Legislature(1993 - 1994)
05/09/1994 07:00 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
May 9, 1994
7:00 p.m.
MEMBERS PRESENT
Senator Loren Leman, Chair
Senator Mike Miller, Vice Chair
Senator Robin Taylor
Senator Jim Duncan
Senator Johnny Ellis
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 364(FIN)(title am)
"An Act relating to contributions to the Iditarod Trail Committee,
Inc. and the Alaska Children's Trust Fund (AS 37.14.200) from
permanent fund dividends; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 364 - No previous senate committee action.
WITNESS REGISTER
Thomas Williams, Director
Permanent Fund Dividend Division
Department of Revenue
P.O. Box 110460, Juneau, AK 99811-0460¶465-2323
POSITION STATEMENT: opposed to HB 364
Stan Hooley, Executive Director
Iditarod Trail Committee, Inc.
P.O. Box 870800, Wasilla, AK 99687¶376-5155 x100
POSITION STATEMENT: in favor of HB 364
ACTION NARRATIVE
TAPE 94-34, SIDE A
Number 001
CHAIRMAN LEMAN calls the Senate State Affairs Committee to order at
7:00 p.m.
CHAIRMAN LEMAN brings up HB 364 (PFD PROGRAM/ALLOWABLE ABSENCES) as
the only order of business before the Senate State Affairs
Committee today. The chairman calls Mr. Williams to testify.
Number 020
THOMAS WILLIAMS, Director, Permanent Fund Dividend Division, states
the Department of Revenue has historically opposed check-offs on
dividend applications for three principal reasons. Those reasons
are, one, the principal purpose of the dividend program is to pay
eligible Alaskans their dividends- it is not to promote other
programs or organizations. Second, if one organization is given
the opportunity to seek contributions through the dividend
application, there is a great tendency to add a whole slew of
others. Mr. Williams lists a number of organizations that have
tried to become listed on the dividend application. Mr. Williams
states the list is attached to the fiscal note that was submitted
to the legislature from the department for CSHB 364(FIN).
(secretary's note: the list was not published with the fiscal note.
Person's wanting the list should contact the Department of
Revenue.) Lastly, there are administrative costs, which are taken
directly out of the contributions. There are some indirect costs
which will need funding.
Number 060
MR. WILLIAMS states that since the beginning of the dividend
program there has only been one check-off. That was for the
Olympic Committee. There currently is a check-off allowing people
to direct half their dividend to the Advanced College Tuition
program. However, that is more akin to a direct deposit of the
dividend, than it is to a check-off.
Number 067
MR. WILLIAMS states there is a fiscal note of 36,000$ attached to
HB 364. The up front costs of the check-offs would need to be
funded in FY95, so those funds would have to be General Fund
monies.
MR. WILLIAMS addresses several other points, which are outlined in
the fiscal note.
Number 117
SENATOR TAYLOR asks Mr. Williams whether he supports HB 364.
MR. WILLIAMS responds the division has historically opposed check-
offs.
Number 121
CHAIRMAN LEMAN asks Mr. Williams if he would recommend that the
governor veto the bill if it reaches his desk.
MR. WILLIAMS replies he will defer that question to Commissioner
Rexwinkel.
CHAIRMAN LEMAN asks if there are further questions. Hearing none,
the chairman calls Mr. Hooley to testify.
Number 127
STAN HOOLEY, Executive Director, Iditarod Trail Committee, Inc.,
requests the legislature to consider HB 364, and apologizes that it
has come up at such a late date. Mr. Hooley states the financial
situation of the Iditarod Trail Committee has changed rather
dramatically in the last two weeks. The committee has taken action
recently with some special interest groups, and realizes that this
action will cause the committee to lose approximately 600,000$ this
year. That is in addition to 200,000$ that was lost last year.
The Iditarod Trail Committee, Inc. is trying to find a way to
insulate itself within the state from any further economic affect.
MR. HOOLEY states that the Iditarod has an economic impact on the
state of about 16 million dollars per year. That does not include
the international visibility that comes with the Iditarod. Mr.
Hooley continues with his comments on how the race impacts the
state economically.
Number 193
MR. HOOLEY points out that there is a three year sunset clause on
the Iditarod check-off. The check-off is not intended to be a long
term solution. It is a way to work out of the current crisis as
the committee diversifies its' funding sources within the state.
Number 202
CHAIRMAN LEMAN asks Mr. Hooley if it will be a problem if HB 364
does not pass the legislature this year, since money from the
check-offs would not be available to the Iditarod Committee until
the 1996 race anyway.
MR. HOOLEY responds that if the Iditarod Trail Committee can
demonstrate to lending institutions that it has a viable source of
revenue, it would help in procuring funding.
Number 226
SENATOR MILLER asks why the state should favor one race over
another. Why not have a check-off for the Yukon Quest.
Number 230
MR. HOOLEY states that at the present time, the Iditarod is more of
an emotional issue than the other races.
Number 252
CHAIRMAN LEMAN states the committee is going to have to recess.
Chairman Leman asks Mr. Williams if it would create a hardship for
the department if the legislation was delayed until next year.
Number 254
MR. WILLIAMS replies that the check-off could not appear on the
1995 application if the legislation was not passed this year.
Number 259
SENATOR TAYLOR notes for the record that he has an amendment he
would like to offer making a check-off for the Alaska Public Radio
Network.
Number 262
CHAIRMAN LEMAN states he has an amendment to add the Arctic Winter
Games. The chairman asks Mr. Purchard (sp?) if he can testify when
the committee comes back to order at the next recess of the Senate.
CHAIRMAN LEMAN thanks the witnesses and calls a recess of the
Senate State Affairs Committee at 7:20 p.m.
Number 271
CHAIRMAN LEMAN calls the Senate State Affairs Committee back to
order at 9:55 p.m.
Number 274
SENATOR ELLIS moves amendment #1 by Senator Taylor, adding a check-
off for the Alaska Public Radio Network to HB 364.
CHAIRMAN LEMAN, hearing no objection, states amendment #1 has been
adopted.
Number 275
CHAIRMAN LEMAN moves amendment #2, adding a check-off for the
Arctic Winter Games to HB 364. The chairman asks if there is any
objection to the amendment. Hearing none, the chairman states
amendment #2 has been adopted.
CHAIRMAN LEMAN asks the pleasure of the committee regarding HB 364.
Number 277
SENATOR ELLIS makes a motion to discharge HB 364 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN LEMAN, hearing no objection, orders HB 364 released from
committee with individual recommendations.
CHAIRMAN LEMAN adjourns the Senate State Affairs Committee meeting
at 10:00 p.m.
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