Legislature(1999 - 2000)
04/14/2000 03:25 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES COMMITTEE
April 14, 2000
3:25 p.m.
MEMBERS PRESENT
Senator Rick Halford, Chairman
Senator Robin Taylor, Vice Chairman
Senator Jerry Mackie
Senator Lyda Green
Senator Sean Parnell
Senator Georgianna Lincoln
MEMBERS ABSENT
Senator Pete Kelly
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 304(FIN) am
"An Act relating to issuance and sale of revenue bonds to fund
drinking water projects, to the Alaska clean water fund, to
creation of an Alaska clean water administrative fund and an
Alaska drinking water administrative fund, to fees to be charged
in connection with loans made from the Alaska clean water fund
and the Alaska drinking water fund, and to clarification of the
character and permissible uses of the Alaska drinking water fund;
amending Rule 3, Alaska Rules of Civil Procedure; and providing
for an effective date."
SCHEDULED BUT NOT HEARD
HOUSE BILL NO. 194
"An Act correcting, in the Alaska Disaster Act, a reference to
the former oil and hazardous substance release response fund to
describe that fund by its correct name."
-MOVED HB 194 OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 116(FIN)
"An Act relating to the Board of Agriculture and Conservation, to
the director of agriculture, to the agricultural revolving loan
fund and to loans from the fund, to the disposal of interests in
state agricultural land; and providing for an effective date."
-HEARD AND HELD
PREVIOUS SENATE COMMITTEE ACTION
HB 304 - See Resources minutes dated 4/10/00.
HB 194 - No previous Senate action.
HB 116 - See Resources Committee minutes dated 4/12/00.
WITNESS REGISTER
Ryan Colgan
Staff to Representative Whitaker
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Testified for sponsor of HB 194
Ms. Barbara Cotting
Legislative Aide to Representative James
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Testified for the sponsor of HB 116
Representative Jeanette James
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 116
Mr. Rob Wells, Director
Division of Agriculture
Department of Natural Resources
1800 Glenn Highway, Suite 12
Palmer, AK 99645
POSITION STATEMENT: Expressed concerns about HB 116
Ms. Elizabeth Hickerson
Assistant Attorney General
Department of Law
1031 W 4th Ave., Suite 200
Anchorage, AK 99501-1994
POSITION STATEMENT: Discussed conflict of interest problems with
Version Q of HB 116
ACTION NARRATIVE
TAPE 00-25, SIDE A
Number 001
CHAIRMAN HALFORD called the Senate Resources Committee meeting to
order at 3:25 p.m. Present were Senators Taylor, Parnell,
Mackie, Lincoln and Chairman Halford. The first order of
business to come before the committee was HB 194.
HB 194-DISASTER ASSISTANCE
MR. RYAN COLGAN, staff to Representative Whitaker, sponsor of HB
194, gave the following overview of the measure. HB 194 is
technical and does not change any components or affect the Oil
and Hazardous Substance Release Prevention and Response Fund in
any manner. When this title was changed in 1994, the drafters
simply overlooked one reference made to this fund in statute
therefore the original title remains in Title 26 and needs to be
updated. He informed committee members that Mary Siroky,
Information Officer for the Department of Environmental
Conservation (DEC), was present to answer questions.
SENATOR TAYLOR asked why this change was not included in the
revisor's bill.
MR. COLGAN said the reason is explained in detail in a memo from
Mr. Crawford of the Division of Legal Services. He read the
following from that memo.
Ordinarily, this is the sort of problem that could easily be
remedied in a revisor's bill and I initially thought to
include such a correction in this year's bill. However in
this case, when the fund was renamed, two different accounts
within the fund were created, the first the Oil and
Hazardous Substance Release Prevention Account and second,
the Oil and Hazardous Substance Release Response Account.
Although the titles of the accounts might provide some clue,
there is no definitive way to tell whether the 1994
Legislature wanted recourse under AS 26.23.050(b), limited
only to one particular account or alternatively whether
recourse could be had with respect to both accounts, at
least under some circumstance.
SENATOR TAYLOR asked if this amendment will give recourse to both
accounts.
MR. COLGAN explained this amendment makes the name of the fund
consistent in statute.
CHAIRMAN HALFORD noted that Senator Taylor was asking which fund
it applies to or whether it applies to both.
MR. COLGAN said he understands it to apply specifically to the
Oil and Hazardous Substance Release Response Fund. He added, "I
think 'prevention and' is the phrase included in this bill.
CHAIRMAN HALFORD asked if it is intended to apply to both funds.
SENATOR TAYLOR noted that DEC staff gave an affirmative nod.
There being no further questions or testimony, SENATOR TAYLOR
moved HB 194 from committee with individual recommendations and
its accompanying zero fiscal note. There being no objection,
CHAIRMAN HALFORD announced it was so ordered.
HB 116-BOARD OF AGRICULTURE AND CONSERVATION
CHAIRMAN HALFORD announced the committee would take up HB 116 and
that a series of amendments had been prepared.
The committee took a brief at-ease from 3:30 to 3:32 p.m.
CHAIRMAN HALFORD informed committee members that the sponsor had
prepared three amendments to HB 116.
SENATOR MACKIE moved to adopt Amendment 1 for the purpose of
discussion. There being no objection, Amendment 1 was adopted.
BARBARA COTTING, staff to Representative Jeanette James, sponsor
of HB 116, informed committee members that the three amendments
are the result of a subcommittee meeting held yesterday.
Amendment 1 deals with the ethics portion of the bill. It gives
the Board authority to establish standards for loans but removes
the Board's authority to make final decisions on granting those
loans. The amendment will remove any conflict of interest and
allow board members to have loans.
CHAIRMAN HALFORD asked who will make the final determination of
which applicants get a loan.
MS. COTTING replied the loan officer will in conjunction with the
director.
CHAIRMAN HALFORD asked if the agricultural community is
comfortable with that much power resting in the director.
MS. COTTING replied yes, for that particular part of the
function.
SENATOR MACKIE asked if the subcommittee discussed the issue of
finding people to serve on the board since most qualified people
will have members of their families involved in agriculture.
SENATOR GREEN stated this board was modeled after the Commercial
Fishing and Agriculture Bank (CFAB).
SENATOR TAYLOR asked if the board will establish the standards
and criteria upon which a loan may be granted, rather than decide
who will get a loan.
SENATOR GREEN said that is correct.
SENATOR LINCOLN asked if her concern about immediate family
members was removed. She also asked to hear from the staff at
the Department of Natural Resources (DNR) and asked whether they
were advised of the changes.
SENATOR GREEN said DNR staff were advised and given copies.
CHAIRMAN HALFORD asked Mr. Wells to address the first of the
three amendments.
MR. ROB WELLS, Director of the Division of Agriculture, stated
his understanding of the intent of this legislation was to invest
more power in the board. He said he thinks the language on page
3 of the bill that says, "may employ staff as directed by the
board as responsible for the daily operations of the Agriculture
Revolving Loan Fund" could create a potential conflict.
SENATOR LINCOLN asked Mr. Wells whether DNR supports Amendment 1
and, if not, what DNR's concerns are.
MR. WELLS said he has not had a chance to confer with the
Commissioner on the amendments. [His next statement was
inaudible.]
SENATOR MACKIE asked Mr. Wells what his concern is. He stated
many questions regarding conflicts of interest were raised at the
last hearing and that Amendment 1 takes the approval of loans out
of the board's hands.
MR. WELLS said the board will direct the director regarding the
daily operations of the fund. The board is still responsible for
the disposal of the assets of the Agricultural Revolving Loan
Fund and will write regulations that address the loans and the
disposal of assets. Therefore, just because the board is removed
from the actual vote does not mean it is not directing the
director.
Number 864
CHAIRMAN HALFORD asked Ms. Hickerson to comment.
MS. ELIZABETH HICKERSON, Assistant Attorney General, said the
Department of Law still has concerns. The Legislature has the
ability to totally exempt boards and commissions from the
Executive Ethics Act. This amendment provides that the director
will now make the loans. Therefore, a board member could get a
loan yet the board member directs the director which creates the
potential for abuse regarding the loan. She stated Section 16 is
problematic because under that section, the board disposes of
property. The board is not restricted from purchasing property.
A board member could play a major role in determining which
parcel will be disposed of and when and how it will be disposed.
The board member could actively participate in drafting an RFP
and then submit a proposal and be awarded the property and have
the board approve it. She thought that to be one of the true
forms of conflict of interest.
SENATOR GREEN asked Ms. Hickerson which version of the bill she
was working from.
MS. HICKERSON said the version she received from Representative
James' office this morning.
SENATOR GREEN asked Ms. Hickerson if she was working from Version
Q.
MS. HICKERSON said she was.
CHAIRMAN HALFORD announced that the committee would recess to the
call of the Chair to allow Senators to attend the floor session
and to allow time for more work to be done on the bill. He then
recessed the meeting at 3:43 p.m.
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