Legislature(2011 - 2012)SENATE FINANCE 532

04/14/2012 01:00 PM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 56 INCLUDE ARSON IN CRIMES OF CONSPIRACY TELECONFERENCED
Moved HB 56 Out of Committee
+= HB 146 LAND TRANSFER FROM STATE AND ALASKA RR TELECONFERENCED
Moved CSHB 146(RES) Out of Committee
+= HB 196 BULK FUEL LOANS/POWER PROJECT FUND TELECONFERENCED
Moved CSHB 196(FIN) Out of Committee
+= HB 204 STATE PROCUREMENT CODE TELECONFERENCED
Moved HB 204 Out of Committee
+= HB 205 PUBLIC PROCUREMENT TELECONFERENCED
Moved HB 205 Out of Committee
+= HB 304 ALASKA FIRE STANDARDS COUNCIL TELECONFERENCED
Moved HB 304 Out of Committee
+= HB 337 BD OF ARCHITECTS, ENGINEERS, SURVEYORS TELECONFERENCED
Moved HB 337 Out of Committee
+= HB 365 AQUATIC INVASIVE SPECIES TELECONFERENCED
Moved CSHB 365(FIN) Out of Committee
= HB 286 G.O. BONDS: TRANSPORTATION PROJECTS
Moved SCS CSHB 286(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 14, 2012                                                                                            
                         2:13 p.m.                                                                                              
                                                                                                                                
2:13:18 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 2:13 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Max Gruenberg;  Brandon Brefczynski,  Staff,                                                                    
Representative   Tammie    Wilson;   Erin    Shine,   Staff,                                                                    
Representative   Craig   Johnson;  Lynette   Bergh,   Staff,                                                                    
Representative Steve  Thompson; Representative  Paul Seaton;                                                                    
Representative   Anna   Fairclough;   Representative   Bryce                                                                    
Edgmon;  Weston Eiler,  Staff, Senator  Bert Stedman;  Karen                                                                    
Rehfeld, Director, Office of Management and Budget                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB  56    INCLUDE ARSON IN CRIMES OF CONSPIRACY                                                                                 
                                                                                                                                
          HB 56 was REPORTED out of committee with a "do                                                                        
          pass"     recommendation and with previously                                                                          
          published fiscal    note: FN4 (DOL), FN5 (DPS),                                                                       
          FN6 (DOC).                                                                                                            
                                                                                                                                
CS HB 146 (RES)                                                                                                                 
          LAND TRANSFER FROM STATE AND ALASKA RR                                                                                
                                                                                                                                
          CS HB 146 (RES) was REPORTED out of committee                                                                         
          with a    "do pass" recommendation and with                                                                           
          previously published     fiscal notes: FN3                                                                            
          (DCCED) and FN4 (DNR).                                                                                                
                                                                                                                                
CS HB 196 (FIN)                                                                                                                 
          BULK FUEL LOANS/POWER PROJECT FUND                                                                                    
                                                                                                                                
          CS HB 196 (FIN) was REPORTED out of committee                                                                         
          with a    "do pass" recommendation and with                                                                           
          previously published     fiscal notes: FN 4                                                                           
          (HFIN/DCCED), FN5 (HFIN/DCCED), and     FN6                                                                           
          (HFIN/DCCED).                                                                                                         
                                                                                                                                
HB 204    STATE PROCUREMENT CODE                                                                                                
                                                                                                                                
          HB 204 was REPORTED out of committee with a "do                                                                       
          pass"     recommendation and with previously                                                                          
          published fiscal    note: FN2 (DOA).                                                                                  
                                                                                                                                
HB 205    PUBLIC PROCUREMENT                                                                                                    
                                                                                                                                
          HB 205 was REPORTED out of committee with a "do                                                                       
          pass"     recommendation and with previously                                                                          
          published fiscal    notes: FN2 (DOA) and FN3                                                                          
          (DLWD).                                                                                                               
                                                                                                                                
CSHB 286 (FIN)                                                                                                                  
          G.O. BONDS: TRANSPORTATION PROJECTS                                                                                   
                                                                                                                                
          CS HB 286 (FIN) was REPORTED out of committee                                                                         
          with a    "do pass" recommendation and with a new                                                                     
          fiscal impact  note from the Department of                                                                            
          Revenue.                                                                                                              
                                                                                                                                
HB 304    ALASKA FIRE STANDARDS COUNCIL                                                                                         
                                                                                                                                
          HB 304 was REPORTED out of committee with a "do                                                                       
          pass"     recommendation and with previously                                                                          
          published fiscal    note: FN1 (DPS).                                                                                  
                                                                                                                                
HB 337    BD OF ARCHITECTS, ENGINEERS, SURVEYORS                                                                                
                                                                                                                                
          HB 337 was REPORTED out of committee with a "do                                                                       
          pass"     recommendation and with previously                                                                          
          published fiscal    note: FN1 (DCCED).                                                                                
                                                                                                                                
CS HB 365 (FIN)                                                                                                                 
          AQUATIC INVASIVE SPECIES                                                                                              
                                                                                                                                
          CS HB 365 (FIN) was REPORTED out of committee                                                                         
          with a    "do pass" recommendation and with                                                                           
          previously published     fiscal notes: FN1                                                                            
          (DCCED), FN2 (DCCED), FN3 (DHSS),  FN6 (DFG), and                                                                     
          FN7 (DNR).                                                                                                            
                                                                                                                                
HOUSE BILL NO. 56                                                                                                             
                                                                                                                                
     "An Act making arson in the first degree and arson in                                                                      
     the second degree serious felonies for purposes of                                                                         
     application of the crime of conspiracy."                                                                                   
                                                                                                                                
2:14:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MAX  GRUENBERG,  stated  that  HB  56  added                                                                    
second degree arson to the crime of conspiracy.                                                                                 
                                                                                                                                
Co-Chair  Stedman  noted   the  three  previously  published                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  HB 56  out of  committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note(s). Seeing NO OBJECTION it was SO ORDERED.                                                                                 
                                                                                                                                
HB  56  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN4 (DOL), FN5 (DPS), FN6 (DOC).                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 146(RES)                                                                                                
                                                                                                                                
     "An  Act  authorizing the  transfer  of  land from  the                                                                    
     State of Alaska and  the Alaska Railroad Corporation to                                                                    
     property  owners  along  the  Eielson  Spur  Line;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
2:15:15 PM                                                                                                                    
                                                                                                                                
BRANDON  BREFCZYNSKI, STAFF,  REPRESENTATIVE TAMMIE  WILSON,                                                                    
stated  that  HB  146  restored  any  reversionary  property                                                                    
rights to  property owners Eielson Spur  Line, and corrected                                                                    
the Alaska Railroad Transfer Act.                                                                                               
                                                                                                                                
Co-Chair  Stedman noted  the fiscal  notes  attached to  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  CS HB  146 (RES)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying  fiscal notes.  Seeing NO  OBJECTION it  was SO                                                                    
ORDERED.                                                                                                                        
                                                                                                                                
CS HB 146 (RES) was REPORTED out of committee with a  "do                                                                       
pass"  recommendation and  with previously  published fiscal                                                                    
notes: FN3 (DCCED) and FN4 (DNR).                                                                                               
                                                                                                                                
HOUSE BILL NO. 304                                                                                                            
                                                                                                                                
     "An Act relating to the membership of the Alaska Fire                                                                      
     Standards Council."                                                                                                        
                                                                                                                                
2:16:34 PM                                                                                                                    
                                                                                                                                
ERIN SHINE,  STAFF, REPRESENTATIVE CRAIG  JOHNSON, explained                                                                    
that HB  304 made three  changes to the  existing membership                                                                    
of the Alaska Fire Standards Council.                                                                                           
                                                                                                                                
Co-Chair  Stedman  pointed  out  the fiscal  note  from  the                                                                    
Department of Public Safety.                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  304 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. Seeing NO OBJECTION it was SO ORDERED.                                                                                    
                                                                                                                                
HB  304 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN1 (DPS).                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 337                                                                                                            
                                                                                                                                
     "An  Act  relating to  the  Board  of Registration  for                                                                    
     Architects, Engineers,  and Land  Surveyors and  to the                                                                    
     Department   of  Commerce,   Community,  and   Economic                                                                    
     Development."                                                                                                              
                                                                                                                                
2:17:35 PM                                                                                                                    
                                                                                                                                
LYNETTE BERGH, STAFF,  REPRESENTATIVE STEVE THOMPSON, stated                                                                    
that HB  337 revised the  statutes to designate  a full-time                                                                    
investigator to  serve the  Architects, Engineers,  and Land                                                                    
Surveyors Board.                                                                                                                
                                                                                                                                
Co-Chair Stedman  noted the one previously  published fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  337 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. Seeing NO OBJECTION it was SO ORDERED.                                                                                    
                                                                                                                                
HB  337 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN1 (DCCED).                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 365(FIN)                                                                                                
                                                                                                                                
     "An Act relating to the  rapid response to, and control                                                                    
     of, aquatic invasive species."                                                                                             
                                                                                                                                
REPRESENTATIVE  PAUL SEATON,  stated  that HB  365 gave  the                                                                    
Department of Fish  and Game the ability  to rapidly respond                                                                    
to aquatic invasive species.                                                                                                    
                                                                                                                                
Co-Chair Stedman noted the  five previously published fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  CS HB  365 (FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying  fiscal notes.  Seeing NO  OBJECTION it  was SO                                                                    
ORDERED.                                                                                                                        
                                                                                                                                
CS HB 365 (FIN) was REPORTED out of committee with a  "do                                                                       
pass"  recommendation and  with previously  published fiscal                                                                    
notes: FN1 (DCCED), FN2 (DCCED),  FN3 (DHSS), FN6 (DFG), and                                                                    
FN7 (DNR).                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 204                                                                                                            
                                                                                                                                
     "An  Act  relating  to   the  State  Procurement  Code,                                                                    
     including the  use of small procurement  provisions for                                                                    
     certain  amounts of  leased space,  the requirement  of                                                                    
     Alaska  business license  proof for  Alaska bidder  and                                                                    
     other  procurement  preferences,  the  registration  of                                                                    
     construction   contract  bidders   and  offerors,   the                                                                    
     establishment and  maintenance of lists of  persons who                                                                    
     want  to provide  supplies or  services  to the  state,                                                                    
     state    agencies,    and   state    instrumentalities,                                                                    
     electronic bids and  proposals, small procurements, and                                                                    
     writings; and providing for an effective date."                                                                            
                                                                                                                                
2:19:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH, explained  that HB 204 would                                                                    
update Alaska's procurement code.                                                                                               
                                                                                                                                
Co-Chair Stedman noted the  previously published fiscal note                                                                    
from the Department of Administration.                                                                                          
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  204 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. Seeing NO OBJECTION it was SO ORDERED.                                                                                    
                                                                                                                                
HB  204 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN2 (DOA).                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 205                                                                                                            
                                                                                                                                
     "An   Act  relating   to   state   and  public   entity                                                                    
     procurement,  including  the  State  Procurement  Code,                                                                    
     procurement preferences, and  contract awards; relating                                                                    
     to the  meaning of  'Alaska bidder'; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
2:20:34 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough stated  that  HB 205  streamlined                                                                    
the procurement process and updates other statutes.                                                                             
                                                                                                                                
Co-Chair Stedman  noted the two previously  published fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  205 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes. Seeing NO OBJECTION it was SO ORDERED.                                                                                   
                                                                                                                                
HB  205 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and  with previously published  fiscal notes:                                                                    
FN2 (DOA) and FN3 (DLWD).                                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 196(FIN)                                                                                                
                                                                                                                                
     "An Act relating  to the power project fund  and to the                                                                    
     bulk  fuel revolving  loan  fund;  establishing a  bulk                                                                    
     fuel  loan  account  and  making  the  bulk  fuel  loan                                                                    
     account and the bulk  fuel bridge loan account separate                                                                    
     accounts  in   the  bulk  fuel  revolving   loan  fund;                                                                    
     providing for  technical assistance to  rural borrowers                                                                    
     under the  bulk fuel  bridge loan program;  relating to                                                                    
     the  administration and  investment  of  the bulk  fuel                                                                    
     revolving loan  fund by the division  in the Department                                                                    
     of  Commerce,   Community,  and   Economic  Development                                                                    
     responsible  for community  and  regional affairs;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
2:21:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BRYCE  EDGMON,   explained   that  HB   196                                                                    
consolidated the two  rural fuel loans into  the Division of                                                                    
Community  and  Regional  Affairs.   He  remarked  that  the                                                                    
administration supported the bill.                                                                                              
                                                                                                                                
Co-Chair  Stedman  noted   the  three  previously  published                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  CS HB  196 (FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying  fiscal notes.  Seeing NO  OBJECTION it  was SO                                                                    
ORDERED.                                                                                                                        
                                                                                                                                
CS HB 196 (FIN) was REPORTED out of committee with a  "do                                                                       
pass"  recommendation and  with previously  published fiscal                                                                    
notes: FN 4 (HFIN/DCCED), FN5 (HFIN/DCCED), and  FN6                                                                            
(FIN/DCCED).                                                                                                                    
                                                                                                                                
2:22:56 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
4:34:20 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 286(FIN)                                                                                                
                                                                                                                                
     "An Act providing  for and relating to  the issuance of                                                                    
     general obligation bonds for  the purpose of paying the                                                                    
     cost of state transportation projects; and providing                                                                       
     for an effective date."                                                                                                    
                                                                                                                                
4:34:32 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  CS HB  286  (FIN),  Work Draft  27-GH2769\E                                                                    
(Kirsh, 4/14/12).                                                                                                               
                                                                                                                                
WESTON  EILER, STAFF,  SENATOR BERT  STEDMAN, explained  the                                                                    
changes  in the  committee  substitute. He  stated that  the                                                                    
committee  substitute  added  two projects,  and  makes  one                                                                    
elimination.  There is  no total  amount  change put  before                                                                    
voters  as part  of  the  general obligation  transportation                                                                    
bond. He  looked at page 2,  Section 3, line 11  changed the                                                                    
amount  from $191.4  million to  $195.4  million. He  stated                                                                    
that line  20 added  a project for  port improvements  of $3                                                                    
million. He  explained that a  project was added on  line 22                                                                    
for boat  harbor improvements  of $1  million. He  looked at                                                                    
page 3,  Section 4,  line 10 replaced  the total  amount for                                                                    
the section for the  Department of Transportation and Public                                                                    
Facilities  to  $258.5 million.  He  stated  that there  was                                                                    
deletion of  line 27 of  the previous version, which  was $4                                                                    
million for  port clearance  access improvements.  He stated                                                                    
that the changes had been  agreed to by the delegations from                                                                    
western Alaska.                                                                                                                 
                                                                                                                                
Co-Chair Stedman  WITHDREW his OBJECTION. Seeing  NO further                                                                    
OBJECTION it was SO ORDERED.                                                                                                    
                                                                                                                                
Senator   Olson   commented   thanked  the   committee   for                                                                    
considering his district's projects.                                                                                            
                                                                                                                                
4:37:40 PM                                                                                                                    
                                                                                                                                
KAREN REHFELD,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
thanked the committee for their work on the bill.                                                                               
                                                                                                                                
Co-Chair Stedman noted the new zero fiscal note.                                                                                
                                                                                                                                
Co-Chair Hoffman MOVED to report SCS  CS HB 286 (FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying  fiscal note.  Seeing  NO OBJECTION  it was  SO                                                                    
ORDERED.                                                                                                                        
                                                                                                                                
CS HB 286 (FIN) was REPORTED out of committee with a  "do                                                                       
pass" recommendation and with a new fiscal impact note from                                                                     
the Department of Revenue.                                                                                                      
                                                                                                                                
4:39:03 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
6:41:17 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 6:41 PM.                                                                                           
                                                                                                                                
                                                                                                                                

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