Legislature(2009 - 2010)SENATE FINANCE 532

04/16/2010 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 309 GAS EXPLORATION\DEVELOPMENT TAX CREDIT TELECONFERENCED
Moved CSSB 309(FIN) Out of Committee
+= HB 168 TRAUMA CARE CENTERS/FUND TELECONFERENCED
Moved SCS CSHB 168(FIN) Out of Committee
+= HCR 22 ALASKA NORTHERN WATERS TASK FORCE TELECONFERENCED
Moved CSHCR 22(FIN) Out of Committee
+= HB 294 USE, REGULATION, AND OPERATION OF BOATS TELECONFERENCED
Moved SCS CSHB 294(FIN) Out of Committee
+= HB 342 EXTEND BOARD OF REAL ESTATE APPRAISERS TELECONFERENCED
Moved HB 342 Out of Committee
+= HB 376 EXTEND BD OF PSYCHOLOGIST & PSYCH. ASSOC. TELECONFERENCED
Moved HB 376 Out of Committee
+ HB 73 FIREFIGHTER/EMT LICENSE PLATES TELECONFERENCED
Heard & Held
+ HB 190 CHILDREN'S TRUST TELECONFERENCED
Heard & Held
+ HB 416 PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS TELECONFERENCED
Heard & Held
+ HB 126 EXTEND/RESUME STATE CUSTODY OF CHILDREN TELECONFERENCED
Bill Postponed To Afternoon Meeting
+ HB 184 DEBT AUTHORIZATION FOR UNIVERSITY TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 16, 2010                                                                                            
                         9:15 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:15:41 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:15 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Darwin  Peterson,  Staff,  Co-Chair Stedman;  Senator  Lesil                                                                    
McGuire,  Sponsor;  Senator   John  Coghill,  Sponsor;  Ward                                                                    
Hurlburt, Chief Medical Officer,  Division of Public Health,                                                                    
Department  of  Health  and Social  Services;  James  Ellis,                                                                    
Staff,  Representative  Mark Neuman;  Representative  Tammie                                                                    
Wilson;  Liz  Clement,  Staff,  Representative  Bob  Herron;                                                                    
Representative  Bob   Lynn,  Sponsor;   Representative  Anna                                                                    
Fairclough,  Sponsor;   Panu  Lucier,   Executive  Director,                                                                    
Friends of  the Alaska Children's Trust  & Alaska Children's                                                                    
Trust;  Conrad Jackson,  Staff,  Representative Kurt  Olson;                                                                    
Representative Les  Gara, Sponsor; Allison  Elgee, Assistant                                                                    
Commissioner,  Department  of  Health and  Social  Services;                                                                    
Mike Lesman,  Office of  Children's Services,  Department of                                                                    
Health and Social Services                                                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Susie Koklich, Alaska State Fire Fighters Association,                                                                          
Valdez; Whitney Brewster, Department of Motor Vehicles,                                                                         
Department of Administration                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 309    GAS EXPLORATION\DEVELOPMENT TAX CREDIT                                                                                
                                                                                                                                
          CSSB 309 (FIN) was REPORTED out of Committee with                                                                     
          a "do pass" recommendation, with indeterminate                                                                        
          FN 1 REV, and with a new zero fiscal note by the                                                                      
          Department of Natural Resources.                                                                                      
                                                                                                                                
HB 168    TRAUMA CARE CENTERS/FUND                                                                                              
                                                                                                                                
          SCS HB 168 (FIN) was REPORTED out of Committee                                                                        
          with a "do pass" recommendation and with                                                                              
          previously published zero FN 2 REV and a new zero                                                                     
          fiscal note by the Department of Health and                                                                           
          Social Services.                                                                                                      
                                                                                                                                
HCR 22    ALASKA NORTHERN WATERS TASK FORCE                                                                                     
                                                                                                                                
          CS HCR 22 (FIN) was REPORTED out of Committee                                                                         
          with a "do pass" recommendation and with                                                                              
          previously published FN 2 LEG.                                                                                        
                                                                                                                                
HB 294    USE, REGULATION, AND OPERATION OF BOATS                                                                               
                                                                                                                                
          CSHB 294 (FIN) was REPORTED out of Committee with                                                                     
          a "do pass" recommendation and with previously                                                                        
          published FN 1 DNR.                                                                                                   
                                                                                                                                
HB 342    EXTEND BOARD OF REAL ESTATE APPRAISERS                                                                                
                                                                                                                                
          HB 342 was REPORTED out of Committee with a "do                                                                       
          pass" recommendation and with previously                                                                              
          published FN 1 CED.                                                                                                   
                                                                                                                                
HB 376    EXTEND BD OF PSYCHOLOGIST & PSYCH. ASSOC.                                                                             
                                                                                                                                
          HB 376 was REPORTED out of Committee with a "do                                                                       
          pass" recommendation and with previously                                                                              
          published FN 1 CED.                                                                                                   
                                                                                                                                
HB 73     FIREFIGHTER/EMT LICENSE PLATES                                                                                        
                                                                                                                                
          HB 73 was heard and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 190    CHILDREN'S TRUST                                                                                                      
                                                                                                                                
          HB 190 was heard and HELD in Committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 416    PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS                                                                             
                                                                                                                                
          HB 416 was heard and HELD in Committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 126    EXTEND/RESUME STATE CUSTODY OF CHILDREN                                                                               
                                                                                                                                
          HB 126 was postponed until the afternoon meeting.                                                                     
                                                                                                                                
HB 184    DEBT AUTHORIZATION FOR UNIVERSITY                                                                                     
                                                                                                                                
          HB 184 was scheduled but not heard.                                                                                   
                                                                                                                                
9:16:00 AM                                                                                                                    
                                                                                                                                
SENATE BILL NO. 309                                                                                                           
                                                                                                                                
     "An Act amending and extending the exploration and                                                                         
     development incentive tax credit under the Alaska Net                                                                      
     Income Tax Act for operators and working interest                                                                          
     owners directly engaged in the exploration for and                                                                         
     development of gas from a lease or property in the                                                                         
     state; providing for an effective date by amending the                                                                     
     effective date for sec. 2, ch. 61, SLA 2003; and                                                                           
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair  Stedman said  it  was the  second  hearing on  the                                                                    
bill.                                                                                                                           
                                                                                                                                
9:18:12 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED  to ADOPT the CS for  SB 309, Version                                                                    
S, as the working document.                                                                                                     
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
DARWIN  PETERSON,  STAFF,  CO-CHAIR STEDMAN,  explained  the                                                                    
changes  in  the  new  CS.  In this  version  of  the  bill,                                                                    
Sections 8  and 9  were removed  from the  previous version.                                                                    
Those  were the  sections  that allowed  the  credits to  be                                                                    
applied in one year. That results  in a return to the status                                                                    
quo, which is that 50 percent  of the credits can be applied                                                                    
for in the first year and  the remainder in the second year.                                                                    
The next change is found on  page 3, Section 3, lines 12 and                                                                    
13.  The previous  version allowed  the taxpayer  to take  a                                                                    
credit up  to 100  percent of  the taxpayer's  liability, as                                                                    
opposed to the status quo of  50 percent. This CS splits the                                                                    
difference and  the taxpayer  can take up  to 75  percent of                                                                    
their liability                                                                                                                 
                                                                                                                                
Mr. Peterson  related that  the third change  is on  page 5,                                                                    
Section 8, and  is an amendment by Senator  Huggins that the                                                                    
committee adopted  previously. The amendment dealt  with not                                                                    
incurring penalties on underpayments  or overpayments due to                                                                    
the retroactivity in  the legislation. Page 6,  Section 9 is                                                                    
a renumbering of the section.                                                                                                   
                                                                                                                                
Mr.  Peterson explained  that  page 7,  Section  10, is  the                                                                    
section that deals  with jackup rigs. Mr.  Peterson read the                                                                    
new language from the bill.                                                                                                     
                                                                                                                                
     The  first three  unaffiliated  persons  that drill  an                                                                    
     offshore   explanation   well   for  the   purpose   of                                                                    
     discovering oil  or gas in  Cook Inlet  that penetrates                                                                    
     at least 3,000 feet below  the base of the tertiary age                                                                    
     strata  and evaluates  a prospect  in the  pre-tertiary                                                                    
     zone using  a jackup  drill rig,  are eligible  for the                                                                    
     credit under this subsection.                                                                                              
                                                                                                                                
9:20:38 AM                                                                                                                    
                                                                                                                                
Mr.  Peterson turned  to Section  10,  page 7,  line 25,  to                                                                    
describe  a  date change  to  March  31,  2010 so  that  the                                                                    
credits would apply to the  entire construction season. Page                                                                    
8,  Section  13,  is   a  continuing  conforming  amendment.                                                                    
Sections  14  and 15  are  also  a  part of  the  conforming                                                                    
amendment. Section 16 is a  new sunset date for the credits,                                                                    
since  that  date is  now  2016.  Sections  17 and  18  also                                                                    
reflect the conforming amendment.                                                                                               
                                                                                                                                
Senator Ellis asked  if it was standard  practice to require                                                                    
a "sharing  of the data"  when the state provides  money. He                                                                    
wondered if the  CS addressed that issue.  Mr. Peterson said                                                                    
he  did not  receive  any  orders to  make  changes to  that                                                                    
policy.                                                                                                                         
                                                                                                                                
9:22:23 AM                                                                                                                    
                                                                                                                                
SENATOR  LESIL MCGUIRE,  SPONSOR,  addressed Senator  Ellis'                                                                    
question. She reported  that the CS was left  alone in order                                                                    
for the  credits to function.  She emphasized that  this was                                                                    
an  exclusive credit  and disallowed  companies from  taking                                                                    
other credits.                                                                                                                  
                                                                                                                                
Senator  Ellis asked  for the  rationale for  the state  not                                                                    
requiring data sharing in this bill.                                                                                            
                                                                                                                                
Senator McGuire reported that she  met with the companies to                                                                    
discuss what would make the  credit work. The companies felt                                                                    
that  if  the  data  was  made public,  they  would  not  be                                                                    
competitive.                                                                                                                    
                                                                                                                                
Senator Ellis offered to pursue his concerns later.                                                                             
                                                                                                                                
9:25:03 AM                                                                                                                    
                                                                                                                                
Senator Thomas  noted in  a previous  CS there  was language                                                                    
that allowed  companies to  take credits  in the  same year,                                                                    
rather than for two years.                                                                                                      
                                                                                                                                
Co-Chair  Stedman explained  that  current statutes  require                                                                    
capital credits to be taken  over two years, 50 percent each                                                                    
year. It was to the state's advantage to do so.                                                                                 
                                                                                                                                
Senator  Thomas  commented  that  it works  well  for  large                                                                    
explorers. He suggested a situation  where a smaller company                                                                    
would  run  into problems  applying  credits  in the  second                                                                    
year. He voiced concern about that.                                                                                             
                                                                                                                                
9:27:05 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman WITHDREW his  OBJECTION to adopting the CS.                                                                    
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Senator  McGuire related  a conversation  with a  Cook Inlet                                                                    
company who stated that the  scenario would be worse without                                                                    
the secrecy of data.                                                                                                            
                                                                                                                                
Co-Chair  Hoffman MOVED  to  report CSSB  309  (FIN) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  309 (FIN)  was REPORTED  out of  Committee with  a "do                                                                    
pass" recommendation, with indeterminate  FN 1 REV, and with                                                                    
a  new  zero  fiscal  note  by  the  Department  of  Natural                                                                    
Resources.                                                                                                                      
                                                                                                                                
9:28:48 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 168(FIN)                                                                                                
                                                                                                                                
     "An   Act   relating   to   state   certification   and                                                                    
     designation of trauma centers; creating the trauma                                                                         
     care fund to offset trauma care provided at certified                                                                      
     and designated trauma centers; and providing for an                                                                        
     effective date."                                                                                                           
                                                                                                                                
Co-Chair Stedman  noted that  it was  the second  hearing on                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT  the SCS for CSHB 168 (FIN),                                                                    
Version T, as the working draft before the committee.                                                                           
                                                                                                                                
Co-Chair Stedman OBJECTED. He  noted the CS incorporates two                                                                    
amendments, one  from Senator Hoffman  and one  from Senator                                                                    
Ellis.                                                                                                                          
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  objection.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman noted three zero fiscal notes.                                                                                 
                                                                                                                                
SENATOR  JOHN COGHILL,  SPONSOR,  explained  the changes  in                                                                    
Version T.  Section 1, line  7, broadens the wording  to say                                                                    
"any certified trauma center in  the state" in order to open                                                                    
up  participation  to  a  broader  scope  of  participation.                                                                    
Section 2, lines 13 and  14, puts accountability language in                                                                    
the bill.  It says that  the trauma center must  "achieve or                                                                    
maintain  the  highest  appropriate  level  of  trauma  care                                                                    
designation". The other sponsor  of the bill, Representative                                                                    
Herron agrees with these changes.                                                                                               
                                                                                                                                
9:31:34 AM                                                                                                                    
                                                                                                                                
WARD  HURLBURT, CHIEF  MEDICAL OFFICER,  DIVISION OF  PUBLIC                                                                    
HEALTH, DEPARTMENT  OF HEALTH AND SOCIAL  SERVICES, spoke of                                                                    
the  need  for a  Medical  Care  System  and a  Trauma  Care                                                                    
Center. He related  that the system is  found throughout the                                                                    
Lower  48 and  is  needed  in Alaska.  The  bill will  allow                                                                    
hospitals to meet trauma care standards.                                                                                        
                                                                                                                                
Co-Chair Stedman asked if the  department supports the bill.                                                                    
Mr. Hurlburt said  it did.  Co-Chair Stedman  asked if there                                                                    
were any  proposed changes  to the  bill. Mr.  Hurlburt said                                                                    
there were none.                                                                                                                
                                                                                                                                
9:34:24 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED  to report SCS CSHB 168  (FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS HB  168 (FIN) was REPORTED  out of Committee with  a "do                                                                    
pass" recommendation  and with previously published  zero FN                                                                    
2  REV and  a  new zero  fiscal note  by  the Department  of                                                                    
Health and Social Services.                                                                                                     
                                                                                                                                
9:35:09 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE CONCURRENT RESOLUTION NO. 22(FIN)                                                                                
                                                                                                                                
     Establishing and relating to the Alaska Northern                                                                           
     Waters Task Force.                                                                                                         
                                                                                                                                
Co-Chair Stedman reported that it  was the second hearing on                                                                    
the  resolution.   He  noted  one   fiscal  note   from  the                                                                    
Legislature for $150,000 in general  funds to cover the cost                                                                    
of travel and expert witnesses for the task force.                                                                              
                                                                                                                                
9:35:48 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  CS HCR  22 (FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CS HCR  22 (FIN) was  REPORTED out  of Committee with  a "do                                                                    
pass"  recommendation and  with  previously  published FN  2                                                                    
LEG.                                                                                                                            
                                                                                                                                
9:36:36 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 294(FIN)                                                                                                
                                                                                                                                
     "An Act amending the termination date of certain                                                                           
     statutes relating to the use, operation, and                                                                               
     regulation of boats, a uniform state waterway marking                                                                      
     system, and civil liability for boat owners by                                                                             
     extending the termination date by two years; 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."                                                                                                           
                                                                                                                                
Senator Egan MOVED to ADOPT Amendment 1:                                                                                        
                                                                                                                                
     Page 1, line 3                                                                                                             
     Delete "two"                                                                                                               
     Insert "seven"                                                                                                             
     Page 1, line 11                                                                                                            
     Delete "2013"                                                                                                              
     Insert "2018"                                                                                                              
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
Senator Egan  explained that the amendment  would extend the                                                                    
sunset  date four  years. He  added  that it  was a  popular                                                                    
program,  especially in  coastal  communities.  He said  the                                                                    
sponsor has no problems with this change.                                                                                       
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:38:00 AM                                                                                                                    
                                                                                                                                
JAMES ELLIS, STAFF, REPRESENTATIVE  MARK NEUMAN, agreed with                                                                    
the amendment.                                                                                                                  
                                                                                                                                
Co-Chair Stedman noted one fiscal note.                                                                                         
                                                                                                                                
Co-Chair Hoffman MOVED  to report SCS CSHB 294  (FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  294 (FIN)  was REPORTED  out of  Committee with  a "do                                                                    
pass"  recommendation and  with  previously  published FN  1                                                                    
DNR.                                                                                                                            
                                                                                                                                
9:39:25 AM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 342                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Certified Real Estate Appraisers; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
Co-Chair  Stedman noted  it was  the second  hearing on  the                                                                    
bill. The bill has one fiscal note.                                                                                             
                                                                                                                                
REPRESENTATIVE   TAMMIE   WILSON,   SPONSOR,   thanked   the                                                                    
committee.                                                                                                                      
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  342 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  342 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation and with previously published FN 1 CED.                                                                          
                                                                                                                                
HOUSE BILL NO. 376                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Psychologist and Psychological Associate Examiners;                                                                        
     and providing for an effective date."                                                                                      
                                                                                                                                
9:40:43 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman said  it  was the  second  hearing on  the                                                                    
bill. He noted the fiscal note.                                                                                                 
                                                                                                                                
LIZ CLEMENT,  STAFF, REPRESENTATIVE  BOB HERRON,  offered to                                                                    
answer questions.                                                                                                               
                                                                                                                                
Co-Chair Hoffman  MOVED to  report HB  376 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  376 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation and with previously published FN 1 CED.                                                                          
                                                                                                                                
9:42:14 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 73(FIN)                                                                                                 
                                                                                                                                
     "An Act relating to special fire fighter and emergency                                                                     
     medical service provider license plates; and providing                                                                     
     for an effective date."                                                                                                    
                                                                                                                                
Co-Chair Stedman said it was the first hearing of the bill.                                                                     
                                                                                                                                
Co-Chair Hoffman MOVED  to ADOPT the SCS for  CSHB 73 (FIN),                                                                    
Version T, as the working document.                                                                                             
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
Mr. Peterson  explained the two  changes in the new  SCS. In                                                                    
the  previous version  of  the  bill, commemorative  license                                                                    
plates for  firefighters and EMT's were  available to anyone                                                                    
for the  price of $100.  That option has been  removed. Only                                                                    
active or  retired firefighters and  EMT's are  eligible for                                                                    
those license plates.  The second change is on  page 2, line                                                                    
13, and provides  for license plates which  are available to                                                                    
fraternal organizations  with a  national chapter.  The cost                                                                    
of  those  plates is  $50  for  the  initial plate  and  $35                                                                    
biannually.                                                                                                                     
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:44:26 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  noted  one  zero  fiscal  note  from  the                                                                    
Department    of   Commerce,    Community,   and    Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
REPRESENTATIVE BOB  LYNN, SPONSOR,  introduced the  bill. He                                                                    
said that HB 73 provides  for special recognition plates for                                                                    
firefighters and  EMS personnel.  He stated support  for the                                                                    
new SCS.                                                                                                                        
                                                                                                                                
9:45:34 AM                                                                                                                    
                                                                                                                                
Senator Olson  asked for the  reason behind the  new license                                                                    
plates. Representative  Lynn explained  that the  purpose is                                                                    
for public safety and for recognition of these professions.                                                                     
                                                                                                                                
SUSIE  KOKLICH,  ALASKA  STATE  FIRE  FIGHTERS  ASSOCIATION,                                                                    
VALDEZ  (via  teleconference),  spoke   in  support  of  the                                                                    
legislation.  She  noted   that  it  was  also   a  tool  in                                                                    
recruitment, in addition to recognition.                                                                                        
                                                                                                                                
9:49:05 AM                                                                                                                    
                                                                                                                                
WHITNEY BREWSTER,  DEPARTMENT OF MOTOR  VEHICLES, DEPARTMENT                                                                    
OF  ADMINISTRATION (via  teleconference),  commented on  the                                                                    
zero fiscal note  the department has submitted.  The cost of                                                                    
the  plates to  the  state is  approximately  $10 each.  The                                                                    
remaining  fees   collected  go   into  the   general  fund;                                                                    
therefore,  there  is  a zero  fiscal  note.  She  requested                                                                    
clarification  of  Version  T regarding  the  definition  of                                                                    
fraternal organization  and the  renewal fee, which  used to                                                                    
be   for  commemorative   plates.  She   also  needed   more                                                                    
information about  the renewal fee  on line 13.  She pointed                                                                    
out that  there is  not typically a  renewal fee  on license                                                                    
plates.                                                                                                                         
                                                                                                                                
Co-Chair Stedman suggested they  could work with the sponsor                                                                    
to tighten up the language.                                                                                                     
                                                                                                                                
Ms. Brewster  said the DMV  does not object to  the concepts                                                                    
in the bill.                                                                                                                    
                                                                                                                                
Representative Lynn  noted that the  fraternal organizations                                                                    
referred to in  the bill are not issue  advocacy groups such                                                                    
as Ms. Brewster mentioned.                                                                                                      
                                                                                                                                
HB  73  was   heard  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:53:26 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 190(FIN)                                                                                                
                                                                                                                                
     "An Act amending the Alaska children's trust and                                                                           
     relating to the trust; establishing a children's trust                                                                     
     grant account; relating to birth certificates and                                                                          
     certificates of marriage; relating to special request                                                                      
     Alaska children's trust license plates; and amending                                                                       
     the State Procurement Code to exempt the Alaska                                                                            
     children's trust and the Alaska Children's Trust                                                                           
     Board."                                                                                                                    
                                                                                                                                
Co-Chair Stedman said it was  the first hearing on the bill.                                                                    
He  noted three  zero fiscal  notes from  the Department  of                                                                    
Health and  Social Services, the Department  of Revenue, and                                                                    
the   Department  of   Commerce,  Community,   and  Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH,  SPONSOR, explained that the                                                                    
purpose  of the  bill  is  to help  prevent  child abuse  in                                                                    
Alaska. She  related that  almost two  years ago  the Alaska                                                                    
Children's Trust  (ACT), the ACT  Board, and Friends  of the                                                                    
Alaska   Children's   Trust    brought   forth   issues   to                                                                    
legislators.  The problem  was  developing a  public/private                                                                    
partnership that  works and drawing donors  in to contribute                                                                    
to  a fund  that the  legislature capitalized  several years                                                                    
ago  with a  $6 million  appropriation. The  Trust currently                                                                    
has difficulties and restrictions  that allow a grantee only                                                                    
to receive 100  percent funding in the  first year, followed                                                                    
by  a  50  percent  reduction,  followed  by  a  25  percent                                                                    
reduction.  If the  Trust finds  someone doing  a good  job,                                                                    
they are  unable to function  because they have  to withdraw                                                                    
funds per state statute.                                                                                                        
                                                                                                                                
Representative  Fairclough continued  to say  that the  bill                                                                    
attempts to provide a public/private  partnership. It sets a                                                                    
funding mechanism based on a  percent of market value of the                                                                    
Trust. It would  take a 5 percent rolling  average and place                                                                    
it  into an  established grant  account. The  fund would  be                                                                    
managed by  the Department of  Revenue and exempt  the Trust                                                                    
from  the  procurement  process,   make  grant  writing  and                                                                    
processing  more efficient,  and  make  the government  more                                                                    
accountable to private sector donations.                                                                                        
                                                                                                                                
9:56:36 AM                                                                                                                    
                                                                                                                                
PANU  LUCIER,  EXECUTIVE  DIRECTOR, FRIENDS  OF  THE  ALASKA                                                                    
CHILDREN'S TRUST  & ALASKA  CHILDREN'S TRUST,  urged support                                                                    
of the  bill. She shared  her background working  with child                                                                    
abuse prevention  and the frustration with  current statute.                                                                    
She shared the benefits of the bill.                                                                                            
                                                                                                                                
HB  190  was  heard  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:58:18 AM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 416                                                                                                            
                                                                                                                                
     "An Act adopting and relating to the Uniform Prudent                                                                       
     Management of Institutional Funds Act; relating to the                                                                     
     investment of money for charitable purposes by                                                                             
     institutions, including governmental institutions; and                                                                     
     relating to the University of Alaska."                                                                                     
                                                                                                                                
Co-Chair Stedman said it was  the first hearing on the bill.                                                                    
He noted two  zero fiscal notes, one from  the Department of                                                                    
Law and one from the University.                                                                                                
                                                                                                                                
CONRAD  JACKSON, STAFF,  REPRESENTATIVE KURT  OLSON, updated                                                                    
the committee  on the  bill which would  allow the  state to                                                                    
adopt the Uniform Prudent  Management of Institutional Funds                                                                    
Act  (UPMIFA),  which  builds  on almost  35  years  of  the                                                                    
institutional  fund management  program.  Almost all  states                                                                    
have adopted  UPMIFA; only  six states  have not.  He termed                                                                    
the bill  a definite benefit  to Alaska. He called  the bill                                                                    
"default  legislation".  If  a  fund is  governed  by  other                                                                    
provisions  such  as  a  donor  agreement,  if  there  is  a                                                                    
conflict, UPMIFA takes a back seat.                                                                                             
                                                                                                                                
HB  416  was  heard  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:01:39 AM                                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 126(FIN)                                                                                                
                                                                                                                                
     "An Act relating to extensions and resumptions of                                                                          
     state custody of children; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
Co-Chair Stedman said it was the first hearing on the bill.                                                                     
                                                                                                                                
REPRESENTATIVE  LES GARA,  SPONSOR, explained  the bill  has                                                                    
two  purposes.  The  first  provision   is  to  implement  a                                                                    
national priority to extend foster  care to age 21 for youth                                                                    
who need the help and  stability of an adult. That provision                                                                    
is found  on page 1,  line 14, to page  2, line 2.  There is                                                                    
some  matching federal  money available.  Studies show  that                                                                    
troubled  youth do  better with  extended foster  care. Data                                                                    
from the Midwest supports this concept.                                                                                         
                                                                                                                                
Representative Gara  discussed the  second provision  in the                                                                    
bill,  which  is   to  correct  an  inequity   in  the  law.                                                                    
Currently, if  a child opts  out of  foster care at  age 16,                                                                    
that  decision  is irrevocable.  Under  this  bill, that  is                                                                    
corrected to allow  children to come back  under foster care                                                                    
if  conditions warrant  and  Office  of Children's  Services                                                                    
(OCS) approves.                                                                                                                 
                                                                                                                                
Representative  Gara  shared how  money  would  be saved  by                                                                    
delaying  the  effective  date   of  the  bill.  A  one-time                                                                    
computer cost  of $200,000  would be saved.  In each  of the                                                                    
next four  years, the  cost is  roughly $470,000  in general                                                                    
funds.                                                                                                                          
                                                                                                                                
Co-Chair  Stedman   noted  three   fiscal  notes   from  the                                                                    
Department of  Health and Social Services;  one for $130,700                                                                    
in  general funds  and  $73,500 in  federal  match; one  for                                                                    
$38,000 in  general funds and  $2,200 in federal  match; and                                                                    
one for  $186,000 in  general funds  and $37,000  in federal                                                                    
match.                                                                                                                          
                                                                                                                                
10:05:39 AM                                                                                                                   
                                                                                                                                
Senator Huggins  asked how many  children would  be affected                                                                    
by this legislation.                                                                                                            
                                                                                                                                
ALLISON ELGEE, ASSISTANT  COMMISSIONER, DEPARTMENT OF HEALTH                                                                    
AND  SOCIAL   SERVICES,  estimated  35  children   would  be                                                                    
affected.                                                                                                                       
                                                                                                                                
MIKE LESMAN,  OFFICE OF  CHILDREN'S SERVICES,  DEPARTMENT OF                                                                    
HEALTH AND SOCIAL SERVICES, introduced himself.                                                                                 
                                                                                                                                
HB 126 was postponed until the afternoon meeting.                                                                               
                                                                                                                                
HOUSE BILL NO. 184                                                                                                            
                                                                                                                                
     "An Act relating to the debt authorization of the                                                                          
     University of Alaska."                                                                                                     
                                                                                                                                
HB 184 was scheduled but not heard.                                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:06 AM.                                                                                          

Document Name Date/Time Subjects
HB 73 Proposed SCS Fin Version T 041610.pdf SFIN 4/16/2010 9:00:00 AM
HB 73
HB 294 Amendment 1 Egan 041610SFIN.pdf SFIN 4/16/2010 9:00:00 AM
HB 294
SB 309 Proposed SCS SFIN Version S 041610.pdf SFIN 4/16/2010 9:00:00 AM
SB 309