03/03/2021 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB69 | |
| SB54 | |
| SB55 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 69 | TELECONFERENCED | |
| += | SB 54 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
| += | SB 9 | TELECONFERENCED | |
| + | SJR 9 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 3, 2021
1:30 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Roger Holland, Vice Chair
Senator Joshua Revak (via teleconference)
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 69
"An Act extending an exemption from regulation as a public
utility for plants and facilities generating electricity
entirely from renewable energy resources; and providing for an
effective date."
- MOVED SB 69 OUT OF COMMITTEE
SENATE BILL NO. 54
"An Act authorizing and relating to the issuance of bonds by the
Alaska Housing Finance Corporation for safe and clean water and
hygienic sewage disposal facility capital projects and
transportation projects; providing for the repayment of the
bonds and bond costs; relating to the dividend paid to the state
by the Alaska Housing Finance Corporation; and providing for an
effective date."
- MOVED SB 54 OUT OF COMMITTEE
SENATE BILL NO. 55
"An Act relating to employer contributions to the Public
Employees' Retirement System of Alaska; and providing for an
effective date."
- MOVED SB 55 OUT OF COMMITTEE
SENATE BILL NO. 9
"An Act relating to alcoholic beverages; relating to the
regulation of manufacturers, wholesalers, and retailers of
alcoholic beverages; relating to licenses, endorsements, and
permits involving alcoholic beverages; relating to common
carrier approval to transport or deliver alcoholic beverages;
relating to the Alcoholic Beverage Control Board; relating to
offenses involving alcoholic beverages; amending Rule 17(h),
Alaska Rules of Minor Offense Procedure; and providing for an
effective date."
- SCHEDULED BUT NOT HEARD
SENATE JOINT RESOLUTION NO. 9
Urging the United States Congress to exempt cruise ships from
certain provisions of the Passenger Vessel Services Act and
other applicable provisions of federal law for the period during
which Canadian ports are closed to cruise ships carrying more
than 100 people; and urging the President of the United States
not to fine or take actions against cruise ships sailing to the
state.
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 69
SHORT TITLE: EXEMPT RENEWABLE ENERGY ELECTRIC PLANTS
SPONSOR(s): SENATOR(s) REVAK
02/03/21 (S) READ THE FIRST TIME - REFERRALS
02/03/21 (S) L&C
02/10/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/10/21 (S) <Bill Hearing Canceled>
02/15/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/15/21 (S) Heard & Held
02/15/21 (S) MINUTE(L&C)
03/03/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 54
SHORT TITLE: AHFC WATER & SEWER BONDS/TRANSPORTATION
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/25/21 (S) READ THE FIRST TIME - REFERRALS
01/25/21 (S) L&C, FIN
02/24/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/24/21 (S) Heard & Held
02/24/21 (S) MINUTE(L&C)
03/03/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 55
SHORT TITLE: EMPLOYER CONTRIBUTIONS TO PERS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/25/21 (S) READ THE FIRST TIME - REFERRALS
01/25/21 (S) L&C, FIN
02/22/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/22/21 (S) Heard & Held
02/22/21 (S) MINUTE(L&C)
03/03/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
BRYAN BUTCHER, CEO/Executive Director
Alaska Housing Finance Corporation (AHFC)
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Explained that SB 54 authorizes AHFC to sell
tax-exempt capital project bonds, primarily for transportation
and village safe water projects.
ROB CARPENTER, Deputy Commissioner
Department of Transportation and Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided information
related to SB 54.
NEIL STEININGER, Director
Office of Management and Budget
Office of the Governor
Juneau, Alaska
POSITION STATEMENT: Provided information and answered questions
related to SB 55 on behalf of the administration.
ACTION NARRATIVE
1:30:27 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:30 p.m. Present at the call to
order were Senators Gray-Jackson, Holland, Revak (via
teleconference), and Chair Costello. Senator Stevens arrived
soon thereafter.
SB 69-EXEMPT RENEWABLE ENERGY ELECTRIC PLANTS
1:31:25 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO. 69
"An Act extending an exemption from regulation as a public
utility for plants and facilities generating electricity
entirely from renewable energy resources; and providing for an
effective date."
She noted that public testimony was closed and the intention was
to hear from the sponsor and move the bill from committee.
1:31:47 PM
SENATOR JOSH REVAK, speaking as the sponsor via teleconference,
summarized that the bill is an [extension] of the exemption for
small, private sector businesses from additional regulatory
burden. He noted that Alaska is the only state that has this
additional regulatory burden.
1:32:26 PM
SENATOR GRAY-JACKSON noted the letter from the Alaska Power
Association and expressed hope that as a representative of small
electric utilities, APA would have an opportunity to address its
concerns when the bill goes through the public process in the
House.
1:33:37 PM
SENATOR STEVENS joined the committee.
CHAIR COSTELLO said she informed the sponsor of the letter from
APA in opposition to SB 69. The letter arrived after public
testimony closed but she committed to follow the bill through
the House process.
She listed the individuals online who were available to answer
questions.
1:35:06 PM
SENATOR HOLLAND noted that he talked to the sponsor about
potentially removing the additional regulatory burden for all
small businesses, not just the ones that sell renewable energy.
He acknowledged that it was too late for the Senate to consider
that in this legislation.
CHAIR COSTELLO said the committee would be interested in
pursuing that idea.
SENATOR GRAY-JACKSON said she wanted to make sure the APA
representative who was listening on line was aware of the next
process for the bill.
CHAIR COSTELLO explained that once the bill passes the Senate it
goes to the House where it will go through the committee process
and then the floor. She noted that the sponsor indicated he was
willing to work with ATA during that process.
1:37:15 PM
At ease
1:37:47 PM
CHAIR COSTELLO reconvened the meeting and solicited a motion.
1:37:52 PM
SENATOR HOLLAND moved to report SB 69, [work order 32- LS0432\A],
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO found no objection and SB 69 was reported from
the Senate Labor and Commerce Standing Committee.
1:38:23 PM
At ease
SB 54-AHFC WATER & SEWER BONDS/TRANSPORTATION
1:41:07 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SENATE BILL NO. 54, "An Act authorizing and
relating to the issuance of bonds by the Alaska Housing Finance
Corporation for safe and clean water and hygienic sewage
disposal facility capital projects and transportation projects;
providing for the repayment of the bonds and bond costs;
relating to the dividend paid to the state by the Alaska Housing
Finance Corporation; and providing for an effective date."
She advised that SB 54 was introduced on behalf of the governor.
This was the second hearing and the intention was to take public
testimony and look to the will of the committee. She noted that
the next committee of referral was Finance.
CHAIR COSTELLO asked Stacy Barnes if she would like to comment
on the bill.
1:42:02 PM
STACY BARNES, Director, Governmental Relations and Public
Affairs, Alaska Housing Finance Corporation, Anchorage, Alaska,
deferred comment to CEO Bryan Butcher.
CHAIR COSTELLO asked Mr. Butcher to give the members a brief
review of the bill.
1:42:55 PM
BRYAN BUTCHER, CEO/Executive Director, Alaska Housing Finance
Corporation (AHFC), Department of Revenue (DOR), Anchorage,
Alaska, explained that SB 54 authorizes AHFC to sell $101.63
million in tax-exempt capital project bonds to fund DEC and
DOTPF federal match in the capital budget, primarily for
transportation and village safe water projects. The debt service
on the 20-year bonds would come out of the corporation's annual
dividend to the state. He noted that the dividend has been over
$40 million the last several years and has the capacity to pay
between $6 million and $7 million a year in debt service. This
depends on the interest rate when the bonds go to market, but
the expectation is that rates will remain low.
CHAIR COSTELLO asked if AHFC's AA+ bond rating is separate from
the state.
MR. BUTCHER agreed that was correct.
CHAIR COSTELLO mentioned who was available to answer questions.
1:44:55 PM
SENATOR GRAY-JACKSON noted that she received, but had not
reviewed, the list of shovel-ready projects that she requested
during the last hearing.
CHAIR COSTELLO asked if she would like the committee to take an
at-ease to look at the list before moving the bill.
SENATOR GRAY-JACKSON replied it is 71 pages and she would look
at it later.
CHAIR COSTELLO asked Mr. Butcher to describe the process to
develop the list.
1:46:04 PM
MR. BUTCHER explained that AHFC informed the governor's office
of the level of bonds that the corporation could fund. The
governor's office submitted the list of projects to AHFC to
ensure that they fit under the IRS requirements. AHFC had no
input on the specific projects but the OMB director indicated
they emphasized federal match that needed to occur as the best
place for the funds.
SENATOR GRAY-JACKSON asked what percentage of the projects are
for Anchorage.
MR. BUTCHER deferred the question to Rob Carpenter with DOTPF.
CHAIR COSTELLO asked Mr. Carpenter to respond to Senator Gray-
Jackson. She also asked what percentage of the list applies to
statewide airports and whether it includes money for maintenance
of airports or just construction.
1:48:16 PM
ROB CARPENTER, Deputy Commissioner, Department of Transportation
and Public Facilities (DOTPF), Juneau, Alaska, offered to follow
up with the specific information Senator Gray-Jackson requested
as well the information about aviation. He noted that Anchorage
typically receives roughly 50 percent of the Statewide
Transportation Improvement Plan (STIP) funding. The money for
the Airport Improvement Program (AIP) comes from the Federal
Aviation Administration (FAA) and it typically goes for rural
airport construction work such as runway resurfacing and apron
expansion, not things like plowing.
1:49:30 PM
SENATOR STEVENS asked for an analysis of what the rest of the
state receives after Anchorage gets 50 percent.
MR. CARPENTER agreed to provide the information.
SENATOR GRAY-JACKSON asked if the Port of Alaska qualifies for
any of the money.
MR. CARPENTER answered mostly no. These Title 23 federal highway
projects are generally restricted to maintenance. Funding for
the Port of Anchorage would be restricted to roadways leading to
the port and potentially for freight staging areas.
CHAIR COSTELLO found no further questions and solicited a
motion.
1:51:45 PM
SENATOR HOLLAND moved to report SB 54, [work order 32-GS1713\A],
from committee with individual recommendations and attached
fiscal note(s).
1:52:04 PM
At ease
1:53:39 PM
CHAIR COSTELLO reconvened the meeting and recognized Senator
Holland.
1:53:42 PM
SENATOR HOLLAND withdrew the previous motion.
1:53:51 PM
CHAIR COSTELLO opened public testimony on SB 54; finding none,
she closed public testimony on SB 54.
1:54:29 PM
SENATOR HOLLAND moved to report SB 54, [work order 32-GS1713\A],
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO found no objection and SB 54 was reported from
the Senate Labor and Commerce Standing Committee.
1:54:52 PM
At ease
SB 55-EMPLOYER CONTRIBUTIONS TO PERS
1:57:41 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SENATE BILL NO. 55, "An Act relating to
employer contributions to the Public Employees' Retirement
System of Alaska; and providing for an effective date."
CHAIR COSTELLO recounted that this was the second hearing and
the intention was to hear invited and public testimony before
looking to the will of the committee.
1:58:33 PM
NEIL STEININGER, Director, Office of Management and Budget,
Office of the Governor, Juneau, Alaska, summarized that SB 55
provides tools to change how the state finances its retirement
obligations to allow cost sharing with the federal government
and other partners. He clarified that the state intends to
continue to fully fund its retirement obligations at the
actuarial cost. Furthermore, the state intends to continue to
provide the same retirement benefits to current and future
retirees.
SENATOR STEVENS asked if OMB would recommend that the state
revisit the idea of paying down the retirement obligation as it
did some years ago.
MR. STEININGER suggested he was referring to the $3 billion
deposit in FY15.
SENATOR STEVENS agreed.
MR. STEININGER said the $3 billion deposit was a good decision
at the time and would be again if the resources were available.
However, it is not an option in the state's current financial
situation.
SENATOR STEVENS responded, "You are not recommending any pay
down this year then."
MR. STEININGER answered no; OMB's recommendation is to meet the
statutory actuarial obligation and continue to do so, but not
make any lump sum deposits this year.
CHAIR COSTELLO asked if he was aware of any opposition to the
bill
MR. STEININGER answered no.
2:01:28 PM
SENATOR GRAY-JACKSON asked him to restate that employees will
not be required to make additional contributions.
MR. STEININGER answered, "There is no change to the employee
experience contribution; there is no additional contribution
that any employee will have to make." The bill simply addresses
the costs on the state's side.
SENATOR GRAY-JACKSON asked him to confirm that the retirement
contributions for the state and the employees will remain whole
MR. STEININGER answered that is correct.
2:02:06 PM
SENATOR STEVENS asked him to remind the committee of the share
that communities pay currently and if there was potential that a
larger share may be required in the future.
MR. STEININGER replied that 22 percent is the cap on the share
from communities; SB 55 does not seek to change that and there
are no plans to change it going forward. The bill only affects
the State of Alaska portion.
2:03:01 PM
CHAIR COSTELLO opened public testimony on SB 55; finding none,
she closed public testimony on SB 55 and solicited the will of
the committee.
2:03:31 PM
SENATOR HOLLAND moved to report SB 55, [work order 32-GS1684\A],
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO found no objection and SB 55 was reported from
the Senate Labor and Commerce Standing Committee.
2:03:49 PM
At ease
2:05:18 PM
CHAIR COSTELLO reconvened the meeting and advised that the
committee was waiting for an amendment on SB 9 so it would not
be heard today.
2:05:48 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:05 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 69 Written Testimony Alaska Power Association.pdf |
HL&C 4/26/2021 3:15:00 PM SL&C 3/3/2021 1:30:00 PM |
SB 69 |
| SB 69 List of renewable facilities 2010-2021.pdf |
HL&C 4/26/2021 3:15:00 PM SL&C 3/3/2021 1:30:00 PM |
SB 69 |
| SB 9 Letter of Support MSHF.pdf |
SFIN 5/3/2021 9:00:00 AM SL&C 3/3/2021 1:30:00 PM |
SB 9 |
| SJR 9 v. B.PDF |
SL&C 3/3/2021 1:30:00 PM |
SJR 9 |
| SJR 9 Supporting Document KTOO.pdf |
SL&C 3/3/2021 1:30:00 PM |
SJR 9 |
| SJR 9 Letters of Support.pdf |
SL&C 3/3/2021 1:30:00 PM |
SJR 9 |