Legislature(2005 - 2006)
05/02/2005 10:36 AM Senate FIN
* 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, 2005
10:36 a.m.
CALL TO ORDER
Co-Chair Green convened the meeting at approximately 10:36:14 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Fred Dyson
Senator Bert Stedman
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: SENATOR RALPH SEEKINS; REPRESENTATIVE MIKE HAWKER;
REPRESENTATIVE RALPH SAMUELS; REPRESENTATIVE VIC KOHRING; DOUG
WOOLIVER, Administrative Attorney, Alaska Court System; BEN
MULLINGAN, Staff to Representative Bill Stoltze; RANDY RUARGO,
Assistant Attorney General, Civil Division (Juneau), Department of
Law; KEVIN TABLER, Manager, Land/Government Affairs, Union Oil
Company of California/Anchorage; BARBARA COTTING, Staff to
Representative Jim Holm; CONRAD JACKSON, Staff to Representative
Kurt Olson; GINGER BLAISDELL, Staff to Senator Lyda Green; HEATH
HILLIARD, Staff to Representative Mike Kelly; MIKE TIBBLES, Deputy
Commissioner, Department of Administration; MIKE PAWLOWSKI, Staff
to Representative Kevin Meyer; IAN FISK, Staff to Representative
Bill Thomas; SAM KITO, Chair, Legislative Liaison Committee for the
Alaska Professional Design Council; HEATHER NOBREGA, Staff to
Representative Norm Rokeberg; GREG WINEGAR, Director, Division of
investments, Department of Commerce, Community and Economic
Development; KACI SCHRODER, Staff to Representative Bill Thomas
Attending via Teleconference: From Offnet Sites: TIM ROGERS, Alaska
Municipal League; DUANE BANNOCK, Director, Division of Motor
Vehicles, Department of Administration
SUMMARY INFORMATION
HB 249-ENHANCED 911 SURCHARGES
The Committee heard from the sponsor and the Alaska Municipal
League. An amendment was considered, but failed to be adopted. The
bill reported from Committee.
HB 155-YOUTH COURTS AND CRIMINAL FINES
The Committee heard from the sponsor and the Alaska Court System.
One amendment was adopted, and the bill was held in Committee.
HB 131-ACCESS DEVICE & I.D. DOCUMENT CRIMES
The Committee heard from the sponsor and the Department of Law. The
bill reported from Committee.
HB 197-OIL SPILL EXEMPTIONS FOR GAS WELLS
The Committee heard from the sponsor and the industry. The bill
reported from Committee.
HB 156-COMMISSION ON AGING
The Committee heard from the sponsor, adopted a committee
substitute, and reported the bill from Committee.
HB 178-SPECIAL REQUEST LICENSE PLATES
The Committee heard from the sponsor and the Department of
Administration. The bill was held in Committee.
SB 46-BUDGET: CAPITAL & OTHER/ BRF
The Committee reviewed a committee substitute and held the bill in
Committee.
HB 91-INDECENT EXPOSURE TO MINORS
The Committee reported out the bill.
HB 35-EXTEND BD ARCHITECTS/ENGINEERS/SURVEYORS
The Committee reported out the bill, then rescinded that action.
After hearing from the bill's sponsor and the industry, one
amendment was adopted and the committee substitute was reported
from Committee.
HB 75-HUNTING, FISHING, TRAPPING
The Committee heard from the sponsor and the Chair of the Senate
Resources Committee. One amendment was adopted and the bill
reported from Committee.
SB 24-REEMPLOYMENT OF RETIREES
The Committee heard from the Department of Administration, adopted
one amendment and reported the bill from Committee.
HB 15-LIQUOR LIC: OUTDOOR REC. LODGE/BARS/PUBS
The Committee heard from the sponsor and reported the bill from
Committee.
HB 19-PESTICIDE & BROADCAST CHEMICALS
The Committee heard from the sponsor and reported the bill from
Committee.
HB 230-LOANS FOR COMMERCIAL FISHING TENDERS
The Committee heard from the sponsor and the Department of
Commerce, Community and Economic Development. The bill reported
from Committee.
HB 136-DRIVING UNDER INFLUENCE SENTENCING
The Committee heard from the bill's sponsor and reported the bill
and a House Judiciary Letter from Intent from Committee.
HB 119-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
The Committee heard from the sponsor. One amendment was adopted and
the bill reported from Committee.
10:36:00 AM
CS FOR HOUSE BILL NO. 249(RLS)
"An Act relating to enhanced 911 systems and enhanced 911
surcharges imposed by a municipality, public municipal
corporation, or village."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE MIKE HAWKER, the bill's sponsor, noted that the
Committee previously heard the Senate companion bill to this
legislation. The House version of the bill before the Committee
included some technical changes such as changing
"telecommunication" to "telephone" and "E 911" to "Enhanced 911".
In addition, the maximum tax amount allowable without voter
approval was increased from $1.50 to $2.00.
10:37:57 AM
TIM ROGERS, Alaska Municipal League, testified via teleconference
from an offnet location in support of this bill. He would be
available to answer questions.
10:38:28 AM
Co-Chair Green remarked that this matter has had considerable
attention, and that the majority of the Committee's language
recommendations pertinent to the Senate companion bill were
incorporated into this House bill. The three changes in this
version of the bill, as communicated by Representative Hawker,
would be "a great improvement".
10:38:54 AM
Co-Chair Wilken stated that this legislation is a "big issue" to
the Fairbanks North Star Borough and the City of Fairbanks. The
$2.00 maximum tax limit would not sufficiently cover the costs of
the Enhanced 911 system in Fairbanks. Therefore, the City would be
required to make internal adjustments.
Co-Chair Wilken stated that Fairbanks is primarily concerned with
the fact that local voter approval would be required to increase
the Enhanced 911 service assessment beyond the $2.00 limit that
would be specified in Statute. The concern is that the public might
not support the need. A forthcoming amendment would change the
manner through which the local Enhanced 911 surcharge could be
managed by allowing the local assembly rather than the public to
decide the issue.
Co-Chair Wilken informed the Committee that local assembly and
mayoral elections are held every three years in Fairbanks.
Campaigns for those seats could be intensive and expensive. The
concern is that, even though the Enhanced 911 issue would be
considered a worthy initiative, the issue would have to compete
with the assembly and mayoral elections and "would be lost in the
noise". It would be secondary to the focus on the candidate
elections.
Amendment #1: This amendment deletes "surcharge amount is approved
by the voters of the enhanced 911 service area" in Sec. 2(a) page
two lines 14 and 15 and replaces it with "municipality adopts a
separate ordinance authorizing the increase".
Co-Chair Wilken moved for adoption of Amendment #1.
Co-Chair Wilken argued that the current language in the bill would
shortchange the Enhanced 911 service. While the effort is to make
the service more responsive and enhance public safety in the
community, the opposite would be true. He opined that, were it put
to a local vote, he, having used the service, would be one of a few
who would vote for an increased Enhanced 911 surcharge.
Nonetheless, while only one in ten people have used the service, it
would be available for all ten.
Co-Chair Green objected to the amendment. A tax limitation in this
regard has "long been in Statute", and the proposal to increase the
current 50-cent tax limit to $2.00 would quadruple the revenue to
most large communities. It is interesting how the blame pertaining
to this issue transitions from one entity to another: when the
local phone utility, which has no control over the issue
incorporates the Enhanced 911 surcharge into their subscribers'
utility bills, the subscribers blame the utility; the utility would
deflect that blame and explain that the charge was due to a city or
borough decision; and the city would then deflect the criticism to
the Legislature by intoning that the State allowed them to increase
the charge. While she could accept the $2.00 tax limit, any charge
imposed over that amount in a local community should be approved by
that community's voters.
10:44:34 AM
Senator Olson requested the sponsor's position of the amendment.
10:44:41 AM
Representative Hawker replied that he had previously considered
this issue. His determination was that arguments for both positions
are "equally sound". He understood the argument of allowing those
most closely affected by the issue to vote in its regard as well as
the concern that voters might not support increasing fees upon
themselves for a public issue.
10:45:36 AM
Co-Chair Green commented on the neutrality of Representative
Hawker's position.
10:45:48 AM
Senator Dyson, noting that he had served for six years on a local
municipal assembly, spoke in support of the amendment.
Traditionally, in a western representative democracy, people are
elected to positions and charged with studying an issue and making
a decision in its regard. He agreed with Co-Chair Wilken that the
elected body could best make the decision regarding a local
Enhanced 911 surcharge. His Senate district seat predecessor,
Senator Sam Cotton, was heard to say in response to whether he
would vote in support of the will of his constituents that, "most
of the issues are very complicated and take a lot of study … at the
end of the day, I hope that I vote the way that you would have
wanted to vote if you had had access to the information and the
debate of the history of the issue like I have a chance to study."
The hope is that the electorate would vote for mature and wise
people who would make the right decision after they had had the
time to study the issue and hear the debate.
10:47:32 AM
Co-Chair Green viewed Senator Dyson's position as being "kind of
interesting", as he has been "a proponent of sound budgeting" and
watchful of elected officials' efforts to increase spending. "This
flies directly in the face of the tax cap that the City of
Anchorage" and other communities have. This would be "a mechanism
by which they can get around the tax limit, and that bothers me."
Therefore, "we shouldn't be providing them an avenue in which to go
around that tax cap."
Co-Chair Green observed that one of the problems with the Enhanced
911 system is that, were a poll taken, it would be determined that
few people "know what that system consists of." Communicating the
financial mechanics of the system to people would be a "huge
education" effort, as attested by the discussions that transpired
during Committee hearings. The language provided in this
legislation would clearly define how this money could be utilized
and would distinguish between "the needs verses the wants".
Co-Chair Green maintained her objection to Amendment #1.
10:49:08 AM
Senator Olson voiced concern that the amendment could make it
easier for a municipality to increase the surcharge rate were
funding short.
10:49:27 AM
Co-Chair Green agreed.
10:49:30 AM
Senator Dyson appreciated Co-Chair Green's comments about the
"apparent hypocrisy" of his earlier position on the amendment. He
has oftentimes encountered issues in conflict with his principles.
He knew of many circumstances in which the Municipality of
Anchorage Assembly has attempted to maneuver "around their tax cap
rather than facing it honestly." He appreciated being "reminded"
that this action might enable such action. Providing the ability
"to end run their tax cap" would not be his desire. However, the
significance of the issue and the principle of a representative
government override that concern in this case.
A roll call was taken on the motion.
IN FAVOR: Senator Dyson and Co-Chair Wilken
OPPOSED: Senator Olson, Senator Hoffman, Senator Stedman, and Co-
Chair Green
ABSENT: Senator Bunde
The motion FAILED (2-4-1)
The amendment FAILED to be adopted.
10:51:06 AM
Co-Chair Wilken offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
There being no objection, CS HB 249(RLS) was REPORTED from
Committee with zero fiscal note #1 dated April 8, 2005 from the
Department of Public Safety.
10:51:16 AM
AT EASE 10:51:59 AM / 10:53:35 AM
10:53:36 AM
CS FOR HOUSE BILL NO. 155(JUD)
"An Act relating to funding for youth courts; and relating to
separately accounting for fines imposed on and collected from
defendants."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE RALPH SAMUELS, the bill's sponsor, read from his
Sponsor Statement as follows.
HB 155 simply gives the Legislature the authority to
appropriate up to 25% of the fines collected by the Alaska
Court System to the youth courts. It is not stipulated that
they must do so.
The youth courts help young offenders by intervening early to
set them on the right track and work to deter them from
becoming adult offenders.
The Anchorage Youth Court, which was established in 1989, is
the oldest of the 14 youth court programs in the State. In the
first two quarters of the current fiscal year, there have been
471 youth offenders referred to these programs, 397
adjudications, 8,833 hours of community service and $7,502.00
in restitution ordered.
There are 14 youth courts operating statewide: Anchorage,
Delta Junction, Fairbanks, Homer, Juneau, Kake, Kenai,
Ketchikan, Kodiak, Kotzebue, Mat-Su, Nome, Sitka and Wrangell.
This bill simply provides an accounting mechanism through
which to allow the Legislature to give the Youth Courts money.
"The actions of an offender being tried in a Youth Court are
judged by his or her peers. It is a lot tougher to blow smoke
if you are talking to your own age group."
Doug Wooliver, an attorney with the Alaska Court System,
drafted Sections 3 and 4 to address some of the concerns the
Court System had with their estimates and accounting of the
money.
10:56:05 AM
Co-Chair Green asked where the revenues collected from fines are
currently deposited.
10:56:16 AM
Representative Samuels clarified that the Alaska Youth Court is
currently unable to receive funds. He deferred to the Mr. Wooliver
with the Alaska Court System for further specifics.
10:56:26 AM
Co-Chair Green, noting that this legislation would not generate
additional money; it could simply divert revenue to the Youth
Court, asked for further information about where the funds are
currently deposited.
10:56:43 AM
Representative Samuels responded that the funds are currently
deposited to the General Fund. The bill would not stipulate where
the Youth Court would be ranked in line for funding; it would
simply implement an accounting mechanism through which money could
be allocated to the Youth Court.
10:57:04 AM
Co-Chair Green asked whether AS 37.05.142, as specified in language
in Section 1(g) page one, line five, was a general accounting
reference.
(g) Fines imposed and collected under this section shall
be separately accounted for under AS 37.05.142.
10:57:26 AM
DOUG WOOLIVER, Administrative Attorney, Alaska Court System,
informed that AS 37.05.142 is a Statute "that directs an entity to
separately account for specific types of money. In this case, it
would direct the Court System to specifically identity fines
collected under AS 12.55.035 as opposed to revenue collected from
such things as other types of fines, court costs or forfeitures.
The funds would therefore be "labeled" in the General Fund.
10:58:07 AM
Co-Chair Green recalled past Committee discussions and concerns in
regards to fines that were collected but not provided to the harmed
party. She was unsure whether this was the result of accounting
procedures or a computer "glitch". She allowed that those issues
might have involved different types of fines than those addressed
in this legislation. Nonetheless, she asked what this legislation
would change that would allow these funds to be made available for
appropriation.
10:58:48 AM
Mr. Wooliver stated that this legislation would not address the
issue of the "disconnect" between the Alaska Court System and the
Collections and Support Section of the Department of Law. This bill
would specify that the fine money collected and accounted for
directly by the Alaska Court System would be deposited into the
general fund. That would be the dollar amount subject to this
legislation. This would circumvent "the disconnect" that is
occurring with the Department of Law collections division.
Co-Chair Green understood therefore that this legislation would
"pre-authorize" one-quarter of the fine revenue collected by the
Court System to be used to fund the Youth Court.
10:59:37 AM
Mr. Wooliver responded that this legislation would provide the
authority through which the Legislature could do that.
Co-Chair Green pointed out that the bill's provisions specify that
the Legislature "'may' appropriate" those funds.
10:59:44 AM
Co-Chair Green asked whether this action could occur absent this
bill.
10:59:50 AM
Representative Samuels expressed the understanding that the
Legislature could establish a procedure through which to
appropriate funds "all at one time".
11:00:06 AM
Senator Stedman remarked "the operative provision here is 'may'".
That word would indicate that the appropriation would not be
mandatory. Continuing, he inquired as to how much 25-percent of the
fines collected for the past three to five years would have
amounted to.
11:00:27 AM
Mr. Wooliver reported that, over the past year, the Alaska Court
System collected approximately $3,500,000 in fines; this bill would
allow 25 percent of that amount to be available to the Youth
Courts.
11:00:50 AM
Co-Chair Wilken voiced surprise at that amount, as the Department
of Law fiscal note #1 indicates that $1,200,000 was collected. 25-
percent of that amount would equate to approximately $324,800 being
provided to the Youth Courts.
11:01:10 AM
Co-Chair Wilken understood from Representative Samuels' remarks
that the Legislature could appropriate funds without this
legislation. This bill would simply serve to establish the
mechanism for the appropriation. Continuing, he expressed that the
words "up to" 25-percent should be included in Sec. 2 page one line
nine, as current wording would indicate the Legislature would be
limited to either appropriating zero or 25-percent of the fines.
While he is a "big supporter" of the Youth Court program, the
concern would be that the Youth Court program would grow as a
result of a year or years with good earnings; however the program
would encounter trouble were their funding to diminish in years of
low earnings. Therefore, the inclusion of the words "up to" would
provide the Legislature "the discretion" to fund the program "at an
appropriate level depending on what they are requesting".
Conceptual Amendment #1: This amendment inserts the words "up to"
before the phase "25 percent" in Sec. 2 page one line nine.
Co-Chair Wilken moved Conceptual Amendment #1.
There being no objection, Conceptual Amendment #1 was ADOPTED.
Co-Chair Green ordered the bill HELD in Committee.
AT EASE 11:04:14 AM / 1:47:45 PM
1:47:48 PM
HOUSE BILL NO. 131
"An Act increasing the criminal classification of theft of an
access device and of obtaining an access device or
identification documents by fraudulent means; increasing the
criminal classification for certain cases of fraudulent use of
an access device; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
BEN MULLIGAN, Staff to Representative Bill Stoltze, the bill's
sponsor, stated that the increase in access identity thief has
become a nationwide concern. Alaska is second in the nation in the
number of complaints per capital in regards to this issue. This
bill would increase the criminal classification for this crime from
a Class A misdemeanor to a Class C felony for the theft of an
access device, the use of an access device, and the obtaining of an
access device by fraudulent means.
1:48:51 PM
RANDY RURARO, Assistant Attorney General, Department of Law,
informed the Committee that the Department of Law is in support of
the bill.
1:49:24 PM
Co-Chair Green asked whether the definition of an access device is
included in the bill.
1:49:31 PM
Mr. Mulligan stated that an access device is defined in State
Statue AS 11.81.900 as follows.
An access device means a card, credit card, plate code,
account number, Algorithm, or identification number including
a social security number, electronic serial number or password
that is capable of being used alone or in conjunction with
another access device or identification document to obtain
property or services that could be used to initiate a transfer
of property.
1:50:20 PM
Co-Chair Green asked whether increased penalties for these crimes
is occurring on a national level.
1:50:28 PM
Mr. Mulligan replied that numerous states have either lowered or
eliminated the value level required for a felony charge relating to
the property or services obtained as a result of this crime. The
fact that these crimes have increased more than 100 percent
nationwide has led to such action.
1:51:00 PM
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, HB 131 was REPORTED from Committee with
zero fiscal note #1 dated February 25, 2005 from the Department of
Corrections, zero fiscal note #2 dated February 22, 2005 from the
Department of Law, zero fiscal note #3 dated February 22, 2005 from
the Department of Public Safety, and indeterminate fiscal note #4
dated February 22, 2005 from the Department of Administration.
1:51:18 PM
CS FOR HOUSE BILL NO. 197(RLS)
"An Act exempting certain natural gas exploration and
production facilities from oil discharge prevention and
contingency plans and proof of financial responsibility, and
amending the powers and duties of the Alaska Oil and Gas
Conservation Commission with respect to those plans; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Green stated that this bill would address oil spill
exemptions for gas wells.
REPRESENTATIVE VIC KOHRING, the bill's sponsor on behalf of the
House Special Committee on Oil and Gas, explained that this
legislation would exempt oil companies that are drilling strictly
for gas from oil spill contingency plans. Current State law
requires a company "that is drilling strictly for gas and is
drilling in formations that contain only gas" to develop an oil
spill contingency plan. The development of these plans is expensive
and time consuming. It "would be logical to exempt gas drillers"
from this requirement. The Oil and Gas Conservation Commission
would be responsible for making the determination as to whether a
formation contained oil. The company would be granted an exemption
from the oil spill contingency plan requirement were the Commission
to determine that the formation did not contain oil.
Representative Kohring stated that the bill is accompanied by a
zero fiscal note from the Department of Environmental Conservation
and is supported by the Governor Frank Murkowski Administration.
1:53:18 PM
Co-Chair Green asked when the oil spill contingency plan statute
was enacted.
Representative Kohring replied that the oil spill contingency plan
was enacted in HB 531 in the year 2003. This legislation would
correct a drafting error that inadvertently included gas drillers
with those that would be required to develop the oil spill
contingency plan.
1:53:59 PM
Co-Chair Green remarked that some of the regulations relating to
oil and gas drilling and development are "quite old". To that
point, a distinction between oil and gas might not have been made.
1:54:30 PM
KEVIN TABLER, Manager, Land/Government Affairs, Union Oil Company
of California/Anchorage requested that the Members support the
House Rules Committee version of the bill, as it would "clean up"
the unintended and inadvertent drafting error that was included in
HB 531 when the definition of conventional and non-conventional gas
wells was changed.
1:55:41 PM
Co-Chair Green understood that hearings on this bill had occurred
in the House Committee on Oil and Gas bill, the House Finance
Committee, the Senate Resources Committee and the Senate Rules
Committee.
Representative Kohring affirmed
1:56:06 PM
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS HB 197(RLS) was REPORTED from
Committee with previous zero fiscal note #1 dated March 14, 2005
from the Department of Environmental Conservation.
1:56:31 PM
CS FOR HOUSE BILL NO. 156(RLS) am
"An Act relating to the membership and duties of and quorum
requirements for the Alaska Commission on Aging; and providing
for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
1:57:28 PM
BARBARA COTTING, Staff to Representative Jim Holm, the bill's
sponsor, informed the Committee that a new committee substitute has
been distributed.
Co-Chair Wilken moved to adopt committee substitute Version 24-
LS0615\S as the working document.
Co-Chair Green objected for an explanation.
Ms. Cotting expressed that during its committee referral process,
this "simple little bill" has been amended numerous times. She
reminded the Committee that the Alaska Commission on Aging was
moved from the Department of Administration to the Department of
Health and Social Services in the year 2003. That move resulted in
the need for Statutory revisions. She voiced appreciation for Co-
Chair Green's and others' input on the needed revisions that have
occurred in accomplishing that task during the bill's committee
process.
Ms. Cotting stated that the Version "S" committee substitute would
eliminate the requirement that the Commissioner of the Department
of Administration hold a seat on the commission, as that Department
is no longer involved with the Commission: that seat would instead
be reserved for a senior services provider. The committee
substitute would also allow all eleven Commission members to vote.
It would also eliminate sections that pertained to the Commission's
responsibility of evaluating and awarding grant applications, as
that function was no longer being performed. This would also serve
to eliminate any appearance of a conflict of interest.
[NOTE: Co-Chair Wilken assumed Chair of the Committee.]
1:58:43 PM
Co-Chair Wilken asked whether there were any further questions or
testimony in regards to the bill.
None were forthcoming.
1:58:54 PM
In response to a question from Senator Dyson, Co-Chair Wilken noted
that further action on the bill must wait until Co-Chair Green, who
had momentarily stepped away from the meeting, removed her
objection to the adoption of the committee substitute.
AT EASE: 1:59:04 PM / 1:59:06 PM
Co-Chair Wilken ordered the bill HELD in Committee.
1:59:29 PM
CS FOR HOUSE BILL NO. 178(STA) am
"An Act relating to special motor vehicle registration plates;
and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
CONRAD JACKSON, Staff to Representative Kurt Olson, the bill's
sponsor, stated that this legislation would allow, with a few
exceptions, all license plates to be made available for use on all
motor vehicles. Currently, the use of specialized or non-standard
license plates is limited to passenger vehicles, motorcycles, non-
commercial vans, pickup trucks, and motor homes. Use of these
license plates is currently prohibited for commercial vehicles.
Therefore, the end result of this bill would be to allow the use of
non-standard plates on all vehicles. However, he noted that those
applying for Veterans, Purple Heart, or Alaska National Guard
plates would be required to meet specific qualifiers in order to
display them.
Mr. Jackson noted that since there is a fee for non-standard
plates, this expansion would increase revenue in the Division of
Motor Vehicles (DMV), Department of Administration.
Mr. Jackson addressed the confusion that has accompanied the bill's
fiscal notes by communicating that while the State Affairs
Committee's version of the bill had been adopted in the House of
Representatives, the fiscal note accompanying the House Finance
Committee's version of the bill had been inadvertently transmitted
to the Senate. Therefore, he requested that the Committee adopt the
State Affairs fiscal note.
2:01:48 PM
Co-Chair Wilken understood therefore that the Department of
Administration $5,000 fiscal note #1, dated March 18, 2005 would be
the correct fiscal note.
Mr. Jackson affirmed.
2:02:02 PM
Senator Olson asked whether the fee structure for the non-standard
license plates had been altered.
2:02:16 PM
Mr. Jackson replied that no change has occurred to the fee
structure. This bill would simply serve to expand the usage of
these plates.
2:02:27 PM
DUANE BANNOCK, Director, Division of Motor Vehicles, Department of
Administration, testified via teleconference from an offnet
location. He voiced appreciation for the efforts exerted by the
bill's sponsor in this effort to increase "the greater use of
vanity or personalized specialty license plates". This legislation
is one component of the improvements the Department is attempting
to implement at the DMV.
2:03:27 PM
Senator Hoffman asked whether the Department of Public Safety has a
position on this bill.
2:04:02 PM
Mr. Jackson responded that the Director of the DMV has been in
contact with the Department of Public Safety. No problem has been
identified. The license plates simply provide the identification of
the vehicle. Legibility of the license plate and other such issues
are addressed in provisions addressing the basic construction of
the plate.
2:04:25 PM
Senator Hoffman understood therefore that Department of Public
Safety is not opposed to the bill.
2:04:30 PM
Mr. Jackson responded that he is unaware of any opposition.
However, he deferred to Mr. Bannock.
2:04:37 PM
Senator Hoffman recalled that, in the past, when legislation
allowing for increased diversification of plates was discussed, the
Department of Public Safety had voiced reservations. Therefore he
questioned whether their position had changed in that regard.
[NOTE: Co-Chair Green resumed Chair of the meeting.]
2:04:59 PM
Mr. Jackson clarified that this legislation would not add any
plates to Statute it would merely make them available to a "wider
range of vehicles".
AT EASE 2:05:20 PM / 2:08:16 PM
2:08:19 PM
Co-Chair Green requested that the fiscal note issue be further
explained.
2:08:22 PM
Mr. Jackson clarified that the State Affairs Committee fiscal note,
fiscal note #1, rather than the House Finance Committee fiscal
note, fiscal note #2, should have accompanied the bill when it
transmitted from the House to the Senate.
Co-Chair Green acknowledged.
2:09:05 PM
Co-Chair Green stated that a question has been raised in regards to
Fiscal note #1, in that, in addition to the $5,000 operating
expenses, it reflects a capital expenditures expense of $5,000.
Therefore, she asked whether the total expense should be $10,000
rather than the $5,000 reflected in fiscal note #1.
2:09:27 PM
Mr. Jackson deferred to the Division of Motor Vehicles.
2:09:32 PM
Mr. Bannock, after consulting with Division staff, stated that the
$5,000 capital expense would be provided for from a separate fund
account. Therefore, while the total expense would be $10,000, only
the $5,000 operating expense would be required.
Co-Chair Green requested that clarification be sought in regards to
whether $10,000 should be the total amount reflected.
Mr. Bannock stated that while the first year's total expense would
amount to $10,000, the $5,000 capital expense is not being
requested. Only the operating expense is being requested.
2:11:18 PM
Co-Chair Green asked therefore whether the capital expense might be
more correctly identified as Capital Improvement Project (CIP)
receipts.
Co-Chair Green stated that the fiscal note issue should be further
reviewed, as the desire would be to have correct information
accompany the bill.
Mr. Bannock agreed that the fiscal note should be "perfect".
2:11:42 PM
The bill was HELD in Committee.
AT EASE 2:12:05 PM / 2:12:22 PM
CS FOR HOUSE BILL NO. 156(RLS) am
"An Act relating to the membership and duties of and quorum
requirements for the Alaska Commission on Aging; and providing
for an effective date."
The bill was again before the Committee.
Co-Chair Green removed her earlier objection to the committee
substitute. [See Time Stamp 1:56:31 PM.]
There being no further objection, the committee substitute was
adopted.
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, SCS CS HB 156(FIN) was REPORTED from
Committee with previous zero fiscal note #1 dated February 23, 2005
from the Department of Health and Social Services.
AT EASE 2:13:11 PM / 2:15:25 PM
2:15:30 PM
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This bill had previously been heard in the Senate Finance
Committee.
GINGER BLAISDELL, Staff to Co-Chair Green, prefaced her remarks by
stating that the committee substitute work draft, Version 24-
GS1074\F, being explained would require additional amending to
correct spelling and other errors. Requests from Legislators are
continuing to be incorporated.
Ms. Blaisdell stated that the first 72 pages of Version "F" list
"standard" capital budget projects, broken out by agency. Sec. 4,
page 73 through page 88, would address the projects that are also
included in SB 155-APPROP: SCHOOLS/UNIV/VIROLOGY LAB/MUSEUM. The
introductory language in SB 46 specifies that were SB 155 to fail
passage, the projects included in that bill would be funded by
general funds (GF) rather than by the Permanent Fund Earnings
Reserve Account as specified in SB 155. She pointed out that the
lone difference between the language in SB 155 and that of Sec. 4
is that SB 155 has a "general appropriation of $141,000,000 for
school maintenance projects", whereas SB 46 identifies each project
by school name.
2:17:54 PM
Co-Chair Green stated that that would account for the number of
pages in the section. This detailed information would be helpful to
Legislators.
2:18:02 PM
Ms. Blaisdell stated that the list includes each school that was
identified on the Department of Education and Early Development's
maintenance list. A few other school projects were also included.
Ms. Blaisdell noted that Sec. 6 on page 89 would address those
projects that would funded by the interest earnings of the Amerada
Hess Fund in the Permanent Fund via the Alaska Capital Income Fund.
There would be a few corrections to this list, as it had been
developed from an older list version.
2:18:42 PM
Ms. Blaisdell commented that the majority of the projects in Sec. 6
were included in Governor Frank Murkowski's transportation
initiatives and Roads to Resources endeavor.
2:19:00 PM
Ms. Blaisdell stated that Sec. 7 on page 89 contains "standard
language" that is included in every capital bill. It would include
such things as federal program receipts. This section would also
include language pertaining to projects that were originally
included in SB 97-SUPPLEMENTAL APPROPRIATIONS/CBR.
Ms. Blaisdell pointed out that the Alaska Gas Pipeline project is
included in the bill on page 94. That project had been previously
vetoed in the Fast Track Supplemental bill.
2:20:05 PM
Ms. Blaisdell continued that Reappropriations, which are listed by
House District, are included in Sec. 36 beginning on page 104. Most
of these were projects that were "highlighted" to Committee Members
by the Department of Commerce, Community and Economic Development.
2:20:39 PM
Co-Chair Green conveyed that that is the traditional procedure for
any money that has not been utilized.
2:20:52 PM
Ms. Blaisdell stated that a reappropriation could consist of any
money that had been appropriated in an earlier fiscal year and is
being reappropriated into a following fiscal year. The funds could
be reappropriated to support an entirely different use. These funds
could include such things as extended lapse dates or scope of
project changes.
2:21:09 PM
Co-Chair Green communicated that the reappropriation projects would
provide for projects "across the State and every district probably
has something going …" either at the request of the district or a
department.
2:21:24 PM
Ms. Blaisdell mentioned that the projects prefaced by "House
District are typically" advanced by the Department of Commerce,
Community and Economic Development.
2:21:39 PM
Ms. Blaisdell communicated that a few projects that were included
in the Supplemental Bill are provided for in the Appropriations
sections of the bill.
2:22:00 PM
Ms. Blaisdell stated that the final pages of the bill contain
contingency language to the effect of specifying that, were SB 155
to fail, money for the projects in that bill would be provided for
through this bill. In other words, language in this bill would
negate duplication of funding those projects specified in SB 155
were SB 155 to pass. Similar language is included in regards to the
Amerada Hess Capital Income Fund projects.
2:22:31 PM
Ms. Blaisdell concluded her testimony by specifying that lapse
dates and effective dates are included in the final sections of the
bill.
2:22:36 PM
Co-Chair Green pointed out that, other than the inclusion of the
Amerada Hess interest earning projects, this bill would be
characterized as a typical capital budget bill in regards to its
fund sources.
2:22:53 PM
Ms. Blaisdell concurred. Efforts were made to provide a fairly
traditionally formatted bill. "Past precedence" was adhered to as
much as possible.
2:23:08 PM
Co-Chair Green asked whether some of the items she had mentioned in
her initial review of Version "F" had been altered.
2:23:14 PM
Ms. Blaisdell clarified that the contents of Version "F" have not
been changed. The work draft does contain some typographical errors
and incorrect numbers; corrections are being made and a corrected
committee substitute would be provided.
2:23:36 PM
Co-Chair Green asked Members to communicate any corrections they
might find to Ms. Blaisdell.
Ms. Blaisdell expressed that she had identified ten items requiring
corrections. In addition, the Division of Legislative Finance is
addressing changes relating to Legislators' requests.
2:24:34 PM
Senator Hoffman asked whether a capital budget total has been
determined.
Co-Chair Green replied that a total has not yet been determined.
2:24:45 PM
Senator Dyson asked regarding language in Sec. 12, page 91, lines
12 and 13.
2:25:28 PM
Co-Chair Green responded that that language is standard in every
piece of legislation pertaining to marine vessels; specifically it
would allow for vessel retrofitting.
2:26:07 PM
Senator Dyson asked whether that language could be used as "a
loophole".
2:26:13 PM
Co-Chair Green replied "absolutely".
2:26:20 PM
Ms. Blaisdell stated that the language in question typically
pertains to Department of Public Safety and Department of Fish and
Game vessels. She noted that "the average amount for the sale and
resale" of those vessels is $250,000 to $300,000 per year.
2:26:42 PM
Senator Olson asked the reason that this loophole is not closed.
2:26:52 PM
Co-Chair Green responded that with a fleet, over the course of a
year, it might be necessary to discard and/or sell parts. Some of
the resulting income might be used to rehabilitate or refurbish
another vessel, airplane, or helicopter in the fleet. This language
is the traditional language in this regard. She stated that Senator
Olson, being an airplane owner, would understand this.
2:27:26 PM
Senator Olson voiced being aware of the issue. However, his concern
is that, as aircraft are sold and new ones bought, the situation
builds on itself. This is evidenced by the request for a new
hangar. That hanger would be filled, and then another hangar would
be required. He disagreed with such progression.
Co-Chair Green asked whether the concern is in regards to the fact
that increasing the number of aircraft in the fleet would require a
hangar.
Senator Olson stated that his concern pertained to the Department
of Public Safety request for a hangar that was in excess of
$6,000,000. That hangar would be filled and then another hangar
would be requested. This cycle would continue to escalate.
Co-Chair Green asked whether Senator Olson had observed a request
for a six million dollar hangar in this legislation.
Senator Olson responded that his concern is to "the mentality on
that absurd request".
2:28:55 PM
Co-Chair Green reiterated that the language in question is
identical to that of previous bills. It would allow for the
continuance of efforts. To that point, she stated that it would
also support the efforts being exerted by the Governor Murkowski
Administration in regards to reducing the number of aircraft and
marine vessels in State operations. Some would argue that there is
an insufficient number of aircraft and vessels in State service.
Others would argue that there are too many.
2:29:17 PM
Co-Chair Green asked whether there were any other Committee
questions or concerns. None were forthcoming.
Co-Chair Green reiterated that a new committee substitute is being
developed.
2:29:36 PM
Ms. Blaisdell specified the timeframe in which Members could
communicate any "technical corrections" to her. Members' amendments
that might incur significant changes to the bill could be developed
with the assistance of Members' own staff or with the Division of
Legislative Legal and Research.
2:30:11 PM
The bill was HELD in Committee.
2:30:27 PM
CS FOR HOUSE BILL NO. 178(STA) am
"An Act relating to special motor vehicle registration plates;
and providing for an effective date."
The bill was again before the Committee. [For previous Committee
discussion, see Time Stamp 1:59:29 PM]
Co-Chair Green informed that a corrected fiscal note for the bill
would be presented at the Committee's next scheduled hearing.
The bill was again HELD in Committee.
AT EASE 2:30:55 PM
[NOTE: Due to technical difficulties, the portion of the meeting
between Time Stamp 2:30:55 PM and 2:43:55 PM was not recorded. The
minutes presented are from the Finance Committee Secretary's
notes.]
HOUSE BILL NO. 91 am
"An Act relating to indecent exposure."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Green noted that a mother of a child who had been a victim
of indecent exposure had shared her angst with Co-Chair Green.
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, HB 91 am was reported from Committee with
three zero fiscal notes: fiscal note #1 dated March 21, 2005 from
the Department of Administration; fiscal note #2 dated March 17,
2005 from the Alaska Court System; and fiscal note #3 dated March
22, 2005 from the Department of Law.
SENATE CS FOR HOUSE BILL NO. 35(L&C)
"An Act extending the termination date of the State Board of
Registration for Architects, Engineers, and Land Surveyors;
extending the term of a temporary member of the State Board of
Registration for Architects, Engineers, and Land Surveyors;
and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
2:40:52 PM
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, SCS HB 35(L&C) was REPORTED from
Committee with previous fiscal note #1 dated January 25, 2005 from
the Department of Commerce, Community and Economic Development.
While there would be zero fiscal impact in FY 06, there would be
fiscal note beginning in FY 07.
[NOTE: This action was rescinded later in the hearing and a Finance
Committee committee substitute was reported out. See Time Stamp
3:18:10 PM.]
2:41:11 PM
SENATE CS FOR CS FOR HOUSE BILL NO. 75(RES)
"An Act relating to the powers and duties of the commissioner
of fish and game, Board of Fisheries, and Board of Game in
promoting and preserving fishing, hunting, and trapping in the
state; and repealing the power and duty of the commissioner of
fish and game to assist the United States Fish and Wildlife
Service in the enforcement of federal laws regarding fish and
game."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Green noted that the Senate Resources committee substitute
before the Committee has a title change to that of the original
bill.
AT EASE 2:43:27 PM / 2:43:57 PM
[NOTE: Audio Recording of the meeting resumed at this point.]
Senator Stedman asked regarding language in Sec. 4(a)(13), page
seven line 23 as added by the Senate Resources Committee;
specifically as to "how extensive" the heritage look-back might be,
as he recalled a time when hunting eagles and sea lions was
permissible.
(13) promoting hunting and trapping and preserving the
heritage of hunting and trapping in the state.
Co-Chair Green pointed out that the activities that would be
considered must be legal.
2:45:04 PM
Senator Olson, noting that the bill had been modeled after
legislation adopted by the State of Michigan, asked whether
consideration had been provided to the issues of Alaska's
subsistence laws as well as to the Alaska National Interest Lands
Conservation Act (ANILCA); specifically whether provisions in the
bill were contrary to those issues.
Co-Chair Green assumed that that would not be the case. Efforts
would be made to allow the bill's sponsor to testify in this
regard.
2:46:01 PM
Senator Olson asked that the sponsor be allowed to respond.
Co-Chair Green ordered the bill SET ASIDE in order for the sponsor
to provide testimony.
[NOTE: This bill is readdressed at Time Stamp 2:58:41 PM.]
2:46:26 PM
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 24(STA)
"An Act relating to reemployment of and benefits for retired
teachers and public employees and to teachers or employees who
participated in retirement incentive programs and are
subsequently reemployed as a commissioner; and providing for
an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Amendment #1: This amendment deletes all material in Sections 14
and 15 beginning on page seven line 13 through page eight line
seven and inserts the following language.
Sec. 14. The uncodified law of the State of Alaska is
amended by adding a new section to read:
APPLICABILITY OF SECS. 2, 4, AND 5 OF THIS ACT TO RETIRED
TEACHERS MAKING AN ELECTION UNDER AS 14.25.043(b) OR (e)
BEFORE JULY 1, 2005. (a) A retired teacher who was rehired and
made an election under AS 14.25.043(b) or (e) before November
3, 2004, may continue to receive retirement benefits and
medical benefits under AS 14.25.043(b) or (e) from July 1,
2005, through December 31, 2006, if that teacher continues to
serve in the same position. However, on January 1, 2007, the
period of reemployment to which the teacher's original
election under AS 14.25.043(b) or (e) applied is considered
terminated. If the teacher continues as an active teacher,
that teacher may not continue to receive benefit payments
while working as an active teacher unless the employer rehires
the teacher under AS 14.25.043(b) or (e), as amended by secs.
4 and 5 of this Act, on or after January 1, 2007.
(b) A retired teacher who was rehired and made an
election under AS 14.25.043(b) or (e) on or after November 3,
2004, may not continue to receive retirement benefits and
medical benefits under AS 14.25.043(b) or (e) after June 30,
2005. On July 1, 2005, the period of reemployment to which the
teacher's original election under AS 14.25.043(b) or (e)
applied is considered terminated. If the teacher continues as
an active teacher, that teacher may not continue to receive
benefit payments while working as an active teacher unless the
employer rehires the teacher under AS 14.25.043(b) or (e), as
amended by secs. 4 and 5 of this Act, on or after July 1,
2005.
(c) This section does not apply to an employer who may be
required to provide health and medical benefits under AS
14.25.043(b), as amended by sec. 4 of this Act, regardless of
whether a teacher receives retirement medical benefits under
this section.
Sec. 15. The uncodified law of the State of Alaska is
amended by adding a new section to read:
APPLICABILITY OF SEC. 7 OF THIS ACT FOR RETIRED EMPLOYEES
MAKING AN ELECTION UNDER AS 39.35.150(b) OR (e) BEFORE JULY 1,
2005. (a) A retired employee who was rehired and made an
election under AS 39.35.150(b) or (e) before November 3, 2004,
may continue to receive retirement benefits and medical
benefits under AS 39.35.150(b) or (e) from July 1, 2005,
through December 31, 2006, if that employee continues to serve
in the same position. However, on January 1, 2007, the period
of reemployment to which the employee's original election
under AS 39.35.150(b) or (e) applied is considered terminated,
and, as to that employee,
(1) AS 39.35.150(b), as amended by sec. 7 of this
Act, or AS 39.35.150(e) applies; and
(2) if the employee continues as an active member,
that employee may not continue to receive benefit payments
unless the employer hires the employee as a result of the
competitive hiring process required by the applicable
subsection of AS 39.35.150(f), (g), and (h), added by sec. 8
of this Act, on or after January 1, 2007.
(b) A retired employee who was rehired and made an
election under AS 39.35.150(b) or (e) on or after November 3,
2004, may not continue to receive retirement benefits and
medical benefits under AS 39.35.150(b) or (e) after June 30,
2005. On July 1, 2005, the period of reemployment to which the
employee's original election under AS 39.35.150(b) or (e)
applied is considered terminated, and, as to that employee,
(1) AS 39.35.150(b), as amended by sec. 7 of this
Act, or AS 39.35.150(e) applies; and
(2) if the employee continues as an active member,
that employee may not continue to receive benefit payments
while an active member unless the employer hires the employee
as a result of the competitive hiring process required by the
applicable subsection of AS 39.35.150(f), (g), and (h), added
by sec. 8 of this Act, on or after January 1, 2007.
(c) This section does not apply to an employer who may be
required to provide health and medical benefits under AS
39.35.150(b), as amended by sec. 7 of this Act, regardless of
whether a member receives retirement medical benefits under
this section."
In addition, the amendment inserts a new bill section on page
eight, following line 15 as follows.
Sec. 20. Sections 2, 4, 5, and 7 of this Act take effect
July 1, 2005."
Furthermore, " sec. 19" is deleted in Sec. 20 page eight line 16
and replaced with "secs. 19 and 20".
Co-Chair Wilken moved Amendment #1.
Co-Chair Green objected for explanation.
MIKE TIBBLES, Deputy Commissioner, Department of Administration
explained that the amendment would modify Sections 14 and 15 of the
bill. Those sections would "establish three different groups of
individuals that have three separate termination dates for the
period going forward for their rehire." The previous committee
substitute, Version 24-LS0211\X, "did not clearly identify those
three different groups and did not clearly identify when their
period of reemployment would be terminated". This amendment would
clarify the issues pertinent to those three groups. The first group
would consist of retired individuals rehired prior to November 3,
2004. That was the date upon which the Department had notified
Public Employees Retirement System (PERS) and Teachers Retirement
System (TRS) employers in the State that the program would
terminate July 1, 2005.
Co-Chair Green asked for further discussion in regards to the
notification date, as she understood that an earlier notice had
been sent to PERS/TRS employers in September 2004.
Mr. Tibbles clarified that the Department's first notification had
been provided in November 2004. However, he noted that the
Department had received a Department of Law legal memorandum [copy
not provided] previous to that.
Co-Chair Green ascertained therefore, that the Department of Law
memorandum might have been received in September. However, the
Department of Administration notification letter had been
distributed in November.
Mr. Tibbles concurred.
2:48:47 PM
Co-Chair Green recapped the amendment discussion to this point.
Mr. Tibbles clarified that a retired rehiree hired prior to
November 3, 2004, could continue to receive retirement and medical
benefits from July 1, 2005 through December 31, 2006.
Co-Chair Green understood that that person would then be
terminated.
Mr. Tibbles affirmed that as of December 31, 2006 "the period of
employment for the purposes of the rehire program would be
terminated".
Mr. Tibbles communicated that that person would then have the
option to remain an employee and be subject to the status they held
before the rehire program began: they would contribute to the
system and accrue additional benefits for their retirement;
however, their retirement benefits would be suspended. Or, they
could terminate their employment and "continue to receive their
retirement benefits".
Co-Chair Green asked regarding the terms of the second group of
retired rehirees.
Mr. Tibbles explained that the second group of retired individuals
would have been rehired after November 3, 2004.
Co-Chair Green understood that this groups' participation in the
rehire program would be terminated on June 30, 2005. Thereafter,
they could continue as an active employee but would be unable to
continue to receive retirement benefit payments unless they were
rehired under AS 14.25.043(b).
2:50:45 PM
Mr. Tibbles stated that the period of re-employment for the second
group of individuals would end on June 30, 2005.
Mr. Tibbles stated that the third group of rehired retirees would
consist of those rehired after July 1, 2005. Those individuals
would be required to apply for their position through the
"sideboards" established in this bill. Those sideboards would
include such things as requiring the employer to document that
specific recruitment efforts had been made. In addition, the
employer would be required to contribute to the unfunded liability
for that employee at the same rate paid for all other employees and
they would be required to provide active health care for those
employees working full time.
2:52:45 PM
In response to a question from Co-Chair Green, Mr. Tibbles
explained that TERS employees are addressed in Sec. 14 and PERS
employees are addressed in Sec. 15 of the amendment. While the
conditions in both sections mirror each other, there is a different
set of recruitment standards for PERS employers.
Co-Chair Green asked the reason that PERS employees rehired prior
to November 3, 2004 would continue to receive their retirement
benefits until December 31, 2006.
Mr. Tibbles explained that, "those individuals were told in many
cases that they could continue to receive their benefit for the
period of their reemployment." That was a liability issue.
Co-Chair Green acknowledged.
2:54:01 PM
Co-Chair Wilken commented that while the concept of this bill is
good; it is a confusing bill to understand, as attested by the fact
that the Committee is continuing to struggle with the sequences of
the dates. Therefore, he suggested that a visual timeline be
developed that would specify the benchmark dates and other
pertinent information. This would assist other Legislators in
understanding the terms of the bill "as it marches ahead."
Co-Chair Green concurred.
Senator Stedman concluded that, as of January 1 2007, regardless of
whether an individual were a PERS or TRS member, the rehire benefit
program as currently defined, would end. At that point, any retired
rehiree must be subject to the proposed "new screening process".
Provisions in this bill would provide transition time to existing
rehired retirees.
2:55:53 PM
Mr. Tibbles agreed.
Senator Stedman communicated that he had initially understood that
the program would end earlier than currently proposed; however, he
accepted the "compromise" that has been reached.
Co-Chair Green removed her objection to the Amendment.
There being no further objection, Amendment #1 was ADOPTED.
Co-Chair Wilken moved to report the bill, as amended, from
Committee with individual recommendations and accompanying fiscal
notes.
There being no objection CS SS SB 24(FIN) was REPORTED from
Committee with new zero fiscal note dated March 2, 2005 from the
Department of Administration.
2:58:41 PM
SENATE CS FOR CS FOR HOUSE BILL NO. 75(RES)
"An Act relating to the powers and duties of the commissioner
of fish and game, Board of Fisheries, and Board of Game in
promoting and preserving fishing, hunting, and trapping in the
state; and repealing the power and duty of the commissioner of
fish and game to assist the United States Fish and Wildlife
Service in the enforcement of federal laws regarding fish and
game."
This bill was again before the Committee. [See Time Stamp 2:43:27
PM for the earlier Committee discussion on the bill.]
Senator Olson restated his earlier question regarding the affect
the changes made in the Senate Resources committee substitute might
have in regards to federal subsistence laws pertaining to the
Alaska National Interest Lands Conservation Act (ANILCA).
HEATH HILLIARD, Staff to Representative Mike Kelly, the bill's
sponsor, responded that, although the bill's sponsor was amenable
to the changes proposed in the Senate Resources Committee, such a
question had not been raised. While he was uncertain as to the
affect of the changes on the subsistence issue, his initial
perspective would be that the changes would have very little
impact.
3:00:14 PM
Senator Olson pointed out that the basis for his concern is the
question regarding consumptive and non-consumptive use, as
addressed in the April 4, 2005 Memorandum [copy on file] from
George Utermohle, Legislative Council, Division of Legal and
Research Services, Legislative Affairs Agency addressed to
Representative Mike Kelly.
Mr. Hilliard responded that the "the main point with regard to the
issue of consumptive and non-consumptive uses, is that Legislative
Intent language was included to mirror the language found in the
Alaska Constitution in regards to State resources. This is the
result of conversations that occurred in previous committees of
referral where user groups were concerned that the effort was "to
prioritize consumptive uses over non-consumptive uses… our response
to that" was that was not the intent. The bill packet contains
several legal opinions state support the position that the bill
would not prioritize either consumptive or non-consumptive use over
each other.
Senator Olson acknowledged.
3:01:07 PM
Mr. Hilliard pointed out that the only change made in the Senate
Resources committee substitute was the addition of language that
repealed the power of the commissioner of the Department of Fish
and Game to work with the United States Fish and Wildlife Service
in the enforcement of federal laws regarding fish and game. The
bill's sponsor was amenable to the addition of that language.
3:02:05 PM
Co-Chair Green recalled the Senate Resources Committee adding
similar language to other pieces of legislation over the years.
Another issue that has been addressed by that committee is the
issue of Alaska State Troopers "enforcing what are not typically
State Trooper activities". The reasons for both these issues being
addressed might have been the desire "not to subject State
employees to the federal role. That is not their role … their
obligation" is to address matters on State land.
Mr. Hilliard clarified that the action conducted by the Senate
Resources Committee would not "preclude the commissioner from
participating, it simply removes that as a mandate from the powers
and duties."
Co-Chair Green asked whether the State Constitution specifies the
duties of each State department's commissioner.
Mr. Hilliard replied that State Statute, rather than the State's
Constitution, outlines commissioners' responsibilities.
Co-Chair Green remarked that the Constitution includes the role of
department rather than the responsibilities of the commissioner.
Mr. Hilliard agreed.
Senator Hoffman, commenting that Alaska Natives have the longest
heritage of the activities addressed in this bill, inquired as to
how the sponsor would "perceive" to promote hunting, fishing, and
trapping and to preserve the heritage.
Mr. Hilliard responded that specific instructions in this regard
are not outlined in the bill. While the Department of Fish and Game
feels that they currently promote these activities, they have
determined that the language provided in this bill would make their
Statutory authority and requirement clearer. No specific ideas have
been conveyed to the Department. The desire of the Legislation is
to clarify that the heritage of hunting, fishing, and trapping
should be promoted and preserved.
Co-Chair Green asked Senator Ralph Seekins, chair of the Senate
Resources Committee, to comment in regards to the removal of the
language in Sec. 2(a)(1) page two, lines five through eight that
required the Commissioner of the Department of Fish and Game to
assist the United States Fish and Wildlife service in the
enforcement of federal laws and regulations pertaining to fish and
game.
3:06:15 PM
SENATOR RALPH SEEKINS, Chair, Senate Resources Committee, explained
that much focus was provided to State Statutes that specify that
the State should not force the Department of Fish and Game, and,
the Department's Commissioner to assist the United States Fish and
Wildlife Service. AS 16.05.050. The Powers and Duties of the
Commissioner. states that "the Commissioner has…but not by way of
limitation, the following powers…." The result of the change
recommended by the Senate Resources Committee would be to eliminate
the requirement that the Commissioner must assist the United States
Fish and Wildlife Service in the enforcement of federal laws and
regulations pertaining to fish and game.
3:07:38 PM
Senator Seekins concluded therefore that the elimination of Sec. 2
19(a)(1) would provide the Commissioner the option, rather than
requiring him, to assist. The Statutory requirement that the
Commissioner must assist would be removed.
In response to a question from Senator Hoffman, Senator Seekins
reiterated that "the Commissioner has, 'but not by way of
limitation' the following powers and duties". It would be "implied"
that the Commissioner would have the option to assist. The
requirement that the Commissioner assist would be removed.
Co-Chair Green expressed that the option would not be "enumerated
in the listing".
Senator Hoffman questioned the inclusion of the language "repealing
the power and duty of the commissioner of fish and game to assist
the United States Fish and Wildlife Service in the enforcement of
federal laws regarding fish and game." in the bill's title on page
one beginning on line three.
3:09:15 PM
Senator Seekins voiced being unsure of the reason for the title
change. The purpose of the Senate Resources Committee was "to
simply repeal" Sec. 2(a)(1) and provide the option to assist.
Co-Chair Green asked whether Senator Seekins had offered the
amendment to remove Sec. 2(a)(1).
Senator Seekins affirmed that he had offered the amendment.
Co-Chair Green asked whether there might be alternate language to
that included in the title of the Senate Resources committee
substitute.
Senator Seekins suggested replacing "repealing the power and" with
"repealing the duty" in the bill's title page one, line three.
Senator Hoffman suggested that the language added to the original
bill's title in regards to the commissioner be entirely removed.
Senator Seekins understood that a bill's title must reflect the
content of the bill.
3:11:10 PM
Following a brief discussion with Co-Chair Green and Senator
Hoffman, Senator Seekins ascertained that the original bill title
would accommodate the changes made in the content of the bill.
Co-Chair Green asked for confirmation, that Senator Seekins would
support reverting to the original bill title.
Senator Seekins affirmed.
Amendment # 1: This amendment restores the original title of the
bill by eliminating the language "; and repealing the power and
duty of the commissioner of fish and game to assist the United
States Fish and Wildlife Service in the enforcement of federal laws
regarding fish and game." as specified in the bill's title, page
one lines three through five, The revised title would read as
follows.
"An Act relating to the powers and duties of the commissioner
of fish and game, Board of Fisheries, and Board of Game in
promoting and preserving fishing, hunting and trapping in the
state."
Senator Hoffman moved to adopt Amendment #1.
Co-Chair Green clarified that approval of the amendment would
revert the bill's title back to the original language.
There being no objection, Amendment #1 was ADOPTED.
3:13:03 PM
Co-Chair Wilken moved to report the bill, as amended, from
committee with personal recommendations and accompanying fiscal
note.
There being no objection, SCS CS HB 75(FIN) was REPORTED from
Committee with previous zero fiscal note #1 dated March 14, 2005
from the Department of Fish and Game.
3:13:26 PM
CS FOR HOUSE BILL NO. 15(L&C) am
"An Act relating to outdoor recreation lodge alcoholic
beverage licenses; relating to transfer of certain beverage
dispensary licenses issued before June 6, 1985; and providing
for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
MIKE PAWLOWSKI, Staff to Representative Kevin Meyer, the bill's
sponsor, explained that this bill would establish liquor licenses
for outdoor recreation lodges. A conceptual amendment, offered by
Co-Chair Wilken, had been approved at the previous meeting in order
to clarify that the business must be a licensed establishment.
Co-Chair Green agreed that that qualifier is important.
Mr. Pawlowski informed the Committee that the sponsor also agreed.
Co-Chair Wilken moved to report the bill, as amended, from
committee with individual recommendations and accompanying fiscal
notes.
There being no objection the bill, SCS CS HB 15(FIN) was REPORTED
from Committee with two previous fiscal notes: zero fiscal note #1
dated January 24, 2005 from the Department of Fish and Game and
zero fiscal note #2 dated January 24, 2005 from the Department of
Public Safety.
3:15:38 PM
CS FOR HOUSE BILL NO. 19(RES)
"An Act relating to pesticides and broadcast chemicals; and
providing for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
MIKE PAWLOWSKI, Staff to Representative Kevin Meyer, the bill's
sponsor, informed the Committee that a corrected Department of
Environmental Conservation fiscal note, dated April 28, 2005 had
been distributed. While the amounts reflected in the fiscal note
were not altered, clarifying changes were made in the Analysis
section of the note in regards to the amounts of chemicals
registered in the State. The fees generated from the program would
replace the general fund obligation by the year 2007.
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal note.
There being no objection, CS HB 19(FIN) was REPORTED from Committee
with new $221,600 fiscal note dated April 28, 2005 from the
Department of Environmental Conservation.
3:17:07 PM
HOUSE BILL NO. 230
"An Act authorizing the making of loans for upgrade of
commercial fishing tender vessels and gear."
This was the second hearing for this bill in the Senate Finance
Committee.
IAN FISK, Staff to Representative Bill Thomas, the bill's sponsor,
asked that the bill be set aside awaiting the arrival of an
additional testifier.
Co-Chair Green ordered the bill SET ASIDE.
[NOTE: This bill was readdressed later in the meeting. See Time
Stamp 3:26:24 PM.]
3:18:10 PM
SENATE CS FOR HOUSE BILL NO. 35(L&C)
"An Act extending the termination date of the State Board of
Registration for Architects, Engineers, and Land Surveyors;
extending the term of a temporary member of the State Board of
Registration for Architects, Engineers, and Land Surveyors;
and providing for an effective date."
This bill, which had been reported from Committee [See Time Stamp
2:40:07 PM], was again before the Committee.
AT EASE 3:19:12 PM / 3:20:49 PM
VIC KOHRING, the bill's sponsor, stated that this legislation would
extend the Board of Registration for Architects, Engineers, and
Land Surveyors until June 2009. The Division of Legislative Audit
recommended this four-year extension.
Co-Chair Green informed the sponsor that the Committee, being
unaware of a pending amendment, had reported out the bill.
Co-Chair Wilken moved to RESCIND the action of reporting the bill
from Committee.
There being no objection, the action of REPORTING the bill from
Committee was RESCINDED.
Co-Chair Green stated that the Labor & Commerce Committee (L&C)
version of the bill was again before the Committee for
consideration.
3:22:00 PM
SAM KITO, Chair, Legislative Liaison Committee for the Alaska
Professional Design Council, informed the Committee that a
forthcoming amendment would correct an inadvertent drafting
omission in the L&C committee substitute. The proposed language
would provide transition language pertaining to the temporary
Landscape Architect Board Member position.
Conceptual Amendment #1: This amendment inserts a new section into
the bill as follows.
Sec. 3. The uncodified law of the State of Alaska is amended
by adding a new section to read:
TRANSITION: TEMPORARY BOARD MEMBER. The term of office of a
person holding a temporary position on the Board of
Registration of Architects, Engineers, and Lang Surveyors
before July 1, 2005, expires June 30, 2005. The person is
eligible for reappointment under sec. 2 of this Act. The
temporary member may remain in the position until the governor
names a new appointee or reappoints the temporary member.
Co-Chair Wilken moved to adopt Amendment #1.
There being no objection, Amendment #1 was ADOPTED.
Co-Chair Wilken moved to report the bill, as amended, from
Committee with individual recommendations and accompanying fiscal
note.
There being no objection, SCS HB 35(FIN) was REPORTED from
Committee with previous fiscal note #1 dated January 25, 2005 from
the Department of Commerce, Community and Economic Development.
While there would be zero fiscal impact in FY 06, there would be
fiscal note beginning in FY 07.
3:24:18 PM
HOUSE BILL NO. 136
"An Act restricting the authority of a court to suspend
execution of a sentence or grant probation in prosecutions for
driving while under the influence and prosecutions for refusal
to submit to a chemical test; and allowing a court to suspend
up to 75 percent of the minimum fines required for driving
while under the influence and for refusal to submit to a
chemical test if the defendant successfully completes a court-
ordered treatment program."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Green stated that the bill would allow a portion of the
offender's fine to be "diverted" to pay for the costs of the
offender's court ordered treatment program. It would also require
the Court to adhere to a specified minimum sentence for the crimes
addressed in the bill.
Co-Chair Green noted that a House Judiciary Committee Letter of
Intent accompanied the bill.
HEATHER NOBREGA, Staff to Representative Norm Rokeberg, the bill's
sponsor, communicated that the Letter of Intent had not been
addressed during the previous discussion on the bill.
Co-Chair Green stated that the Letter of Intent should accompany
the bill when it moved from Committee.
3:25:34 PM
Co-Chair Wilken moved to report the bill and the House Judiciary
Letter of Intent from Committee with individual recommendations and
accompanying fiscal notes.
There being no objection, HB 136, accompanied by the House
Judiciary Letter of Intent adopted April 12 2005, was REPORTED from
Committee with zero fiscal note #1 dated March 21, 2005 from the
Department of Corrections; zero fiscal note #2 dated March 17, 2005
from the Alaska Court System; zero fiscal note #3 dated March 18,
2005 from the Department of Public Safety; indeterminate fiscal
note #4 dated March 21, 2005 from the Department of Administration;
indeterminate fiscal note #5 dated March 20, 2005 from the Civil
Division, Department of Law; and indeterminate fiscal note #6 dated
March 20, 2005 from the Criminal Division, Department of Law.
3:26:24 PM
HOUSE BILL NO. 230
"An Act authorizing the making of loans for upgrade of
commercial fishing tender vessels and gear."
AT EASE 3:27:13 PM /3:27:15 PM
The bill was again before the Committee.
Co-Chair Green stated that the bill had been held in order to allow
the Department of Commerce, Community and Economic Development to
address a concern voiced by Co-Chair Wilken.
Co-Chair Wilken restated his concern that the State, through its
"quasi-private entity", the Commercial Fisheries Revolving Loan
Fund (CFRLF) in the Department of Commerce, Community and Economic
Development, might be competing with private enterprise.
3:28:34 PM
IAN FISK, Staff to Representative Bill Thomas, the bill's sponsor,
communicated that the Commercial Fishing and Agricultural Bank
(CFAB), which operates the CRFLF, was created to fill a void being
experienced by a sector of the fishing industry. That void was a
lack of financing options being available in the private sector.
The goal of CFAB is to promote and enhance the quality of Alaska
seafood.
3:29:07 PM
GREG WINEGAR, Director, Division of investments, Department of
Commerce, Community and Economic Development, explained that the
clientele served by CFAB is "for the most part, different than
those" who could receive financial assistance through the private
sector". The program being offered has a lower interest rate than
that offered by other financial entities because the State,
supported by years of discussion with such entities as the Salmon
Industry Task Force, has determined that "improving the quality" of
the State's products is important. The rate being offered is "prime
minus two"; the availability of this rate has encouraged fishermen
to make improvements in their operations.
Senator Stedman noted that the majority of the financial
institutions offer a rate of "prime plus something".
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, HB 230 was REPORTED from Committee with
previous zero fiscal note #1 dated March 25, 2005 from the
Department of Commerce, Community and Economic Development.
3:30:53 PM
CS FOR HOUSE BILL NO. 119(FIN)
"An Act extending the termination date of the Alaska regional
economic assistance program; and providing for an effective
date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Green stated that this hearing was scheduled to address
any continuing Committee concerns.
Co-Chair Wilken asked regarding the Alaska regional economic
assistance program's proposed termination date; specifically
whether the program could be subject to a three or four-year
termination date rather than the five-year termination date
specified in the bill.
KACI SCHRODER, Staff to Representative Bill Thomas, Co-Chair, House
Community & Regional Affairs Committee, voiced that a shorter
termination date would be acceptable.
Co-Chair Wilken asked for confirmation that a shorter timeframe had
been discussed and would be acceptable to the House Community &
Regional Affairs Committee.
Ms. Schroder assured that a three-year termination date would be
acceptable.
Conceptual Amendment #1: This amendment replaces the year "2010"
with "2008" in Section 1, subsection Sec. 2 page one line six as
follows.
Sec. 2 AS 44.33.895 is repealed July 1, 2008.
Co-Chair Wilken moved to adopt Amendment #1. The effect of this
amendment would be to specify a three-year rather than a five-year
termination date.
There being no objection, Conceptual Amendment #1 was ADOPTED.
Co-Chair Wilken moved to report the bill, as amended, from
Committee with individual recommendations and accompanying fiscal
notes.
There being no objection, SCS CS HB 119(FIN) was REPORTED from
Committee with a new $650,000 fiscal note dated May 4, 2005 from
the Alaska Industrial Development & Export Authority, Department of
Commerce, Community and Economic Development and new $650,000
fiscal note dated May 4, 2005 from the Division of Community
Advocacy, Department of Commerce, Community and Economic
Development.
3:33:20 PM
RECESSED TO THE CALL OF THE CHAIR 3:33:55 PM: / 5:20:00 PM
ADJOURNMENT
Co-Chair Green adjourned the meeting at 05:20 PM.
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