Legislature(1999 - 2000)
05/06/1999 09:15 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 6, 1999
9:15 AM
TAPES
SFC-99 # 126, Sides A and B
CALL TO ORDER
Co-Chair Torgerson convened the meeting at approximately
9:15 AM
PRESENT
In addition to Co-chair Torgerson, Senators Sean Parnell,
Dave Donley, Loren Leman, Gary Wilken, Lyda Green, Randy
Phillips and Al Adams were present when the meeting was
convened.
Also Attending: MARY JACKSON, staff to Senator John
Torgerson; LAMAR COTTEN, Deputy Commissioner, Department of
Community and Regional Affairs; JOSEPH KOLLAR, Executive
Secretary, Office of the Commissioner, Department of
Community and Regional Affairs; LORNA RAMERT, staff to
Senator Pete Kelly; ERIC YOULD, Executive Director, ARECA;
GINA MACDONALD, Special Projects Coordinator, Division of
Mental Health and Developmental Disabilities, Department of
Health and Social Services; JANET CLARKE, Director,
Division of Administrative Services, Department of Health
and Social Services; SHANNON O'FALLON, Assistant Attorney
General, Human Services Section, Civil Division Juneau,
Department of Law; PAT CLASBY and LORRAINE DERR, Alaska
State Hospital and Nursing Home Association; VICTOR GUNN,
staff to Senator Pete Kelly; aides to committee members and
other members of the Legislature.
Attending via Teleconference: RANDY SIMMONS, Executive
Director, Alaska Industrial Development and Export
Authority, Department of Commerce and Economic Development
from Anchorage.
SUMMARY INFORMATION
Co-chair Torgerson convened the meeting at approximately
9:15 a.m. He called first SB 157.
SENATE BILL NO. 157
"An Act relating to power cost equalization; and
providing for an effective date."
MARY JACKSON, staff to Senator John Torgerson was invited
to join the committee. She explained CSSB 157(FIN),
version "I" work draft for the committee. She further
briefly outlined the sectional analysis, sections 1, 2, 3
and 4. She explained the difference between the two bills.
The committee substitute does not make any differential to
kilowatt hours of the original bill and statute; did not
add Kenai and Palmer to Statewide average; deleted
commercial users; did not lower PCE utility rates; raised
the floor from 9.5 to 17.0 cents and added fuel efficiency
notice requirements.
Senator Adams said that one of the greatest impacts was on
page two, section two, line nine. He said it would
increase the electrical power equity. An individual would
only receive $93/month. He thought they were going for a
floor between 9.5 to 10.
Ms. Jackson explained that the question of where to apply
this floor was to ascertain which user would be hurt the
least.
Senator Green asked about the fuel efficiency notice
requirements. Ms. Jackson said there were two APUC and the
Division of Energy who were the "watchdogs" for the
efficiency notice requirements. She said they work with
each utility. Members of the division were present to
answer any questions.
Senator Wilken asked about the spreadsheet and who provided
it. Ms. Jackson said that the department had provided it
and they were present to answer any questions.
Senator Green asked if there was any calculation on the
impact to schools? Ms. Jackson said that a specific run
was not made on this matter, however, Senator Torgerson had
written a letter to the department regarding this matter.
They advised that if there was a problem with a particular
school they would consider a waiver.
Senator Adams said that different schools depending on
their location would have different costs and they would be
asking for a waiver perhaps. He asked if there were any
runs available on the difference between 9.5 and 17.0. Ms.
Jackson indicated that it was in the spreadsheet provided
by the division.
Senator Adams commented regarding the PCE issue. "The
public needs to know what direction we are going in if
these changes are going to be made."
Co-chair Torgerson referred to line fifteen of the
spreadsheet. Ms. Jackson explained that figure was
correct.
Senator Parnell MOVED CSSB 157 (FIN) "I" to be ADOPTED.
Senator Donley explained that he did not want to see this
bill moved out today. Co-chair Torgerson said he wanted to
move the bill out today. Senator Donley explained that he
had drafted amendments but they were to the old version of
the bill. He therefore, OBJECTED.
By a roll call vote of 6 yeas (Torgerson, Parnell, Leman,
Wilken, Green, Phillips) and 2 nays (Donley, Adams)(P.
Kelly absent) CSSB 157(FIN) "I" was ADOPTED as the working
draft before the committee.
Co-chair Torgerson asked that copies of the work draft be
provided the public.
The committee took a brief at ease at approximately 9:30
a.m.
Co-chair Torgerson reconvened the committee at
approximately 9:40 a.m.
LAMAR COTTEN, Deputy Commissioner, Department of Community
and Regional Affairs was invited to join the committee. He
voiced concern for the small communities regarding these
cuts. He noted they have appreciated working with the Co-
chair's staff regarding this issue. There are
approximately 175 communities receiving assistance under
this program, but they were not aware of how many
individuals directly were receiving this assistance. They
have made some suggestions regarding increasing the revenue
from the Four Dam Pool program.
Co-chair Torgerson further referred to the floor being kept
at 700 kWh. Mr. Cotten explained. They have looked at
different models to reduce the kilowatt-hours to 350.
JOSEPH KOLLAR, Executive Secretary, Office of the
Commissioner, Department of Community and Regional Affairs
was invited to join the committee. He concurred with the
comments made by Mr. Cotten.
Senator Wilken asked Mr. Cotten explain the spreadsheet.
Mr. Kollar walked the committee through the spreadsheet.
Less than half of the kilowatt-hours sold in a community go
to commercial users. Column thirteen was total kilowatt
hours consumed. Column fourteen was kilowatt-hours
acceptable to PCE.
Senator Wilken asked about column nine and how it was
derived. Mr. Kollar said it was set by PCE. He continued
explaining the columns for the committee. He explained
Pelican dropping off the program. He explained the
communities with low usage rates are on page one of the
spreadsheet and those with high usage rates are on page
five of the spreadsheet. Communities with a high usage
rate stood to lose more than those communities with a low
usage rate. In conclusion he explained the "totals" on
page five.
Senator Leman asked about page five of the spreadsheet. He
suggested perhaps the "ceiling" should be adjusted as well
as the "floor".
Co-chair Torgerson asked if a run had been made and Mr.
Kollar indicated they had compared what the average payment
would be. He would be willing to provide those comparisons
to the committee.
(pause on record)
Mr. Kollar explained another comparison for an example for
the committee in response to the request from Senator
Leman. He said, however, he did not have a "neat" summary
to present on paper at this time to the committee.
Co-chair Torgerson asked that runs be provided to the
committee by this afternoon. Mr. Kollar said that was
possible.
Senator Phillips asked about page one of the spreadsheet.
He would appreciate an average also be provided.
Senator Adams comments regarding commercial payments. Mr.
Kollar responded. Commercial as indicated was private
commercial and also included some non-profits. He will
look into which non-profits and what commercial and
communities. Senator Adams said he felt this was a very
important matter and Co-chair Torgerson concurred.
There followed a brief discussion between Senator Adams and
Mr. Cotten regarding AIDEA involvement. Mr. Cotten said
that Randy Simmons from AIDEA was on line to answer any
questions.
Co-chair Torgerson asked the department to have the
requested information from Senators Adams and Leman by this
afternoon in his office.
(Tape # 126, Side A switched to Side B at log #589.)
Senator Leman explained again his request to the
department. Senator Adams also had brief comments and
suggested perhaps another source could be looked for to
fund revenue. Co-chair Torgerson concurred. He said they
would work with Senator Adams to try and sort out this
issue.
Co-chair Torgerson HELD the bill in committee and said he
would bring it up again as soon as possible. He then moved
to teleconference and asked if anyone wanted to testify.
Senator Adams said that in looking for revenue sources was
there anything available for appropriation from AIDEA?
RANDY SIMMONS, Executive Director, AIDEA, Department of
Commerce and Economic Development responded via
teleconference from Anchorage. He said there was
approximately $8 million that could be made available. In
response to a question from Co-chair Torgerson he said they
were looking at the possibility of higher dividend payments
to the State. They do anticipate higher dividends but do
not know the amount. He would not, however, assume the
amount could be lowered by the amount the Governor was
putting in the fund regarding PCE for next year. They were
looking at offering up more money for the year 2000. Co-
chair Torgerson said there was only thirteen days left.
Mr. Simmons indicated he was aware of this.
ERIC YOULD, Executive Director for ARECA was invited to
join the committee. He voiced his concern with this bill.
Co-chair Torgerson assured they would continue working with
him also.
Co-chair Torgerson SET ASIDE CSSB 157(FIN) "I". He then
called SB 97.
SENATE BILL NO. 97
"An Act relating to confidential mental health
records; relating to mental health services and
programs; relating to liability for payment for mental
health evaluation and treatment services; and
providing for an effective date."
CS FOR SENATE BILL NO. 97(HES)
"An Act relating to mental health services and
programs; relating to liability for payment for mental
health evaluation and treatment services; and
providing for an effective date."
LORNA RAMERT, staff to Senator P. Kelly was invited to join
the committee. She read the sponsor statement into the
record. She advised that the department was present to
answer any specific questions.
Senator Adams he had questions for the department.
GINA MCDONALD, Special Projects Coordinator, Division of
mental Health and Developmental Disabilities, Department of
Health and Social Services was invited to join the
committee. She responded to questions from Senator Adams
regarding patients for API.
JANET CLARKE, Director, Division of Administrative
Services, Department of Health and Social Services was
invited to join the committee. He said funds were
available through FY 2001 for downsized API. The Mental
Health Trust Authority supported downsized API. In
response to Senator Torgerson she indicated this included
new federal dollars and they were working in close
conjunction with U.S. Senator Ted Stevens.
Senator Wilken MOVED CSSB 97(), version "K". Senator
Phillips noted his conflict. Co-chair Torgerson duly noted
it. WITHOUT OBJECTION CSSB 97() "K" was ADOPTED.
Senator Leman asked about the submission of records
requirement for determining eligibility. Ms. McDonald
indicated that the Department of Law could respond to this
question.
SHANNON O'FALLON, Assistant Attorney General, Human
Services Section, Civil Division Juneau, Department of Law
was invited to join the committee. She responded to
Senator Leman.
Senator Green asked about page two, lines twenty-three.
Ms. O'Fallon said it might be necessary to establish an
individual's eligibility by questioning a spouse or other
proper person.
PAT CLASBY and LORRAINE DERR, Alaska State Hospital and
Nursing Home Association were invited to join the
committee. Ms. Clasby advised the committee that the
language on page two, section (c) was compromised language.
The department was allowed to issue an administrative order
for full liability for cost of patient care rather than
incur the costs of the department taking the matter to the
Court.
Co-chair Torgerson SET ASIDE, CSSB 97() "K" work draft. He
then called SB 130.
The committee took a brief at ease.
Co-chair Torgerson reconvened the committee.
SENATE BILL NO. 130
"An Act relating to immunity for sale or transfer of a
firearm; relating to administrative functions
performed by and fees charged by the Department of
Public Safety for transfer of a firearm."
VICTOR GUNN, staff to Senator P. Kelly was invited to join
the committee. He read the sponsor statement into the
record. The bill addressed liability and unfunded
mandates. He said the sponsor urged passage of the bill
from committee.
Senator Donley indicated he supported this piece of
legislation.
Senator Adams asked what was an NFA firearm and does it
include sawed off shotguns? Mr. Gunn indicated that was
correct. He said it was legal for individuals to possess
these weapons. These individuals were law-abiding citizens
and as indicated there had not been one of these specified
weapons used in the commission of a crime.
Senator Parnell asked how sawed off shotguns related to the
bill. Senator Adams said they should not be circulated
around in the public. Co-chair Torgerson said the question
was outside the scope of the bill. Senator Donley said he
could envision law-abiding citizens in Alaska having taken
the appropriate steps to obtain such a weapon.
DEL SMITH, Deputy Commissioner, Department of Public Safety
was invited to join the committee. He explained the fiscal
note. He said they have to do a background check and that
should be up to the Federal government and they feel they
should not have to do this considering their cuts. He also
concurred with the testimony of Mr. Gunn and said that as
far as they knew, none of these weapons had been used in
the commission of a crime. He further felt that BATF
(Federal) was better capable of performing the background
checks. For the benefit of the committee he read the last
paragraph of page two of the ATF Form 4.
Senator Donley asked about individuals who have concealed
weapon permits. Mr. Smith said there was a BATF waiver
available. There was concern, however, that if they sign
one they will have to sign all and it is their feeling that
they should not be signing any. It was a Federal
responsibility.
(The arrival of Senator P. Kelly was noted at approximately
10:55 a.m.)
Mr. Smith continued his comments.
Senator Green asked regarding the ATF Form 4. Mr. Smith
said the form would have to be signed by the local police
department.
Senator Adams asked if the bill protected the public. Mr.
Smith responded that if there were no unexpected glitches
it could work, however, there were no assurances.
Senator Leman asked about a tax of $200 that goes to the
Federal government. Mr. Smith said a reasonable fee could
be charged according to this bill.
Senator Wilken asked why the bill did not go to the
Judiciary committee. Senator Kelly deferred to the
chairman of the Judiciary committee.
Senator Leman MOVED SB 130. Senator Adams OBJECTED. By a
roll call vote of 8 yeas (Torgerson, Parnell, Donley,
Leman, Wilken, P. Kelly, Green, Phillips) and 1 nay (Adams)
SB 130 was REPORTED OUT with individual recommendations and
zero fiscal notes from the Department of Law and Department
of Public Safety.
Co-chair Torgerson said he would HOLD SB 112 and SB 169
until the next meeting of the committee. He reminded
members that all amendments for SB 31 and SB 32 were due by
3:00 p.m. today in his office.
ADJOURNMENT
Co-chair Torgerson recessed the committee at approximately
11:05 a.m.
(Tape number 126, Side B, log number 000.)
SFC-99 -1- 05/06/99
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