HOUSE FINANCE COMMITTEE April 21, 1994 1:35 P.M. TAPE HFC 94 - 138, Side 2, #000 - end. TAPE HFC 94 - 139, Side 1, #000 - #411. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 1:35 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Keith Kelton, Director, Division of Facility Construction & Operation, Department of Environmental Conservation; Clyde Stoltzfus, Special Assistant, Commissioner's Office, Department of Transportation and Public Facilities; Jack Chenoweth, Attorney, Legislative Legal Counsel, Legislative Affairs Agency; Jay Hogan, Staff, Representative Ron Larson. SUMMARY SB 210 An Act relating to disposal of state land within five miles of the right-of-way of the Dalton Highway to a licensed public utility or a licensed common carrier. HCS CS SB 210 (FIN) was reported out of Committee with a "do pass" recommendation with fiscal notes by the Department of Natural Resources, 2/15/94 and the Department of Transportation and Public Facilities dated 2/07/94. SB 330 An Act relating to water quality enhancement, water supply, waste water, and solid waste grants; the Alaska clean water fund; the establishment of the Alaska clean water account, the Alaska drinking water fund, and the Alaska drinking water account; and providing for an effective date. CS SB 330 (RLS) was reported out of Committee with "no recommendations" and with a zero fiscal note 1 by the Department of Environmental Conservation dated 2/24/94. SB 247 An Act relating to state leases and to state lease-purchase and lease-financing agreements, and repealing a legislative authorization previously given for acquisition of a facility through a lease-purchase agreement; and providing for an effective date. HCS CS SB 247 (FIN) was reported out of Committee with a "do pass" recommendation and with two zero fiscal notes by the Department of Administration dated 1/24/94 and Legislative Affairs Agency dated 1/21/94. HB 541 An Act providing for an advisory vote of the people concerning a preferred alternative for increasing revenue available to support state government; and providing for an effective date. HB 541 was HELD in Committee for further discussion. SENATE BILL 330 "An Act relating to water quality enhancement, water supply, waste water, and solid waste grants; the Alaska clean water fund; the establishment of the Alaska clean water account, the Alaska drinking water fund, and the Alaska drinking water account; and providing for an effective date." KEITH KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION & OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, noted that SB 330 proposed modifications to two statutes administered by the Division of Facility Construction & Operation within the Department, AS 46.03.030 (Municipal Matching Grants) and AS 46.03.032 (Alaska Clean Water Fund). Mr. Kelton provided background history of the bill which would create the Alaska Clean Water Fund in order to provide low interest loans for the construction of municipal waste water projects. The program, capitalized 83% by the federal government, was designed to replace EPA construction grant programs. He continued that since only the waste water projects could be financed, the Legislature then created a separate account for excess State appropriations to provide loans for water supply and solid waste projects. Mr. Kelton noted the account has not yet been capitalized and that the only capitalized loans are for waste water projects. 2 Mr. Kelton added, SB 330 would provide funding assistance through grants and loans to Alaska's incorporated municipalities for the construction of water, waste water and solid waste improvements. Co-Chair MacLean questioned the legislative impact to the VSW program and the matching grants for water and sewer projects. Mr. Kelton responded that there would be a small fiscal impact to the other grants at a higher percentage than is currently available. He added that the impact would be controlled by the appropriation process and the priority list would be assembled by the Department. Co-Chair MacLean reiterated that this legislation would be impacting the municipal matching grants list. Only two projects were funded this year through the municipal matching grants for water and sewer and with the proposed legislation, the local communities would be more seriously competing for that money. Representative Brown MOVED to report CS SB 330 (RLS) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTIONS, it was so ordered. CS SB 330 (RLS) was reported out of Committee with "no recommendations" and with a zero fiscal note by the Department of Environmental Conservation dated 2/24/94. SENATE BILL 210 "An Act relating to disposal of state land within five miles of the right-of-way of the Dalton Highway to a licensed public utility or a licensed common carrier." Representative Therriault explained SB 210 as proposed by Senator Bert Sharp. He commented that under current statute, the State is prohibited from disposing of or leasing State land within five miles of the right-of-way of the Dalton Highway. The State recently acquired several parcels of land in the area, under the land selection allocation, yet they could not be leased or purchased. Representative Therriault explained the Subcommittee changes made to the work draft resulting from concerns in the Committee. Co-Chair MacLean MOVED to adopt work draft 8-LS1110\O, Luckhaupt, 4/18/94, as the version before the Committee. There being NO OBJECTION, it was so ordered. 3 CLYDE STOLTZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, noted the Department's support of the legislation and offered to answer question's of the Committee. Representative Therriault MOVED to report HCS CS SB 210 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CS SB 210 (FIN) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Natural Resources dated 2/15/94 and the Department of Transportation and Public Facilities dated 2/07/94. SENATE BILL 247 "An Act relating to state leases and to state lease-purchase and lease-financing agreements, and repealing a legislative authorization previously given for acquisition of a facility through a lease-purchase agreement; and providing for an effective date." JACK CHENOWETH, ATTORNEY, LEGISLATIVE LEGAL COUNSEL, LEGISLATIVE AFFAIRS AGENCY, clarified past action taken by the Committee in regards to SB 247. When the bill came to him, he was asked to incorporate two amendments. One of the amendments was an exception for the University Board of Regents addressing the necessity to rent or lease space based upon federal or university receipts. He concluded that addition would warrant a title change. The title is tightly drawn and would not admit to any exceptions beyond the ones listed and in the body of the bill. Mr. Chenoweth continued that the second amendment would require a deletion of an approval to construct a court building in Fairbanks. That insertion would also require a title change. Representative Therriault provided the Committee with a work draft of a house concurrent resolution #8-LS1905\A, Chenoweth, 4/21/94, which would open up the title to accommodate Amendment #2 but would not include language to accommodate Amendment #1. Representative Hanley elaborated that the bill had moved from Committee and that Representative Therriault had moved to divide the question in order to address a title change. He added that Co-Chair MacLean objected to that motion. Mr. Chenoweth pointed out that when the legislation was 4 initially drafted the title was broad, and then because of a provision inserted in the original bill, language was added to read "and repealing the legislative authorization previously given for acquisition of a facility given a lease-purchase agreement". The language clarified that nothing would be "slipped" through the legislation. The Senate proceeded to tighten the title which removed that provision. Representative Therriault MOVED to adopt the language of the proposed house concurrent resolution which would broaden the title to include necessary changes in order to accommodate Amendment #2. Co-Chair MacLean WITHDREW her OBJECTION to the motion. There being NO OBJECTIONS, the motion was adopted. Representative Therriault MOVED TO RESCIND previous action taken in passing HCS CS SB 247 (FIN) out of Committee. Co- Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Hanley, Navarre, Parnell, Therriault, Foster, Grussendorf. OPPOSED: Martin, Brown, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION PASSED (6-4). Representative Therriault MOVED TO RESCIND previous action taken in adopting Amendment #1. Co-Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Foster, Grussendorf. OPPOSED: Martin, Brown, Hanley, Larson, MacLean. Representative Hoffman was not present for the vote. The MOTION FAILED (5-5). (Tape Change, HFC 94-139, Side 1). Representative Martin MOVED to report HCS CS SB 247 (FIN) out of Committee with the accompanying fiscal notes. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Navarre, Parnell, Brown, 5 Grussendorf, Hanley, MacLean, Larson. OPPOSED: Therriault, Foster. Representative Hoffman was not present for the vote. The MOTION PASSED (8-2). Co-Chair MacLean MOVED to adopt the House Concurrent Resolution work draft 8-LS1905\A, Chenoweth, 4/21/94. Co- Chair MacLean MOVED to amend the resolution to Page 2, Line 6, adding the language "and repealing a legislative authorization previously given for acquisition of a facility through a lease-purchase agreement". Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Brown, Hanley, Martin, Larson, MacLean. OPPOSED: Therriault, Grussendorf. Representative Hoffman was not present for the vote. The MOTION PASSED (6-2). Co-Chair MacLean MOVED to adopt the amended House Concurrent Resolution. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Brown, Grussendorf, Hanley, Martin, MacLean, Larson. OPPOSED: Therriault, Foster. Representatives Hoffman and Navarre were not present for the vote. The MOTION PASSED (7-2). HCS CS SB 247 (FIN) was reported out of Committee with a "do pass" recommendation and with a title change through a House Concurrent Resolution and with zero fiscal notes by the Department of Administration dated 1/24/94 and the Legislative Affairs Agency dated 1/21/94. HOUSE BILL 541 "An Act providing for an advisory vote of the people concerning a preferred alternative for increasing revenue available to support state government; and providing for an effective date." 6 Co-Chair Larson provided the Committee members with a handout "Selected NFIB/Alaska Ballot Results-1993". [Copy on file]. Co-Chair MacLean suggested establishing a limit to the permanent fund dividend. She recommended that a cap of either $900/$700/$400 be proposed to the public for permanent fund checks. Co-Chair MacLean then suggested forming an interim task force to consider revenue sources as generated through the permanent fund. HB 541 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 2:40 P.M. HOUSE FINANCE COMMITTEE April 21, 1994 1:35 P.M. TAPE HFC 94 - 138, Side 2, #000 - end. TAPE HFC 94 - 139, Side 1, #000 - #411. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 1:35 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Keith Kelton, Director, Division of Facility Construction & Operation, Department of Environmental Conservation; Clyde Stoltzfus, Special Assistant, Commissioner's Office, Department of Transportation and Public Facilities; Jack Chenoweth, Attorney, Legislative Legal Counsel, Legislative Affairs Agency; Jay Hogan, Staff, Representative Ron Larson. SUMMARY SB 210 An Act relating to disposal of state land within five miles of the right-of-way of the Dalton Highway to a licensed public utility or a licensed common carrier. HCS CS SB 210 (FIN) was reported out of Committee 7 with a "do pass" recommendation with fiscal notes by the Department of Natural Resources, 2/15/94 and the Department of Transportation and Public Facilities dated 2/07/94. SB 330 An Act relating to water quality enhancement, water supply, waste water, and solid waste grants; the Alaska clean water fund; the establishment of the Alaska clean water account, the Alaska drinking water fund, and the Alaska drinking water account; and providing for an effective date. CS SB 330 (RLS) was reported out of Committee with "no recommendations" and with a zero fiscal note by the Department of Environmental Conservation dated 2/24/94. SB 247 An Act relating to state leases and to state lease-purchase and lease-financing agreements, and repealing a legislative authorization previously given for acquisition of a facility through a lease-purchase agreement; and providing for an effective date. HCS CS SB 247 (FIN) was reported out of Committee with a "do pass" recommendation and with two zero fiscal notes by the Department of Administration dated 1/24/94 and Legislative Affairs Agency dated 1/21/94. HB 541 An Act providing for an advisory vote of the people concerning a preferred alternative for increasing revenue available to support state government; and providing for an effective date. HB 541 was HELD in Committee for further discussion. SENATE BILL 330 "An Act relating to water quality enhancement, water supply, waste water, and solid waste grants; the Alaska clean water fund; the establishment of the Alaska clean water account, the Alaska drinking water fund, and the Alaska drinking water account; and providing for an effective date." KEITH KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION & OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, noted that SB 330 proposed modifications to two statutes administered by the Division of Facility Construction & Operation within the Department, AS 46.03.030 (Municipal 8 Matching Grants) and AS 46.03.032 (Alaska Clean Water Fund). Mr. Kelton provided background history of the bill which would create the Alaska Clean Water Fund in order to provide low interest loans for the construction of municipal waste water projects. The program, capitalized 83% by the federal government, was designed to replace EPA construction grant programs. He continued that since only the waste water projects could be financed, the Legislature then created a separate account for excess State appropriations to provide loans for water supply and solid waste projects. Mr. Kelton noted the account has not yet been capitalized and that the only capitalized loans are for waste water projects. Mr. Kelton added, SB 330 would provide funding assistance through grants and loans to Alaska's incorporated municipalities for the construction of water, waste water and solid waste improvements. Co-Chair MacLean questioned the legislative impact to the VSW program and the matching grants for water and sewer projects. Mr. Kelton responded that there would be a small fiscal impact to the other grants at a higher percentage than is currently available. He added that the impact would be controlled by the appropriation process and the priority list would be assembled by the Department. Co-Chair MacLean reiterated that this legislation would be impacting the municipal matching grants list. Only two projects were funded this year through the municipal matching grants for water and sewer and with the proposed legislation, the local communities would be more seriously competing for that money. Representative Brown MOVED to report CS SB 330 (RLS) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTIONS, it was so ordered. CS SB 330 (RLS) was reported out of Committee with "no recommendations" and with a zero fiscal note by the Department of Environmental Conservation dated 2/24/94. SENATE BILL 210 "An Act relating to disposal of state land within five miles of the right-of-way of the Dalton Highway to a licensed public utility or a licensed common carrier." Representative Therriault explained SB 210 as proposed by Senator Bert Sharp. He commented that under current statute, the State is prohibited from disposing of or 9 leasing State land within five miles of the right-of-way of the Dalton Highway. The State recently acquired several parcels of land in the area, under the land selection allocation, yet they could not be leased or purchased. Representative Therriault explained the Subcommittee changes made to the work draft resulting from concerns in the Committee. Co-Chair MacLean MOVED to adopt work draft 8-LS1110\O, Luckhaupt, 4/18/94, as the version before the Committee. There being NO OBJECTION, it was so ordered. CLYDE STOLTZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, noted the Department's support of the legislation and offered to answer question's of the Committee. Representative Therriault MOVED to report HCS CS SB 210 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CS SB 210 (FIN) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Natural Resources dated 2/15/94 and the Department of Transportation and Public Facilities dated 2/07/94. SENATE BILL 247 "An Act relating to state leases and to state lease-purchase and lease-financing agreements, and repealing a legislative authorization previously given for acquisition of a facility through a lease-purchase agreement; and providing for an effective date." JACK CHENOWETH, ATTORNEY, LEGISLATIVE LEGAL COUNSEL, LEGISLATIVE AFFAIRS AGENCY, clarified past action taken by the Committee in regards to SB 247. When the bill came to him, he was asked to incorporate two amendments. One of the amendments was an exception for the University Board of Regents addressing the necessity to rent or lease space based upon federal or university receipts. He concluded that addition would warrant a title change. The title is tightly drawn and would not admit to any exceptions beyond the ones listed and in the body of the bill. Mr. Chenoweth continued that the second amendment would require a deletion of an approval to construct a court building in Fairbanks. That insertion would also require a title change. 10 Representative Therriault provided the Committee with a work draft of a house concurrent resolution #8-LS1905\A, Chenoweth, 4/21/94, which would open up the title to accommodate Amendment #2 but would not include language to accommodate Amendment #1. Representative Hanley elaborated that the bill had moved from Committee and that Representative Therriault had moved to divide the question in order to address a title change. He added that Co-Chair MacLean objected to that motion. Mr. Chenoweth pointed out that when the legislation was initially drafted the title was broad, and then because of a provision inserted in the original bill, language was added to read "and repealing the legislative authorization previously given for acquisition of a facility given a lease-purchase agreement". The language clarified that nothing would be "slipped" through the legislation. The Senate proceeded to tighten the title which removed that provision. Representative Therriault MOVED to adopt the language of the proposed house concurrent resolution which would broaden the title to include necessary changes in order to accommodate Amendment #2. Co-Chair MacLean WITHDREW her OBJECTION to the motion. There being NO OBJECTIONS, the motion was adopted. Representative Therriault MOVED TO RESCIND previous action taken in passing HCS CS SB 247 (FIN) out of Committee. Co- Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Hanley, Navarre, Parnell, Therriault, Foster, Grussendorf. OPPOSED: Martin, Brown, MacLean, Larson. Representative Hoffman was not present for the vote. The MOTION PASSED (6-4). Representative Therriault MOVED TO RESCIND previous action taken in adopting Amendment #1. Co-Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Foster, Grussendorf. OPPOSED: Martin, Brown, Hanley, Larson, MacLean. 11 Representative Hoffman was not present for the vote. The MOTION FAILED (5-5). (Tape Change, HFC 94-139, Side 1). Representative Martin MOVED to report HCS CS SB 247 (FIN) out of Committee with the accompanying fiscal notes. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Navarre, Parnell, Brown, Grussendorf, Hanley, MacLean, Larson. OPPOSED: Therriault, Foster. Representative Hoffman was not present for the vote. The MOTION PASSED (8-2). Co-Chair MacLean MOVED to adopt the House Concurrent Resolution work draft 8-LS1905\A, Chenoweth, 4/21/94. Co- Chair MacLean MOVED to amend the resolution to Page 2, Line 6, adding the language "and repealing a legislative authorization previously given for acquisition of a facility through a lease-purchase agreement". Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Brown, Hanley, Martin, Larson, MacLean. OPPOSED: Therriault, Grussendorf. Representative Hoffman was not present for the vote. The MOTION PASSED (6-2). Co-Chair MacLean MOVED to adopt the amended House Concurrent Resolution. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Brown, Grussendorf, Hanley, Martin, MacLean, Larson. OPPOSED: Therriault, Foster. Representatives Hoffman and Navarre were not present for the vote. The MOTION PASSED (7-2). 12 HCS CS SB 247 (FIN) was reported out of Committee with a "do pass" recommendation and with a title change through a House Concurrent Resolution and with zero fiscal notes by the Department of Administration dated 1/24/94 and the Legislative Affairs Agency dated 1/21/94. HOUSE BILL 541 "An Act providing for an advisory vote of the people concerning a preferred alternative for increasing revenue available to support state government; and providing for an effective date." Co-Chair Larson provided the Committee members with a handout "Selected NFIB/Alaska Ballot Results-1993". [Copy on file]. Co-Chair MacLean suggested establishing a limit to the permanent fund dividend. She recommended that a cap of either $900/$700/$400 be proposed to the public for permanent fund checks. Co-Chair MacLean then suggested forming an interim task force to consider revenue sources as generated through the permanent fund. HB 541 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 2:40 P.M. 13