Legislature(1999 - 2000)
05/17/1999 09:25 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES SENATE FINANCE COMMITTEE 17 May 1999 9:25 A.M. TAPES SFC-99, #144, Sides A and B CALL TO ORDER Co-chair John Torgerson convened the meeting at approximately 9:25 A.M. PRESENT In addition to Co-chair John Torgerson, Senators Dave Donley, Loren Leman, Al Adams, Pete Kelly, Lyda Green, Randy Phillips, Gary Wilken were present when the meeting was convened. Also Attending: JOSEPH PERKINS, Commissioner, Department of Transportation and Public Facilities; DENNIS POSHARD, Legislative Liaison, Office of the Commissioner, Department of Transportation and Public Facilities; DWIGHT PERKINS, Deputy Commissioner, Department of Labor; REBECCA GOMEZ, Director, Division of Employment Security, Department of Labor; JUANITA HENSLEY, Director, Division of Motor Vehicles; BRAD PIERCE, Senior Policy Analyst, Office of the Director, Office of Management and Budget; REMOND HENDERSON, Director, Division of Administrative Services, Department of Labor; WENDY REDMAN, Vice President, University of Alaska; CAROL CARROLL, Director, Division of Administrative Services, Department of Natural Resources; PHIL OKESON, Fiscal Analyst, Division of Legislative Finance; Via Teleconference: DAVID EBERLE, Director, Construction and Operations, Central Region, Department of Transportation and Public Facilities, Anchorage; JANE ANGVIK, Director, Division of Lands, Department of Natural Resources, Anchorage. SUMMARY Co-chair Torgerson convened the meeting at approximately 9:25 a.m. He said he would proceed with the agenda in the order items were listed. He first called HB 84. HOUSE BILL NO. 84 "An Act relating to international airports revenue bonds; and providing for an effective date." DENNIS POSHARD, Legislative Liaison, Department of Transportation and Public Facilities was invited to join the committee. He briefly commented to the bill. In February of this year $179 million in bonds was issued by the department and they have begun development of the airport international terminal. At this point it is five percent complete with full operation for construction to begin this summer. The project will have a short-term cash flow, which will be solved by this bill and will help maintain the construction schedule. Proceeds from the LOI will be used to offset the cash flow. In summary, he said the project was good for Anchorage International Airport. In making use of the Federal funding it will help reduce airport-landing fees. Lower costs to the airlines will also benefit the traveling public. He asked favorable vote by the committee on the bill. JOSEPH PERKINS, Commissioner, Department of Transportation and Public Facilities was invited to join the committee. Senator Wilken said the people of the State want to know the benefits of this airport. There are many who have concerns. Commissioner Perkins responded that it was a perception problem. DAVID EBERLE, Director, Construction and Operations, Central Region, Department of Transportation and Public Facilities testified via teleconference from Anchorage. He said he was available only to answer any questions the committee may have. Senator Leman MOVED HB 84. There was brief discussion amongst committee members. WITHOUT OBJECTION IT was REPORTED OUT with individual recommendations and accompanying zero fiscal note from the Department of Revenue. Co-chair Torgerson next called HB 87. HOUSE BILL NO. 87 "An Act relating to money credited to the account of the state in the unemployment trust fund by the Secretary of the Treasury of the United States; and providing for an effective date." DWIGHT PERKINS, Deputy Commissioner, Department of Labor was invited to join the committee. He commented briefly in support of the bill. In response to a question by Senator Phillips, Mr. Perkins said the funding was for equipment and other related matters. Senator Green asked if this was something that would show up in next year's budget? Mr. Perkins said he did not think it would but would defer to Ms. Gamez from Division of Employment Security. REBECCA GAMEZ, Director, Division of Employment Security Division, Department of Labor was invited to join the committee. She responded briefly to Senator Green's query. Mr. Perkins said they were not part of the legislation concerning Y2K. They were doing their own upgrades and compliance checks with Federal dollars. Co-chair Torgerson asked for a copy of the Federal regulations. Mr. Perkins said he would provide the committee with a copy. There is no GF in unemployment funds responded Mr. Perkins in answer to a query from Co-chair Torgerson. Ms. Gamez said the Federal government had not given states back any money was in about thirty years. She further advised that these monies would be spent on administration, including capital expenditures, salaries, lease costs, and anything that has to do with the administration of the program. She will check and see if there is a time limit on the spending of these funds. She believed it was three years. Currently, they have authority to use Federal unidentified funds. They must upgrade their system because they are now obsolete. They must make sure it will happen and hope that it will come under the Reed Act. Senator Green asked if these monies would supplant any other funds that may have been used more broadly? Ms. Gomez said these questions were asked in the House and she will supply a copy of this information. She referred specifically to a letter to Representative Rokeberg. Copies of this letter will also be provided the committee. Included in the packet is a response to a question by Co-chair Torgerson that there was a two-year limit to expend the funds. Co-chair Torgerson said he would SET ASIDE HB 87 at this time pending receipt of requested information. The committee took a five-minute recess. Co-chair Torgerson reconvened the committee at approximately 10:12 A.M. He called HB 227. HOUSE BILL NO. 227 "An Act modifying the Department of Natural Resources' power to control and manage certain land within the Hatcher Pass Public Use Area and making that land available for selection by the Matanuska-Susitna Borough." CS FOR HOUSE BILL NO. 227(RES) "An Act modifying the Department of Natural Resources' power to control and manage certain land within the Hatcher Pass Public Use Area and making that land available for selection by the Matanuska-Susitna Borough." CS FOR HOUSE BILL NO. 227(RES) am "An Act making up to 160 acres of land available for selection by the Matanuska-Susitna Borough." REPRESENTATIVE SCOTT OGAN, sponsor of the bill was invited to join the committee. He said they were only asking for 60 acres out of the Hatcher Pass Public Use Area. Any proceeds from the sale of the land will revert to the general fund of the State. This will help out the Mat-Su Valley and will help to broaden the tax base. JANE ANGVIK, Director, Division of Lands, Department of Natural Resources testified via teleconference from Anchorage. They support the bill as it stands before the committee. She said she was happy to answer any questions the committee may have. Representative Ogan said the fiscal amount attached would be returned in the form of general funds. Senator Green MOVED CSHB 227(RES) am and WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and accompanying fiscal note in the amount of $11.1 from the Department of Natural Resources. Co-chair Torgerson said HB 231 would be moved to the bottom of the calendar. HOUSE BILL NO. 231 "An Act relating to income of the Alaska permanent fund, to the Alaska Income Account, and to permanent fund dividends; and providing for an effective date." Co-chair Torgerson then called HB 151. HOUSE BILL NO. 151 "An Act relating to revocation and reinstatement of the driver's license of a person at least 14 but not yet 21 years of age." CS FOR HOUSE BILL NO. 151(JUD) "An Act relating to revocation and reinstatement of the driver's license of a person at least 14 but not yet 21 years of age." CS FOR HOUSE BILL NO. 151(JUD) am "An Act relating to revocation and reinstatement of the driver's license of a person at least 14 but not yet 21 years of age." COREY WINCHELL, staff to Representative PETE KOTT, sponsor of the bill was invited to join the committee. He read the sponsor statement into the record. Senator Leman commented. He suggested we should be speaking to young individuals regarding the dangers of drinking. "Is this available administratively?" Mr. Winchell said this was discussed at length in the Judiciary committee. They want the Court to mandate community service and it should be left to the District court. Senator Leman said community service should be offered as an alternative and let the individual choose this method if they like. He said that most young individuals would do anything to be able to drive again. This included for school, their jobs and other reasons. SENATOR ROBIN TAYLOR, Chair of the Senate Judiciary Committee was invited to join the committee. He told the committee that he has put this bill on a personal priority. This legislation would repeal the "use and lose" bill presently enacted. Unfortunately, there are full-blown alcoholics at the young age fifteen in the State of Alaska. This problem needs to be addressed. He called the committee's attention to page five, line sixteen and said he had an amendment to correct this. He explained the "Kiddie ASAP" program. He noted the high fiscal note submitted by the department. In further comment, he said, for instance, Public Defenders are going to have to be appointed and this in turn is going to cost the State more money. Ms. Carpeneti, Assistant Attorney General, Department of Law can further testify to this portion of the bill. Even though this is not a priority piece of legislation it is one that must be worked on. He referred to his amendment and said that it would strip out the extra costs loaded on by the department without taking away the basic matter of the bill. Co-chair Torgerson said he would like to see a copy of the CS as proposed by Senator Taylor. (Tape #144, Side A, switched to Side B at log #587.) In conclusion, Senator Taylor said the big thing was to get rid of the fiscal note. ANNE CARPENETI, Assistant Attorney General, Criminal Division, Department of Law was invited to join the committee. Apparently what was previously enacted was not working. The "use and lose" bill needed some fine-tuning. They do not want to lose what tools they have already in place. Senator Leman said he agreed that the penalties were too severe. Good behavior should be encouraged. Perhaps children should be assigned into programs that already exist. He said he did not think the matter could be resolved this year but feels it is important enough to work on for next year. Department of Motor Vehicles should have the authority to give back licenses to 21-year olds who have had no further violations. Co-chair Torgerson asked Ms. Carpeneti to review the proposed work draft CS as proposed by Senator Taylor and report back this afternoon. JUANITA HENSLEY, Director, Division of Motor Vehicles was invited to join the committee. She said they were satisfied with the bill and the proposed CS was acceptable. It would also allow them to run revocations concurrent, rather than stack them on top of each other. They do support the work draft CS as passed out by Senator Taylor. Senator Wilken asked the changes between "F" and "P". (There followed a pause on record.) Ms. Hensley advised the committee that if the proposed work draft CS were to be adopted the fiscal note would revert to zero. Senator Leman was concerned about the increment staying at thirty days. Perhaps there should be a progressive increase in the penalty. Ms. Hensley explained the current problems of consecutive sentences. She said there were over nine thousand pending consecutive sentences. Ms. Hensley explained that someone who had committed the offenses when they were a juvenile and now were 25-year old adults had no way of getting their license back. Some may have had as many as eighteen pending offenses as a juvenile. She reviewed the difference in the revocations for Anchorage, Fairbanks and Juneau. In response to a question by Senator Phillips she said it was not dependent on population. Senator Leman said running the sentences concurrent was not enough of a deterrent. The bill needs work throughout the interim. He suggested that the department consider the lower end regarding the first one or two violations and perhaps the penalty be made a little stiffer. Senator Green voiced concern over individuals having eighteen violations. Ms. Hensley responded. Co-chair Torgerson said he would SET ASIDE HB 151 until the evening calendar. ADJOURNMENT Co-chair Torgerson recessed the committee until call of the chair. SFC-99 -1- 05/17/99 am
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