Legislature(2011 - 2012)SENATE FINANCE 532
02/23/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB203 | |
| SB135 | |
| SB140 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 203 | TELECONFERENCED | |
| + | SB 135 | TELECONFERENCED | |
| + | SB 140 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 23, 2012
9:03 a.m.
9:03:09 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Bert Stedman, Co-Chair
ALSO PRESENT
Catherine Reardon, Staff, Senator Joe Thomas; Meera Kohler,
CEO, AVEC; Joy Huntington, Legislative Advocate, Tanana
Chiefs, Conference; Jim Dodson, Fairbanks Economic
Development Corporation; Senator Hollis French; Christine
Marasigan, Staff, Senator Kevin Meyer
PRESENT VIA TELECONFERENCE
Dave Miller, Vice-Chairman, Cold Climate Housing Research,
Fairbanks; Walter Rose, Energy Specialist, Kawerak, Nome;
Myron Nanery, Association of Village Council, Bethel;
Melody Nibeck, Bristol Bay Native Association, Dillingham;
David Owens, Owens Inspection Services, Palmer; Victor
Kester, Executive director, AK Office of Victim's Rights;
Louisa Castrodale, Public Health Epidemiology, Anchorage
SUMMARY
SB 203 Energy Assistance Program & Vouchers
SB 203 was HEARD and HELD in committee for
further consideration.
SB 135 Continuances in Criminal Trials/Victims
SB 135 was HEARD and HELD in committee for
further consideration.
SB 140 Cathinone Bath Salts
SB 140 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 203
"An Act establishing an energy assistance program in
the Department of Revenue to issue an energy voucher
to Alaska permanent fund dividend recipients; and
relating to the analysis and recommendation of an
energy assistance program by the governor."
9:04:02 AM
Senator Thomas introduced SB 203. He stressed that many of
his constituents faced very high energy costs, and have
forced some families to move somewhere else. He remarked
that many other people in the state faced high energy
costs. He noted that the bill had many technical issues,
and the Department of Law was working through some of those
issues. He referred to the bill summary (copy on file):
Section 1: State sends a voucher to every adult PFD
recipient in the fall of 2012, which can be redeemed
at a fuel distributor or utility for 250 gallons of
heating oil, or for the natural gas BTU equivalent, or
for 1,500 KWH of electricity.
• Fuel distributors apply to be added to the list
of qualified distributors.
• Vouchers are numbered, state the recipient's name
and are non-transferable.
• Vouchers may be redeemed at any qualified fuel
distributor in the state.
• Fuel may be delivered to any address in the
state.
• Recipients who certify that they do not pay
directly for home heating oil, natural gas or
electricity may return their vouchers to the
department and receive either: a replacement voucher
in the name of their landlord, or a check for $250.
• Distributors submit claims for reimbursement to
the state that list voucher numbers, names of voucher
owners, fuel delivery addresses and the retail price
of fuel on the delivery date.
• The program will be administered by the
Department of Revenue/AHFC
Section 2: Executive branch evaluates options and
makes a recommendation for an energy assistance
program for Alaskans in 2013 and beyond.
The analysis and recommendation are due October 1,
2012. The analysis will include evaluation of a "fuel
price reduction" program, an "individual account"
program and alternate options, as well as a
recommendation for the best program that can be
instituted in FY14:
Fuel price reduction option:
The state makes payments to fuel distributors to lower
the price they charge Alaskans for residential heating
fuel.
Distributors of heating oil and natural gas submit to
the state proof of the wholesale purchase price for
the fuel they distribute, and the state reimburses
those distributors the amount necessary to effectively
reduce that wholesale price a specified amount or to a
specified price. Distributors receive this
reimbursement for all fuel they sell in the state for
residential heating. The executive branch analysis
will include consideration of the limiting the number
of gallons each Alaskan may purchase at the reduced
rate.
Individual account option:
Alaskans apply through the annual PFD process and
qualify for an amount of money to be deposited by the
state in an account in their name at a fuel
distributor or electric utility of their choice in
their community. The amount of assistance varies
depending on energy costs and heating degree days in
each community.
The Permanent Fund Division creates an electronic
system similar to "pick-click-give" through which
applicants may select a fuel distributor or utility.
Individuals who do not select a fuel distributor or
utility receive a standard, statewide "base" amount of
assistance in the form of a check to their PFD mailing
addresses. The executive branch analysis will
consider allowing Alaskans to deposit a portion of
their PFD's into their fuel accounts, in addition to
their energy assistance.
The executive branch analysis of the options and its
recommended program must include evaluation of the
following:
1. Whether the program can be structured so the
resulting energy assistance will not be subject to
federal taxation.
2. The estimated cost of the program in FY14 and for
the following 4 years.
3. The cost of administering the program relative to
the assistance provided to Alaskans.
4. The extent to which the program provides the most
assistance to those Alaskans who have the highest
heating costs.
The recommended program must include the following:
• Amount of assistance correlated to the cost of
home heating in different communities.
• Program triggered by ANS crude oil price or a
heating oil price, and total program funding level
dependent on state revenue.
• Penalties for fraud similar to PFD provisions,
including loss of future PFD's.
• Voluntary participation by fuel distributors.
• Administrative costs kept to a minimum.
9:06:47 AM
CATHERINE REARDON, STAFF, SENATOR JOE THOMAS, explained
that SB 203 would provide Alaskans with energy relief
through fuel vouchers in fall 2012, and developed a program
to help residents deal with high heating costs during the
transition to more affordable energy supplies. The first
section of SB 203 directed the Alaska Department of Revenue
to send a voucher to every adult Permanent Fund Dividend
recipient in the fall of 2012, which could be redeemed at
the fuel distributor or utility of their choice for either
250 gallons of heating oil, an equivalent amount of natural
gas, or 1,500 KWH of electricity. By providing an equal
amount of fuel to each adult, the voucher system would
account for the disparate cost of different fuels and
prices in different locations. Renters and others who
certify that they did not pay directly for home heating
oil, natural gas or electricity may request the reissuance
of their voucher in the name of their landlord or a $250
cash payment. The second section of the bill (beginning on
page 5) required the governor to analyze two specific
options for energy relief in FY14 and beyond: a "fuel price
reduction program" (fuel price buy-down) and an "individual
account program." The executive branch may also analyze
alternatives to those options before making a
recommendation. The analysis and recommendation would be
due back to the legislature by October 1, 2012. The program
ultimately recommended by the state must correlate the
amount of assistance to the local cost of residential
heating, taking into consideration the price of fuel and
"heating degree days" in each community, as well as satisfy
other requirements designed to ensure an efficient and
equitable program. She stated that SB 203 would provide
needed relief in the current year, and develop a program to
help families in the future.
DAVE MILLER, VICE-CHAIRMAN, COLD CLIMATE HOUSING RESEARCH,
FAIRBANKS (via teleconference), testified in support of SB
203. He stressed that relief for the high energy costs
would be very good for the economy. He remarked that the
Alaska Housing Finance Corporation (AHFC) had expressed
support as well. He stressed that using the resources
available in the state was necessary.
9:12:30 AM
WALTER ROSE, ENERGY SPECIALIST, KAWERAK, NOME (via
teleconference), spoke in support of SB 203. He stressed
that the cost of energy was very high and continued to
rise. He remarked that January 2012 was the coldest month
on record in Nome. He felt that SB 203 provided relief in
an especially challenging year.
MEERA KOHLER, CEO, AVEC, testified in support of SB 203.
She stressed that the high cost of energy was crippling the
rural villages. She felt that the bill would provide great
relief to Alaskans, and expressed that she was very
impressed with the bill. She feared what might happen to
the rural Alaskans, if the bill was not implemented soon.
Senator Olson wondered what default rate existed in the
villages. Ms. Kohler replied that most people honored their
obligations, and stated that the collection rate was at 99
percent.
9:17:29 AM
JOY HUNTINGTON, LEGISLATIVE ADVOCATE, TANANA CHIEFS,
CONFERENCE, spoke in support of SB 203. She felt that SB
203 would provide much needed relief to many rural
villages. She explained that she wanted to serve the people
of Fort Yukon, and while she was living there, she could
not afford the extremely high energy costs. She stated that
the cost of gas in small villages was $10 per gallon.
JIM DODSON, FAIRBANKS ECONOMIC DEVELOPMENT CORPORATION,
spoke in support of SB 203. He remarked that he would not
normally support this type of legislation, but felt that SB
203 was necessary until the energy costs declined.
MYRON NANERY, ASSOCIATION OF VILLAGE COUNCIL, BETHEL (via
teleconference), testified in support of SB 203. He noted
that some villages were limiting their fuel supplies,
because the high cost of fuel. He stressed that there
needed to be a long-term solution to the energy needs in
Alaska.
9:24:07 AM
MELODY NIBECK, BRISTOL BAY NATIVE ASSOCIATION, DILLINGHAM
(via teleconference), spoke in support of SB 203. She
stressed that energy assistance programs were very
beneficial to Alaskans. She recommended that the Bristol
Bay Native Association be a part of the conversation with
the administration regarding recommendations for changes to
the bill.
DAVID OWENS, OWENS INSPECTION SERVICES, PALMER (via
teleconference), spoke in support of SB 203. He stressed
that the legislation was critical to help Alaskans with the
high cost of fuel.
Senator Thomas thanked the committee for hearing the bill,
and noted that Senator Ellis, Senator Egan, and Senator
Olson were co-sponsors of the bill.
SB 203 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 135
"An Act relating to the rights of crime victims;
relating to the duties of prosecuting attorneys; and
amending Rule 45, Alaska Rules of Criminal Procedure."
9:30:06 AM
SENATOR HOLLIS FRENCH, introduced SB 135.
Article I, section 24 of our constitution is entitled
"Rights of Crime Victims." The amendment passed by an
overwhelming majority when it was placed before
Alaskan voters in 1994. Included in its eight specific
provisions is the promise that crime victims will have
"the right to timely disposition of the case following
the arrest of the accused."
In the eighteen years since the amendment passed, the
promise of a timely disposition of the case has often
not been kept. Moreover, the breaches of that promise
frequently occur in the most serious of cases. Delays
in the trial of a case, known as continuances, can go
on for years.
SB 135 requires prosecutors and judges to consider a
victim's right to a timely disposition of their case
when deciding whether to allow continuances. This
legislation will also ensure that victims are notified
of any requests or motions that could substantially
delay speedy prosecution of their case.
Repeated delays prevent victims from reaching
emotional, physical, and financial closure from the
trauma that they suffered as a result of the crime
perpetrated against them. Delays in prosecution can
also affect the availability of witnesses, a victim's
ability to recall important details, and it can create
other impediments to a successful trial.
Currently, Alaska is one of 27 states with
constitutional provisions to protect a victim's
rights; however, there is no statute in place to
implement it. With this important piece of
legislation, Alaska will join 15 other states that
have enacted a statutory provision recognizing this
crucial right.
SB 135 will guarantee a victim's right to a timely
resolution in the court system. I urge your support of
this legislation.
Senator Olson noted that there were some defendants in
rural Alaska, and it was difficult to collect evidence. He
wondered how due process was served, and felt that some of
the defendants in rural Alaska were not always given a fair
trial. Senator French replied that there was a current
tension in the State Constitution regarding the defendant's
right to a speedy trial versus the victim's right to a
timely disposition. He felt that the defendant's liberty
interest was often weighted greater than that of the
victim.
9:34:39 AM
VICTOR KESTER, EXECUTIVE DIRECTOR, AK OFFICE OF VICTIM'S
RIGHTS (via teleconference), testified in support of SB
135. He explained that the Office of Victim's Rights was a
legislative agency dedicated representing Alaska crime
victims in Alaska courts, and advancing the interest of
crime victims. He explained that SB 135 amended the Alaska
statutes to strengthen notification standards regarding
requests for continuances in criminal trial that would
delay prosecution of a case involving a crime victim.
Co-Chair Hoffman noted the four fiscal notes: FN3 (DOC),
FN2 (DOA), new indeterminate fiscal note from the
Department of Law, and a new fiscal impact note from the
Department of Administration.
Senator French noted that the bill was filed on January 6,
and since that time the bill became more focused and
definite. Therefore, the indeterminate fiscal note was
replaced with a fiscal impact note. He felt that the new
fiscal note was unwarranted.
SB 135 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 140
"An Act classifying certain substances as schedule IIA
controlled substances; and providing for an effective
date."
9:40:17 AM
CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, stated
that SB 140 would add synthetic Cathinones to the list of
controlled substances.
Co-Chair Hoffman noted the four fiscal notes: FN1 (DOA),
FN2 (DOC), FN3 (DPS), and FN4 (DOL).
LOUISA CASTRODALE, PUBLIC HEALTH EPIDEMIOLOGY, ANCHORAGE
(via teleconference), testified in support of SB 140. She
stated that the abuse of synthetic Cathinones through bath
salts to be a growing threat. Synthetic Cathinones were
poorly regulated, widely available, and may contain
different potent psycho-active compounds.
SB 140 was HEARD and HELD in committee for further
consideration.
Co-Chair Hoffman discussed the following day's agenda.
ADJOURNMENT
9:42:35 AM
The meeting was adjourned at 9:42 AM.