Legislature(1995 - 1996)
02/14/1995 09:05 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
February 14, 1995
TAPES
SFC-95, #4, Side 1 (000-395)
CALL TO ORDER
Senator Rick Halford, Co-chair, convened the meeting at
approximately 9:05 a.m.
PRESENT
In addition to Co-chairs Halford and Frank, Senators
Phillips, Rieger, and Zharoff were present. Senator Sharp
arrived as the meeting was near conclusion. Senator Donley
did not attend.
Also Attending: Senator Lyda Green, and Wil Condon,
Commissioner, Department of Revenue.
Participating Via Teleconference: Stan Houley, Executive
Director of the Iditarod, Joanne Potts, Race Director for
the Iditarod
SUMMARY INFORMATION
SB 66 - AN ACT RELATING TO SLED DOG RACE
CLASSICS
Discussion was had with Senator Lyda
Green. Testimony in support given by
Stan Houley and Joann Potts of Matsu.
The bill was replaced with CSSB 66
(FIN) and entitled: "An Act
relating to an Iditarod Sweepstakes sled dog
race classic" and REPORTED OUT of committee
with individual recommendation and a zero
fiscal note from the from the Department of
Revenue.
CONFIRMATION
HEARING - Testimony by Wil Condon, Commissioner,
Department of Revenue. A standard
letter of confirmation was signed by
committee members and forwarded to
Senate President Drue Pearce.
SB-66 - AN ACT RELATING TO SLED DOG RACE CLASSICS
Co-chair Halford invited Senator Lyda Green, sponsor of the
bill, to address the committee in support of her
legislation. She noted that the Iditarod sled dog race is an
Alaskan tradition which is now in jeopardy due to lack of
sponsors and associated funding. The purpose of the
proposed bill is to establish a sled dog classic to generate
income to enable the Iditarod to help itself. The proposed
Iditarod sweepstakes is intended to provide needed financial
assistance for the race.
Senator Zharoff questioned Senator Green's intention as to
the year this would become effective, how the prizes would
be awarded, and is there a percentage breakdown? Senator
Green responded that it is planned to begin in 1996. In
response to a question regarding the awarding of prizes,
she deferred the question to Stan Houley, Executive Director
of the Iditarod.
Co-chair Halford stated that the Committee Report changed
the title of the bill to "An Act relating to an Iditarod
Sweepstakes sled dog race classic". He pointed out that
legislation on the Iditarod failed last year due to a series
of amendments regarding the permanent fund check-off.
Co-chair Halford turned the attention of the committee to
the teleconference speakers. Stan Houley, Executive
Director of the Iditarod, testified that the primary goal in
seeking passage of the bill is to put a mechanism in place
which would allow the Iditarod Trail Committee to further
diversify its funding base. The passage of this bill would
allow for capture of substantial revenues which would, in
turn, allow the organization to continue to stage the race.
Alaska has a need to be weaned from the seductive "outside"
dollar that has been so vulnerable to attack by special
interest groups. This bill will resolve this problem.
Joann Potts, Race Director for Iditarod, spoke to the
committee in support of passage of the bill, echoing
Senator Green and Stan Houley's comments.
Senator Zharoff asked Mr. Houley how the proceeds are split
between the winner and the committee? Mr. Houley replied
that a percentage has not yet been determined. There will
be close association with the Department of Revenue and
Department of Gaming to ensure that the guidelines are
followed. The first step is to see passage of this
legislation and commit to working closely with the
department in putting a sweepstakes in place that is
attractive to out-of-state visitors and Alaskans.
Co-chair Halford stated that Senator Phillips has an
interest in a potential amendment to the bill regarding a
name change to incorporate the "arctic winter games". He
suggested that the amendment broadens the title, which could
endanger the bill in the House. Co-chair Halford expressed
his concerns in passing the bill, and suggested that Senator
Phillips introduce a new bill with a new title if he wanted
a title change. He said he would do all he could to expedite
it. Senator Phillips yielded to Co-chair Halford.
Co-chair Frank asked Senator Green if there had been thought
surrounding the potential growth in popularity of the arctic
winter games? He asked about the possibility of a race
participant regulating their speed? Senator Green did not
foresee any problem in this area.
Co-chair Halford called for additional testimony on the
bill. None was forthcoming. Co-chair Frank MOVED to adopt
CSSB 66 (FIN) with individual recommendations . No objection
having been raised, CSSB 66 (FIN) was REPORTED OUT of
committee with a zero fiscal note from the Department of
Revenue. Co-chairs Halford and Frank along with Senator
Rieger signed the committee report with a "do pass"
recommendation. Senators Phillips, Zharoff and Sharp signed
"no recommendation".
CONFIRMATION HEARING: WIL CONDON, COMMISSIONER,
DEPARTMENT OF REVENUE
Co-chair Halford invited Wil Condon to the table for the
confirmation hearing. Mr. Condon addressed the committee by
pledging to do his best if confirmed. Co-chair Halford
stated that he did not know of anyone more qualified, with
the experience of the taxing authority, than Mr. Condon.
Senator Rieger stated that in addition to running the
Department of Revenue, one of Mr. Condon's key
responsibilities is the automatic seat on the Board of
Trustees of the Alaska Permanent Fund. He questioned what
level of direction would be received from the Governor's
office on how to vote, or make proposals to the Board of
Trustees versus his own initiative in Permanent Fund
matters?
Mr. Condon replied that he has only had one meeting since
becoming the Commissioner designate. That meeting dealt
with the question of selecting an executive director. He
anticipates that the Governor's office will be concerned
that the Board is doing the best job possible, not that of
directing matters that come before it.
Senator Rieger inquired as to that first meeting which dealt
with the selection of the executive director. Specifically,
he asked Mr. Condon if he received direction from the
Governor's office regarding a nominee he should select? Mr.
Condon replied that he contacted the Governor's office to
determine if there were recommendations on who should be
selected as executive director. In response to his inquiry,
his instructions were to select the best person. Mr.Condon
stated that he initiated the inquiry and didn't believe he
was instructed in any way to select a particular person.
Senator Rieger asked if the preference expressed by the
Governor was Byron Mallott? Mr. Condon answered, "That is
correct."
Senator Rieger expressed concern regarding the
interpretation of statutes as they exist now, which puts a
fiduciary responsibility on the trustees to act in the best
interest of the fund. He asked Mr. Condon, would he ignore
any type of suggestion from the executive branch and go in
another direction if it was in the best interest of the
fund? Mr. Condon affirmed that in his view, he is legally
bound as a fiduciary to make a judgement in the best
interest of the fund.
Senator Rieger asked if the trustees are clearly fiduciaries
of the fund? Mr. Condon responded that in his judgement,
yes.
Co-chair Frank asked if Mr. Condon was the lead council in
some of the oil and gas cases. Mr. Condon answered
affirmatively. Co-chair Frank asked what the repercussions
would be in his leaving that post for the post of
Commissioner of Department of Revenue? Mr. Condon responded
that his lead for the North Slope litigation, has almost
concluded, with a trial scheduled for the remaining issues
to begin in April.
Mr. Condon stated that from the Department of Revenue's
view, much has been accomplished, but there is still much to
be done. A year ago there were outstanding assessments of
roughly $5.5 billion, which is now down to about $2 billion.
The objective is to lower the figure to zero, with a set of
regulations in place to prevent high outstanding assessments
from happening again. Mr. Condon stressed his interest in
his participation. He believes it is important to the state
in creating a strong business climate, so that Alaska
continues to have a vital oil and gas industry.
Co-chair Halford asked if there were further questions.
There being no further questions, Senator Phillips motioned
to send the standard correspondence to the Senate.
(Senator Sharp arrived at the meeting.)
Co-chair Halford announced that they were requested to be in
the President's office. The other bills will be held for
Wednesday, February 15th.
ADJOURNMENT
The meeting was adjourned at approximately 9:35 a.m.
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