Legislature(1993 - 1994)

02/23/1993 09:02 AM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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          SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                        
                        February 23, 1993                                      
                            9:02 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Senator Randy Phillips, Chairman                                             
  Senator Robin Taylor, Vice Chairman                                          
  Senator Rick Halford                                                         
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Senator Al Adams                                                             
  Senator Fred Zharoff                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SENATE BILL NO. 33                                                           
  "An  Act  relating to  grants  for local  emergency planning                 
  committees   and   emergency  response   organizations;  and                 
  providing for an effective date."                                            
                                                                               
  SENATE BILL NO. 35                                                           
  "An Act providing  immunity for  the Alaska State  Emergency                 
  Response   Commission,   the   local    emergency   planning                 
  committees, the Hazardous  Substance Spill Technology Review                 
  Council,  and  their  members  for   official  actions;  and                 
  providing for an effective date."                                            
                                                                               
  SENATE BILL NO. 88                                                           
  "An  Act   relating  to  grants   to  municipalities,  named                 
  recipients,  and  unincorporated  communities;  establishing                 
  capital project matching  grant programs for  municipalities                 
  and unincorporated  communities; establishing a  local share                 
  requirement  for capital  project grants  to municipalities,                 
  named  recipients,  and   unincorporated  communities;   and                 
  providing for an effective date."                                            
                                                                               
  SENATE BILL NO. 89                                                           
  "An Act making  appropriations for capital  project matching                 
  grant programs; and providing for an effective date."                        
                                                                               
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
  SB 33 - No previous action to record.                                        
                                                                               
  SB 35 - No previous action to record.                                        
                                                                               
  SB 88 - See Community & Regional Affairs minutes                             
          dated 2/16/93, 2/18/93..                                             
                                                                               
  SB 89 - See Community & Regional Affairs minutes                             
                                                                               
                                                                               
          dated 2/16/93, 2/18/93.                                              
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Annette Kreitzer, Staff to Senator Loren Leman                               
  State Capitol                                                                
  Juneau, AK 99801-1182                                                        
  POSITION STATEMENT:  Offered information on SB 33 &                          
                       SB 35                                                   
                                                                               
  Michael Conway, Director                                                     
  Division of Spill Prevention                                                 
  Department of Environmental Conservation                                     
  410 Willoughby Ave., Suite 105                                               
  Juneau, AK 99801-17795                                                       
  POSITION STATEMENT:  Testified in support of SB 33                           
                                                                               
  Jeff Morrison, Legislative Liaison                                           
  Administrative & Support Services Division                                   
  Department of Military & Veterans Affairs                                    
  P.O. Box 110900                                                              
  Juneau, AK 99811-0900                                                        
  POSITION STATEMENT:  Testified in support of SB 33                           
                                                                               
  Marie Sansone, Assistant Attorney General                                    
  Department of Law                                                            
  P.O. Box 110300                                                              
  Juneau, AK 99811-0300                                                        
  POSITION STATEMENT:  Present to answer questions on                          
                       SB 33 & SB 35                                           
                                                                               
  Jack Fargnoli, Senior Policy Analyst                                         
  Office of Management & Budget                                                
  P.O. Box 110020                                                              
  Juneau, AK 99811-0020                                                        
  POSITION STATEMENT:  Offered information on SB 88 &                          
                       SB 89                                                   
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-8, SIDE A                                                            
                                                                               
  Number 001                                                                   
                                                                               
  The Senate Community & Regional Affairs Committee was called                 
  to order by Chairman Randy Phillips at 9:02 a.m.                             
                                                                               
  CHAIRMAN RANDY PHILLIPS  introduced SB 33 (GRANTS  FOR LOCAL                 
  EMERGENCY PLANNING) as the first order of business.                          
                                                                               
  ANNETTE  KREITZER,  staff  to  Senator  Loren Leman,  stated                 
  Senator  Leman  introduced  SB 33  at  the  requests of  the                 
  Department of Environmental Conservation and the  Department                 
  of  Military  and  Veterans  Affairs.    She  explained  the                 
                                                                               
                                                                               
  legislation  clarifies the  granting authority  for  DEC and                 
  DMVA  for  what  they  are  trying   to  do  to  meet  their                 
  responsibilities  under the Super  Fund Act.   It will allow                 
  DEC  to  award  grants  to  form  local  emergency  planning                 
  committees and  will allow DMVA to award grants for disaster                 
  planning and response.                                                       
                                                                               
  Ms.  Kreitzer  directed  attention to  a  proposed committee                 
  substitute.  She  said after the original bill  was drafted,                 
  it  was brought  to the  sponsor's attention  that  the bill                 
  didn't do exactly what these departments needed.                             
                                                                               
  Number 055                                                                   
                                                                               
  MICHAEL CONWAY, Director of the Division of Spill Prevention                 
  and  Response,  Department  of  Environmental  Conservation,                 
  stated the  department's support  for the  legislation.   He                 
  said this will give them the opportunity to streamline their                 
  ability  to  do  business   with  local  emergency  planning                 
  committees (LEPCs).                                                          
                                                                               
  Number 067                                                                   
                                                                               
  JEFF MORRISON,  Legislative Liaison, Department  of Military                 
  and Veterans Affairs, voiced the department's support for SB
  33, saying  it expedites  their ability  to administratively                 
  handle the money dealing with LEPC's.  He directed attention                 
  to  the  draft  committee  substitute,  noting  one  of  the                 
  significant changes  is the  addition of  subsection (b)  in                 
  Section 1.  The original legislation just addressed training                 
  grants, and the new subsection allows the LEPC's to contract                 
  for developing plans as well as training.                                    
                                                                               
  Number 098                                                                   
                                                                               
  MARIE  SANSONE, Department of Law, stated she was present to                 
  answers questions from the committee.                                        
                                                                               
  Number 103                                                                   
                                                                               
  SENATOR TAYLOR moved that CSSB 33 (CRA) be adopted.  Hearing                 
  no objection,  it was so ordered.                                            
                                                                               
  SENATOR TAYLOR moved  that CSSSB 33  (CRA) be passed out  of                 
  committee  with  individual  recommendations.    Hearing  no                 
  objection, it was so ordered.                                                
                                                                               
  Number 122                                                                   
                                                                               
  CHAIRMAN  RANDY PHILLIPS  introduced  SB  35  (IMMUNITY  FOR                 
  ACTIONS TAKEN UNDER AS 46.13) as the next order of business.                 
                                                                               
  ANNETTE KREITZER,  staff to Senator  Loren Leman,  explained                 
  the  legislation  was  introduced  at  the  request  of  the                 
                                                                               
                                                                               
  Department  of  Environmental  Conservation.   It  addresses                 
  liability of volunteers and state officials who serve on the                 
  Alaska  State  Emergency   Response  Commission,  the  local                 
  emergency planning committees,  and the Hazardous  Substance                 
  Spill Technology Spill Council.                                              
                                                                               
  Ms. Krietzer noted that staff from the Department of Law was                 
  present to respond to questions.                                             
                                                                               
  Number 150                                                                   
                                                                               
  SENATOR TAYLOR voiced his concern that the legislation would                 
  be granting  a complete blanket of immunity  for all members                 
  participating  in the  review of  and approval of  the local                 
  emergency  plans, the  commission that  establishes  it, the                 
  members of the council, or even the local emergency planning                 
  committees.  At the same time,  we have strict liability for                 
  damage claims against  companies that  have ever existed  in                 
  Alaska law, and yet we are  giving the people who administer                 
  it a complete blanket of immunity, he said.                                  
                                                                               
  CHAIRMAN  PHILLIPS  stated SB  35  would be  held  until the                 
  Thursday meeting to  give the  committee the opportunity  to                 
  take a closer look at it.                                                    
  CHAIRMAN PHILLIPS brought SB 88 (CAPITAL PROJECT GRANTS) and                 
  SB 89 (APPROP:  CAPITAL PROJECT MATCHING GRANTS)  before the                 
  committee as the next order of business.                                     
                                                                               
  JACK FARGNOLI,  Senior Policy Analyst,  Office of Management                 
  and Budget, presented a brief recap  on the provisions of SB
  88, which is a high priority of Governor Hickel.                             
                                                                               
  The  Governor has proposed in the appropriation bill, SB 89,                 
  a  total  of $67  million  for  funding,  which,  under  the                 
  provisions of the  appropriation bill, would be  split $65.3                 
  million   for   municipalities    and   $1.7   million   for                 
  unincorporated communities.   Under both of  those programs,                 
  there would  be matching  grant provisions  that are  broken                 
  down by the  sizes  of  the communities involved, such  that                 
  each time a  grant or  part of  a grant was  drawn from  the                 
  communities  accounts that will  be created, the communities                 
  would be  responsible for  putting up  a match.   The  match                 
  could be in dollars or it could be in-kind.                                  
                                                                               
  Mr.  Fargnoli  said the  primary  intent in  introducing the                 
  legislation is to help encourage  and maximize the influence                 
  of the  local communities  themselves in the  identification                 
  and prioritization of  their projects.   The Governor  would                 
  propose those projects in  their same priority order  in his                 
  capital budget  each year, subject  to the  total amount  of                 
  appropriations available,  and then transmit  those projects                 
                                                                               
                                                                               
  as  part  of his  capital  budget  to  the  legislature  for                 
  consideration.  A  separate provision  of the bill  provides                 
  that if he  for any reason  departs from the priority  order                 
  that is identified by local  communities themselves, then he                 
  would explain  in writing to the legislature his reasons for                 
  doing so.                                                                    
                                                                               
  Mr. Fargnoli reiterated that it is the Governor's sense that                 
  this is important  both for the  process is creates and  the                 
  attention is gives to local priorities.                                      
                                                                               
  Mr. Fargnoli related  that Shelby  Stastny, Director of  the                 
  Office of Management  and Budget, was  unable to attend  the                 
  hearing because he was in a meeting with Governor Hickel.                    
                                                                               
  Number 270                                                                   
                                                                               
  SENATOR  TAYLOR referred  to page  11,  lines 3  through 11,                 
  which relates to  the local share  percentage.  He said  the                 
  population in  Wrangell is  very similar  to Barrow  and the                 
  North Slope Borough.  One  mill in Wrangell generates  about                 
  $75,000 total, whereas one mill in the North Slope generates                 
  several  million.   He said  the percentile is  based merely                 
  upon population and  totally disregards the tax  base of the                 
  community and its ability to pay.  He then suggested putting                 
  this on a mill equivalency basis.  JACK FARGNOLI said in the                 
  earlier  versions  of the  bill that  were  in the  last two                 
  sessions, there was  a rather elaborate  set of formulas  to                 
  deal with the  fiscal capacity of the  different communities                 
  just  to capture those  kinds of differences.   The decision                 
  was made this year that the desirability of simplifying  the                 
  bill  for purposes  of  ease of  understanding  and ease  of                 
  administration would outweigh those concerns.   The bill was                 
  changed to a  flat three-tiered structure, grouping  them by                 
  population, knowing  that in some cases there would be those                 
  kind of discrepancies.  He added that Senator Taylor's point                 
  was well taken and he had no reason to disagree with it.                     
                                                                               
  Number 325                                                                   
                                                                               
  SENATOR HALFORD commented that  any time we try to  classify                 
  by   some   arbitrary   standard,  we   run   the   risk  of                 
  discriminating unfairly.   He asked  if they had  considered                 
  using  the same  match  percentage across  the state.   JACK                 
  FARGNOLI acknowledged that they had, and their conversations                 
  indicated pretty strongly that then  you wouldn't be dealing                 
  simply with  the polarities  between the  extreme cases,  so                 
  they departed from that rather early.   SENATOR HALFORD said                 
  if he were  to support the bill,  he thinks equity is  a far                 
  better way to  simplify it.   He suggested it should  simply                 
  say that the match initially is 10 percent  and the match at                 
  the second tier is 20 percent, and leave the provisions that                 
  do provide some kind of cost  of living differential and who                 
  is  eligible  for  a  match  in  the bill.    JACK  FARGNOLI                 
                                                                               
                                                                               
  responded that he thought they would be willing to make that                 
  change.                                                                      
                                                                               
  Number 345                                                                   
                                                                               
  CHAIRMAN RANDY  PHILLIPS  stated  that  he  was  considering                 
  offering an amendment that  would limit the projects  for $1                 
  million to a  community.   It limits that  community or  the                 
  non-organized  area, or the organization that is doing it to                 
  10 percent  for administrative  costs.   JACK FARGNOLI  said                 
  that they wouldn't have a problem with that change.                          
                                                                               
  Number 360                                                                   
                                                                               
  SENATOR TAYLOR  suggested that  within the percentiles  that                 
  there be some significant readjustments and that it be based                 
  on a  mill equivalency basis,  or perhaps  a combination  of                 
  population and mill  equivalency.  He  also said he was  not                 
  willing to accept  the Department of Community  and Regional                 
  Affairs' formula.                                                            
                                                                               
  SENATOR HALFORD said  that if  we're trying to  find a  real                 
  formula that reflects ability to pay, then it has to be mill                 
  rate per capita.                                                             
                                                                               
  Number 387                                                                   
                                                                               
  CHAIRMAN RANDY PHILLIPS stated SB 88 and SB 89 would be back                 
  before the committee at the Thursday, February 25 meeting.                   
                                                                               
  There  being  no   further  business  to  come   before  the                 
  committee, the meeting was adjourned at 9:30 a.m.                            

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