Legislature(1997 - 1998)
04/23/1997 05:35 PM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
23 April 1997
5:35 p.m.
TAPES
SFC-97, #125, Side 1 (000 - 599)
125, Side 2 (599 - 000)
126, Side 1 (000 - 513)
CALL TO ORDER
Senator Bert Sharp, Co-chairman, convened the meeting at
approximately 5:35 p.m.
PRESENT
In addition to Co-chairman Sharp, Senators Phillips,
Torgerson, Parnell and Adams were present when the meeting
convened. Senators Donley and Pearce arrived respectively
shortly thereafter.
ALSO ATTENDING: Senator Robin Taylor; Joe Perkins,
Commissioner, Department of Transportation and Public
Facilities; Nancy Slagle, Director, Division of
Administrative Services, Department of Transportation and
Public Facilities; Bob Ward, City Manager, Skagway; Andrea
Barkley, Alaska Marine Highway System/IBU Executive
Committee; Stephanie Rainwater, Alaska Marine Highway
employee; Gerald Hope, Tribal Council Officer as Secretary,
Ketchikan Tribal Corporation; Fred Shields, Haines Borough
and Chamber of Commerce; James L. Van Horn, Ketchikan
Gateway Borough; Representative Brian Porter; Anne
Carpeneti, Assistant Attorney General, Criminal Division,
Department of Law; Forrest Browne, Debt Manager, Division of
Treasury, Department of Revenue; Greg Hayes, Chief of
Laboratories, Division of Public Health, Department of
Health and Social Services; Tom Wright, staff to
Representative Ivan Ivan; Representative Con Bunde; aides to
committee members and other legislators.
SUMMARY INFORMATION
CS FOR SENATE BILL NO. 21(STA)
"An Act relating to ferries and ferry terminals,
establishing the Alaska Marine Highway Authority, and
relating to maintenance of state marine vessels; and
providing for an effective date."
Senator Taylor, sponsor of SB21 was invited to join the
committee. In a brief explanation of the bill he noted this
bill would be an ongoing working document. He said the
creation of the Marine Highway Authority would bring
stability to the system. At the present there was an
increasing level of bureaucracy and a decreasing level of
services. In answer to a question from Senator Adams he
said the Authority would be an entity within the Department
of Transportation. Senator Torgerson asked if the Authority
would be able to spend Federal funds. Senator Taylor
indicated they would. Senator Adams said he would still
like to look at the matter of setting up an Authority. He
felt there had been a lack of communication. Senator Taylor
responded that within the entire infrastructure there had
been a lack of communication. He would applaud any change
to bring expertise to the Marine Highway. The bandaid
approach up until now only fixed part of the problem.
Senator Torgerson commented on fiscal notes. He noted the
chief operating officer's fancy fee. He suggested amending
the Department of Transportation's fiscal note to zero and
send the money otherwise earmarked to the Authority.
Senator Phillips in a comment to the committee noted that
Juneau was against the bill and Ketchikan supported the
bill.
In conclusion of his testimony, Senator Taylor said the best
time to make the transition to the Authority would be in the
winter when the ferry system was slowed down.
Commissioner Joseph Perkins, Department of Transportation
and Public Facilities was invited to join the committee. He
said the Administration did not support SB 21. Reductions
to the operating budget year after year had caused
operational problems and reductions in services. Stable
funding must be addressed and there should be an adequate
stable funding source. He said due to maintenance for ships
having been cut there would be some difficulty in getting
Coast Guard certification. The majority of the marine
routes were a part of the federally designated highway
system. This tied the system into the road network.
Further, he noted the Authority was not in the Department of
Transportation and it would operate independently. The
creation of the Authority would only cause more competition.
Two points he brought up for the committee to consider for
the creation of the Authority were: 1. the project must
get on STIP for federal funds; and 2. they must receive
legislative authority. He felt the Authority at this time
was moving in the wrong direction. There would be the same
isolation for the Marine Highway as for the Alaska Railroad
system. The needs of the travelling public have drastically
changed. There should be changes made within the Department
of Transportation to address these needs.
Senator Adams voiced a concern for Federal funding for the
Authority. Commissioner Perkins explained that Federal
funds were given to the Department of Transportation. The
Marine Highway Authority would have to compete for federal
funds based on how projects were graded and scored.
Bob Ward, City Manager, Skagway, Alaska was invited to join
the committee. He said the City of Skagway opposed SB 21.
If there was enough money there would be enough ships and
therefore no problems. He felt there were many significant
points that needed to be addressed. A continued trend of
decreased funding had led to a decrease in service levels to
community residents in the winter.
Andrea Barkley, Alaska Marine Highway System/IBU Executive
Committee was invited to join the committee. She was a 19-
year Marine Highway employee and supported the bill. She
said there were many problems that needed to be changed and
the creation of the Authority offered potential improvement.
Stephanie Rainwater, Alaska Marine Highway System, Chairman
of Management Labor Advisory Board was invited to join the
committee. She was a 10-year Marine Highway employee and
also supported the bill. She explained the last three years
there had been a decrease in services and poor reservations
system. There had been too much cutting back and now not
enough money left to keep the system running. There needed
to be a change and she said that Marine Highway employees
supported SB 21. They were good employees, wanted to give
good service; and therefore the Marine Highway System should
keep people employed and let them provide good service. She
also noted that many times the ships are not always full.
Senator Adams concurred and said that everything was going
down because of budget cuts.
Senator Torgerson responded by saying that there had been a
cut in Administration but that $1 million had been put back
into the Marine Highway budget specifically for vessel
operation. Ms. Rainwater said perhaps one should look at
the Administration employees.
Gerald Hope, Tribal Council Officer as Secretary, Ketchikan
Indian Corporation was invited to join the committee. He
spoke on behalf of the Southeast Alaska families and said
the Alaska Marine Highway System provided transportation for
these families to keep in close touch with each other. He
said the Corporation supported SB 21.
Fred Shield, representative, Haines Borough and Chamber of
Commerce was invited to join the committee. He said Haines
supported SB 21.
James L. Van Horn, member, Ketchikan Gateway Borough was
invited to join the committee. He said the death spiral
system of the Alaska Marine Highway had to be changed. He
supported SB 21.
Senator Taylor in response to the given testimony noted that
three years ago the captains for the Alaska Marine Highway
sent in a letter to their superiors asking only for
competent management.
Co-chair Sharp set the bill aside.
SENATE CS FOR CS FOR HOUSE BILL NO. 9(JUD)
"An Act relating to the rights of crime victims and
victims of juvenile offenses; relating to the collection
by victims of restitution from prisoners; relating to
the definition of `incapacitated' for sexual offenses;
creating the crime of interfering with a report of a
crime involving domestic violence; relating to the
safety of victims, other persons, and the community in
setting bail or conditions of release; relating to access
to certain records of the Violent Crimes Compensation
Board; amending Rules 6 and 43(d), Alaska Rules o f
Criminal Procedure, Rules 404 and 615, Alaska Rules of
Evidence, and Rule 3, Alaska Delinquency Rules; and
providing for an effective date."
Representative Brian Porter, sponsor of the bill was invited
to join the committee. He noted specifically that al fiscal
notes were zero. He explained sections 3, 4, 5 and 6.
Section 7 would redefine "incapacitated". He referred the
members to the section analysis provided.
Anne Carpeneti, Assistant Attorney General, Criminal
Division, Department of Law was invited to join the
committee. At this point Senator Adams and Senator Pearce
conferred briefly agreeing that Senator Adams' amendment was
the same as Senator Pearce's amendment #2. Ms. Carpeneti
said that the department opposed amendment #2 and referred
to the 1994 victims' rights law. She briefly outlined a
present Fairbanks case. A mental examination for a victim
should be very limited.
Senator Pearce moved amendment #1 and without objection it
was adopted.
Senator Torgerson moved SCS CSHB 9(FIN) with individual
recommendations and accompanying fiscal notes and without
objection it was reported out.
SENATE BILL NO. 51
"An Act giving notice of and approving the entry into,
and the issuance of certificates of participation in, a
lease-purchase agreement for a centralized public
health laboratory facility."
Co-chair Sharp introduced SB 51. Forrest Browne, Department
of Revenue was invited to join the committee. Senate
Finance Committee members, staff and members of the public
sang "Happy Birthday" to Mr. Browne.
Senator Adams asked the cost of the building per square foot
and Senator Pearce said the cost was high because of
specialized equipment.
Co-chair Sharp moved amendment #1 for discussion purposes.
Mr. Browne briefly explained the amendment. Amendment #1
was adopted without objection.
Greg Hayes, Chief of Laboratories was invited to join the
committee. He briefly explained their fiscal note. Mr.
Browne indicated that it was a gross number. Senator Adams
asked if the title was wrong and Mr. Hayes indicated that
"consolidated" would perhaps be better.
Senator Donley moved CSSB 51(FIN) with individual
recommendations and accompanying fiscal notes. By a vote of
4 - 2 (Adams, Sharp) it was reported out of committee.
CS FOR SENATE BILL NO. 34(TRA)
"An Act giving notice of and approving a lease-purchase
agreement with the City of Soldotna for a maintenance
facility of the Department of Transportation and Public
Facilities."
Senator Torgerson introduced CSSB 34(TRA). He specifically
noted page 1, line 11, amendment #1. He briefly discussed
with Senator Pearce regarding the City of Soldotna being the
seller of the bond.
(Tape change to #126.)
He said there was no high priority to move the bill.
Senator Pearce said she did not feel the City of Soldotna
should have the bond.
Nancy Slagle, Director, Division of Administrative Services,
Department of Transportation and Public Facilities was
invited to join the committee. She said this matter was a
high priority with the department. It had been three years
since the environmental clean-up had been requested. Money
was available for working on design and road to the new
site. In 1996 money was appropriated for the clean-up in
the amount of $600,000. She did not know the total amount
of the cleanup but would provide exactly how much the
department received and how much they expended.
Senator Torgerson said that $600,000 was appropriated and
reviewed the amounts left. Approximately $1 million was
left. (pause while Senator Pearce reviewed the spread
sheet.) In response to a question by Senator Pearce,
Senator Torgerson said he had no objection to the City or
the State holding the bonds. The City had been trying to
get the State to do the bond but for some reason the State
had been holding off. The City said they would not pay the
bond, however, for clean-up. The Department of
Transportation said with another $250,000 the project could
be finished. It was noted the State owned the property.
Co-chair Sharp said he never heard of the State bonding for
cleanup. He asked Senator Torgerson to review the bill
tonight and to pin down whether the City of Soldotna or the
State would do the bonding. Senator Torgerson said the City
felt if they did the bonding they could move on with the
project. Mr. Browne said that whoever does the bonding it
would be a 90-day process. Senator Torgerson said he would
review the bill and have it redrafted and ready for
tomorrow.
Co-chair Sharp concurred and held SB 34 over until tomorrow.
CS FOR HOUSE BILL NO. 20(FIN)
"An Act relating to dog mushers' contests."
Tom Wright, staff to Representative Ivan Ivan was invited to
join the committee. He briefly explained CSHB 20(FIN).
Senator Adams moved CSHB 20(FIN) and without objection it
was reported out.
SENATE CS FOR CS FOR HOUSE BILL NO. 145(FIN)
"An Act relating to certification of teachers; and
providing for an effective date."
Senator Pearce moved the work draft version of SCS CSHB
145(FIN) for discussion purposes. She explained the changes
incorporated into the work draft. She said teacher
certifications would be paid for by teachers same as other
licenses and certifications. There would be no title
change. Senator Adams said the change of fees would need an
updated fiscal note. Senator Pearce responded and said it
would not change the budget.
Representative Con Bunde was invited to join the committee.
He was available to answer any questions by the committee.
Senator Pearce acknowledged the uniqueness of this
situation. She re-iterated that teachers should pay for the
whole cost of their certification the same as others. She
said there would be no new general funds nor positions.
Senator Phillips asked if this bill would test all teachers.
Representative Bunde said only new teachers would be tested.
In response to a question by Senator Phillips he said that
it was a basic screen test. It has been proven that there
were college graduates not literate. Other states have
screened out incompetent applicants using the procedure.
This test was a basic literacy and competency test.
Senator Adams asked how bilingual teachers would be affected
and Representative Bunde said they would be required to pass
not only the basic screen test but also a bilingual exam.
Senator Pearce suggested the committee adopt a title change
but Senator Adams objected. He said he would like a legal
opinion on the matter. Senator Pearce removed her motion
and said she would have legal services draft a new CS for
tomorrow.
Co-chair Sharp concurred and held SCS CSHB 145(FIN) in
committee pending receipt of a new draft. He further
reviewed the calendar for tomorrow. Senator Torgerson said
his draft for SB 21 would also be ready for tomorrow.
ADJOURNMENT
Co-chair Sharp adjourned the committee at 8:00 p.m. until
tomorrow.
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