Legislature(1997 - 1998)
03/18/1997 03:37 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
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SENATE STATE AFFAIRS COMMITTEE
March 18, 1997
3:37 p.m.
MEMBERS PRESENT
Senator Lyda Green, Chairman
Senator Jerry Ward, Vice-Chairman
Senator Jerry Mackie
Senator Jim Duncan
MEMBERS ABSENT
Senator Mike Miller
COMMITTEE CALENDAR
SENATE CONCURRENT RESOLUTION NO. 7
Relating to the thirty-first annual Boys' State.
-- MOVED SCR 7 OUT OF COMMITTEE
SENATE CONCURRENT RESOLUTION NO. 8
Relating to the twenty-ninth annual Girls' State.
-- MOVED SCR 8 OUT OF COMMITTEE
HOUSE CONCURRENT RESOLUTION NO. 8
Creating the Deferred Maintenance Task Force.
-- MOVED HCR 8 OUT OF COMMITTEE
SENATE BILL NO. 87
"An Act relating to regulation of architects, engineers, and land
surveyors; extending the termination date of the State Board of
Registration for Architects, Engineers, and Land Surveyors; and
providing for an effective date."
-- MOVED CSSB 87(STA) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 22
Inviting the United States Department of Defense to select Alaska
as the site to base and train military troops.
-- MOVED SJR 22 OUT OF COMMITTEE
SENATE BILL NO. 105
"An Act relating to legislative ethics; relating to the filing of
disclosures by certain legislative employees and officials; and
providing for an effective date."
-- HEARD AND HELD
SENATE BILL NO. 21
"An Act relating to ferries and ferry terminals, establishing the
Alaska Marine Highway Authority, and relating to maintenance of
state marine vessels; and providing for an effective date."
-- AMENDED AND HELD
PREVIOUS SENATE COMMITTEE ACTION
SCR 7 - See Senate State Affairs minutes dated 3/18/97.
SCR 8 - See Senate State Affairs minutes dated 3/18/97.
HCR 8 - See Senate State Affairs minutes dated 3/18/97.
SB 87 - See Labor and Commerce Committee minutes dated 3/11/97 and
State Affairs minutes dated 3/18/97.
SJR 22 - See Senate State Affairs minutes dated 3/18/97.
SB 105 - See State Affairs minutes dated 3/11/97, 3/13/97, 3/18/97
and 3/25/97.
SB 21 - See Senate Transportation Committee minutes dated 2/18/97
and 3/6/97 and Senate State Affairs minutes dated 3/18/97
and 3/25/97.
WITNESS REGISTER
Ms. Lorali Meier, Legislative Intern to
Senator Loren Leman
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented overview on SCR 7 & SCR 8
Mike Heatwole, Staff to Representative Gail Phillips
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented overview on HCR 8
Jack Kreinheder, Senior Policy Analyst
Office of Management & Budget
Office of the Governor
P.O. Box 110020
Juneau, AK 99811-0020
POSITION STATEMENT: Testified in support of HCR 8
Ms. Annette Kreitzer, Staff to Senate Labor & Commerce
Committee
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Explained amendment to SB 87
Chris Nelson, Staff to Senator Robin Taylor
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SJR 22
Ben Brown, Staff to Senator Tim Kelly
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SB 105
Senator Robin Taylor
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of SB 21
Ms. Andrea Barkley
P.O. Box 1037
Ward Cove, AK 99928
POSITION STATEMENT: Testified in support of SB 21
Doug Ward
P.O. Box 7552
Ketchikan, AK 99901
POSITION STATEMENT: Testified in support of SB 21
Sam Kito, Special Assistant to Commissioner Perkins
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
POSITION STATEMENT: Testified in opposition to SB 21
ACTION NARRATIVE
TAPE 97-12, SIDE A
Number 001
SCR 7 THIRTY-FIRST ANNUAL BOYS' STATE
SCR 8 TWENTY-NINTH ANNUAL GIRLS' STATE
CHAIRMAN GREEN called the Senate State Affairs Committee to order
at 3:37 p.m. and brought up SCR 7 and SCR 8 as the first order of
business before the committee.
Number 015
LORALI MEIER , a legislative intern in the office of Senator Loren
Leman, explained Boys' State and Girls' State are week-long
programs that provide high schools with the knowledge of state and
local governments. SCR 7 and SCR 8 recognize the importance of
state and local, public and private involvement in these programs
in order to make them successful. Because SCR 7 and SCR 8
encourage young men and young women to be leaders, Senator Leman
believes these exceptional programs deserve the recognition and
support of the Legislature.
Number 034
SENATOR MACKIE moved that SCR 7 and SCR 8 be passed out of
committee with individual recommendations. Hearing no objection,
it was so ordered.
Number 045
HCR 8 DEFERRED MAINTENANCE TASK FORCE
CHAIRMAN GREEN brought HCR 8 before the committee as the next order
of business.
MIKE HEATWOLE , staff to Representative Gail Phillips, sponsor of
HCR 8, which would create a deferred maintenance task force, read
the following sponsor's statement into the record.
"Deferred maintenance is the result of years of unmet maintenance
on Alaska's public facilities.
Meeting our maintenance needs is not about building a skywalk from
the court to the capitol. It is a about a capitol building that
leaks. It is about docks that are rotting and falling into
harbors, and it is about an infrastructure that needs repair. Some
cost estimates place Alaska's unmet maintenance needs at well over
$1 billion, and some are even closer to $2 billion.
HCR 8 will establish a legislative task force to make
recommendations to the Governor and the Legislature on how to
address Alaska's unmet maintenance needs. The task force will be
made up of five members from the House and five members from the
Senate. The Speaker of the House and the President of the Senate
will also serve as non-voting members of the task force.
The task force will be specifically charged with:
- reviewing and evaluating existing reports and publications
about deferred maintenance recommendations previously made
- identifying and evaluating all current and deferred
maintenance needs
- soliciting public comment about this topic
- submitting a report of its findings and recommendations to
the Governor and Legislature by the convening of the
regular session
- forwarding recommendations about funding all deferred
maintenance needs
The task force will begin work as soon as members are appointed."
Mr. Heatwole informed the committee that Representative Phillips
has personally spoken with the Governor about this task force, and
he agrees with the concept. He has personally pledged his support
from his office and from his commissioners on the task force.
Further, the formation of the task force has received support from
the truckers, contractors, laborers and many concerned Alaskans.
Number 095
JACK KREINHEDER , Senior Policy Analyst, Office of Management &
Budget, voiced the Administration's support of HCR 8 because they
believe the task force is something that is needed; deferred
maintenance is a serious problem that needs to be addressed.
Mr. Kreinheder said the Administration would endorse expanding the
scope of duties of the task force to address not only deferred
maintenance but new facilities and other capital funding. It is
their concern that while deferred maintenance is important, that if
this task force only looks at that aspect of the problem, it would
be overlooking some of the other needs of the state. He added that
his impression is that Representative Phillips is amenable to that
idea.
Mr. Kreinheder related that in addition to broadening the scope of
the task force to cover those issues, the Administration believes
the task force should also address the issue of ongoing maintenance
of state facilities. He said it doesn't help to come up with a
funding solution or solutions to the backlog of deferred
maintenance if we continue to add to our deferred maintenance each
year by short-funding the necessary ongoing maintenance of state
facilities. He added that it is something the Administration has
also attempted to deal with, but found very difficult given the
present budget constraints.
Number 145
SENATOR WARD asked if the language in the resolution didn't already
enable the task force to do what Mr. Kreinheder was suggesting
without making any changes. MR. KREINHEDER acknowledged that it is
not prohibited by the resolution, but he said he doesn't see
anything in it that addresses anything other than deferred
maintenance. He added that if the intent of the Legislature is
clear and there's agreement among all parties that the scope of
work is appropriate for the task force, then it is probably okay,
but he thinks the Administration's preference would be to address
it specifically.
Number 170
SENATOR DUNCAN asked how the Administration comes up with these
projects for which they request deferred maintenance dollars. MR.
KREINHEDER explained there has been a prioritization process
established for deferred maintenance that identifies the highest
priorities needs. In general, the needs that affect health, life
and safety are the ones that tend to rise to the top.
SENATOR DUNCAN commented it is clear that identifying deferred
maintenance is important, but it is not something that we haven't
been doing in this state. However, he said the real issue is not
identifying the needs because the agencies have already identified
them, but identifying how they are going to be funded, and that's
what the major emphasis of the task force should be instead of
spending their time reinventing the wheel. MR. KREINHEDER agreed
with his comments and said he would envision this task force
spending a great deal of its time on how to finance these deferred
maintenance and other capital needs. He also pointed out that in
his six-year capital plan, the Governor has proposed using general
fund bond issues to address the state's capital needs, and that's
something they think would be appropriately addressed by this task
force as well.
Number 225
SENATOR DUNCAN asked Mr. Heatwole if he was satisfied that the
language in the resolution really directs the task force towards
the major task of identifying funding sources and ways to fund the
deferred maintenance needs in this state. MR. HEATWOLE replied
that it is their understanding that the reports relating to
deferred maintenance needs do exist and they should be relatively
quick to compile, and that the real work of the task force is to
identify ways to address funding concerns. The speaker is
satisfied with the language in the resolution, and they have
already begun to compile a file to forward to the task force as
soon as it is established.
Number 250
SENATOR MACKIE said he has introduced SB 37 that deals not only
with deferred maintenance of schools, but with new facilities as
well, and he doesn't read anything in the resolution that would
allow this task force to address those needs, other than deferred
maintenance. He asked if Representative Phillips would have any
objection to expanding this to deferred maintenance and new
facility needs because there are a couple of significant proposals
that are before the Legislature dealing with deferred maintenance
as well as new construction. MR. HEATWOLE responded that question
was something he would have to take back to Representative
Phillips.
Number 295
There being no further testimony on HCR 8, CHAIRMAN GREEN asked for
the will of the committee.
SENATOR WARD moved HCR 8 be passed out of committee with individual
recommendations. Hearing no objection, it was so ordered.
Number 300
SB 87 ARCHITECTS, ENGINEERS & SURVEYORS
CHAIRMAN GREEN brought SB 87 before the committee as the next order
of business. It was noted there was a proposed State Affairs CS
for the committee's consideration.
SENATOR MACKIE moved CSSB 87(STA) be adopted. Hearing no
objection, CHAIRMAN GREEN stated the committee substitute was
adopted as a working document.
ANNETTE KREITZER , staff to the Senate Labor & Commerce Committee,
explained the change in the State Affairs CS from what passed out
of the Labor & Commerce Committee appears in Sections 6 & 7. It
was an amendment that was proposed in the Labor & Commerce
Committee, but they did not have all the consensus from all parties
involved who wanted to comment on the proposed amendment. It
basically provides that land surveyors can be registered to teach
in an institution of higher learning. She noted the land surveyors
have sought this amendment.
Number 335
There being no further testimony on CSSB 87(STA) CHAIRMAN GREEN
asked for the pleasure of the committee.
SENATOR MACKIE moved CSSB 87(STA) and the attached fiscal note be
passed out of committee with individual recommendations. Hearing
no objection, it was so ordered.
SJR 22 ALASKA MILITARY BASES
CHAIRMAN GREEN announced SJR 22 was before the committee for its
consideration.
Number 345
CHRIS NELSON , staff to Senator Robin Taylor, explained the
Department of Defense is currently conducting what is now known as
the Quadrennial Defense Review, which addresses all aspects of
military policy, and it is looking at opportunities for expansion
as well as some cuts that might be made. The resolution directs
the attention of the Department of Defense to the opportunities for
using Alaska's bases for military training, and the fact that
Alaska's bases are modern, up-to-date, and under-utilized.
CHAIRMAN GREEN asked for the pleasure of committee on SJR 22.
SENATOR WARD moved SJR 22 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
SB 105 LEGISLATIVE ETHICS CODE REFORM
CHAIRMAN GREEN brought SB 105 back before the committee. She
directed attention to a proposed amendment which would include the
Executive Ethics Act in SB 105.
SENATOR WARD moved the adoption of Amendment No. 2, which would add
the Executive Ethics Act to SB 105. SENATOR MACKIE objected.
SENATOR MACKIE commented that last year's ethics bill didn't make
it through the process so he is concerned with what was contained
in that bill that members may have had an objection to. He said he
thinks SB 105 is a good bill as currently written, and he would
appreciate some committee time to sit down with the drafter and
staff from the Ethics Committee and go through each one of the
changes so everyone fully understands what it does. BEN BROWN ,
staff to Senator Kelly, assured Senator Mackie that the amendment
would only put the executive branch under an ethics code very
similar to the one the Legislature currently exists under, but the
prime difference being the Personnel Board would play the role that
the Ethics Committee plays in the legislative branch. He also
clarified that last year's legislation passed the Senate
unanimously, but it was the offering of an amendment that dealt
with the legislative side of things in the House Finance Committee
that ended up tripping the bill up in the final stages of the
session, the most controversial of those amendments being a ban on
spousal lobbying.
SENATOR MACKIE asked if it was the Chair's intent to adopt this one
amendment and move the bill out, and CHAIRMAN GREEN acknowledged
that was correct. SENATOR MACKIE then removed his objection to the
amendment and SENATOR DUNCAN objected, stating he doesn't believe
the committee should be adopting a 27-page amendment without having
an opportunity to go through and review it.
Number 485
Following brief discussion, CHAIRMAN GREEN stated SB 105 would be
held over to the Thursday, March 20 meeting.
Number 500
SB 21 ALASKA MARINE HIGHWAY AUTHORITY
CHAIRMAN GREEN brought SB 21 before the committee as the final
order of business.
SENATOR ROBIN TAYLOR , prime sponsor of SB 21, read the following
sponsor statement into the record:
"SB 21 will establish the Alaska Marine Highway Authority to assume
management of the Marine Highway System from the Department of
Transportation & Public Facilities.
"The Authority would be a public corporation of the state as an
instrumentality of DOT/PF, but would have a legal existence
independent and separate from the state. The new Authority would
be comparable to the Alaska Housing Finance Corporation or the
Alaska Industrial Development and Export Authority. However, it is
different from the Alaska Railroad Board; it would not own its own
assets, and would not be able to be self sufficient.
"Establishment of such an authority boards would bring maritime
experience and continuity to the management of the Alaska Marine
Highway System.
"Based on information gathered at public hearing over the interim,
the Senate Task Force on the Alaska Marine Highway System concluded
that the legislature should consider the creation of such an
Authority.
"Testimony received by the Task Force indicated that DOT management
of the marine highway lacks focus and that AMHS administration
under DOT lacks maritime experience.
"Management under DOT has become insular and is unresponsive to
input from vessel employees and the general public. Scheduling is
chaotic and the fare structure has discouraged ridership. The
reservations system has been an abject failure.
"While concerns over funding levels are valid, the naturally
bureaucratic mind-set of the Department has tightened what former
director Jim Ayers termed a "death spiral".
"Establishment of the Alaska Marine Highway Authority will not be
a panacea, but will give the system a new perspective. It will
also give it some history and background in maritime management,
which it does not have now, as well as it will provide an
opportunity for some major changes that will all to the benefit of
the system itself, the legislature and the people of Alaska."
Number 515
SENATOR TAYLOR directed attention to two proposed amendments to SB
21. He explained the first amendment would tighten up the
designation of the maritime union representative by providing that
the union representative would be a representative of the largest
number of onboard employees in the authority. It also makes
certain the commissioner of DOT would not end up being the chairman
of the board.
SENATOR MACKIE commented that IBU would be the representative of
the largest number of onboard employees, and he questioned why the
representation was being limited to one particular union. SENATOR
TAYLOR replied that there is another union seat available, and it
was just felt that at least one seat ought to represent the
majority of the employees. He added he is trying to get as much
balance to the board so that it will work effectively.
Number 565
SENATOR TAYLOR , addressing the second amendment, explained the
governor would be appointing the members to the board, with the
exception of the commissioner of DOT, and it was felt that those
six members should stand for confirmation before the Legislature.
However, before confirmation can be required, the directors must
have a quasi-judicial function about them. The amendment
accomplishes that purpose by providing that the authority may adopt
regulations.
SENATOR MACKIE asked why these board members would have to be
confirmed if he is trying to come up with something comparable to
AIDEA and AHFC. SENATOR TAYLOR responded this is to address a
concern that the makeup of the board could easily be stacked.
TAPE 97-12, SIDE B
Number 555
SENATOR WARD moved adoption of the following Amendment No. 1.
Hearing no objection, CHAIRMAN GREEN stated the amendment was
adopted.
Amendment No. 1
Page 1, line 13: Delete "a maritime union"
Insert "the maritime union representing the
largest number of onboard employees of the authority"
Page 3, lines 3 - 4: Delete "their number"
Insert "the appointed directors"
SENATOR WARD moved adoption of the following Amendment No. 2.
Hearing no objection, CHAIRMAN GREEN stated the amendment was
adopted.
Amendment No. 2
Page 2, line 8: Delete "members" and insert "directors"
Page 2, line 9: Following "affairs." insert "The appointed
directors are subject to confirmation by a majority of the members
of the legislature in joint session"
Page 2, line 10: Delete "members" and insert "directors"
Page 4, following line 13 insert new paragraph (10) to read:
"(10)" adopt regulations under AS 44.62 (Administrative
Procedure Act) governing
(A) access to and use of services and facilities of the
authority;
(B) the authority of the officers and crew of vessels of
the authority to maintain peace and order as necessary to protect
the health, safety, and public welfare of the patrons and employees
of the authority;
(C) rates, tariffs, and other charges for transportation
and other services provided by the authority;"
Renumber the following paragraphs accordingly.
Page 4, line 16: Delete all material.
Renumber the following paragraph accordingly.
Number 560
SENATOR DUNCAN asked how this authority, since it going to be
autonomous, is going to work with the budget process. SENATOR
TAYLOR said he believes it will work just as the current one works.
The board, itself, or its executive director, will appear before
committees of the Legislature, they will submit a proposed budget
and that budget will be adjusted up or down as the Legislature sees
fit. He said he doesn't see a dramatic change in the process, but
he thinks its good to be concerned about whether or not that
authority would continue to have the level of support from the
executive branch.
SENATOR DUNCAN said that was his concern, that the more autonomous
we make it, what type of support does it lose from the executive
branch for the operational side of the budget, as well as the
commissioner of DOT is going to have pressure from the highway side
to provide a majority of the federal highway funds to highways and
not the Marine Highway System because it is no longer his
responsibility. He asked Senator Taylor if he had any fear that
all of a sudden the Marine Highway System will take a real back
seat as far as funding necessary improvements, renovations,
maintenance, etc. SENATOR TAYLOR answered he didn't think it could
do much worse. He noted the state of Washington intentionally
makes certain that they don't have any of the federal highway funds
mixed in, and, as a consequence, they then can dictate that their
boats will be repaired only in Puget Sound yards. He said he
thinks it helps the commissioner to the extent that he now has a
more autonomous group arguing with probably better credibility than
what current staff is able to argue.
Number 445
SENATOR MACKIE said he supports the concept of the board membership
having representation of people that work on the ferries, because
he thinks a lot of the information that's readily available from
people that actually work on the ships is not being currently
utilized to make it a better system. However, he questioned if
conflict of interest problems could arise by a couple of members
sitting on the board making decisions over working conditions,
contracts, or other kinds of things that actually affect them.
SENATOR TAYLOR replied that with seven members on this board, he
doesn't believe it is going to be a problem. He added that he is
trying to place members out of this fleet into direct control of
this operation because he believes they want to keep the system
going.
SENATOR MACKIE noted there is less service now than there was six
years ago, the public is paying more than they were years ago, the
Legislature is appropriating less general funds, etc., and he
asked what kind of money does he think is going to be saved in
switching to this kind of management, and how are we going to be
able to improve service. SENATOR TAYLOR replied he believes that
though there will be an initial transition cost and start up cost,
if a higher level of maritime experience were involved in
management and if management would reduce itself in size to where
it was comparable to other maritime operations, that there would be
significant savings. Those savings could then be put into further
service out in the fleet.
Number 350
CHAIRMAN GREEN stated testimony would be taken from individuals
waiting to testify over the teleconference network.
ANDREA BARKLEY , an employee of the Alaska Marine Highway System
testifying from Ketchikan, said she has just come from a meeting
with Commissioner Perkins and Gary Haden, and the crews on the
Marine Highway System were able to submit three more alternatives
for possible fleet deployment. She said she believes Commissioner
Perkins is interested in solving some of the problems, but she is
not sure if, even through this administrative process, he would be
able to do it himself.
Ms. Barkley said the Executive Committee of the Inland Boatmen's
Union has passed a resolution in support of SB 21. She also voiced
her support for the two amendments adopted by the committee.
Concluding, Ms. Barkley said she hopes the perception in the
Legislature is not that the system is so broken that it must be
thrown in the garbage can, because that is not the case. The crews
on the Marine Highway System really love their jobs, and that's why
they care so much and wish to see it survive and to prosper. She
said they have an administrative problem and they need to be able
to change the way that they are administrated.
Number 298
DOUG WARD , Project Manager of Alaska Ship & Drydock, the current
operators of the state-owned Ketchikan Shipyard, spoke in support
of an amendment adopted in the Senate Transportation Committee,
which added the interport differential, and which is designed to
level the playing field for Alaska shipyards in competitive bids
situations with out-of-state shipyards. The amendment only asks
that the state consider all of the costs that go into transporting
a vessel, and it brings fairness to the evaluation process in how
the interport differential is used in evaluating a bid. It does
not change how the state currently conducts its bidding practices.
All it does is request a full accounting of the interport costs to
make a more fair evaluation process.
Number 250
SAM KITO , Special Assistant to Commissioner Perkins, Department of
Transportation & Public Facilities, read a summary of a prepared
statement that was read into the record by Commissioner Perkins in
the Senate Transportation Committee. (See Senate Transportation
minutes dated March 6, 1997)
Mr. Kito, speaking to interport differential provision that was
added in the Transportation Committee, said the department is
concerned that the interport differential costs potentially could
cost the Marine Highway System. A recent AIDEA report estimates
that the cost to perform work on the vessels in Ketchikan was on
the average 20 percent higher than outside the state. Using that
20 percent number the system believes it could face an additional
$500,000 annually in costs for work at the Ketchikan shipyard.
Also, this change will increase the cost that the Marine Highway
System will not be able to receive reimbursement for under a
federal project.
Number 148
There being no further testimony on SB 21, CHAIRMAN GREEN stated it
was her intention to hold the bill and schedule it for another
hearing on Thursday, March 20. She then adjourned the meeting at
5:07 p.m.
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