Legislature(2009 - 2010)SENATE FINANCE 532

04/19/2009 11:00 AM FINANCE


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11:17:03 AM Start
11:18:11 AM HB151
11:29:25 AM Presentation: Stampede State Recreation Area
03:22:07 PM HB113
03:34:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+ HB 151 USE, REGULATION, AND OPERATION OF BOATS TELECONFERENCED
Moved CSHB 151(FIN) Out of Committee
Presentation:
+ STAMPEDE STATE RECREATION AREA TELECONFERENCED
+= HB 113 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
Moved SCS CSHB 113(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 19, 2009                                                                                           
                         11:17 a.m.                                                                                             
                                                                                                                                
11:17:03 AM                                                                                                                   
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee meeting                                                                    
to order at 11:17 a.m.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative    Mark    Neuman;   James    Ellis,    Staff,                                                                   
Representative Mark Neuman; Tim Grussendorf, Staff, Senator                                                                     
Lyman Hoffman;                                                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jeff Johnson, Manager, Alaska Boating Safety Program; James                                                                     
King, Director, Division of Parks and Recreation;                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CS HB 113(FIN) am(brf sup maj fld)                                                                                              
          "An   Act   making   supplemental   appropriations,                                                                   
          capital  appropriations, and other  appropriations;                                                                   
          amending  appropriations; making appropriations  to                                                                   
          capitalize  funds; and  providing for an  effective                                                                   
          date."                                                                                                                
                                                                                                                                
          SCS CSHB  113 (FIN)  was REPORTED out  of Committee                                                                   
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
CS HB 151(FIN)                                                                                                                  
          "An  Act  amending  the  termination  date  of  the                                                                   
          statewide  boating  safety and  education  program;                                                                   
          providing  for an  effective date  by amending  the                                                                   
          effective  date of secs.  3, 5, 7,  9, 11,  14, 16,                                                                   
          18,  20,  23, 26,  and  27, ch.  28,  SLA 2000,  as                                                                   
          amended; and providing for an effective date."                                                                        
                                                                                                                                
                                                                                                                                
          CS HB  151(FIN) was REPORTED out of  Committee with                                                                   
          a  "do  pass"  recommendation   and  with  attached                                                                   
          fiscal  note   2  by  the  Department   of  Natural                                                                   
          Resources.                                                                                                            
                                                                                                                                
Presentation:                                                                                                                   
     Stampede Recreation Area                                                                                                   
                                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 151(FIN)                                                                                                
                                                                                                                                
     "An Act amending  the termination date of  the statewide                                                                   
     boating safety  and education program; providing  for an                                                                   
     effective date  by amending the effective  date of secs.                                                                   
     3, 5, 7, 9, 11, 14, 16, 18,  20, 23, 26, and 27, ch. 28,                                                                   
     SLA  2000, as amended;  and providing  for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
     CS HB 151(FIN) was REPORTED  out of Committee with a "do                                                                   
     pass" recommendation and  with attached fiscal note 2 by                                                                   
     the Department of Natural Resources.                                                                                       
                                                                                                                                
11:18:11 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MARK  NEUMAN, SPONSOR spoke in  support of the                                                                   
legislation,  which   would  continue  the  program   to  put                                                                   
lifejackets  at boat  launches,  and teach  children to  swim                                                                   
through school programs.                                                                                                        
                                                                                                                                
JAMES  ELLIS, STAFF,  REPRESENTATIVE  MARK NEUMAN,  explained                                                                   
that the legislation  would extend the Alaska  Boating Safety                                                                   
program. Under  the legislation's  current form,  the program                                                                   
would be  extended for  one year. The  program began  in 2000                                                                   
and is  funded through  a mix of  federal grants  and license                                                                   
receipts. The program will terminate  before the next session                                                                   
due to  a conflict with the  federal fiscal year  grant cycle                                                                   
if  the legislation  is not  passed. The  program has  taught                                                                   
boating  safety  to  over 63,000  children  and  over  14,000                                                                   
adults and has 104 instructors  across the state. Training is                                                                   
also provided  to state  troopers and  other law  enforcement                                                                   
officers. The program has distributed  over 20,000 kids don't                                                                   
float  life  vests at  514  stations  in 153  communities  in                                                                   
partnerships  with  local organizations.  He  concluded  that                                                                   
there has  been a 20 percent  decrease in boating  fatalities                                                                   
and  increased compliance  with basic  boating standards  and                                                                   
rules.   Seventeen children have  been rescued  while wearing                                                                   
these life vests.                                                                                                               
                                                                                                                                
Senator Huggins  noted that the  provision had been  in place                                                                   
for eight  years and commented  on the lives  saved. Co-Chair                                                                   
Stedman commented  on the  importance of protecting  children                                                                   
in coastal communities.                                                                                                         
                                                                                                                                
Co-Chair  Stedman  observed  that  the  legislation  has  one                                                                   
attached fiscal  note for  $364.5 thousand  for FY 10  and FY                                                                   
11.                                                                                                                             
                                                                                                                                
11:22:11 AM                                                                                                                   
                                                                                                                                
JEFF  JOHNSON,   MANAGER,  ALASKA   BOATING  SAFETY   PROGRAM                                                                   
(testified via teleconference) offered to answer questions.                                                                     
                                                                                                                                
JAMES  KING,  DIRECTOR,  DIVISION  OF  PARKS  AND  RECREATION                                                                   
testified via  teleconference in support of  the legislation.                                                                   
He  pointed out  that  the fiscal  note  would  be funded  by                                                                   
boater registration  fees. The rest  of the program  would be                                                                   
funded through a  federal grant. He described  the success of                                                                   
the program  and emphasized the  decline in deaths  resulting                                                                   
from boating.                                                                                                                   
                                                                                                                                
11:24:27 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED to  report  CS  HB 151(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 151(FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with attached fiscal note  2 by the                                                                   
Department of Natural Resources.                                                                                                
                                                                                                                                
11:24:54 AM                                                                                                                   
                                                                                                                                
^PRESENTATION: STAMPEDE STATE RECREATION AREA                                                                                   
                                                                                                                                
Senator  Thomas, Sponsor,  presented  an  overview, "SB  108-                                                                   
Stampede State Recreation Area," (copy on file).                                                                                
                                                                                                                                
Senator  Thomas   noted  that  Stampeded  Road   corridor  is                                                                   
northwest of Healy  and flanked on three sides  by the Denali                                                                   
National  Park and  is a  traditional place  for Alaskans  to                                                                   
pursue recreational activities:                                                                                                 
                                                                                                                                
   · Hunting and trapping                                                                                                       
   · Dog mushing                                                                                                                
   · All-terrain vehicles                                                                                                       
   · Watercraft use                                                                                                             
   · Snowmachining                                                                                                              
   · Horseback riding                                                                                                           
   · Dog sledding                                                                                                               
   · Camping                                                                                                                    
                                                                                                                                
Senator Thomas explained that  legislation would preserve the                                                                   
traditional  use  of  the  area   by  creating  the  Stampede                                                                   
Recreation Area. Several years  ago former Governor Murkowski                                                                   
proposed  a  road  through the  area,  which  was  vehemently                                                                   
opposed  by  residents  and recreational  users.  The  Denali                                                                   
Borough  Assembly designated  the  corridor  as the  Stampede                                                                   
State  Recreational  area  with  a strong  emphasis  on  self                                                                   
determination by the residents  and users of the area for its                                                                   
protection.  The  current  use  includes  off  road  and  all                                                                   
terrain  vehicle  use,  hunting and  trapping,  dog  mushing,                                                                   
watercraft use, hiking, bicycling,  snow machining, horseback                                                                   
riding,  cross   country  skiing,   dog  sledding,   camping,                                                                   
wildlife viewing and photography.  All these activities would                                                                   
be  protected and  preserved.  Recreational  users come  from                                                                   
Fairbanks,  Denali Borough,  Anchorage,  and Matsu.  Tourists                                                                   
and adventurers  travel to  the area  from across the  globe.                                                                   
The  area  supports  several   tourism  businesses  including                                                                   
several lodges,  and road touring companies.  The legislation                                                                   
has wide support.                                                                                                               
                                                                                                                                
11:29:25 AM                                                                                                                   
                                                                                                                                
Senator  Thomas explained  that  the area  contains a  RS2477                                                                   
trail,  which  existed  before statehood  and  is  considered                                                                   
public domain.  The trail provides  access to Denali  Park by                                                                   
horseback or snow machines (in the winter).                                                                                     
                                                                                                                                
Co-Chair Stedman  noted the issue  would be addressed  in the                                                                   
future.                                                                                                                         
                                                                                                                                
11:32:43 AM    RECESSED                                                                                                       
3:21:37 PM     RECONVENED                                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 113(FIN) am(brf sup maj fld)                                                                            
                                                                                                                                
     "An  Act  making  supplemental  appropriations,  capital                                                                   
     appropriations,   and  other  appropriations;   amending                                                                   
     appropriations;  making   appropriations  to  capitalize                                                                   
     funds; and providing for an effective date."                                                                               
                                                                                                                                
3:22:07 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  noted that  HB  113  addresses the  FY  09                                                                   
supplemental.                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  MOVED  to ADOPT  Work  Draft  26-GH1005\M,                                                                   
Kane, 4/18/09. There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
TIM GRUSSENDORF,  STAFF, SENATOR LYMAN HOFFMAN,  reviewed The                                                                   
following changes to the legislation:                                                                                           
                                                                                                                                
   · Grant to the Department of Commerce Community and                                                                          
     Economic Development (DCCED) for World Trade Center                                                                        
     Alaska FY 2010 for $115.0 GF on page 13, line 13                                                                           
                                                                                                                                
   · DCCED  SE Conference  reappropriation  to SE  Conference                                                                   
     for $47.0- on page 13, line 17.                                                                                            
                                                                                                                                
   · Department  of  Corrections   reappropriation  from  the                                                                   
     Department  of Health and  Social Services (HSS)  of the                                                                   
     unexpended   and   unobligated    balance   for   secure                                                                   
     detoxification substance on page 13, line 22.                                                                              
                                                                                                                                
   · Contingent funding  for HB 172 to the  Alaska Commission                                                                   
     on Postsecondary  Education for  $60.0 on page  14, line                                                                   
     29.                                                                                                                        
                                                                                                                                
   · Wik  Road reappropriation  of  $944.4  from the  Capital                                                                   
     Income  Fund  to the  Department  of Health  and  Social                                                                   
     Services, McLaughlin Youth Center on page 15 line 30.                                                                      
                                                                                                                                
   · Contingent language  for HB 141, Interstate  Compact for                                                                   
     Juveniles of $45 on page 15, line 30.                                                                                      
                                                                                                                                
   · Contingent funding  for SB 89 for the  Territorial Guard                                                                   
     retirement of $31.3 on page 18, line 3.                                                                                    
                                                                                                                                
   · Contingent funding for SB  171, PFD deceased legislation                                                                   
    for $86.7 interagency receipts on page 18, line 31.                                                                         
                                                                                                                                
   · Delete    "International    Airport"    language    from                                                                   
     appropriation   to  Department  of  Transportation   and                                                                   
     Public Facilities on Page 22, line 27.                                                                                     
                                                                                                                                
   · Whittier   Tunnel  rock  slide   for  $800.0   from  the                                                                   
     commercial  vessel passenger  tax on  page 22,  line 23.                                                                   
     This  funding  would  be   retroactive  to  the  slide's                                                                   
     inception.                                                                                                                 
                                                                                                                                
   · Department of  Transportation and Public  Facilities for                                                                   
     $2.0  million  from  the  Capital Income  Fund  for  the                                                                   
     Newtok  road and  evacuation shelter  material, on  page                                                                   
     22, line 27.                                                                                                               
                                                                                                                                
   · Office  of the Governor  for $4.322.0  million  from the                                                                   
     Capital Income  Fund for  the development of  an instate                                                                   
     natural gas pipeline on page 28, line 12.                                                                                  
                                                                                                                                
   · Office  of   the  Governor  for  $2.7  million   from  a                                                                   
     reappropriation   from   the   Department   of   Natural                                                                   
     Resources for the development  of an instate natural gas                                                                   
     pipeline on page 28, line 15.                                                                                              
                                                                                                                                
   · Revenue  sharing  for  $60  million,  which  is  a  fund                                                                   
    transfer from the general fund on page 28, line 29.                                                                         
                                                                                                                                
   · Constitutional Budget Reserve draw to forward fund                                                                         
     education of $1,111,914,700 on page 28, line 22.                                                                           
                                                                                                                                
Mr. Grussendorf noted that there were additional technical                                                                      
changes adding contingency language in case some of the                                                                         
bills do not pass.                                                                                                              
                                                                                                                                
3:29:06 PM                                                                                                                    
                                                                                                                                
Senator Huggins Moved Amendment 1, 26-GH1005\M.1, Kane,                                                                         
4/18/09. Co-Chair Hoffman Objected for discussion. Co-Chair                                                                     
Hoffman OBJECTED for purpose of discussion.                                                                                     
                                                                                                                                
     Page 28, following line 18:                                                                                                
     Insert a new subsection to read:                                                                                           
          "(c)   For the appropriations  made in (a)  and (b)                                                                   
     of this  section, it  is the  intent of the  legislature                                                                   
     that                                                                                                                       
               (1)  the funds be used solely to plan,                                                                           
     coordinate, and facilitate  construction, ownership, and                                                                   
     management of a natural gas  pipeline serving Fairbanks,                                                                   
     the  Southcentral   region  of  the  state,   and  other                                                                   
     communities  wherever  practicable, connecting  with  or                                                                   
     enhancing   the  existing   gas  pipeline  system,   and                                                                   
     reaching to tidewater;                                                                                                     
               (2)  the funds be used for a full alternative                                                                    
     analysis of possible routes;                                                                                               
               (3)  an economically feasible in-state                                                                           
     pipeline  and  any connecting  lines  serve  industrial,                                                                   
     residential,  and  utility  customers along  the  entire                                                                   
     route,  including any  other regions  of the state  that                                                                   
     could be served at commercially feasible rates;                                                                            
               (4)  the Office of the Governor use the                                                                          
     appropriations to                                                                                                          
                    (A)  coordinate with entities that could                                                                    
          build, own, and operate the line;                                                                                     
                    (B)  assist with preparing cost                                                                             
          estimates   for  the   project  to  determine   its                                                                   
          economic feasibility and cost to consumers;                                                                           
                    (C)  apply for and obtain right-of-way                                                                      
          permits  for  the project  route,  with the  intent                                                                   
          that the  state would transfer the  permits to, and                                                                   
          receive  compensation  for  the permits  from,  the                                                                   
         entity best able to complete the project;                                                                              
                    (D)  work with other entities to promote                                                                    
          the  gas supply  and  gas purchase  contracts  that                                                                   
          would   be   required  for   the   project  to   be                                                                   
          commercially viable;                                                                                                  
               (5)  the coordination effort by the Office of                                                                    
     the Governor  use, to the  fullest extent  possible, any                                                                   
     and  all existing  work by other  state agencies  before                                                                   
     contracting  for new  reports,  research, and  analyses,                                                                   
     and that  the coordination effort  by the Office  of the                                                                   
     Governor  not expand  beyond the  scope of  coordinating                                                                   
     interests to build, own, and operate the gas line;                                                                         
               (6)  the Office of the Governor submit                                                                           
     written monthly reports to  the president of the senate,                                                                   
     the  speaker of the  house of  representatives,  and all                                                                   
     legislators,  listing all  current and future  contracts                                                                   
     executed  for development  of  an  in-state natural  gas                                                                   
     pipeline and  specifying the scope of work  and contract                                                                   
     amount, a  cumulative total  monthly of all  funds spent                                                                   
     for  development of  an in-state  natural gas  pipeline,                                                                   
     reporting  progress to  date on  the project work  plan,                                                                   
     and presenting a work plan for each subsequent month."                                                                     
                                                                                                                                
Senator  Huggins reviewed  the amendment,  which adds  intent                                                                   
language.  He  observed  that  the  accountability  would  be                                                                   
through  the  Office  of the  Governor,  which  would  report                                                                   
monthly.                                                                                                                        
                                                                                                                                
Co-Chair  Hoffman  WITHDREW  his OBJECTION.  There  being  NO                                                                   
OBJECTION, Amendment 1 was adopted.                                                                                             
                                                                                                                                
Co-Chair Stedman  MOVED to report  SCS CSHB 113 (FIN)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB 113 (FIN)  was REPORTED out of Committee  with a "do                                                                   
pass" recommendation.                                                                                                           
                                                                                                                                
3:31:53 PM     AT EASE                                                                                                        
3:32:30 PM     RECONVENED                                                                                                     
                                                                                                                                
Co-Chair  Stedman and  other members  expressed  appreciation                                                                   
for the staff and committee's work and support.                                                                                 
                                                                                                                                
Co-Chair  Stedman  MOVED  to allow  the  Legislative  Finance                                                                   
Division to make technical changes  as needed. There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
3:34:44 PM                                                                                                                    
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:34 PM.                                                                                           
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SFC Work Draft for HB 113 Version M.pdf SFIN 4/19/2009 11:00:00 AM
HB 113
HB 113 SFC Amendment 1 M.1.pdf SFIN 4/19/2009 11:00:00 AM
HB 113