Legislature(1993 - 1994)
05/08/1994 09:50 PM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
MAY 8, 1994
9:50 p.m.
TAPES
SFC-94, #91, Side 2 (550-000)
SFC-94, #93, Side 1 (000-550)
CALL TO ORDER
Senator Drue Pearce, Co-chair, reconvened the meeting at
approximately 9:50 p.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Kelly,
Sharp, and Rieger were present. Senators Kerttula and Jacko
were absent from the meeting.
ALSO ATTENDING: Senator Fred Zharoff; Gerald L. Gallagher,
Director, Division of Mining, Department of Natural
Resources; Raga Elim, Legislative Liaison, Office of the
Governor; Philip Volland, attorney, Anchorage; Tom Waldo,
attorney; Harry A. Noah, Commissioner, Department of Natural
Resources; Tom Koester, attorney; David Walker, attorney;
Mike Greany, Director, Legislative Finance Division;
representative of the media, and aides to committee members
and other members of the legislature.
SUMMARY INFORMATION
SB 191: An Act relating to municipal property
tax limitations; and providing for an
effective date.
Scheduled but not heard.
CSHB 201(FIN) am: An Act relating to the mental health
land trust and the mental health land
trust litigation, Weiss v. State,
4FA-82-2208 Civil, and amending and
repealing other laws relating to mental
health institutions, programs, and
services that are affected by ch. 66,
SLA 1991; and providing for an effective
date.
SCSCSHB 201(FIN) "Z" version was
ADOPTED. Philip Volland, attorney,
Anchorage; Tom Waldo, attorney; David
Walker, attorney; and Tom Koester,
attorney; spoke to the bill. SCSCSHB
201(FIN) was REPORTED out of committee
with a "do pass," and fiscal notes for
the following departments: Law - $200.0,
DH&SS (302) - $150.0, DH&SS (951) -
$5.2, Administration - $45.9, Natural
Resources - $728.9.
CSHB 371(FIN) am: An Act making appropriations to
capitalize the mental health trust fund
from the balance of the mental health
trust income account on June 30, 1995,
mental health trust income of the
Department of Natural Resources in the
general fund, and earnings reserve
account; making an appropriation to the
mental health trust income account from
the net income earned by the mental
health trust fund; and providing for an
effective date.
SCSCSHB 371(FIN) version "U" was
ADOPTED. SCSCSHB 371(FIN) was REPORTED
out of committee with a "do pass." The
committee returned to the meeting after
adjourning to ADOPT amendment 1 adding
language mistakenly omitted and already
contained in SCSCSHB 201(FIN). SCSCSHB
371(FIN) as amended was REPORTED out of
committee with a "do pass."
CSHB 447(FIN): An Act establishing the Afognak Island
State Park.
Senator Fred Zharoff, testified in
support of HB 447 and proposed a Letter
of Intent. The Letter of Intent was
ADOPTED. Gerald L. Gallagher, Director,
Division of Mining, Department of
Natural Resources, and Raga Elim,
Legislative Liaison, Office of the
Governor also spoke to the bill.
Senator Rieger proposed amendment 1.
Amendment 1 was ADOPTED. SCSCSHB
447(FIN) was REPORTED out of committee
with individual recommendations and zero
fiscal notes for the Departments of
Public Safety, Law, and Natural
Resources.
CS FOR HOUSE BILL NO. 447(FIN):
An Act establishing the Afognak Island State Park.
CO-CHAIR DRUE PEARCE announced that CSHB 447(FIN) was before
the committee. She invited Senator Zharoff to join the
members at the table to speak to his Letter of Intent.
SENATOR KELLY said that on page 6, line 29, the word "not"
had been left out. Discussion followed by Co-chair Frank
and Pearce, Senator Rieger, Kelly and Sharp regarding the
wording of this section in the original bill and its effect.
Senator Rieger moved for adoption of amendment 1 adding
"not" on page 6, line 29.
GERALD L. GALLAGHER, Director, Division of Mining,
Department of Natural Resources, and RAGA ELIM, Legislative
Liaison, Office of the Governor, offered information on how
the Department of Natural Resources could acquire land. Mr.
Elim explained that the wording in the House version meant
there would have to be a willing buyer and a willing seller.
SENATOR RIEGER proposed amendment 2 adding the word "not"
and removing the word "except" on page 6, lines 29 and 30.
Amendment 2 was ADOPTED
End SFC-93 #91, Side 2
Begin SFC-93 #93, Side 1
In answer to Senator Sharp, Mr. Gallagher said that funding
had been requested from the Exxon Valdez Trustees Council to
operate the state park. Co-chair Pearce agreed that the
Council had indicated their willingness to run the park.
Senator Zharoff also said that this park dovetailed with the
Kodiak State Park system, so Afognak Island State Park could
be managed with Chugiak State Park. He went on to explain
his Letter of Intent which addressed these concerns.
Senator Rieger MOVED for the adoption of the Letter of
Intent. Hearing no objection, it was ADOPTED.
SENATOR SHARP voiced his objection to the bill. He said he
was surrounded by parks and did not need them.
Senator Rieger MOVED for passage of SCSCSHB 447(FIN). It
FAILED on a vote of 3 to 2 (Senators Jacko, Kelly and Sharp
were opposed. Co-chair Pearce and Senator Rieger were in
favor.)
CO-CHAIR FRANK rejoined the meeting and Senator Rieger
offered his motion again for passage of SCSCSHB 447(FIN).
The motion carried on a vote of 4 to 2 (Co-chairs Pearce,
Frank, and Senators Rieger and Jacko were in favor.
Senators Kelly and Sharp were opposed.) SCSCSHB 447(FIN) as
amended was REPORTED out of committee with individual
recommendations (Co-chair Pearce and Senator Rieger signed
"do pass," Senator Sharp signed "do not pass," and Co-chair
Frank, Senators Kelly and Jacko signed "no recommendation"),
and three zero fiscal notes for the Departments of Public
Safety, Law, and Natural Resources.
CS FOR HOUSE BILL NO. 201(FIN) am:
An Act relating to the mental health land trust and the
mental health land trust litigation, Weiss v. State,
4FA-82-2208 Civil, and amending and repealing other
laws relating to mental health institutions, programs,
and services that are affected by ch. 66, SLA 1991; and
providing for an effective date.
Co-chair Pearce announced that SCSCSHB 201(FIN) version "Z"
was before the committee. Senator Kelly MOVED for adoption
of SCSCSHB 201(FIN) version "Z". No objection being heard,
it was ADOPTED.
Senator Rieger said the first change from the last draft
that the committee saw was on page 15 which said that the
administrative expenses of the new Mental Health Trust
Authority were made subject to AS 37.07 (Executive Budget
Act) meaning that the legislature would appropriate that
money. The second change on page 19, lines 12-15, said that
the seven members would be confirmed by the legislature.
Senator Kelly, speaking to the second change, said that when
the Authority was first formed in 1991 it was an advisory
authority. Now it had become the umbrella that would run
the Mental Health Fund so it was felt that it should have
more public scrutiny.
PHILLIP VOLLAND, attorney, from Anchorage, urged the
committee to move HB 201. He said the legislation addressed
a number of concerns that prevented this issue from becoming
solved. He felt it was measurable and fair - an exchange of
land that took into account the various interests that were
effected by the land exchange, both from the resource and
environment community. It did put resolution on a short
time frame but he saw that favorable since it would force
work toward joint settlement.
TOM WALDO, attorney for Public Interest Interveners,
coalition for five environmental groups, two sport fishing
organizations, and the Susitna Valley Organization for
tourism and recreation, urged the committee to pass HB 201.
He said his coalition had opposed chapter 66 and worked
toward a new settlement that had broader support and would
better serve the public interest. He said HB 201
represented that work and felt it was a reasonable
compromise.
In answer to Senator Sharp, Mr. Waldo said there was intent
to create a million acre trust to generate revenues for the
mental health program. That was left entirely to the
discretion of the legislature on how that management was to
be established.
DAVID WALKER, attorney, representing Vern Weiss and others
similarly situated, as well as the Mental Health Association
(represented by Jim Godstein but unable to participate
today), presented the committee with resolution #002-94 by
the Mental Health Association (copy of file, Attachment A).
He said he had been involved in this for years and had
concerns about HB 201. He also believed it contained all
the elements needed for a settlement, but may not achieve
it. He felt there were some mean-spirited provisions in the
bill.
Senator Kelly was of the opinion that the elements in HB 201
agreed with Resolution #002-94 by the Mental Health
Association in Alaska. Mr. Walker pointed out the
Association's concern was with the management element in HB
201.
In answer to Senator Sharp, referring to the word "initial"
on page 5, line 30, Commissioner Noah said that additional
revenue would go into the Fund from the lands.
TOM KOESTER, attorney, representing the State of Alaska in
the Weiss litigation, explained that there were provisions
in Title 13 that relate to trust administration. Under the
provisions of Title 13, certain revenues from land, for
example, the sale of land, proceeds of that sale, must be
preserved. If the land was leased, the income could be
spent for programs. Those rules would apply to the
allocation of revenues from mental health trust lands. He
said it was standard trust administration.
In answer to Co-chair Frank, Mr. Koester agreed that would
happen without appropriation. In answer to another question
by Co-chair Frank, Senator Kelly said that of September 15,
a full report of all contracts would be given to the
legislature.
Mr. Koester said that the recommendations that the Trust
Authority gave to the legislature as to what it should
appropriate, included a report that would make clear what
the total package ought to look like. Senator Kelly
concluded that the legislature would just have to wait and
see how it would all work out. Senator Sharp stated he did
not like the word "initial." Senator Rieger said the word
"initial" occurs only in the findings and purpose section.
Senator Kelly MOVED for passage of SCSCSHB 201(FIN) from
committee with individual recommendations. Hearing no
objection, the bill was REPORTED out of committee with a "do
pass" (Co-chair Frank, Senators Rieger, Jacko, and Kelly
signed "do pass," and Co-chair Pearce and Senator Sharp
signed "no recommendation"), and fiscal notes for the
Department of Law - $200.0, the Department of Health &
Social Services, #302 - $150.0 and #951 - $5.2, the
Department of Administration - $45.9, and the Department of
Natural Resources - $728.9.
CS FOR HOUSE BILL NO. 371(FIN) am:
An Act making appropriations to capitalize the mental
health trust fund from the balance of the mental health
trust income account on June 30, 1995, mental health
trust income of the Department of Natural Resources in
the general fund, and earnings reserve account; making
an appropriation to the mental health trust income
account from the net income earned by the mental health
trust fund; and providing for an effective date.
Co-chair Pearce announced that a copy of SCR 23 would go
with SCSCSHB 371(FIN). This version required a title change
because it pulled money from the Budget Reserve Account.
There was an indication by the minority that it would
support the use of the Constitutional Reserve. She
announced that SCSCSHB 371(FIN) was before the committee
which changed funding sources. The House version used the
Earnings Reserve Fund from the Permanent Fund.
Senator Rieger MOVED for adoption of SCSCSHB 371(FIN)
version "U". Hearing no objection, it was ADOPTED.
In answer to Senator Sharp, Commissioner Noah said that the
45 day extension on page 2, line 26, was the only extension
possible without the legislative process.
Senator Kelly MOVED for passage of SCSCSHB 371(FIN) from
committee with individuals recommendations. No objection
having been raised, SCSCSHB 371(FIN) was REPORTED out of
committee with a "do pass."
Adjourned at 10:30pm
Reconvened at 10:42pm
Co-chair Pearce reconvened the meeting and announced that
SCSCSHB 371(FIN) needed to come back before the committee.
Senator Rieger MOVED that the committee rescind their action
in reporting out SCSCSHB 371(FIN). Hearing no objection, IT
WAS SO ORDERED.
Mr. Koester said that in House Finance, two changes were
made to the condition that makes the incentives either
become effective or go away relating to the December 15
date. One change was to allow the Governor to extend the
December 15th deadline by up to 45 days. That was in both
HB 201 and the HB 371. The second change made was that no
appeal be taken on one of the drop dead conditions. Mr.
Koester proposed amendment 1 that already appeared in HB
201. Amendment 1 said, if an appeal was taken, but the
Supreme Court resolved the appeal by December 15th, and
dismissed and affirmed the dismissal of the lawsuit, then
the incentives would take effect. Senator Rieger confirmed
that the December 15th deadline would hold regardless. Mr.
Koester agreed.
Co-chair Frank MOVED for adoption of amendment 1. Hearing
no objection, amendment 1 was ADOPTED to be incorporated
into the SCSCS HB 371(FIN).
Senator Rieger MOVED for passage of SCSCS HB 371(FIN).
Hearing no objection, the bill, as amended, was REPORTED out
of committee with a "do pass" (Co-chair Pearce, Senators
Rieger, Jacko, and Sharp signed "do pass." Co-chair Frank
and Senator Kerttula signed "no recommendation").
SCHEDULED BUT NOT HEARD:
SENATE BILL NO. 191:
An Act relating to municipal property tax limitations;
and providing for an effective date.
ADJOURNMENT
The meeting was adjourned at approximately 10:45 p.m.
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