Legislature(2009 - 2010)SENATE FINANCE 532
04/13/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB20 | |
| HB344 | |
| HB52 | |
| HB354 | |
| HB168 | |
| HB306 | |
| HB114 | |
| HB186 | |
| HB319 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 20 | TELECONFERENCED | |
| += | HB 344 | TELECONFERENCED | |
| += | HB 52 | TELECONFERENCED | |
| += | HB 354 | TELECONFERENCED | |
| + | HB 168 | TELECONFERENCED | |
| + | HB 306 | TELECONFERENCED | |
| + | HB 114 | TELECONFERENCED | |
| + | HB 186 | TELECONFERENCED | |
| + | HB 319 | TELECONFERENCED | |
| + | HB 315 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 13, 2010
9:37 a.m.
9:37:22 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:37 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Representative Bryce Edgmon, Sponsor; Peter Ecklund, Staff,
Representative Bill Thomas, Sponsor; Hannah McCarty, Staff,
Representative Beth Kerttula, Sponsor; Representative Wes
Keller, Sponsor; Matt Johnson, Staff, Representative Wes
Keller, Sponsor; Senator John Coghill, Sponsor;
Representative Bob Herron, sponsor; William Streur, Deputy
Commissioner, Division of Health Care Services, Department
of Health and Social Services; Wilda Laughlin, Legislative
Liaison, Department of Health and Social Services; Chris
Rose, Executive Director, Renewable Energy Alaska (REAP);
Steve Haagenson, Executive Director, Alaska Energy
Authority; Representative Jay Ramras, Sponsor;
Representative Mike Kelly, Sponsor; Derek Miller, Staff,
Representative Mike Kelly; Gary Marbut, Shooting Sports
Association, Montana; Representative Mike Hawker, Sponsor;
Dan Boone, Juneau
PRESENT VIA TELECONFERENCE
Dr. Frank Sacco, Alaska Trauma Systems Review Commission;
Brian Bjorkquist, Senior Assistant Attorney General, Labor
and State Affairs Section, Department of Law; Kathy
Monfreda, Chief, Criminal Records and Identification
Bureau, Division of Statewide Services, Department of
Public Safety
SUMMARY
HB 20 FISHERIES LOANS: ENERGY EFFICIENCY/AMOUNT
SCS CSHB 20 (FIN) was REPORTED out of Committee
with a "do pass" recommendation and with
previously published FN 2 CED.
HB 344 SALMON PRODUCT DEVELOP. TAX CREDIT
CSHB 344 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with previously
published FN 2 REV.
HB 52 POST-TRIAL JUROR COUNSELING
HB 52 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published FN 1 CRT.
HB 354 AK CAPSTONE AVIONICS REVOLVING LOAN FUND
HB 354 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published zero FN 1 CED.
HB 168 TRAUMA CARE CENTERS/FUND
HB 168 was heard and HELD in Committee for
further consideration.
HB 306 STATE ENERGY POLICY
HB 306 was heard and HELD in Committee for
further consideration.
HB 114 USE STATE TRANS FACILITY FOR DISASTER AID
HB 114 was heard and HELD in Committee for
further consideration.
HB 186 AK FIREARMS EXEMPT FROM FED. REGULATION
HB 186 was heard and HELD in Committee for
further consideration.
HB 319 FIREARMS
HB 319 was heard and HELD in Committee for
further consideration.
HB 315 PUBLIC ACCOUNTING
HB 315 was scheduled but not heard.
9:37:37 AM
CS FOR HOUSE BILL NO. 20(FIN)
"An Act relating to commercial fishing loans for
energy efficiency upgrades and increasing the maximum
amount for certain loans under the Commercial Fishing
Loan Act; and providing for an effective date."
Co-Chair Stedman related that this was the second hearing
on HB 20. He noted one previously published fiscal note.
9:39:36 AM
REPRESENTATIVE BRYCE EDGMON, SPONSOR, addressed a question
brought up from the previous meeting regarding the
definition of engines and generators. He related that he
had checked with the Division of Investments director and
discovered that generators are sufficiently covered in
terms of the statutory language in the bill.
Co-Chair Hoffman MOVED to report SCS CSHB 20 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SCS CSHB 20 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with previously published FN 2
CED.
9:40:33 AM
CS FOR HOUSE BILL NO. 344(FIN)
"An Act relating to the salmon product development tax
credit; and providing for an effective date by
amending an effective date in sec. 7, ch. 57, SLA
2003, as amended by sec. 4, ch. 3, SLA 2006, and by
sec. 4, ch. 8, SLA 2008."
Co-Chair Stedman said it was the second hearing on the
bill. He noted one fiscal note from the Department of
Revenue.
PETER ECKLUND, STAFF, REPRESENTATIVE BILL THOMAS, SPONSOR,
thanked the committee for hearing the bill.
Co-Chair Stedman requested a summary of the bill.
Mr. Ecklund stated that the bill proposes to extend the
existing salmon product development tax credit four years,
from 2011 to 2015. The tax credit would give 50 percent tax
credit for a qualified investment for value-added equipment
to add value to salmon products. Fish processors could
deduct 50 percent of their fisheries business tax against
the tax credit. There is also a change that adds to
existing statute that ice machines would also qualify for
the tax credit.
Co-Chair Hoffman MOVED to report CSHB 344 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 344 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with previously published FN 2
REV.
9:42:27 AM
HOUSE BILL NO. 52
"An Act authorizing psychological counseling for
jurors serving in criminal trials who are traumatized
by graphic evidence or testimony."
Co-Chair Stedman said it was the second hearing on the
bill. He noted one fiscal note for $15,000 in general
funds.
HANNAH MCCARTY, STAFF, REPRESENTATIVE BETH KERTTULA,
SPONSOR, reviewed the purpose of HB 52. The bill would
allow for up to ten hours of counseling for a juror who
experiences a trial that is excessively graphic, gruesome,
or has emotional testimony or evidence.
Co-Chair Hoffman MOVED to report HB 523 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 52 was REPORTED out of Committee with a "do pass"
recommendation and with previously published FN 1 CRT.
9:43:59 AM
HOUSE BILL NO. 354
"An Act relating to eligibility for loans from the
Alaska capstone avionics revolving loan fund."
Co-Chair Stedman related it was the second hearing on the
bill. He noted one fiscal note from the Department of
Commerce, Community and Economic Development.
REPRESENTATIVE WES KELLER, SPONSOR, summarized HB 354. The
bill changes the eligibility for funds so that those who
lease an aircraft can also qualify to use the loan to equip
their airplane.
MATT JOHNSON, STAFF, REPRESENTATIVE WES KELLER, SPONSOR,
addressed a previous concern about Capstone avionics placed
in an aircraft that leaves the state. There is a provision
that allows 120 days to pay the loan in full, to re-up the
lease, or purchase the aircraft.
9:46:36 AM
Senator Olson asked who was taking advantage of the
Capstone loan. Representative Keller did not know.
Co-Chair Hoffman MOVED to REPORT HB 354 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 354 was REPORTED out of Committee with a "do pass"
recommendation and with previously published zero FN 1 CED.
9:47:35 AM
CS FOR HOUSE BILL NO. 168(FIN)
"An Act relating to state certification and
designation of trauma centers; creating the trauma
care fund to offset trauma care provided at certified
and designated trauma centers; and providing for an
effective date."
Co-Chair Stedman noted the committee heard the companion
bill, SB 168 on March 10.
SENATOR JOHN COGHILL, SPONSOR, said the sponsor from the
House would explain the bill.
REPRESENTATIVE BOB HERRON, SPONSOR, related that HB 168
would create a trauma care fund which could reimburse
trauma centers for uncompensated or undercompensated
services and create incentives for becoming a certified
trauma center.
Senator Coghill related the purpose of the bill to give
incentives to hospitals to raise their level of designation
for trauma. The request is for $2.5 million and the
authorization to go after disproportionate share money. He
spoke of a 50 percent match. He said the approach is
incentive driven, which works best in Alaska.
9:50:54 AM
Senator Ellis MOVED to ADOPT Amendment 1:
Page 1, line 13
Following "AS 18.08.082(c)" insert "that is a higher
level than a designation received by the center in the
preceding fiscal year."
Co-Chair Stedman OBJECTED for discussion purposes.
Senator Ellis voiced support for the bill. He explained the
amendment would require hospitals to show improvement in
the level of trauma care to be eligible for the funds.
Co-Chair Stedman asked if the bill sponsor was supportive
of the amendment. Senator Coghill said he was.
Senator Thomas understood that there was a professional
organization that designates the various levels of trauma
care. Senator Coghill explained that it is a national
organization that entails a rigorous examination and
review.
9:53:06 AM
Co-Chair Stedman WITHDREW his OBJECTION to adopting
Amendment 1. There being NO OBJECTION, it was so ordered.
Co-Chair Stedman reviewed the two zero fiscal notes, one
from the Department of Health and Social Services and one
from the Department of Revenue. There is also one fiscal
note from the House Finance Committee reflecting the need
for $2.5 million in general funds to match $2.5 million
from federal funds.
WILLIAM STREUR, DEPUTY COMMISSIONER, DIVISION OF HEALTH
CARE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
introduced himself.
WILDA LAUGHLIN, LEGISLATIVE LIAISON, DEPARTMENT OF HEALTH
AND SOCIAL SERVICES, reported that the department supports
the legislation, but is neutral on the fiscal note.
9:55:42 AM
DR. FRANK SACCO, ALASKA TRAUMA SYSTEMS REVIEW COMMISSION
(via teleconference), shared information about the Alaska
Trauma System. He said that trauma is a huge problem in
Alaska and is the number two cause of death. Alaska has the
second highest trauma rate in the country. Evidence shows
that trauma centers decrease mortality by 15 to 25 percent
for those seriously injured. A review of trauma care in
Alaska by the College of Surgeons shows that Alaska is
behind other states and is the only state without a level
two trauma center that serves the majority of the
population. The report suggested ways to improve and some
of those changes have been made. Having an incentive for
hospitals not currently participating will improve care and
improve outcomes. The bill will provide the means for an
incentive. Other states have mandated this program. He
concluded that 40 to 50 lives a year can be saved by this
program.
Senator Olson commented that the bill goes a long ways
toward improving health care in rural Alaska. He agreed
that a number of lives would be saved.
9:59:09 AM
Senator Coghill reported that a lot has been invested in
EMS Systems and First Responders; however, there is a great
need for trauma systems in hospitals. He stressed that the
bill is one step in the process and would bring consistency
to trauma care and contribute to preventative care.
HB 168 was heard and HELD in Committee for further
consideration.
10:01:35 AM
CS FOR HOUSE BILL NO. 306(RES)
"An Act declaring a state energy policy."
Representative Bryce Edgmon, Sponsor, explained that the
bill would create a statewide energy policy. The bill is a
product of a working group from the energy sector of
Alaska. It ties together all the facets of energy moving
forward in the 21st Century, including conservation,
efficiency, renewable and non-renewable energy, and
community-level involvement. The bill addresses the fact
that Alaska is a resource development state and energy is
tied to economic development. He pointed out the
legislative intent language in the bill. The bill passed
the House unanimously and has a zero fiscal note.
Co-Chair Stedman noted one zero fiscal note by the House
Energy Committee.
10:04:51 AM
CHRIS ROSE, EXECUTIVE DIRECTOR, RENEWABLE ENERGY ALASKA
PROJECT (REAP), testified in support of HB 306. He
explained the process of working on the bill and how
consensus was attained. He stressed the importance of the
bill due to the fact that the state does not have an energy
policy. The goal of the bill was to provide a framework or
vision in which to put strategic goals. Those goals can be
implemented through projects. He listed the benefits of the
bill, which promotes both renewable and non-renewable
alternative fuels. Energy efficiency and conservation is
foremost. The bill also supports training and workforce
development and works on coordinating government functions
so that the goals can be efficiently implemented.
10:07:48 AM
STEVE HAAGENSON, EXECUTIVE DIRECTOR, ALASKA ENERGY
AUTHORITY, testified in favor of HB 306.
Co-Chair Stedman pointed out that the bill targets 50
percent of the state's electrical generation to be from
renewable energy sources by 2025. He questioned where the
state currently is and how that goal might be attained.
Mr. Haagenson reported that the state is currently at 24
percent energy from renewable sources, including hydro
electricity. He stated that it was a realistic goal. He
talked about the Railbelt's renewable resource plan.
Co-Chair Stedman commented that there was currently $10
million in the capital budget for hydro electric projects.
Mr. Haagenson agreed. He added that there is a goal to
develop renewable energy plans for each community in
Alaska, not just Southeast and the Railbelt.
10:11:19 AM
Co-Chair Stedman asked if there had been much integration
with the idea of a bullet line or a major gas line and gas-
fired electric turbines. Mr. Haagenson responded with
information on natural gas energy in the Railbelt. He noted
that the bill does not include bullet lines or pipelines.
Senator Thomas requested further explanation of the 24
percent. Mr. Haagenson state that only .3 percent is non-
hydro; the majority is hydro-driven.
BRIAN BJORKQUIST, SENIOR ASSISTANT ATTORNEY GENERAL, LABOR
AND STATE AFFAIRS SECTION, DEPARTMENT OF LAW (via
teleconference), introduced himself.
Co-Chair Stedman asked what exposure Alaska has if the 50
percent goal is not met by 2025. Mr. Bjorkquist reported
that that information is found in Section 1 of the bill,
which is part of the legislative intent. If the state did
not meet that goal, there isn't a statutory mandate or
liability that could arise. The legislative intent would
not have been met and the consequences would be political,
rather than legal in nature.
Mr. Bjorkquist made two additional comments. He said on
page 3, line 22, the word "national" is problematic. He
suggested deleting that word, otherwise the word may impose
upon the state an obligation to meet federal targets.
Mr. Bjorkquist addressed the goal of 50 percent. He
suggested it could be used to suggest that the policy
points would affect litigation. He suggested codifying it
in order to prevent unintended consequences.
10:16:51 AM
Senator Thomas asked about national issues and its affect
throughout the bill. He cited page 2, lines 15 and 16 as an
example. Mr. Bjorkquist concurred. He said that obligations
could cross over to other state agencies and be unintended
consequences.
HB 306 was heard and HELD in Committee for further
consideration.
10:18:20 AM
CS FOR HOUSE BILL NO. 114(TRA) am
"An Act relating to availability of state
transportation facilities and state-owned or state-
operated transportation modes for delivering
compassionate aid."
Co-Chair Stedman noted it was the first hearing on the
bill.
REPRESENTATIVE JAY RAMRAS, SPONSOR, explained the content
of HB 114. The need for the legislation came out of a
economic disaster in Western Alaska. He shared problems
experienced when trying to move food and aid to the
villages. The bill "passionate aid" would allow, at the
governor's discretion, the use of state transportation to
transport food and aid. He noted a zero fiscal note. He
shared his involvement with delivering food to the sites.
10:21:43 AM
Senator Olson commented about how frustrating it was during
the crisis. He spoke strongly in favor of the bill.
Senator Huggins thanked Representative Ramras for his work
on the bill.
Representative Ramras thanked the committee. He shared the
need to address and prevent future situations in rural
Alaska.
10:23:44 AM
Co-Chair Stedman commented that the state must respond to
citizens' needs in every way possible. He opined that there
was a need to put into statute what once would have been an
automatic response. Representative Ramras reported that he
was told in a House caucus that it would be against the law
to use state assets to move food to a place in need. He
said that HB 114 was the emotional response to that
statement.
Co-Chair Stedman noted four zero fiscal notes. He stressed
that the state must respond to its citizens.
Senator Olson suggested passing the bill out today.
HB 114 was heard and HELD in Committee for further
consideration.
10:26:31 AM
CS FOR HOUSE BILL NO. 186(FIN) am
"An Act declaring that certain firearms and
accessories are exempt from federal regulation."
Co-Chair Hoffman noted it was the first hearing of the
bill.
REPRESENTATIVE MIKE KELLY, SPONSOR, reported that the bill
would allow firearms built in Alaska for use in Alaska not
be subject to federal regulations and would permit the
Attorney General to protect anyone who engages in the
production of firearms in Alaska from federal interference.
He thought the bill could cause problems at the federal
level, but he believed it shouldn't.
10:28:10 AM
DEREK MILLER, STAFF, REPRESENTATIVE MIKE KELLY, shared the
sectional analysis. Section 1 is a findings section
declaring the authority of the Act to be the Second, Ninth,
and Tenth Amendments to the Constitution of the United
States. Section 2 is the Alaska Firearm Freedom Act as
stated in the bill. It declares that a personal firearm, a
firearm accessory, or ammunition that is manufactured
commercially or privately in Alaska and that remains in the
state is not subject to federal law or regulation.
Co-Chair Hoffman noted an indeterminate fiscal note from
the Department of Law.
10:30:29 AM
GARY MARBUT, SHOOTING SPORTS ASSOCIATION, MONTANA,
explained that he wrote the Firearms Freedom Act and seven
states now have this law. It has been introduced in 20
other states. It is a states' rights challenge to federal
commerce clause authority. He spoke about the economic
impact of this legislation to Alaskans. He suggested there
would be no litigation from the federal government. There
is currently private litigation regarding the legislation
in Montana. He said that the purpose of the legislation is
to challenge the federal government and overturn the
commerce clause precedent.
10:33:24 AM
Senator Huggins asked which categories of firearms would
qualify under the bill. He wondered if the Kodiak Company
that markets bullets nationally would qualify. Mr. Marbut
stated that existing manufacturers must have federal
firearms licenses and would not avail themselves of this
legislation. He gave an example of smaller, local shops
that would qualify.
Senator Huggins asked if two examples of hypothetical guns
would qualify. Mr. Marbut said the first example would not,
but the second one would. Only an Alaska-made gun would
qualify.
Senator Olson asked if handguns are included in the bill.
Mr. Marbut said they were.
HB 186 was heard and HELD in Committee for further
consideration.
10:37:11 AM
CS FOR HOUSE BILL NO. 319(FIN)
"An Act relating to firearms; and providing for an
effective date."
REPRESENTATIVE MIKE HAWKER, SPONSOR, reported on HB 319. He
termed it a housekeeping bill. Its purpose is to protect
Alaskan's citizens' rights to own and possess firearms. He
acknowledged Senator Coghill's participation in the
legislation. He explained the concealed handgun carry
permit. The bill clarifies that a permit does not have to
be surrendered when it expires or when a permit holder
moves out of the state. It also clarifies that an expired
permit can be displayed as long as the permit holder is not
claiming that it is a valid permit.
10:40:29 AM
Representative Hawker continued to explain that HB 319
requires the Department of Public Safety to mail a notice
to the permit holder at least 90 days prior to the
expiration of a permit. It also allows the Department of
Public Safety to use electronic applications and post the
regulations and statutes on its website, instead of
providing paper copies.
10:42:09 AM
Representative Hawker related that the bill also requires
the chief law enforcement officer (CLEO) in Alaska
jurisdictions to complete, in a timely manner, the required
certification on an application to the Bureau of Alcohol
Tobacco, Firearms and Explosives (BATFE) for approval to
transfer a firearm registered under the National Firearms
Act (NFA) of 1934 to a person who is qualified under state
law to possess the firearm. The CLEO certification is a
mandatory step in the BATFE transfer process and
unjustified delays in processing or refusal to cooperate
compromise Second Amendment rights.
10:45:35 AM
Representative Hawker read the CLEO certification:
I have no information indicating the transferee will
use the firearm or device described in this
application for other than lawful purposes. I have no
information that the receipt or possession of the
firearm or device described in this document would
place the transferee in violation of a state or local
law.
Representative Hawker voiced concern about a CLEO officer
abusing the transfer process. The bill would place a duty
upon CLEO's to execute the forms. Execute means exercising
judgment, in this case. He stressed that the legislation is
important to improving rights for citizens.
10:48:19 AM
Co-Chair Stedman noted two zero fiscal notes, one from the
Department of Public Safety and one from the Department of
Law.
DAN BOONE, JUNEAU, testified in support of HB 319. He
shared his experience with a CLEO not signing an
application, therefore putting a heavy burden on
beneficiaries of an estate. He also shared his thoughts
from the perspective of a small firearms business. He spoke
strongly in favor of the legislation.
10:51:53 AM
KATHY MONFREDA, CHIEF, CRIMINAL RECORDS AND IDENTIFICATION
BUREAU, DIVISION OF STATEWIDE SERVICES, DEPARTMENT OF
PUBLIC SAFETY (via teleconference), stated support for the
bill. However, she cautioned that the measure could
jeopardize reciprocity with other states.
Senator Huggins reported hearing a lot of concern about the
subject. He recalled Representative Foster's favorable
opinion of this type of legislation.
Representative Hawker addressed the Department of Public
Safety's concern about reciprocity. He reported that
conversations with other states have shown that there is
not a problem. He believed the core issue was state
residency. To have a concealed weapon permit, a person is
not mandated to be an Alaska state resident. A person must
be a state resident to acquire the license in Alaska and
can maintain it when moving around the country. In
particular, he mentioned Colorado as a state about which
there had been department concerns. He stated that he had
no anxiety about reciprocity.
HB 319 was heard and HELD in Committee for further
consideration.
HOUSE BILL NO. 315
"An Act relating to public accounting; and providing
for an effective date."
HB 315 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 10:55 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 168 Amendment 1 Ellis 041310.pdf |
SFIN 4/13/2010 9:00:00 AM |
HB 168 |
| HB 315 Proposed SCS Version R 041310.pdf |
SFIN 4/13/2010 9:00:00 AM SFIN 4/13/2010 1:30:00 PM SFIN 4/13/2010 2:30:00 PM |
HB 315 |