Legislature(1999 - 2000)

04/13/2000 12:08 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                          MINUTES                                                                                             
                 SENATE FINANCE COMMITTEE                                                                                     
                      April 13, 2000                                                                                          
                          6:08 PM                                                                                             
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-00 # 87, Side A and Side B                                                                                                  
                                                                                                                                
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair   John   Torgerson    convened   the   meeting   at                                                                    
approximately 6:08 PM                                                                                                           
                                                                                                                                
PRESENT  Co-Chair  John  Torgerson, Co-Chair  Sean  Parnell,                                                                
Senator  Al   Adams,  Senator  Pete  Kelly,   Senator  Randy                                                                    
Phillips  and  Senator Gary  Wilken  were  present when  the                                                                    
meeting  convened. Senator  Leman,  Senator Donley,  Senator                                                                    
Green arrived later.                                                                                                            
                                                                                                                                
Also Attending: REPRESENTATIVE  ANDREW HALCRO; KEN BISCHOFF,                                                                  
Director,  Division of  Administrative Services,  Department                                                                    
of  Public Safety;  ANNALEE MCCONNELL,  Director, Office  of                                                                    
Management  and  Budget,  Office   of  the  Governor;  CONOR                                                                    
SULLIVAN, staff to  Representative Cowdery; DARWIN PETERSON,                                                                    
Aide   to  Co-Chair   Torgerson  and   the  Senate   Finance                                                                    
Committee;  JONATHAN LACK,  Staff to  Representative Halcro;                                                                    
DENISE HENDERSON,  staff to  Representative Pete  Kott; BILL                                                                    
LAWRENCE, staff to Representative Carl Morgan                                                                                   
                                                                                                                                
Attending via Teleconference:  From Anchorage: BLAIR MCCUNE,                                                                  
Deputy  Director,  Public  Defenders Agency,  Department  of                                                                    
Administration;  WILEY  BROOKS;   ERIC  DYRUD,  Real  Estate                                                                    
Broker,  Member,  Anchorage  Board of  Realtors  Legislative                                                                    
Committee,   and  Alaska   Board  of   Realtors  Legislative                                                                    
Committee; JEROME PAPE; DAVID GARRISON, Associate Broker                                                                        
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 192-APPPROPRIATIONS; CAPITAL BUDGET/REAPPROPS                                                                                
                                                                                                                                
Amendments  were   considered  and   the  bill   moved  from                                                                    
Committee.                                                                                                                      
                                                                                                                                
SB 261-PREVENTION OF NEEDLE & SHARPS INJURIES                                                                                   
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
HB 180-DRUGS WHERE MINORS ARE PRESENT                                                                                           
                                                                                                                                
The  Committee  heard  from  the   sponsor  and  the  Public                                                                    
Defenders Agency. The bill moved from Committee.                                                                                
                                                                                                                                
HB 272-MUNICIPAL TAX: LOW INCOME HOUSING                                                                                        
                                                                                                                                
The Committee  heard testimony from the  sponsor and members                                                                    
of  the public.  A committee  substitute was  considered but                                                                    
not adopted. The bill was held.                                                                                                 
                                                                                                                                
HB 288-CHILDREN WITNESSING DOMESTIC VIOLENCE                                                                                    
                                                                                                                                
The  Committee  heard from  the  sponsor.  An amendment  was                                                                    
adopted and the bill moved from Committee.                                                                                      
                                                                                                                                
HB 437-REINSTATEMENT OF NATIVE CORPORATIONS                                                                                     
                                                                                                                                
The Committee  heard from the  sponsor. The bill  moved from                                                                    
Committee.                                                                                                                      
                                                                                                                                
     SENATE BILL NO. 192                                                                                                        
     "An Act making and amending capital appropriations and                                                                     
     reappropriations and capitalizing funds; and providing                                                                     
     for an effective date."                                                                                                    
                                                                                                                                
The Committee resumed consideration  of amendments to the CS                                                                    
SB 192 1-GS2043\H.                                                                                                              
                                                                                                                                
DEPARTMENT OF ADMINISTRATION                                                                                                    
                                                                                                                                
ADM #1:  This amendment makes  the following changes  to the                                                                    
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 2, line 26                                                                                                            
     Insert:                                                                                                                    
                                                                                                                                
     Alaska Public                                                                                                              
      Broadcasting Grants                                                                                                       
      (AS 44.21.268)                                                                                                            
     KAKM Construction      300,000    300,000                                                                                  
      of Digital Television                                                                                                     
      Facilities (ED 10-25)                                                                                                     
                                                                                                                                
     Explanation:                                                                                                               
     Addition of $300,000 in general funds                                                                                      
                                                                                                                                
Co-Chair Parnell  moved for adoption and  told the Committee                                                                    
that  the  U.S.  Congress  and  the  Federal  Communications                                                                    
Commission (FCC) have mandated  that all television stations                                                                    
convert  to  digital television  or  lose  their license  to                                                                    
broadcast. He  noted that the  deadline for  public stations                                                                    
is the  year 2003, and  is 2002 for commercial  stations. He                                                                    
stated that KAKM is collaborating  on this conversion effort                                                                    
with  local  commercial  stations,  thus  necessitating  the                                                                    
earlier  completion.  By  sharing  a  single  communications                                                                    
tower, he  explained, each station would  save approximately                                                                    
$1  million. Without  this funding,  he warned,  KAKM cannot                                                                    
partner with  the other stations and  subsequently incur the                                                                    
additional expense.  He pointed out additional  savings this                                                                    
amendment  provides, as  the $300,000  appropriation secures                                                                    
$600,000  federal funds,  plus another  $600,000 from  other                                                                    
sources.                                                                                                                        
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                        
                                                                                                                                
DEC #1: This amendment makes the following changes to the                                                                       
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 9, following line 29                                                                                                  
     Insert:                                                                                                                    
     Municipal Grants                                                                                                           
      (AS37.05.315)                                                                                                             
     City of Fairbanks      405,000                 405,000                                                                     
      Parking Garage                                                                                                            
                                                                                                                                
     Page 9, line 30                                                                                                            
     Delete:                                                                                                                    
     Municipal Water,    19,599,650              19,599,650                                                                     
      Sewer & Solid                                                                                                             
                                                                                                                                
     Insert:                                                                                                                    
     Municipal Water,    19,194,650              19,194,650                                                                     
      Sewer & Solid                                                                                                             
                                                                                                                                
     Page 10, lines 5-7                                                                                                         
     Delete:                                                                                                                    
      Fairbanks     405,000                                                                                                     
       Slaterville                                                                                                              
       Storm Water                                                                                                              
       Improvement                                                                                                              
       Phase I                                                                                                                  
       (ED 29-34)                                                                                                               
                                                                                                                                
     Explanation:                                                                                                               
     This amendment moves $405,000  of AHFC Dividend funding                                                                    
     from   the    Fairbanks   Slatterville    Storm   Water                                                                    
     Improvement Phase  I project  within the  Department of                                                                    
     Environmental   Conservation  to   the  Department   of                                                                    
     Administration for payment of  a municipal grant to the                                                                    
     City  of  Fairbanks  for   construction  of  a  parking                                                                    
     garage.                                                                                                                    
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
AT EASE 6:11 PM / 6:12 PM                                                                                                       
                                                                                                                                
DEPARTMENT OF ADMINISTRATION (cont.)                                                                                            
                                                                                                                                
ADM #4: This amendment makes the following changes to the                                                                       
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 2, lines 13-16                                                                                                        
     Delete:                                                                                                                    
     Information Service  3,141,000               3,141,000                                                                     
      Fund Equipment                                                                                                            
      Replacement (ED 99)                                                                                                       
     Land Mobile Radio    1,200,000     850,000     350,000                                                                     
      Migration (ED 99)                                                                                                         
                                                                                                                                
     Insert:                                                                                                                    
     Information Service  4,341,000               4,341,000                                                                     
      Fund                                                                                                                      
      Equipment    3,141,000                                                                                                    
       Replacement                                                                                                              
       (ED 99)                                                                                                                  
      Land Mobile  1,200,000                                                                                                    
       Radio                                                                                                                    
       Migration                                                                                                                
       (ED 99)                                                                                                                  
                                                                                                                                
     Explanation:                                                                                                               
     This amendment changes the  funding source for $850,000                                                                    
     of  the  Land  Mobile   Radio  Migration  project  from                                                                    
     general funds to Information Service Funds (ISF).                                                                          
     The    Department   of    Administration,   Information                                                                    
     Technology Group (ITG) staffs  and manages a large part                                                                    
     of the  technology and communications activity  for all                                                                    
     departments.  The funding  source for  ITG's personnel,                                                                    
     equipment,  etc.  comes  from "charge-backs"  that  all                                                                    
     departments pay into  the ISF, which is  a general fund                                                                    
     internal service fund (a subfund  of the general fund).                                                                    
     ITG   sets  out   support   charges  and   depreciation                                                                    
     schedules for its personnel  and equipment to determine                                                                    
     how much each  department will pay for  the services it                                                                    
     receives.  Because   the  departments   co-mingle  fund                                                                    
     sources  in  their  payments   for  ITG  services,  the                                                                    
     Department  of Administration  estimates  that the  ISF                                                                    
     may  be made  up from  as  much as  60 percent  federal                                                                    
     money  (this is  an  estimate because  there has  never                                                                    
     been a financial analysis of the fed's contribution.)                                                                      
     The Land Mobile Radio  Migration request comes from the                                                                    
     Department of Administration,  the same department that                                                                    
     manages  the  ISF.  The   department  agrees  with  the                                                                    
     sponsor that the  radio project qualifies as  a type of                                                                    
     service that the ISF could pay for under the statutes.                                                                     
                                                                                                                                
     Funding sources by project:                                                                                                
          Equipment Replacement    $3,141,000 ISF                                                                               
          Land Mobile Radio           850,000 ISF                                                                               
               Migration              350,000 Federal Funds                                                                     
                                                                                                                                
Co-Chair Parnell moved for adoption.                                                                                            
                                                                                                                                
Co-Chair Torgerson spoke to the funding source changes made                                                                     
in this amendment noting that the federal funding is not                                                                        
jeopardized.                                                                                                                    
                                                                                                                                
Without objection, the amendment was ADOPTED.                                                                                   
                                                                                                                                
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                     
                                                                                                                                
M&VA #1: This amendment makes the following changes to the                                                                      
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 14, following line 29                                                                                                 
     Insert:                                                                                                                    
     Grants to Named Recipients                                                                                                 
      (AS.37.05.316)                                                                                                            
     Anchorage Economic    200,000      200,000                                                                                 
      Development                                                                                                               
      Corporation:                                                                                                              
      Feasibility study                                                                                                         
      for a Department of                                                                                                       
      Defense Global                                                                                                            
      Logistics /Forward                                                                                                        
      Mobility Hub in                                                                                                           
      Anchorage (ED 10-25)                                                                                                      
                                                                                                                                
     Explanation:                                                                                                               
     This    amendment   provides    for   an    independent                                                                    
     consultant's   analysis    of   the    feasibility   of                                                                    
     establishing a military logistics center in Anchorage.                                                                     
                                                                                                                                
This amendment was NOT OFFERED to defer to M&VA #3.                                                                             
                                                                                                                                
M&VA #2: This amendment makes the following changes to the                                                                      
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 14, following line 29                                                                                                 
     Insert:                                                                                                                    
     Grants to Named Recipients                                                                                                 
      (AS.37.05.316)                                                                                                            
     Military Global        200,000     200,000                                                                                 
      Logistics/Forward                                                                                                         
      Mobility Hub                                                                                                              
      Economic Development                                                                                                      
      Opportunity Study                                                                                                         
      (ED 10-25)                                                                                                                
                                                                                                                                
This amendment was NOT OFFERED to defer to M&VA #3.                                                                             
                                                                                                                                
M&VA #3: This amendment makes the following changes to the                                                                      
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 14, following line 29                                                                                                 
     Insert:                                                                                                                    
     Grants to Named Recipients                                                                                                 
      (AS.37.05.316)                                                                                                            
     Anchorage Economic    150,000      150,000                                                                                 
      Development                                                                                                               
      Corporation:                                                                                                              
      Feasibility study                                                                                                         
      for a Department of                                                                                                       
      Defense Global                                                                                                            
      Logistics /Forward                                                                                                        
      Mobility Hub in                                                                                                           
      Anchorage (ED 10-25)                                                                                                      
                                                                                                                                
     Insert a new bill section to read:                                                                                         
          Sec.__. AIR SHOW. The sum of $10,000 is                                                                               
     appropriated from  the general  fund to  the Department                                                                    
     of  Military  and Veterans  Affairs  for  payment as  a                                                                    
     grant under  AS 37.05.316 to the  Air Force Association                                                                    
     for  fuel at  the  Elmendorf Air  Force  Base in  June,                                                                    
     2000, for the 80th anniversary of the Third Wing.                                                                          
                                                                                                                                
     Explanation:                                                                                                               
     This    amendment   provides    for   an    independent                                                                    
     consultant's   analysis    of   the    feasibility   of                                                                    
     establishing a  military logistics center  in Anchorage                                                                    
     and grants  to the Air  Force Association funds  to pay                                                                    
     fuel costs for the air  show at the Elmendorf Air Force                                                                    
     Base in June 2000.                                                                                                         
                                                                                                                                
Senator Adams moved for adoption on behalf of Senator                                                                           
Leman.                                                                                                                          
                                                                                                                                
Co-Chair Torgerson spoke to the amendment, listing the                                                                          
amounts appropriated to the two items.                                                                                          
                                                                                                                                
Senator Phillips objected.                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Donley,                                                                     
Senator Leman, Senator Adams, Co-Chair Parnell and Co-Chair                                                                     
Torgerson                                                                                                                       
                                                                                                                                
OPPOSED: Senator Phillips                                                                                                       
                                                                                                                                
ABSENT: Senator Green                                                                                                           
                                                                                                                                
The motion PASSED (7-1-1)                                                                                                       
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY                                                                                                     
                                                                                                                                
DPS #2: This amendment makes the following changes to the                                                                       
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 16, line 20                                                                                                           
     Delete:                                                                                                                    
     Aircraft & Vessel      838,780     838,780                                                                                 
      Repair &                                                                                                                  
      Maintenance                                                                                                               
      (ED 99)                                                                                                                   
                                                                                                                                
     Insert:                                                                                                                    
     Aircraft & Vessel    1,121,600   1,121,600                                                                                 
      Repair &                                                                                                                  
      Maintenance                                                                                                               
      (ED 99)                                                                                                                   
                                                                                                                                
Senator Adams spoke to the importance of funding for these                                                                      
deferred maintenance needs and moved for adoption.                                                                              
                                                                                                                                
Without objection, Senator Adams WITHDREW his motion and                                                                        
the amendment was NOT OFFERED to defer to DPS #3.                                                                               
                                                                                                                                
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                              
                                                                                                                                
DOT #3: This amendment makes the following changes to the                                                                       
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 25, line 3                                                                                                            
     Delete:                                                                                                                    
     Anchorage           34,305,265   2,646,265  31,659,000                                                                     
      Metropolitan Area                                                                                                         
      Transportation                                                                                                            
      Study                                                                                                                     
                                                                                                                                
     Insert:                                                                                                                    
     Anchorage           40,005,265   3,159,265  36,846,000                                                                     
      Metropolitan Area                                                                                                         
      Transportation                                                                                                            
      Study                                                                                                                     
                                                                                                                                
     Page 25, following line 6                                                                                                  
     Insert:                                                                                                                    
      Anchorage:  5,700,000                                                                                                     
       C Street                                                                                                                 
       Construction-                                                                                                            
       Phase #3                                                                                                                 
                                                                                                                                
     Explanation:                                                                                                               
     Includes funding for the construction of C Street                                                                          
     Phase 3, which was deleted in the Governor's amendment                                                                     
     to SB 192.                                                                                                                 
                                                                                                                                
Senator Donley noted this amendment would be NOT OFFERED                                                                        
due to action taken on DOT #2 at the previous hearing.                                                                          
                                                                                                                                
DOT #4: This amendment makes the following changes to the                                                                       
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 18, following line 26                                                                                                 
     Insert:                                                                                                                    
     Anchorage: Willow      110,000     110,000                                                                                 
      Crest Elementary                                                                                                          
      School Pedestrian                                                                                                         
      Overpass                                                                                                                  
      Improvements                                                                                                              
                                                                                                                                
     Explanation:                                                                                                               
     Includes design funding to improve access to existing                                                                      
     pedestrian    overpass   in    compliance   with    ADA                                                                    
     requirements.                                                                                                              
                                                                                                                                
Senator Donley moved for adoption.                                                                                              
                                                                                                                                
Without debate or objection the amendment was ADOPTED.                                                                          
                                                                                                                                
LANGUAGE SECTION                                                                                                                
                                                                                                                                
LANG #3: This amendment makes the following changes to the                                                                      
committee substitute.                                                                                                           
                                                                                                                                
     Page 60, following line 5                                                                                                  
     Insert a new bill section to read:                                                                                         
                                                                                                                                
          Sec. 12. AIR SHOW. The sum of $10,000 is                                                                              
     appropriated from the general fund to the Department                                                                       
     of  Military  and Veterans  Affairs  for  payment as  a                                                                    
     grant under  AS 37.05.316 to the  Air Force Association                                                                    
     for fuel  for an  air show at  the Elmendorf  Air Force                                                                    
     Base  in June  2000, for  the 80th  anniversary of  the                                                                    
     Third Wing.                                                                                                                
                                                                                                                                
The amendment also provides an immediate effective date for                                                                     
the new bill section.                                                                                                           
                                                                                                                                
This amendment was NOT OFFERED.                                                                                                 
                                                                                                                                
AT EASE 6:18 PM / 6:19 PM                                                                                                       
                                                                                                                                
MUNICIPAL / UNINCORPORATED MUNICIPALITIES GRANTS                                                                                
                                                                                                                                
MUNI & UNICORP #1: This amendment makes the following                                                                           
changes to the committee substitute.                                                                                            
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 39, lines 24-26                                                                                                       
     Delete:                                                                                                                    
     Aleknagik Foxville     25,019                   25,019                                                                     
      Roadway Extension                                                                                                         
      & Seaplane Base                                                                                                           
      (ED 39)                                                                                                                   
                                                                                                                                
     Page 39, line 27                                                                                                           
     Delete:                                                                                                                    
     Aleknagik North Shore   25,369                  25,369                                                                     
      Sludge Lagoon &                                                                                                           
      Landfill Relocation                                                                                                       
      & Road (ED 39)                                                                                                            
                                                                                                                                
     Insert:                                                                                                                    
     Aleknagik North Shore   25,019                  25,019                                                                     
      Sludge Lagoon &                                                                                                           
      Landfill Relocation                                                                                                       
      & Road (ED 39)                                                                                                            
                                                                                                                                
     Page 43, line 9                                                                                                            
     Delete:                                                                                                                    
     Fairbanks North Star   126,817                 126,817                                                                     
      Borough Animal                                                                                                            
      Shelter - Remodel &                                                                                                       
      Expansion of Kennels                                                                                                      
      (ED 29-34)                                                                                                                
                                                                                                                                
     Insert:                                                                                                                    
     Fairbanks North Star   125,982                 125,982                                                                     
      Borough Animal                                                                                                            
      Shelter - Remodel &                                                                                                       
      Expansion of Kennels                                                                                                      
      (ED 29-34)                                                                                                                
                                                                                                                                
     Page 49, following line 21                                                                                                 
     Insert:                                                                                                                    
     Scammon Bay Sewage     26,738                   26,738                                                                     
      Lines & Manhole                                                                                                           
      Repairs                                                                                                                   
                                                                                                                                
     Page 50, following line 21                                                                                                 
     Insert:                                                                                                                    
     Teller Cable TV         25,000                  25,000                                                                     
      Buyout, Phase II/                                                                                                         
      Expansion                                                                                                                 
                                                                                                                                
     Page 59, following line 28                                                                                                 
     Insert:                                                                                                                    
     Upper Kalskag           25,000                  25,000                                                                     
      Community Restoration                                                                                                     
      & Graveyard Restoration                                                                                                   
                                                                                                                                
     Page 50, following line 32                                                                                                 
     Insert:                                                                                                                    
     Wasilla Iditapark      107,487                 107,487                                                                     
      Site Improvements                                                                                                         
      & Utilities                                                                                                               
                                                                                                                                
     Page 51, following line 16                                                                                                 
     Insert:                                                                                                                    
     Beaver Community        25,000                  25,000                                                                     
      Restoration &                                                                                                             
      Graveyard Restoration                                                                                                     
                                                                                                                                
Senator Adams moved for adoption and explained the                                                                              
amendment makes technical language and dollar amount                                                                            
changes to the committee substitute.                                                                                            
                                                                                                                                
Co-Chair Torgerson  explained the reason this  amendment was                                                                    
not taken  up during the  first hearing was to  first verify                                                                    
the information  with the  Division of  Legislative Finance.                                                                    
He  stated that  this  practice is  standard  in the  budget                                                                    
process.  He  expressed that  he  had  no objection  to  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Senator  P. Kelly  asked  the effect  of  this amendment  on                                                                    
general fund.                                                                                                                   
                                                                                                                                
Co-Chair Torgerson responded the impact is "net zero".                                                                          
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (cont.)                                                                      
                                                                                                                                
DOT  #7:  This amendment  adds  $764,500  general funds  and                                                                    
$7,645,000  federal receipts  to the  Capital Transportation                                                                    
Projects   (CTP)  BRU   and  allocated   to  the   following                                                                    
components.                                                                                                                     
                                                                                                                                
     Akiachak Sanitation Road Resurfacing        $1,510,000                                                                     
     Bethel: Chief Eddie Hoffman Hwy              2,010,000                                                                     
          Separated Pathway                                                                                                     
     Bethel: Tundra Ridge Rd. Improvements          775,000                                                                     
     Kotzebue: Ted Stevens Way Reconstruction     3,350,000                                                                     
                                                                                                                                
Senator  Adams  stated  that this  amendment  would  be  NOT                                                                    
OFFERED  due to  action  taken  on DOT  #2  at the  previous                                                                    
hearing.                                                                                                                        
                                                                                                                                
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT                                                                                
                                                                                                                                
C&ED #4: This  amendment makes the following  changes to the                                                                    
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 3, line 16                                                                                                            
     Delete:                                                                                                                    
     State Historic          50,000      50,000                                                                                 
      Preservation Office                                                                                                       
      (ED 99)                                                                                                                   
     Page 3, following line 16                                                                                                  
     Insert:                                                                                                                    
     Grants to Named Recipients                                                                                                 
     State Historic          50,000      50,000                                                                                 
      Preservation Office                                                                                                       
      (ED 99)                                                                                                                   
                                                                                                                                
     Explanation:                                                                                                               
     Moves   a   named   grant  for   the   State   Historic                                                                    
     Preservation  Office from  the Department  of Community                                                                    
     and Economic  Development to the Department  of Natural                                                                    
     Resources. No funding changes.                                                                                             
                                                                                                                                
Co-Chair Parnell moved for adoption.                                                                                            
                                                                                                                                
Co-Chair   Torgerson   explained   this  amendment   has   a                                                                    
negligible  effect  on the  general  fund  because the  same                                                                    
amount  of  funds  is transferred  from  one  department  to                                                                    
another.                                                                                                                        
                                                                                                                                
Senator Phillips asked if this  were an operating or capital                                                                    
expense.                                                                                                                        
                                                                                                                                
Co-Chair Torgerson  responded that this is  a capital budget                                                                    
item.  He explained  that this  is money  for the  films and                                                                    
pictures  that are  in  the  historical preservation  office                                                                    
that need preservation.                                                                                                         
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
C&ED #5: This  amendment makes the following  changes to the                                                                    
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 3, line 9                                                                                                             
     Delete:                                                                                                                    
     U.S. Forest Service    200,000                 200,000                                                                     
      Mini-Grants                                                                                                               
                                                                                                                                
     Insert:                                                                                                                    
     U.S. Forest Service    700,000                 700,000                                                                     
      Mini-Grants                                                                                                               
                                                                                                                                
     Explanation:                                                                                                               
     The  Department of  Community and  Economic Development                                                                    
     recently  received  notification   that  an  additional                                                                    
     $500,000 in federal funding has  been authorized by the                                                                    
     Denali Commission for this program.  There are no match                                                                    
     requirements. The  objective of  this grant  program is                                                                    
     to strengthen  rural communities by  helping capitalize                                                                    
     on  their  potential  to  diversify  and  expand  their                                                                    
     economies through  the use of natural  resources and by                                                                    
     developing new economic  activity in non-forest related                                                                    
     industries. For  the past several years  the department                                                                    
     has  received $200,000  from the  USDA  to address  the                                                                    
     long-term  vitality  of  rural  areas  and  focuses  on                                                                    
     enhancing the  overall quality of rural  life primarily                                                                    
     through  natural   resource  based  solutions.     This                                                                    
     additional  authorization  will  bring  the  mini-grant                                                                    
     program to $700,000 in federal receipts.                                                                                   
                                                                                                                                
Senator Adams moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Torgerson objected for an explanation.                                                                                 
                                                                                                                                
Senator Adams read the explanation statement.                                                                                   
                                                                                                                                
Co-Chair Torgerson pointed out that the funding travels                                                                         
directly from the Denali Commission to the department.                                                                          
                                                                                                                                
Co-Chair Torgerson removed his objection.                                                                                       
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (cont.)                                                                           
                                                                                                                                
E&ED #2: This amendment makes the following changes to the                                                                      
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 4, following line 19                                                                                                  
     Insert:                                                                                                                    
     Grants to Named Recipients                                                                                                 
      (AS 37.05.316)                                                                                                            
     Alaska Aviation         50,000     50,000                                                                                  
      Heritage Museum                                                                                                           
                                                                                                                                
     Explanation:                                                                                                               
     This amendment  provides for funding for  the operation                                                                    
     of  the museum  and gift  shop during  the fiscal  year                                                                    
     ending June 30, 2001.                                                                                                      
                                                                                                                                
Co-Chair Parnell moved for adoption.                                                                                            
                                                                                                                                
Co-Chair Torgerson stated this amendment is a one-time                                                                          
appropriation.                                                                                                                  
                                                                                                                                
Senator Phillips objected.                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Leman, Senator Adams, Senator Wilken,                                                                         
Senator P. Kelly, Senator Green, Senator Donley, Co-Chair                                                                       
Parnell and Co-Chair Torgerson                                                                                                  
                                                                                                                                
OPPOSED: Senator Phillips                                                                                                       
                                                                                                                                
The motion PASSED (8-1)                                                                                                         
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
LANGUAGE SECTION (cont.)                                                                                                        
                                                                                                                                
LANG #9: This amendment inserts a new bill section in the                                                                       
committee substitute to read as follows.                                                                                        
                                                                                                                                
          Sec A. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT                                                                     
     GRANT  PROGRAM. The  amount  received  by the  National                                                                    
     Petroleum  Reserve -  Alaska special  revenue fund  (AS                                                                    
     37.05.530) under 42 U.S.C. 6508  during the fiscal year                                                                    
     ending   June  30,   2001,  is   appropriated  to   the                                                                    
     Department  of Community  and Economic  Development for                                                                    
     the fiscal year ending June  30, 2001, for grants under                                                                    
     the   National  Petroleum   Reserve  -   Alaska  impact                                                                    
     program.                                                                                                                   
                                                                                                                                
     Explanation:                                                                                                               
     AS   37.05.530  establishes   the  National   Petroleum                                                                    
     Reserve  -  Alaska  (NPRA)  special  revenue  fund  and                                                                    
     impact grant program. Federal  funds through the Bureau                                                                    
     of  Land Management  (BLM) are  dispersed to  the State                                                                    
     under 42  U.S.C. 6508. The Department  of Community and                                                                    
     Economic  Development  administers the  grant  program.                                                                    
     Municipalities   impacted   by   NPRA   oil   and   gas                                                                    
     development may  apply for and  be eligible  to receive                                                                    
     grants to  alleviate the impacts.  BLM recently  held a                                                                    
     NPRA  lease sale  and current  estimates  are that  the                                                                    
     State  should   receive  annually   approximately  $2.0                                                                    
     million for the next ten  years. This figure is subject                                                                    
     to  change, especially  if there  are additional  lease                                                                    
     sales held.                                                                                                                
                                                                                                                                
Senator Adams  moved for adoption.  He noted  this amendment                                                                    
is  standard language  contained in  all budgets.  He stated                                                                    
the intent to  divide the funds between  the permanent fund,                                                                    
the   school  public   trust  fund   and   the  Power   Cost                                                                    
Equalization (PCE) fund.                                                                                                        
                                                                                                                                
Co-Chair Torgerson noted this amendment appropriates funds                                                                      
for the following year and is an annual process.                                                                                
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
LANG #4 as Amended: This amendment makes the following                                                                          
changes to the committee substitute.                                                                                            
                                                                                                                                
     Insert a new bill section to read:                                                                                         
                                                                                                                                
          Sec. A. MATANUSKA-SUSITNA BOROUGH AND ALASKA                                                                          
     RAILROAD   CORPORATION.   (a)    The   unexpended   and                                                                    
     unobligated balance  of the appropriation made  by sec.                                                                    
     145(a), ch. 208,  SLA 1990, as amended by  sec. 55, ch.                                                                    
     100,   SLA   1997   (Alaska  Railroad   Corporation   -                                                                    
     $9,000,000), is reappropriated                                                                                             
               (1) one-half to the Department of Community                                                                      
     and Economic  Development for payment as  a grant under                                                                    
     AS  37.05.3 15  to  the  Matanuska-Susitna Borough  for                                                                    
     economic  development in  the  borough, including  port                                                                    
     development  and development  of coal  resources within                                                                    
     the borough; and                                                                                                           
               (2)   one-half   to   the   Alaska   Railroad                                                                    
     Corporation  for the  purchase of  locomotives, rolling                                                                    
     stock,   and  associated   equipment   and  rail   line                                                                    
     improvements  in  the   Matanuska-Susitna  Borough,  to                                                                    
     facilitate  the development  of  coal  deposits in  the                                                                    
     Matanuska-Susitna Valley.                                                                                                  
          (b) The unexpended and unobligated balance of the                                                                     
     appropriation made  by sec. 145(b), ch.  208, SLA 1990,                                                                    
     added  by sec.  56, ch.  100, SLA  1997, as  amended by                                                                    
     sec.  40(b),   ch.  2,  FSSLA  1999   (Alaska  Railroad                                                                    
     Corporation), is reappropriated                                                                                            
               (1) one-half to the Department of Community                                                                      
     and Economic  Development for payment as  a grant under                                                                    
     AS  37.05.3 15  to  the  Matanuska-Susitna Borough  for                                                                    
     economic  development in  the  borough, including  port                                                                    
     development  and development  of coal  resources within                                                                    
     the borough; and                                                                                                           
               (2)   one-half   to   the   Alaska   Railroad                                                                    
     Corporation  for the  purchase of  locomotives, rolling                                                                    
     stock,   and  associated   equipment   and  rail   line                                                                    
     improvements  in  the   Matanuska-Susitna  Borough,  to                                                                    
     facilitate  the development  of  coal  deposits in  the                                                                    
     Matanuska-Susitna Valley.                                                                                                  
          Sec. B. The appropriations made by sec. A(a)(2)                                                                       
     and A(b)(2) of this Act are for capital projects and                                                                       
     lapse under AS 37.25.020.                                                                                                  
                                                                                                                                
[This  amendment  was  amended  in a  previous  hearing  and                                                                    
held.]                                                                                                                          
                                                                                                                                
Senator Green moved for adoption.                                                                                               
                                                                                                                                
Senator Adams objected.                                                                                                         
                                                                                                                                
Senator Adams  spoke to his objection  repeating his earlier                                                                    
argument that the  money belongs to the  entire state rather                                                                    
than specified communities located along the Railbelt.                                                                          
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator P. Kelly, Senator Green, Senator                                                                              
Phillips, Senator Donley, Senator Leman, Senator Wilken,                                                                        
Co-Chair Parnell and Co-Chair Torgerson                                                                                         
                                                                                                                                
OPPOSED: Senator Adams                                                                                                          
                                                                                                                                
The motion PASSED (8-1)                                                                                                         
                                                                                                                                
The amended amendment was ADOPTED.                                                                                              
                                                                                                                                
Co-Chair Parnell  moved to allow  the Division of  Legal and                                                                    
Research Services  and the  Division of  Legislative Finance                                                                    
to make  technical adjustments  to the  committee substitute                                                                    
as necessary when incorporating the adopted amendments.                                                                         
                                                                                                                                
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (cont.)                                                                      
                                                                                                                                
DOT #9: This amendment was adopted in a previous hearing.                                                                       
                                                                                                                                
Senator Donley noted a technical  correction to the language                                                                    
of  the amendment.  "Shop"  should read  "Site"  in the  two                                                                    
places it  appears in the amendment.  The corrected language                                                                    
reads as follows.                                                                                                               
                                                                                                                                
     Page 14, lines 25-29                                                                                                       
     Delete:                                                                                                                    
     It is the intent of the legislature that the                                                                               
     department shares the use of the Tudor Road                                                                                
     Maintenance Site with the Municipality of Anchorage.                                                                       
                                                                                                                                
     Insert:                                                                                                                    
     Contingent   upon  the   department  entering   into  a                                                                    
     Memorandum  of  Agreement   with  the  Municipality  of                                                                    
     Anchorage  to   share  the  use   of  the   Tudor  Road                                                                    
     Maintenance  Site,  $200,000  is appropriated  for  the                                                                    
     costs  related to  the transfer  of this  facility from                                                                    
     the Department of Military and  Veterans Affairs to the                                                                    
    Department of Transportation and Public Facilities.                                                                         
                                                                                                                                
AT EASE 6:30 PM / 6:34 PM                                                                                                       
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY (cont.)                                                                                             
                                                                                                                                
DPS #3:  This amendment makes  the following changes  to the                                                                    
committee substitute.                                                                                                           
                                                                                                                                
                       Appropriation  General          Other                                                                    
                Allocation     Items     Funds         Funds                                                                    
     Page 16, line 20                                                                                                           
     Delete:                                                                                                                    
     Aircraft & Vessel      838,780     838,700                                                                                 
      Repair & Maintenance                                                                                                      
      (ED 99)                                                                                                                   
                                                                                                                                
     Insert:                                                                                                                    
     Aircraft & Vessel    1,063,780   1,063,780                                                                                 
      Repair & Maintenance                                                                                                      
      (ED 99)                                                                                                                   
                                                                                                                                
     Page 16, line 30                                                                                                           
     Delete:                                                                                                                    
     Southeast Emergency    275,000     275,000      50,000                                                                     
      Communications                                                                                                            
      Upgrade (ED 3-4)                                                                                                          
                                                                                                                                
     Insert:                                                                                                                    
     Southeast Emergency                             50,000                                                                     
      Communications                                                                                                            
      Upgrade (ED 3-4)                                                                                                          
                                                                                                                                
Senator  Adams  requested  the   department  speak  to  this                                                                    
amendment  and moved  for its  adoption. He  noted that  the                                                                    
Southeast Emergency Communications Upgrade  is a new project                                                                    
and that  the allocated funds  are not enough to  fully fund                                                                    
it. Therefore,  he said  he would rather  the money  be used                                                                    
for  the   Aircraft  and   Vessel  Repair   and  Maintenance                                                                    
component.                                                                                                                      
                                                                                                                                
Co-Chair Torgerson objected.                                                                                                    
                                                                                                                                
KEN   BISCHOFF,   Director,   Division   of   Administrative                                                                    
Services,  Department of  Public  Safety,  stated that  this                                                                    
amendment  is   similar  to  DPS  #1A,   which  reduced  the                                                                    
appropriations to  the communications project.  He explained                                                                    
that this  amendment transfers  the remaining  general funds                                                                    
for this project.                                                                                                               
                                                                                                                                
Senator Donley remembered the  balance of the appropriation,                                                                    
after the adoption of DPS #1A was more $200,000.                                                                                
                                                                                                                                
Mr.  Bischoff responded  that there  had been  an additional                                                                    
$50,000  in  other funds  appropriated  from  the Oil  Spill                                                                    
Response  Fund. However,  he was  not  comfortable that  the                                                                    
vessel and aircraft projects would qualify for those funds.                                                                     
                                                                                                                                
Senator  Donley  asserted  that   this  amendment  does  not                                                                    
conform  to the  changes made  under DPS  #1A, which  left a                                                                    
general  fund balance  of  $171,500  in the  communication's                                                                    
project.                                                                                                                        
                                                                                                                                
Senator Adams  clarified that this amendment  transfers that                                                                    
$171,500.                                                                                                                       
                                                                                                                                
ANNALEE  MCCONNELL,  Director,   Office  of  Management  and                                                                    
Budget,   Office  of   the   Governor   restated  that   the                                                                    
appropriation, after the reduction taken  in DPS #1A, is not                                                                    
sufficient to undertake  the communication's project. Rather                                                                    
than have a  seriously underfunded project, she  said, it is                                                                    
preferable to use the money  to fund the aircraft and vessel                                                                    
repair and maintenance component.                                                                                               
                                                                                                                                
Senator Wilken noted that the  reduced amount allows for the                                                                    
purchase of the communication's  equipment but not enough to                                                                    
pay for the installation.                                                                                                       
                                                                                                                                
Co-Chair Torgerson maintained his objection.                                                                                    
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Green, Senator Adams and Senator P. Kelly                                                                     
                                                                                                                                
OPPOSED: Senator Phillips, Senator Donley, Senator Leman,                                                                       
Senator Wilken, Co-Chair Parnell and Co-Chair Torgerson                                                                         
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Co-Chair Parnell  offered a motion to  report from Committee                                                                    
CS SB 192, 1-GS2043\H, as amended.                                                                                              
                                                                                                                                
Co-Chair Torgerson thanked those  involved in the process of                                                                    
the FY 01 Capital Budget.                                                                                                       
                                                                                                                                
There  was  no  objection  and   the  bill  was  MOVED  from                                                                    
Committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
AT EASE 6:45 PM / 7:00 PM                                                                                                       
                                                                                                                                
     COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 180(JUD)                                                                           
     "An Act relating to the possession, manufacture, use,                                                                      
     display, or delivery of controlled substances while                                                                        
     children are present."                                                                                                     
                                                                                                                                
This  was the  second hearing  for this  bill in  the Senate                                                                    
Finance Committee.                                                                                                              
                                                                                                                                
CONOR  SULLIVAN, staff  to Representative  Cowdery, reminded                                                                    
the  Committee   that  this   bill  prohibits   adults  from                                                                    
knowingly allowing or encouraging,  a minor from entering or                                                                    
remaining  in the  immediate  presence  of the  manufacture,                                                                    
use, delivery,  or display of  drugs. He expressed  that the                                                                    
intent  is to  send a  strong message  that "drugs  and kids                                                                    
don't mix."                                                                                                                     
                                                                                                                                
BLAIR  MCCUNE,  Deputy  Director, Public  Defenders  Agency,                                                                    
Department of  Administration, testified  via teleconference                                                                    
from Anchorage about  his concern that people  do not always                                                                    
have much  choice over where  they live. He gave  an example                                                                    
of a  spouse who  begins using drugs,  and the  position the                                                                    
other  spouse is  placed in,  which under  this legislation,                                                                    
would  require   immediate  relocation  to   avoid  criminal                                                                    
charges.                                                                                                                        
                                                                                                                                
Senator Adams offered  a motion to report  from Committee CS                                                                    
HB 180  (JUD) with accompanying  zero fiscal notes  from the                                                                    
Department of Law and the  Alaska Court System, accompanying                                                                    
indeterminable   fiscal   note   from  the   Department   of                                                                    
Administration,   Public    Defender's   Agency    and   new                                                                    
indeterminable   fiscal   note   from  the   Department   of                                                                    
Corrections.                                                                                                                    
                                                                                                                                
Without objection the bill MOVED from Committee.                                                                                
                                                                                                                                
     HOUSE BILL NO. 272                                                                                                         
     "An Act relating  to the tax assessment by  a home rule                                                                    
     or general  law municipality of housing  that qualifies                                                                    
     for the  low-income housing  credit under  the Internal                                                                    
    Revenue Code; and providing for an effective date."                                                                         
                                                                                                                                
                                                                                                                                
This  was the  second hearing  for this  bill in  the Senate                                                                    
Finance Committee.                                                                                                              
                                                                                                                                
WILEY  BROOKS, testified  via teleconference  from Anchorage                                                                    
about  his written  remarks in  opposition to  the bill.  He                                                                    
restated  earlier oral  testimony regarding  his disapproval                                                                    
of "special interest legislation."                                                                                              
                                                                                                                                
ERIC DYRUD,  Real Estate Broker, Member,  Anchorage Board of                                                                    
Realtors   Legislative  Committee,   and  Alaska   Board  of                                                                    
Realtors     Legislative     Committee,    testified     via                                                                    
teleconference from  Anchorage about the  uniform opposition                                                                    
to  the  bill  from  the  organizations  he  represents.  He                                                                    
suggested this legislation would  create an unfunded mandate                                                                    
and a  revenue reduction to municipalities.  He thought this                                                                    
would increase property taxes for  other property owners and                                                                    
be unfair to  other rental property owners.  He talked about                                                                    
the detriment to the real estate…                                                                                               
                                                                                                                                
JEROME  PAPE  testified  via teleconference  from  Anchorage                                                                    
that he thought the  bill created favoritism amongst already                                                                    
subsidized  programs. He  noted that  the low-income  renter                                                                    
would  not  be benefited  from  this.  He  had been  in  the                                                                    
business for  many years and  had never found a  shortage of                                                                    
low income housing for good tenants.                                                                                            
                                                                                                                                
DAVID  GARRISON,  Associate  Broker,   owner  of  34  units,                                                                    
testified via teleconference from  Anchorage saying that the                                                                    
individuals in  these projects know the  tax situation going                                                                    
into the business and that  to change the structure for them                                                                    
would be unfair to others.  He also said that reducing taxes                                                                    
for all  rental property owners  would not be  right either,                                                                    
since everyone should pay for the services they receive.                                                                        
                                                                                                                                
Co-Chair Torgerson noted those present to answer questions.                                                                     
                                                                                                                                
DARWIN PETERSON,  Aide to Co-Chair Torgerson  and the Senate                                                                    
Finance Committee compared  a proposed committee substitute,                                                                    
1-LS1148\T,   to  the   committee   substitute  before   the                                                                    
Committee, version "I".                                                                                                         
                                                                                                                                
     Section   1(d)(2)   -   the  governing   power   of   a                                                                    
     municipality is  given the responsibility  to determine                                                                    
     the full and true value  of the property to be included                                                                    
     in  the low-income  housing credit,  as opposed  to the                                                                    
     assessor. The  governing body  has an  unlimited amount                                                                    
     of time to make that determination.                                                                                        
                                                                                                                                
     Section 1(d)(2)(B)  - once that determination  is made,                                                                    
     the assessment  of the parcel  of property  will remain                                                                    
     in effect as long as the bond is outstanding.                                                                              
                                                                                                                                
Co-Chair Torgerson  further clarified  that this  bill gives                                                                    
more of a  local option. He pointed out  that a municipality                                                                    
must  take a  positive  action before  this legislation  can                                                                    
take effect in their community.                                                                                                 
                                                                                                                                
Senator Leman asked  if there was a maximum  time for bonded                                                                    
indebtedness  under the  federal program.  He suggested  the                                                                    
Committee might want to limit the time.                                                                                         
                                                                                                                                
Mr.  Peterson did  not know  the time  requirements for  the                                                                    
federal program.                                                                                                                
                                                                                                                                
Co-Chair Torgerson relayed that  the question had been asked                                                                    
previously, and  that it was determined  there are different                                                                    
time  frames for  the various  programs. He  noted that  the                                                                    
standard timeframe is ten years.                                                                                                
                                                                                                                                
Senator Donley asked if once  a local government took action                                                                    
to enact this legislation,  if the adopted assessments apply                                                                    
to all property in this category.                                                                                               
                                                                                                                                
Mr. Peterson  showed how the language  in Section 1(d)(2)(A)                                                                    
gives the  municipality the ability to  apply the assessment                                                                    
on a parcel by parcel basis.                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDREW  HALCRO   explained  Section  1(d)(2)                                                                    
grandfathers  the existing  properties  already  on the  tax                                                                    
roles.  He stressed  that some  of the  testimony heard  was                                                                    
actually incorrect.                                                                                                             
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #87, Side B    7:18 PM                                                                                           
                                                                                                                                
                                                                                                                                
Representative Halcro  continued that these  properties were                                                                    
built with the  understanding that tax would  be accessed at                                                                    
what  their  deed-restricted  rents would  be.  However,  he                                                                    
shared  that  the  new  tax   assessor  in  Anchorage  began                                                                    
assessing  these  properties  at  fair market  value.  As  a                                                                    
result, he said, owners are  unable to raise the rent enough                                                                    
to meet the higher property appraisal.                                                                                          
                                                                                                                                
Senator Donley  asked for  clarification of  the grandfather                                                                    
clause.                                                                                                                         
                                                                                                                                
Co-Chair  Torgerson stated  that the  process still  must be                                                                    
enacted   through    municipal   ordinance   and    is   not                                                                    
automatically grandfathered.                                                                                                    
                                                                                                                                
Representative   Halcro  pointed   out  the   bill  language                                                                    
stipulating that the action must  be taken "on or after" the                                                                    
time  assessment, which  automatically qualifies  properties                                                                    
already   constructed.   At   that  time,   he   said,   the                                                                    
municipalities can decide whether or not to include them.                                                                       
                                                                                                                                
Senator Donley  thought the language was  incomplete if this                                                                    
were  the actual  intent. As  he understood,  the assessment                                                                    
would  apply to  those properties  that are  submitted after                                                                    
the effective date.                                                                                                             
                                                                                                                                
Representative Halcro clarified that  the governing body has                                                                    
the ability to grandfather.                                                                                                     
                                                                                                                                
Co-Chair  Torgerson  stressed   again  that  the  assessment                                                                    
requires a  positive action and  that it was not  a mandate.                                                                    
He  added   that  the   Anchorage  assembly   supports  this                                                                    
legislation.                                                                                                                    
                                                                                                                                
Representative  Halcro  noted  the  Anchorage  assembly  had                                                                    
passed a resolution in favor of the bill.                                                                                       
                                                                                                                                
Co-Chair Torgerson  allowed that the language  was confusing                                                                    
and  that he  had  needed assistance  from  the drafters  to                                                                    
understand it.                                                                                                                  
                                                                                                                                
Senator Adams  understood the language  to dictate  that any                                                                    
party presently  in the program  is grandfathered in  on the                                                                    
effective date  of the  bill. He  continued that  anyone new                                                                    
coming into  the program, would  require a  determination by                                                                    
local option.                                                                                                                   
                                                                                                                                
Senator  Donley stressed  that the  language does  not state                                                                    
that,  but only  addresses those  that would  qualify on  or                                                                    
after the effective date.                                                                                                       
                                                                                                                                
Co-Chair  Torgerson said  his  intent was  to  have a  local                                                                    
option  apply to  the  legislation. He  stated  that if  the                                                                    
members were  confused with the  language, he  would request                                                                    
the  Division of  Legal and  Research  Services redraft  the                                                                    
bill to make it more understandable.                                                                                            
                                                                                                                                
Senator Wilken  asked if once  a municipality opted  for the                                                                    
assessment  exemption  program, if  it  has  the ability  to                                                                    
change back for new projects.                                                                                                   
                                                                                                                                
Representative Halcro  responded that the  municipalities do                                                                    
not  have that  option  because, when  these properties  are                                                                    
approved  for construction  of  a  low-incoming housing  tax                                                                    
credit  property,   the  properties   are  build   with  the                                                                    
assumption that  they will only  be taxed according  to what                                                                    
rent can be charged.                                                                                                            
                                                                                                                                
Senator Wilken  and Representative Halcro  further discussed                                                                    
the matter.                                                                                                                     
                                                                                                                                
Senator  Donley stated  that the  language is  confusing and                                                                    
that  he  did not  have  the  same interpretation  regarding                                                                    
existing property.                                                                                                              
                                                                                                                                
Representative  Halcro  clarified  that  the  existing  low-                                                                    
income properties already are a  part of the federal program                                                                    
and  that the  language  in subsection  (2) stipulates  that                                                                    
those  properties in  the federal  program  qualify for  the                                                                    
program proposed in the bill.                                                                                                   
                                                                                                                                
Senator  Donley noted  the phrase  "first  qualifies… on  or                                                                    
after the  effective date" on page  2, lines 6 and  7 of the                                                                    
committee substitute.  He emphasized "first"  and understood                                                                    
this to mean that  previously qualified properties would not                                                                    
be included in this legislation.                                                                                                
                                                                                                                                
Co-Chair   Torgerson   countered   the  intent   of   "first                                                                    
qualifies"  to mean  that before  becoming eligible  for the                                                                    
assessment exemption, a property  must first qualify for the                                                                    
federal low-income housing credit.                                                                                              
                                                                                                                                
JONATHAN  LACK, Staff  to Representative  Halcro added  that                                                                    
subsection  (2)  provides that  only  after  a property  has                                                                    
obtained  a   federal  low-income  housing  credit,   may  a                                                                    
municipality  make a  determination on  whether to  grant an                                                                    
assessment exemption.                                                                                                           
                                                                                                                                
Senator  Phillips commented  that the  bottom line  was that                                                                    
the   legislature  would   pass  the   buck  to   the  local                                                                    
governments to make the decision. He spoke                                                                                      
                                                                                                                                
Co-Chair Torgerson ordered the bill HELD in Committee.                                                                          
                                                                                                                                
     SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE                                                                       
     FOR HOUSE BILL NO. 288(JUD)                                                                                                
     "An Act relating to the creation of an aggravating                                                                         
     factor for the commission of domestic violence in the                                                                      
     physical presence or hearing of a child."                                                                                  
                                                                                                                                
                                                                                                                                
This  was the  first hearing  for  this bill  in the  Senate                                                                    
Finance Committee.                                                                                                              
                                                                                                                                
DENISE   HENDERSON,  staff   to  Representative   Pete  Kott                                                                    
testified that this bill adds  a new section to AS 12.55.18.                                                                    
She noted  that presently,  committing domestic  violence in                                                                    
the presence of  a child is not, and cannot  be, included as                                                                    
a  determining factor  in the  sentencing of  a perpetrator.                                                                    
She  stressed  that  this   legislation  would  protect  the                                                                    
special venerability  of children  and would become  a major                                                                    
factor  in determining  the severity  of the  crime and  the                                                                    
resulting sentence thereof.                                                                                                     
                                                                                                                                
Amendment  #1:  This  amendment inserts  "living"  following                                                                    
"offense,"  on page  1 line  14 and  deletes "household"  on                                                                    
page 2  line 1  and inserts, "residence  of the  victim, the                                                                    
residence  of the  perpetrator, or  the residence  where the                                                                    
crime  involving domestic  violence  occurred." The  amended                                                                    
language reads as follows.                                                                                                      
                                                                                                                                
          (C) specified in AS 11.41 that is a crime                                                                             
     involving domestic violence and was committed in the                                                                       
     physical presence or hearing of  a child under 16 years                                                                    
     of age,  who was,  at the time  of the  offense, living                                                                    
     within the  residence of the  victim, the  residence of                                                                    
     the  perpetrator,  or  the residence  where  the  crime                                                                    
     involving domestic violence occurred.                                                                                      
                                                                                                                                
Senator Phillips moved for adoption  on behalf of the bill's                                                                    
sponsor.                                                                                                                        
                                                                                                                                
Co-Chair Torgerson objected for an explanation.                                                                                 
                                                                                                                                
Senator  Phillips   explained  that  the   Senate  Judiciary                                                                    
Committee felt that the term "household" is too broad.                                                                          
                                                                                                                                
Senator Phillips offered a motion  to report from Committee,                                                                    
SCS  CS  HB 288  (JUD)  as  amended with  accompanying  zero                                                                    
fiscal  notes from  the Alaska  Court System,  Department of                                                                    
Corrections, Department of Law,  Department of Public Safety                                                                    
and  indeterminable  fiscal  note  from  the  Department  of                                                                    
Administration, Public Defender's Agency.                                                                                       
                                                                                                                                
There  was  no  objection  and   the  bill  was  MOVED  from                                                                    
Committee.                                                                                                                      
                                                                                                                                
     HOUSE BILL NO. 437                                                                                                         
     "An Act relating to the reinstatement of Native                                                                            
    corporations; and providing for an effective date."                                                                         
                                                                                                                                
                                                                                                                                
This  was the  first hearing  for  this bill  in the  Senate                                                                    
Finance Committee.                                                                                                              
                                                                                                                                
BILL   LAWRENCE,  staff   to  Representative   Carl  Morgan,                                                                    
testified that this legislation  provides an opportunity for                                                                    
several  dissolved Native  village  corporations to  address                                                                    
viable  business  matters  to  become  viable  entities.  He                                                                    
explained that this bill extends,  to December 31, 2000, the                                                                    
date that  Native village corporations may  be reinstated in                                                                    
accordance with state law.                                                                                                      
                                                                                                                                
Mr. Lawrence shared that  the Ohogamiut Traditional Council,                                                                    
whose  corporation had  been involuntarily  dissolved, asked                                                                    
Representative  Morgan  for  assistance  in  establishing  a                                                                    
method that  the Council could  use in order to  file annual                                                                    
business  reports.  These  reports, Mr.  Lawrence  explained                                                                    
would  allow  the Council  to  pay  incurred penalties,  and                                                                    
resume operations as a viable corporation.                                                                                      
                                                                                                                                
Co-Chair  Torgerson asked  how many  times this  opportunity                                                                    
has been granted to the corporations.                                                                                           
                                                                                                                                
Mr. Lawrence  knew of one other  time, but did not  know the                                                                    
total number of opportunities.                                                                                                  
                                                                                                                                
Co-Chair Torgerson  remembered the  exemption granted  a few                                                                    
years  ago and  wanted to  know if  the Native  corporations                                                                    
would actually participate.                                                                                                     
                                                                                                                                
Mr.  Lawrence  responded   that  the  Ohogamiut  Traditional                                                                    
Council has  indicated that  they would  pay the  back taxes                                                                    
owed and penalties, if the opportunity is granted.                                                                              
                                                                                                                                
Co-Chair Torgerson  asked what  would happen if  the council                                                                    
does not use this opportunity.                                                                                                  
                                                                                                                                
Mr. Lawrence  responded that they "would  probably wish they                                                                    
had."                                                                                                                           
                                                                                                                                
Co-Chair Torgerson stated that  he had seen this opportunity                                                                    
granted three times since he  took office. He expressed that                                                                    
he did not oppose the legislation.                                                                                              
                                                                                                                                
Senator Leman offered a motion  to report from Committee, HB
437 1-LS1564\A  with accompanying zero fiscal  note from the                                                                    
Department of Community and Economic Development.                                                                               
                                                                                                                                
Without objection the bill MOVED from Committee.                                                                                
ADJOURNED                                                                                                                   
                                                                                                                                
Senator Torgerson adjourned the meeting at 7:41 PM.                                                                             

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