HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE March 25, 1993 1:00 p.m. MEMBERS PRESENT Representative Harley Olberg, Chairman Representative Jerry Sanders, Vice-Chairman Representative Con Bunde Representative John Davies Representative Cynthia Toohey Representative Ed Willis Representative Bill Williams MEMBERS ABSENT None OTHER HOUSE MEMBERS PRESENT Representative Carl Moses Representative Richard Foster COMMITTEE CALENDAR *HB 93: "An Act relating to village public safety officers program." PASSED FROM COMMITTEE WITH A DO PASS RECOMMENDATION *SSHB 34: "An Act relating to a registration tax and a certificate of title for a snow vehicle; relating to municipal taxation of a snow vehicle; and providing for an effective date." NOT HEARD *HB 70: "An Act relating to state impact aid for municipalities; and providing for an effective date." NOT HEARD *HB 71: "An Act relating to the involuntary dissolution of Native corporations; and providing for an effective date." PASSED FROM COMMITTEE WITH A DO PASS RECOMMENDATION *HB 173: "An Act exempting certain charitable gaming activity from municipal sales and use taxes." NOT HEARD *HB 198: "An Act relating to the Alaska regional economic assistance program; and providing for an effective date." PASSED FROM COMMITTEE WITH A DO PASS RECOMMENDATION *HB 211: "An Act relating to the municipal tax exemption for inventories intended for export." NOT HEARD *HB 220: "An Act relating to the economic development grant program; and providing for an effective date." PASSED FROM COMMITTEE WITH A DO PASS RECOMMENDATION *HB 221: "An Act relating to workers' compensation for volunteer ambulance attendants, police officers, and fire fighters; and providing for an effective date." NOT HEARD (* first public hearing) WITNESS REGISTER Representative Carl Moses Capitol Building, Room 204 Juneau, AK 99801-1182 Phone: 465-4451 POSITION STATEMENT: Prime sponsor of HB 220 Representative Richard Foster State Capitol Court Building, Room 611 Juneau, AK 99801-1182 Phone: 465-3789 POSITION STATEMENT: Prime Sponsor of HB 71, 93 and 198 Larry LaBolle, Legislative Aide to Representative Richard Foster State Capitol Court Building, Room 611 Juneau, AK 99801-1182 Phone: 465-3789 POSITION STATEMENT: Explained aspects of HB 71; gave overview of HB 198 Bill Miller, President Dot Lake Village Council P.O. Box 2262 Dot Lake, AK 99737 Phone: 883-4227 POSITION STATEMENT: Supported HB 93 Charles Miller Dot Lake Village Council P.O. Box 2251 Dot Lake, AK 99737 Phone: 883-5181 POSITION STATEMENT: Supported HB 93 George Cole, VPSO Manager Central Council 320 W. Willoughby #300 Juneau, AK 99801 Phone: 586-1432 POSITION STATEMENT: Supported HB 93 Thomas Sterns, Captain Alaska State Troopers Department of Public Safety 5700 E. Tudor Road Anchorage, AK 99516 Phone: 269-5530 POSITION STATEMENT: Supported HB 93 Charles Grediagin Bristol Bay Native Association P.O. Box 565 Dillingham, AK 99506 Phone: 842-5257 POSITION STATEMENT: Supported HB 93 Kent Swisher, Executive Director Alaska Municipal League 217 Second Street, Suite 200 Juneau, AK 99801 Phone: 586-1325 POSITION STATEMENT: Supported HB 93 Carl Berger, Director Lower Kuskokwim Economic Development Council Bethel, AK Phone: 899-4313 POSITION STATEMENT: Supported HB 198 Donna Tollman, Executive Director Copper River Economic Development Council P.O. Box 9 Glennallen, AK 995588 Phone: 822-5001 POSITION STATEMENT: Supported HB 198 Christopher Gates, Director Division of Economic Development Department of Commerce and Economic Development P.O. Box 110804 Juneau, AK 99811-0804 Phone: 465-2017 POSITION STATEMENT: Supported HB 198 PREVIOUS ACTION BILL: HB 93 SHORT TITLE: VILLAGE PUBLIC SAFETY OFFICERS PROGRAM BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) FOSTER,Menard,Nicholia TITLE: "An Act relating to the village public safety officers program." JRN-DATE JRN-PG ACTION 01/27/93 164 (H) READ THE FIRST TIME/REFERRAL(S) 01/27/93 164 (H) CRA, JUDICIARY, FINANCE 01/29/93 184 (H) COSPONSOR(S): MENARD 02/19/93 396 (H) COSPONSOR(S): NICHOLIA 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 34 SHORT TITLE: SNOWMOBILE REGISTRATION TAX BILL VERSION: SSHB 34 SPONSOR(S): REPRESENTATIVE(S) MENARD BY REQUEST TITLE: "An Act relating to a registration tax and a certificate of title for a snow vehicle; relating to municipal taxation of a snow vehicle; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/04/93 33 (H) PREFILE RELEASED 01/11/93 33 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 33 (H) CRA, STATE AFFAIRS, FINANCE 02/22/93 410 (H) SPONSOR SUBSTITUTE INTRODUCED- NEW TITLE 02/22/93 410 (H) CRA, STATE AFFAIRS, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 70 SHORT TITLE: STATE IMPACT AID FOR MUNICIPALITIES BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MACLEAN TITLE: "An Act relating to state impact aid for municipalities; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/18/93 101 (H) READ THE FIRST TIME/REFERRAL(S) 01/18/93 101 (H) CRA, JUDICIARY, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 71 SHORT TITLE: DISSOLUTION OF NATIVE CORPORATIONS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) FOSTER TITLE: "An Act relating to the involuntary dissolution of Native corporations; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/18/93 101 (H) READ THE FIRST TIME/REFERRAL(S) 01/18/93 101 (H) CRA, JUDICIARY 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 173 SHORT TITLE: MUNI FEES & TAXATION OF CHARITABLE GAMES BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) LARSON TITLE: "An Act exempting certain charitable gaming activity from municipal sales and use taxes." JRN-DATE JRN-PG ACTION 02/24/93 433 (H) READ THE FIRST TIME/REFERRAL(S) 02/24/93 433 (H) CRA, JUDICIARY, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 198 SHORT TITLE: REGIONAL ECONOMIC ASSISTANCE GRANTS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) FOSTER TITLE: "An Act relating to the Alaska regional economic assistance program; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/05/93 548 (H) READ THE FIRST TIME/REFERRAL(S) 03/05/93 549 (H) CRA, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 211 SHORT TITLE: MUNICIPAL INVENTORY TAX EXEMPTION:EXPORTS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) TOOHEY,Brown TITLE: "An Act relating to the municipal tax exemption for inventories intended for export." JRN-DATE JRN-PG ACTION 03/10/93 590 (H) READ THE FIRST TIME/REFERRAL(S) 03/10/93 590 (H) CRA, JUDICIARY 03/12/93 629 (H) COSPONSOR(S): BROWN 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 220 SHORT TITLE: ECONOMIC DEVELOPMENT GRANT FUND BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MOSES TITLE: "An Act relating to the economic development grant program; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/12/93 619 (H) READ THE FIRST TIME/REFERRAL(S) 03/12/93 619 (H) CRA, LABOR & COMMERCE, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: HB 221 SHORT TITLE: WORKERS COMP:VOLUNTEER FIRE FIGHTERS, ETC BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HUDSON,Grussendorf TITLE: "An Act relating to workers' compensation for volunteer ambulance attendants, police officers, and fire fighters; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/12/93 619 (H) READ THE FIRST TIME/REFERRAL(S) 03/12/93 619 (H) CRA, LABOR & COMMERCE, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 ACTION NARRATIVE TAPE 93-18, SIDE A Number 000 CHAIRMAN HARLEY OLBERG called the meeting to order at 1:00 p.m. He noted Representatives Bunde, Williams and Willis were present. HB 220: ECONOMIC DEVELOPMENT GRANT FUND Number 027 REPRESENTATIVE CARL MOSES, PRIME SPONSOR OF HB 220, testified by reading his sponsor statement into the record verbatim and introduced the CS. (Copies of this sponsor statement and the committee substitute may be found in the House Community and Regional Affairs Committee Room, Capitol Room 110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) Representative Cynthia Toohey and Vice-Chairman Jerry Sanders joined the committee at 1:03 p.m. Number 080 REPRESENTATIVE CON BUNDE MOVED to ADOPT CSHB 220. There were no objections, and the MOTION CARRIED. REPRESENTATIVE BUNDE asked if CSHB 220 would generate more money than it costs. REPRESENTATIVE MOSES said there is a new zero fiscal note which the committee did not have yet. Number 126 REPRESENTATIVE BUNDE MOVED that CSHB 220 be moved out of committee with individual recommendations. There were no objections, and the MOTION CARRIED. HB 71: DISSOLUTION OF NATIVE CORPORATIONS Number 150 REPRESENTATIVE RICHARD FOSTER, PRIME SPONSOR OF HB 71, testified by reading his sponsor statement into the record. (A copy of the sponsor statement may be found in the House Community and Regional Affairs Committee Room, Capitol Room 110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) He added, "This allows them to reincorporate and be able to officially do business according to state law... This is a paperwork thing, just to clean up and help some of those Native corporations." Representative John Davies joined the committee at 1:10 p.m. CHAIRMAN OLBERG pointed out the equivalent of HB 71 died in Senate Rules last year. Number 190 REPRESENTATIVE CYNTHIA TOOHEY asked, "Why do you need this?" REPRESENTATIVE FOSTER said, "There are some villages that aren't able to apply for state assistance or grants or anything. Some villages don't have a village council or a city council. They don't have any official governing body within that village and so the IRA or the Native corporation has taken over their governing functions and the state won't give them a grant or any help or revenue sharing or anything unless they have somebody to officially hand it over to and some of the villages, they're totally disorganized." Number 200 REPRESENTATIVE TOOHEY gave an example of her forming a corporation and failing to file a biennial report. She asked, "What is the reason that they can't do it, why do we have to have a bill?" Number 214 LARRY LABOLLE, STAFF TO REPRESENTATIVE FOSTER, testified to explain, "This is tied in with the ANCSA (Alaska Native Claims Settlement Act) incorporations that were made at the time of the Native Lands Claims. They need to go back and refer to that federal title that they were incorporated under. That's why they have the need to reinstate the existing corporation... This bill (HB 71) provides a one year window for that reinstatement of that ANCSA incorporation." REPRESENTATIVE TOOHEY asked, "They can't do it without it?" MR. LABOLLE said, "They can establish another corporation, but it still doesn't fall under that ANCSA incorporation." Number 227 REPRESENTATIVE BILL WILLIAMS clarified, "Basically, what happened earlier is that a lot of these corporations...didn't understand what the corporation was... That happened in our village. We didn't send in the necessary money...we caught up with it (but) some villages are not as sophisticated as people in the urban areas." VICE CHAIRMAN JERRY SANDERS asked, "Is this about villages or regional corporations?" REPRESENTATIVE WILLIAMS indicated both. VICE-CHAIRMAN SANDERS said, "It seems like a regional corporation should have a little more responsibility about something this important. If it has to do with villages, you got me." CHAIRMAN OLBERG said, "It specifically has to do with villages." Number 252 REPRESENTATIVE BUNDE confirmed, "This is a one year window and then it would sunset..." REPRESENTATIVE FOSTER said, "I'm just trying to help the Native community." CHAIRMAN OLBERG clarified, "It appears to open a one year window as of the effective date for these people to get back on board and get their paperwork up to snuff. It's a housekeeping measure on behalf of village corporations..." Number 269 REPRESENTATIVE BUNDE MOVED that HB 71 be passed out of committee with individual recommendations. There were no objections, and the MOTION CARRIED. HB 93: VILLAGE PUBLIC SAFETY OFFICERS PROGRAM Number 273 REPRESENTATIVE FOSTER, PRIME SPONSOR OF HB 93, testified on the CS draft included in the committee members packets. (A copy of the committee substitute may be found in the House Community and Regional Affairs Committee Room, Capitol Room 110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) He described CSHB 93 by summarizing his sponsor statement. (A copy of the sponsor statement may be found in the House Community and Regional Affairs Committee Room, Capitol Room 110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) Number 297 BILL MILLER, PRESIDENT, DOT LAKE VILLAGE COUNCIL, testified via teleconference from Tok saying, "It's a very good bill (HB 93), but also I feel that it doesn't go quite far enough. There could possibly be a requirement in there that positions be developed for a community desiring to have a position of VPSO (Village Public Safety Officer) that meets minimum standards or minimum requirements similar to the following: One would be a population of at least 25 year round residents with a population density of at least five persons per square miles. This would allow for the possibility of having the VPSO in these communities, but not just having them for any little place, four or five people that want one." MR. B. MILLER continued, "Second, for the communities and villages that are not road connected to any Alaska State Trooper office or if road connected, would have a trooper response time of two hours in non-emergency conditions or a half hour under emergency conditions. Also I'd like to question and ask if there would be a possibility of having a bill of some type...that could be introduced to allow for a village tribal course. That could recognize and handle minor infractions with the VPSO and through their own court system...this would alleviate a lot of the pressure on the courts in our areas also." Number 332 CHARLES MILLER, DOT LAKE VILLAGE COUNCIL, testified via teleconference from Tok saying, "I'm also in full support of this bill (HB 93). One thing I'd like to say is I'd like to see more VPSO positions in the villages, especially since there's been such a cutback in trooper funding." He gave an example where a trooper was called at 8:00 a.m. to a village disturbance but did not respond until 2:00 p.m. that afternoon. Number 349 REPRESENTATIVE BUNDE informed Mr. Miller that he is currently sponsoring a bill, HB 18, "that would allow places like Dot Lake to contract for the troopers for additional service, if they would like to have additional services." MR. C. MILLER asked where the funding would come from. REPRESENTATIVE BUNDE said, "You have to assess yourself and form a limited service district and the local population that wants additional service would have to come up with funding." MR. C. MILLER said, "Unincorporated communities can't assess taxes." REPRESENTATIVE BUNDE said, "You may not be able to qualify..." Number 373 GEORGE COLE, VPSO MANAGER, CENTRAL COUNCIL, testified via teleconference from Sitka in support of HB 93. "It does legitimize the program. It changes it from a budgetary line item in the Department of Public Safety into a real program. I think this will go a long way towards eliminating questions about under what authority do we even have a VPSO program... It provides a mechanism for a yearly legislative review... This bill would provide for the establishment of regulations to manage the program and thus it would provide a forum for changing those regulations that would be initiated by many of the communities involved in overseeing the program." Number 406 THOMAS STERNS, CAPTAIN, ALASKA STATE TROOPERS, DEPARTMENT OF PUBLIC SAFETY, testified from Anchorage via teleconference in support of HB 93. He said, "I am the manager of the VPSO program, I've been asked by the Commissioner's Office to speak to the committee in regards to HB 93. ...I think this is a very good step forward for the program and the state." REPRESENTATIVE ED WILLIS asked how the troopers recruit and train. CAPT. STERNS said, "Recruitment is conducted by the non- profit regional corporations... As far as training, once a VPSO has been selected by the non-profits, a six-week academy in Sitka is conducted..." CHARLES GREDIAGIN, BRISTOL BAY NATIVE ASSOCIATION, testified via teleconference from Dillingham and read aloud a resolution prepared by the VPSO program managers supporting HB 93 and SB 15. (A copy of the resolution may be found in the House Community and Regional Affairs Committee Room, Capitol Room 110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) Number 494 KENT SWISHER, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL LEAGUE, testified briefly in support of HB 93. VICE-CHAIRMAN SANDERS asked if putting HB 93 in statute increases the liability of the state. CHAIRMAN OLBERG said, "They are already state employees, as I understand it. This legitimizes them within the Department of Public Safety..." MR. LABOLLE said, "I doubt that there's any more increased liability, because I think the liability already exists." REPRESENTATIVE JOHN DAVIES said, "Having the present circumstances is one more liability than if you pass this legislation." Number 528 REPRESENTATIVE BUNDE said, "I assume we have a zero fiscal note and that this simply puts into statute the grants that are provided (already)." MR. LABOLLE confirmed, "This does just formalize the grants that are already in existence to the regional corporations which administer the program." REPRESENTATIVES DAVIES AND TOOHEY MOVED to ADOPT CSHB 93. There were no objections, and the MOTION CARRIED. REPRESENTATIVE BUNDE MOVED to PASS CSHB 93 (CRA) out of committee with individual recommendations. There were no objections, and the MOTION CARRIED. HB 198: REGIONAL ECONOMIC ASSISTANCE GRANTS Number 549 MR. LABOLLE testified on behalf of the sponsor, Representative Foster, and read the sponsor statement into the record. (A copy of the sponsor statement may be found in the House Community and Regional Affairs Committee Room, Capitol Room 110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) He added, "This legislation (HB 198) in essence, would do two things: It would allow the Department of Commerce and Economic Development to develop guidelines that would change the match from a one to one, to what they feel is more appropriate for some of the rural ARDOR (Alaska Regional Development Organization) groups. The second portion of this would allow the fund to make grants of up to $100,000 instead of the $50,000 that currently is stipulated in statute." Number 573 CARL BERGER, DIRECTOR, LOWER KUSKOKWIM ECONOMIC DEVELOPMENT COUNCIL, BETHEL, testified via teleconference from Kotlik in support of HB 198. He said, "At the present time we are receiving a $47,400 grant from the state...matched dollar for dollar. It's difficult for us smaller programs, such as mine, to provide the necessary match in order to draw those funds. This is the money that the state provides us to essentially operate on. We have a one person staff which is me, and it allows a little bit of travel for me to get around the region to work with the communities that are in my district." Number 623 DONNA TOLLMAN, EXECUTIVE DIRECTOR, COPPER VALLEY ECONOMIC DEVELOPMENT COUNCIL, GLENNALLEN, testified in favor of HB 198 saying, "Right now we are working with 38 different people with business plans to locate for them various types of loan programs and funding in order for them to start small businesses which create, ultimately, jobs in these rural areas... What happens is that we spend a great deal of our time trying to keep our doors open to be able to provide these services. We have no corporate sponsors here. It's very difficult for us to raise our matching funds." Number 652 REPRESENTATIVE BUNDE asked, "I'm wondering what the administrative overhead (is), how much money these actual grants get to the small businesses and what's the average longevity of these enterprises?" CHRISTOPHER GATES, DIRECTOR, DIVISION OF ECONOMIC DEVELOPMENT, DEPARTMENT OF COMMERCE, testified providing information on HB 198. "In terms of playing offense, actually creating jobs and activity so that the kids don't have to move out of the villages to find good jobs, we aren't doing that as well as we could. I was the President of the Kenai Peninsula Borough ARDOR for a number of years and I can tell you that the effort and energy spent just finding match monies to survive leaves very little actual time and energy to do any good...a little bit of their time left over to actually hustle jobs and make deals work." REPRESENTATIVE BUNDE rephrased his question about administrative overhead. TAPE 93-18, SIDE B Number 000 MR. GATES gave a description of the tasks of the ARDOR Board of Directors and added, "We paid our own travel. There's no per diem. These are volunteer Boards of Directors." He then gave examples of ARDOR successful businesses. Number 039 MS. TOLLMAN gave a description of the economic development of a theatrical production developed in her area. MR. GATES summarized, "The bill in front of you (HB 198) simply establishes an absolute small foundation of $50,000 where at least they could keep the lights on and the doors open for one person. We set up the increase of another $50,000 which might be available to these ARDORS depending upon grants and matching monies that they then receive. We could have $100,000 into these ARDORS to provide just one contact for economic development...in those local areas." Number 087 REPRESENTATIVE DAVIES MOVED to PASS HB 198 out of committee with individual recommendations. There were no objections, and the MOTION CARRIED. ADJOURNMENT CHAIRMAN OLBERG adjourned the meeting at 1:44 p.m.