Legislature(1993 - 1994)

05/07/1994 01:50 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                           May 7, 1994                                         
                            1:50 p.m.                                          
  TAPES                                                                        
                                                                               
  SFC-94, #86, Side 2 (575-296)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-chair Drue  Pearce convened the  meeting at approximately                 
  1:50 p.m.                                                                    
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition to Co-chair  Pearce, Senators  Kelly, Kerttula,                 
  Rieger, and Sharp were present.  Co-chair Frank  and Senator                 
  Jacko arrived soon after the meeting began.                                  
                                                                               
  ALSO  ATTENDING:    Representative   Toohey;  Representative                 
  Hanley;   Harry  Noah,   Commissioner,   Dept.  of   Natural                 
  Resources; Shelby  Stastny, Director,  Office of  Management                 
  and Budget; Nancy Slagle, Director  of Budget Review, Office                 
  of  Management and  Budget; Alison  Elgee, Budget  Director,                 
  University of Alaska; Dave Skidmore,  aide to Senator Frank;                 
  and  aides to  committee  members and  other members  of the                 
  legislature.                                                                 
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 301 -  BAN SALE OF SOME STUDDED TIRES AND STUDS                           
                                                                               
            CS SSHB 301  (L&C) was  REPORTED OUT of  committee                 
            with  a  zero  fiscal  note   from  the  Dept.  of                 
            Transportation and Public Facilities.                              
                                                                               
  HB 445 -  DWI LAWS                                                           
                                                                               
            Testimony was presented by Dave  Skidmore.  SCS HB
            445 (Finance) was REPORTED OUT of committee with a                 
            "do pass"  recommendation, four zero  fiscal notes                 
            and three notes containing funding  (See page 6 of                 
            these minutes  for a  list of accompanying  fiscal                 
            notes.)                                                            
                                                                               
  HB 456 -  APPROP: COST OF CERTAIN LABOR AGREEMENTS                           
                                                                               
            HB 456am was REPORTED OUT of committee  with a "do                 
            pass" recommendation.                                              
                                                                               
  HB 466 -  AHFC BONDS FOR UNIV. OF ALASKA USES                                
                                                                               
            Testimony   was   presented   by   Alison   Elgee.                 
            Amendment  No.  1 was  proposed  but failed  to be                 
                                                                               
                                                                               
            adopted.  HB 466am  was subsequently REPORTED  OUT                 
            of  committee  with  zero  fiscal  notes from  the                 
            Office  of the  Governor,  Dept.  of Revenue,  and                 
            University of Alaska.                                              
                                                                               
  HB 494 -  ALASKA PENSION INVESTMENT AUTHORITY                                
                                                                               
            CSHB   494(STA)am   was  briefly   brought  before                 
            committee   and  then   held  pending   return  of                 
            Commissioner Rexwinkel to the meeting.                             
                                                                               
  HB 510 -  APPROP: U OF AK LABOR AGREEMENT                                    
                                                                               
            HB 510  was REPORTED OUT  of committee with  a "do                 
            pass" recommendation.                                              
                                                                               
  HB 548 -  ALASKA ORBITAL LAUNCH COMPLEX                                      
                                                                               
            HB 548 was  REPORTED OUT of  committee with a  "do                 
            pass" recommendation and zero fiscal note from the                 
            Dept. of Commerce and Economic Development.                        
                                                                               
                                                                               
  HOUSE BILL NO. 456 am                                                        
                                                                               
       An Act making appropriations to satisfy the agreed-upon                 
       monetary   terms   of  certain   collective  bargaining                 
       agreements for certain public employees; and  providing                 
       for an effective date.                                                  
                                                                               
  Co-chair  Pearce directed  that HB  456am be brought  on for                 
  discussion  and  noted  backup material  consisting  of  the                 
  Senate  companion  bill  (SB  289),  Governor's  transmittal                 
  letter, a hearing  request, sectional  analysis, and May  3,                 
  1994,  correspondence  from   the  Dept.  of  Administration                 
  relating to the monetary terms of  the contract.  (Copies of                 
  all materials  are on  file in  the original  Senate Finance                 
  Committee file for HB 456.)                                                  
                                                                               
  (Co-chair Frank and Senator Jacko arrived at this time.)                     
                                                                               
  Senator Kerttula  MOVED that  HB 456am  pass from  committee                 
  with  individual recommendations.   No objection having been                 
  raised, HB 456am  was REPORTED OUT of committee.   Co-chairs                 
  Pearce and  Frank and  Senators Kelly,  Kerttula, and  Sharp                 
  signed the committee report with a "do pass" recommendation.                 
  Senator Jacko signed without recommendation.  Senator Rieger                 
  was temporarily away  from the committee  table and did  not                 
  sign the report.                                                             
                                                                               
                                                                               
  HOUSE BILL NO. 510                                                           
                                                                               
                                                                               
       An Act making appropriations to satisfy the agreed-upon                 
       monetary terms of a collective bargaining agreement for                 
       certain  employees of  the  University of  Alaska;  and                 
       providing for an effective date.                                        
                                                                               
  Co-chair  Pearce  directed that  HB  510 be  brought  on for                 
  discussion, noted that it relates to the labor agreement for                 
  the  University  of  Alaska,  and  referenced file  material                 
  consisting of the bill, Governor's transmittal letter, and a                 
  sectional  analysis.   She  then  called for  questions from                 
  members.  None were forthcoming.                                             
                                                                               
  Senator  Sharp MOVED  that HB  510 pass from  committee with                 
  individual  recommendations.     No  objection  having  been                 
  raised, HB 510  was REPORTED  OUT of  committee.   Co-chairs                 
  Frank and  Pearce and  Senators Kelly,  Kerttula, and  Sharp                 
  signed the committee report with a "do pass" recommendation.                 
  Senator  Jacko  signed  without   making  a  recommendation.                 
  Senator Rieger was  temporarily absent from the  meeting and                 
  did not sign.                                                                
                                                                               
                                                                               
  HOUSE BILL NO. 548                                                           
                                                                               
       Act relating to the construction  of the Alaska Orbital                 
       Launch  Complex  by  the  Alaska Aerospace  Development                 
       Corporation.                                                            
                                                                               
  Co-chair  Pearce  directed that  HB  548 be  brought  on for                 
  discussion.  She  explained that  the companion Senate  bill                 
  (SB 381) was previously reported out of committee and is now                 
  in Rules.  The Senate version  had a full committee hearing.                 
  She next referenced  a zero  fiscal note from  the Dept.  of                 
  Commerce and Economic  Development, a picture of  the launch                 
  stages,  an  artist's  conception  of  the  launch  complex,                 
  information   from   the   Alaska    Aerospace   Development                 
  Corporation, and assorted correspondence.  The Co-chair then                 
  queried members regarding disposition of  the bill.  Senator                 
  Jacko MOVED  that HB 548 pass from committee with individual                 
  recommendations.  No  objection having  been raised, HB  548                 
  was REPORTED OUT of  committee with a zero fiscal  note from                 
  the Dept. of  Commerce and Economic Development.   Co-chairs                 
  Frank and  Pearce and  Senators Jacko and  Kelly signed  the                 
  committee report with a "do  pass" recommendation.  Senators                 
  Kerttula, Rieger, and Sharp signed "no recommendation."                      
                                                                               
                                                                               
  CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 301(L&C)                        
                                                                               
       Act prohibiting the  sale of  certain studded tires  or                 
       the sale of certain studs to be installed in tires; and                 
                                                                               
                                                                               
       providing for an effective date.                                        
                                                                               
  Co-chair Pearce directed that CS  SSHB 301 (L&C) be  brought                 
  on for discussion and referenced a zero fiscal note from the                 
  Dept.  of Transportation  and Public  Facilities, a  sponsor                 
  statement, correspondence, a  VTI study, and a  study by the                 
  Dept. of  Transportation and  Public Facilities.   She  then                 
  queried members  regarding disposition.  Senator Sharp MOVED                 
  that CS SSHB  301 (L&C) pass from committee  with individual                 
  recommendations.    Senator  Kerttula  OBJECTED.    Co-chair                 
  Pearce called for a show of hands, and the motion carried on                 
  a vote  of 5  to 1.   (Senator Kerttula  was opposed  to the                 
  motion, and Co-chair  Frank was temporarily absent  from the                 
  meeting.)  CS SSHB  301 (L&C) was REPORTED OUT  of committee                 
  with a zero fiscal note from the Dept. of Transportation and                 
  Public Facilities.    Co-chair Pearce  and  Senators  Kelly,                 
  Rieger, and  Sharp signed the  committee report  with a  "do                 
  pass"  recommendation.   Senator  Kerttula signed  "no rec."                 
  Senator Jacko signed without making a recommendation.                        
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 494(STA) am                                            
                                                                               
       Act changing the Alaska State Pension Investment  Board                 
       to the Alaska Pension Investment Authority and relating                 
       to the authority; and providing for an effective date.                  
                                                                               
  Co-chair Pearce directed that CSHB 494 (STA)am be brought on                 
  for  discussion  and  referenced  a  Senate   State  Affairs                 
  version, a zero fiscal note from the Dept. of Administration                 
  (Retirement  and  Benefits),  a $398.5  note  from  Dept. of                 
  Revenue (Treasury  Management) with  seven new  positions, a                 
  $497.0 note from Dept. of Revenue (Alaska Pension Investment                 
  Board)  with  one new  positions,  an  organizational chart,                 
  hearing  request, sponsor  statement, a  sectional analysis,                 
  investment   board   position   paper,   and   miscellaneous                 
  information.  She observed that the bill had not before been                 
  heard  by   committee  and  asked   that  Darrel  Rexwinkel,                 
  Commissioner, Dept.  of Revenue,  speak to  the legislation.                 
  Commissioner Rexwinkel was  absent from the meeting  at this                 
  time.    Co-chair Pearce  directed  that  the bill  be  HELD                 
  pending  his  return.   (Discussion did  not revert  to CSHB
  494(STA)am during the balance of the meeting.)                               
                                                                               
                                                                               
  HOUSE BILL NO. 445 am                                                        
                                                                               
       An Act relating to  administrative or court  revocation                 
       of a  driver's license  resulting from  operation of  a                 
       motor vehicle, commercial  motor vehicle, or  aircraft;                 
       relating  to chemical  testing  of a  person's  breath,                 
       urine, or blood  if the person  is involved in a  motor                 
                                                                               
                                                                               
       vehicle accident  that causes death or serious physical                 
       injury;   relating   to   definitions   applicable   to                 
       commercial  motor vehicle  laws;  relating to  chemical                 
       testing of a  person's breath, urine, or  blood without                 
       the person's  consent; and  relating to  the  use in  a                 
       civil or criminal action of the  refusal of a person to                 
       submit to a chemical test.                                              
                                                                               
  Co-chair Pearce  directed that  HB 445am be  brought on  for                 
  discussion.   Co-chair  Frank  referenced  two draft  Senate                 
  Finance  Committee Substitutes  for  the bill  and explained                 
  that one contains reduction of the  legal limit to .08 while                 
  the other does not.   Versions "O" and "R"  were distributed                 
  to members.                                                                  
                                                                               
  DAVE SKIDMORE, aide to Senator  Frank, came before committee                 
  to speak to differences between the Senate Judiciary version                 
  and the "O"  draft of the proposed Senate  Finance Committee                 
  Substitute.  The Senate Finance draft:                                       
                                                                               
       1.   Removes provisions which  defined an  individual's                 
  third          or  subsequent  DWI  conviction  as a  felony                 
                 offense.                                                      
                                                                               
       2.   Inserts technical references to  "commercial motor                 
            vehicles," at the request of the Dept. of  Law and                 
            Dept. of Public Safety.                                            
                                                                               
       3.   Makes a technical  language change  in Sec. 4,  at                 
  the       request of  both  the Dept.  of Law  and Dept.  of                 
            Public Safety.                                                     
                                                                               
       4.   The blood-alcohol limited is  reduced from 0.10 to                 
  0.08.                                                                        
                                                                               
       5.   Removes mandatory vehicle forfeiture provisions.                   
                                                                               
       6.   Directs the Dept.  of Public  Safety to conduct  a                 
  study,         during  the   interim,  regarding   mandatory                 
                 vehicle forfeiture and application  of felony                 
                 penalties to certain drunk  driving offenses.                 
                                                                               
                                                                               
  Mr.  Skidmore  reiterated  that  version  "R"  contains  all                 
  provisions of version "O" with the exception of reduction of                 
  the  blood-alcohol  level.    Co-chair  Frank  advised  that                 
  discussions with the Dept. of Law and Dept. of Public Safety                 
  reached the conclusion that it  is difficult and problematic                 
  to draft, in  a short period  of time, a forfeiture  statute                 
  that would  work effectively.  More must be understood about                 
  the constitutional and  legal hurdles that would  have to be                 
  overcome.    It was  thus determined  that the  issue should                 
  become  an interim  project  that could  be dealt  with next                 
  year.                                                                        
                                                                               
                                                                               
  Senator  Kelly voiced support  for forfeiture provisions and                 
  advised of his understanding that forfeiture is  used by the                 
  municipality  of  Anchorage.    Senator  Sharp  also  voiced                 
  support for  forfeiture, noting that it is currently used to                 
  confiscate firearms and  aircraft from individuals convicted                 
  of hunting violations.  Co-chair Frank concurred in comments                 
  of  support.     He  suggested   that  the  legislation   be                 
  accompanied by a  letter of intent stating  committee intent                 
  to construct forfeiture law for enactment next session.                      
                                                                               
  In  response   to  questions  from  members,   Mr.  Skidmore                 
  referenced drafting  problems encountered  in attempting  to                 
  deal  with  situations  where there  is  other  ownership or                 
  security interest  in the  vehicle.   An additional  problem                 
  arises from recent Supreme Court  decisions that say vehicle                 
  forfeiture is analogous to a fine.   There is disparity when                 
  individuals  convicted  of  the  same  crime are  forced  to                 
  forfeit vehicles of differing values.                                        
                                                                               
  Co-chair Frank MOVED for adoption of SCSHB  445 (Fin) (draft                 
  8-GH2019\O, Ford, 5/6/94).  Senator  Kerttula OBJECTED.  Co-                 
  chair Pearce called for  a show of hands.  SCSHB  445 (Fin),                 
  "O" version, was ADOPTED on a vote of 4 to 2.                                
                                                                               
  Senator Sharp asked  if courts  currently have authority  to                 
  order  forfeiture  of  a vehicle.    Mr.  Skidmore responded                 
  affirmatively, advising that it is discretionary.                            
                                                                               
  Directing  attention  to  blood-alcohol provisions,  Senator                 
  Rieger asked if the court differentiates between someone who                 
  is  several points  over the  limit and an  individual whose                 
  alcohol level  is double.   It  was subsequently  determined                 
  that courts have discretion in this area as well.                            
                                                                               
  Senator  Rieger  MOVED that  SCSHB  445 (Finance)  pass from                 
  committee  with  individual recommendations.    No objection                 
  having been raised, SCSHB 445  (Finance) was REPORTED OUT of                 
  committee with the following fiscal notes:                                   
                                                                               
       Alaska Court System                          0                          
       Dept. of Public Safety (Vehicles)            0                          
       Dept. of Administration (OPA)                0                          
       Dept. of Law                                 0                          
       Dept. of Public Safety (Lab.)              49.6                         
       Dept. of Administration (PDA)              90.9                         
       Dept. of Corrections                      248.7 opt.                    
                                                 313.8 rev.                    
                                                                               
  All committee  members present  signed the committee  report                 
  with  a  "do  pass"  recommendation.    (Senator  Jacko  was                 
  temporarily absent from the meeting and did not sign.)                       
                                                                               
                                                                               
  HOUSE BILL NO. 466 am                                                        
                                                                               
       An Act authorizing the issuance of bonds by the  Alaska                 
       Housing Finance  Corporation to  pay for  the costs  of                 
       repair and rehabilitation of student housing facilities                 
       of the University  of Alaska; authorizing the  issuance                 
       of bonds by  the University  of Alaska to  pay for  the                 
       costs of repair and rehabilitation of facilities of the                 
       University  of Alaska;  amending powers  of the  Alaska                 
       Housing Finance Corporation; amending the definition of                 
       "public   building";  relating   to  the   Alaska  debt                 
       retirement fund; and providing for an effective date.                   
                                                                               
  Co-chair Pearce  directed that  HB 466am  be brought  on for                 
  discussion.   ALISON ELGEE,  Budget Director,  University of                 
  Alaska,  came  before  committee.   She  explained  that the                 
  legislation  was introduced by the Governor on behalf of the                 
  University.  It  contains $75 million in  bond authorization                 
  to   deal  with  one-half  of  the  University's  identified                 
  deferred  maintenance.   A  $30  million  bond authorization                 
  through  the  Alaska Housing  Finance  Corporation addresses                 
  maintenance in  student  dormitories and  housing,  and  $45                 
  millions issued under the University  will provide for other                 
  deferred maintenance projects.  Ms.  Elgee next referenced a                 
  listing of projects to  be covered by the funding  and noted                 
  the companion Senate bill (SB 304).                                          
                                                                               
  Senator Kelly directed attention to Amendment No. 1 which he                 
  explained would  provide  funding for  construction  of  new                 
  student  housing facilities  at  the  University of  Alaska,                 
  Anchorage and  University of Alaska,  Southeast.   Inclusion                 
  would require a title change.   Senator Kelly then MOVED for                 
  adoption of Amendment No. 1.  Co-chair Pearce OBJECTED.  She                 
  explained that  the  committee  already  passed  legislation                 
  allowing  the  University  to  "get  private  financing  for                 
  student housing."  The House removed provisions contained in                 
  the  amendment  from  the proposed  bill.    Co-chair Pearce                 
  voiced concern that reinsertion of those provisions, at this                 
  time, would "kill the bill."  She expressed a preference for                 
  a parking  garage at the  Anchorage campus.   Senator Rieger                 
  inquired concerning need  for construction at University  of                 
  Alaska,  Southeast.    Alison Elgee  explained  that  the $6                 
  million would purchase an additional 129 beds.   The project                 
  received planning  and design  money in  the current  fiscal                 
  year.  It has  been designed and is ready  for construction.                 
  Student housing at  both Anchorage and Juneau  is completely                 
  occupied, and  there  is a  waiting list.   Co-chair  Pearce                 
  called  for a show of hands on  adoption of Amendment No. 1.                 
  The motion failed  on a vote of 2 to 4,  and Amendment No. 1                 
  was NOT ADOPTED.                                                             
                                                                               
  Senator   Rieger   acknowledged   a   substantial   deferred                 
  maintenance  problem at  the University  but voiced  concern                 
                                                                               
                                                                               
  over  use  of  reserves  and  issuance of  additional  debt.                 
  Senator Kelly pointed to the  fact that Alaska's latest bond                 
  issue was  rated AA  by Wall  Street.   That indicates  that                 
  Alaska is a good investment risk  because of the state's low                 
  debt.   He further  attested to  deferred maintenance  needs                 
  within the University  and voiced his belief  that the board                 
  of regents has  been irresponsible over  the past decade  in                 
  using funding for other things.                                              
                                                                               
  Co-chair Pearce queried members on  disposition of the bill.                 
  Senator Kelly MOVED  that HB 466am pass  from committee with                 
  individual recommendations.  OBJECTION was  voiced.  The Co-                 
  chair called for a  show of hands.  The motion  carried on a                 
  vote of 4 to 3, and  HB 466am was REPORTED OUT of  committee                 
  with  zero fiscal  notes from  the Office  of the  Governor,                 
  University  of  Alaska,  and Dept.  of  Revenue.   Co-chairs                 
  Pearce and  Frank and Senators  Kelly and  Sharp signed  the                 
  committee report with  a "do pass" recommendation.   Senator                 
  Rieger signed  "no recommendation."   Senator  Jacko signed,                 
  "do not pass."   Senator Kerttula signed, "do not  pass, use                 
  GFs."                                                                        
                                                                               
  RECESS                                                                       
                                                                               
  Co-chair  Pearce  acknowledged  the  impending Senate  floor                 
  session  and the  fact  that remaining  bills on  the agenda                 
  would  require "some testimony."  She then directed that the                 
  meeting be recessed and  reconvened later in the day  at the                 
  call of the chair.  The meeting was recessed at 2:20 p.m.                    
                                                                               

Document Name Date/Time Subjects