Legislature(2009 - 2010)SENATE FINANCE 532
04/07/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB208 | |
| SB235 | |
| SB301 | |
| HB162 | |
| SB63 | |
| SB172 | |
| SB184 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 208 | TELECONFERENCED | |
| += | SB 235 | TELECONFERENCED | |
| += | SB 301 | TELECONFERENCED | |
| += | HB 162 | TELECONFERENCED | |
| + | SB 63 | TELECONFERENCED | |
| + | SB 172 | TELECONFERENCED | |
| + | SB 184 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 7, 2010
9:12 a.m.
9:12:41 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:12 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Michelle Sydeman, Staff, Senator Wielechowski; Esther Cha,
Staff, Senator McGuire; Dave Shaftel, Attorney, Consultant;
Denise Liccioli, Staff, Senator Olson; Ward Hurlburt, Chair
Health Care Commission, Department of Health and Social
Services; Laurie Herman, Director Government Affairs,
Providence; Senator Hollis French.
PRESENT VIA TELECONFERENCE
Dave Shaftel, Attorney, Consultant; Douglas Blattmachr,
President of Alaska Trust Company; Sonia Handforth Kome,
President, Alaska Primary Care Association; Pat Luby,
Advocacy Director, American Association of Retired Persons;
Matt Wallace, Executive Director, Alaska Public Interest
Research Group.
SUMMARY
SB 63 TRANSFER RESTRICTIONS ON TRUSTS
SB 63 was HEARD and HELD in Committee for further
consideration.
SB 172 ALASKA HEALTH CARE COMMISSION
SB 172 was HEARD and HELD in Committee for
further consideration.
SB 184 INTERNET ACCESS TO LEG COMMITTEE MTGS
SB 184 was HEARD and HELD in Committee for
further consideration.
SB 208 DNR STUDY ON NATURAL GAS
CS SB 208 was REPORTED out of Committee with a
"do pass" recommendation and with a new zero note
by the Senate Finance Committee and a new zero
note by the Department of Revenue.
SB 235 CHARTER/ALTERNATIVE SCHOOL FUNDING
SB 235 was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal impact
note from the Department of Education and Early
Development.
SB 301 POWER PROJECT FUND
SB 301 was REPORTED out of Committee with a "do
pass" recommendation and with three previously
published zero notes: FN1 (DOT), FN2 (REV), FN3
(CED) and one indeterminate fiscal note: FN4
(CED).
HB 162 SOUTHEAST STATE FOREST
SCS HB 162 was REPORTED out of Committee with a
"do pass" recommendation and with one previously
published zero note from the Department of
Natural Resources.
SENATE BILL NO. 208
"An Act requiring the Department of Natural Resources
to evaluate current incentives and recommend
additional incentives that would increase gas
exploration, development, and production in the Cook
Inlet sedimentary basin; and requiring the Department
of Natural Resources to evaluate the means by which
the department may explore for, purchase, and sell
natural gas from newly proved gas reserves in the Cook
Inlet sedimentary basin."
9:13:02 AM
Senator Thomas commented that the reference to gas from
Cook Inlet should incorporate a large portion of the state
as the Railbelt region through to Fairbanks also enjoys the
benefits of less expensive gas.
Co-Chair Hoffman MOVED to report CS SB 208 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
CS SB 208 was REPORTED out of Committee with a "do pass"
recommendation and with a new zero note by the Senate
Finance Committee and a new zero note by the Department of
Revenue.
SENATE BILL NO. 235
"An Act relating to charter school approval and
funding."
9:15:45 AM
Co-Chair Stedman discussed the fiscal note from Department
of Education and Early Development (DEED) for $150 thousand
in general funds to cover the cost of adopting the
regulations. He explained that the fiscal note was
modified.
Senator Huggins commented that the legislation was the
initial step in allowing charter schools the opportunity to
have facilities. He expressed pride in his support of the
bill.
Co-Chair Hoffman MOVED to report SB 235 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 235 was REPORTED out of Committee with a "do pass"
recommendation and with a new fiscal impact note from the
Department of Education and Early Development.
SENATE BILL NO. 301
"An Act relating to the power project fund;
authorizing the Alaska Energy Authority to charge and
collect fees relating to the power project fund;
authorizing the Alaska Energy Authority to sell and
authorizing the Alaska Industrial Development and
Export Authority to purchase loans of the power
project fund; providing legislative approval for the
sale and purchase of loans of the power project fund
under the memorandum of understanding dated February
17, 2010; and providing for an effective date."
9:17:25 AM
Co-Chair Stedman stated that the bill contains four zero
fiscal notes, two from the Department of Commerce,
Community and Economic Development (DCCED) one from the
Department of Revenue (DOR) and one from the Department of
Transportation and Public Facilities (DOT).
Co-Chair Hoffman MOVED to report SB 301 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 301 was REPORTED out of Committee with a "do pass"
recommendation and with three previously published zero
notes: FN1 (DOT), FN2 (REV), FN3 (CED) and one
indeterminate fiscal note: FN4 (CED).
HOUSE BILL NO. 162
"An Act establishing the Southeast State Forest and
relating to the Southeast State Forest; and providing
for an effective date."
9:18:32 AM
Co-Chair Stedman highlighted one zero fiscal note from the
Department of Natural Resources (DNR).
Senator Huggins applauded the administration for their
proactive initiative. He hoped for the sustained sentiment
through other areas of the state.
Co-Chair Hoffman MOVED to report SCSHB 162 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SCS HB 162 was REPORTED out of Committee with a "do pass"
recommendation and with one previously published zero note
from the Department of Natural Resources.
SENATE BILL NO. 63
"An Act relating to transfer restrictions on trust
interests."
9:19:48 AM
ESTHER CHA, STAFF, SENATOR MCGUIRE, commented on the state
trust laws. She explained that the trust business is a
multibillion dollar sector that often crosses state lines
to take advantage of more attractive state trust laws. In
1997, Alaska became the first state to establish a law that
allows a person to form an irrevocable trust via
discretionary beneficiary of the trust. She quoted the
document "What is a Trust" (copy on file). She continued
that SB 63 is part of an ongoing effort to modernize trust
laws. The modernization will create jobs and revenue to
diversify our economy making Alaska attractive to trust
business and investment.
9:24:03 AM
Senator Huggins asked if a loophole would open for
creditors if the creditor must establish by clear and
convincing evidence no intent to defraud.
Ms. Cha believed that the practice is standard among
trustees.
DAVE SHAFTEL, ATTORNEY, CONSULTANT (via teleconference)
stated that there is an exception for a fraudulent
transfer. If an asset is transferred with the intent to
defraud creditors, then the court can set aside that
transfer. The trust provision addressed contains the
specific exception. The issue with our statute is that it
does not include the need for a creditor to establish or
satisfy in order to prove that the transfer was made with
the intent to defraud. The clear and convincing standard is
universally used for fraudulent transfer. This provision
inserts into the statute what was previously an omission
clarifying the standard that the creditor must show by
clear and convincing evidence that the transfer was
performed fraudulently.
9:27:27 AM
Senator Thomas asked about the standards. He asked to know
the next most rigid or difficult to attain burden of proof
required of the person claiming they were intentionally
defrauded.
Mr. Shaftel responded that the standard used in litigation
is a preponderance of the evidence or 51 percent. The
standard is easier than clear and convincing evidence. The
law requires a more stringent standard with clear and
convincing evidence regarding fraudulence.
Senator Olson asked if the bill interferes with the sale of
assets within the trust.
Mr. Shaftel responded no. He stated that the trustee is the
owner of the assets with powers of sale and management and
manages the assets for the beneficiaries of the trust. The
laws in place do not inhibit the powers unless the person
who set up the trust wants to ensure that a particular
asset remain in the trust permanently.
9:30:28 AM
Mr. Shaftel provided testimony. He commented that the bill
allows the state to bring trust laws up to speed. He noted
that the mentioned provisions have been enacted in other
states with similar types of trusts. He opined that the
proposed legislation improves the law in the area of
trusts. He stated that most of his clients are Alaska
residents who use this type of trust frequently. He urged
the approval of the bill.
Senator Thomas asked about the trust and the
diversification of Alaska's economy. He wondered about a
potential study illustrating the impact on the state's
economy.
Mr. Shaftel responded that recent testimony from trust and
bank officers stated a substantial increase in business
with large amounts of funds travelling through financial
institutions. He expressed awareness of million dollar
transactions in Alaska. He stated that the legislation has
helped the economy with other states choosing Alaska
because of our reputation for trust laws
9:33:56 AM
DOUGLAS BLATTMACHR, PRESIDENT OF ALASKA TRUST COMPANY (via
teleconference), testified in support of the legislation.
He explained that the recently passed trust legislation has
proven beneficial to the state while creating a number of
jobs. The state received an additional $3 million in life
insurance premium tax because of outside trusts.
Co-Chair Hoffman commented that the legislation has one
zero fiscal note from the Department of Law.
SB 63 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 172
"An Act establishing the Alaska Health Care Commission
in the Department of Health and Social Services; and
providing for an effective date."
9:35:46 AM
DENISE LICCIOLI, STAFF, SENATOR OLSON, delivered the
sponsor statement.
Alaska is currently facing serious healthcare cost,
access and quality issues. Between 1991 and 2005,
health care expenditures in our state more than
tripled from $1.6 billion to $5.3 billion. All levels
of government--state, local, and federal- are
affected, and Alaska's economy cannot sustain this
inflationary growth. The purpose of SB 172 is to
establish in statute the Alaska Health Care Commission
to address the need for health care reform in our
state. The issue is complex and broad in scope, and
cannot be dealt with adequately unless we have a
permanent body to plan and follow through for long
range comprehensive health care reform.
The two most recent groups to work on the issue of
health care reform in Alaska, the Alaska Health Care
Roundtable (2005) and the Alaska Health Care
Strategies Planning Council (2007), both recommend
that a permanent body be established to address the
problem of health care reform. The Roundtable (which
met for 2 years) and the Planning Council (which met
for 6 months) recognized that the problem is too great
to be effectively addressed though a short-term, ad-
hoc body.
The Alaska Health Care Commission would be established
in the Department of Health and Social Services, and
would consist of a ten member body including public
officials and private citizens. Representatives from
both the executive and legislative branches of state
government are included, as well as citizens
representing the private business sector, the health
care community, and consumers. Three members are to be
ex officio appointees from the legislature and the
governor's office. The composition and small size
would enable efficient and effective teamwork and
decision-making, while bringing a balance of
viewpoints and perspectives.
The commission would provide its recommendations and
support the development of a statewide plan to address
the quality, accessibility, and availability of health
care for all citizens of the State. A plan for reform
will be based on education, sustainability, management
efficiency, health care effectiveness, private-public
partnerships, research, personal responsibility and
individual choice.
Alaska's need for healthcare reform is pressing and
must be dealt with thoroughly and efficiently, with a
long range view toward meaningful and lasting change.
The Alaska Health Care Commission would play an
important role in this process, and it is essential
that we make it permanent as well as future issues
with Alaska's healthcare systems can be better
anticipated, understood, and addressed.
9:40:45 AM
Co-Chair Hoffman asked why a permanent board is proposed
when the administration performs similar work by
administrative order.
Ms. Liccioli responded that the administrative order
establishing the healthcare commission was temporary.
Senator Thomas asked if the university was considered for
board representation as they employ many on the involved
work force.
Ms. Liccioli responded that the university was considered
along with many other groups who would bring valuable
expertise to the commission. She understood that the desire
was to keep the commission small while including a wide
range of views and perspective.
9:42:31 AM
WARD HURLBURT, CHAIR HEALTH CARE COMMISSION, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, stated that the administration
supports the legislation. He commented that the state lacks
affordable health care services. Nationally, analysts state
that we spend 18 percent of gross domestic product on
health care services. Alaska spends approximately $6
billion a year on health care services. Every state is
overwhelmed by the increasing cost of Medicare. The
individuals on the current health care commission have
united as a small working group with every member invested
and engaged. He commented on challenges presented by the
national health care reform commission. He cited the need
for specific Alaskan analysis as health care reform is
addressed.
9:48:13 AM
Senator Egan asked if the commission will perform the
contracting for the projected funding. Mr. Hurlburt
responded that the funding is available through the fiscal
note.
9:49:08 AM
LAURIE HERMAN, DIRECTOR GOVERNMENT AFFAIRS, PROVIDENCE
HEALTH AND SERVICES testified in support of SB 172. She
echoed the comments of Senator Olson's staff.
9:50:18 AM
SONIA HANDFORTH KOME, PRESIDENT, ALASKA PRIMARY CARE
ASSOCIATION (via teleconference) stated that the Alaska
Primary Care Association strongly supports the SB 172 for
the establishment of the health commission. She appreciated
the inclusion of a primary care physician seat; however,
the association feels that a primary care safety net seat
and more specifically a community health center seat on the
commission is important. She advocated for community health
centers, which belong to a statewide and nationwide system
and provide primary and preventative medical care and case
management along with dental and behavioral health care
prevention and case management. Community health centers
have been shown to reduce Medicaid costs. She opined that a
designated community health center seat, in statute is
therefore necessary.
9:52:52 AM
PAT LUBY, ADVOCACY DIRECTOR, AMERICAN ASSOCIATION OF
RETIRED PERSONS (via teleconference) testified in support
of the legislation. He stated that SB 172 would extend the
life of the Alaska Health Care Commission. With the recent
national action on health care, every state must have a
group of experts who can determine how to make the federal
legislation work. He advocated for extending the sunset
date.
Co-Chair Stedman mentioned one fiscal note from the
Department of Health and Social Services for $500 thousand
in general funds to cover the cost of operations in the
commission.
SB 172 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 184
"An Act relating to public access to legislative
committee meetings during regular legislative sessions
by Internet broadcast."
9:54:13 AM
SENATOR HOLLIS FRENCH stated that the legislation allows
for webcams in every committee room in the capitol allowing
access to committee processes by any citizen with a
computer. He commented that that the lack of today's gavel
to gavel broadcast with seven key pieces of legislation
heard by the committee provides the perfect example of the
need for the mentioned webcams. He understood that the
Legislative Affairs Agency (LAA) supports the idea of
committee webcams and have pursued an independent procedure
for installation. He suggested placing the procedure in
statute allowing for continuity despite potential personnel
changes within the LAA.
Co-Chair Stedman acknowledged the fiscal note from LAA for
$88 thousand in general funds. He stated that LAA has
sufficient funds to absorb the cost.
9:57:26 AM
MATT WALLACE, EXECUTIVE DIRECTOR, ALASKA PUBLIC INTEREST
RESEARCH GROUP (via teleconference) testified in support of
the legislation. He stated that the research group cares
deeply about the idea of open and transparent government.
Senator French noted support from Arliss Sturgulewski, Bill
Legere, the general manager of KTOO Broadcasting, the City
of Juneau, and the Alaska Committee.
SB 184 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 9:59 AM.