Legislature(1993 - 1994)

04/25/1994 09:10 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 25, 1994                                        
                            9:10 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #79, Side 1 (000-end)                                                
  SFC-94, #79, Side 2 (end-000)                                                
  SFC-94, #83, Side 2 (000-140)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue  Pearce,  Co-chair,  convened the  meeting  at                 
  approximately 9:10 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to Co-chairs Pearce  and Frank, Senators Rieger,                 
  Kerttula, and Sharp were present.   Senator Jacko joined the                 
  meeting after it  was in  progress.  Senator  Kelly did  not                 
  attend the meeting.                                                          
                                                                               
  ALSO  ATTENDING:    Robert   Hallford,  Northern  Air  Cargo                 
  employee,   and   Vice  President,   Alaskan   Air  Carriers                 
  Association;  Juanita  Hensley,   Chief,  Driver   Services,                 
  Division of  Motor Vehicles,  Department  of Public  Safety;                 
  Mary Nordale, Federal Express; Pat  O'Brien, Social Services                 
  Program  Officer,  Division  of  Family  &  Youth  Services,                 
  Department of Health & Social Services; Gerald L. Gallagher,                 
  Director,  Division   of  Mining,   Department  of   Natural                 
  Resources;  Randy  Welker, Legislative  Auditor, Legislative                 
  Audit Division;  James Baldwin, Assistant  Attorney General,                 
  General Civil Section,  Juneau, Department of Law;  Tom Dow,                 
  Vice President of  Hotels, Princess  Tours; Jerry  Burnette,                 
  aide to  Senator Phillips; Virginia Stonkus, fiscal analyst,                 
  Legislative Finance Division; representatives  of the media,                 
  aides  to  committee  members  and   other  members  of  the                 
  legislature.                                                                 
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSSB 56(STA):  An  Act relating to  the budget  reserve fund                 
                 established   under   art.   IX,   sec.   17,                 
                 Constitution  of  the  State  of Alaska;  and                 
                 providing for an effective date.                              
                                                                               
                 CSSB  56(FIN)  work  draft  "A" was  ADOPTED.                 
                 Jerry  Burnette,  aide  to Senator  Phillips;                 
                 James  Baldwin,  Assistant  Attorney General,                 
                 General Civil Section, Juneau,  Department of                 
                 Law; and Randy  Welker, Legislative  Auditor,                 
                 Legislative Audit  Division, spoke to  SB 56.                 
                                                                               
                                                                               
                 Discussion was had by Senators Rieger, Sharp,                 
                 Co-chairs Frank and Pearce regarding a  forth                 
                 coming decision by the  Supreme Court and its                 
                 effect on SB  56.  CSSB  56(FIN) was HELD  in                 
                 committee  with  SJR  52 in  order  that  new                 
                 language  could  be   drafted  for  a  Senate                 
                 Finance Committee CS.                                         
                                                                               
  CSSB 166(JUD): An Act  relating to  registration of  a motor                 
                 vehicle and suspension of a driver's  license                 
                 for failure to appear in  court or failure to                 
                 pay a fine.                                                   
                                                                               
                 Juanita  Hensley,  Chief,   Driver  Services,                 
                 Division  of  Motor  Vehicles, Department  of                 
                 Public  Safety, testified  in  support of  SB
                 166.   Senator Rieger MOVED  for adoption  of                 
                 amendment  1.   Amendment 1  was ADOPTED  for                 
                 incorporation  within  CSSB  166(FIN).   CSSB
                 166(FIN) was  REPORTED out of  committee with                 
                 individual recommendations, a fiscal note for                 
                 the  Courts  in  the amount  of  $6.9,  and a                 
                 fiscal note for the  Department of Safety for                 
                 $101.9 with a revenue of $(247.5).                            
                                                                               
  CSSB 256(TRA): An Act relating  to the tax on  transfers and                 
                 consumption of aviation  fuel; and  providing                 
                 for an effective date.                                        
                                                                               
                 Mary Nordale,  representing Federal  Express,                 
                 testified in  opposition to  SB 256.   Robert                 
                 Hallford,  Northern  Air Cargo  employee, and                 
                 Vice   President,   Alaskan    Air   Carriers                 
                 Association,  testified  in  support  of  the                 
                 bill.   CSSB  256(TRA) was  REPORTED  out  of                 
                 committee  with  individual  recommendations,                 
                 and fiscal note for Department of Revenue for                 
                 $20.4                                                         
                                                                               
  CSSB 268(JUD): An Act relating to facilities for the care of                 
                 children;  to  child  placement agencies;  to                 
                 maternity  homes;   to  certain   residential                 
                 facilities for  adults; and  to foster  homes                 
                 for adults;  and providing  for an  effective                 
                 date.                                                         
                                                                               
                 Pat O'Brien, Social Services Program Officer,                 
                 Division   of   Family   &  Youth   Services,                 
                 Department of Health & Social Services, spoke                 
                 to SB 268.  CSSB 268(JUD) was REPORTED out of                 
                 committee with individual recommendations and                 
                                                                               
                                                                               
                 a fiscal note for the  Department of Health &                 
                 Social Services for $65.0.                                    
                                                                               
  CSSB 320(L&C): An Act relating to architects, engineers, and                 
                 land surveyors.                                               
                                                                               
                 Co-chair  Pearce  announced  that   the  only                 
                 change to CSSB 320(FIN) work draft "R" was to                 
                 "tighten" the title.   The committee  ADOPTED                 
                 CSSB 320(FIN) work draft "R".  Senator Rieger                 
                 OBJECTED  to  the inclusion  of postsecondary                 
                 teachers.   CSSB 320(FIN) was REPORTED out of                 
                 committee with "no recommendation,"  and zero                 
                 fiscal notes for the Department of Commerce &                 
                 Economic  Development  and the  Department of                 
                 Transportation & Public Facilities.                           
                                                                               
  CSSB 339(RES): An  Act   relating  to  the   management  and                 
                 disposal   of   state  land   and  resources;                 
                 relating   to   certain  remote   parcel  and                 
                 homestead entry land  purchase contracts  and                 
                 patents; and providing for an effective date.                 
                                                                               
                 Gerald  L.  Gallagher, Director,  Division of                 
                 Mining,  Department  of   Natural  Resources,                 
                 spoke to SB  339 by section.   Questions were                 
                 asked of Mr. Gallagher by Senators Rieger and                 
                 Jacko.   CSSB  339(RES) was  REPORTED out  of                 
                 committee  with  individual  recommendations,                 
                 and a zero fiscal note  for the Department of                 
                 Natural Resources with revenue of $(100.0).                   
                                                                               
  CSSB 341(RES): An  Act   relating  to  the   Alaska  Tourism                 
                 Marketing  Council;  and  providing   for  an                 
                 effective date.                                               
                                                                               
                 Scheduled but not heard.                                      
                                                                               
  CSSB 358(STA): An  Act   relating  to   the  existence   and                 
                 functions   of   certain   multimember  state                 
                 bodies,    including     boards,    councils,                 
                 commissions,  associations,  or  authorities;                 
                 and providing for an effective date.                          
                                                                               
                 Scheduled but not heard.                                      
                                                                               
  CSSB 370(JUD): An Act providing  an exemption from  gambling                 
                 laws for  gambling conducted by  cruise ships                 
                 for their ticketed passengers in the offshore                 
                                                                               
                                                                               
                 water  of   the  state   outside  of   ports;                 
                 requiring certain  disclosures in  connection                 
                 with  promotions on  board  cruise ships  and                 
                 making violation of that  provision an unfair                 
                 trade practice; defining  `cruise ship';  and                 
                 providing  for  exemption  fees  for  certain                 
                 cruise ships before they can conduct gambling                 
                 in the offshore water of the state.                           
                                                                               
                 Tom Dow, Vice  President of Hotels,  Princess                 
                 Tours, spoke to CSSB 370(FIN).  CSSB 370(FIN)                 
                 work draft "U" was HELD in committee.                         
                                                                               
  SJR 52:        Proposing amendments to  the Constitution  of                 
                 the  State of Alaska  relating to  the budget                 
                 reserve fund.                                                 
                                                                               
                 Scheduled  but  not heard.    SJR 52  will be                 
                 rescheduled with SB 56.                                       
                                                                               
  CS FOR SENATE BILL NO. 256(TRA):                                             
                                                                               
            An  Act  relating  to  the  tax on  transfers  and                 
            consumption of aviation fuel; and providing for an                 
            effective date.                                                    
                                                                               
  CO-CHAIR  PEARCE  announced  that  SB  256  was  before  the                 
  committee and invited Mary Nordale, Federal Express, to join                 
  the members at the table.                                                    
                                                                               
  MARY NORDALE said that Federal Express was opposed to SB 256                 
  for several reasons.   One, it would add  approximately $12-                 
  13,000 per  month to  the cost  of their  operations out  of                 
  Anchorage.  She  felt this legislation placed the  burden of                 
  small airports on  large air carriers that derive no benefit                 
  from that service.   In 1993, the  legislature directed that                 
  no landing fees be charged at  small rural airports to those                 
  air carriers who use those airports.  She felt if it was the                 
  determination of the  legislature that no such  landing fees                 
  should be charged, then  it should be a general  subsidy and                 
  not a subsidy supported by large carriers.                                   
                                                                               
  Federal  Express   believed  that  this   legislation  would                 
  discourage  increased  usage  of   Anchorage  and  Fairbanks                 
  International  Airports  by  large  international  carriers.                 
  When the  stretch 747s  were developed,  usage of  Anchorage                 
  International Airport dropped  to almost nothing.   She also                 
  believed that the foreign air carriers which pay a large fee                 
  to  Anchorage  and  Fairbanks  would  likely diminish  their                 
  service   because  of   higher  costs   imposed  making   it                 
  uncompetitive.  Federal Express also predicted that it would                 
  diminish purchases  of fuel  in Alaska to  the detriment  of                 
                                                                               
                                                                               
  Mapco,  and  Mapco  would  be  the most  seriously  effected                 
  business  in  the  state.   She  said  Federal  Express  was                 
  exploring alternatives  to purchasing  fuel in  Anchorage in                 
  order to  stay competitive.  Federal Express  asked that the                 
  bill be held so a representative from the company could talk                 
  to the committee.  He would be in town this afternoon.                       
                                                                               
  ROBERT  HALLFORD,  Northern  Air  Cargo  employee  and  Vice                 
  President of Alaskan  Air Carriers Association, representing                 
  large  and small air carriers  said that the Association was                 
  unanimous  in its  support of SB  256.   It was a  matter of                 
  choice  that the fuel  tax be increased,  not desirable, but                 
  the  lesser  of  two  evils  because  without  the  fuel tax                 
  increase, there would be a reimposition of the rural landing                 
  fees.  He disagreed with testimony by Mary Nordale, that the                 
  fuel tax hit the  air carriers disportionately.  He  said it                 
  hit every carrier  proportionately to  the amount that  they                 
  use Alaskan airports and  air space.  The landing  fees only                 
  hit a very few specific carriers in  the state.  There was a                 
  substantial difference in cost but the fuel tax increase was                 
  the only one which hits everyone, small carriers to large.                   
                                                                               
  Mr. Hallford said that the  landing fees previously imposed,                 
  were just  sitting on the  shelf ready to be  reimposed.  It                 
  was clear to  him that the fuel tax  was the preference over                 
  landing fees.                                                                
                                                                               
  SENATOR KERTTULA asked  what percentage  of Federal  Express                 
  deliveries was passed on to  other carriers in rural Alaska.                 
  Ms. Nordale felt there was  very small percentage that  went                 
  into the bush, and that the postal service took care of most                 
  of the rural service.                                                        
                                                                               
  SENATOR  SHARP  MOVED for  passage of  CSSB 256(TRA)  out of                 
  committee  with individual  recommendations.   No  objection                 
  being  heard,  it   was  REPORTED  out  of   committee  with                 
  individual  recommendations,  and  a  fiscal  note  for  the                 
  Department  of   Revenue  for  $20.4,  showing   revenue  of                 
  $(1,725.7).    Senator Rieger  signed  "do pass."   Co-chair                 
  Pearce,  Senator  Sharp  and  Senator  Kerttula  signed  "no                 
  recommendation."                                                             
                                                                               
  CS FOR SENATE BILL NO. 166(JUD):                                             
                                                                               
       An Act relating  to registration of a motor vehicle and                 
       suspension of a driver's license  for failure to appear                 
       in court or failure to pay a fine.                                      
                                                                               
  Co-chair  Pearce  announced  that  SB  166  was  before  the                 
  committee.    She  invited  Juanita  Hensley, Chief,  Driver                 
  Services, Division  of Motor Vehicles, Department  of Public                 
  Safety, to join the members at the table.                                    
                                                                               
                                                                               
  JUANITA HENSLEY said that SB 166 would require the amendment                 
  to the Uniform Traffic Summons to include a notice that if a                 
  person failed to  appear in  court and failed  to pay  their                 
  fine  for a  moving violation, the  court may  suspend their                 
  driver's license.   The driver's license would  be suspended                 
  until  the fine was paid.  It also had a provision that if a                 
  person failed to pay their parking  fine or parking offense,                 
  a hold would be placed on their vehicle registration.                        
                                                                               
  Ms. Hensley  said that  the court  had approximately  25,000                 
  unpaid  traffic tickets,  moving  violations or  failure  to                 
  appear fines.   She said she did  not know how many  parking                 
  tickets were outstanding  because those  did not go  through                 
  the court system.                                                            
                                                                               
  Co-chair Pearce pointed out changes in the bill.                             
                                                                               
  SENATOR RIEGER  asked  if Oregon  was  the only  state  that                 
  suspended driver's licenses for failure  to appear in court.                 
  Ms.  Hensley said she did  not know how  many states did but                 
  referred  to California that  placed failure to  appear on a                 
  person's driving  record, and  refused to  renew a  person's                 
  license until it was removed.  Washington had a similar law.                 
  In Alaska, if a person had a moving violation  and there was                 
  a warrant for  that citation,  their driver's license  would                 
  not be reissued.   Unfortunately, many licenses  are renewed                 
  every five years.                                                            
                                                                               
  Senator Rieger spoke  in opposition to  this bill.  He  felt                 
  that it was  not appropriate  to suspend someone's  driver's                 
  license for  parking violations.   Ms.  Hensley pointed  out                 
  that a hold was put on a vehicle registration.  It would not                 
  suspend a person's drivers license.                                          
                                                                               
  Senator  Rieger asked  if  the department  would be  able to                 
  enforce  this  legislation.    Ms.  Hensley  said  that  the                 
  municipalities would report  to the department and  place an                 
  electronic  hold on  the registration.   The  only part  the                 
  department would play would be  to tell the individual  that                 
  they  must  pay  their  parking   fines  before  they  could                 
  reregister their vehicle.                                                    
                                                                               
  In answer to  Senator Rieger,  Ms. Hensley said  that a  fee                 
  would not be  charged by the department.  In  Sections 1 and                 
  3, the individual  would have  to pay his  fines for  moving                 
  violations, and then  come back to  pay a reinstatement  fee                 
  for their drivers license.  She pointed out that the license                 
  was not suspended for a specific  period of time, only until                 
  they paid their fines.                                                       
                                                                               
  Senator Rieger MOVED for amendment 1 adding a new Section 4.                 
  No objection being heard, amendment 1 was ADOPTED.                           
                                                                               
  Senator  Sharp MOVED for passage of CSSB 166(FIN) as amended                 
                                                                               
                                                                               
  out  of  committee  with  individual  recommendations.    No                 
  objection being heard, it was REPORTED out of committee with                 
  individual  recommendations.    Co-chair Pearce  signed  "do                 
  pass."       Senators   Rieger   and    Sharp   signed   "no                 
  recommendation."  Senator Kerttula signed "do not pass."                     
                                                                               
  CS FOR SENATE BILL NO. 268(JUD):                                             
                                                                               
       An Act relating to facilities for the care of children;                 
       to  child placement  agencies;  to maternity  homes; to                 
       certain  residential  facilities  for  adults;  and  to                 
       foster homes for adults; and providing for an effective                 
       date.                                                                   
                                                                               
  Co-chair  Pearce  announced  that  SB  268  was  before  the                 
  committee  and  outlined  new   language  by  the  Judiciary                 
  Committee.  She invited Pat O'Brien to testify to the bill.                  
                                                                               
  PAT  O'BRIEN, Social  Services Program Officer,  Division of                 
  Family  &  Youth  Services, Department  of  Health  & Social                 
  Services,  said the  department had  supplied  the committee                 
  with a new sectional analysis.  The changes in the Judiciary                 
  Committee did change  the foster  care definition and  moved                 
  the exemption that had been placed in Senate HESS.  She also                 
  turned attention to the two page explanation for  the fiscal                 
  note for the department.                                                     
                                                                               
  Ms. O'Brien said,  in referring to  a pie chart supplied  to                 
  the committee (copy on file, Attachment A),  that over 2,000                 
  facilities  were  licensed,  including  child foster  homes,                 
  family child care homes, residential child care  facilities,                 
  and child care  centers.   She said if  the assisted  living                 
  bill  passed,  it  would  remove  adult licensing  from  the                 
  licensing  statute.    She noted  the  capacity  of licensed                 
  facilities  was  13,600,  a   large  number  of   vulnerable                 
  individuals who received care in these facilities.                           
                                                                               
  What the bill was  trying to accomplish was efficiency.   In                 
  some locations in the  state, there was only half  the staff                 
  needed   to  meet  national  standards  for  performing  the                 
  licensing function.   There were  30 field offices  and nine                 
  types of  facilities.   Regulations were  developed under  a                 
  different administration  and procedures were  different for                 
  every type of  facility which made it  a very tough job  for                 
  the  licensor.    This  bill  would condense  the  licensing                 
  procedures  since   the  addition  of  any   workers  seemed                 
  unlikely.   She  said that  for  the most  part,  procedures                 
  reflected existing procedures.                                               
                                                                               
  Other objectives were  to promote a share  role with parents                 
  in  the   day  care   and  other   facilities,  and   extend                 
  partnerships to individuals in small communities to help the                 
  department  perform license  evaluation.    This would  also                 
                                                                               
                                                                               
  target native  organizations eligible for federal grants and                 
  other individuals in small communities.                                      
                                                                               
  Senator Kerttula  MOVED for  passage of  CSSB 268(JUD)  from                 
  committee  with individual  recommendations.   No  objection                 
  being  heard,  it   was  REPORTED  OUT  of   committee  with                 
  individual  recommendations,  and  a  fiscal  note  for  the                 
  Department of Health & Social Services for $65.0.   Co-chair                 
  Pearce  signed  "do pass."    Senators Rieger,  Kerttula and                 
  Sharp signed "no recommendation."                                            
                                                                               
  CS FOR SENATE BILL NO. 320(L&C):                                             
                                                                               
       An  Act  relating  to architects,  engineers,  and land                 
       surveyors.                                                              
                                                                               
  Co-chair Pearce announced that CSSB  320(FIN) work draft "R"                 
  was before  the committee.  She said  that the bill had been                 
  waived from Judiciary and then  Senate Finance Committee had                 
  received a request from Senator Leman, sponsor  of the bill,                 
  to tighten the title.  She said  there had been no change to                 
  the body of the bill.                                                        
                                                                               
  Senator Jacko MOVED for  adoption of the CSSB  320(FIN) work                 
  draft "R".  No objection being heard, it was ADOPTED.                        
                                                                               
  Senator  Jacko  MOVED  for  passage  of CSSB  320(FIN)  from                 
  committee with  individual recommendations.   Senator Rieger                 
  said for the record, he had doubts that this was  a positive                 
  change.    He  did  not  feel  there  was  justification for                 
  requiring  teachers  in  postsecondary  institutions  to  be                 
  registered  with the  Board  before they  could  teach.   He                 
  believed  occupational  licensing  should   be  for  quality                 
  control and safety of the public but not for  the purpose of                 
  operating  a closed shop.  No further objection being heard,                 
  it was REPORTED  OUT of committee with  "no recommendation,"                 
  and zero fiscal notes for the Department of Transportation &                 
  Public Facilities and the Department  of Commerce & Economic                 
  Development.   Co-chair  Pearce, Senators  Jacko, Sharp  and                 
  Rieger  signed "no recommendation."  Senator Kerttula signed                 
  "do not pass."                                                               
                                                                               
  CS FOR SENATE BILL NO. 339(RES):                                             
                                                                               
       An Act relating to the management and disposal of state                 
       land and resources;  relating to certain  remote parcel                 
       and  homestead  entry   land  purchase  contracts   and                 
       patents; and providing for an effective date.                           
                                                                               
  Co-chair  Pearce  announced  that  SB  339  was  before  the                 
  committee.   She  invited  to Gerald  Gallagher to  join the                 
  committee at the table.                                                      
                                                                               
                                                                               
  GERALD   L.  GALLAGHER,   Director,   Division  of   Mining,                 
  Department  of Natural  Resources,  said  that revisions  to                 
  Title  38  in  SB 339  were  fairly  broad  and touched  all                 
  resources.   Sections 1  through 10  essentially reform  the                 
  land disposal program in the state.  What those sections did                 
  was require that  land be identified  in land use plans  and                 
  properly classified.   It also dictated that  the department                 
  adopt regulations to sell  land at no less than  fair market                 
  value.                                                                       
                                                                               
  Section 11 was amended in Senate Resources Committee and now                 
  conformed to language  that allowed  the exchange of  native                 
  allotments when it was in the best interests of the state.                   
                                                                               
  Sections  12,  13,  14,  again  made conforming  changes  to                 
  coincide with land  disposal changes  in Sections 1  through                 
  10.                                                                          
                                                                               
  Section 15 was a minor definition change.                                    
                                                                               
  Section 16  gave the department authority to  require and to                 
  appropriate action if a  lessee of state land did  not clean                 
  up or remove material from the site at the end of the lease.                 
                                                                               
  Section  17  and  18  dealt  with  timber  and  allowed  the                 
  Commissioner to negotiate timber sales  where there might be                 
  a Spruce bark beetle infestation, or an economic loss to the                 
  resource for land conversion.                                                
                                                                               
  Section 19 was identical to SB 322 that had passed the House                 
  and Senate.   It would eliminate  the 90 day restriction  on                 
  oil and gas lease sales.                                                     
                                                                               
  Section 20 clarifies  the Commissioner's authority to  close                 
  land  to mineral entry, limiting his authority on new claims                 
  and not on existing ones.                                                    
                                                                               
  Section 21  reformed  who would  be allowed  to hold  mining                 
  claims.  This would conform to all business practices of the                 
  state.                                                                       
                                                                               
  Section  22  changed how  rents  were adjusted  for consumer                 
  price indexes.  The new wording said "whenever it reached $5                 
  increments" and would make for easier accounting.                            
                                                                               
  Section 23 allowed  for surface use for  mine tailings, mill                 
  sites, and changed out the word "permit" for "lease".                        
                                                                               
  Section 24 conformed.                                                        
                                                                               
  Section 25 changed  old regulations  that said  if a  person                 
  applied for  a lease and  did not return  that lease to  the                 
  department within 90 days, the lease was lost.                               
                                                                               
                                                                               
  Section 26 clarified  when the department could  use permits                 
  and  was specific to  reindeer grazing. It  would allow such                 
  activities as rock collecting, etc.                                          
                                                                               
  Section  27,  28, 29,  30, 31,  and  32 were  all conforming                 
  changes to coincide  with the land  disposal package in  the                 
  first 10 sections of the bill.                                               
                                                                               
  Section 33 contained  all repealers to accomplish all of the                 
  above.                                                                       
                                                                               
  Sections 34, 35,  and 36 contained  the effective dates  and                 
  transitional provisions.                                                     
                                                                               
  In answer to  Senator Rieger, Mr.  Gallagher said there  was                 
  nothing in the bill that dealt with water rights.                            
                                                                               
  In another answer  to Senator Rieger, Mr. Gallagher said the                 
  Supreme Court had ruled that  requiring the disposal be held                 
  in a  local community  and to  have the  winner present  was                 
  unconstitutional.   He acknowledged it was a  good idea that                 
  the  disposal  be held  in the  community  near the  land in                 
  question, but it could not be required by law.                               
                                                                               
  In answer  to Senator Rieger,  Mr. Gallagher  said rents  on                 
  state   mining  claims,   instead  of  a   10-year  interval                 
  adjustment, would be  increased by $5 increments for ease of                 
  accounting  which  would  mean  every   5,  10  or  15-years                 
  depending on the price-index.                                                
                                                                               
  End SFC-93 #79, Side 1                                                       
  Begin SFC-93 #79, Side 2                                                     
                                                                               
  In  answer to Senator Rieger, Mr.  Gallagher said Section 24                 
  exempted land  surface from the competitive bidding process.                 
  Only the company that was developing the mine would have any                 
  reason to lease the  surface for mine improvements.   It did                 
  not exempt it from best interest  findings and all the costs                 
  associated with that.                                                        
                                                                               
  Again in answer  to Senator  Rieger, page 13,  line 23,  Mr.                 
  Gallagher  said  that "limited  value"  was not  defined but                 
  referred  to  a practice  that had  a  low dollar  value and                 
  little  impact on the  resources.  Mr.  Gallagher said there                 
  had been some  discussion internally about  the term.   Some                 
  examples given were rock collecting,  and short term grazing                 
  of reindeer.                                                                 
                                                                               
  In answer  to Senator Sharp,  Mr. Gallagher said  that there                 
  was nothing in the bill that  applied to lands leased within                 
  the  international  airport systems.   He  did say  that any                 
  state lease would  come under this  bill since it was  state                 
  land.                                                                        
                                                                               
                                                                               
  In answer to  Senator Jacko, Mr. Gallagher  said that Senate                 
  Resources  Committee had  added  language  that had  already                 
  passed the Senate.                                                           
                                                                               
  Again in answer Senator Rieger, Mr. Gallagher said that most                 
  repealers were related to the land  disposal program to make                 
  it conform with  the fair market value  competitive package.                 
  The one repealer that did not fall under that was 38.05.207,                 
  which  pertained to a mining  production license.  The other                 
  repealers  were   conforming  while  this   was  a  straight                 
  repealer.                                                                    
                                                                               
  Senator  Jacko  MOVED  for  passage  of CSSB  339(RES)  from                 
  committee  with individual  recommendations.   No  objection                 
  being  heard,  it   was  REPORTED  OUT  of   committee  with                 
  individual recommendations, and  a zero fiscal note  for the                 
  Department  of  Natural  Resources.    Co-chair  Pearce  and                 
  Senator  Jacko signed "do pass."   Senators Rieger and Sharp                 
  signed "no recommendation."                                                  
                                                                               
                         Recess 10:05am                                        
                        Reconvene 10:25am                                      
                                                                               
  CS FOR SENATE BILL NO. 56(STA):                                              
                                                                               
       An Act relating to the  budget reserve fund established                 
       under art.  IX, sec. 17,  Constitution of the  State of                 
       Alaska; and providing for an effective date.                            
                                                                               
  Co-chair  Pearce  announced  that  SB   56  was  before  the                 
  committee.    She invited  Jerry  Burnette, aide  to Senator                 
  Phillips, to join the members at the table.                                  
                                                                               
  Co-chair Frank MOVED for adoption of CSSB 56(FIN) work draft                 
  "A".  No objection being heard, it was ADOPTED.                              
                                                                               
  JERRY  BURNETTE, aide  to  Senator Phillips,  explained that                 
  this legislation  said that  the Constitution  provided that                 
  when appropriations were made from the Constitutional Budget                 
  Reserve Fund, that the  amount of money in the  general fund                 
  available for appropriation  at the  end of each  succeeding                 
  fiscal  year be transferred to the  Budget Reserve Fund, and                 
  that the legislature would implement this subsection by law.                 
                                                                               
  He went on  to say that HB 58, which had already passed this                 
  legislature, contained  a section  implementing  17D.   That                 
  provision provided  that the  undesignated, unreserved  fund                 
  balance  in  the   general  fund   be  transferred  to   the                 
  Constitutional Budget  Reserve Fund  on December  16 of  the                 
  preceding fiscal year.                                                       
                                                                               
  Mr.   Burnette   said   that  Judge   Reese   found   HB  58                 
                                                                               
                                                                               
  unconstitutional, giving  the opinion that the limitation to                 
  the  general  fund  unreserved,  undesignated  fund  balance                 
  limited the scope of funds  unconstitutionally.  What SB  56                 
  did  was  allow for  the  undesignated fund  balance  of the                 
  general fund  and each of the separate accounts or sub-funds                 
  of the general fund to  be transferred to the Constitutional                 
  Budget Reserve Fund.  The Constitution provided the money in                 
  the  general fund that was available  for appropriation.  He                 
  felt it  was  the best  definition  of money  available  for                 
  appropriation.   He said  that included  a number of  funds,                 
  including the Oil and Hazardous Substance Response Fund, and                 
  the Railbelt Intertie Reserve Fund.                                          
                                                                               
  Co-chair Pearce invited  Mr. Baldwin to join  Jerry Burnette                 
  at the table.                                                                
                                                                               
  In answer to  Senator Rieger regarding timing,  Mr. Burnette                 
  said that December  16, 1995  would be the  first time  this                 
  transfer of funds  would happen.   Senator Rieger said  that                 
  was the literal reading of the Constitution but may not have                 
  been the intent.                                                             
                                                                               
  In answer to Senator Sharp, Mr. Burnette said it referred to                 
  the Department of  Administration because it kept  the books                 
  for the state.   Senator Sharp asked for  a list of accounts                 
  and balances  from the  Department of  Administration.   Mr.                 
  Burnette referred that question to Randy Welker.                             
                                                                               
  In  answer  to  Co-chair  Frank,  JAMES  BALDWIN,  Assistant                 
  Attorney General, General  Civil Section, Juneau, Department                 
  of Law, said  the funds had  appropriated balances and  were                 
  multi-year in nature.                                                        
                                                                               
  RANDY   WELKER,   Legislative  Auditor,   Legislative  Audit                 
  Division, said the listing of  funds basically was sub-funds                 
  to the general fund  and varied in  nature.  He agreed  with                 
  Mr.  Baldwin  in that  the  majority  of  those  funds  were                 
  established by appropriation, and labeled by the legislature                 
  for  an  intended future  use.    Some of  them  had regular                 
  activity  while  others  were  more  dormant  but  had  fund                 
  balances.  Many  were changing  on a regular  basis.   Those                 
  with  any  significant  balances  were  the Oil  and  Hazard                 
  Response Fund, Railbelt Energy  Fund, the Intertie  Reserve,                 
  the Storage Tank  Assistance Fund,  and the Marine  Highways                 
  Fund, and may be subject to the payback provisions.                          
                                                                               
  Mr. Baldwin  said that the  equity remaining in  the general                 
  fund group was close to  $800M.  Mr. Welker pointed  out the                 
  various reservations and  legal commitments  on that  money.                 
  "Unreserved  and   undesignated"  would   help  define   and                 
  determine the portion of those balances available.                           
                                                                               
  Discussion  was  had  by  Co-chair  Frank,  Senators Rieger,                 
  Sharp, and                                                                   
                                                                               
                                                                               
  Mr.  Welker  regarding funds,  the  general fund,  and their                 
  relationship.  It was noted  that the Science and Technology                 
  Fund had been designated as a legal endowment fund and would                 
  not be able  to be swept.   Mr. Baldwin said that  the court                 
  seemed to realize how complicated it  would be for the state                 
  if funds were swept.  He said the decision had been moved on                 
  to the Supreme Court.                                                        
                                                                               
  In answer to  Co-chair Frank, Mr.  Baldwin said that it  was                 
  his opinion that none  of the general fund groups  should be                 
  swept but that it should be  only the year-end carry forward                 
  balance.                                                                     
                                                                               
  In answer to Senator Rieger, Mr. Baldwin said there would be                 
  a   repayment  obligation   for   this   year   because   an                 
  appropriation was made  but there  would be  no sweep  since                 
  there was no carry forward balance.                                          
                                                                               
  Co-chair Pearce  announced that SB 56 and  SJR 52 be HELD in                 
  committee and a subcommittee would further study both bills.                 
  Senator Rieger said there was  some philosophical difference                 
  between SB 56  and SJR  52 and  he would like  to see  those                 
  differences resolved.  Co-chair Pearce  asked Mr. Baldwin to                 
  work with the committee in drafting new language.                            
                                                                               
  CS FOR SENATE BILL NO. 370(JUD):                                             
                                                                               
       An Act providing  an exemption  from gambling laws  for                 
       gambling  conducted by cruise  ships for their ticketed                 
       passengers in the  offshore water of the  state outside                 
       of ports;  requiring certain disclosures  in connection                 
       with  promotions  on  board  cruise  ships  and  making                 
       violation of that  provision an unfair  trade practice;                 
       defining  `cruise ship';  and  providing for  exemption                 
       fees for certain  cruise ships before they  can conduct                 
       gambling in the offshore water of the state.                            
                                                                               
  Co-chair  Pearce  announced  that  SB  370  was  before  the                 
  committee long  enough to hear Tom Dow's  testimony since he                 
  was from out  of town.  She  said the bill would  be brought                 
  back before the committee on April 26, 1994.                                 
                                                                               
  TOM DOW, Vice President of Hotels, Princess Tours,  spoke in                 
  support  of  SB  370  which  would  authorize,  through  the                 
  granting of an exemption for a fee, the operation of casinos                 
  aboard cruise  ships within  Alaskan state  waters.   He was                 
  opposed to the flat fee.  His company had estimated that the                 
  total gaming activity aboard ships was in the 20-25  percent                 
  range based  upon the time those ships were in international                 
  waters outside the three-mile limit.  Of the total activity,                 
  about 22 percent  occurred within the Alaskan  state waters.                 
  He did not object to the  establishment of an Alaska Tourism                 
  Marketing  Council  Fund  that  would  have  the  effect  of                 
                                                                               
                                                                               
  establishing  legislative  intent  and   the  monies  raised                 
  through these fees would be forwarded  or used for a portion                 
  of the private sector match against state  funds for tourism                 
  marketing.  He did have  problems with this law if  it would                 
  extend the  large hand  of government  behind the  company's                 
  wallet into its books.  He felt that was hard to justify for                 
  the public good.                                                             
                                                                               
  Mr. Dow said  they had no problem with  restricting on-board                 
  promotions that  might apply  to locally  owned gift  shops.                 
  They understood  that the basic  fee level would  be doubled                 
  from the original bill and was acceptable to Princess Tours.                 
  They cautioned  it was the  outer limit.   He pointed  out a                 
  similar license from  Maryland was  only $25.   The fee  was                 
  proposed to be $40,000 for the  larger ships and $30,000 for                 
  others in return for  an unregulated practice that  had been                 
  going on for over 20 years.                                                  
                                                                               
  Co-chair  Pearce  announced that  SB  370 would  be  HELD in                 
  committee.                                                                   
                                                                               
  SCHEDULED BUT NOT HEARD:                                                     
                                                                               
  CS FOR SENATE BILL NO. 341(RES):                                             
                                                                               
       An   Act  relating  to  the  Alaska  Tourism  Marketing                 
       Council; and providing for an effective date.                           
                                                                               
  CS FOR SENATE BILL NO. 358(STA):                                             
                                                                               
       An  Act  relating  to the  existence  and  functions of                 
       certain  multimember  state  bodies, including  boards,                 
       councils,  commissions,  associations,  or authorities;                 
       and providing for an effective date.                                    
                                                                               
  SENATE JOINT RESOLUTION NO. 52:                                              
                                                                               
       Proposing amendments to  the Constitution of  the State                 
       of Alaska relating to the budget reserve fund.                          
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was recessed at approximately 11:15 a.m.                         

Document Name Date/Time Subjects