Legislature(2011 - 2012)SENATE FINANCE 532
04/12/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB302 | |
| HB366 | |
| HCR23 | |
| HB21 | |
| HB115 | |
| HB360 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 302 | TELECONFERENCED | |
| += | HB 366 | TELECONFERENCED | |
| += | HCR 23 | TELECONFERENCED | |
| + | HB 21 | TELECONFERENCED | |
| + | HB 115 | TELECONFERENCED | |
| + | HB 360 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 12, 2012
9:06 a.m.
9:06:02 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:06 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
ALSO PRESENT
Representative Paul Seaton; Michael Paschall, Staff,
Representative Eric Feige; Richard Etheridge, Second Vice-
President, Alaska Fire Chiefs Association, Juneau;
Representative Reggie Joule; Representative Anna
Fairclough; Kate Burkhart, Executive Director, Suicide
Prevention Council, Juneau; Gayle Trivette, Volunteer,
Juneau Suicide Prevention Coalition, Juneau; Yasmine
Habash, Staff, Representative Craig Johnson; Representative
Bob Lynn; Ed Fogels, Deputy Commissioner, Department of
Natural Resources
PRESENT VIA TELECONFERENCE
Bryan Fisher, Chief of Operations, Division of Homeland
Security and Enforcement, Fort Richardson; David Gibbs,
Fairbanks North Star Borough, Fairbanks; Greg Conrad,
Executive Director, Interstate Mining Compact Commission,
Washington D.C.
SUMMARY
CSHB 21(FIN) SUICIDE PREVENTION COUNCIL MEMBERS
CSHB 21 (FIN) was HEARD and HELD in
Committee for further consideration.
CSHCR 23(FIN) ALASKA ARCTIC POLICY COMMISSION
CSHCR 23 (FIN) was HEARD and HELD in
Committee for further consideration.
CSHB 115(TRA) NAMING WALTER J. HICKEL EXPRESSWAY
CSHB 115 (TRA) was HEARD and HELD in
Committee for further consideration.
CSHB 302(FIN)am CONTRIBUTIONS FROM PFD: UNIV/AUDITS
CSHB 302 (FIN)am was HEARD and HELD in
Committee for further consideration.
HB 360 INTERSTATE MINING COMPACT & COMMISSION
HB 360 was HEARD and HELD in
Committee for further consideration.
HB 366 DISASTER PLANNING AND SERVICES
HB 366 was HEARD and HELD in
Committee for further consideration.
CS FOR HOUSE BILL NO. 302(FIN) am
"An Act requiring each campus of the University of
Alaska to apply to be included on the contribution list
for contributions from permanent fund dividends;
requiring a university to pay an application fee for
each campus separately listed on the contribution list
for contributions from permanent fund dividends; and
repealing certain audit requirements for entities
receiving contributions from permanent fund dividends."
9:07:22 AM
REPRESENTATIVE PAUL SEATON, introduced HB 302. He explained
that the legislation would repeal the audit provision for
any non-profit with a total budget of $250,000. The
provision was problematic because the average cost of an
audit was $8000 to $12,000, which was significantly more
than the majority of non-profits received through the Pick,
Click, Give program. He provided the example of the Seward
Senior Citizen Centre, which had been receiving less than
$2000 per year, but the audit was costing then $8,000. He
furthered that the Juneau Arts Council had stopped using the
program because it was not cost effective, which made
regular donors think it was no longer a certified non-
profit. He referred to the Sponsor Statement (copy on file):
HB 302 allows greater participation in the
Pick.Click.Give program by small non-profits that meet
all of the eligibility requirements for the program,
but cannot participate due to the cost prohibitive
audit requirement.
The creation of the popular Pick.Click.Give program by
the 25th Alaska State Legislature gave Alaskans a
simple and convenient option to donate to charities and
non-profits of their choice. These organizations, which
provide important services to our communities, rely on
donations to function.
One criterion that must be met by organizations wishing
to participate often stops smaller Alaskan charities
and non-profits from applying. This is the required
financial audit for organizations with a total budget
of $250,000 or greater. The cost of the required
financial audit for groups with $250,000 annual budget
is much greater than the donations received by these
groups through the Pick.Click.Give program. This makes
participation in the program impractical for
organizations of this size. Not only does this mean
that these smaller groups will not receive donations
through the program, some groups have found that
exclusion from the program gives their supporters the
mistaken impression that they are no longer certified
non-profits.
This bill eases the financial burden on these
organizations and allows Alaskans a more complete
choice of organizations by eliminating the financial
audit requirement. This does not remove financial
accountability. All Pick.Click.Give. Donation
recipients must be 501(c)(3) tax-exempt organizations,
which are required to file the form 990 annually with
the IRS. Organizations are also required to have an
audit if they expend $500,000 or more in federal
awards. Entities that expend less than $500,000 in
federal funds still must still make their records
available for review by the federal government.
This bill further requires the University of Alaska to
pay the $250 application fee to participate in the
program, just as all other eligible organizations do.
The Pick.Click.Give program encourages Alaskans to give
back to their community by bringing the many worthy
state programs right to their doorstep. It is the
smaller non-profits which nourish Alaskan communities
on a personal level, which open pathways for budding
artistic talents and provide the educational
opportunities that fit just right with community needs.
These organizations deserve the chance to connect
through Pick.Click.Give to the Alaskans they serve.
9:09:42 AM
Co-Chair Hoffman noted the one previously published zero
fiscal note from the Department of Revenue (DOR).
CS HB 302 (FIN) was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 366
"An Act establishing an Alaska intrastate mutual aid
system and relating to the duties of the Alaska
division of homeland security and emergency management
and the duties of the Alaska State Emergency Response
Commission."
9:10:45 AM
MICHAEL PASCHALL, STAFF, REPRESENTATIVE ERIC FEIGE,
disclosed that Representative Feige was the Chief of the
Chickaloon Volunteer Fire Department. He added that he was
the Assistant Chief and board member of the Rural Deltana
Volunteer Fire Department and that he chaired the
Delta/Greely Local Emergency Planning Committee. He
furthered that he was a member of the State Inoperable
Communications Committee; all of the mentioned organizations
could be related to the legislation.
9:11:38 AM
Mr. Paschall explained that according to the Federal
Emergency Management Agency (FEMA) mutual aid agreements and
systems agreements were agreements between agencies,
organizations, and jurisdictions that provided a mechanism
to quickly obtain emergency assistance in the form of
personnel equipment materials and other associated services.
The primary objective was to facilitate rapid, short-term
deployment of emergency support prior to, during, and after
an incident. He stated that through the Emergency Management
Assistance Compact (EMAC), all 50 states, the District of
Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands had
an agreement that established guidelines across state
borders. He referred to the Sponsor Statement (copy on
file):
In 2004 the National Emergency Management Association
(NEMA) in conjunction with the Federal Emergency
Management Agency (FEMA) and a host of emergency
response organizations, began developing and promoting
model legislation for an intrastate mutual aid system
(IMAS). The goal of IMAS is to provide a framework for
all political subdivisions within a state to receive
and render aid to other subdivisions within a state in
times of need.
HB 366 will implement this model legislation in a
manner that will be beneficial for Alaskan communities.
The system detailed in HB 366 will provide a framework
for mutual assistance among the participating political
subdivisions - regions, boroughs, municipalities, and
other local jurisdictions - in the prevention of,
response to, and recovery from any disaster that
results in a formal declaration of local disaster
emergency.
The employees and volunteers who serve in emergency
services recognize that emergencies transcend political
jurisdictional boundaries. They, and the local agencies
they serve, understand that intergovernmental
coordination is essential for the protection of lives
and property and for best use of available assets.
Currently, the Alaska Disaster Act does provide for
political subdivisions to create mutual aid agreements,
which, in practice, works well for neighboring entities
or service areas that have an established history of
providing mutual aid to one another. These local mutual
aid agreements vary widely in their scope and may not
all address key issues of liability and compensation.
Further, they may not encompass all emergency services.
Through HB 366, a statewide agreement would be
developed to supplement existing regional or local
agreements by establishing a comprehensive, integrated
system of mutual aid at a state level that will ensure
an efficient and effective response to all hazards and
disasters.
HB 366 would allow all political subdivisions to
automatically be included in the statewide mutual aid
system. A political subdivision may elect to withdraw
by enacting an appropriate resolution by its governing
body. This legislation would not prevent participating
entities from entering into supplementary agreements
with other political subdivisions or impact any
existing or future agreements. If a participating
entity cannot provide assistance to a requesting
entity, they are not obligated or bound to provide
assistance.
9:14:35 AM
Senator Thomas wondered if HB 366 participation in the
system was mandatory.
Mr. Paschall replied that the way the law was written all
political sub-divisions, which would include communities in
the state, were a part of the agreement. He added that any
community or municipality could vote to opt out of the
agreement. He noted that no one was required to participate
in the event of an emergency. He stressed that the bill
simply provided the mechanism for understanding where the
liability lands during an emergency situation.
9:16:20 AM
Co-Chair Hoffman noted the one previously published zero
fiscal note from the Department of Military and Veterans
Affairs.
Co-Chair Hoffman OPENED public testimony.
9:16:51 AM
BRYAN FISHER, CHIEF OF OPERATIONS, ALASKA DIVISION OF
HOMELAND SECURITY AND EMERGENCY MANAGEMENT, DEPARTMENT OF
MILITARY and VETERANS AFFAIRS, FORT RICHARDSON, ANCHORAGE,
(via teleconference), testified in support of HB 366. He
stated that interstate mutual aid was his agencies mission
and the standing mission of the State Emergency Response
Commission. He noted that his agency provided the direct
staff support to the commission already, hence the zero
fiscal note.
9:17:58 AM
DAVID GIBBS, DIRECTOR OF EMERGENCY OPERATIONS, FAIRBANKS
NORTH STAR BOROUGH (via teleconference), spoke in support of
HB 366. He added that interstate mutual aid legislation was
a legislative priority for the borough in 2010.He believed
that the bill was well crafted policy that provided a
framework for a consistent and integrated mutual aid system.
He shared that the myriad of issues with regard to
authorities, compensation, and liability affected the
ability to provide, and receive, timely assistance in times
of disaster.
9:19:05 AM
RICHARD ETHERIDGE, SECOND VICE-PRESIDENT, ALASKA FIRE CHIEFS
ASSOCIATION, JUNEAU, urged support for HB 366. He opined
that there currently were delays in responding to disasters
in outlaying communities. He felt that the bill would
streamline operations to provide for faster response.
Co-Chair Hoffman CLOSED public testimony.
HB 366 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE CONCURRENT RESOLUTION NO. 23(FIN)
Establishing and relating to the Alaska Arctic Policy
Commission.
REPRESENTATIVE REGGIE JOULE, introduced HCR 23. He referred
to the Sponsor Statement (copy on file):
The Alaska Northern Waters Task Force (ANWTF) was
established in 2010 to identify the opportunities and
challenges if a changing Arctic. Arctic Nations are
anticipating the development of northern shipping
routes, mineral extraction, oil and gas exploration,
commercial fisheries, and tourism. Some of this change
has already stated to occur. The ANWTF completed its
final report on January 30, 2012. The report includes
recommendations in six Arctic policy areas: Governance,
Oil & Gas Development, Marine Transportation,
Fisheries, Infrastructure, and Research. The report is
one of the most detailed statements of Alaska's Arctic
policy to date, yet much work remains to fully expound
upon all the diverse issues that the Task Force brought
forward.
While the United States has an official written Arctic
Policy (National Security Presidential Directive (NSPD-
66), Alaska does not. Most of the other Arctic Nations
and the Northwest Territories already have established
Arctic policies. As the jurisdiction that makes the
United States an Arctic nation and ad the only U.S.
state that is home to Arctic residents, Alaska needs
and Arctic policy of its own. Alaska needs to position
itself now regarding the nation's Arctic policy -
Alaska cannot take that leadership role without
understanding what its own priorities should be. This
is especially critical considering the United States
will be chairing the Arctic Council from 2015-2017. The
Arctic Policy Commission will provide the legislature
an opportunity to remain engaged in the ongoing Arctic
dialogue and to help shape future Alaskan Arctic
policy.
Toward this end, HCR 23 creates in the legislative
branch an Alaska Arctic Policy Commission. The 16-
member Commission would include:
· 3 senators appointed by the Senate President (one
acting as Co-Chair)
· 3 representatives appointed by the House Speaker
(one acting as Co-Chair)
· 1 member from the executive branch appointed by
the Governor
· 9 members appointed jointly by the President and
the Speaker representing:
o The federal government
o A tribal entity
o The mining industry
o The oil & gas industry
o The University of Alaska
o Fisheries
o A local government
o A costal government
o An international Arctic organization
Over the course of two years, the Arctic Policy
Commission will hold meetings in Arctic areas of the
state as well as Anchorage and Fairbanks. The
Commission is tasked with providing preliminary
recommendations on Alaska's Arctic policy by January
30, 2014 and delivering a final report by January, 30,
2015.
9:22:51 AM
Senator Thomas felt that language pertaining to the state's
recommendations regarding the law of the seas should be
included in the bill.
Representative Joule replied that the issue was one of the
top recommendations from the Northern Waters Task Force. He
furthered that one year ago both the house and the senate
had sent a resolution to Congress, which was currently
keeping the recommendation alive and well. He understood
that the issue was slated to be taken up in spring 2012 in
the U.S. Senate.
9:24:23 AM
Co-Chair Hoffman noted the once fiscal impact note from the
Legislature.
Co-Chair Hoffman OPENED public testimony.
Co-Chair Hoffman CLOSED public testimony.
CS HCR 23 (FIN) was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 21(FIN)
"An Act relating to the membership of the Statewide
Suicide Prevention Council."
9:25:21 AM
REPRESENTATIVE ANNA FAIRCLOUGH, explained HB 21. She
referred to the Sponsor Statement (copy on file):
House Bill 21 would simply increase the number of
members appointed to the Statewide Suicide Prevention
Council from 16 members to 17 members and create an age
requirement for the youth member.
The additional member would be appointed by the
Governor and would give representation on the council
for members of our military. Suicide among our military
is on the rise and having an individual familiar with
the lives and challenges our military members face on a
daily basis is crucial to their overall well-being.
The new member must be one of the following; discharged
from, retired from, or engaged in active duty military
service or someone who is a mental health provider,
social worker, or other person actively providing a
health care service to discharged, retired, or active
military personnel.
House Bill 21 also changes the requirement for the
youth member who is appointed to the council. Currently
this appointee has to be enrolled in the 9th, 10th,
11th, or 12th grade of a secondary school. This member
would be changed allowing the youth to be 16 years of
age when appointed, but not older than 20 years of age.
This will allow our youth members to continue to serve
beyond completion of their secondary school education
and allow for continuity on the council.
9:26:17 AM
Senator Thomas understood that there was limited counseling
for soldiers returning from Iraq. He hoped the bill would
help to alleviate that problem.
9:26:55 AM
Senator Ellis appreciated the mission of the legislation. He
queried the current status to the senate bill on suicide
prevention that was being considered on the house side.
Representative Fairclough responded that the bill was
scheduled to be heard on the house side that same day.
9:27:39 AM
Co-Chair Hoffman noted the one new fiscal note from the
Department of Health and Social Services.
Co-Chair Hoffman OPENED public testimony.
9:28:03 AM
KATE BURKHART, EXECUTIVE DIRECTOR, SUICIDE PREVENTION
COUNCIL, JUNEAU, testified in support of SB 21. She noted
that the legislation was a direct result of collected
community input. She stressed the importance that a member
of the military veteran community be a part of the council.
She felt there needed to be an expansion of the age range
for the junior member of the council. She relayed that the
council would benefit from youth members being allowed to
serve as a regular member and not be limited to a truncated
term.
GAYLE TRIVETTE, VOLUNTEER, JUNEAU SUICIDE PREVENTION
COALITION, JUNEAU, testified in support of HB 21. She
believed that adding a seat to the council to represent
Alaska's many veterans, and the expansion of the youth term
requirements, would allow the council to better represent
the needs of both groups.
9:31:17 AM
Senator Olson wondered how the council interacted with
similar programs on the federal level.
Representative Fairclough replied that the council had
formalized a strategic plan to engage prevention groups on
the federal level.
CS HB 21 (FIN) was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 115(TRA)
"An Act designating a portion of Minnesota Drive and a
portion of O'Malley Road in Anchorage the Walter J.
Hickel Expressway."
9:32:39 AM
YASMINE HABASH, STAFF, REPRESENTATIVE CRAIG JOHNSON,
explained HB 115. She referred to the Sponsor Statement
(copy on file):
Walter J. Hickel served as the Governor of Alaska
twice, served with distinction as U.S. Secretary of the
Interior, and led and inspired the development of the
State of Alaska and the Circumpolar Arctic Region
throughout his long distinguished career. In Governor
Hickel's many elected and public roles he successfully
pushed to open Prudhoe Bay to oil development and
oversaw the permitting process for the Trans-Alaska
Pipeline among many other accomplishments.
HB 115 designates concurrently naming a portion of
Minnesota Drive and O'Malley Road in Anchorage the
Walter J. Hickel Expressway from 15th Avenue to the New
Seward Highway. This section of highway is 7.5 miles
long and by concurrently naming this section of highway
there will be no need for any household or business to
change their address.
9:33:39 AM
Senator Thomas wondered if there was a significant reason
for picking 15th Avenue as the starting point, instead of
downtown. Ms. Habash replied that she was not aware of any
significant reason for the designation, and agreed to
provide further information.
9:34:34 AM
Co-Chair Hoffman OPENED public testimony.
Co-Chair Hoffman CLOSED public testimony.
9:34:41 AM
Co-Chair Hoffman noted the one fiscal impact note from the
Department of Transportation and Public Facilities.
CS HB 11 (TRA) was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 360
"An Act enacting the Interstate Mining Compact and
relating to the compact; relating to the Interstate
Mining Commission; and providing for an effective
date."
9:35:29 AM
REPRESENTATIVE BOB LYNN, introduced HB 360. He explained
that the legislation would give Alaska a full vote in the
Interstate Mining Compact Commission (IMCC). He noted that
the state had been a member of the compact for 6 years but
as an associate member, never had a vote. The legislation
would give Alaska full voting rights in a formal vote in the
state compact while maintaining state sovereignty in mining
issues. He furthered that mining was a growing for in the
state's economy, and broadened the state's revenue base
beyond oil and gas. He shared that there were 45 direct
mining jobs in Alaska and 9,000 indirect jobs attributed to
mining. He said mining generated approximately $150 million
in state revenue, $17 million in local government revenue,
and over $179 million in payments for Alaska Native
Corporations. He said that a voting voice in the IMCC would
give Alaska a stronger voice on the federal level.
9:37:26 AM
Co-Chair Hoffman noted the one fiscal note from the House
Finance Committee which eliminated $20 thousand in travel
cost from the original note from the Department of Natural
Resources.
Co-Chair Hoffman OPENED public testimony.
9:37:57 AM
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, urged support of HB 360. He stated that mining
was an important aspect of Alaska's economy. He testified
that due to the streamlined permitting and regulatory
process of the state there were currently had 7 operating
mines that were contributing to the treasury. He relayed
that mining had become controversial in recent years,
bringing the strength of the permitting process into
question. He said that, under the direction of the governor,
the department was examining the permitting process in an
effort to better protect the environment. He asserted that
by joining the commission the state would gain leverage on
the federal level.
9:40:07 AM
Senator Thomas wondered what practical effect the commission
would have on existing mining operations.
Mr. Fogels replied that the Environmental Protection Agency
(EPA) was currently considering taking over bonding for
hard-rock mining in the nation. He said that every mining
state in the nation was concerned that once the bonding was
taken over the EPA could take over the entire mine
regulatory process for each state. He stated that the
commission was currently in discussion with the EPA to
educate them on the bonding programs already in existence,
with the hope that it would prompt the EPA to rethink their
initiative. He concluded that this was a case of the
commission voicing collective states concerns to the EPA.
9:41:41 AM
GREGORY CONRAD, EXECUTIVE DIRECTOR, INTERSTATE MINING
COMPACT COMMISSION, WASHINGTON D.C. (via teleconference),
urged committee support of HB 360. He explained the present
legislative and regulatory climate in Washington D.C.
demanded that state governments have a strong voice in order
to be heard. He said that the commission was recognized on
the federal level for their expertise on mining issues, and
had been invited to testify on behalf of the state in six
congressional hearings in the house and senate in 2012. He
stressed that it was the active participation and commitment
of the full member state that carried the organization
forward in terms of support and leadership. He expounded
that upon the enactment of the legislation the state would
have a formal vote in guiding the direction of the compact,
and the ability to chair committees of the compact. He
concluded that the passage of the legislation was in the
best interest for the state.
9:45:09 AM
Senator Olson noted some tension between the fisheries and
the mining industry in relation to the Pebble Mine project.
He queried the commission's position on the Pebble mine
project.
Mr. Conrad replied that the commission held no official
position. He believed that the commission could offer
direction in discussions of the types of issues associated
with the development of the Pebble Mine.
9:46:26 AM
Senator Egan noted that many of the member states were on
the East Coast. He wondered if there was a plan to encourage
more Western states to participate.
Mr. Conrad replied that Colorado, Utah, New Mexico, Wyoming
were associate members that were pursuing legislation to
become full members. He added that the commission was in the
process of working with Nevada, the newest associate member
state. He said that discussions were also underway with
Montana and Arizona. He explained that when the commission
was formed in 1970 the focus had been on Eastern coal mining
states as a result of legislation before congress at the
time. He shared that since that time the commission had
expanded the scope of its issues, initiatives, and
priorities beyond coal.
Co-Chair Hoffman CLOSED public testimony.
HB 360 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
9:48:31 AM
The meeting was adjourned at 9:48 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 21- Explanation of Changes.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 21 |
| CSHB 21- Sponsor Statement.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 21 |
| CSHB 21- Letter of Support- Douglas.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 21 |
| CSHB 21- Letter of Support- SSPC.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 21 |
| HB 21 - Sponsor Statement.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 21 |
| CSHB 115(TRA) Explanation of Changes.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 115 |
| CSHB 115(TRA) Google Map.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 115 |
| CSHB 115(TRA) Sponsor Statement.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 115 |
| CSHB 115(TRA) Support.pdf |
SFIN 4/12/2012 9:00:00 AM |
HB 115 |