Legislature(2015 - 2016)SENATE FINANCE 532
03/23/2015 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB64 | |
| SB15 | |
| SB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 30 | TELECONFERENCED | |
| + | SB 64 | TELECONFERENCED | |
| + | SB 15 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 64
"An Act relating to school bond debt reimbursement;
and providing for an effective date."
9:05:30 AM
LAURA PIERRE, STAFF, SENATOR ANNA MACKINNON, explained SB
64. She said that SB 64 would sunset the school bond debt
reimbursement program for five years, and would reduce the
rates. Currently, the reimbursement rates were 70 percent
for a standard construction or new build on a school; and
60 percent on non-standard expansion and construction.
Ms. Pierre discussed the Sectional Analysis (copy on file):
Section 1: Amends AS 14.11.014, adds new subsection
(d) Sunsets the bond debt reimbursement provisions for
school construction and major maintenance for five
years, January 1, 2015 - July 1, 2020.
Section 2: Amends AS 14.11.100(a) Page 6, line 21
restricts reimbursement of bonds authorized after
January 1, 2015. Page 7, lines 1 - 11, deletes
language relating to bonds authorized after May 1,
2015.
Section 3: Amends AS 14.11.100(a) Page 12, line 17 -
Page 13, line 2 inserts language relating to bonds
authorized on or after July 1, 2020. (18) For projects
approved under AS 14.11.100 (h), (i), and (j)(2) - (5)
the reimbursement would be 50 percent.
(19) For projects approved under AS 14.11.100
(h), (i), and (j)(2), (3), and
(5) the reimbursement would be 40 percent.
Section 4: Amends AS 14.11.100, adds a new section (s)
Restricts the Commissioner from approving an
application for bond debt reimbursement between
January 1, 2015 - July 1, 2020
Section 5: Amends AS 14.11.102, adds new section
(c)Restricts the Commissioner from approving an
application for bond debt reimbursement between
January 1, 2015 - July 1, 2020
Section 6: Repeals sections 1, 4, and 5 of this act on
July 1, 2020
Section 7: Retroactivity clause
Sections 1, 2, 4, and 5 of this act are
retroactive to January 1, 2015
Section 8: Section 3 of this act takes effect July 1,
2020
Section 9: Sections 1, 2, 4, 5, and 7 of this act take
effect immediately
9:08:49 AM
Senator Olson remarked that the bill was a positive move
toward addressing the shortfall in revenue. He wondered how
the bill affected the construction of the Kivalina School
as related to the Kasayulie Case. Ms. Pierre replied that
the only school with projects on a potential ballot was the
Anchorage School District, and their election would be
April 7, 2015. The Anchorage School District would not
receive reimbursement for the bonds, if the bill were
signed and passed into law prior to the election. She did
not know how the other school districts' bond packages were
structured.
Senator Olson wondered if the bill affected the Kivalina
School construction. Ms. Pierre replied that the
legislation did not affect the Kivalina School
construction.
Senator Bishop wondered if there would be any new budget
requests for new projects.
ELIZABETH NUDELMAN, DIRECTOR, SCHOOL FINANCES AND
FACILITIES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
explained that the timeline eligibility throughout the
legislation was voter authorization. Some of the voter-
authorized bonds were not yet applied to the department,
and some had not yet sold all of the bonds. The legislation
stated that the commissioner may not approve and
application for indebtedness authorized by the qualified
voters of the municipality.
DAVID NEES, SELF, ANCHORAGE (via teleconference), testified
in support of the legislation.
Co-Chair MacKinnon CLOSED public testimony.
9:16:58 AM
AT EASE
9:18:36 AM
RECONVENED
9:18:48 AM
Co-Chair MacKinnon discussed the retroactive effective
date. She remarked that there was some concerns about the
legality of the retroactive date of January 1, 2015, and
how it affected language consistent with statute.
Ms. Pierre explained that she had some discussion regarding
the retroactive effective date. The legislative legal
department suggested and effective date of May 1, 2015,
which reflected current state statute. The statute stated
that districts could issue bond debt from October 2006
through May 1, 2015. She announced that legislative legal
did not express concern regarding the retroactive date, so
long as the legislation were signed and passed by the
Anchorage election on April 7, 2015.
Senator Olson asked if the administration was in favor of
the legislation. Ms. Pierre responded that there was a
scheduled meeting with the governor to discuss the bill.
Co-Chair MacKinnon announced that local communities
currently had the ability to indebt the state to an amount
that the community determines, rather than what the state
determines.
Senator Dunleavy felt that SB 64 was responsible
legislation. He believed that the legislature often invited
lawsuits, but he felt the fear of litigation should not be
a driving force behind supporting a bill.
9:23:30 AM
AT EASE
9:23:59 AM
RECONVENED
9:24:06 AM
Senator Olson agreed with the focus of the legislation. He
remarked that school construction was important, but also
very expensive. He felt that the legislation was prudent.
Senator Dunleavy stressed that there was no guarantee that
the state would provide funding, because it was always
subject to appropriation. Co-Chair MacKinnon agreed with
that assertion.
Vice-Chair Micciche stated that the fiscal note related to
debt service.
9:25:51 AM
AT EASE
9:26:52 AM
RECONVENED
Vice-Chair Micciche expected the bill to have zero fiscal
impact on the state.
Vice-Chair Micciche MOVED to REPORT SB 64 out of committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 64 was REPORTED out of committee with a "do pass"
recommendation and with one new indeterminate fiscal note
from the Department of Education and Early Development.
9:28:03 AM
AT EASE
9:33:09 AM
RECONVENED