Legislature(1995 - 1996)
05/02/1996 11:30 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
May 2, 1996
11:30 a.m.
TAPES
SFC-96, #107-A, Side 1 (000-575)
SFC-96, #107-A, Side 2 (575-075)
CALL TO ORDER
Senator Rick Halford, Co-chairman, convened the meeting at
approximately 11:30 a.m.
PRESENT
All committee members (Co-chairmen Halford and Frank, and
Senators
Donley, Phillips, Rieger, Sharp, and Zharoff) were present.
ALSO ATTENDING: Representative Joe Green; Representative
Jerry Mackie; Dan Lasota, Fairbanks Assemblymen; Nancy
Slagle, Director, Division of Budget Review, Office of
Management and Budget; Sam Kito, III, Legislative
Liaison/Special Assistant, Dept. of Transportation and
Public Facilities; Dwight Perkins, Special Assistant, Dept.
of Labor; Janice Adair, Director, Division of Environmental
Health, Dept. of Environmental Conservation; Paul Grossi,
Director, Division of Workers' Compensation, Dept. of Labor;
Juanita Hensley, Chief, Driver Services, Dept. of Public
Safety; Eleanor Roser, aide to Representative Barnes;
Melinda Gruening, aide to Representative Green; Terri
Tibbett, aide to Representative Grussendorf; and aides to
committee members and other members of the legislature.
SUMMARY INFORMATION
SB 216 - OMNIBUS STATE FEES & COST ASSESSMENTS
Discussion was had with Janice Adair, Paul Grossi,
Dwight Perkins, Nancy Slagle, and Sam Kito, III.
A draft CSSB 216 (Fin) (version "K," dated 5/1/96)
was distributed for review by members and adopted
as the mark-up vehicle. An amendment by Co-
chairman Frank was adopted. CSSB 216 (Fin) was
REPORTED OUT of committee with a $22.0 fiscal note
from Dept. of Environmental Conservation
(Statewide Pub.Services), zero notes from Dept. of
Military & Veterans Affairs, and Office of the
Governor (OMB) as well as the following revenue
notes:
Dept. of Revenue $6,000.0
Dept. of Labor 384.5
Dept. of Education 30.0
Dept. of Natural Resources 10.0
Office of the Governor (Human Rights) 5.1
Dept. of Commerce & Economic Development 841.3
Dept. of Environmental Conservation (Lab.) 100.0
[The foregoing action was subsequently RESCINDED,
and the bill was held for further review.]
HB 57 - LICENSING REQUIREMENTS FOR DRIVERS
Discussion was had with Representative Green,
Juanita Hensley, and Melinda Gruening. An
amendment lowering the age from 25 to 22 was
adopted. The bill was then held in committee
pending return of Co-chairman Halford who had
temporarily left the meeting.
HB 110 - CONFIDENTIALITY OF MOTOR VEHICLE RECORDS
Discussion was had with Juanita Hensley and
Eleanor Roser. CSSSHB 110 (STA)am was REPORTED
OUT of committee with a $3.9 fiscal note from the
Dept. of Public Safety showing a revenue reduction
of ($50.0).
HB 361 - CAPITAL PROJECT MATCHING GRANT FOR INDIAN
RESERVATION
Testimony was presented by Representative Mackie.
No action was taken on the bill.
HB 386 - CRUELTY TO ANIMALS
Testimony was presented by Terri Tibbett and Dan
Lasota. A draft SCS CSHB 386 (version "O,"
Luckhaupt, 5/2/96) was adopted. The bill was
subsequently held in committee.
SENATE BILL NO. 216
An Act relating to fees or assessment of costs for
certain services provided by state government,
including hearing costs related to the real estate
surety fund; fees for authorization to operate a
postsecondary educational institution or for an agent's
permit to perform services for a postsecondary
educational institution; administrative fees for
self-insurers in workers' compensation; business
license fees; fees for activities related to coastal
zone management, training relating to emergency
management response, regulation of pesticides and
broadcast chemicals, and subdivision plans for sewage
waste disposal or treatment; and providing for an
effective date.
Co-chairman Halford advised that in order to avoid the
accumulation of amendments that occurred for SB 215, a draft
CSSB 216 (Fin) (version "K", dated 5/1/96) was prepared for
review by members. He further referenced a sectional
analysis of the bill. The Chairman then called for a motion
for adoption of the draft as a mark-up vehicle. Senator
Randy Phillips so MOVED. No objection having been raised,
CSSB 216 (Fin) was ADOPTED.
Co-chairman Halford explained that new substantive
provisions include:
1. Language that allows municipalities to charge
prisoners for the cost of incarceration of
municipal prisoners.
2. A gasohol repealer.
The Co-chairman next referenced Amendment No. 3, proposed by
the Dept. of Environmental Conservation. JANICE ADAIR,
Director, Division of Environmental Health, Dept. of
Environmental Conservation, came before committee. She
explained that the amendment would allow the department to
charge a fee for review of subdivision plans to ensure they
comply with waste water laws under Title 46. Authority is
presently vested in the department unless adopted by a local
government. Anchorage and Valdez have elected to take over
this function. The department is thus not involved in those
reviews. The department reviews subdivision plans to ensure
proper disposal of sewage in areas where there is no
community system. Language within Amendment No. 3 was in
the original bill but taken out by Senate Labor and
Commence, in part because the department had general funds
to support the activity. Those funds have since been cut.
Without fee authority, the department will no longer be able
to review subdivision plans.
Co-chairman Halford asked if subdivision plan review by the
Dept. of Environmental Conservation was required by other
law. Ms. Adair responded, "No, Sir. It's under Title 46
only."
Senator Sharp asked if most of the plans are designed by
registered engineers. Ms. Adair answered affirmatively.
She explained that engineers lay out subdivisions based on
Title 29 requirements. However, there is no requirement
(within that title) that engineers ensure that sewage can be
properly disposed of. That requirement is within the Dept.
of Environmental Conservation, and DEC has been relied upon
to provide that part of the review.
In response to a further question regarding fees, Ms. Adair
said the fiscal note was based on a flat rate based on the
size of the subdivision. Senator Sharp attested to
complaints from constituents who have hired registered
engineers to do work that must be submitted to DEC when the
department does not have a registered engineer reviewing the
work. Ms. Adair said the department is required to have a
registered engineer review the work.
Senator Sharp expressed concern over a flat fee. He
attested to complaints from those with professionally
designed subdivisions who are delayed by department review
and reworking of subdivisions that have not had the benefit
of professional assistance. Ms. Adair acknowledged having
heard similar complaints on a number of department programs.
She concurred in need to deal with the problem.
In response to a question from Senator Rieger, Ms. Adair
said that authority to review subdivisions is in AS
46.03.090. Amendment No. 3 would simply provide authority
to change fees for review. Co-chairman Halford voiced his
understanding that authority to review does not constitute a
requirement to review. He suggested that there is no
enforcement mechanism. Ms. Adair concurred. She added that
the chances of a subdivision having failing, on-lot septic
systems rises when the department has not done the review.
The department has assisted developers modify subdivision
layout or size of the lots to preclude problems. If that is
not done, the purchaser ends up "getting stuck with the bill
to develop a sewage system that can be accommodated on their
lot." Review is thus a preventive exercise.
Co-chairman Halford said he had a problem with small
subdivisions of large lots. He suggested that review should
not be necessary for subdivisions of less than four lots
where none of the lots are smaller than several acres. Ms.
Adair concurred that subdivisions cited by the Co-chairman
are generally not a problem. The department tends not to
review larger subdivisions due to lack of staff.
Discussion followed concerning requirements embodied within
HB 80.
Additional discussion followed regarding division of large
parcels (10 acres was used as an example) into two halves
and whether or not that should come under DEC review. When
Senator Rieger cited an example of 10 acres posed for
subdivision into one-acre lots, Ms. Adair said it would
probably be subject to DEC review if on-lot sewage disposal
is involved. The department would review the lots to ensure
that they are developable. If the subdivision would be
hooking up to a community sewage system, the situation is
different. If a lot must accommodate sewage disposal, it
will probably also have to accommodate drinking water.
Further discussion of developability followed.
Co-chairman Halford voiced need to exempt subdivisions of
less than four lots where no lot is less than one acre
before he could support the language within Amendment No. 3.
The fee will give the department ability to set, drive, and
run the program. The program must have bounds. While there
is no direct enforcement mechanism in terms of recording,
there is still a general requirement. Ms. Adair asked that
she be given an opportunity to contact department engineers
to determine whether one acre would be an appropriate
cutoff. Senator Sharp expressed support for comments by the
Co-chairman. He voiced reluctance to provided ability to
charge fees for a program for which "I get nothing but
complaints that DEC shouldn't even be in the business,"
particularly when professional engineers do the design work.
Discussion followed among members regarding costs associated
with redesign and delay of an entire season due to failure
to gain timely approval of designs. Co-chairman Halford
directed that Ms. Adair work with department engineers to
return appropriate amendment language to committee.
PAUL GROSSI, Director, Division of Workers' Compensation,
Dept. of Labor, next came before committee. He referenced
Section 4 and advised that it would allow the department to
assess a fee upon self-insurers, similar to that charged
employers who have to purchase a workers' compensation
insurance policy. The fee would be 4% on the previous
year's claim experience. That would be similar to the 2.7
percent premium tax assessed against employers who purchase
workers' compensation insurance. Co-chairman Halford asked
if there was significant opposition. Mr. Grossi responded
negatively. He acknowledged that no one wants to pay more.
However, those who are self-insured view this as a
significant service in that they can save money by
exercising control over their own claims.
DWIGHT PERKINS, Special Assistant, Dept. of Labor, next
spoke before committee. He referenced an updated fiscal
note and explained that it reflects removal of
municipalities, school districts, and regional education
attendance areas per action taken in Senate Labor and
Commerce.
Co-chairman Halford referenced CSSB 216 (Fin) and explained
that Amendment No. 4 was included with exception of the
requirement that the municipality charge a fee no less than
the state fee. Amendment No. 5, adding an application fee
on the exploration incentive credit, was also included.
Amendment No. 3 containing the DEC fee for subdivision
review remains the only outstanding amendment.
Senator Zharoff inquired regarding marine and harbor
facility fees within Section 7 (Page 3) of the bill. NANCY
SLAGLE, Director, Division of Budget Review, Office of
Management and Budget, explained that language would allow
municipalities to charge fees to cover operation and repair
work at state harbor and marine facilities. Municipalities
have not previously been able to charge sufficient amounts
to maintain the facilities. SAM KITO, III, Special
Assistant/Legislative Liaison, Dept. of Transportation and
Public Facilities, advised of 100 marine and harbor
facilities owned by the state. There are contracts for
management and operation of approximately 84 facilities.
The proposed bill would allow the department additional
authority to contract and require that a community establish
a fund to take care of extended deferred maintenance and
replacement costs of float facilities within harbors.
Senator Zharoff asked for a list of facilities impacted by
the bill.
Co-chairman Halford directed that the meeting be briefly
recessed.
RECESS - 12:00 NOON
RECONVENE - 12:10 P.M.
Janice Adair from the Dept. of Environmental Conservation
returned to committee and offered the following language for
incorporation within Amendment No. 3:
The fees authorized by this subsection may not be
levied for reviews of subdivisions being divided
into four lots or less where each lot is at least
one acre in size.
The foregoing would exclude larger subdivisions that gave
rise to committee concern. Co-chairman Halford asked if the
department would support inclusion of the foregoing
amendment as the bill makes its way through the House. Ms.
Adair responded affirmatively. Senator Sharp MOVED for
adoption of Amendment No. 3 as redrafted by the department.
No objection having been raised, Amendment No. 3 was ADOPTED
as redrafted.
Senator Rieger MOVED to tighten the title to reflect the
content of the bill. No objection having been raised, a
title amendment was ADOPTED.
Co-chairman Halford noted that associated fiscal notes
should reflect program receipt increases and general fund
decreases. He suggested that fiscal notes not be considered
new revenue sources for net adds to the operating budget.
Members concurred in that understanding.
Senator Sharp MOVED for passage of CSSB 216 (Fin) with
individual recommendations and accompanying fiscal notes.No
objection having been raised, CSSB 216 (Fin) was REPORTED
OUT* of committee with a $22.0 fiscal note from Dept. of
Environmental Conservation (Statewide Pub.Services), zero
notes from Dept. of Military & Veterans Affairs, and Office
of the Governor (OMB) as well as the following revenue
(program receipt) notes:
Dept. of Revenue $6,000.0
Dept. of Labor 384.5
Dept. of Education 30.0
Dept. of Natural Resources 10.0
Office of the Governor (Human Rights) 5.1
Dept. of Commerce & Economic Development 841.3
Dept. of Environmental Conservation (Lab.) 100.0
Co-chairman Frank and Senator Sharp signed the committee
report with a "do pass" recommendation. Co-chairman Halford
and Senators Phillips, Rieger, and Zharoff signed "no
recommendation."
[*See pages 8 and 9 of these minutes for action rescinding
passage of CSSB 216 (Fin).]
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 110(STA) am
An Act relating to the confidentiality of certain
information in motor vehicle records.
Co-chairman Halford directed that CSSSHB 110 (STA)am be
brought on for discussion. ELEANOR ROSER, aide to
Representative Barnes, came before committee and read the
sponsor statement (copy on file in the original Senate
Finance Committee file for HB 110) into the record. She
noted that the bill responds to constituents who were
stalked by individuals who obtained the victim's address
from the division of motor vehicles. In 1994,
confidentiality of license plate information was included in
the President's crime package. The intent was to protect
personal privacy and only disclose information for
permissible uses.
Businesses that purchase lists (banks, credit unions,
insurance companies) will still be able to do so, but they
will be required to abide by restrictions imposed by the
Federal Act.
If Alaska is not in compliance with federal law by September
13, 1997, division of motor vehicle employees could be
liable for fines of $2,500.00 per day; and the state could
be subject to fines of $5,000.00 until compliance is
achieved.
The legislation is supported by the Council on Domestic
Violence and Sexual Assault and the Dept. of Public Safety.
Senator Randy Phillips voiced his preference for a January
1, 1997, effective date due to logistical computer problems.
Co-chairman Halford expressed concern over delay, citing
problems associated with open records and federal
compliance. JUANITA HENSLEY, Chief of Driver Services,
Division of Motor Vehicles, Dept. of Public Safety, came
before committee. She advised that lack of an effective
date provides the division ample time to implement the
program. Co-chairman Halford said it appears the sponsor
removed immediate effective date provisions to accommodate
implementation concerns. Lack of an effective date would
enact the bill 90 days after passage. The Co-chairman
advised that he would not support a further change without
agreement of the sponsor. Eleanor Roser said that while
there would be no problem with a change of effective date to
January 1, 1997, need for the bill to return to the House
for concurrence poses a problem because of a shortage of
time.
In response to an inquiry from Senator Rieger, Juanita
Hensley explained that records could still be released for
legitimate business purposes. Under subsection (e), an
individual may instruct DMV not to release his or her
information. That would keep personal information totally
private and confidential. Those receiving information for
legitimate business purposes would not be able to
disseminate information that is to remain confidential.
Mrs. Hensley acknowledged that what is released is a policy
call for the legislature. The state may be more restrictive
than federal law, but it cannot be less restrictive.
Discussion followed regarding check-off provisions on
applications which would allow individuals to elect to keep
records private.
Mrs. Hensley further commented upon development of model
language used within the proposed bill.
END: SFC-96, #107-A, Side 1
BEGIN: SFC-96, #107-A, Side 2
Senator Sharp MOVED for passage of CSSSHB 110(STA)am with
individual recommendations and accompanying fiscal notes.
No objection having been raised, CSSSHB 110(STA)am was
REPORTED OUT of committee with a fiscal note from the Dept.
of Public Safety showing a cost of $3.9 and a ($50.)
reduction in revenues. Co-chairmen Halford and Frank and
Senators Phillips, Rieger, and Sharp signed the committee
report with a "do pass" recommendation. Senators Donley and
Zharoff signed "no recommendation."
CS FOR SENATE BILL NO. 216(FIN)
An Act relating to fees, assessments, and costs for
certain functions of state or municipal government
including hearing costs related to the real estate
surety fund, fees for authorization to operate a
postsecondary educational institution or for an agent's
permit to perform services for a postsecondary
educational institution, fees of the state Commission
on Human Rights, administrative fees for self-insurers
in workers' compensation, fees relating to applications
for exploration incentive credits, charges to
prisoners, marine and harbor facility use fees,
business license fees, fees for training relating to
management of hazardous substances and emergency
management response, fees for regulation of pesticides
and broadcast chemicals; and subdivision plans for
sewage waste disposal or treatment; relating to a tax
exemption; and providing for an effective date.
At this point in the meeting, Co-chairman Frank asked that
CSSB 216 (Fin) be brought back before committee. He then
MOVED to rescind committee action passing the bill. He
expressed a preference for subdivision review at the
municipal rather than state level and voiced need to more
closely review the fee section. No objection having been
raised, committee action passing CSSB 216 (Fin) was
RESCINDED.
[Co-chairman Halford left the meeting at this time, and Co-
chairman Frank assumed the chair.]
HOUSE BILL NO. 57
An Act relating to driver's licensing; and providing
for an effective date.
MELINDA GRUENING, aide to Representative Joe Green, came
before committee. She explained that the intent of the bill
is to establish a graduated driver's licencing system. At
the present time, individuals 18 to 20 years old constitute
6.2 percent of all Alaskan drivers but account for 13.9
percent of the accidents and 28 percent of fatal crashes.
Among this age group, a large majority of the accidents
occur in the early hours of the morning. Teens are twice as
likely to be involved in fatal crashes as adults.
The intent of the legislation is to ease a young driver,
under controlled conditions, into the driving environment by
increasing the amount of behind-the-wheel driving practice,
increasing exposure to progressively more difficult driving
experiences, and requiring them to earn full driving
privileges by demonstrating a safe and responsible driving
record.
The proposed bill would establish a graduated system whereby
a 14-year old may apply for a learner permit. At age 16,
providing a driver has held a permit for at least six
months, he or she could be graduated to a provisional
license. The provisional license would restrict nighttime
driving between 1:00 a.m. and 5:00 a.m., with an exception
for driving to and from work.
The other difference between an unrestricted license and a
provisional license is that the licensee is only allowed to
accumulate 8 points in a 12-month period rather than the 12
points allowed for an unrestricted license. If the holder
of a provisional license demonstrates a safe driving record
in the one-year provisional period, an unrestricted license
can be awarded.
Thirteen states presently have laws that limit teenagers
from operating motor vehicles during late evening or early
morning hours. Studies show that nighttime restrictions
significantly reduce accidents.
HB 57 is designed to allow the Dept. of Public Safety to
take advantage of new federal funding to implement the
legislation. Federal law passed in 1993 established
monetary incentives for states that implement programs for
young drivers. That federal funding is reflected in the
fiscal note.
Ms. Gruening next attested to wide support for the bill.
She further advised of changes to the bill as it progressed
through the Senate. The original bill covered novice
drivers 16 through 21. It now covers ages 14 through 17.
The House bill was limited to 6 points. Senate committees
increased the number to 8.
In response to a question from Senator Sharp, JUANITA
HENSLEY, Chief, Driver Services, Division of Motor Vehicles,
Dept. of Public Safety, again came before committee. She
said there is presently no requirement that an individual
have an instruction permit between the ages of 14 and 16.
The proposed bill requires the permit for at least six
months prior to application for a provisional license at 16.
The instruction permit would require the teen to drive with
a person 25 years or older. At 16 the teen could obtain a
one-year provisional license with curfew restrictions. On
the teen's 17th birthday, he or she could get an
unrestricted license.
Discussion of curfews followed between Mrs. Hensley and
Senator Randy Phillips. Mrs. Hensley stressed that the
intent is not to restrict young people but to save lives and
provide teenagers some behind-the-wheel training. She
further commented on the lack of driving experience
associated with the prom night accident on the Kenai. A
national survey indicates 74 percent of the parents surveyed
support a curfew.
Mrs. Hensley noted that, in Alaska, the average cost of
hospitalization for a crash involving teenagers is
$18,000.00. That does not include doctor fees and the cost
of rehabilitation.
Co-chairman Frank referenced a note from Co-chairman Halford
indicating interest in effecting a change in the age (from
25 to 19) of the driver that must accompany a teenager
utilizing an instructional permit. Mrs. Hensley said that
21 is the limit under the federal incentive program. She
further attested to the fact that Alaska applied for and was
awarded a $77.0 grant. The proposed bill would allow the
state to receive the funds to implement a graduated license
program. The model program for a graduated license provides
a range of 21 to 25. Representative Green selected 25 since
that is the age at which insurance breaks occur. Co-
chairman Frank expressed a preference for 22 since that is
the age at which most individuals graduate from college.
Senator Randy Phillips MOVED to change the age set forth on
Page 2, line 2, from 25 to 22. No objection having been
raised, the Amendment was ADOPTED.
Brief discussion followed regarding application of the
foregoing amendment to SCSHB 57 (Jud) or a draft SCSHB 57
(9-LS0269\K, Ford, 4/26/96). Senator Rieger voiced his
understanding that the draft removes the nighttime
restrictions. Senator Sharp expressed a reluctance to make
that change. Mrs. Hensley voiced department support for
SCSHB 57 (Jud), noting that nighttime provisions (Page 2,
lines 19 through 27) would allow young people to drive at
night when going to and from employment. REPRESENTATIVE JOE
GREEN reiterated that teenagers have the most driving
accidents between 1:00 a.m. and 5:00 a.m. Those four hours
are the wrong time to be out driving.
Co-chairman Frank advised of his understanding that Co-
chairman Halford preferred removal of the curfew restriction
per the draft committee substitute. He then directed that
the bill be held pending comments from the Co-chairman.
CS FOR HOUSE BILL NO. 386(JUD)
An Act relating to cruelty to animals and to the power
of first and second class boroughs to prohibit cruelty
to animals.
Senator Phillips noted that both he and Representative
Grussendorf introduced legislation on the same subject
matter and subsequently worked together in development of a
draft SCS CSHB 386 (9-LS1203\O, Luckhaupt, 5/2/96). Co-
chairman Frank said the committee would hear testimony but
would not move the bill at this time.
TERRI TIBBETT, aide to Representative Grussendorf, explained
that the bill lowers the criminal standard by which a person
may be prosecuted for acts of neglect or cruelty. It also
gives first and second class boroughs authority to enact
ordinances to prohibit cruelty to animals, and it exempts
commercial farm animals and commercial farmers from
municipal regulation. It further provides the Commissioner
of the Dept. of Environmental Conservation the option to
regulate commercial farm animals and commercial farmers, if
he or she chooses.
In response to an inquiry from Senator Rieger, Ms. Tibbett
directed attention to the definition of "commercial farm
animal" and "commercial farmer" set forth at Page 2, lines
22 through 28.
Co-chairman Frank inquired regarding concerns expressed by
dog mushers and trappers. Ms. Tibbett explained that
trappers presently have a defense to prosecution in
statutes. It ties the defense to the fact that the conduct
was necessarily incident to lawful hunting or trapping
activities. Mushers also have a statutory defense in
language that says that "It is a defense to a prosecution
that the conduct of the defendant conformed to accepted
veterinary practices." Ms. Tibbett advised that members of
"Mush with Pride," a group that provides guidelines and
standards of care for mushers, indicated members felt
protected under current statute AS 11.61.140.
Co-chairman Frank asked if the proposed bill does more than
merely grant powers to municipalities. Ms. Tibbett
explained that the bill would not give nor take away rights,
except for provisions relating to first and second class
boroughs. The bill primarily lowers the criminal standard
by which people may be prosecuted to make it easier for
prosecutors. Co-chairman Frank voiced his understanding
that was accomplished by changing "intentionally" to
"knowingly," the latter of which is a lower standard. Ms.
Tibbett concurred, advising of a change from "recklessly" to
"with criminal negligence" in relation to criminal neglect.
Discussion followed regarding composition of the "Mush with
Pride" group.
DAN LASOTA, Fairbanks Assemblyman, next came before
committee. He explained that the assembly had been tracking
the bill since inception, due to the fact that Fairbanks
finds itself in the unusual position of only being able to
examine cases of animal cruelty relating to dogs and not
other kinds of animals. That results from a varied history
of voter-approved and legislatively granted powers. The
assembly asked that the legislature, through resolution, do
something similar to what is accomplished by the proposed
bill. The current draft clarifies the situation for
farmers.
Co-chairman Frank directed that SCS CSHB 386 be held pending
Co-chairman Halford's return to the meeting. Senator Donley
MOVED for adoption of SCS CSHB 386 (version "O") as a
working document. No objection having been raised, SCS CSHB
386 (Fin) was ADOPTED.
HOUSE BILL NO. 361
An Act relating to municipal capital project matching
grants for a municipality organized under federal law
as an Indian reserve; and providing for an effective
date.
REPRESENTATIVE JERRY MACKIE came before committee in support
of his bill and acknowledged a companion bill in the Senate,
introduced by Senator Zharoff. The Representative explained
that the bill attempts to address a problem relating to the
capital matching grant program as it applies to Metlakatla.
Metlakatla is not defined as other municipalities since it
is a municipality organized under federal law as an Indian
reserve. Although Metlakatla had received grants until last
year, it is unclear whether language qualifies the community
to receive capital matching grants. The community was thus
denied grants other than an unincorporated matching grant.
HB 361 would allow Metlakatla to receive capital matching
grants. The community continues to receive state funds in
other revenue sharing and municipal assistance programs.
The proposed bill is drafted with the same language used in
other municipal funding. The administration supports the
bill; there has been no opposition.
Representative Mackie acknowledged questions raised in other
committees asking if passage of the proposed bill allowing
an Indian reserve to receive the funds would "open the doors
to tribes that claim sovereignty" and other Native
organizations that are not municipalities. He advised that
the answer is, "No." He further referenced an attorney
general's opinion to that effect, pointed to language at
Page 1, lines 6 through 8, and stressed that it applies only
to Metlakatla. The bill is accompanied by zero fiscal
notes.
Senator Zharoff noted that the administration's capital
matching grant program includes "passage of this bill as
well." Co-chairman Frank directed that the bill be held in
committee pending return of Co-chairman Halford.
ADJOURNMENT
The meeting was recessed at approximately 1:07 p.m.
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