Legislature(2015 - 2016)SENATE FINANCE 532
04/18/2015 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB105 | |
| HB41 | |
| Committee Contract: Bill Streur | |
| HB41 | |
| HB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 105 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 41 | TELECONFERENCED | |
| += | HB 178 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 18, 2015
9:10 a.m.
9:10:45 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:10 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Erin Shine, Staff, Senator Anna MacKinnon; Gene Therriault,
Deputy Director, Statewide Energy Policy Development,
Alaska Energy Authority, Department of Commerce, Community
and Economic Development; Fred Parady, Deputy Commissioner,
Department of Commerce, Community, and Economic
Development; Crystal Koeneman, Staff, Representative Cathy
Munoz; Ben Mulligan, Special Assistant, Department of Fish
and Game; Ben Ellis, Director, Parks and Recreation,
Department of Natural Resources.
PRESENT VIA TELECONFERENCE
Alpheus Bullard, Staff, Legislative Legal, Juneau; Dick
Rohrer, Self, Kodiak.
SUMMARY
CSHB 41(FIN)am
SPORT FISHING SERVICES
CSHB 41(FIN)am was HEARD and HELD in committee
for further consideration.
HB 178 WORKERS' COMP MEDICAL FEES; DELAY
HB 178 was SCHEDULED but not HEARD.
CSHB 105(FIN)
AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT
SCS CSHB 105(FIN) was REPORTED out of committee
with a "do pass" recommendation and with one new
zero fiscal note from Department of Commerce,
Community and Economic Development.
COMMITTEE CONTRACT: BILL STREUR
CS FOR HOUSE BILL NO. 105(FIN)
"An Act relating to the programs and bonds of the
Alaska Industrial Development and Export Authority;
relating to the Alaska Industrial Development and
Export Authority sustainable energy transmission and
supply development fund; requiring the Alaska
Industrial Development and Export Authority to deliver
to the legislature reports relating to the Interior
energy project; relating to the financing
authorization through the Alaska Industrial
Development and Export Authority of a liquefied
natural gas production plant and natural gas energy
projects and distribution systems in the state;
amending and repealing bond authorizations granted to
the Alaska Industrial Development and Export
Authority; authorizing the Alaska Industrial
Development and Export Authority to issue bonds to
finance the infrastructure and construction costs of
the Sweetheart Lake hydroelectric project; authorizing
the Alaska Industrial Development and Export Authority
to issue bonds to finance the infrastructure and
construction costs of rebuilding transmission between
the Hope substation and Portage, rebuilding
transmission between Powerline Pass to Indian, and the
Eklutna hydroelectric transmission system upgrade
project; relating to legislative approval for loans
from the power project fund to the City of King Cove;
and providing for an effective date."
9:11:47 AM
Vice-Chair Micciche MOVED to ADOPT the proposed committee
substitute for CSHB 105(FIN), Work Draft 29-GH1019\F
(Shutts, 4/17/15). Co-Chair MacKinnon OBJECTED for
discussion.
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, explained that
the committee substitute incorporated components of SB 50
and HB 105. She stated that there was an expanded title on
page one. Section 1 was intent language that had not
changed from the root version. She looked at Section 2,
which raised the limitations on amounts that the Alaska
Industrial Development and Export Authority (AIDEA) could
bond without legislative approval. She looked at Section 3,
which would raise the bonding level. She furthered that
there was an amendment on page 3, line 4 and 5, which
changed the word, "law" to "the legislature." Section 4
raised the bonding level for AIDEA from $20 million to $25
million. Section 5 was the beginning of many sections that
placed sideboards on the EIP project. She noted that
Sections 6, 7, and 8 incorporated most of the language from
the House version of the bill. Section 9 included added
language from the House version. Section 10 incorporated a
bonding amendment, which reduced the funds from $85 million
to $28 million. Section 11 was a repealer section, which
was original language from the governor's introduced
legislation. Section 12 was the report language that was in
each version of the bill.
Co-Chair MacKinnon REMOVED her objection. There being NO
OBJECTION, Work Draft 29-GH1019\F was ADOPTED.
GENE THERRIAULT, DEPUTY DIRECTOR, STATEWIDE ENERGY POLICY
DEVELOPMENT, ALASKA ENERGY AUTHORITY, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, thanked the
committee for their efforts. He believed that the committee
substitute contain all the critical language for the IEP.
Co-Chair MacKinnon asked that Mr. Therriault study the
bill, and be available later in the day for questions.
Co-Chair MacKinnon wondered if Mr. Parady had any
additional comments.
FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY, AND ECONOMIC DEVELOPMENT, stated that he had no
additional comments.
Vice-Chair Micciche wondered where in the legislation the
phrase, "propane air mixture" was included. Mr. Therriault
replied that propane delivered in a pipe system there was a
mixture of air to lower the BPU content to an appropriate
level for the appliances.
CSHB 105(FIN) was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 41(FIN) am
"An Act relating to sport fishing services, sport
fishing operators, and sport fishing guides; and
providing for an effective date."
9:19:00 AM
CRYSTAL KOENEMAN, STAFF, REPRESENTATIVE CATHY MUNOZ,
explained the legislation. The sport fishing guide and
operator licenses were originally adopted by the
legislature in 2004 and implemented by the Department of
Fish and Game (ADF&G) for the 2005 fishing season. These
licenses have proven useful and valuable both to sport
fishing businesses and the recreational anglers they serve.
The guide and operator licenses help mitigate unmanaged
growth of the charter fishing sector while ensuring a basic
level of professional certification for individuals who
serve the guided recreational fishing public. HB 41 re-
establishes the sport fishing guide and operator licenses
which had sunset on December 31, 2014. In re-establishing
this licensing program for recreational fishing guides, it
also amends the previously existing fee structure to double
licensing fees necessary to ensure the program is budget
neutral. The 2014 sunset was not an intentional policy
decision by the 28th Alaska State Legislature, but rather
an unintentional oversight arising from a failure to act on
a piece of legislation that contained the re-authorization
language. It is the intent of the sponsors to re-establish
these licenses that have benefitted the guided sport
fishing industry and the general public.
Co-Chair MacKinnon requested a sectional analysis. Ms.
Koeneman explained the Sectional Analysis (copy on file):
Section 1 - Effective January 1, 2016; establishes
license fees at the rate of $200 for operators, $100
for guides, and $200 combined.
Co-Chair MacKinnon wondered if the operator fee was $200 or
$20. Ms. Koeneman stated that the fee was $200.
Ms. Koeneman continued with the Sectional Analysis:
Section 2 - Effective January 1, 2016; Amends
16.05.395 Sport fishing vessel registration; updates
the statute references to reflect the reinstated
program.
Section 3 - Effective January 1, 2026; removes the
language in Section 4 to reflect the 10 year sunset
provision.
Vice-Chair Micciche wondered if the committee had the
correct sectional analysis.
9:21:58 AM
AT EASE
9:24:34 AM
RECONVENED
9:24:39 AM
Ms. Koeneman continued to discuss the Sectional Analysis.
Section 4 - Effective January 1, 2016; Reestablishes
the Sport fishing operator license, Sport fish guide
license, reporting requirements, penalties, and
definitions; only change to original statute language
is to reflect the updated statute citations.
Section 5 - Effective January 1, 2016; Reestablishes
language in AS 25.27.244(s)(2) as this language was
repealed December 31, 2014; cleanup of statute since
(ii) was repealed in 2005.
Section 6 - Effective January 1, 2016; Reinserts
language into AS 41.21.506 Comprehensive Management
Plan, Regulations that was repealed with the sunset
provision; This language requires the DNR Commissioner
to develop and adopt a management plan for the Kenai
River Special Management Area in conjunction with the
Borough.
Section 7 - Effective January 1, 2026; removes the
language in Section 8 to reflect the 10 year sunset
provision.
Section 8 - Effective January 1, 2026; Repealers for
the 10 year sunset provision.
Sections 9 and 10 - Transitional provision for
regulations with an immediate effective date.
Section 11 - Section 3, 7, and 8 take effect January
1, 2021.
Section 12 - Effective date of January 1, 2016.
Senator Hoffman looked at Section 1, and wondered why an
operator would not obtain a combined license for the same
fee. He specifically queried the reasoning behind the
identical price for an operator's license and combined
license. Ms. Koeneman deferred to Mr. Mulligan. She
furthered that the operator oversaw the entire program, and
the guides worked for the operator.
9:28:18 AM
BEN MULLIGAN, SPECIAL ASSISTANT, DEPARTMENT OF FISH AND
GAME, introduced himself.
Senator Dunleavy wondered if there should be a sunset of
two years, because the fee increases may not be necessary
due to the transfer of written logs to electronic logs. Mr.
Mulligan responded that the plan was to administer a beta
test on the Kenai River in the current year. There was a
hope that the program would be electronic in two years. He
furthered that five years was a conservative timeframe.
Co-Chair MacKinnon shared that she was planning to propose
an amendment that would reduce the timeframe to two years.
Senator Dunleavy surmised that two years was enough time to
transfer to an electronic log, but five years gave ample
time for the transfer. Mr. Mulligan replied in the
affirmative.
9:30:07 AM
AT EASE
9:30:27 AM
RECONVENED
9:31:24 AM
AT EASE
9:38:45 AM
RECONVENED
9:39:02 AM
Vice-Chair Micciche explained that a possible amendment
would adjust Section 6, subsection (g). He hoped that there
would be an addition of the word, "shall", in order to
provide an online course.
Co-Chair MacKinnon shared that she would propose a
conceptual amendment later that would reduce the extension
from five years to two years.
ALPHEUS BULLARD, STAFF, LEGISLATIVE LEGAL, JUNEAU (via
teleconference), introduced himself.
Co-Chair MacKinnon asked for an explanation of the draft
amendment A.5 (copy on file). Mr. Bullard replied that the
required course for guides to work in the Kenai River
Special Management Area would require the department to
offer the course online, in addition to other course
venues.
Co-Chair MacKinnon wondered if there would be an additional
expense to develop an online course. Mr. Mulligan replied
that the program was in Title 41. The Kenai River Special
Management Area was managed by Department of Natural
Resources (DNR), so he could not answer the question.
Co-Chair MacKinnon stated that there may be a new fiscal
note.
DICK ROHRER, SELF, KODIAK (via teleconference), expressed
concern on line 22, page 5. He would like to change the
word "knowingly" to "intentionally." He shared that the
change would refer to untimely reporting of log books and a
violation for not keeping the license on their purpose.
Co-Chair MacKinnon CLOSED public testimony.
Co-Chair MacKinnon stated that the committee was attempting
to contact DNR regarding the possibility of a new fiscal
note related to the amendment.
9:45:16 AM
AT EASE
9:49:38 AM
RECONVENED
9:49:44 AM
Co-Chair MacKinnon remarked that she closed the public
testimony for the legislation.
Co-Chair MacKinnon MOVED to ADOPT Conceptual Amendment 1:
page 2: decrease the five year sunset to a two year
sunset.
Vice-Chair Micciche OBJECTED for discussion.
Co-Chair MacKinnon stated that she wanted to keep the bill
until the following year. The decreased sunset would bring
the bill back to the committee at a sooner date.
Vice-Chair Micciche REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
CSHB 41(FIN)am was HEARD and HELD in committee for further
consideration.
^COMMITTEE CONTRACT: BILL STREUR
9:51:24 AM
Co-Chair Kelly MOVED to extend the contract of Mr. Streur.
The contract would extend over the course of the year.
Vice-Chair Micciche MOVED to authorize the chairs as
procurement officers to extend the contract with Mr.
William Streur for consulting services relating to the
Department of Health and Social Services and Medicaid, not
to exceed a total contract extension of $60,000 for
professional services provided through December 31, 2015.
9:52:44 AM
AT EASE
9:53:43 AM
RECONVENED
CS FOR HOUSE BILL NO. 41(FIN) am
"An Act relating to sport fishing services, sport
fishing operators, and sport fishing guides; and
providing for an effective date."
9:54:21 AM
Co-Chair MacKinnon explained that there was a proposed
conceptual amendment had the word "shall" included. She
wondered if there would be additional cost to provide
online training as related to the word, "shall."
BEN ELLIS, DIRECTOR, PARKS AND RECREATION, DEPARTMENT OF
NATURAL RESOURCES, explained that typically the requirement
to take a guide academy class to qualify to receive a guide
permit was a one week in-person class conducted by the
Kenai Peninsula College. The college created the curriculum
and collected the fees. The division had not examined an
online class, nor the technical ability to offer the class
online. He stated that the draft language would give the
commissioner the ability to offer an online class. He was
comfortable with that language, because there was no
requirement. He felt that the Kenai Peninsula College
should be approached to see if they were interested in
offering an online class.
Senator Bishop wondered if there was a guide program at the
college. Mr. Ellis replied in the affirmative. He explained
that the offered class qualified for the guide education,
as part of the Kenai River Guide stipulation permit through
the division.
Senator Bishop surmised that there may be a discussion with
the college to help set up an online class. Mr. Ellis
replied in the affirmative. He stated that the topic had
catalyzed a conversation regarding the concerns of the in
person and online class options.
9:59:11 AM
Vice-Chair Micciche queried some history on the Kenai River
professional guides and other guide members on the river.
Mr. Ellis explained that there was a growing number of
guides, and it was extremely busy at the time before the
recent decrease in salmon population. Many of the newer
guides had no river experience and how the fishery was
prosecuted. The Professional Guides Association encouraged
the college to offer a class to train the guides. There was
a five year period where current guides could take a class,
and continue as a professional guide. The five year period
had since expired, and the new guides were now required to
attend the class.
Co-Chair MacKinnon clarified that the conceptual amendment
referred to the entire bill.
CSHB 41 was HEARD and HELD in committee for further
consideration.
10:02:06 AM
RECESSED
1:35:34 PM
RECONVENED
CS FOR HOUSE BILL NO. 105(FIN)
"An Act relating to the programs and bonds of the
Alaska Industrial Development and Export Authority;
relating to the Alaska Industrial Development and
Export Authority sustainable energy transmission and
supply development fund; requiring the Alaska
Industrial Development and Export Authority to deliver
to the legislature reports relating to the Interior
energy project; relating to the financing
authorization through the Alaska Industrial
Development and Export Authority of a liquefied
natural gas production plant and natural gas energy
projects and distribution systems in the state;
amending and repealing bond authorizations granted to
the Alaska Industrial Development and Export
Authority; authorizing the Alaska Industrial
Development and Export Authority to issue bonds to
finance the infrastructure and construction costs of
the Sweetheart Lake hydroelectric project; authorizing
the Alaska Industrial Development and Export Authority
to issue bonds to finance the infrastructure and
construction costs of rebuilding transmission between
the Hope substation and Portage, rebuilding
transmission between Powerline Pass to Indian, and the
Eklutna hydroelectric transmission system upgrade
project; relating to legislative approval for loans
from the power project fund to the City of King Cove;
and providing for an effective date."
1:36:30 PM
GENE THERRIAULT, DEPUTY DIRECTOR, STATEWIDE ENERGY POLICY
DEVELOPMENT, ALASKA ENERGY AUTHORITY, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, felt that the
intended language was appropriately incorporated.
Co-Chair MacKinnon looked at page 6, line 22, and remarked
that the word, "propane" was not included.
Co-Chair Kelly queried the draft version. Co-Chair
MacKinnon stated that the bill version was F.
Mr. Therriault deferred to Mr. Parady, regarding the word,
"propane."
FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY, AND ECONOMIC DEVELOPMENT, explained that the
deletion of the word "propane" was due to the feeling that
the phrase "natural gas" would cover the word.
Vice-Chair Micciche stated that technically liquid
petroleum gas was considered "propane." He stated that
adding the word, "propane" at the end of the sentence on
line 22 and after the words "natural gas" on line 24 would
be more appropriate, and expand the potential.
Mr. Parady agreed.
1:38:53 PM
AT EASE
1:39:00 PM
RECONVENED
Vice-Chair Micciche moved Conceptual Amendment 1. He
explained the amendment:
Add "or propane" after the words "natural gas" on line
24.
Co-Chair MacKinnon restated the amendment.
Vice-Chair Micciche explained the fiscal note.
Vice-Chair Micciche felt that the concept was a simple
concept, and would result in generational low energy costs.
Vice-Chair Micciche MOVED to REPORT SCS CSHB 105(FIN) out
of committee with individual recommendations and the
accompanying fiscal note.
SCS CSHB 105(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note from
the Department of Commerce, Community, and Economic
Development.
1:42:04 PM
AT EASE
1:44:17 PM
RECONVENED
Co-Chair MacKinnon discussed housekeeping.
ADJOURNMENT
1:45:08 PM
The meeting was adjourned at 1:45 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 105 Work Draft Version F.pdf |
SFIN 4/18/2015 9:00:00 AM |
HB 105 |