Legislature(1999 - 2000)
04/13/2000 12:08 PM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 13, 2000
6:08 PM
TAPES
SFC-00 # 87, Side A and Side B
CALL TO ORDER
Co-Chair John Torgerson convened the meeting at
approximately 6:08 PM
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Pete Kelly, Senator Randy
Phillips and Senator Gary Wilken were present when the
meeting convened. Senator Leman, Senator Donley, Senator
Green arrived later.
Also Attending: REPRESENTATIVE ANDREW HALCRO; KEN BISCHOFF,
Director, Division of Administrative Services, Department
of Public Safety; ANNALEE MCCONNELL, Director, Office of
Management and Budget, Office of the Governor; CONOR
SULLIVAN, staff to Representative Cowdery; DARWIN PETERSON,
Aide to Co-Chair Torgerson and the Senate Finance
Committee; JONATHAN LACK, Staff to Representative Halcro;
DENISE HENDERSON, staff to Representative Pete Kott; BILL
LAWRENCE, staff to Representative Carl Morgan
Attending via Teleconference: From Anchorage: BLAIR MCCUNE,
Deputy Director, Public Defenders Agency, Department of
Administration; WILEY BROOKS; ERIC DYRUD, Real Estate
Broker, Member, Anchorage Board of Realtors Legislative
Committee, and Alaska Board of Realtors Legislative
Committee; JEROME PAPE; DAVID GARRISON, Associate Broker
SUMMARY INFORMATION
SB 192-APPPROPRIATIONS; CAPITAL BUDGET/REAPPROPS
Amendments were considered and the bill moved from
Committee.
SB 261-PREVENTION OF NEEDLE & SHARPS INJURIES
This bill was scheduled but not heard.
HB 180-DRUGS WHERE MINORS ARE PRESENT
The Committee heard from the sponsor and the Public
Defenders Agency. The bill moved from Committee.
HB 272-MUNICIPAL TAX: LOW INCOME HOUSING
The Committee heard testimony from the sponsor and members
of the public. A committee substitute was considered but
not adopted. The bill was held.
HB 288-CHILDREN WITNESSING DOMESTIC VIOLENCE
The Committee heard from the sponsor. An amendment was
adopted and the bill moved from Committee.
HB 437-REINSTATEMENT OF NATIVE CORPORATIONS
The Committee heard from the sponsor. The bill moved from
Committee.
SENATE BILL NO. 192
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
The Committee resumed consideration of amendments to the CS
SB 192 1-GS2043\H.
DEPARTMENT OF ADMINISTRATION
ADM #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 2, line 26
Insert:
Alaska Public
Broadcasting Grants
(AS 44.21.268)
KAKM Construction 300,000 300,000
of Digital Television
Facilities (ED 10-25)
Explanation:
Addition of $300,000 in general funds
Co-Chair Parnell moved for adoption and told the Committee
that the U.S. Congress and the Federal Communications
Commission (FCC) have mandated that all television stations
convert to digital television or lose their license to
broadcast. He noted that the deadline for public stations
is the year 2003, and is 2002 for commercial stations. He
stated that KAKM is collaborating on this conversion effort
with local commercial stations, thus necessitating the
earlier completion. By sharing a single communications
tower, he explained, each station would save approximately
$1 million. Without this funding, he warned, KAKM cannot
partner with the other stations and subsequently incur the
additional expense. He pointed out additional savings this
amendment provides, as the $300,000 appropriation secures
$600,000 federal funds, plus another $600,000 from other
sources.
There was no objection and the amendment was ADOPTED.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEC #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 9, following line 29
Insert:
Municipal Grants
(AS37.05.315)
City of Fairbanks 405,000 405,000
Parking Garage
Page 9, line 30
Delete:
Municipal Water, 19,599,650 19,599,650
Sewer & Solid
Insert:
Municipal Water, 19,194,650 19,194,650
Sewer & Solid
Page 10, lines 5-7
Delete:
Fairbanks 405,000
Slaterville
Storm Water
Improvement
Phase I
(ED 29-34)
Explanation:
This amendment moves $405,000 of AHFC Dividend funding
from the Fairbanks Slatterville Storm Water
Improvement Phase I project within the Department of
Environmental Conservation to the Department of
Administration for payment of a municipal grant to the
City of Fairbanks for construction of a parking
garage.
This amendment was NOT OFFERED.
AT EASE 6:11 PM / 6:12 PM
DEPARTMENT OF ADMINISTRATION (cont.)
ADM #4: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 2, lines 13-16
Delete:
Information Service 3,141,000 3,141,000
Fund Equipment
Replacement (ED 99)
Land Mobile Radio 1,200,000 850,000 350,000
Migration (ED 99)
Insert:
Information Service 4,341,000 4,341,000
Fund
Equipment 3,141,000
Replacement
(ED 99)
Land Mobile 1,200,000
Radio
Migration
(ED 99)
Explanation:
This amendment changes the funding source for $850,000
of the Land Mobile Radio Migration project from
general funds to Information Service Funds (ISF).
The Department of Administration, Information
Technology Group (ITG) staffs and manages a large part
of the technology and communications activity for all
departments. The funding source for ITG's personnel,
equipment, etc. comes from "charge-backs" that all
departments pay into the ISF, which is a general fund
internal service fund (a subfund of the general fund).
ITG sets out support charges and depreciation
schedules for its personnel and equipment to determine
how much each department will pay for the services it
receives. Because the departments co-mingle fund
sources in their payments for ITG services, the
Department of Administration estimates that the ISF
may be made up from as much as 60 percent federal
money (this is an estimate because there has never
been a financial analysis of the fed's contribution.)
The Land Mobile Radio Migration request comes from the
Department of Administration, the same department that
manages the ISF. The department agrees with the
sponsor that the radio project qualifies as a type of
service that the ISF could pay for under the statutes.
Funding sources by project:
Equipment Replacement $3,141,000 ISF
Land Mobile Radio 850,000 ISF
Migration 350,000 Federal Funds
Co-Chair Parnell moved for adoption.
Co-Chair Torgerson spoke to the funding source changes made
in this amendment noting that the federal funding is not
jeopardized.
Without objection, the amendment was ADOPTED.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
M&VA #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 14, following line 29
Insert:
Grants to Named Recipients
(AS.37.05.316)
Anchorage Economic 200,000 200,000
Development
Corporation:
Feasibility study
for a Department of
Defense Global
Logistics /Forward
Mobility Hub in
Anchorage (ED 10-25)
Explanation:
This amendment provides for an independent
consultant's analysis of the feasibility of
establishing a military logistics center in Anchorage.
This amendment was NOT OFFERED to defer to M&VA #3.
M&VA #2: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 14, following line 29
Insert:
Grants to Named Recipients
(AS.37.05.316)
Military Global 200,000 200,000
Logistics/Forward
Mobility Hub
Economic Development
Opportunity Study
(ED 10-25)
This amendment was NOT OFFERED to defer to M&VA #3.
M&VA #3: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 14, following line 29
Insert:
Grants to Named Recipients
(AS.37.05.316)
Anchorage Economic 150,000 150,000
Development
Corporation:
Feasibility study
for a Department of
Defense Global
Logistics /Forward
Mobility Hub in
Anchorage (ED 10-25)
Insert a new bill section to read:
Sec.__. AIR SHOW. The sum of $10,000 is
appropriated from the general fund to the Department
of Military and Veterans Affairs for payment as a
grant under AS 37.05.316 to the Air Force Association
for fuel at the Elmendorf Air Force Base in June,
2000, for the 80th anniversary of the Third Wing.
Explanation:
This amendment provides for an independent
consultant's analysis of the feasibility of
establishing a military logistics center in Anchorage
and grants to the Air Force Association funds to pay
fuel costs for the air show at the Elmendorf Air Force
Base in June 2000.
Senator Adams moved for adoption on behalf of Senator
Leman.
Co-Chair Torgerson spoke to the amendment, listing the
amounts appropriated to the two items.
Senator Phillips objected.
A roll call was taken on the motion.
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Donley,
Senator Leman, Senator Adams, Co-Chair Parnell and Co-Chair
Torgerson
OPPOSED: Senator Phillips
ABSENT: Senator Green
The motion PASSED (7-1-1)
The amendment was ADOPTED.
DEPARTMENT OF PUBLIC SAFETY
DPS #2: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 16, line 20
Delete:
Aircraft & Vessel 838,780 838,780
Repair &
Maintenance
(ED 99)
Insert:
Aircraft & Vessel 1,121,600 1,121,600
Repair &
Maintenance
(ED 99)
Senator Adams spoke to the importance of funding for these
deferred maintenance needs and moved for adoption.
Without objection, Senator Adams WITHDREW his motion and
the amendment was NOT OFFERED to defer to DPS #3.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
DOT #3: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 25, line 3
Delete:
Anchorage 34,305,265 2,646,265 31,659,000
Metropolitan Area
Transportation
Study
Insert:
Anchorage 40,005,265 3,159,265 36,846,000
Metropolitan Area
Transportation
Study
Page 25, following line 6
Insert:
Anchorage: 5,700,000
C Street
Construction-
Phase #3
Explanation:
Includes funding for the construction of C Street
Phase 3, which was deleted in the Governor's amendment
to SB 192.
Senator Donley noted this amendment would be NOT OFFERED
due to action taken on DOT #2 at the previous hearing.
DOT #4: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 18, following line 26
Insert:
Anchorage: Willow 110,000 110,000
Crest Elementary
School Pedestrian
Overpass
Improvements
Explanation:
Includes design funding to improve access to existing
pedestrian overpass in compliance with ADA
requirements.
Senator Donley moved for adoption.
Without debate or objection the amendment was ADOPTED.
LANGUAGE SECTION
LANG #3: This amendment makes the following changes to the
committee substitute.
Page 60, following line 5
Insert a new bill section to read:
Sec. 12. AIR SHOW. The sum of $10,000 is
appropriated from the general fund to the Department
of Military and Veterans Affairs for payment as a
grant under AS 37.05.316 to the Air Force Association
for fuel for an air show at the Elmendorf Air Force
Base in June 2000, for the 80th anniversary of the
Third Wing.
The amendment also provides an immediate effective date for
the new bill section.
This amendment was NOT OFFERED.
AT EASE 6:18 PM / 6:19 PM
MUNICIPAL / UNINCORPORATED MUNICIPALITIES GRANTS
MUNI & UNICORP #1: This amendment makes the following
changes to the committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 39, lines 24-26
Delete:
Aleknagik Foxville 25,019 25,019
Roadway Extension
& Seaplane Base
(ED 39)
Page 39, line 27
Delete:
Aleknagik North Shore 25,369 25,369
Sludge Lagoon &
Landfill Relocation
& Road (ED 39)
Insert:
Aleknagik North Shore 25,019 25,019
Sludge Lagoon &
Landfill Relocation
& Road (ED 39)
Page 43, line 9
Delete:
Fairbanks North Star 126,817 126,817
Borough Animal
Shelter - Remodel &
Expansion of Kennels
(ED 29-34)
Insert:
Fairbanks North Star 125,982 125,982
Borough Animal
Shelter - Remodel &
Expansion of Kennels
(ED 29-34)
Page 49, following line 21
Insert:
Scammon Bay Sewage 26,738 26,738
Lines & Manhole
Repairs
Page 50, following line 21
Insert:
Teller Cable TV 25,000 25,000
Buyout, Phase II/
Expansion
Page 59, following line 28
Insert:
Upper Kalskag 25,000 25,000
Community Restoration
& Graveyard Restoration
Page 50, following line 32
Insert:
Wasilla Iditapark 107,487 107,487
Site Improvements
& Utilities
Page 51, following line 16
Insert:
Beaver Community 25,000 25,000
Restoration &
Graveyard Restoration
Senator Adams moved for adoption and explained the
amendment makes technical language and dollar amount
changes to the committee substitute.
Co-Chair Torgerson explained the reason this amendment was
not taken up during the first hearing was to first verify
the information with the Division of Legislative Finance.
He stated that this practice is standard in the budget
process. He expressed that he had no objection to the
amendment.
Senator P. Kelly asked the effect of this amendment on
general fund.
Co-Chair Torgerson responded the impact is "net zero".
The amendment was ADOPTED without objection.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (cont.)
DOT #7: This amendment adds $764,500 general funds and
$7,645,000 federal receipts to the Capital Transportation
Projects (CTP) BRU and allocated to the following
components.
Akiachak Sanitation Road Resurfacing $1,510,000
Bethel: Chief Eddie Hoffman Hwy 2,010,000
Separated Pathway
Bethel: Tundra Ridge Rd. Improvements 775,000
Kotzebue: Ted Stevens Way Reconstruction 3,350,000
Senator Adams stated that this amendment would be NOT
OFFERED due to action taken on DOT #2 at the previous
hearing.
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
C&ED #4: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 3, line 16
Delete:
State Historic 50,000 50,000
Preservation Office
(ED 99)
Page 3, following line 16
Insert:
Grants to Named Recipients
State Historic 50,000 50,000
Preservation Office
(ED 99)
Explanation:
Moves a named grant for the State Historic
Preservation Office from the Department of Community
and Economic Development to the Department of Natural
Resources. No funding changes.
Co-Chair Parnell moved for adoption.
Co-Chair Torgerson explained this amendment has a
negligible effect on the general fund because the same
amount of funds is transferred from one department to
another.
Senator Phillips asked if this were an operating or capital
expense.
Co-Chair Torgerson responded that this is a capital budget
item. He explained that this is money for the films and
pictures that are in the historical preservation office
that need preservation.
There was no objection and the amendment was ADOPTED.
C&ED #5: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 3, line 9
Delete:
U.S. Forest Service 200,000 200,000
Mini-Grants
Insert:
U.S. Forest Service 700,000 700,000
Mini-Grants
Explanation:
The Department of Community and Economic Development
recently received notification that an additional
$500,000 in federal funding has been authorized by the
Denali Commission for this program. There are no match
requirements. The objective of this grant program is
to strengthen rural communities by helping capitalize
on their potential to diversify and expand their
economies through the use of natural resources and by
developing new economic activity in non-forest related
industries. For the past several years the department
has received $200,000 from the USDA to address the
long-term vitality of rural areas and focuses on
enhancing the overall quality of rural life primarily
through natural resource based solutions. This
additional authorization will bring the mini-grant
program to $700,000 in federal receipts.
Senator Adams moved for adoption.
Co-Chair Torgerson objected for an explanation.
Senator Adams read the explanation statement.
Co-Chair Torgerson pointed out that the funding travels
directly from the Denali Commission to the department.
Co-Chair Torgerson removed his objection.
The amendment was ADOPTED without objection.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (cont.)
E&ED #2: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, following line 19
Insert:
Grants to Named Recipients
(AS 37.05.316)
Alaska Aviation 50,000 50,000
Heritage Museum
Explanation:
This amendment provides for funding for the operation
of the museum and gift shop during the fiscal year
ending June 30, 2001.
Co-Chair Parnell moved for adoption.
Co-Chair Torgerson stated this amendment is a one-time
appropriation.
Senator Phillips objected.
A roll call was taken on the motion.
IN FAVOR: Senator Leman, Senator Adams, Senator Wilken,
Senator P. Kelly, Senator Green, Senator Donley, Co-Chair
Parnell and Co-Chair Torgerson
OPPOSED: Senator Phillips
The motion PASSED (8-1)
The amendment was ADOPTED.
LANGUAGE SECTION (cont.)
LANG #9: This amendment inserts a new bill section in the
committee substitute to read as follows.
Sec A. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT
GRANT PROGRAM. The amount received by the National
Petroleum Reserve - Alaska special revenue fund (AS
37.05.530) under 42 U.S.C. 6508 during the fiscal year
ending June 30, 2001, is appropriated to the
Department of Community and Economic Development for
the fiscal year ending June 30, 2001, for grants under
the National Petroleum Reserve - Alaska impact
program.
Explanation:
AS 37.05.530 establishes the National Petroleum
Reserve - Alaska (NPRA) special revenue fund and
impact grant program. Federal funds through the Bureau
of Land Management (BLM) are dispersed to the State
under 42 U.S.C. 6508. The Department of Community and
Economic Development administers the grant program.
Municipalities impacted by NPRA oil and gas
development may apply for and be eligible to receive
grants to alleviate the impacts. BLM recently held a
NPRA lease sale and current estimates are that the
State should receive annually approximately $2.0
million for the next ten years. This figure is subject
to change, especially if there are additional lease
sales held.
Senator Adams moved for adoption. He noted this amendment
is standard language contained in all budgets. He stated
the intent to divide the funds between the permanent fund,
the school public trust fund and the Power Cost
Equalization (PCE) fund.
Co-Chair Torgerson noted this amendment appropriates funds
for the following year and is an annual process.
There was no objection and the amendment was ADOPTED.
LANG #4 as Amended: This amendment makes the following
changes to the committee substitute.
Insert a new bill section to read:
Sec. A. MATANUSKA-SUSITNA BOROUGH AND ALASKA
RAILROAD CORPORATION. (a) The unexpended and
unobligated balance of the appropriation made by sec.
145(a), ch. 208, SLA 1990, as amended by sec. 55, ch.
100, SLA 1997 (Alaska Railroad Corporation -
$9,000,000), is reappropriated
(1) one-half to the Department of Community
and Economic Development for payment as a grant under
AS 37.05.3 15 to the Matanuska-Susitna Borough for
economic development in the borough, including port
development and development of coal resources within
the borough; and
(2) one-half to the Alaska Railroad
Corporation for the purchase of locomotives, rolling
stock, and associated equipment and rail line
improvements in the Matanuska-Susitna Borough, to
facilitate the development of coal deposits in the
Matanuska-Susitna Valley.
(b) The unexpended and unobligated balance of the
appropriation made by sec. 145(b), ch. 208, SLA 1990,
added by sec. 56, ch. 100, SLA 1997, as amended by
sec. 40(b), ch. 2, FSSLA 1999 (Alaska Railroad
Corporation), is reappropriated
(1) one-half to the Department of Community
and Economic Development for payment as a grant under
AS 37.05.3 15 to the Matanuska-Susitna Borough for
economic development in the borough, including port
development and development of coal resources within
the borough; and
(2) one-half to the Alaska Railroad
Corporation for the purchase of locomotives, rolling
stock, and associated equipment and rail line
improvements in the Matanuska-Susitna Borough, to
facilitate the development of coal deposits in the
Matanuska-Susitna Valley.
Sec. B. The appropriations made by sec. A(a)(2)
and A(b)(2) of this Act are for capital projects and
lapse under AS 37.25.020.
[This amendment was amended in a previous hearing and
held.]
Senator Green moved for adoption.
Senator Adams objected.
Senator Adams spoke to his objection repeating his earlier
argument that the money belongs to the entire state rather
than specified communities located along the Railbelt.
A roll call was taken on the motion.
IN FAVOR: Senator P. Kelly, Senator Green, Senator
Phillips, Senator Donley, Senator Leman, Senator Wilken,
Co-Chair Parnell and Co-Chair Torgerson
OPPOSED: Senator Adams
The motion PASSED (8-1)
The amended amendment was ADOPTED.
Co-Chair Parnell moved to allow the Division of Legal and
Research Services and the Division of Legislative Finance
to make technical adjustments to the committee substitute
as necessary when incorporating the adopted amendments.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (cont.)
DOT #9: This amendment was adopted in a previous hearing.
Senator Donley noted a technical correction to the language
of the amendment. "Shop" should read "Site" in the two
places it appears in the amendment. The corrected language
reads as follows.
Page 14, lines 25-29
Delete:
It is the intent of the legislature that the
department shares the use of the Tudor Road
Maintenance Site with the Municipality of Anchorage.
Insert:
Contingent upon the department entering into a
Memorandum of Agreement with the Municipality of
Anchorage to share the use of the Tudor Road
Maintenance Site, $200,000 is appropriated for the
costs related to the transfer of this facility from
the Department of Military and Veterans Affairs to the
Department of Transportation and Public Facilities.
AT EASE 6:30 PM / 6:34 PM
DEPARTMENT OF PUBLIC SAFETY (cont.)
DPS #3: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 16, line 20
Delete:
Aircraft & Vessel 838,780 838,700
Repair & Maintenance
(ED 99)
Insert:
Aircraft & Vessel 1,063,780 1,063,780
Repair & Maintenance
(ED 99)
Page 16, line 30
Delete:
Southeast Emergency 275,000 275,000 50,000
Communications
Upgrade (ED 3-4)
Insert:
Southeast Emergency 50,000
Communications
Upgrade (ED 3-4)
Senator Adams requested the department speak to this
amendment and moved for its adoption. He noted that the
Southeast Emergency Communications Upgrade is a new project
and that the allocated funds are not enough to fully fund
it. Therefore, he said he would rather the money be used
for the Aircraft and Vessel Repair and Maintenance
component.
Co-Chair Torgerson objected.
KEN BISCHOFF, Director, Division of Administrative
Services, Department of Public Safety, stated that this
amendment is similar to DPS #1A, which reduced the
appropriations to the communications project. He explained
that this amendment transfers the remaining general funds
for this project.
Senator Donley remembered the balance of the appropriation,
after the adoption of DPS #1A was more $200,000.
Mr. Bischoff responded that there had been an additional
$50,000 in other funds appropriated from the Oil Spill
Response Fund. However, he was not comfortable that the
vessel and aircraft projects would qualify for those funds.
Senator Donley asserted that this amendment does not
conform to the changes made under DPS #1A, which left a
general fund balance of $171,500 in the communication's
project.
Senator Adams clarified that this amendment transfers that
$171,500.
ANNALEE MCCONNELL, Director, Office of Management and
Budget, Office of the Governor restated that the
appropriation, after the reduction taken in DPS #1A, is not
sufficient to undertake the communication's project. Rather
than have a seriously underfunded project, she said, it is
preferable to use the money to fund the aircraft and vessel
repair and maintenance component.
Senator Wilken noted that the reduced amount allows for the
purchase of the communication's equipment but not enough to
pay for the installation.
Co-Chair Torgerson maintained his objection.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Adams and Senator P. Kelly
OPPOSED: Senator Phillips, Senator Donley, Senator Leman,
Senator Wilken, Co-Chair Parnell and Co-Chair Torgerson
The motion FAILED (3-6)
The amendment FAILED to be adopted.
Co-Chair Parnell offered a motion to report from Committee
CS SB 192, 1-GS2043\H, as amended.
Co-Chair Torgerson thanked those involved in the process of
the FY 01 Capital Budget.
There was no objection and the bill was MOVED from
Committee.
AT EASE 6:45 PM / 7:00 PM
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 180(JUD)
"An Act relating to the possession, manufacture, use,
display, or delivery of controlled substances while
children are present."
This was the second hearing for this bill in the Senate
Finance Committee.
CONOR SULLIVAN, staff to Representative Cowdery, reminded
the Committee that this bill prohibits adults from
knowingly allowing or encouraging, a minor from entering or
remaining in the immediate presence of the manufacture,
use, delivery, or display of drugs. He expressed that the
intent is to send a strong message that "drugs and kids
don't mix."
BLAIR MCCUNE, Deputy Director, Public Defenders Agency,
Department of Administration, testified via teleconference
from Anchorage about his concern that people do not always
have much choice over where they live. He gave an example
of a spouse who begins using drugs, and the position the
other spouse is placed in, which under this legislation,
would require immediate relocation to avoid criminal
charges.
Senator Adams offered a motion to report from Committee CS
HB 180 (JUD) with accompanying zero fiscal notes from the
Department of Law and the Alaska Court System, accompanying
indeterminable fiscal note from the Department of
Administration, Public Defender's Agency and new
indeterminable fiscal note from the Department of
Corrections.
Without objection the bill MOVED from Committee.
HOUSE BILL NO. 272
"An Act relating to the tax assessment by a home rule
or general law municipality of housing that qualifies
for the low-income housing credit under the Internal
Revenue Code; and providing for an effective date."
This was the second hearing for this bill in the Senate
Finance Committee.
WILEY BROOKS, testified via teleconference from Anchorage
about his written remarks in opposition to the bill. He
restated earlier oral testimony regarding his disapproval
of "special interest legislation."
ERIC DYRUD, Real Estate Broker, Member, Anchorage Board of
Realtors Legislative Committee, and Alaska Board of
Realtors Legislative Committee, testified via
teleconference from Anchorage about the uniform opposition
to the bill from the organizations he represents. He
suggested this legislation would create an unfunded mandate
and a revenue reduction to municipalities. He thought this
would increase property taxes for other property owners and
be unfair to other rental property owners. He talked about
the detriment to the real estate…
JEROME PAPE testified via teleconference from Anchorage
that he thought the bill created favoritism amongst already
subsidized programs. He noted that the low-income renter
would not be benefited from this. He had been in the
business for many years and had never found a shortage of
low income housing for good tenants.
DAVID GARRISON, Associate Broker, owner of 34 units,
testified via teleconference from Anchorage saying that the
individuals in these projects know the tax situation going
into the business and that to change the structure for them
would be unfair to others. He also said that reducing taxes
for all rental property owners would not be right either,
since everyone should pay for the services they receive.
Co-Chair Torgerson noted those present to answer questions.
DARWIN PETERSON, Aide to Co-Chair Torgerson and the Senate
Finance Committee compared a proposed committee substitute,
1-LS1148\T, to the committee substitute before the
Committee, version "I".
Section 1(d)(2) - the governing power of a
municipality is given the responsibility to determine
the full and true value of the property to be included
in the low-income housing credit, as opposed to the
assessor. The governing body has an unlimited amount
of time to make that determination.
Section 1(d)(2)(B) - once that determination is made,
the assessment of the parcel of property will remain
in effect as long as the bond is outstanding.
Co-Chair Torgerson further clarified that this bill gives
more of a local option. He pointed out that a municipality
must take a positive action before this legislation can
take effect in their community.
Senator Leman asked if there was a maximum time for bonded
indebtedness under the federal program. He suggested the
Committee might want to limit the time.
Mr. Peterson did not know the time requirements for the
federal program.
Co-Chair Torgerson relayed that the question had been asked
previously, and that it was determined there are different
time frames for the various programs. He noted that the
standard timeframe is ten years.
Senator Donley asked if once a local government took action
to enact this legislation, if the adopted assessments apply
to all property in this category.
Mr. Peterson showed how the language in Section 1(d)(2)(A)
gives the municipality the ability to apply the assessment
on a parcel by parcel basis.
REPRESENTATIVE ANDREW HALCRO explained Section 1(d)(2)
grandfathers the existing properties already on the tax
roles. He stressed that some of the testimony heard was
actually incorrect.
Tape: SFC - 00 #87, Side B 7:18 PM
Representative Halcro continued that these properties were
built with the understanding that tax would be accessed at
what their deed-restricted rents would be. However, he
shared that the new tax assessor in Anchorage began
assessing these properties at fair market value. As a
result, he said, owners are unable to raise the rent enough
to meet the higher property appraisal.
Senator Donley asked for clarification of the grandfather
clause.
Co-Chair Torgerson stated that the process still must be
enacted through municipal ordinance and is not
automatically grandfathered.
Representative Halcro pointed out the bill language
stipulating that the action must be taken "on or after" the
time assessment, which automatically qualifies properties
already constructed. At that time, he said, the
municipalities can decide whether or not to include them.
Senator Donley thought the language was incomplete if this
were the actual intent. As he understood, the assessment
would apply to those properties that are submitted after
the effective date.
Representative Halcro clarified that the governing body has
the ability to grandfather.
Co-Chair Torgerson stressed again that the assessment
requires a positive action and that it was not a mandate.
He added that the Anchorage assembly supports this
legislation.
Representative Halcro noted the Anchorage assembly had
passed a resolution in favor of the bill.
Co-Chair Torgerson allowed that the language was confusing
and that he had needed assistance from the drafters to
understand it.
Senator Adams understood the language to dictate that any
party presently in the program is grandfathered in on the
effective date of the bill. He continued that anyone new
coming into the program, would require a determination by
local option.
Senator Donley stressed that the language does not state
that, but only addresses those that would qualify on or
after the effective date.
Co-Chair Torgerson said his intent was to have a local
option apply to the legislation. He stated that if the
members were confused with the language, he would request
the Division of Legal and Research Services redraft the
bill to make it more understandable.
Senator Wilken asked if once a municipality opted for the
assessment exemption program, if it has the ability to
change back for new projects.
Representative Halcro responded that the municipalities do
not have that option because, when these properties are
approved for construction of a low-incoming housing tax
credit property, the properties are build with the
assumption that they will only be taxed according to what
rent can be charged.
Senator Wilken and Representative Halcro further discussed
the matter.
Senator Donley stated that the language is confusing and
that he did not have the same interpretation regarding
existing property.
Representative Halcro clarified that the existing low-
income properties already are a part of the federal program
and that the language in subsection (2) stipulates that
those properties in the federal program qualify for the
program proposed in the bill.
Senator Donley noted the phrase "first qualifies… on or
after the effective date" on page 2, lines 6 and 7 of the
committee substitute. He emphasized "first" and understood
this to mean that previously qualified properties would not
be included in this legislation.
Co-Chair Torgerson countered the intent of "first
qualifies" to mean that before becoming eligible for the
assessment exemption, a property must first qualify for the
federal low-income housing credit.
JONATHAN LACK, Staff to Representative Halcro added that
subsection (2) provides that only after a property has
obtained a federal low-income housing credit, may a
municipality make a determination on whether to grant an
assessment exemption.
Senator Phillips commented that the bottom line was that
the legislature would pass the buck to the local
governments to make the decision. He spoke
Co-Chair Torgerson ordered the bill HELD in Committee.
SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE
FOR HOUSE BILL NO. 288(JUD)
"An Act relating to the creation of an aggravating
factor for the commission of domestic violence in the
physical presence or hearing of a child."
This was the first hearing for this bill in the Senate
Finance Committee.
DENISE HENDERSON, staff to Representative Pete Kott
testified that this bill adds a new section to AS 12.55.18.
She noted that presently, committing domestic violence in
the presence of a child is not, and cannot be, included as
a determining factor in the sentencing of a perpetrator.
She stressed that this legislation would protect the
special venerability of children and would become a major
factor in determining the severity of the crime and the
resulting sentence thereof.
Amendment #1: This amendment inserts "living" following
"offense," on page 1 line 14 and deletes "household" on
page 2 line 1 and inserts, "residence of the victim, the
residence of the perpetrator, or the residence where the
crime involving domestic violence occurred." The amended
language reads as follows.
(C) specified in AS 11.41 that is a crime
involving domestic violence and was committed in the
physical presence or hearing of a child under 16 years
of age, who was, at the time of the offense, living
within the residence of the victim, the residence of
the perpetrator, or the residence where the crime
involving domestic violence occurred.
Senator Phillips moved for adoption on behalf of the bill's
sponsor.
Co-Chair Torgerson objected for an explanation.
Senator Phillips explained that the Senate Judiciary
Committee felt that the term "household" is too broad.
Senator Phillips offered a motion to report from Committee,
SCS CS HB 288 (JUD) as amended with accompanying zero
fiscal notes from the Alaska Court System, Department of
Corrections, Department of Law, Department of Public Safety
and indeterminable fiscal note from the Department of
Administration, Public Defender's Agency.
There was no objection and the bill was MOVED from
Committee.
HOUSE BILL NO. 437
"An Act relating to the reinstatement of Native
corporations; and providing for an effective date."
This was the first hearing for this bill in the Senate
Finance Committee.
BILL LAWRENCE, staff to Representative Carl Morgan,
testified that this legislation provides an opportunity for
several dissolved Native village corporations to address
viable business matters to become viable entities. He
explained that this bill extends, to December 31, 2000, the
date that Native village corporations may be reinstated in
accordance with state law.
Mr. Lawrence shared that the Ohogamiut Traditional Council,
whose corporation had been involuntarily dissolved, asked
Representative Morgan for assistance in establishing a
method that the Council could use in order to file annual
business reports. These reports, Mr. Lawrence explained
would allow the Council to pay incurred penalties, and
resume operations as a viable corporation.
Co-Chair Torgerson asked how many times this opportunity
has been granted to the corporations.
Mr. Lawrence knew of one other time, but did not know the
total number of opportunities.
Co-Chair Torgerson remembered the exemption granted a few
years ago and wanted to know if the Native corporations
would actually participate.
Mr. Lawrence responded that the Ohogamiut Traditional
Council has indicated that they would pay the back taxes
owed and penalties, if the opportunity is granted.
Co-Chair Torgerson asked what would happen if the council
does not use this opportunity.
Mr. Lawrence responded that they "would probably wish they
had."
Co-Chair Torgerson stated that he had seen this opportunity
granted three times since he took office. He expressed that
he did not oppose the legislation.
Senator Leman offered a motion to report from Committee, HB
437 1-LS1564\A with accompanying zero fiscal note from the
Department of Community and Economic Development.
Without objection the bill MOVED from Committee.
ADJOURNED
Senator Torgerson adjourned the meeting at 7:41 PM.
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