SENATE RULES COMMITTEE April 18, 1994 3:24 p.m. MEMBERS PRESENT Senator Rick Halford, Chair Senator Steve Rieger, Vice Chair Senator Suzanne Little Senator Fred Zharoff MEMBERS ABSENT Senator George Jacko COMMITTEE CALENDAR HOUSE CONCURRENT RESOLUTION NO. 27 Relating to support for the National Rifle Association's gun safety program for children. CS FOR HOUSE BILL NO. 330(TRA) "An Act relating to the use of natural gas as a motor vehicle fuel in state-owned vehicles and to the Department of Transportation and Public Facilities' authority to participate in joint ventures related to natural gas." HOUSE BILL NO. 450 "An Act relating to investment pools for public entities; and providing for an effective date." SENATE BILL NO. 240 "An Act relating to an optional municipal tax credit for costs of certain river habitat protection improvements." CS FOR HOUSE BILL NO. 454(FIN) "An Act making a supplemental appropriation to the Department of Law to pay costs of certain continuing legal proceedings; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION HCR 27 - See State Affairs minutes dated 3/16/94. HB 330 - See Transportation minutes dated 4/5/94. See Labor and Commerce minutes dated 4/14/94. HB 450 - Labor & Commerce referral waived 4/5/94. Finance report 4/6/94. SB 240 - See Resources minutes dated 2/4/94, 2/14/94, and 2/15/94. Finance report 4/14/94. HB 454 - See Judiciary minutes dated 3/21/94 and 3/23/94. Finance report 3/28/94. WITNESS REGISTER Allison Elgee, Statwide Budget Director University of Alaska 910 Yukon Drive Fairbanks, AK 299775-2388 POSITION STATEMENT: Offered information on SB 240 Jim Baldwin, Assistant Attorney General Department of Law P.O. Box 110300 Juneau, AK 99811-0300 POSITION STATEMENT: Offered information on HB 454 ACTION NARRATIVE TAPE 94-5, SIDE A Number 001 CHAIRMAN RICK HALFORD called the Senate Rules Committee meeting to order at 3:24 p.m. SENATOR ZHAROFF moved and asked unanimous consent that HCR 27 (SUPPORT NRA GUN SAFETY PROGRAM) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR ZHAROFF moved and asked unanimous consent that CSHB 330(TRA) (FUEL STATE AUTO FLEET WITH NATURAL GAS) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. SENATOR ZHAROFF moved and asked unanimous consent that HB 450 (INVESTMENT POOLS FOR PUBLIC ENTITIES) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. CHAIRMAN HALFORD brought SB 240 (MUNICIPAL TAX EXEMPT'N/STUDENT HOUSING) before the committee as the next order of business. He directed attention to a Rules CS which changes the title on the bill. ALLISON ELGEE, Statewide Budget Director, University of Alaska, explained that during this past year the university has been exploring a variety of options of developing public/private partnerships for construction of student housing so that they would not have to rely solely on general fund financing in order to build such housing. One of the proposals put before the university is a proposal that would allow private construction of student housing that would be on university property, adjacent to the present student housing in Fairbanks. The proposal would be contingent upon the further property tax exemption than of the improvements to that property. The language proposed in the committee substitute would allow for an optional municipal tax exemption. SENATOR RIEGER pointed out that the Finance Committee considered the property tax exemption. He said the Rules CS prevents it from inadvertently, on the part of the municipality, becoming a permanent exemption, which, he thought, was a good addition. CHAIRMAN HALFORD asked for the will of the committee on the Rules CS. SENATOR RIEGER moved that CSSB 240(RLS) be adopted. Hearing no objection, the motion carried. SENATOR RIEGER moved that CSSB 240(RLS) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. SENATOR ZHAROFF moved and asked unanimous consent that SB 240 be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. CHAIRMAN HALFORD brought CSHB 454(FIN) (APPROP: COST OF OIL/GAS LITIGATION) before the committee as the final order of business. He directed attention to a proposed Rules SCS and explained the dollars are the same, but the Rules SCS proposes taking the monies from the budget reserve as opposed from the general fund. JIM BALDWIN, Assistant Attorney General, Department of Law, noted he had provided the committee with a memo explaining the methodology in computing what the budget reserve would have paid from the effective date of the amendment for recoveries that have been deposited in the Constitutional Budget Reserve Fund. By the department's methodology, they determined that the budget reserve fund would have paid a total of $68,738,958 as the share of that fund for the cost of recovery. These figures were presented to the House Finance Committee and their action was to substitute general funds with budget reserve funds for FY 95, and, substantially, all of the recoveries that they make for this BRU (oil and gas special litigation) is destined either for the permanent fund or the budget reserve fund. SENATOR ZHAROFF asked if this was a FY 94 supplemental budget request, and MR. BALDWIN acknowledged that it was, and the reason it was in a separate bill is that the department hoped it would be fast tracked from the normal supplemental process. CHAIRMAN HALFORD asked for the will of the committee. SENATOR RIEGER moved that SCS CSHB 454(RLS) be adopted. Hearing no objection, the motion carried. SENATOR RIEGER moved that SCS CSHB 454(RLS) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. SENATOR RIEGER moved and asked unanimous consent that CSHB 454(FIN) be approved for calendaring at the Chair's discretion. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting was adjourned at 3:35 p.m.