Legislature(2003 - 2004)
05/09/2004 12:10 PM Senate FIN
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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
May 09, 2004
12:10 PM
TAPES
SFC-04 # 113, Side A
SFC 04 # 113, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 12:10
PM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Lyman Hoffman
Senator Donny Olson
Senator Ben Stevens
Also Attending: TOMAS BOUTIN, Deputy Commissioner, Department of
Revenue; JAMES ARMSTRONG, Staff to Representative Bill Williams;
SUE STANCLIFF, Staff to Representative Pete Kott; CHERYLYNN WRIGHT,
Staff to Representative Mike Chenault; SARA NIELSEN, Staff to
Representative Ralph Samuels; JON BITTNER, Staff to Representative
Cheryll Heinze; CRAIG TILLERY, Chief Assistant Attorney, General-
Statewide Section Supervisor, Environmental Section, Department of
Law
Attending via Teleconference: From Offnet Sites: AL STORY,
Lieutenant and Director of Staff, Alaska State Troopers; SHARON
BARTON, Director, Permanent Fund Dividend Division, Department of
Revenue
SUMMARY INFORMATION
HB 422-BUDGET RESERVE FUND INVESTMENT
The Committee heard from the bill's sponsor and the Department of
Revenue. The bill reported from Committee.
HCR 32-AK INFO INFRASTRUCTURE POLICY TASK FORCE
The Committee heard from the sponsor and reported a committee
substitute from Committee.
HB 275-ANIMALS AND CRUELTY TO ANIMALS
The Committee heard from the sponsor, the Alaska State Troopers,
and reported the bill from Committee.
HB 534-MAKE OFFICE OF VICTIMS RIGHTS PERMANENT
The Committee heard from the sponsor and reported the bill from
Committee.
HB 536-PFUND APPLICATION DEADLINES: MILITARY
The Committee heard from the sponsor and the Department of Revenue.
The bill was reported from Committee.
HB 295-REGULATIONS: NOTICE AND DISTRIBUTION
The Committee heard from the Department of Law, adopted a committee
substitute, and reported the bill from Committee.
HB 495-4 DAM POOL JOINT ACTION AGENCY
This bill was scheduled but not heard.
SB 396-INTERIOR RIVERS PORT AUTHORITY
This bill was scheduled but not heard.
CS FOR HOUSE BILL NO. 422(STA)
"An Act repealing the special subaccount established in the
constitutional budget reserve fund; and providing for an
effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this legislation would repeal the
Constitutional Budget Reserve (CBR) subaccount and, thereby, allow
"the entire CBR to be invested in fixed income securities." He
informed the Committee that the Department of Revenue would be
responding to concerns raised during the first hearing on this bill
regarding the investment policy pertinent to the $400 million
subaccount.
TOMAS BOUTIN, Deputy Commissioner, Department of Revenue, reminded
that Committee that, in the year 2000, legislation was adopted that
transferred $400 million from the CBR into a separate subaccount to
be "invested under the assumption that it would not need to be
available for five years or longer."
Mr. Boutin stated that the Department has determined that this
subaccount "is no longer appropriate" in light of the manner in
which the CRB is currently being utilized. He shared that the
subaccount has experienced "a great deal of volatility" and, in
fact, did not obtain its original investment level until December
2003. He declared that "the fundamental investment policy" of the
Department is that the CBR should be in fixed income accounts
rather than being "market timers."
Senator Olson asked the current value of the subaccount and its
anticipated year-end projection.
Mr. Boutin stated that the current balance of the subaccount is
$419 million, and that no projections have been undertaken.
Co-Chair Wilken recalled that this subaccount was established with
the goal of investing for the long-term in order to achieve higher
yields than those realized by the CBR, which, due to the State's
need to be able to access CBR funds to cover State deficits, "was
invested on a somewhat short-term basis that have lower returns."
He also understood that the revenue generated by the subaccount
investments has never achieved the revenue stream level required to
provide bond support.
Mr. Boutin affirmed that this is correct. He also recounted that
the Department had notified the Legislature that the CBR fund could
not be used as security for the issuance of tax-exempt bonds,
according to Internal Revenue Service (IRS) code guidelines for
"replacement proceeds". Therefore, he continued, a yield
restriction is "placed on the entire CBR and any part of it then
pledged as security for tax exempt debt."
Co-Chair Wilken acknowledged that yield restriction parameters
exist.
JAMES ARMSTRONG, Staff to the bill's sponsor, Representative Bill
Williams, noted that the bond support provisions were removed from
the year 2000 legislation before it was adopted.
Co-Chair Wilken acknowledged the clarification.
Senator Hoffman commented that in light of Governor Frank
Murkowski's position that the CBR should maintain a specified
minimum dollar balance, the Legislature could "contemplate"
designating that the minimum balance amount be invested for the
long-term in order to "potentially" obtain higher yields.
Mr. Boutin clarified that the Governor's position is to maintain a
one billion minimum CBR balance. He informed that projections
indicate that this "threshold amount" might be breached in the
spring of 2006. He stated that, "if and when that one billion
dollar account balance is reached," it should be maintained in
liquid investments as traditionally, in addition to the possibility
that a CBR draw might be required in order to balance the State's
budget, a minimum cash flow of $400 million has historically been
required, annually, to fund fire suppression, highway projects, and
other projects that would later be federally reimbursed or funded
later in the year. In addition, he stated that CBR funds might also
be required were crude oil prices, which are a factor in the
State's budgeting process, to plummet. He stated that the CBR
account balance, including the subaccount balance, is currently
$2,074,400,000.
Senator Hoffman asked the rationale of abandoning this subaccount
prior to its long-term five-year maturity date, as he argued, doing
so would not allow proper evaluation of the concept.
Mr. Boutin responded that, contrary to procedures that were in
place when the subaccount was established, the Department does not
currently maintain five-year time horizon projections.
Senator B. Stevens asked whether the current $2 billion cash
balance is an accrued balance or a cash balance.
Mr. Boutin clarified that it is the cash balance.
Senator B. Stevens asked for further information regarding the
accrued balance, or money owed from reimbursement.
Mr. Boutin stated that there are no borrowings against the CBR, as
it has not been used to provide security or debt. However, he
stated that "suspend account" items such as outstanding warrants
from fire suppression efforts and other reimbursable funds are not
included in the cash balance amount.
Senator B. Stevens asked what the CBR balance would be were suspend
accounts included.
Mr. Boutin stated that each weekday morning a reconciliation of
outstanding warrants is conducted.
Senator B. Stevens informed that, according to a recent Legislative
Finance Division report [copy not provided], $300 million of CBR
funds were allocated to but not utilized by Departments and should
be swept back into the CBR.
Co-Chair Wilken interjected that David Teal, the Director of
Legislative Finance, has informed him that the cash balance of the
CBR is approximately two billion dollars and that were all
outstanding warrants reimbursed, the cash balance would be $2.4
billion.
Co-Chair Wilken commented that reconciling the cash balance of the
CBR is not pertinent to this legislation.
Senator B. Stevens stated that he does not support this
legislation.
Senator Hoffman asked the Department whether a CBR draw is
anticipated this fiscal year due to the fact that crude oil prices
are hovering in the $40 per barrel range.
Mr. Boutin responded that, based on recent calculations, this
year's CBR draw could be between $50 and $70 million.
Senator Hoffman asked whether this draw is factored into the $2.1
billion cash balance.
Mr. Boutin responded in the negative.
Senator Bunde moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS HB 422(STA) was REPORTED from
Committee with negative $125,000 fiscal note #1, dated February 9,
2004 from the Department of Revenue.
CS FOR HOUSE CONCURRENT RESOLUTION NO. 32(EDT) am
Relating to information infrastructure and establishing the
Alaska Information Infrastructure Policy Task Force.
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill would establish a 13-member
information technology taskforce. He stated that the sponsor would
be providing information to address Committee concerns regarding
the bill's accompanying $99,500 fiscal note #3, dated March 4,
2004, from the Legislative Affairs Agency.
SUE STANCLIFF, Staff to Representative Pete Kott, the bill's
sponsor, stated that the Legislative Affairs Agency (LAA) fiscal
note has been reduced to $58,000 by utilizing existing Legislative
staff to assist the taskforce and by absorbing certain expenses
such as contractual services and supplies within existing budgets.
She asserted that the taskforce's mission would be challenging and
that the expenses outlined in the revised fiscal note are
warranted.
Senator Bunde asked for clarification that funding for the
Legislative staff assistant position would be absorbed within the
LAA budget.
Ms. Stancliff clarified that, were this bill adopted, the LAA would
fund the position during the interim between this Legislative
Session and the First Session of the Twenty-Fourth Alaska State
Legislature. She noted that were a taskforce assistant required
into that Session, Legislative staff would be utilized.
Senator Bunde moved to report the bill, as previously amended, from
Committee with individual recommendations and accompanying fiscal
notes.
There being no objection, SCS CS HCR 32(FIN) was REPORTED from
Committee with zero fiscal note #1, dated February 23, 2004 from
the University of Alaska and a new $58,000 fiscal note, dated May
8, 2004 from Legislature Administrative Services, Legislative
Affairs Agency.
SENATE CS FOR CS FOR HOUSE BILL NO. 275(JUD)
"An Act relating to animals, and to the care of and to cruelty
to animals."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill would establish standards of
care for animals and, in addition, would outline the process
required to investigate animal cruelty. In addition, he stated that
the bill would create the crime of cruelty to animals.
CHERYLYNN WRIGHT, Staff to Representative Mike Chenault, the bill's
sponsor, noted that a great deal of work has been put toward the
development of this legislation. She stated that the sponsor is
pleased with the end result.
Co-Chair Wilken asked how the crime of cruelty to animals would be
classified.
Ms. Wright responded that the crime would be classified as a class
A or B misdemeanor.
Co-Chair Wilken asked for details regarding the standards of care.
Ms. Wright responded that this information is detailed in Section
1, subsection Sec. 03.22.100. Minimum standards of care for
animals. on page one, beginning on line five. She also noted that
the determination as to whether these standards have been breached
would be based on the professional opinion of a veterinarian. She
noted that this language was adopted in the Senate Judiciary
Committee.
Senator Bunde spoke in support of the bill. He opined that people
who abuse animals often abuse humans. He stated that cruelty to
animals should not be tolerated and that this behavior "should be
pursued with vigor to exterminate."
Senator Hoffman inquired as to which communities have
veterinarians.
Ms. Wright responded that nearly every community has either
telephone access or direct access to a veterinarian. She noted that
this topic is addressed on Section 1, subsection (c) on page two,
beginning on line 16, which specifies that, in the absence of a
veterinarian, a peace officer could address the welfare of an
animal.
Ms. Wright, referencing Senator Bunde's comments, shared that an
[unspecified] Alaskan newspaper had recently reported a case in
which a woman disposed of a litter of puppies by throwing them out
of a vehicle window while traveling at 55 miles per hour. She
stated that two to the puppies died and that the others are
receiving care and are up for adoption. She declared that this type
of situation would be one that could be more easily prosecuted were
this legislation adopted.
Senator Olson inquired as to how this legislation would mesh with
the Humane Society's cruelty to animal laws that exist.
Ms. Wright replied that this legislation "is not as radical" as
guide-lines recommended by the Humane Society of the United States
nor are they as extensive as those established in other states. It
is, she disclosed, "one of the lesser laws, revision of statutes"
of all the states. She disclosed that Alaska in either "49th or
50th on the list with our current animal abuse laws" and that this
legislation would align the State more with other states' laws.
Senator Olson asked for further information regarding current State
law.
Ms. Wright responded that the current law is "only about a
paragraph and a half long."
Senator Hoffman stated that animal rights activist groups have
characterized the Iditarod Dog Sled Race as being "cruel and
unusual punishment to the dogs." Continuing, he asked whether the
Iditarod Race Committee has reviewed this legislation.
Ms. Wright reiterated that the Iditarod Race Committee and numerous
other interested parties have participated in the four-year process
developing this legislation. She stated that the section in the
bill that addresses "acceptable training standards," is applicable
to the Race. She noted that, while the Iditarod Race Committee has
not reviewed this version of the bill, they have previously been
involved in the discussion.
Senator Olson stated that the Iditarod Sled Dog Race is an
important event to his District and he would appreciate the
Iditarod Committee's input on the bill.
Co-Chair Wilken interjected that this legislation would also affect
the Yukon Quest Race.
Co-Chair Wilken asked the definition of "protective custody" as
referenced in the language in Section 1, subsection (c) on page
two, lines 13 though 27, which was incorporated into the bill by
the Senate Judiciary Committee.
Ms. Wright stated that rather than the term "protective custody"
meaning that money would be required to construct animal holding
areas, the intent is that such things as temporary care
arrangements would be implemented until a decision was made in
regard to the animal.
AL STORY, Lieutenant and Director of Staff, Alaska State Troopers,
testified via teleconference from an offset site and stated that
the inclusion of the term protective custody "fits well into this
bill." He stated that this is a term whose meaning is known to law
enforcement officers as, similar to how it is defined for humans,
the intent of it is to provide for the animal's well-being by
taking them to a place such as "a veterinarian or to a public or
private custodian" where they could be properly cared for and where
their condition could be evaluated to determine whether medical
treatment would be required.
Co-Chair Wilken understood therefore that law enforcement officers
are comfortable with the language.
Mr. Story verified that law enforcement entities are supportive of
the legislation.
Senator Bunde commented that numerous municipalities have programs
through which poorly cared for animals are placed in custodial
places similar to what is being proposed in this bill. He noted
that once an animal is brought back to health and that proof has
been provided that the owner would act responsibly, the animal
could be returned to the owner. However, he continued, were the
owner deemed irresponsible, the animal would be available for
adoption.
Senator Bunde moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, SCS CS HB 275(JUD) was REPORTED from
Committee with zero fiscal note #1, dated March 28, 2004 from the
Department of Law; zero fiscal note #3, dated April 2, 2004 from
the Department of Environmental Conservation; zero fiscal note #4,
dated April 1, 2004 from the Department of Public Safety; and
indeterminate fiscal note #5, dated April 5, 2004 from the
Department of Administration.
AT EASE 12:40 PM / 12:44 PM
CS FOR HOUSE BILL NO. 534(FIN)
"An Act repealing the scheduled termination date of the office
of victims' rights."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken noted that this legislation, CS HB 534, Version 23-
LS1830\D, would repeal the termination date of the Office of
Victims' Rights. He noted that the bill is sponsored by the House
Rules Committee by request of the Legislative Budget & Audit (LB&A)
Committee.
SARA NIELSEN, Staff to Representative Ralph Samuels, Chair of the
LB&A Committee, stated that this "simple bill" would repeal the
termination date regarding the Office of Victims' Rights. The
Office, she noted, is responsible for providing "legal council,
education, and assistance to victims of crime." She shared that the
original version of this bill specified a four-year termination
date; however, she continued, the House Finance Committee amended
the original bill to specify that the Office be permanent.
Co-Chair Wilken inquired to the reason the funding would increase
from zero in FY 05 and FY 06 to $541,000 in FY 07 as reflected in
the Legislative Affairs Agency fiscal note #2, dated April 5, 2004.
Ms. Nielsen explained that the Office is currently funded through
FY 06, which was its original termination date. She noted that were
the Office to become permanent as the result of the adoption of
this legislation, funding would be required on an annual basis.
Co-Chair Wilken understood therefore, that rather than requiring
new funds, the fiscal note reflects that fund source change.
Ms. Nielsen concurred.
Senator Hoffman noted, however, that "the Permanent Fund dividend"
would continue to be the funding source.
Ms. Nielson affirmed.
Senator Olson asked how this legislation would relate to other
victims right legislation.
Ms. Nielsen indicated that this legislation would compliment other
legislation such as the Victims Compensation Board.
Senator Bunde asked, as a follow-up to Senator Hoffman's comment,
for confirmation that this Office would continue to be funded by
the Permanent Fund Corporation earnings.
Ms. Nielsen affirmed, and stated that the Corporation could provide
further information. She understood that funding is also provided
by the Legislative Affairs Agency.
Senator Bunde opined that the use of Permanent Fund earnings should
not be considered as "breaking new ground" as these earnings are
currently being spent to support the Office.
Senator Dyson voiced a conflict of interest as he disclosed that
his wife's counseling business has received and might continue to
receive funds from this Office.
Senator Bunde moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objections, CS HB 534(FIN) was REPORTED from
Committee with zero fiscal note #2, dated April 5, 2004 from the
Legislative Affairs Agency.
CS FOR HOUSE BILL NO. 536(MLV)
"An Act relating to applications for permanent fund dividends
by certain individuals serving in the armed forces, and to
payment of certain 2003 and 2004 dividends; and providing for
an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken commented that this bill, version 23-LS1796\C, is
sponsored by the House Rules Committee, at the request of the
Special Committee on Economic Development. He stated that this bill
"would allow members of the armed services who received hostile
fire and imminent danger pay during the FY 03 and FY 04 application
period an extension to their 90-day application period." He noted
that a zero fiscal note accompanies the bill from the Department of
Revenue.
JON BITTNER, Staff to Representative Cheryll Heinze, the Chair of
the Special Committee on Economic Development, stated that this
legislation would basically provide members of the armed forces who
"are in war zone situations" an extension on their Permanent Fund
Dividend (PFD) application period. Continuing, he noted that the
legislation was developed at the request of the PFD Division,
Department of Revenue, after they received appeal letters from
Alaska military personnel who served in war in Iraq during the FY
03 and FY 04 PFD application periods. He stated that due to
inoperable communication systems these people were unable to access
or remit their PFD applications. Therefore, he stated, this bill
would provide military personnel a 90-day extension, once they are
out of a war zone situation and in an area that would provide them
the ability to access and submit required PFD paperwork. He noted
that the bill contains retroactive language that would allow those
"who served in the last Iraqi and Afghanistan war" to file for
their PFD dividends.
Mr. Bittner stated that the bill would also allow the Commissioner
of the Department of Revenue to further accommodate the filings of
war zone military personnel who were unable to file, due to war
related injuries, within the specified 90-day period once they
recovered and were able to provide proof of reasonable cause.
Senator Olson asked the number of applications that might be
pending.
Mr. Bittner replied that, while Alaska has approximately 14,000
active armed service members, the number who might qualify under
this legislation, is undetermined. He noted that the PFD Division
does not currently analyze whether pending military applications
were war-zone related.
Senator Hoffman asked therefore whether the PDF Division would seek
out these individuals or whether it would be incumbent for the
applicant to notify the Division, were this legislation adopted.
Mr. Bittner responded that the Division would notify those Alaskans
to whom this legislation would apply.
Senator Hoffman, noting that the annual dividend formula
calculation is determined by the total number of applications
received, asked the funding source for the additional dollars that
would be required for these applicants.
Mr. Bittner responded that the PFD Division director has indicated
that this would not be "a problem" as the number of qualifying
applicants is expected to be minimal.
Senator Hoffman continued his questioning, as he noted, while the
Permanent Fund consists of millions of dollars, these applicants
would not have been factored into the dividend amount formula.
Mr. Bittner deferred to the Division to provide the answer.
SHARON BARTON, Director, Permanent Fund Dividend Division,
Department of Revenue, testified via teleconference from an offnet
site, and informed the Committee that the Division would calculate
the number of active duty personnel who might qualify under this
legislation. This projection, she stated, would then be factored
into the following year's dividend formula "and held in reserve in
the Permanent Fund Dividend Fund." She noted that reserves have
already been set aside pending additional information.
Senator Hoffman inquired as to where the funds to support FY 03
dividend payments would be derived.
Ms. Barton responded that the Division has "a rough projection,"
and that reserves have already been established. She assured the
Committee that the numbers would not be so many as to "cause a
problem."
Senator Bunde moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS HB 536(MLV) was REPORTED from
Committee with zero fiscal note #2, dated May 6, 2004, from the
Department of Revenue.
CS FOR HOUSE BILL NO. 295(STA) am
"An Act relating to the publishing, furnishing, and contents
of certain notices regarding regulations or rules of certain
state agencies and entities; relating to distribution of the
Alaska Administrative Code, Alaska Administrative Register,
and supplements to the code or register; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken commented that this legislation would alter the
manner through which the public is notified about meetings
pertaining to State regulations.
Senator Bunde moved to adopt the Finance committee substitute,
Version 23-GH1145\I, as the working document.
There being no objection, the Version "I" committee substitute was
ADOPTED.
CRAIG TILLERY, Chief Assistant Attorney, General-Statewide Section
Supervisor, Environmental Section, Department of Law, testified via
teleconference from an offnet site to explain that this legislation
would serve to make advertising notices for proposed regulations in
newspapers more readable and understandable by requiring less
detail to be included in those notices. In addition, he stated that
the legislation would make notice distribution methods via the
Internet, mail, electronic mail and newspapers more consistent
between State agencies. Furthermore, he noted that in certain
specialized subject areas such as those pertaining to business
situations or to persons who rely on the Internet for information,
newspaper notices would no longer be required.
Mr. Tillery stressed that "the key change" of this legislation
would be to allow for abbreviated newspaper notices rather than the
more detailed versions currently required. This change, he
reiterated, would make notices more understandable and would reduce
State advertising expenditures. He noted that while the proposed
advertising notice format would continue to provide information
pertinent to how a regulation is being changed, it would direct
people to access the Alaska On-Line Public Notice system on the
Internet or to a contact person at a State agency were more
detailed information required.
SFC 04 # 113, Side B 01:00 PM
Mr. Tillery continued "that there are a number of discrepancies in
notices as required by the Administrative Procedures Act (APA) and
those required in State Statute as a result, he attested, of
"historical accidents" when statutes were adopted prior to the
enactment of the APA. Some of the discrepancies, he continued, are
that while Statutes require notices to be advertised in three
newspapers, others, such a those affecting the Teachers Retirement
Board, the Judicial Retirement Board, and the Public Employees
Retirement Board, allow a notice to be in a single newspaper
because these individuals "have greater access to the Internet."
Mr. Tillery informed the Committee that although the original bill
included the Alaska Railroad, the Alaska Aerospace Development
Corporation, the Alaska Housing Finance Corporation, and the Alaska
Industrial Development and Export Authority (AIDEA), in the single
notice requirement, the Version "I" committee substitute would
require those agencies to publish notices in three newspapers.
Another change incorporated into the Version "I" committee
substitute, he continued, is that the newspaper notice requirement
would be eliminated for highly specialized subject areas in which
"the interested person relies heavily on the Internet or other
means" such as a trade group for information. These affected
groups, he shared, would include the Department of Community and
Economic Development's Banking Securities and Corporations
Division; Trust Act regulations; and the Department of Revenue's
corporate income tax regulations.
Mr. Tillery also pointed out that existing law requires the
Lieutenant Governor to provide a paper copy of the Alaska
Administrative Code to a clerk of a local governmental unit, at no
cost, whether the clerk wants it or not. He stated that the
Lieutenant Governor's office has notified the Department of Law
that numerous municipalities have pointed out that this paper copy
is unnecessary. The committee substitute would change current
statute to specify that a municipality's clerk must request a copy
and that they must pay for it. In addition, the Committee
substitute would allow the clerk to elect to receive Internet
assess to the Code at a reduced cost.
Senator Hoffman asked whether the language change that would allow
a notice to be run in one newspaper rather than three different
newspapers is referenced in Sec. 13, subsection (2) on page six,
beginning on line eight, which reads as follows.
(2) published in a newspaper [ONE OR MORE NEWSPAPERS] of
general circulation in [EACH JUDICIAL DISTRICT OF] the state;
New Text Underlined [BRACKETED TEXT DELETED]
Mr. Tillery stated that numerous statutes relating to newspaper
notices are affected by this bill; specifically that Sections 3, 8,
and 13 would allow for a single newspaper notice and that Sections
5, 6, 16, 17, and 25 would continue the current three newspaper
notice requirement. He noted that the language allowing the use of
abbreviated notices primarily pertains to the Americans with
Disabilities Act (ADA) language requirements.
Senator Hoffman pointed out that no single newspaper has a
Statewide circulation. Therefore, he stated that a notice in one
newspaper could negatively affect a notice's public exposure.
Consequently, he argued that the cost savings "would not measure up
to the lack of information" to the public.
Mr. Tillery pointed out that only three entities: the Alaska
Teachers Retirement Board; the Judicial Retirement System; and the
Public Employees Retirement Board, would be allowed to advertise in
only one paper. These three, he reiterated would be provided this
measure because they utilize the Internet on a daily basis and are
able to acquire information through their place of business via the
Alaska On line Public Notice System or other means. He stressed
that the reduced notice language would be limited to these three
entities.
Co-Chair Wilken recalled that concerns relating to this subject
arose from the fact that previous pieces of legislation proposed to
allow all notices to advertise in a single newspaper of general
circulation. This bill, he stressed, limits that ability to the
three aforementioned entities. He stated that the bill would also
allow for abbreviated notices.
Senator Olson stated that, despite the use of the Internet, it is
disconcerting to attempt to deliver notices via one newspaper in
such a large State. He asked, therefore, how he could reassure
teachers and others that they would be adequately notified.
Mr. Tillery responded that the use of such things as regular postal
delivery mail, electronic mailings, labor unions and other
associations, as well as entity representatives could further
communications pertinent to a group.
Senator Olson noted that people who rely on such newspapers as the
Arctic Sound and the Nome Nugget for public notices, "might be
unduly left in the dark."
Senator Bunde, himself being a retired teacher, assured that such
entities as the Teachers Retirement System (TRS) expend a great
deal of money on member communication.
Senator Olson asked the number of time-sensitive deadline oriented
communiqués that might be delivered via the United States Postal
Service.
Senator Bunde reported that he is unaware of any "immediate nature"
communiqués, as he noted that the majority of the notices regard
meeting notices and agendas and "are proactive rather than
reactive."
Senator Hoffman voiced concern that the only place with Internet
capability in rural areas is the school and that a lot of people
are computer illiterate.
Senator Olson affirmed that many people do not have Internet
access.
Senator Bunde moved to report the Senate Finance committee
substitute from Committee with accompanying fiscal note and
individual recommendations.
There being no objection, SCS CS HB 295(FIN) was REPORTED from
Committee with a negative $123,100 fiscal note, dated April 28,
2004 from the Office of Management and Budget.
RECESS TO THE CALL OF THE CHAIR 1:11 PM / 12:03AM
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 12:03 AM.
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