Legislature(1993 - 1994)
05/09/1994 08:00 AM STA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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.