Legislature(2007 - 2008)SENATE FINANCE 532

03/31/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 260 STATE OFFICERS COMPENSATION COMMISSION TELECONFERENCED
Moved CSHB 260(STA) Out of Committee
+ HB 330 NOXIOUS WEEDS AND INVASIVE PLANTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 221 BUDGET: CAPITAL, SUPP. & OTHER APPROPS
Heard & Held
                  SENATE FINANCE COMMITTEE                                                                                      
                       March 31, 2008                                                                                           
                         9:09 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee meeting                                                                    
to order at 9:09:07 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                                                                                                                  
                                                                                                                                
Miles Baker, Staff, Senate Finance Committee; Representative                                                                    
Mike Doogan; Representative Craig Johnson                                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Bryce  Wrigley, Alaska  Farm Bureau,  Delta Junction;  Janice                                                                   
Chumley,  Kenai  Soil  and  Conservation   District  and  the                                                                   
University of Alaska Fairbanks  Cooperative Extension Service                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 260(STA)                                                                                                                   
                                                                                                                                
          "An Act  relating to a State  Officers Compensation                                                                   
          Commission  and establishing  how legislators,  the                                                                   
          governor,  the lieutenant  governor, and  executive                                                                   
          department  heads shall  be compensated;  providing                                                                   
          for  an effective date  by repealing the  effective                                                                   
          dates  of certain  sections of  ch. 124, SLA  1986;                                                                   
          and providing for an effective date."                                                                                 
                                                                                                                                
          CSHB 260(STA) was REPORTED  out of Committee with a                                                                   
          "do  pass"   recommendation  and   an  accompanying                                                                   
          previously   published   fiscal   note   from   the                                                                   
          Department of Administration.                                                                                         
                                                                                                                                
CSHB 330(RES)                                                                                                                   
                                                                                                                                
          "An Act relating to noxious weed, invasive plant                                                                      
          and agricultural pest management and education;                                                                       
          and providing for an effective date."                                                                                 
                                                                                                                                
          CSHB 330 (RES) was HEARD and HELD in Committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 221    "An  Act making  appropriations, including  capital                                                                   
          appropriations, supplemental appropriations, and                                                                      
          appropriations to capitalize funds; and providing                                                                     
          for an effective date."                                                                                               
                                                                                                                                
          SB 221 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
9:09:12 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 260(STA)                                                                                                
                                                                                                                                
     "An  Act  relating  to  a  State  Officers  Compensation                                                                   
     Commission   and  establishing   how  legislators,   the                                                                   
     governor,   the  lieutenant   governor,  and   executive                                                                   
     department heads shall be  compensated; providing for an                                                                   
     effective  date  by  repealing the  effective  dates  of                                                                   
     certain  sections of  ch. 124, SLA  1986; and  providing                                                                   
     for an effective date                                                                                                      
                                                                                                                                
Co-Chair Stedman  presented an  overview of the  three bills.                                                                   
He  mentioned   there  would  be  a  presentation   from  the                                                                   
subcommittee for CSHB 260, chaired by Senator Elton.                                                                            
                                                                                                                                
9:10:53 AM                                                                                                                    
                                                                                                                                
Senator  Elton   presented  the   recommendations   from  the                                                                   
subcommittee.  He mentioned that  the subcommittee  consisted                                                                   
of the  bill's sponsor,  Representative Doogan,  with Senator                                                                   
Olsen and  Senator Dyson.  Senator Elton  announced that  the                                                                   
subcommittee made no changes.                                                                                                   
                                                                                                                                
9:11:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE DOOGAN, the  bill's sponsor, presented an                                                                   
overview   of  the   bill   establishing   a  State   Offices                                                                   
Commission. This bill would cover  legislators, the Governor,                                                                   
the  Lt.  Governor,  and  the   principle  department  heads.                                                                   
Representative  Doogan   noted  that  the   commission  would                                                                   
consist of five  members appointed by the Governor;  one from                                                                   
a list presented  by the President of the Senate,  one from a                                                                   
list  of  the  Speaker  of  the  House,  and  three  at-large                                                                   
members. He stressed that the  commission appointees can have                                                                   
served   in   the  offices   that   they   are   recommending                                                                   
compensation  but not within  the last  four years.  He noted                                                                   
that the  commission members  are charged  with presenting  a                                                                   
report every  two years to  the Legislature on  compensation.                                                                   
Representative  Doogan  stressed  that  the  Legislature  can                                                                   
disapprove the report  within sixty days if they  do not like                                                                   
the recommendations and the Legislature  retains the power of                                                                   
appropriation.                                                                                                                  
                                                                                                                                
9:13:49 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman mentioned  one  fiscal note  for $7500  for                                                                   
travel and supplies  for the committee. He noted  that public                                                                   
testimony was taken at the last meeting on this bill.                                                                           
                                                                                                                                
Co-Chair  Hoffman  MOVED  to REPORT  CSHB  260(STA)  out  off                                                                   
Committee    with   individual    recommendations   and    an                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 260(STA) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation  and  an  accompanying   previously  published                                                                   
fiscal note from the Department of Administration.                                                                              
                                                                                                                                
AT EASE: 9:15:45 AM                                                                                                           
RECONVENED: 9:17:07 AM                                                                                                        
                                                                                                                                
9:17:11 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 330(RES)                                                                                                
                                                                                                                                
     "An Act relating to noxious weed, invasive plant and                                                                       
     agricultural pest management and education; and                                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
REPRESENTATIVE  CRAIG JOHNSON, presented  an overview  for HB
330.  He  reported   that  the  bill  would   create  a  Weed                                                                   
Coordinator for the state, develop  a weed plan, and create a                                                                   
Weed Board. He  maintained that these three  requirements are                                                                   
necessary to tap into federal  funds which would allow Alaska                                                                   
to  coordinate  with other  states  for weed  eradication  of                                                                   
invasive  species.  Representative   Johnson  mentioned  that                                                                   
there  have been  invasive species  entering  into the  state                                                                   
with no plan to deal with this problem.                                                                                         
                                                                                                                                
9:19:26 AM                                                                                                                    
                                                                                                                                
Representative  Johnson reiterated that  there is no  plan in                                                                   
place  to deal  with invasive  plant  problems. He  recounted                                                                   
that as  the warming trend  continues in the  state, invasive                                                                   
species are  becoming more prevalent. Representative  Johnson                                                                   
declared that invasive species  are often deadly to the local                                                                   
habitat and  can cause severe  economic havoc to  state farms                                                                   
and  the  economy.   He  revealed  that  Alaska   is  in  the                                                                   
preventative  stage, not eradication  phase. This  bill would                                                                   
set up  the mechanism  process to keep  these species  out of                                                                   
Alaska.                                                                                                                         
                                                                                                                                
9:21:47 AM                                                                                                                    
                                                                                                                                
Senator  Elton mentioned  that under  some federal  programs,                                                                   
fisheries are considered agriculture.  He wondered if dealing                                                                   
with invasive  plants and animals  brought in by  ships would                                                                   
be part of the responsibility of the new position.                                                                              
                                                                                                                                
9:22:32 AM                                                                                                                    
                                                                                                                                
Representative  Johnson  reported  that  it  is  not  clearly                                                                   
outlined in this bill as HB 330  would act as a first step in                                                                   
the process.  The bill does  not specifically  address animal                                                                   
or insect invasion  species. He maintained that  the new Weed                                                                   
Coordinator  could expand  into  these other  areas.  Senator                                                                   
Elton  remarked  that  his  reading  of  the  bill  does  not                                                                   
prohibit  it. He  encouraged  the Committee  to  look at  and                                                                   
focus on the maritime issues in the future.                                                                                     
                                                                                                                                
9:24:16 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  recounted   that  several  communities  in                                                                   
Alaska   are    actively   seeking   both    water   exports.                                                                   
Representative Johnson supported  the movement to include the                                                                   
water borne  and non-indigenous  plants and animals  invading                                                                   
Alaska  but he  reminded  the Committee  that  this bill  was                                                                   
designed to narrow in on what is possible at this time.                                                                         
                                                                                                                                
9:25:11 AM                                                                                                                    
                                                                                                                                
Senator  Olson requested  the number  of states  that have  a                                                                   
Weed Coordinator and Weed Board.  He also questioned Canada's                                                                   
process for dealing with this issue.                                                                                            
                                                                                                                                
Representative  Johnson  reported he  was  not familiar  with                                                                   
Canada's program  but that  most of  the western states  have                                                                   
this program.  He explained that  the agriculture  in western                                                                   
states  has been hard  hit by  invasive plants  and the  land                                                                   
where invasive species have been found has been devalued.                                                                       
                                                                                                                                
9:26:32 AM                                                                                                                    
                                                                                                                                
Senator Dyson  advised that the maritime  invasive conditions                                                                   
are killing off many of the natural  species. He mentioned an                                                                   
agreement  among  western states  is  starting  to allow  the                                                                   
inspection in  one jurisdiction  to be recognized  in another                                                                   
jurisdiction.  Senator Dyson specified  his concern  over the                                                                   
farm fish  invasion into Alaska  waters, as farmed  fish have                                                                   
been discovered in eighty six Alaskan rivers.                                                                                   
                                                                                                                                
9:27:46 AM                                                                                                                    
                                                                                                                                
Senator Dyson reported hearing  that some gardening stores in                                                                   
Alaska  are selling  ornamental  plants  that  are listed  as                                                                   
invasive  species.  He  hoped   that  this  commission  would                                                                   
produce a  list of what  can not be  sold in Alaska.  He also                                                                   
questioned if  federal funding  would preclude being  used on                                                                   
noxious  animals   and  seaborne  creatures.   Representative                                                                   
Johnson   replied  he   is  not   certain   on  the   federal                                                                   
requirements as  there has not  been a mechanism in  place up                                                                   
to  this time.  He recounted  that  some ornamental  invasive                                                                   
plants sold in  stores were added to the list  and one of the                                                                   
charges of this board would be to update the list.                                                                              
                                                                                                                                
9:29:48 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  requested Representative Johnson  expand on                                                                   
the  potential  for federal  grants  and the  state  matching                                                                   
requirements. Representative Johnson  responded that securing                                                                   
federal grants  would be part  of the new weed  coordinator's                                                                   
position.  He  believed  this   could  lead  to  hundreds  of                                                                   
thousands of dollars in federal  money without state matching                                                                   
funds.                                                                                                                          
                                                                                                                                
Co-Chair Stedman referred to the four fiscal notes.                                                                             
                                                                                                                                
9:31:17 AM                                                                                                                    
                                                                                                                                
Senator  Elton questioned  on  Page 2,  Section  1, line  24,                                                                   
where it  states that  the new  coordinator shall  coordinate                                                                   
with the University  of Alaska Cooperative  Extension Service                                                                   
and  the   Alaska  Association   of  Conservation   Board  of                                                                   
Directors.   Senator   Elton   suggested  the   addition   of                                                                   
coordinating with the Alaska Department  of Fish and Game who                                                                   
already  have an invasive  species person  on staff.  Senator                                                                   
Olson questioned  if the federal grants were  ongoing or only                                                                   
there for a few years, ultimately requiring state funds.                                                                        
                                                                                                                                
9:33:00 AM                                                                                                                    
                                                                                                                                
Representative  Johnson revealed  he was  not aware  how long                                                                   
the  federal  programs would  last.  The  weed problem  is  a                                                                   
widely recognized  problem which causes huge  economic losses                                                                   
in western  states.  He did not  envision this  as a  problem                                                                   
going away  but the state  legislature needs to  determine if                                                                   
it is worth pursuing.                                                                                                           
                                                                                                                                
9:33:47 AM                                                                                                                    
                                                                                                                                
BRYCE WRIGLEY,  ALASKA FARM BUREAU, DELTA  JUNCTION testified                                                                   
via teleconference in support  of this bill. He revealed that                                                                   
Alaska  is in  a unique  position  to eliminate  many of  the                                                                   
invasive  species  before they  become  a major  problem.  He                                                                   
stressed  that Alaska  has the  knowledge and  tools to  deal                                                                   
with  this  before   it  becomes  a  greater   problem.  This                                                                   
legislation could bring all the  agencies together to develop                                                                   
a  management strategy.  He believed  this  bill would  start                                                                   
putting an eradication plan into place.                                                                                         
                                                                                                                                
9:35:34 AM                                                                                                                    
                                                                                                                                
JANICE CHUMLEY, KENAI SOIL AND  CONSERVATION DISTRICT AND THE                                                                   
UNIVERSITY OF ALASKA FAIRBANKS  COOPERATIVE EXTENSION SERVICE                                                                   
testified  via  teleconference,   supported  this  bill.  She                                                                   
indicated noticing more invasive  plants appearing throughout                                                                   
the  Kenai  Peninsula  in  recent  years.  She  reminded  the                                                                   
Committee  that   Alaska  is   the  only  state   without  an                                                                   
overwhelming amount  of invasive species and now  is the time                                                                   
to remain in this position.                                                                                                     
                                                                                                                                
9:37:05 AM                                                                                                                    
                                                                                                                                
Representative Johnson signified  that this bill is the first                                                                   
step to deal with the invasive  species problems and, as more                                                                   
is learned,  to continue  to tackle  more invasive  plant and                                                                   
animals species problems.                                                                                                       
                                                                                                                                
9:37:50 AM                                                                                                                    
                                                                                                                                
CSHB 330  (RES) was HEARD and  HELD in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT EASE:  9:38:00 AM                                                                                                          
RECONVENED: 9:59:52 AM                                                                                                        
                                                                                                                                
9:59:58 AM                                                                                                                    
                                                                                                                                
SENATE BILL NO. 221                                                                                                           
                                                                                                                                
     "An   Act  making   appropriations,  including   capital                                                                   
     appropriations,    supplemental   appropriations,    and                                                                   
     appropriations  to capitalize  funds; and providing  for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
Co-Chair  Hoffman MOVED  to  ADOPT Committee  Substitute  25-                                                                   
GS2007\K as a working document before this Committee.                                                                           
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion purposes.                                                                              
                                                                                                                                
10:00:56 AM                                                                                                                   
                                                                                                                                
MILES BAKER,  STAFF, SENATE FINANCE COMMITTEE,  remarked that                                                                   
the primary  difference structurally from the  last committee                                                                   
substitute  is  the  addition  of the  remaining  slow  track                                                                   
supplemental FY 08 items. He mentioned  the addition of items                                                                   
from the Governor's FY 09 capital  submission and Legislative                                                                   
re-appropriation requests.                                                                                                      
                                                                                                                                
     Section  1, Page  2, slow  track supplemental  operating                                                                   
     items for FY 08.                                                                                                           
                                                                                                                                
     Section 4, Page 6, supplemental capital items.                                                                             
                                                                                                                                
     Section  7,  Page  10-17,   prior  committee  substitute                                                                   
     capital  projects to enhance  public safety,  separating                                                                   
     them from the capital budget.                                                                                              
                                                                                                                                
     Section  10, Page 18-59,  regular section  of the  FY 09                                                                   
     capital budget requests.                                                                                                   
                                                                                                                                
10:04:05 AM                                                                                                                   
                                                                                                                                
Mr. Baker continued with:                                                                                                       
                                                                                                                                
     Section 10,  Page 59, Line 24, for  school construction.                                                                   
     Department of  Education section which includes  a major                                                                   
     maintenance grant in prior bill.                                                                                           
                                                                                                                                
     Section  10, Page  61, begins the  capital projects  for                                                                   
     agencies.                                                                                                                  
                                                                                                                                
     Section  10,  Page 84,  an  addition to  this  committee                                                                   
     substitute for  court system appropriations.  All of the                                                                   
     Alaska Court System FY 09  capital requests submitted by                                                                   
     Governor.  Increased the  Anchorage Campus project  from                                                                   
     the Governor's  request to $8 million, an  additional $4                                                                   
     million.                                                                                                                   
                                                                                                                                
10:06:18 AM                                                                                                                   
                                                                                                                                
Mr. Baker continued with:                                                                                                       
                                                                                                                                
     Section 11  and 12, Page  86-89, totals of  the previous                                                                   
     sections.                                                                                                                  
                                                                                                                                
     Section 13, Page 90, no changes in this section.                                                                           
                                                                                                                                
     Section 13,  Page 94 starts the language  section of the                                                                   
     bill. He highlighted  that some of the  language is part                                                                   
     of the governor's slow track supplemental.                                                                                 
                                                                                                                                
     Section 43,  Page 103 added  a transferred  $55,000 from                                                                   
     to the Life Alaska Donor Services.                                                                                         
                                                                                                                                
     Section  44, Page 103,  line 19  added the handout  from                                                                   
     the Department  of Education  and Early development  for                                                                   
     energy relief.                                                                                                             
                                                                                                                                
10:09:08 AM                                                                                                                   
                                                                                                                                
Mr. Baker continued with:                                                                                                       
                                                                                                                                
     Section 47, Page 104 added  FY 09 operating language for                                                                   
     the Marine Highway for Kodiak service.                                                                                     
                                                                                                                                
     Section 48,  Page 104, added two deposits  to retirement                                                                   
     systems  to   pay  off  unfunded  liabilities   for  the                                                                   
     judicial retirement and the National Guard.                                                                                
                                                                                                                                
     Section 49,  additional deposit  of $400 million  to the                                                                   
     Capital Budget Reserve.                                                                                                    
                                                                                                                                
     Section 24,  Page 97, subsection  C-D, Line  22, deposit                                                                   
     of $25  million to  Marine Highway stabilization  system                                                                   
     fund.                                                                                                                      
                                                                                                                                
     Section 24,  Line 24, subsection D, FY  08 surplus being                                                                   
     deposited  into the  Marine  Highway vessel  replacement                                                                   
     fund.                                                                                                                      
                                                                                                                                
Mr. Baker stated these were the principle sectional changes.                                                                    
                                                                                                                                
10:12:13 AM                                                                                                                   
                                                                                                                                
Mr. Baker mentioned that additions since the previous                                                                           
Committee Substitute were:                                                                                                      
                                                                                                                                
     The Department  of Health  and Social Services,  for the                                                                   
     Pioneer  Home,  the  Youth   Center  and  Health  center                                                                   
     deferred maintenance across the state.                                                                                     
                                                                                                                                
     Department  of  Education   addition  for  the  deferred                                                                   
     maintenance at the Mt. Edgecumbe High School.                                                                              
                                                                                                                                
     Department  of Commerce  addition of  the Kodiak  launch                                                                   
     facility.                                                                                                                  
                                                                                                                                
     National  Petroleum  Reserve   in  Alaska  (NPRA)  grant                                                                   
     program,  Section  26, Page  98  added in  the  language                                                                   
     section how that money will be appropriated.                                                                               
                                                                                                                                
     Department of Administration  included the Palmer Office                                                                   
     Building.                                                                                                                  
                                                                                                                                
     Department  of  Transportation  addition of  the  Marine                                                                   
     Highway vessel overhaul and  deferred maintenance items.                                                                   
     The harbor transfer program,  the Chignik Lagoon airport                                                                   
     repairs,  the Trunk road  in the  Mat-Su valley  and the                                                                   
     South Denali access road.                                                                                                  
                                                                                                                                
     Department of Public Safety  addition of the full amount                                                                   
     for deferred maintenance.                                                                                                  
                                                                                                                                
10:15:20 AM                                                                                                                   
                                                                                                                                
Mr. Baker continued listing:                                                                                                    
                                                                                                                                
     Department  of Natural Resources  addition of  the state                                                                   
     parks  sanitation and safety  project, emergency  repair                                                                   
     items, fire  fighting equipment,  and the last  phase of                                                                   
     the energy inventory project.                                                                                              
                                                                                                                                
     Department of Revenue addition for the child support                                                                       
     services division computer upgrade project.                                                                                
                                                                                                                                
     University addition of $15.4 million deferred statewide                                                                    
     for certain campuses.                                                                                                      
                                                                                                                                
10:16:59 AM                                                                                                                   
                                                                                                                                
Mr. Baker revealed a total dollar amount in the new                                                                             
committee substitute totals $1.782 billion for a $214                                                                           
million increase over the last Committee Substitute.                                                                            
                                                                                                                                
Co-Chair Stedman WITHDREW his objection. There being NO                                                                         
OBJECTION, Committee Substitute 25,GS2007\K, Kane, 3/31/08                                                                      
was adopted as the working document before this Committee.                                                                      
                                                                                                                                
SB 221 was HEARD and HELD in Committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:18 AM                                                                                           
                                                                                                                                
                                                                                                                                

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