Legislature(2005 - 2006)
05/02/2005 10:36 AM Senate FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 249(RLS)
"An Act relating to enhanced 911 systems and enhanced 911
surcharges imposed by a municipality, public municipal
corporation, or village."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE MIKE HAWKER, the bill's sponsor, noted that the
Committee previously heard the Senate companion bill to this
legislation. The House version of the bill before the Committee
included some technical changes such as changing
"telecommunication" to "telephone" and "E 911" to "Enhanced 911".
In addition, the maximum tax amount allowable without voter
approval was increased from $1.50 to $2.00.
10:37:57 AM
TIM ROGERS, Alaska Municipal League, testified via teleconference
from an offnet location in support of this bill. He would be
available to answer questions.
10:38:28 AM
Co-Chair Green remarked that this matter has had considerable
attention, and that the majority of the Committee's language
recommendations pertinent to the Senate companion bill were
incorporated into this House bill. The three changes in this
version of the bill, as communicated by Representative Hawker,
would be "a great improvement".
10:38:54 AM
Co-Chair Wilken stated that this legislation is a "big issue" to
the Fairbanks North Star Borough and the City of Fairbanks. The
$2.00 maximum tax limit would not sufficiently cover the costs of
the Enhanced 911 system in Fairbanks. Therefore, the City would be
required to make internal adjustments.
Co-Chair Wilken stated that Fairbanks is primarily concerned with
the fact that local voter approval would be required to increase
the Enhanced 911 service assessment beyond the $2.00 limit that
would be specified in Statute. The concern is that the public might
not support the need. A forthcoming amendment would change the
manner through which the local Enhanced 911 surcharge could be
managed by allowing the local assembly rather than the public to
decide the issue.
Co-Chair Wilken informed the Committee that local assembly and
mayoral elections are held every three years in Fairbanks.
Campaigns for those seats could be intensive and expensive. The
concern is that, even though the Enhanced 911 issue would be
considered a worthy initiative, the issue would have to compete
with the assembly and mayoral elections and "would be lost in the
noise". It would be secondary to the focus on the candidate
elections.
Amendment #1: This amendment deletes "surcharge amount is approved
by the voters of the enhanced 911 service area" in Sec. 2(a) page
two lines 14 and 15 and replaces it with "municipality adopts a
separate ordinance authorizing the increase".
Co-Chair Wilken moved for adoption of Amendment #1.
Co-Chair Wilken argued that the current language in the bill would
shortchange the Enhanced 911 service. While the effort is to make
the service more responsive and enhance public safety in the
community, the opposite would be true. He opined that, were it put
to a local vote, he, having used the service, would be one of a few
who would vote for an increased Enhanced 911 surcharge.
Nonetheless, while only one in ten people have used the service, it
would be available for all ten.
Co-Chair Green objected to the amendment. A tax limitation in this
regard has "long been in Statute", and the proposal to increase the
current 50-cent tax limit to $2.00 would quadruple the revenue to
most large communities. It is interesting how the blame pertaining
to this issue transitions from one entity to another: when the
local phone utility, which has no control over the issue
incorporates the Enhanced 911 surcharge into their subscribers'
utility bills, the subscribers blame the utility; the utility would
deflect that blame and explain that the charge was due to a city or
borough decision; and the city would then deflect the criticism to
the Legislature by intoning that the State allowed them to increase
the charge. While she could accept the $2.00 tax limit, any charge
imposed over that amount in a local community should be approved by
that community's voters.
10:44:34 AM
Senator Olson requested the sponsor's position of the amendment.
10:44:41 AM
Representative Hawker replied that he had previously considered
this issue. His determination was that arguments for both positions
are "equally sound". He understood the argument of allowing those
most closely affected by the issue to vote in its regard as well as
the concern that voters might not support increasing fees upon
themselves for a public issue.
10:45:36 AM
Co-Chair Green commented on the neutrality of Representative
Hawker's position.
10:45:48 AM
Senator Dyson, noting that he had served for six years on a local
municipal assembly, spoke in support of the amendment.
Traditionally, in a western representative democracy, people are
elected to positions and charged with studying an issue and making
a decision in its regard. He agreed with Co-Chair Wilken that the
elected body could best make the decision regarding a local
Enhanced 911 surcharge. His Senate district seat predecessor,
Senator Sam Cotton, was heard to say in response to whether he
would vote in support of the will of his constituents that, "most
of the issues are very complicated and take a lot of study … at the
end of the day, I hope that I vote the way that you would have
wanted to vote if you had had access to the information and the
debate of the history of the issue like I have a chance to study."
The hope is that the electorate would vote for mature and wise
people who would make the right decision after they had had the
time to study the issue and hear the debate.
10:47:32 AM
Co-Chair Green viewed Senator Dyson's position as being "kind of
interesting", as he has been "a proponent of sound budgeting" and
watchful of elected officials' efforts to increase spending. "This
flies directly in the face of the tax cap that the City of
Anchorage" and other communities have. This would be "a mechanism
by which they can get around the tax limit, and that bothers me."
Therefore, "we shouldn't be providing them an avenue in which to go
around that tax cap."
Co-Chair Green observed that one of the problems with the Enhanced
911 system is that, were a poll taken, it would be determined that
few people "know what that system consists of." Communicating the
financial mechanics of the system to people would be a "huge
education" effort, as attested by the discussions that transpired
during Committee hearings. The language provided in this
legislation would clearly define how this money could be utilized
and would distinguish between "the needs verses the wants".
Co-Chair Green maintained her objection to Amendment #1.
10:49:08 AM
Senator Olson voiced concern that the amendment could make it
easier for a municipality to increase the surcharge rate were
funding short.
10:49:27 AM
Co-Chair Green agreed.
10:49:30 AM
Senator Dyson appreciated Co-Chair Green's comments about the
"apparent hypocrisy" of his earlier position on the amendment. He
has oftentimes encountered issues in conflict with his principles.
He knew of many circumstances in which the Municipality of
Anchorage Assembly has attempted to maneuver "around their tax cap
rather than facing it honestly." He appreciated being "reminded"
that this action might enable such action. Providing the ability
"to end run their tax cap" would not be his desire. However, the
significance of the issue and the principle of a representative
government override that concern in this case.
A roll call was taken on the motion.
IN FAVOR: Senator Dyson and Co-Chair Wilken
OPPOSED: Senator Olson, Senator Hoffman, Senator Stedman, and Co-
Chair Green
ABSENT: Senator Bunde
The motion FAILED (2-4-1)
The amendment FAILED to be adopted.
10:51:06 AM
Co-Chair Wilken offered a motion to report the bill from Committee
with individual recommendations and accompanying fiscal note.
There being no objection, CS HB 249(RLS) was REPORTED from
Committee with zero fiscal note #1 dated April 8, 2005 from the
Department of Public Safety.
10:51:16 AM
AT EASE 10:51:59 AM / 10:53:35 AM
10:53:36 AM
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