Legislature(2011 - 2012)SENATE FINANCE 532
04/11/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB160 | |
| HB60 | |
| HB78 | |
| HB261 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 25 | TELECONFERENCED | |
| += | SB 160 | TELECONFERENCED | |
| + | HB 60 | TELECONFERENCED | |
| + | HB 78 | TELECONFERENCED | |
| + | HB 261 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 11, 2012
9:32 a.m.
9:32:31 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:32 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Weston Eiler, Staff, Senator Bert Stedman; Representative
Paul Seaton; Representative Bob Herron; Marie Darlin,
Alaska Association of Retired Persons; Representative Bryce
Edgmon; Senator Gary Stevens
PRESENT VIA TELECONFERENCE
Jeff Hetrick, Director, Alutiiq Pride Shellfish Hatchery,
Seward; Roger Peinter, President, Alaska Shellfish Growers
Association, Kake; Karen Purdue, President & CEO, Alaska
State Hospital and Nursing Home Association, Anchorage
SUMMARY
SB 25 AIDEA SUSTAINABLE ENERGY PROGRAM
SB 25 was SCHEDULED but not HEARD.
SB 160 BUDGET: CAPITAL
CSSB 160(FIN) was REPORTED out of committee with
a "do pass" recommendation.
HB 60 GEODUCK AQUATIC FARMING/SEED TRANSFER
HB 60 was HEARD and HELD in committee for further
consideration.
HB 78 INCENTIVES FOR CERTAIN MEDICAL PROVIDERS
HB 78 was HEARD and HELD in committee for further
consideration.
HB 261 COMMERCIAL FISHING ENTRY PERMIT LOANS
HB 261 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 160
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
9:33:51 AM
Co-Chair Hoffman MOVED to ADOPT the proposed committee
substitute for SB 160, Work Draft 27-GS2600\X (Martin,
4/10/12)as a working document.
Co-Chair Stedman OBJECTED for the purpose of discussion.
WESTON EILER, STAFF, SENATOR BERT STEDMAN, spoke to the
changes in the Work Draft, and referred to the "2012
Legislature-Capital Budget; House District Summary-SCS 2
Structure" (copy on file). He explained that the
spreadsheet outlined the changes between the two versions
of the bill. He remarked that the overall aggregate change
was $87.2 million of cuts, with $88.1 million added. He
noted that the changes "netted out", so the overall total
of the budget did not change.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
FURTHER OBJECTION, Work Draft 27-GS2600\X was ADOPTED.
9:35:39 AM
Mr. Eiler explained that Section 1 outlined the capital
budget, and constituted $2.57 billion in total projects. He
highlighted the individual policy areas that the committee
had developed on the capital budget. He pointed out that
$710 million was appropriated for transportation projects:
Port of Anchorage, $25 million; statewide digital mapping,
$15.9 million; replacement for the pier in Kodiak, $18.1
million; Statewide Roads to Resources Package, $81 million;
repairs to the state-owned Ketchikan shipyard, $10 million;
and an Arctic port study, $5 million. He explained that
$340 million was appropriated for education projects: two
engineering buildings at the University of Alaska Anchorage
(UAA) and University of Alaska Fairbanks (UAF), $105
million; state library archives building, $49 million;
Fairbanks Pipeline Training Center, $6 million; and
community library matching grants, $22.3 million. He
highlighted the energy appropriations, which totaled $190
million: weatherization and energy rebate programs, $66.5
million; AEA Renewable Energy Grant, $25 million; and
various regional energy improvements and planning, $45
million. He discussed the health care appropriations, which
totaled $70 million: Tribal Wellness Center in Kenai, $15
million; a drug treatment center in Southwest Alaska, $12.7
million; and various improvements to community hospitals
and rural clinics, $18 million. He concluded that the total
for Section 1 was $2.57 billion, which constituted the FY
13 capital budget.
Mr. Eiler looked at Sections 2 and 3, which outlined fund-
source details of Section 1. He stated that Section 4 was
the corresponding appropriating language for the general
obligation (GO) and transportation bond bill that was
currently considered by the legislature. He explained that
bond bills were not considered appropriation bills.
Mr. Eiler explained that Sections 5 and 6 were fund-source
details for the GO bond authorization and appropriation
language.
9:40:57 AM
Mr. Eiler stated that Section 7 was the FY 12 Supplemental
Capital Budget, which included projects that had been
removed from the "fast track" supplemental budget. It
included several amendments from the governor, specifically
the Alaska Aerospace Corporation launch pad at Kodiak
Island effective date. The total for the FY 12 Supplemental
Capital Budget in Section 7 of the CS was $60.6 million. He
explained that Sections 8 and 9 were fund-source details
for Section 7. He stated that Section 10 outlined the FY 12
Supplemental Operating Budget, which totaled $43.5 million.
He explained that Sections 11 and 12 were fund-source
details for Section 10. He noted that Sections 13 to 17
were fund transfers and various fund capitalizations. He
pointed out Section 14, which appropriated $60 million for
general fund reimbursements at the request of the
administration. He explained that Sections 18 to 38 were
legislative reappropriations and scope changes for 44
various legislative and state grants. He stated that
Section 39 relieved loan balances for certain recipients of
the Alaska Municipal Bond Bank to the amount of $13.2
million, and debt relief for the Inter-Island Ferry
Authority to the amount of $1.3 million. He stated that
Section 43 contained contingency language that required the
enactment of GO bond legislation and voter approval of the
bond bill and proposed transportation bonding and
authorized appropriations referenced previously in the
bill. He explained that Sections 44 to 47 were the
effective date clauses.
9:45:54 AM
AT EASE
10:04:28 AM
RECONVENED
10:04:34 AM
Co-Chair Hoffman MOVED to report CSSB 160(FIN) out of
committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSSB 160(FIN) was REPORTED out of committee with a "do
pass" recommendation.
HOUSE BILL NO. 60
"An Act relating to aquatic farm permitting involving
geoducks and to geoduck seed transfers between
certified hatcheries and aquatic farms."
10:05:19 AM
REPRESENTATIVE PAUL SEATON, introduced HB 60 and referred
to the sponsor statement (copy on file).
Shellfish farming has the potential to diversify the
economic base of coastal communities impacted by the
changing dynamics of the fishing industry. HB 60
allows this expansion of this clean water industry by
permitting geoducks to be farmed sub tidally in the
Gulf of Alaska even if wild geoducks are not present.
The bill does not exempt farmers from any health,
safety, or other transfer provisions relating to
hatchery seed.
The Alutiiq Pride Shellfish Hatchery is the only
hatchery that supplies mariculture spat and seed in
the State. It was initiated by the State to be a self-
sustaining operation in association with the private
mariculture farms permitted by the State. Their
business plan relies on the sale of geoduck seed.
However, an informal policy of the Department of Fish
and Game prevents geoduck seed from being utilized by
farms anywhere outside of southeast Alaska. These
restrictions on the sale of geoduck seed cause the
sole hatchery for the mariculture industry in Alaska
to require continual subsidy by the State. HB 60 will
allow the mariculture industry to develop around the
Gulf of Alaska, providing a potentially strong market
for seed and private sector financing for the
operation of the hatchery.
As non-mobile filter feeders eating plankton, farmed
geoducks will not prey on any local commercial, sport
or personal use fish. There have been no reports of
species displacement in the sedimentary habitat by
geoduck clams. Farmed geoducks will not interfere with
personal recreational boaters as they are cultivated
in the sediment below low tide and without the
numerous buoys and floating cages used in oyster
farms. No infectious disease has been identified in
any wild geoduck population or the geoduck farming
industries of Washington, British Columbia, or Alaska.
The conflict involving geoducks in southeast Alaska is
between the dive fishermen who harvest wild stock and
farmers who wish to farm in areas with existing wild
stock. HB 60 would circumvent this conflict because
there is no wild geoduck stock in the proposed area.
This bill will not override any Department of Natural
Resources farm site leasing or Department of Fish &
Game permit regulation.
HB 60 eliminates unnecessary hindrances to the growth
of the mariculture industry in Alaska and provides a
potential alternative economic
10:09:48 AM
JEFF HETRICK, DIRECTOR ALUTIIQ PRIDE SHELLFISH HATCHERY,
SEWARD (via teleconference), testified in support of HB 60
and related that legislation reflected the support of the
Mariculture Industry. He shared that geoducks would grow
well in southeast Alaska and that they would not conflict
with any natural species.
ROGER PEINTER, PRESIDENT, ALASKA SHELLFISH GROWERS
ASSOCIATION, KAKE (via teleconference), expressed support
for HB 60 and stated the legislation was a clean economic
development opportunity for south central Alaska.
Co-Chair Stedman discussed the two zero fiscal notes from
the Department of Natural Resources (DNR) and Department of
Fish and Game (DFG).
HB 60 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 78(FIN)
"An Act establishing a loan repayment program and
employment incentive program for certain health care
professionals employed in the state; and providing for
an effective date."
10:13:37 AM
REPRESENTATIVE BOB HERRON, introduced HB 78 and stated that
the bill would provide financial incentives for healthcare
throughout the state. He furthered that Alaska needed
healthcare occupations filled, and the bill provided
incentives for people to live and work in Alaska in the
specific health care fields.
Co-Chair Stedman noted the one zero fiscal note from
Department of Education and Early Development (DEED) and
one fiscal impact note from Department of Health and Social
Services (DHSS).
MARIE DARLIN, ALASKA ASSOCIATION OF RETIRED PERSONS,
testified in support of HB 78. She explained that Alaska
had the highest percentage of retired persons in the
country who decide to stay in their home state after
retirement. She stressed that it was critical to the
seniors' health care that the health care positions be
filled with competent employees.
10:16:44 AM
KAREN PURDUE, PRESIDENT & CEO, ALASKA STATE HOSPITAL AND
NURSING HOME ASSOCIATION, ANCHORAGE (via teleconference),
spoke in strong support of HB 78. She stated that the
Nursing Home Association represented all the hospitals in
Alaska and that it employed about half of the healthcare
professionals in Alaska. She concluded and that the
legislation would assist with recruiting and retaining
healthcare professionals.
Senator Olson voiced his strong support or HB 78. He felt
that the Alaska population faced decreasing resources and
decreasing medical care, so Alaska needed to "step up to
the band wagon."
HB 78 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 261(FIN)
"An Act relating to loans for the purchase of
commercial fishing entry permits; and providing for an
effective date."
10:18:57 AM
REPRESENTATIVE BRYCE EDGMON, introduced HB 261 and
explained that the legislation would access the Commercial
Fishing Revolving Loan Act Fund and increased the ceiling
limit for the Section B component from $100,000 to
$200,000. It allowed for qualifying Section A applicants to
participate in the Section B component of the Commercial
Fishing Revolving Loan Act.
Co-Chair Stedman noted the zero fiscal notes from
Department of Commerce, Community and Economic Development
(DCCED) and DFG.
HB 78 was HEARD and HELD in committee for further
consideration.
10:20:17 AM
RECESSED
1:09:20 PM
RECONVENED
ADJOURNMENT
1:09:38 PM
The meeting was adjourned at 1:09 PM.