Legislature(1995 - 1996)
05/02/1995 03:36 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 2, 1995
3:36 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice-Chairman
Senator Loren Leman
Senator Jim Duncan
MEMBERS ABSENT
Senator Dave Donley
COMMITTEE CALENDAR
CS FOR HOUSE JOINT RESOLUTION NO. 9(JUD)
Requesting the governor to file suit in the United States Supreme
Court against the United States government alleging violations of
the civil rights of Americans listed as prisoners of war or missing
in action in Southeast Asia, demanding that documents concerning
these individuals be released; and requesting the other states to
join in this suit.
CS FOR HOUSE BILL NO. 10(STA) am
"An Act relating to payment for emergency services responding to
certain motor vehicle accidents."
HOUSE JOINT RESOLUTION NO. 39
Relating to the Northern Sea Route.
SENATE RESOLUTION NO. 3
Relating to the conversion of the Naval Air Facility in Adak.
SENATE BILL NO. 163
"An Act approving the University of Alaska's plans to enter into
long-term obligations to borrow money from the Alaska Housing
Finance Corporation for the acquisition of student housing
facilities; and providing for an effective date."
SENATE CONCURRENT RESOLUTION NO. 14
Endorsing a proposal by which the Alaska Housing Finance
Corporation, under provisions of law by which the corporation may
exercise its powers to complete moderate income and rental housing,
will make interest-subsidized loans for the construction of student
housing facilities at certain campuses of the University of Alaska,
and relating to an agreement between the parties respecting the
initiation of student housing on certain campuses of the University
of Alaska.
SENATE BILL NO. 118
"An Act relating to credits against certain taxes for contributions
to certain public educational radio and television networks and
stations; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HJR 9 - No previous senate committee action.
HB 10 - No previous senate committee action.
HJR 39 - No previous senate committee action.
SR 3 - No previous senate committee action.
SB 163 - No previous senate committee action.
SCR 14 - No previous senate committee action.
SB 118 - See State Affairs minutes dated 4/20/95 and 4/27/95.
WITNESS REGISTER
Representative Jeannette James
State Capitol, Juneau, Alaska, 99801-1182¶465-3743
POSITION STATEMENT: prime sponsor of HJR 9
Don Nelson
P.O. Box 0, North Pole, AK 99705¶488-9494
POSITION STATEMENT: gives testimony favorable to HJR 9
Ladd McBride
P.O. Box 83567, Fairbanks, AK 99705¶479-8096
POSITION STATEMENT: supports HJR 9
Gary Tyndall
P.O. Box 82977, Fairbanks, AK 99708¶488-1143
POSITION STATEMENT: supports HJR 9
Nancy Gourley
1802 4th Ave., Kenai, AK 99611¶283-2208
POSITION STATEMENT: supports HJR 9
Jack Hetherton
P.O. Box 2376, Soldotna, AK 99669¶262-5455
POSITION STATEMENT: supports HJR 9
Shannon McCarthy, Aide to Representative Davies
State Capitol, Juneau, Alaska, 99801-1182¶465-4457
POSITION STATEMENT: prime sponsor of HB 10
Dave Tyler, Alaska State Fire Chief's Association
1610 Hans Way, Fairbanks, AK 99709¶479-5672
POSITION STATEMENT: supports HB 10
Wayne Maloney, Aide to Representative Barnes & House WTR Cmte
State Capitol, Juneau, Alaska, 99801-1182¶465-3438
POSITION STATEMENT: prime sponsor of HJR 39
Sherman Ernouf, Aide to Senator Kelly
State Capitol, Juneau, Alaska, 99801-1182¶465-3822
POSITION STATEMENT: prime sponsor of SR 3
Josh Fink, Aide to Senator Kelly
State Capitol, Juneau, Alaska, 99801-1182¶465-3822
POSITION STATEMENT: prime sponsor of SB 163 & SCR 14
Dan Fauske, Chief Executive Officer
Alaska Housing Finance Corporation
P.O. Box 101020, Anchorage, AK 99510-1020¶564-9326
POSITION STATEMENT: testified on SB 163
Wendy Redman, Vice President
University of Alaska
P.O. Box 155000, Fairbanks, AK 99775¶474-7311
POSITION STATEMENT: supports SB 163
Senator John Torgerson
State Capitol, Juneau, Alaska, 99801-1182¶465-2828
POSITION STATEMENT: prime sponsor of SB 118
Bob Bartholomew, Deputy Director
Income & Excise Audit Division
Department of Revenue
P.O. Box 110420, Juneau, AK 99811-0420¶465-4773
POSITION STATEMENT: testified on SB 118
ACTION NARRATIVE
SSTA - 5/2/95
TAPE 95-22, SIDE A
Number 001
HJR 9 SUIT RE POWS & MIAS AGAINST U.S. & OTHERS
CHAIRMAN SHARP calls the Senate State Affairs Committee to order at
3:36 p.m. and brings up HJR 9 as the first order of business before
the committee. The chairman calls the first witness.
Number 017
REPRESENTATIVE JEANNETTE JAMES, prime sponsor of HJR 9, relays
information contained in the sponsor statement. HJR 9 requests the
governor to file suit in the U.S. Supreme Court against the United
States Government, alleging violations of the civil rights of
Americans listed as prisoners of war or missing in action in
Southeast Asia. Representative James urges the committee to take
action on HJR 9.
Number 055
DON NELSON, WWII POW, testifying from Fairbanks, gives testimony
favorable to HJR 9.
Number 085
LADD MCBRIDE, Chairman, Interior Alaska Veterans' Committee,
testifying from Fairbanks, states the veteran's committee
unanimously supports HJR 9.
Number 100
GARY TYNDALL, testifying from Fairbanks, states he supports HJR 9
and asks for the committee's endorsement. He thinks there are
still American prisoners in Southeast Asia who were left behind at
the end of the war.
Number 160
NANCY GOURLEY, testifying from Soldotna, states her brother is mia
in Laos. Ms. Gourley states that for family members of mia's, all
other courses of action have been exhausted.
SENATOR LEMAN notes that the legislature is moving fairly quickly
in acting on HJR 9. He does not see any reason for holding action
on HJR 9.
Number 217
SENATOR RANDY PHILLIPS asks Ms. Gourley what her brother's name is.
MS. GOURLEY responds her brother's name is Gregory Steven Crandall.
His home state is Washington.
Number 230
JACK HETHERTON, Commander, VFW Post 10,046 - Soldotna, testifying
from Soldotna, states he is a combat veteran with two tours duty in
Vietnam. Mr. Hetherton states he supports HJR 9.
Number 273
SENATOR RANDY PHILLIPS makes a motion to discharge HJR 9 from the
Senate State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, orders HJR 9 released from
committee with individual recommendations.
SSTA - 5/2/95
HB 10 PAYMENT OF COSTS OF DWI ACCIDENTS
SENATOR SHARP brings up HB 10 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 280
SHANNON MCCARTHY, Aide to Representative Davies, prime sponsor of
HB 10, reads the sponsor statement. HB 10 would require convicted
DWI offenders who cause an accident to pay for emergency services
that respond to that accident.
Number 305
DAVE TYLER, Alaska State Fire Chief's Association, testifying from
Fairbanks, states accident rescue is expensive and hazardous to
responders, and he supports HB 10.
CHAIRMAN SHARP states he is familiar with the work of rescue
personnel, as his daughter was an EMT with the University Fire
Department in Fairbanks for two years.
SENATOR LEMAN makes a motion to discharge HB 10 from the Senate
State Affairs Committee with individual recommendations.
Number 342
CHAIRMAN SHARP, hearing no objection, orders HB 10 released from
committee with individual recommendations.
SSTA - 5/2/95
HJR 39 NORTHERN SEA ROUTE DEVELOPMENT
SENATOR SHARP brings up HJR 39 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 350
WAYNE MALONEY, Aide to the Special Committee on World Trade & State
& Federal Relations, reads a written statement relaying information
on HJR 39 to the committee. HJR 39 supports international shipping
along the Northern Sea Route. Opening the Northern Sea Route would
cut the shipping distance for Alaska cargo bound for Europe by up
to 60%. It is also the shortest route to London from all ports
north of Hong Kong. HJR 39 was passed unanimously by the House of
Representatives last month.
SENATOR LEMAN makes a motion to discharge HJR 39 from the Senate
State Affairs Committee with individual recommendations.
Number 380
CHAIRMAN SHARP, hearing no objection, orders HJR 39 released from
committee with individual recommendations.
SSTA - 5/2/95
SR 3 CONVERSION OF ADAK NAVAL AIR FACILITY
SENATOR SHARP brings up SR 3 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 383
SHERMAN ERNOUF, Aide to Senator Kelly, prime sponsor of SR 3,
informs the committee that SR 3 would encourage the federal
government to allow the facilities at Adak to be used for the long-
term benefits of the state and for the benefit of the people in the
Western Aleutians.
Number 397
SENATOR LEMAN asked if SR 3 would preclude using the facilities at
Adak for a correctional facility.
MR. ERNOUF responds that has been one of the possible uses
discussed for the facilities. The concern is that the buildings
may be jeopardized during the closure process if they are not
maintained.
Number 407
SENATOR LEMAN asks if the process includes provisions for
maintaining the property.
MR. ERNOUF responds it does. The Aleut Corporation is over-signed
on the land, so if the federal government decides not to use it,
they will come into ownership of it. Until that time, we are
asking the federal government and the Department of Defense to take
care of the buildings.
SENATOR LEMAN asks if there will be a time, because of Adak's
strategic location, that the base would ever have to be
reactivated.
MR. ERNOUF replies he cannot answer that question. He assumes that
the Base Realignment and Closure Commission would take strategic
importance into consideration. But he does not know what
arrangements they make for the possibility of reopening a site.
Number 422
SENATOR RANDY PHILLIPS makes a motion to discharge SR 3 from the
Senate State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, orders SR 3 released from
committee with individual recommendations.
SSTA - 5/2/95
SB 163 APPROVE U OF A DEBT FOR STUDENT HOUSING
SENATOR SHARP brings up SB 163 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
JOSH FINK, Aide to Senator Kelly, prime sponsor of SB 163, states
he will testify on SB 163 and SCR 14 at the same time, since they
are on the same subject. Both pieces of legislation have been
introduced to deal with the shortage of student housing in the
University of Alaska system. The three campuses with serious
housing shortages are Anchorage, Juneau, and Ketchikan. The
University, a number of legislators, and AHFC have been working
together to establish a loan agreement to meet the university's
housing needs. AHFC's mission is to help meet the housing needs of
persons with low to moderate income, and most students are in that
group. Mr. Fink thinks this agreement will be beneficial to all
parties involved.
Number 467
SENATOR LEMAN asks, based on today's market rate for bonding, what
subsidy the university will be receiving at 3%.
Number 470
MR. FINK responds there is a spreadsheet in members' bill packets
showing that information.
DAN FAUSKE, Chief Executive Officer, Alaska Housing Finance
Corporation, thinks the subsidy will be about $10,000,000 over the
life of the bond, which will be 25 years.
SENATOR LEMAN asks if this will commit the legislature to keeping
AHFC as an entity for 25 years.
CHAIRMAN SHARP responds that it would not do so any more than any
other bond issue does. The chairman asks Mr. Fauske to give a
brief outline regarding SB 163 and SCR 14.
Number 492
MR. FAUSKE responds the loan would be a subsidized 3% loan, based
on a 6% coupon rate on the bonds for the life of the bonds. Under
this scenario, the principal of the debt would be paid by housing,
food service, and other fees generated by the university.
SENATOR LEMAN asks what the figure identified as $1,200,000 private
gift is.
MR. FINK replies that the intent is to solicit private funds.
Number 513
WENDY REDMAN, Vice President, University of Alaska, states the
university strongly supports student housing. SB 163 is integrally
linked with SB 143, which is currently in the Senate Finance
Committee. SB 143 provides for AHFC transfer agreements. AHFC has
made it clear to the university that they will not be in any
position to follow through on SB 163, unless AHFC's assets are
protected.
CHAIRMAN SHARP thinks bonding for student housing is a great
possibility. He does not need to be convinced, but there are
others who still need convincing.
Number 537
SENATOR LEMAN informs Ms. Redman that he has been supportive of the
university in the past, but when things like the Judge Greene
decision and the recent student vote on the Anchorage campus
happen, it causes him to question whether supporting the university
is the right thing to do. If he is to continue to support the
university, he would desire that those types of things not
represent the university policy, or for that matter, even the bulk
of the students attending the university. If that is true he would
be the first to bail out and invest the money somewhere else.
Number 548
MS. REDMAN responds that if Senator Leman finds a way to possibly
control the courts in Alaska, she would be very interested in
pursuing that with him.
SENATOR RANDY PHILLIPS says the court system's budget could be cut.
CHAIRMAN SHARP thinks the legislature will have to look at some of
the smaller campuses, and decide if operating those campuses are
cost effective.
Number 566
SENATOR LEMAN makes a motion to discharge SB 163 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, orders SB 163 released from
committee with individual recommendations.
SB 118 TAX CREDIT: GIFTS TO PUBLIC BROADCASTING
SENATOR SHARP brings up SB 118 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 579
SENATOR JOHN TORGERSON, prime sponsor of SB 118, compares the
original version of SB 118 to version O. Version O adds an
endowment for educational radio and tv as a recipient of the
credits, increases the amount to a maximum of $350,000, precludes
claims for contributions as both credits and deductions against
taxes, establishes tax credits against the insurance premium tax,
title insurance premiums, the fisheries resource landing tax, and
sunsets after five years. The main difference between version O
and the house version of this bill is that version O eliminates
taking 50-50 from the state and the municipalities.
TAPE 95-22, SIDE B
Number 589
SENATOR LEMAN comments the state pays for everything over $100,000
in contributions. He states he cannot support a 100% credit. The
state might as well just budget it.
CHAIRMAN SHARP comments he resents that large corporations have the
privilege of directing where their taxes will be spent, but
individuals cannot do that. The chairman states he really has a
problem with that.
Number 569
SENATOR RANDY PHILLIPS directs the chairman's attention to page 2,
line 4, which would allow individuals to take a tax credit towards
state income taxes, if and when state income taxes are
reimplemented.
CHAIRMAN SHARP states he is uncomfortable with the fact that only
the state participates in giving a tax credit. He would not want
to mandate local participation, but giving 100% tax credits
basically circumvents legislative oversight of the use of taxes.
Number 547
SENATOR LEMAN states he also has a proposed committee substitute
for SB 118, version M. Tax credits could also be taken for
contributions to K-12 education in Alaska. Tax credits taken could
not exceed $200,000.
Number 515
BOB BARTHOLOMEW, Deputy Director, Division of Income & Excise
Audit, Department of Revenue, informs the committee that some of
the taxes do apply to the insurance provision. It is his
understanding that the education credit does. Work draft version
O does include the insurance provision.
CHAIRMAN SHARP asks Mr. Bartholomew if he has any estimate on what
the maximum exposure would be for taking tax credits.
MR. BARTHOLOMEW responds that in the original version of SB 118,
the fiscal note showed an impact to revenue of about $845,000.
Number 497
SENATOR LEMAN states he would like to amend the bill to include the
insurance premium tax, just to be consistent.
Number 463
MR. BARTHOLOMEW comments that the Attorney General's Office
recommends, in regards to version M, that the fish landing tax be
included. The reason for this is there is a challenge to that tax
in the court system asking that all taxes be treated the same.
Number 445
SENATOR LEMAN states he would be willing to add that amendment to
the version he is supporting.
SENATOR RANDY PHILLIPS makes a motion to adopt version O.
Objection is heard and the roll is called.
The motion fails 2 yeas, 2 nays, and 1 absent. Voting in favor of
adopting version O are Senators Phillips and Duncan. Voting in
opposition are Senators Sharp and Leman. Senator Donley is not
present.
SENATOR LEMAN makes a motion to adopt version M with a conceptual
amendment to add a tax credit against the insurance premium tax.
SENATOR DUNCAN objects.
CHAIRMAN SHARP asks Senator Duncan if he is objecting to the
conceptual amendment regarding the insurance premium tax, or
objecting to the whole motion.
SENATOR DUNCAN states he objects to the whole thing.
SENATOR LEMAN asks Senator Duncan if he is objecting to tax credits
for donations to education.
SENATOR DUNCAN replies he is objecting to education.
CHAIRMAN SHARP notes this vote will determine whether or not SB 118
lives to fight another day. Hearing no further discussion on the
motion, the chairman asks the secretary to call the roll.
The roll is taken with the following result, and the motion fails
2 yeas, 2 nays, and 1 absent. Voting in favor of adopting version
M are Senators Sharp and Leman. Voting in opposition are Senators
Phillips and Duncan. Senator Donley is not present.
CHAIRMAN SHARP adjourns the Senate State Affairs Committee meeting
at 4:40 p.m.
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