (S) ZERO FNS TO CS PUBLISHED (DPS,
ADM,
04/21/94 3838 (S) DOT,DEC,LABOR,CORR,LAW,GOV)
04/21/94 3838 (S) PREVIOUS FN APPLIES (DPS)
04/22/94 3869 (S) RLS RPT 2CAL 2NR 4/22/94
04/22/94 3873 (S) READ THE SECOND TIME
04/22/94 3874 (S) MOTION TO ADOPT FIN CS
04/22/94 3874 (S) FAILED TO ADOPT FIN CS Y10
N10
04/22/94 3874 (S) MOVED TO BOTTOM OF CALENDAR
04/22/94 3916 (S) AM NO 1 NOT OFFERED
04/22/94 3916 (S) AM NO 3 MOVED BY PEARCE
04/22/94 3930 (S) AM NO 3 ADOPTED UNAN CONSENT
04/22/94 3930 (S) AM NO 2A MOVED BY DONLEY
04/22/94 3931 (S) AM NO 2A ADOPTED Y11 N9
04/22/94 3931 (S) RESCIND ACTION IN ADPTG AM 2A
Y11 N9
04/22/94 3932 (S) AM NO 2A FAILED Y9 N11
04/22/94 3932 (S) AM NO 4 MOVED BY RIEGER
04/22/94 3934 (S) AM NO 4 FAILED Y9 N11
04/22/94 3934 (S) ADVANCED TO THIRD READING UNAN
CONSENT
04/22/94 3935 (S) READ THE THIRD TIME SB 365 AM
04/22/94 3935 (S) PASSED Y17 N3
04/22/94 3935 (S) EFFECTIVE DATE SAME AS PASSAGE
04/22/94 3935 (S) Taylor NOTICE OF
RECONSIDERATION
04/22/94 3935 (S) RECON TAKEN UP SAME DAY UNAN
CONSENT
04/22/94 3936 (S) PASSED ON RECONSIDERATION Y17
N3
04/22/94 3936 (S) EFFECTIVE DATE SAME AS PASSAGE
04/22/94 3940 (S) TRANSMITTED TO (H)
04/27/94 3745 (H) READ THE FIRST TIME/REFERRAL(S)
04/27/94 3746 (H) STATE AFFAIRS, FINANCE
ACTION NARRATIVE
TAPE 94-58, SIDE A
Number 000
CHAIRMAN AL VEZEY called the meeting to order at 10:32 a.m.
The meeting had been postponed from 8 a.m. to 10:30 a.m. due
to the late session the night before. Members present were
REPRESENTATIVES SANDERS, G. DAVIS and OLBERG. A quorum was
present.
SB 227 - MOTOR VEHICLE RENTAL TERMINALS
CHAIRMAN VEZEY opened SB 227 for discussion.
(REPRESENTATIVE KOTT joined the meeting at 10:33 a.m.)
Number 017
CAROL CARROL, STAFF, SENATOR JAY KERTTULA, PRIME SPONSOR,
addressed SB 227. She stated SB 227 puts in statute a
clause saying terminal rental adjustment clauses and
commercial leases, in and of themselves, do not create a
security interest in assets for the lessee.
CHAIRMAN VEZEY inquired if "terminal" meant end of lease, or
a place to dock a truck.
MS. CARROL said this bill would clarify in law that just
because these kinds of clauses are in a lease, doesn't
necessarily create a security interest for the lessee. It's
important in cases of bankruptcy, in particular, because
sometimes courts decide that they do, thereby tying up the
assets of the lessor. SB 227 makes this clarification.
CHAIRMAN VEZEY clarified courts have determined these types
of lease arrangements constitute a security interest.
MS. CARROL responded, in some cases, yes.
CHAIRMAN VEZEY observed the lease holder's interests are
being treated as a debtor in the total bankruptcy, or as an
unsecured debtor.
MS. CARROL replied yes.
REPRESENTATIVE HARLEY OLBERG commented the problem is that
in some cases it has been interpreted to be a security
interest.
MS. CARROL added on the part of the lessee.
CHAIRMAN VEZEY questioned how a security interest compared
to a secured interest.
(REPRESENTATIVE ULMER joined the meeting at 10:35 a.m.)
Number 065
REPRESENTATIVE OLBERG replied he felt they were essentially
the same thing.
REPRESENTATIVE OLBERG moved to pass SB 227 from committee
with accompanying fiscal notes and individual
recommendations.
CHAIRMAN VEZEY clarified the zero fiscal notes were from the
Department of Transportation and Public Facilities, and from
Department of Public Safety.
CHAIRMAN VEZEY called for a roll call vote.
IN FAVOR: REPRESENTATIVES VEZEY, KOTT, ULMER, G. DAVIS,
SANDERS, OLBERG.
ABSENT: REPRESENTATIVE B. DAVIS.
The MOTION PASSED.
SB 365am - GOVERNOR'S OMNIBUS BILL
CHAIRMAN VEZEY opened SB 365am for discussion.
Number 100
SHELBY STASTNY, DIRECTOR, OFFICE OF MANAGEMENT & BUDGET
(OMB), addressed SB 365am. He stated OMB had asked the
departments to point out things in their statutes which were
old, out-dated, or could be done away with, in order to make
things more efficient and operations easier. From this
request, early in the session, four bills were produced, SB
365am being one of them. He explained SB 365am did not have
any additional revenues in it. He noted there was a
sectional analysis available.
CHAIRMAN VEZEY mentioned he had already been through SB
365am and did not have any questions.
REPRESENTATIVE ULMER referred to the letter by the Alaska
Citizens Transportation Coalition (ACTC), whereby their
principal concern was with sections that give additional
authority to the Department of Transportation and Public
Facilities. She quoted, "It makes no sense for the
legislature to give a single administrator a blank check for
approximately $200 million a year in federal transportation
funds." They're concerned about the extent to which the
legislature is giving out its appropriation power to the
Commissioner of Transportation and Public Facilites. She
asked for comment.
Number 145
CLYDE STOLTZFUS, SPECIAL ASSISTANT, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, answered the
committees questions on SB 365am. He believed the ACTC
letter was drafted prior to the amendments made in Senate
Finance, and he believed the section they were referring to
has now been removed. In specific, the repeal of Section
44.42.050(d).
CHAIRMAN VEZEY pointed out he was not aware of anything in
SB 365am that gave any of the departments appropriation
authority.
Number 174
REPRESENTATIVE GARY DAVIS moved to move SB 365am from
committee with individual recommendations and accompanying
fiscal notes.
CHAIRMAN VEZEY stated before the committee entertained a
motion to move SB 365am from committee, it first needed to
adopt some fiscal notes. He noted there were eight zero
fiscal notes to be adopted: Department of Law; Department
of Public Safety, Division of Motor Vehicles; Department of
Administration, Leasing & Facilities; Office of the
Governor, Management & Budget; Department of Transportation
and Public Facilities; Department of Environmental
Conservation, Environmental Quality; Department of Labor;
and the Department of Corrections.
Number 200
REPRESENTATIVE G. DAVIS moved to adopt the eight fiscal
notes.
CHAIRMAN VEZEY, hearing no objection, adopted the fiscal
notes.
REPRESENTATIVE G. DAVIS interjected he had another question
to ask MR. STASTNY. He stated had been informed there was
some controversy over the "preferred provider" section.
CHAIRMAN VEZEY stated he was not aware of a "preferred
provider" clause in SB 365am.
MR. STASTNY commented it was certainly not in SB 365am.
CHAIRMAN VEZEY recollected REPRESENTATIVE G. DAVIS was
referring to an amendment to an omnibus insurance bill that
is in the process.
REPRESENTATIVE ULMER mentioned she had another question to
ask MR. STOLTZFUS. She commented it is true that the
appropriation section was removed, but she questioned why
Department of Transportation wanted two other changes. One
is changing the six-year capital improvement program to
three years, page 12, line 9. The other is changing on page
13, Section 29, so that the cost estimates for project
funding are no longer required under that section. She
believed there used to be a cost estimation requirement in
statute, with regard to priorities.
MR. STOLTZFUS asked, because he did not have a copy of the
bill before him, for clarification of what statute was being
amended.
REPRESENTATIVE ULMER responded AS 37.07.040, subsection (1).
MR. STOLTZFUS answered the six-year plan DOT is required to
report is actually in Section 1 and it remains a six-year
plan. He believed the discrepancy REPRESENTATIVE ULMER
noticed referred to OMB, who is required to do a four-year
plan. The plan would be the current fiscal year plus three
fiscal years succeeding.
REPRESENTATIVE ULMER clarified DOT's six-year plan remains
the same.
MR. STOLTZFUS answered correct, under the Senate amendments.
REPRESENTATIVE ULMER inquired about AS 37.07.060, which does
not require cost estimates for the projects. Is there a
particular reason for this. She believed DOT usually
includes cost estimates when it lists the projects.
MR. STOLTZFUS answered correct. The requirement is removed
is that section because in the six-year plan "it is really a
guess as to what those costs are." The legislature sees
this in the capital budget it receives from DOT.
REPRESENTATIVE ULMER clarified the numbers are not
sufficiently defined.
MR. STOLTZFUS answered correct.
Number 289
CHAIRMAN VEZEY reiterated the motion before the committee is
to adopt SB 365am with the eight attached zero fiscal notes.
He called for a roll call vote.
IN FAVOR: REPRESENTATIVES VEZEY, KOTT, ULMER, B. DAVIS,
G. DAVIS, SANDERS, OLBERG.
The MOTION PASSED,
ADJOURNMENT
CHAIRMAN VEZEY, having no further business before the
committee, adjourned the meeting at 10:28.
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