Legislature(1993 - 1994)
04/22/1993 09:10 AM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE
April 22, 1993
9:10 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chairman
Senator Loren Leman
MEMBERS ABSENT
Senator Robin Taylor, Vice Chairman
Senator Al Adams
Senator Fred Zharoff
ALSO PRESENT
Senator Suzanne Little
COMMITTEE CALENDAR
HOUSE BILL NO. 180 am
"An Act relating to the residential housing inspection
requirements of the Alaska Housing Finance Corporation."
HOUSE BILL NO. 89
"An Act revising the law on borough assembly apportionment
as recommended by the revisor of statutes; and providing for
an effective date."
SENATE BILL NO. 78
"An Act relating to deadlines for action on funding of
public education; and providing for an effective date."
SENATE BILL NO. 191
"An Act relating to municipal property tax limitations; and
providing for an effective date."
SENATE BILL NO. 164
"An Act relating to municipal incorporation,
reclassification, and dissolution."
PREVIOUS SENATE COMMITTEE ACTION
HB 180 - No previous action to record.
HB 89 - No previous action to record.
SB 78 - No previous action to record.
SB 191 - No previous action to record.
SB 164 - See Community & Regional Affairs minutes
dated 3/30/93, 4/13/93, 4/20/93.
WITNESS REGISTER
Dave Harding, Staff to Representative Eileen MacLean
State Capitol
Juneau, AK 9999801-1182
POSITION STATEMENT: Offered information on HB 180
Senator Suzanne Little
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Voiced concerns on HB 180
Offered information on SB 78
Pete Crandall
National Bank of Alaska
Juneau, AK
POSITION STATEMENT: Testified in support of HB 180
Dave Dierdorff, Revisor of Statutes
Division of Legal Services
Legislative Affairs Agency
130 Seward St., Suite 409
Juneau, AK 99801
POSITION STATEMENT: Offered information on HB 89
Claudia Douglas, President
NEA-Alaska
105 Municipal Way
Juneau, AK 99801
POSITION STATEMENT: Testified in support of SB 78
Duane Guiley, Director
School Finance
Department of Education
801 W. 10th St., Suite 200
Juneau, AK 99801
POSITION STATEMENT: Offered information on SB 78
Carol Carrol, Staff to Senator Jay Kerttula
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SB 191
Kent Swisher, Executive Director
Alaska Municipal League
217 2nd St.
Juneau, AK 99801
POSITION STATEMENT: Opposed to SB 191
Dan Bockhorst, Staff to Alaska Local
Boundary Commission
Department of Community & Regional Affairs
333 4th Ave., Suite 220
Anchorage, AK 99501-2341
POSITION STATEMENT: Offered information on SB 164
ACTION NARRATIVE
TAPE 93-24, SIDE A
Number 001
The Senate Community & Regional Affairs Committee was called
to order by Chairman Randy Phillips at 9:10 a.m. Due to the
lack of a quorum, he stated only testimony would be taken on
the legislation before the committee. He then introduced HB
180 am (AHFC HOUSING INSPECTION REQUIREMENTS) as the first
order of business.
Number 025
DAVID HARDING, staff to Representative Eileen MacLean, said
the legislation is a response to an unintended problem that
happened when the Department Community & Regional Affairs'
rural housing loan program was merged into the Alaska
Housing Finance Corporation last year. When that happened,
that loan program became subject to housing inspection
requirements that were never intended to apply to those
rural loans.
The inspection requirements include at least four or more
site visits by a certified inspector. In the more remote
areas of the state that can be a real problem because of the
lack of inspectors, and there never will be enough
inspectors because there is not enough building going on in
those areas.
HB 180 am proposes to add some flexibility to allow the
inspection program to stay in place for those loans, but to
allow some flexibility in the requirements by broadening the
pool of people who are eligible to do the inspections. The
legislation also authorizes AHFC to accept building methods
or materials that may not meet state building codes if the
corporation is satisfied that the code variation does not
sacrifice health or safety.
Number 070
SENATOR SUZANNE LITTLE said she has had duties as a building
official in Soldotna, and they struggled very hard and are
very much in favor of having International Conference of
Building Officials (ICBO) certification for inspectors,
especially involving AHFC funds.
Senator Little stated her concern that the bill is a little
broad, and she suggested that narrowing it down to benefit
those communities that really have problems would be the
best way to handle it.
Senator Little asked if the problem was mostly in bush
communities. DAVID HARDING responded that it is and that is
what they are trying to deal with in the legislation. There
is a definition of "rural" in the bill which essentially
gets it off the road system. The added expense is for
flying people in to do an inspection which is above and
beyond the cost of the inspection.
Senator Little also expressed concern with a provision in
the hill which allows an inspection by video tape.
Number 165
SENATOR RANDY PHILLIPS asked Mr. Harding to look over an
amendment in the members' packets which addresses a concern
expressed by the Kenai Peninsula Builders' Association
relating to eliminating ICBO inspectors.
Number 175
PETE CRANDALL, National Bank of Alaska, stated NBA finds
the rural housing program to be one of the most effective
housing tools is has, and that having some flexibility is
critical for them in increasing housing in rural areas.
Mr. Crandall related that wherever there is a potential to
use inspectors or the qualified people, they are going to
use them, but it is not feasible to fly four people out to a
very rural village at a tremendous cost where one house may
be under construction.
SENATOR RANDY PHILLIPS closed the public hearing on HB 180
am
Number 190
SENATOR RANDY PHILLIPS introduced HB 89 (BOROUGH ASSEMBLY
APPORTIONMENT) as the next order of business.
DAVE DIERDORFF, Revisor of Statutes, Division of Legal
Services, Legislative Affairs Agency, explained that HB 89
is a rewrite, for clarity only, of a seldom used part of the
law. It is a technical rewrite of laws relating to
apportionment and reapportionment. He said it does not
change the substance of the statute, but makes it readable.
There being no other witnesses present to testify on HB 89,
SENATOR RANDY PHILLIPS closed the public hearing.
Number 240
SENATOR RANDY PHILLIPS brought SB 78 (DEADLINES FOR FUNDING
EDUCATION) before the committee as the next order of
business.
SENATOR SUZANNE LITTLE, prime sponsor of SB 78, noted the
legislation has the support of NEA-Alaska and the
Association of Alaska School Boards. It will require early
funding of education by the legislature. Having served on a
borough assembly, she has seen school boards struggle
putting forward four or five budgets based on what might
happen in Juneau, which she believes is a waste of time,
energy and money.
Senator Little said having the legislation in place would
make a big difference in the way that we plan for our school
expenditures, and it would put rationality back into the
process. She urged the committee's support for SB 78.
Number 265
SENATOR LEMAN commented that he was in support of early
funding of schools and would like to see early funding
applied to the rest of the budget process.
Number 293
CLAUDIA DOUGLAS, President, NEA-Alaska, voiced NEA's
appreciation for the introduction of the bill, and their
support for it.
Ms. Douglas said it always causes so much confusion when the
funding piece doesn't finalize itself until the very last
days of school, and it causes school districts to have lay-
off language and give people letters of termination.
Number 305
DUANE GUILEY, Director, School Finance, Department of
Education, stated the department's support for the early
appropriation of funds in support of the K-12 public school
foundation program, the pupil transportation program and all
the related K-12 support programs mentioned in SB 78.
Mr. Guiley said the department has no objection to the delay
from April 1 through April 30 for submittal of the school
district budget to the borough assembly. They believe the
delay may, in fact, improve the budget submissions and
reduce the administrative burden associated with the
preparation of multiple drafts of the operating budget.
Mr. Guiley further said that early funding does not increase
the cost of the programs, nor does it impact the
administration of the program, but it does provide critical
financial information to the school districts at the time
when they are making their staffing decisions and making
their educational programing decisions.
Number 345
SENATOR RANDY PHILLIPS closed the public hearing on SB 78.
Number 350
SENATOR RANDY PHILLIPS brought SB 191 (MUNICIPAL PROPERTY
TAX LIMITATIONS) before the committee.
CAROL CARROL, staff to Senator Jay Kerttula, explained the
legislation would clarify law for general law municipalities
that would allow them to put a tax limitation on the ballot
by initiative. If an initiative had passed and there was a
tax cap, then the only way that it could be removed would be
by referendum.
Ms. Carrol said the legislation would become effective
January 1, 1994, the beginning of the new calendar year.
Number 390
TAM COOK, Director, Division of Legal Services, Legislative
Affairs Agency, added that from time to time, people are
concerned that if there were a tax limitation, it would
somehow adversely affect bonding. This particular language
is drafted so that the language on bonding which now exists
in the statute and provides that any limit on taxes cannot
be imposed to affect payback of bonds will apply to this
limit too, assuming that the voters of a particular
municipality chose to impose a limit. She assured the
committee that bonds would remain protected.
Number 400
KEN SWISHER, Executive Director, Alaska Municipal League,
voiced opposition to SB 191. Doing something by initiative
creates the opportunity to reduce municipal tax authority
through an action directly by the public. The League
believes that it creates a vulnerability in terms of the
muncipality's operating budget. The proper remedy for
disputes about taxation is through the electoral process in
terms of selecting people who are in office.
Mr. Swisher suggested that it would be more acceptable if
the bill were to be amended in such a way that the
initiative was not a possibility.
Number 425
SENATOR LEMAN disagreed with Mr. Swisher's comments and said
he thinks having the ability to have a "taxpayer revolt" is
one of the beauties of the our system.
SENATOR RANDY PHILLIPS closed the public hearing on SB 191.
Number 440
SENATOR RANDY PHILLIPS brought SB 164 (MUNICIPAL
INCORP/RECLASSIFICATION/DISSOLUTION) before the committee as
the final order of business.
DAN BOCKHORST, serving as staff to the Alaska Local Boundary
Commission and employed by the Department of Community &
Regional Affairs, testified from Anchorage via the
teleconference network.
Mr. Bockhorst said he has reviewed the most recent committee
substitute and finds the bill to be accommodating of the
issues, concerns and policy matters relating to the
incorporation, reclassification, dissolution, etc. He added
that there were three minor technical points which had been
conveyed to the chairman in writing.
Number 456
SENATOR LEMAN asked if those three technical points were
included in the draft committee substitute which was before
the committee. DAN BOCKHORST responded that he does think
those three points are in the April 9 draft.
SENATOR RANDY PHILLIPS closed the public hearing on SB 164.
and stated that because the committee was unable to
establish a quorum, any action on the calendared bills would
be held over until the next meeting of the committee. He
then adjourned the meeting at 9:51 a.m.
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