Legislature(1995 - 1996)

04/25/1995 04:38 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               SENATE STATE AFFAIRS COMMITTEE                                
                         April 25, 1995                                        
                           4:38 p.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Bert Sharp, Chairman                                                  
 Senator Randy Phillips, Vice-Chairman                                         
 Senator Loren Leman                                                           
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Senator Jim Duncan                                                            
 Senator Dave Donley                                                           
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 SENATE BILL NO. 143                                                           
 "An Act ratifying an agreement between the Alaska Housing Finance             
 Corporation and the commissioner of revenue and making certain                
 pledges to obligees of the corporation regarding that agreement;              
 relating to the authorization for and the issuance of bonds by the            
 Alaska Housing Finance Corporation to pay for the costs of repair             
 and rehabilitation of student housing facilities of the University            
 of Alaska; and providing for an effective date."                              
                                                                               
 SENATE BILL NO. 144                                                           
 "An Act relating to the authorization for and the issuance of                 
 revenue bonds by the University of Alaska to pay for the costs of             
 repair and rehabilitation of buildings and other structures,                  
 excluding student housing and dormitories, of the University of               
 Alaska; expanding the uses of the Alaska debt retirement fund to              
 allow financing of the repair and rehabilitation of University of             
 Alaska facilities; and providing for an effective date."                      
                                                                               
 CS FOR HOUSE BILL NO. 13(STA)                                                 
 "An Act requiring persons filing for nomination for, or campaigning           
 for election for, state elective office, persons authorized to make           
 or incur political campaign expenditures before formally filing for           
 nomination to state elective office, and groups acting on behalf of           
 any of these, to file certain election campaign finance disclosure            
 reports."                                                                     
                                                                               
 CS FOR HOUSE BILL NO. 44(FIN) am                                              
 "An Act relating to reporting by permittees, licensees, and                   
 vendors; relating to municipal regulation of charitable gaming;               
 providing that a political group is not a qualified organization              
 for purposes of charitable gaming, other than raffles, and relating           
 to those raffles; relating to identification to the public of each            
 permittee that will benefit from the sale of each pull-tab series             
 and each bingo session; providing that the proceeds from charitable           
 gaming, other than certain raffles conducted by a political                   
 organization, may not be contributed to a political party or other            
 political group; and providing for an effective date."                        
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 SB 143 - See State Affairs minutes dated 4/20/95.                             
                                                                               
 SB 144 - See State Affairs minutes dated 4/20/95.                             
                                                                               
 HB 13 - No previous senate committee action.                                  
                                                                               
 HB 44 - No previous senate committee action.                                  
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Dan Fauske, Executive Director                                                
 Alaska Housing Finance Corporation                                            
 Department of Revenue                                                         
 P.O. Box 101020, Anchorage, AK 99510-1020¶561-1900                            
   POSITION STATEMENT: testified on SB 143                                     
                                                                               
 Bill Howe, Deputy Commissioner                                                
 Department of Revenue                                                         
 P.O. Box 110405, Juneau, AK 99811-0405¶465-4880                               
   POSITION STATEMENT: testified on SB 143 & SB 144                            
                                                                               
 Wendy Redman                                                                  
 University of Alaska                                                          
 P.O. Box 155000, Fairbanks, AK 99775¶474-7311                                 
   POSITION STATEMENT: supports SB 143 & SB 144                                
                                                                               
 Jeff Logan, Aide to Representative Green                                      
 State Capitol, Juneau, Alaska, 99801-1182¶465-4931                            
   POSITION STATEMENT: prime sponsor of HB 13                                  
                                                                               
 Brooke Miles, Administrator                                                   
 Alaska Public Offices Commission                                              
 P.O. Box 110222, Juneau, AK 99811-0222¶465-4864                               
   POSITION STATEMENT: supports HB 13                                          
                                                                               
 Tom Anderson, Aide to Representative Martin                                   
 State Capitol, Juneau, Alaska, 99801-1182¶465-3783                            
   POSITION STATEMENT: prime sponsor of HB 44                                  
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
 SSTA - 4/25/95                                                                
                                                                               
 TAPE 95-20, SIDE A                                                            
                                                                               
 Number 001                                                                    
         SB 143 AHFC TRANSFERS TO GENERAL FUND; BONDS                        
                                                                               
                                                                               
 CHAIRMAN SHARP calls the Senate State Affairs Committee to order at           
 4:38 p.m. and brings up SB 143 as the first order of business                 
 before the committee.  The chairman calls the first witness.                  
                                                                               
 Number 020                                                                    
                                                                               
 DAN FAUSKE, Executive Director, Alaska Housing Finance Corporation,           
 testifying from Anchorage, thinks SB 143 represents a significant             
 accomplishment, in that it would establish a prudent, manageable              
 transfer of cash from AHFC to the state.  It will also enable the             
 corporation to issue bonds for University of Alaska deferred                  
 maintenance.  Mr. Fauske notes he has submitted to the committee a            
 press release from Standard & Poors (S&P) in support of the                   
 arrangement set out in SB 143.                                                
                                                                               
 Number 095                                                                    
                                                                               
 BILL HOWE, Deputy Commissioner, Department of Revenue, distributes            
 to committee members a draft copy of the agreement between the                
 Commissioner of the Department of Revenue and AHFC.  This agreement           
 lists the proposed amounts of money that will be transferred from             
 AHFC to the state.  The amounts are: $70,000,000 in FY 1996, and              
 $50,000,000 for FY 1997-FY 2000.  Mr. Howe states AHFC and the                
 Department of Revenue both feel this is a fair agreement.                     
                                                                               
 MR. HOWE informs the committee that if this agreement is approved,            
 S&P will remove AHFC from a credit watch.                                     
                                                                               
 Number 155                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks if other scenarios have been explored.            
                                                                               
 Number 160                                                                    
                                                                               
 MR. FAUSKE replies other amounts and scenarios were discussed.  But           
 this was the agreement which was reviewed most extensively.                   
                                                                               
 SENATOR RANDY PHILLIPS asked if S&P is looking for stability.                 
                                                                               
 MR. FAUSKE responds that they are looking for stability and                   
 predictability.                                                               
                                                                               
 SENATOR RANDY PHILLIPS thinks it would be predictable for the                 
 legislature to take $235,000,000 right now, and not take anything             
 else in the future.  Are there any other scenarios S&P would                  
 approve?                                                                      
                                                                               
 MR. HOWE believes S&P does not want to see more than the total                
 amount the corporation earns per year taken out in any one year.              
 However, he thinks there is some flexibility as to how much comes             
 out when.                                                                     
                                                                               
 Number 215                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks what happens if AHFC's bond rating is             
 downgraded.                                                                   
                                                                               
 MR. FAUSKE responds that if the bond rating went from AA to A, it             
 would cost an additional $13,200,000 over the life of the bond.               
                                                                               
 SENATOR RANDY PHILLIPS asked what the impact would be to individual           
 borrowers.                                                                    
                                                                               
 Number 235                                                                    
                                                                               
 MR. FAUSKE replies it would raise mortgage rates by a half to a               
 full percent.                                                                 
                                                                               
 Number 240                                                                    
                                                                               
 MR. HOWE adds that there are several larger risks seen by the                 
 administration than having the bond rating drop from AA to A.                 
 First, is the risk of ratings being withdrawn on outstanding bonds.           
 That would have the effect of turning them into junk bonds.                   
 Secondly, the administration is concerned that AHFC will be unable            
 to float new bonds.                                                           
                                                                               
 Number 265                                                                    
                                                                               
 CHAIRMAN SHARP thinks the legislature will have to give assurances            
 regarding how much money will be withdrawn, and when it will be               
 withdrawn.  Hopefully we can arrive at a solution that will offer             
 stability, while still returning some money to the general fund.              
                                                                               
 Number 295                                                                    
                                                                               
 WENDY REDMAN, University of Alaska, urges passage of SB 143.                  
                                                                               
 Number 320                                                                    
                                                                               
 SENATOR LEMAN makes a motion to discharge SB 143 from the Senate              
 State Affairs Committee with individual recommendations.                      
                                                                               
 CHAIRMAN SHARP, hearing no objection, orders SB 143 released from             
 committee with individual recommendations.                                    
 SSTA - 4/25/95                                                                
                                                                               
 Number 325                                                                    
                                                                               
         SB 144 FINANCING REPAIR/REHAB OF U AK BLDGS                         
                                                                               
 SENATOR SHARP brings up SB 144 as the next order of business before           
 the Senate State Affairs Committee and calls the first witness.               
                                                                               
 Number 330                                                                    
                                                                               
 WENDY REDMAN, University of Alaska, informs the committee that SB
 144 is a back-up measure, in case money is not available next year            
 for deferred maintenance.                                                     
                                                                               
 Number 355                                                                    
                                                                               
 BILL HOWE, Deputy Commissioner, Department of Revenue, states SB
 144 is predicated on the ability of AHFC to float bonds.                      
                                                                               
 CHAIRMAN SHARP asks if SB 144 is simply authorizing next year's               
 needs.                                                                        
                                                                               
 [Mr. Howe nods "Yes."]                                                        
                                                                               
 Number 365                                                                    
                                                                               
 SENATOR LEMAN makes a motion to discharge SB 144 from the Senate              
 State Affairs Committee with individual recommendations.                      
                                                                               
 CHAIRMAN SHARP, hearing no objection, orders SB 144 released from             
 committee with individual recommendations.                                    
 SSTA - 4/25/95                                                                
 Number 370                                                                    
                                                                               
            HB  13 CAMPAIGN FILINGS & DISCLOSURES                            
                                                                               
 SENATOR SHARP brings up HB 13 as the next order of business before            
 the Senate State Affairs Committee and calls the first witness.               
                                                                               
 JEFF LOGAN, Aide to Representative Green, prime sponsor of HB 13,             
 relays information contained in the sponsor statement.  Reasons for           
 campaign disclosure include an informed electorate, deterrence of             
 corruption and the avoidance of the appearance of corruption, and             
 detecting violations of contribution limits.  HB 13 would require             
 candidates whose name is not going to be on the primary election              
 ballot to make campaign disclosure reports, just as all other                 
 candidates are required to do.  The sponsor has worked with APOC on           
 this legislation, and APOC supports this legislation.  There is a             
 zero fiscal note.  HB 13 passed the house with no opposition.                 
                                                                               
 Number 415                                                                    
                                                                               
 BROOKE MILES, Administrator, Alaska Public Offices Commission,                
 states APOC has worked with the sponsor of HB 13 and supports the             
 bill.  HB 13 will not have a fiscal impact.  This bill would                  
 require complete disclosure.                                                  
                                                                               
 SENATOR LEMAN makes a motion to discharge HB 13 from the Senate               
 State Affairs Committee with individual recommendations.                      
                                                                               
 Number 430                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, orders HB 13 released from              
 committee with individual recommendations.                                    
 SSTA - 4/25/95                                                                
 Number 434                                                                    
                                                                               
       HB  44 GAMING PROCEEDS/DEFINE CHARITABLE ORG'NS                       
                                                                               
 SENATOR SHARP brings up HB 44 as the next order of business before            
 the Senate State Affairs Committee and calls the first witness.               
                                                                               
 Number 440                                                                    
                                                                               
 TOM ANDERSON, Aide to Representative Martin, prime sponsor of HB
 44, states that Representative Martin is begrudgingly pushing on              
 with the bill; he believes it has been gutted, with it's intent and           
 effectiveness severely dampened.  The original intent was to                  
 eliminate any monies from charitable gaming being contributed to              
 political candidates; but currently, that is not how the bill                 
 reads.  We are just looking at removing permits from political                
 groups.  Political groups would only be allowed to hold raffles.              
                                                                               
 Number 476                                                                    
                                                                               
 SENATOR LEMAN makes a motion to adopt amendment #1 to HB 44.                  
                                                                               
 SENATOR RANDY PHILLIPS asks to be shown as a co-sponsor on                    
 amendment #1.                                                                 
                                                                               
 Amendment #1 by Leman and Phillips:                                           
                                                                               
 Page 4, lines 24-26:                                                          
  Delete "a political party as defined under AS 15.60, or to an               
 organization or club organized under or formally affiliated with a            
 political party"                                                             
  Insert "(i) a political party as defined under AS 15.60;                    
 (ii) an organization or club organized under or formally affiliated         
 with a political party;                                                    
 (iii) a political group as defined under AS 15.13.130, including a           
 group that seeks to influence the opinions of voters concerning the           
 election of a candidate for public office, a constitutional                   
 amendment, an initiative, or another ballot measure"                         
 Page 5, line 3:                                                               
  Delete "or"                                                                  
  Insert ","                                                                   
                                                                               
 Page 5, line 4, after "party,":                                               
  Insert "to a political group as defined under AS 15.60, to a                 
 group as defined under AS 15.30.130,"                                         
                                                                               
 Number 483                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, states amendment #1 to HB 44            
 has been adopted.                                                             
                                                                               
 Number 485                                                                    
                                                                               
 CHAIRMAN LEMAN makes a motion to adopt amendment #2 to HB 44.                 
                                                                               
 Amendment #2 by Leman:                                                        
                                                                               
 Page 3, lines 4-6:                                                            
  Delete "permittees to a political(A) candidate or the                     
 candidate's campaign organization; or(B) group;"                         
  Insert "permittees, licensees, and vendors to a political                   
 candidate; reports must include all donations or contributions made           
 from the last date covered by any previous report to three days               
 before the due date of the report and shall be made at the                    
 following times: (A) 30 days before an election involving the                 
 candidate; (B) one week before an election involving the candidate;           
 (C) 10 days after an election involving the candidate; and (D)                
 February 15 for donations and contributions made that were not                
 reported during the previous year; the department shall, for a                
 period of time set by the department, suspend or revoke the permit,           
 license, or vendor registration of a permittee, licensee, or vendor           
 that fails to report at the times and in the manner provided in               
 this paragraph;"                                                             
                                                                               
 Number 490                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, states amendment #2 to HB 44            
 has been adopted.                                                             
                                                                               
 Number 492                                                                    
                                                                               
 SENATOR LEMAN makes a motion to adopt amendment #3 to HB 44.                  
                                                                               
 Amendment #3 by Leman (conceptual amendment):                                 
                                                                               
 Add language requiring donating entities to notify candidates if              
 any of their donations come from gaming sources.                              
                                                                               
 Number 500                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, states amendment #3 to HB 44            
 has been adopted.                                                             
                                                                               
 SENATOR LEMAN makes a motion to discharge HB 44 from the Senate               
 State Affairs Committee with individual recommendations.                      
                                                                               
 Number 505                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, orders HB 44 released from              
 committee with individual recommendations.                                    
                                                                               
 Number 508                                                                    
                                                                               
 CHAIRMAN SHARP adjourns the Senate State Affairs Committee meeting            
 at 5:15 p.m.                                                                  
                                                                               

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