Legislature(2017 - 2018)SENATE FINANCE 532
05/03/2018 02:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB106 | |
| HB76 | |
| HB304 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 106 | TELECONFERENCED | |
| += | HB 76 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 304 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 3, 2018
3:06 p.m.
3:06:24 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 3:06 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Gary Stevens
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Juli Lucky, Staff, Senator Anna MacKinnon; Lizzie Kubitz,
Staff, Representative Matt Claman; Liz Harpold, Staff,
Representative Dan Ortiz; Britteny Cioni-Haywood, Director,
Division of Economic Development, Department of Commerce,
Community and Economic Development.
PRESENT VIA TELECONFERENCE
Nicole Nelson, Alaska Legal Services, Anchorage; Art
Delaune, Governor's Council on Disabilities and Special
Education.
SUMMARY
CSHB 76(FSH)
MARICULTURE REVOLVING LOAN FUND
SCS CSHB 76(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one new fiscal
impact note from the Department of Commerce, Community
and Economic Development, and one new zero fiscal note
from Department of Fish and Game.
HB 106 CIVIL LEGAL SERVICES FUND
SCS HB 106(FIN) was REPORTED out of committee with a
"do pass" recommendation and with a new fiscal impact
note from the Department of Commerce, Community and
Economic Development, and a new fiscal impact note
from the Office of the Governor for Fund Transfers.
CSHB 304(FIN)
MICROLOAN REVOLVING FUND & LOANS; REPORT
SCS CSHB 304(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published zero fiscal note: FN 1(CED).
HOUSE BILL NO. 106
"An Act allowing appropriations to the civil legal
services fund from court filing fees."
3:07:38 PM
Co-Chair MacKinnon relayed that the committee had heard HB
106 on April 3, 2018; at which time the public hearing was
opened and closed.
Vice-Chair Bishop MOVED to ADOPT proposed committee
substitute for HB 106(FIN), Work Draft 30-LS0397\J
(Radford, 4/30/18).
Co-Chair MacKinnon OBJECTED for discussion.
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, discussed the
changes to the bill. She noted that the previous time the
bill was heard, there had been discussion regarding the
percentage of the filing fees that should be sent to the
Alaska Legal Services Corporation (ALSC). She noted that
the Committee Substitute (CS) increased the percent to 10
percent of court filing fees and had also made a technical
change that referenced the previously closed fiscal year.
The technical change had been at the recommendation of the
Legislative Finance Division, in order to make clear which
fiscal year filing fees were coming from.
Ms. Lucky informed that the changes to the bill
necessitated two new fiscal notes.
Ms. Lucky addressed a new fiscal note (FN 5) from the
Office of the Governor for Fund Transfers, with a transfer
to the Civil Legal Services Fund. The FY 19 appropriation
was for $300,300; with the same amount estimated for the
out years.
Ms. Lucky addressed a new fiscal note (FN 4) from
Department of Commerce, Community and Economic Development;
which showed a one-time appropriation of $300,300 for FY
19. The amount would go into the base budget for the out
years.
Co-Chair MacKinnon WITHDREW her OJBECTION. There being NO
OBJECTION, it was so ordered.
3:10:51 PM
LIZZIE KUBITZ, STAFF, REPRESENTATIVE MATT CLAMAN, stated
that the sponsor was supportive of the changes to the bill.
She reiterated that the CS would allow the legislature to
appropriate up to 10 percent of filing fees received by the
Court System (for the previously closed fiscal year) to the
Civil Legal Services Fund. The sponsor viewed the
legislation as a possible mechanism for providing more
funds to ALSC.
Co-Chair MacKinnon recalled that the original bill had a 25
percent fee associated with it. The committee had doubled
the fee in order to increase access in designating a larger
share of the Court System receipts. She understood that 25
percent was closer to a number that was previously
allocated in General Fund (GF) dollars to the Civil Legal
Services Fund.
Ms. Kubitz deferred the question to staff from Alaska Legal
Services. She relayed that the sponsor was supportive of
the 10 percent compromise as proposed in the CS.
NICOLE NELSON, ALASKA LEGAL SERVICES, ANCHORAGE (via
teleconference), relayed that ALSC received a general
appropriation of $450,000 per year that came through DCCED.
Originally ALSC had thought the 25 percent of filing fees
would replace the appropriation and allow ALSC to expand
its services to more Alaskans. She appreciated the
compromise of 10 percent of the Court System filing fees;
but emphasized the original intent was not to lower the
amount of funding from $450,000.
3:14:33 PM
Co-Chair MacKinnon referenced an additional appropriation
of $300,000 listed in the fiscal note.
Co-Chair MacKinnon explained that the fiscal note reflected
an effort to stabilize funding. She thought it was unusual
to allocate state revenue to an individual non-profit. She
thought the extenuating factor was the need for Alaskan's
access to legal services considering the abrupt rise of
crime in the state. She recalled that similar legislation
had not been successful in the past due to opposition to
designating funds for an individual non-profit.
Vice-Chair Bishop thought the committee's action was
recognizing the needs of Alaskans. He supported the bill.
3:16:20 PM
ART DELAUNE, GOVERNOR'S COUNCIL ON DISABILITIES AND SPECIAL
EDUCATION (via teleconference), spoke in support of the
bill, which he felt would positively impact the state's
most vulnerable constituencies. He thought the without
vital legal services, low-income Alaskans with disabilities
would be at risk for unfair treatment. He discussed his
work as an independent living advocate and emphasized that
often individuals with disabilities were at risk of
unscrupulous parties. He commented on the increased number
of individuals below the poverty line.
Senator Micciche commented on the volunteer service that
went into ALSC. He believed the underprivileged should have
access to medical care. He supported the bill.
Co-Chair MacKinnon stated that the bill was a compromise
between the two bodies. It was her hope that the bill would
pass the Senate.
Vice-Chair Bishop MOVED to report SCS HB 106(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS HB 106(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new fiscal impact note from
the Department of Commerce, Community and Economic
Development; and a new fiscal impact note from the Office
of the Governor for Fund Transfers.
3:20:22 PM
AT EASE
3:21:57 PM
RECONVENED
CS FOR HOUSE BILL NO. 76(FSH)
"An Act relating to the mariculture revolving loan
fund and loans and grants from the fund; and providing
for an effective date."
3:21:57 PM
Co-Chair MacKinnon discussed the history of the bill in
committee. The committee had considered a Sectional
Analysis and had reviewed the fiscal notes.
Vice-Chair Bishop MOVED to ADOPT proposed committee
substitute for CSHB 76, Work Draft 30-LS0343\M (Bullard,
4/25/18).
Co-Chair MacKinnon OBJECTED for discussion.
Ms. Lucky discussed the changes to the bill. She explained
that the first time the committee heard the bill there had
been confusion regarding loan terms, which was previously
in Section 13 of the bill. She had worked with the bill
drafter and Sponsor, to clarify the intent, which was now
in Section 12 of the bill.
Ms. Lucky discussed an Explanation of Changes document
(copy on file):
The Senate Finance CS clarifies when payments and
interest accrual is required see section 12 on page
5, lines 15-28.
• For the existing farm loans, the statute
is unchanged: the department cannot
require payments for the first six years
of the loan. The department has the
option of providing that interest
not accrue during that period.
• For the new hatchery loans: there are (1) no
payments and (2) no interest accrual for the
first six years of the loan. The department can
extend both for the first 11 years.
The Senate Finance CS also removes the authority to
make grants from the revolving loan fund. Language
pertaining to grants was located on page 3, lines 8-
13, of the previous bill.
Ms. Lucky understood that the CS would have no effect on
the fiscal notes previously reviewed.
3:25:24 PM
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
OBJECTION, it was so ordered.
LIZ HARPOLD, STAFF, REPRESENTATIVE DAN ORTIZ, relayed that
the sponsor was supportive of the changes to the bill.
Co-Chair MacKinnon asked for discussion of the fiscal note.
BRITTENY CIONI-HAYWOOD, DIRECTOR, DIVISION OF ECONOMIC
DEVELOPMENT, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, stated that the fiscal note from her
department was unchanged from the previous version of the
bill.
Co-Chair MacKinnon asked if the bill as proposed in the CS
would work for those looking for economic opportunities.
Ms. Cioni-Haywood answered in the affirmative. She
explained that the CS would allow for hatchery loans to
take place, which was the request of the industry.
Senator Stevens observed that the fund was small. He
wondered how long the fund could continue without grants.
He was concerned about continuation of the grants would
reduce the years to make use of loan funds.
Ms. Cioni-Haywood agreed that the loan fund was relatively
small and would need time for repayment from hatchery loans
for the fund to replenish and revolve. If the money was
taken out in the form of grants, the funds did not get
returned and the fund would be reduced by $4.5 million to
$5 million.
Senator Stevens assumed that the sponsor was in accord with
removing the grant portion of the bill.
Ms. Harpold answered in the affirmative.
3:29:50 PM
Vice-Chair Bishop MOVED to report SCS CSHB 76(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 76(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal impact note
from the Department of Commerce, Community and Economic
Development, and one new zero fiscal note from Department
of Fish and Game.
3:30:23 PM
AT EASE
3:31:51 PM
RECONVENED
CS FOR HOUSE BILL NO. 304(FIN)
"An Act relating to the Alaska microloan revolving
loan fund and loans from the fund."
3:31:51 PM
Co-Chair MacKinnon conveyed that the committee had heard
the Senate version of the bill on April 10, 2018. The
committee had heard a presentation on the bill and had
opened and closed the public hearing and had reviewed the
fiscal notes.
Co-Chair MacKinnon relayed that her office heard a concern
regarding the time-frame of whether the loans were
revolving or not based on the length of the loan being
proposed on page 2 of the bill. She asked for committee
discussion before amendments were considered. There were
members who wanted a time frame of 10 years, and others
that proposed 12 years.
3:33:33 PM
Senator von Imhof recalled previous discussions on the
bill. She understood the state's perspective of wanting to
increase the term from six years to 15 years in order to
allow for cash flow to develop in the industry; as well as
provide time for the borrower to afford to make payments on
the loan. She referenced a lack of loan applicants and the
idea that increasing the amortization schedule would
increase the affordability of the loan. She considered that
the longer the term, the higher the risk was for the state.
She thought there could be a compromise between 10 and 15
years.
Senator Micciche stated that he was in accord with a term
of twelve years. He observed that other state loan funds
had significantly longer terms. He hoped to see more use of
the loan fund and more economic development from the fund.
Senator von Imhof MOVED to ADOPT Amendment 1:
Page 2, line 2, following "term of"
DELETE "15"
INSERT "12"
There being NO OBJECTION, it was so ordered. Amendment 1
was ADOPTED.
Ms. Cioni-Haywood expressed that the department was
supportive of the amendment, which still allowed
flexibility within the program. There would be no
associated changes to the fiscal note.
3:36:40 PM
AT EASE
3:37:02 PM
RECONVENED
Vice-Chair Bishop discussed FN 1, which was a zero fiscal
note from Department of Commerce, Community and Economic
Development. He read from the Analysis on page 2 of the
fiscal note:
If this legislation were to pass a regulations project
would be required; the minimal costs associated can be
absorbed by current budgetary authorization. There is
no anticipated fiscal impact to the Division of
Economic Development from this bill.
Vice-Chair Bishop MOVED to ADOPT MOVED to report SCS CSHB
304(FIN) out of Committee with individual recommendations
and the accompanying fiscal note. There being NO OBJECTION,
it was so ordered.
SCS CSHB 304(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one previously published zero
fiscal note: FN 1(CED).
3:38:14 PM
AT EASE
3:40:55 PM
RECONVENED
Co-Chair MacKinnon discussed the agenda for the following
day.
ADJOURNMENT
3:41:39 PM
The meeting was adjourned at 3:41 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 304 Amendment 1 von Imhof.pdf |
SFIN 5/3/2018 2:30:00 PM |
HB 304 |
| HB 76 SCS FIN v. M Explanation.pdf |
SFIN 5/3/2018 2:30:00 PM |
HB 76 |
| HB 76 SCS FIN work draft version. M.pdf |
SFIN 5/3/2018 2:30:00 PM |
HB 76 |
| HB 106 SCS FIN work draft version. J.pdf |
SFIN 5/3/2018 2:30:00 PM |
HB 106 |