Legislature(2007 - 2008)SENATE FINANCE 532
03/27/2008 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB233 | |
| SB221 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 221 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 233 | ||
SENATE FINANCE COMMITTEE
March 27, 2008
1:37 p.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 1:37:08 PM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Derek Miller, Staff, Representative Kelly Joan Nugent,
Ketchikan General Hospital; Kevin Gadsey, Southeast Alaska
Independent Living Coordinator Miles Baker, Staff, Senate
Finance Committee;
PRESENT VIA TELECONFERENCE
Robert Wilkenson, Chief Executive Officer, Copper Valley
Electric Association and Vice-President, Alaska Power
Association; Marilyn Leland, Executive Director, Alaska
Power Association Murat Balaban, Fisheries Industrial
Technology Center, Kodiak; Ginger Fortin, Homer; David
Johnson, Physician, Ketchikan General Hospital; Joan Nugent,
Ketchikan General Hospital; Kevin Gadsey, Coordinator,
Southeast Alaska Independent Living; Rebecca Madison, Alaska
Native Tribal Health Consortium; Ron Inouye, Volunteer
Coordinator, Museums Day, Fairbanks; Ann Ringstad,
University of Alaska, Fairbanks; Rick Caufield, Director,
Tanana Valley Campus, UAF; Beth Landon, Director Alaska
Center for Rural Health, UAA; Ruth Talley, Anchorage; Rex
Talley, Anchorage; Gary Olson, Chairman, Alaska Moose
Federation, Anchorage; Patrick Reinhart, Director, State
Independent Living Council, Anchorage; Dan Steadman,
Executive Director, Health Center, Soldotna; Richard Peck,
Unalaska; Sonia Hanforth-Kome, Unalaska; Marilyn Kasmar,
Alaska Primary Care Association, Anchorage; Scott Davis,
Ketchikan; Mark Walker, Alaska Community Services, Wrangell;
Roger Wright, Jr., Kotzebue; Bonnie Woldstad, North Pole
SUMMARY
SC CSHB 233(L&C)
"An Act relating to giving notice of unclaimed net
margin distributions made by electric and
telephone cooperatives."
HB 233 was HEARD and HELD in Committee for further
consideration.
SB 221 "An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing
for an effective date."
SB 221 was HEARD and HELD in Committee for further
consideration.
1:37:22 PM
SENATE CS FOR CS FOR HOUSE BILL NO. 233(L&C)
"An Act relating to giving notice of unclaimed net
margin distributions made by electric and telephone
cooperatives."
DEREK MILLER, STAFF, REPRESENTATIVE KELLY, read from Sponsor
Statement:
The purpose of HB 233 addresses the sometimes
burdensome and ineffective noticing requirements of
unclaimed property law regarding capital credits of
electric and telephone cooperatives. Electric and
telephone cooperative from time to time receive excess
revenue from members that exceed the expenses of
operations. The cooperative keeps these excess revenues
in a member-owned capital account called capital
credits, on behalf of the member.
Cooperatives may refund a portion of accumulated
capital credits, but in some cases the cooperative
seeking to refund the capital credits no loner has a
valid address for the member. As a result, many go
unclaimed. Current Alaska unclaimed property law allows
the credits to revert back to the cooperative as long
as the cooperative, at least six months prior to the
reversion 1) mailed a notice to last known address of
the member; 20 publishes a notice of proposed reversion
in the same manner required for publishing a service of
commons by publication; and 3) publishes a notice of
the unclaimed capital credits four times, during four
consecutive calendar weeks in a newspaper of local
circulation.
While mailing to last known address of members
sometimes result in finding members, newspaper
publication does not result in a significant increase
in the number of members who cash their capital credit
checks, particularly for rural cooperatives. As a
result, cost of compliance with this notice requirement
is significant and the effectiveness is questionable.
HB 233 allows cooperatives the option of using the
internet, instead of newspaper publication, to notify
its members of unclaimed capital credits. Alaska is the
most "wired" state in the country and this bill allows
for cooperative to notify its members using a method
most likely to reach them.
1:40:42 PM
Co-Chair Stedman inquired how many areas in Alaska do not
have internet access and if it is a problem.
Mr. Miller referred to Marilyn Leland Executive Director
Alaska Power Association to better answer that question.
Co-Chair Stedman referenced page 2, line 3, and asked why
the posting on the website was for 180 days.
1:41:42 PM
Mr. Miller explained that the bill was originally introduced
with a thirty day posting then the House Labor & Commerce
Committee amended that to 180 days. There has been no
objection from cooperatives regarding the change.
1:42:21 PM
Senator Dyson asked if consideration was given to the use of
the Permanent Fund Division's address list to notify those
owed a credit. Mr. Miller responded that it had not been
considered but he would look into the possibility.
1:43:04 PM
Senator Dyson felt the use of the Permanent Fund Division's
address listing was a more effective way to find members and
offered to propose an amendment to that effect.
1:43:56 PM
Co-Chair Stedman reminded the Committee that this was the
first hearing HB 233 and there would be time for questions
and concerns to be addressed.
Mr. Miller informed the Committee that Chugiak Consumers
Consortium reviewed the bill and felt confident the
consumers were being adequately notified.
1:44:45 PM
Senator Thomas expressed confusion over the term "member"
noting that those needing to be contacted would no longer be
members. Mr. Miller agreed.
1:45:18 PM
Senator Elton asked the notification process used by utility
companies that are not cooperatives. Mr. Miller answered
that the bill only covers telephone and electric
cooperatives and he would need to check into how other
private utilities handle notices of unclaimed capital
credits.
Senator Elton wanted to assure that the state was treating
both cooperative and non cooperative utilities equally. He
further noted that there may be legal limitations regarding
the use Permanent Fund Division information and it may
require a change in the law.
1:46:40 PM
Co-Chair Stedman suggested that the bill's sponsor check
with the Permanent Fund Division regarding legal limitations
to release address information.
1:47:09 PM
ROBERT WILKENSON, CHIEF EXECUTIVE OFFICER, COPPER VALLEY
ELECTRIC ASSOCIATION and VICE PRESIDENT, ALASKA POWER
ASSOCIATION testified via teleconference in support of HB
233. He explained that the Alaska electric industry includes
municipal utilities and a few investor-owned utilities but
was mostly made up of nonprofit electric cooperatives. The
distinguishable aspect of cooperatives is that they operate
on a nonprofit basis; by law the monies received in excess
of the cost of operations are a "contribution of capital" by
the member. The utility policy states that the credits are
allocated to customers, pending refund. He elaborated that
in some cases the refunds may not be made for a generation
or even longer, which presents the problem of unclaimed
refunds. He indicated that the 180 day notice was arrived at
from an existing statute whereby a year after a refund is
declared, if unclaimed refunds have been noticed for a year,
six months prior to the 180 days those funds may revert to
the utilities.
He noted staff on both the House and Senate side worked with
the utilities to make changes to HB 233. The goal of the
utilities is to complete the contract with members and
return any capital credits due. Mr. Wilkenson responsed to
Senator Thomas' earlier comment regarding "members" said a
differentiation could be made by using "members" and
"inactive members" terminology.
1:52:38 PM
MARILYN LELAND, EXECUTIVE DIRECTOR, ALASKA POWER ASSOCIATION
testified via teleconference and commented on the previously
asked question regarding the number of companies without
internet. She believed most companies had the internet and
this bill could be an incentive to use the internet for
those who do not already. She further noted that some
companies are already noticing members through the internet.
She described that the funds, once returned to the utility,
are generally given back into the communities. She provided
an example of communities using funds for school
scholarships.
1:54:55 PM
HB 233 was HEARD and HELD in Committee for further
consideration.
RECESS: 1:55:37 PM
RECONVENED: 5:12:58 PM
SENATE BILL NO. 221
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Stedman announced that the Committee was waiting
the arrival of the new Committee Substitute. The plan was to
start public testimony and those online waiting for the
Committee Substitute could call back later.
5:14:36 PM
MURAT BALABAN, FISHERIES INDUSTRIAL TECHNOLOGY CENTER,
KODIAK testified via teleconference and supported the
deferred maintenance request for the University of Alaska
Fairbanks facilities. This money is needed to maintain the
existing infrastructure.
5:16:29 PM
GINGER FORTIN, HOMER testified via teleconference in favor
of the extra appropriation of $4.2 million for the Kenicott
Marine Highway Ferry to serve the Homer, Soldovia, and
Kodiak areas twice a month.
5:17:19 PM
DAVID JOHNSON, PHYSICIAN, KETCHIKAN GENERAL HOSPITAL
testified via teleconference in support of the $4.4 million
upgrade to the hospital's surgery unit. This request only
represents half the money required. The money is critical to
the community.
5:19:02 PM
JOAN NUGENT, KETCHIKAN GENERAL HOSPITAL, testified via
teleconference and supported the request for the Ketchikan
General Hospital surgery needs.
5:21:06 PM
KEVIN GADSEY, COORDINATOR, SOUTHEAST ALASKA INDEPENDENT
LIVING testified via teleconference in support of the
$250,000 adaptive technologies grant for seniors and those
with disabilities.
5:23:31 PM
REBECCA MADISON, ALASKA NATIVE TRIBAL HEALTH CONSORTIUM
testified via teleconference in support of the statewide
health information exchange for $6.5 million. She emphasized
that this is a cost savings program.
5:27:13 PM
RON INOUYE, VOLUNTEER COORDINATOR, MUSEUMS DAY, FAIRBANKS
testified via teleconference and asked for an increase of
$50,000 to $100,000 for the state office of history and
archeology to match the federal money that would not be
received without this matching state funding. He also urged
the consideration of the increase of $3 million for the
joint state archives and museum in Juneau
5:28:31 PM
ANN RINGSTAD, UNIVERSITY OF ALASKA, FAIRBANKS testified via
teleconference in support of BIO science and medicine
funding and deferred maintenance.
5:29:38 PM
RICK CAUFIELD, DIRECTOR, TANANA VALLEY CAMPUS, UNIVERSITY OF
ALASKA, FAIRBANKS testified via teleconference and supported
the renewal and renovation to the Tanana Valley Campus.
5:31:35 PM
BETH LANDON, DIRECTOR ALASKA CENTER FOR RURAL HEALTH,
UNIVERSITY OF ALASKA testified via teleconference and
supported the University funding for deferred maintenance
and the funding for local health care training.
5:33:50 PM
RUTH TALLEY, ANCHORAGE testified via teleconference and
strongly supported the Alaska Primary Care Association one
time capital request of $2.5 million for health information
technology and facilities.
5:35:12 PM
REX TALLEY, ANCHORAGE testified via teleconference and
strongly supported the Alaska Primary Care Association one
time capital request of $2.5 million for health information
technology and facilities.
5:35:41 PM
GARY OLSON, CHAIRMAN, ALASKA MOOSE FEDERATION, ANCHORAGE
testified via teleconference in support of moose mitigation
strategy funding within the Department of Transportation
strategy plan to save lives and animals.
5:38:50 PM
PATRICK REINHART, DIRECTOR, STATE INDEPENDENT LIVING
COUNCIL, ANCHORAGE testified via teleconference in support
of three capital projects: Center for Independent Living
Project, Alaska Housing Trust Fund, and more capital funding
in transportation.
5:40:59 PM
DAN STEADMAN, EXECUTIVE DIRECTOR, HEALTH CENTER, SOLDOTNA
testified via teleconference and supported health
information technology.
5:42:23 PM
RICHARD PECK, UNALASKA testified via teleconference and
supported the $2.5 million for health information technology
infrastructure for community health centers.
5:43:31 PM
SONIA HANFORTH-KOME, UNALASKA testified via teleconference
in support of the $2.5 million for health information
technology infrastructure for community health centers.
5:44:05 PM
MARILYN KASMAR, ALASKA PRIMARY CARE ASSOCIATION, ANCHORAGE
testified via teleconference and supported the $2.5 million
for health information technology infrastructure for
community health centers.
5:46:23 PM
SCOTT DAVIS, KETCHIKAN testified via teleconference, in
support of building a local fire station for $2 million.
5:47:24 PM
MARK WALKER, ALASKA COMMUNITY SERVICES, WRANGELL testified
via teleconference and supported the $2.5 million for health
information technology infrastructure.
5:49:17 PM
ROGER WRIGHT, JR., KOTZEBUE testified via teleconference and
supported the $2.5 million for health information technology
infrastructure.
5:50:23 PM
BONNIE WOLDSTAD, NORTH POLE testified via teleconference in
support of Fish and Wildlife Public Safety for deferred
maintenance and safety equipment.
AT EASE: 5:52:07 PM
RECONVENED: 5:58:40 PM
Co-Chair Hoffman MOVED to ADOPT Committee Substitute for SB
221 (FIN), 25-GS2007\M as the working document before this
committee.
Co-Chair Stedman OBJECTED for discussion purposes.
5:59:19 PM
MILES BAKER, STAFF, SENATE FINANCE COMMITTEE presented a
synopsis of the bill. He explained that Section 1, page 2-6
reflect capital projects added into committee substitute to
protect life and property or enhance public safety. This
adds a total of $57.9 million in that category.
Mr. Baker remarked that Section 4, page 9, designates
capital projects appropriated first to various departments
and to named recipients, then to municipalities. There is a
total of $535 million of which $124 million was in the
Governor's budget that has been added back into this
committee substitute. The $413 million is for new
legislative project additions.
Mr. Baker noted that Section 5, page 70, is the
summarization by fund source of Section 4. Section 7, page
74 are the capital projects that will upgrade commercial
passenger vessel services, watercraft infrastructure,
passenger safety, and support cruise ship visitor
activities. These projects will be appropriated out of the
Commercial Passenger Vessel Tax Account for $23.9 million.
Mr. Baker reported that Section 10 is the language section
of the bill. The only changes from the previous committee
substitute on page 78. Section 11, line 18 added in the Help
America Vote Act. Section 11, line 23 capitalizes the
municipal harbor facility grant fund with $10.4 million,
$400,000 more than in the Governor's budget. Section 11,
line 25, page 78 appropriated $106.4 million to the school
construction grant fund that will pay for t n e
first four schools on the Department of Education's school
construction list, $81 million more than in the Governor's
budget.
6:04:24 PM
Mr. Baker indicated that Section 14, page 79 added back in
the Rural Electrification Revolving Loan Fund. He noted that
the total of the committee substitute is $1.56 billion. The
previous committee substitute was $950 million.
6:05:40 PM
Senator Dyson requested the other funds figure.
Mr. Bakes replied that the total other funds is $350.4
million that is up from $264 million.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION CSSB 221 (FIN), 25-GS2007\M was adopted as
the working document before this committee.
SB 221 was HEARD and HELD in Committee for further
consideration
AT EASE: 6:06:27 PM
RECONVENED: 6:34:11 PM
ADJOURNMENT
The meeting was adjourned at 6:34 PM
| Document Name | Date/Time | Subjects |
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