Legislature(1993 - 1994)

05/09/1994 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ 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                                                               
  COMMITTEE CALENDAR                                                           
  SB 227:        "An Act relating to terminal rental                           
                 adjustment clauses for motor vehicles and                     
                 MOVED FROM COMMITTEE WITH DO PASS                             
  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                  
                 MOVED FROM COMMITTEE WITH DO PASS                             
  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                       
  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                   
  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                           
  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                              
  04/21/94      3838    (S)   ZERO FNS TO CS PUBLISHED (DPS,                   
  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                       
  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                   
  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                                
  04/22/94      3935    (S)   RECON TAKEN UP SAME DAY  UNAN                    
  04/22/94      3936    (S)   PASSED ON RECONSIDERATION Y17                    
  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                  
  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                                                                   
  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                       
  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                                
  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.                                  
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVE B. DAVIS.                                      
  The MOTION PASSED.                                                           
  SB 365am - GOVERNOR'S OMNIBUS BILL                                           
  CHAIRMAN VEZEY opened SB 365am for discussion.                               
  Number 100                                                                   
  (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                                                                   
  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                    
  CHAIRMAN VEZEY pointed out he was not aware of anything in                   
  SB 365am that gave any of the departments appropriation                      
  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                      
  CHAIRMAN VEZEY, hearing no objection, adopted the fiscal                     
  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                 
  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.                                              
                 G. DAVIS, SANDERS, OLBERG.                                    
  The MOTION PASSED,                                                           
  CHAIRMAN VEZEY, having no further business before the                        
  committee, adjourned the meeting at 10:28.                                   

Document Name Date/Time Subjects