Legislature(2007 - 2008)SENATE FINANCE 532
03/29/2008 10:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB233 | |
| HB 233 | |
| HB373 | |
| HB19 | |
| HB75 | |
| HB338 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 19 | TELECONFERENCED | |
| + | HB 75 | TELECONFERENCED | |
| + | HB 373 | TELECONFERENCED | |
| + | HB 338 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 233 | ||
SENATE FINANCE COMMITTEE
March 29, 2008
10:09 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 10:09:49 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Derek Miller, Staff, Representative Mike Kelly; Eddy Jeans,
Director, Education Support Services, Department of
Education and Early Development; Representative Kevin Meyer,
Sponsor; Mike Pawlowski, Staff, Representative Kevin Meyer;
Narda Butler, Douglas; Rodney Hebert, Tanana; Whitney
Brewster, Director, Division of Motor Vehicles;
Representative Jay Ramras, Sponsor; Jane Pierson, Staff,
Representative Jay Ramras; Representative Mary Nelson,
Sponsor; Del Conrad, CEO, Rural Alaska Fuel Services (RAFS)
PRESENT VIA TELECONFERENCE
Dan Bockhorst, Manager, Ketchikan Gateway Borough; Julie
Clements, Director of State Legislative Affairs, MADD; Dale
Fox, President, CEO, CHARR; Diane Casto, Section Manager,
Prevention and Early Intervention Section, Division of
Behavior Health, Department of Health and Social Services;
Dale Fox, President, CHARR; Sarah Fisher-Goad, Deputy
Director of Operations, Alaska Energy Authority, Department
of Commerce, Community and Economic Development
SUMMARY
SCS CSHB 233(L&C)
"An Act relating to giving notice of unclaimed net
margin distributions made by electric and
telephone cooperatives."
SCS CSHB 233 (FIN) was REPORTED out of Committee
with a "do pass" recommendation and with fiscal
note #2 by the Department of Commerce, Community
and Economic Development.
HB 373 "An Act extending specified public school bond
debt reimbursement; and providing for an effective
date."
SCS HB 373 (FIN) was HEARD and HELD in Committee
for further consideration.
SCS CSHB 19(JUD)
"An Act relating to ignition interlock devices; to
limited driver's license privileges; and to
ignition interlock limited driver's license
privileges."
SCS CSHB 19 (JUD) was HEARD and HELD in Committee
for further consideration.
CSHB 75(STA)
"An Act relating to driver's licenses and to
alcohol and drug awareness and safety testing."
CSHB 75(STA) was heard and HELD in Committee for
further consideration.
CSHB 338(FIN)
"An Act relating to the bulk fuel bridge loan fund
and program, power project fund, and the bulk fuel
revolving loan fund; authorizing the Alaska Energy
Authority to borrow money from the power project
fund for the bulk fuel revolving loan fund and to
repay money borrowed; and providing for an
effective date."
CSHB 338 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with zero fiscal
note #1 by the Department of Commerce, Community
and Economic Development, and with fiscal note #2
by the Department of Commerce, Community and
Economic Development.
10:10:11 AM
SENATE CS FOR CS FOR HOUSE BILL NO. 233(L&C)
"An Act relating to giving notice of unclaimed net
margin distributions made by electric and telephone
cooperatives."
DEREK MILLER, STAFF, REPRESENTATIVE MIKE KELLY, provided a
brief overview of SCS CSHB 233. He explained that the
provision would allow utility cooperatives to use the
internet to inform members of any capital credit due.
10:13:05 AM
In response to Senator Dyson, Mr. Miller said he contacted
the director of the Permanent Fund Dividend Division and was
informed that the Division could not provide the address
lists to the electric utilities.
Senator Dyson reported that his staff uses the Alaska Voters
List.
10:15:06 AM
Senator Dyson offered a conceptual amendment on page 1, line
12, to allow the use of the Alaska's Voter list to locate
persons owed a refund.
Co-Chair Stedman OBJECTED for purposes of discussion. He
restated the conceptual amendment.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, the conceptual amendment was adopted.
10:16:16 AM
Co-Chair Hoffman MOVED to REPORT SCS CSHB 233 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SCS CSHB 233 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with fiscal note #2 by the
Department of Commerce, Community and Economic Development.
10:17:16 AM
HOUSE BILL NO. 373
"An Act extending specified public school bond debt
reimbursement; and providing for an effective date."
Co-Chair Hoffman MOVED to ADOPT SCS HB 373, labeled 25-
LS13040/C, Mischel, 3/24/08, as the working document.
Co-Chair Stedman OBJECTED for purposes of discussion.
10:18:07 AM
EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, explained that the
Committee Substitute for HB 373 amends AS 14.11.008(b), the
participating share for school districts to address major
maintenance and school construction programs. He informed
the committee that the table was set into statute in 1993.
Since then, property values have increased around the state.
The Alaska Municipal League requested that the state update
the table to reflect increases in property values.
Co-Chair Stedman WITHDREW his OBJECTION.
There being NO further OBJECTION, 25-LS13040/C was adopted.
10:21:02 AM
REPRESENTATIVE KEVIN MEYER, SPONSOR, explained that HB 373
extends the sunset of the current school bond dept
reimbursement program from November 2008, to November 30,
2010. Projects on the Department of Education and Early
Development approved list would still be reimbursed at 70
percent; other projects would be reimbursed at 60 percent.
The State of Alaska's school bond debt reimbursement program
is an important partnership between communities and the
state, where each shares a portion of the cost of school
construction. He underlined that without this assistance
many municipalities would not be able to afford school
construction costs.
Co-Chair Hoffman felt there should be a long-term solution
for what the provision addresses. He emphasized the
importance of urban and rural schools being funded on an
equitable basis.
Representative Meyer agreed with Co-Chair Hoffman.
10:24:33 AM
DAN BOCKHORST, MANAGER, KETCHIKAN GATEWAY BOROUGH testified
via teleconference in support of the bill. He noted that
when the current law was enacted in 1993, it reflected a
rational public policy choice that municipal school
districts with greater fiscal resources should pay a higher
share of local major maintenance costs. He explained that,
since then, inflation has increased at 42 percent over the
past 15 years, and the decline in student enrollment has
increased significantly. Due to these factors, both urban
and rural districts have suffered unintended consequences.
Mr. Bockhorst provided an example: Kluwock has had a six-
fold increase in its major maintenance cost share over the
past 15 years. Initially, Kluwock paid 5 percent of major
maintenance costs. Currently, the local share is at 30
percent. For the past 14 years Ketchikan has had to
shoulder the same 30 percent share that Kluwock now faces.
Ketchikan will still pay major maintenance costs unless the
CS is passed. The increase facing Ketchikan is not due to
an increase in its tax base, it is due to the decline in
student enrollment - more that 16 percent since 1993. If
moderate relief is granted through the CS, local governments
will continue to shoulder a substantial burden: Ketchikan
will still pay $3 million as its share of major maintenance
costs in the upcoming year. Without the CS, the figure will
increase by $500,000.
Mr. Bockhurst urged support of the CS in order to provide
needed relief to both urban and rural districts throughout
Alaska.
10:28:00 AM
Co-Chair Hoffman asked Mr. Jeans to convey the urgency of
passing the legislation this year. Mr. Jeans explained that
the law is to sunset in November of 2008. If the sunset is
not extended now, then the legislature would not be able to
address the issue until the next session in January.
Co-Chair Hoffman asked what the impact to school districts
would be, in terms of construction planning and budgeting,
if the legislation were not passed this session. He further
queried if any school districts had expressed the need for
passage of the bill due to plans to move forward with
specific bond issues. Mr. Jeans reported that the only
district that had contacted him regarding the sunset of the
bill was the Juneau School District. He elaborated that the
Juneau School District intends to take projects before
voters this year. If the legislation is not passed the
district would have waited a year.
10:30:31 AM
In response to Senator Dyson, Mr. Jeans said the reference
made by Mr. Brockhurst has to do with the participating
share under the grant program. Currently, Klawock has
participating shares at 30 percent. With the enactment of
the CS, the participating share would drop to 10 percent.
This has to do with the property value per child.
Senator Dyson asked how many other communities would qualify
at 10 percent. Mr. Jeans clarified that Klawock is the only
community whose share decreases to 10 percent.
Senator Huggins asked if any communities would see a
participating share increase. Mr. Jeans responded that
under the CS the share would only decrease. He further
clarified that the CS does not change current law for the
debt reimbursement program, it only extends it for two
years.
Co-Chair Stedman noted that the enrollment decline is a
significant factor when addressing funding for schools.
10:33:25 AM
In response to Senator Dyson, Representative Meyer said it
is always assumed there will be a state match. The current
law carries through to November 2008. Bonds passed in April
will be covered under the CS. He also responded to an
earlier question regarding the effects of waiting a year to
pass legislation. If action on the provision is postponed,
it will have an effect on the Anchorage election next year,
but has no effect this year.
10:34:03 AM
Co-Chair Hoffman commented that if the CS were to pass,
there would be plenty of time before the voting cycle.
Senator Dyson felt that if the bill passed in this session,
it would substantiate the state commitment to reimburse
school districts. He maintained that with the uncertain
stability of high oil prices, he supports a two or three
year sunset.
SCS HB 373(FIN) was HEARD and HELD in Committee for further
consideration.
SENATE CS FOR CS FOR HOUSE BILL NO. 19(JUD)
"An Act relating to ignition interlock devices; to
limited driver's license privileges; and to ignition
interlock limited driver's license privileges."
10:36:39 AM
REPRESENTATIVE KEVIN MEYER, SPONSOR, provided an overview of
SCS CSHB 19(JUD), which provides for an ignition interlock
device for a person who has received a DUI. He detailed the
penalties involved with receiving a DUI. He pointed out the
potential failings of a limited driver's license. The
intent of the bill is to ensure a sober driver.
Representative Meyer noted that the Senate Judiciary
Committee amended the bill to extend the interlock program
through the probationary period of the offender. He
supported the change noting it was a deterrent to repeat
offenses. Similar programs implemented in other states have
resulted in an up to 80 percent reduction of repeat
offenses. He informed the Committee that in Alaska about
5000 DUI's are issued every year, with one-third being
repeat offenders.
10:41:07 AM
Co-Chair Stedman expressed concern regarding the cost of the
interlock device and offenders not having funds to purchase
the device.
Representative Meyer acknowledged the expense and informed
the Committee that the court can waive the DUI fine in lieu
of purchase of the interlock device.
Senator Elton questioned Section 2, which states that the
courts can't enforce a municipal ordinance without a
provision imposing ignition interlock devices. He wondered
if an unintended consequence might be that the
municipalities would let the Department of Law prosecute
under state statutes rather than under municipal ordinances.
If this were to occur there would be a fiscal note from the
Department of Law to reflect the cost.
10:44:06 AM
MIKE PAWLOWSKI, STAFF, REPRESENTATIVE KEVIN MEYER, explained
that though the state had passed ignition interlock devices
for high BAC drivers, it was never recommended that the
municipality pass an ordinance. Section 2 came into the
bill from the Senate Judiciary Committee in the interest of
consistency in statute regarding traffic offenses. He
indicated that he would talk with the Department of Law
regarding the issue and report back to the Committee.
10:45:00 AM
Senator Dyson asked about someone who "knowingly" loans a
car to someone who is court ordered to have the interlock
device.
Co-Chair Meyer understood that if a person knowingly allowed
a person who had been convicted of a DUI to drive their car,
the owner of the car is at fault.
Senator Dyson asked if a person convicted of a DUI gets a
mark on their driver's license. Representative Meyer
confirmed that they would.
Senator Dyson questioned the sections regarding the
forfeiture of a vehicle.
10:48:08 AM
Co-Chair Stedman noted that the bill is in its first hearing
and there will be an opportunity for members to get
questions and concerns answered by the sponsor.
Senator Elton asked why the bill would only apply in certain
communities and opined that if the issue is a matter of
public safety, it should apply to all communities.
Representative Meyer said it would be the intent to apply
the interlock device requirement statewide. He explained
that changes were made in Senate Judiciary making exceptions
for those areas that aren't required to have insurance. He
added that vendors are willing and able to install the
interlock device to any car, anywhere, throughout the state.
10:49:53 AM
Mr. Pawlowski said he would provide the list of communities
published by the Department under AS 28.22.011(b) referenced
in Section 7.
Senator Thomas noted the potential loophole between what the
court orders and how the Division of Motor Vehicles
responds, in terms of returning the license to the offender.
They may fulfill the requirements of the court order, but
then there may be a problem of getting the license back.
10:51:21 AM
Co-Chair Stedman listed the fiscal notes: a zero note from
the Department of Transportation and Public Facilities, an
indeterminate note from the Department of Corrections, and a
note from DMV for $76,000 for one new position.
10:53:03 AM
JULIE CLEMENTS, DIRECTOR OF STATE LEGISLATIVE AFFAIRS, MADD
testified via teleconference in support of SCS CSHB 19. The
goal for MADD is to have ignition interlock devices
stipulated in law for convicted offenders. The organization
would ultimately like a mandate for anyone convicted of a
DUI with a .08 BAC or higher to be required to use an
ignition interlock device. She listed studies to back up
MADD's view.
10:57:50 AM
DALE FOX, PRESIDENT, CEO, CHARR testified via teleconference
in support of SCS CSHB 19. He related that 65 percent of
highway fatalities are committed by those with 1.5 blood
alcohol and above, and by those who have committed multiple
DUI's. He suggested one small change to the bill: to have
the hardcore, repeat offenders be required to use the
ignition interlock device. He thought that first timers
should be excluded from the provision.
11:00:17 AM
NARDA BUTLER, DOUGLAS, explained that there is a significant
amount of data that proves the effectiveness of the devices.
She purported that the bill is not about punitive sanctions,
but rather an issue of public safety. She outlined specific
changes and suggested removal of the words "during
probation". She questioned if the bill would address the
population of individuals most recently convicted of driving
with a license revoked or suspended subsequent to a DUI.
She suggested a performance-based exit and to include
felons.
11:07:33 AM
RODNEY HEBERT, TANANA, testified that the bill only covers
misdemeanors, not felons, and felt that felons should be
included in the bill.
11:13:23 AM
WHITNEY BREWSTER, DIRECTOR, DIVISION OF MOTOR VEHICLES,
stated that DMV does support the bill. She addressed
Senator Thomas's question and said there will be no change
in the coordination between the courts and DMV due to this
bill.
11:15:18 AM
Senator Huggins voiced concern with Section 7. He question
what would happen if an offender moved to another community
that was not on the list.
Ms. Brewster said that the Department is in favor of the
application on a statewide basis. She thought that a person
who moved to an area where the device was not required would
not have to comply.
Co-Chair Meyer made closing comments saying he would provide
answers to questions asked by the Committee.
Senator Elton noted the suggestion to provide for the
extension of the use of an interlock device if someone
attempts to drive drunk before the end of their probation.
SCS CSHB 19 (JUD) was HEARD and HELD in Committee for
further consideration.
11:18:53 AM
CS FOR HOUSE BILL NO. 75(STA)
"An Act relating to driver's licenses and to alcohol
and drug awareness and safety testing."
REPRESENTATIVE JAY RAMRAS, SPONSOR, presented the bill. He
shared personal experience in the hospitality industry and
his concern about drunk drivers. He related the current
process of awarding a driver's license to young people. He
outlined DMV's testing procedure at different ages. When a
driver turns 21 there is no further testing. He maintained
that three groups would benefit by the passage of the bill:
the hospitality industry, young people between 21-25 with a
minor's driver's license, and average citizens.
Representative Ramras explained that the bill would draw a
much brighter line between minors and adults and stop the
issue of "leakage". It would also educate those who are of
the drinking age by developing an eight question test with
the object of bringing awareness of alcohol safety and laws
prior to receiving an adult Alaska driver's license.
11:31:41 AM
Co-Chair Stedman asked if the penalties for serving a minor
alcohol were substantial.
Representative Ramras defined the penalties for those who
serve a minor. The first offense is a class A misdemeanor;
the second offense is a class C felony. He maintained that
HB 75 would provide a remedy to draw a brighter line between
minors and adults. It calls for the automatic expiration of
a driver's license when a person turns 21 and helps combat
the issue of minors consuming alcohol.
11:35:50 AM
Co-Chair Stedman clarified that a portion of the bill would
require a person to update their license when they turn 21.
They would have an opportunity to have the questions on the
test repeated until they successfully pass the test.
Representative Ramras agree that that would be the
legislative intent. He emphasized the need for the alcohol
education portion of the bill.
11:37:13 AM
Senator Elton referred to Section 1 and noted that the
provision only applies to Alaskans who hold under 21
licenses.
Representative Ramras agreed. He noted that the original
intent was to have all Alaskans take the test. That element
of the bill was deleted.
Senator Elton voiced concern that the standard would apply
to a 21-year-old Alaskan, but not to a 21-year-old who moved
to Alaska with a minor's driver's license.
11:39:48 AM
Senator Huggins asked how military people are dealt with in
the bill.
JANE PIERSON, STAFF, REPRESENTATIVE JAY RAMRAS, explained
that military are covered under AAC exemptions.
Senator Huggins wondered how other driving impairment drugs
are handled.
11:41:17 AM
Representative Ramras referred to page 1, line 10, which
says, "relating to alcohol, drugs, and driving". He added
that it is also covered in the Driver's Manual and as part
of the test. Senator Huggins noted that the test only
addresses alcohol.
Representative Ramras said it is the intent that the test
would address all drugs and alcohol. He said he was
amenable to amendments to the bill. He explained that all
persons could not be included and the focus should be on
educating young adults.
Co-Chair Stedman noted two fiscal notes: a zero fiscal note
from the Department of Health and Social Services, and a
fiscal note for $30,000 from the Department of
Administration - DMV.
11:44:06 AM
DIANE CASTO, SECTION MANAGER, PREVENTION AND EARLY
INTERVENTION SECTION, DIVISION OF BEHAVIOR HEALTH,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, testified via
teleconference in support of HB 75. The bill addresses a
critical issue - reducing underage access and consumption of
alcohol and promoting responsible consumption upon reaching
21. HB 75 is in line with the state plan and with
nationwide best practices. She agreed with the multi-
strategy approach toward reducing underage drinking,
especially education.
11:47:22 AM
DALE FOX, PRESIDENT, CABARET, HOTEL, RESTAURANT, AND
RETAILER'S ASSOCIATION (CHARR) testified via teleconference
in strong support of Section 2 of the bill, which makes it
easier for the hospitality industry. It assists in
developing the bright line which helps people in the
industry make the right call. Mr. Fox concluded that CHARR
is neutral on Section 1, but supports the overall bill.
11:49:06 AM
WHITNEY BREWSTER, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF ADMINISTRATION, said that DMV supports HB 75.
DMV would develop a test with the help of others, such as
Behavioral Health, with eight questions that would address
alcohol and drug awareness. The test would be statewide and
could be retaken until the individual passes it. She
reported that there is an exception policy in place which
would address Senator Huggins's concern about military
personnel, as well as those away at school.
11:50:17 AM
Senator Elton asked if this is a one-time cost. Ms.
Brewster said that it is a one-time cost for a programming
change to allow for an expiration date. The second part of
the fiscal note is for loading the test onto the machines.
She reported that DMV does not anticipate on-going costs.
Senator Elton asked if the test is graded by the machine.
Ms. Brewster replied that it is electronic.
Senator Olson asked what types of provisions are made for
rural students. He noted that the DMV is closed in Nome.
Ms. Brewster reported that the Nome office is now filled.
She understood that the bill would not prohibit someone from
st
coming in before their 21 birthday to take the exam.
11:53:02 AM
Representative Ramras noted that the payment fee for a new
license would pay for the program. He concluded that this
bill is an excellent strategy for combating the problem of
drinking and driving.
CSHB 75(STA) was heard and HELD in Committee for further
consideration.
AT EASE: 11:54:13 AM
RESUME: 12:08:25 PM
CS FOR HOUSE BILL NO. 338(FIN)
"An Act relating to the bulk fuel bridge loan fund and
program, power project fund, and the bulk fuel
revolving loan fund; authorizing the Alaska Energy
Authority to borrow money from the power project fund
for the bulk fuel revolving loan fund and to repay
money borrowed; and
REPRESENTATIVE MARY NELSON, SPONSOR, related that the bill
was an idea brought forth by the Alaska Energy Authority
(AEA). She reported that old statutes needed updating. The
primary idea in the bill is in Section 2, which authorizes
AEA to make loans from the Power Project Fund (PPF) to the
Bulk Fuel Revolving Loan Fund (BFRLF). Presently, there is
a lot of pressure on AEA due to the high price of fuel to
provide more loans from BFRLF. The bill would limit the
amount AEA could borrow from PPF to the BFRLF to the lesser
of $2 million, or 10 percent of the PPF cash balance on June
30 of the preceding fiscal year. It provides that AEA can
not borrow from PPF if the cash balance of PPF is less than
5 million.
Representative Nelson reported that the bill also deleted
references to nonprofit marketing cooperatives as potential
borrowers and deletes PPF loan provisions for potable water
supply projects.
Representative Nelson related that Section 3 provides that
power projects are subject to the same limitations on
interest and other restrictions as are loans for power
projects. Section 1 establishes the BFRLF as statutorily
able to make loans to communities. It is a separate loan
program established in 2004 by the Denali Commission,
especially for communities that are struggling
administratively. She explained the problems surrounding
statutory authority and third party contract relationships.
Representative Nelson reported on the successes of the
BFRLF.
12:14:21 PM
SARAH FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA
ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT testified via teleconference that HB
338 authorizes AEA to make loans from PPF to BFRLF. She
related that the BFRLF provides communities of 2,000 or less
a financing source to purchase an annual supply of fuel.
AEA currently only commits to loans based on the cash
available and does not consider loans receivable prior to
committing a loan. HB 338 would provide a backstop source
of funds to allow AEA to better meet the needs of the
borrowers.
Ms. Fisher-Goad reported that two years ago there was a
delay in committing funds until loan repayments - the actual
cash - was received by AEA. This made it difficult to be
able to provide the commitments for borrowers to plan for
fuel delivery. HB 338 does limit the lending ability by
restricting the amount based upon the June 30 cash balance
of PPF and is limited by the lesser of $2 million or 10
percent. On 2/29 the cash balance in the PPF was $10.8
million. If the bill were in effect today there would be a
little over $1 million as a backstop funding source. If PPF
falls below $5 million, AEA would suspend the borrowing
capability.
Ms. Fisher-Goad reported on housekeeping measures in the
bill.
12:16:36 PM
Senator Huggins asked if the bill increases risk to AEA.
Ms. Fisher-Goad said she believed it was risk neutral. The
loans are short term and the delinquency rate is very low.
12:17:24 PM
DEL CONRAD, CEO, RURAL ALASKA FUEL SERVICES (RAFS), said
that since the inception of the BFRLF in 2004, about 12
communities were unable to fund their fuel purchases due to
an increase in fuel costs. The Department of Commerce,
Community and Economic Development contracted out to manage
the loans and work with the communities. The Rural Alaska
Fuel Services purchases fuel on behalf of the community. If
the loan is paid back on a timely basis, the money is loaned
for three years interest free. In addition, RAFS goes to
out to the communities to review the books, establish
pricing, and build budgets. He described how he sets up the
programs.
Mr. Conrad reported that RAFS has made loans to 26
communities throughout rural Alaska in the last four years
for a total of $6.5 million. He described the successes of
the program and the fund sources.
12:23:25 PM
Senator Olson MOVED to ADOPT Amendment 1:
Insert new Section 4 that amends AS 42.45.250(e)(1) to
read:
"(1) may not exceed $500,000 [$400,000], or, if the
borrower is a cooperative corporation organized under
AS 10.15 or an electric cooperative organized under AS
10.25 and uses the loan to purchase bulk fuel on behalf
of more than one community, may not exceed the lesser
of $500,000 [$400,000] multiplied by the number of
communities on whose behalf the bulk fuel is to be
purchased, $1,800,000 [$1,500,000].
Senator Olson explained that the amendment would increase
the loan limits for the Bulk Fuel Revolving Loan Fund to
better match the increased cost of fuel.
Co-Chair Stedman OBJECTED.
Senator Olson noted the current loan has been inadequate in
some communities. He spoke of high transportation costs.
He added that the Department is in support of the amendment.
12:25:31 PM
Ms. Fisher-Goad confirmed that the Department is in support
of the amendment. It aligns the long-existing BFRLF with
the proposed limit for the Bridge Loan program. She
addressed the increased demand for loans.
Co-Chair Stedman WITHDREW his OBJECTION.
There being NO OBJECTION, Amendment 1 was adopted.
Representative Nelson worried about communities that would
need more monetary support.
12:27:07 PM
Mr. Conrad noted requests for three loans for $500,000
through the Bridge Loan program. He voiced concern that if
communities are short funded, then it will create a case of
flying in fuel in February with a significant increase in
cost. He predicted that it is unlikely that there will be
requests for loans in the $750,000 range in the next year,
but for the communities in that situation, there is
significant cost if fuel needs to be flown in.
Representative Nelson said the cost gets passed on to the
consumer at $11 or $12 per gallon when fuel is flown in.
12:29:12 PM
Co-Chair Hoffman MOVED to REPORT CSHB 338 (FIN), as amended,
from Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 338 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note #1 by the
Department of Commerce, Community and Economic Development,
and with fiscal note #2 by the Department of Commerce,
Community and Economic Development.
ADJOURNMENT
The meeting was adjourned at 12:30 PM.
| Document Name | Date/Time | Subjects |
|---|