Legislature(2003 - 2004)
05/04/2004 09:21 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
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CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328(FIN)
An Act relating to the national forest income program
in the Department of Community and Economic Development
and to the authority of the department to adopt
regulations; making conforming amendments; and
providing for an effective date.
DICK COOSE, STAFF, SENATOR BERT STEDMAN, explained that the
legislation would make statutory changes required for the
Department of Community and Economic Development to disburse
federal funds commonly referred to as the "timber receipts".
The "Secure Rural Schools and Community Self-Determination
Act of 2000" made substantive changes to the federal program
commonly known as National Forest Receipts. The Federal Act
is subject to reauthorization in 2006. National Forest
Receipts are distributed to the State for schools and roads
within the boundary of the national forest in which they are
collected. Mr. Coose noted that the Senate Finance
Committee amended the bill to define the student "average
daily membership" (ADM) for the purpose of distributing
forest receipts within unorganized boroughs.
Mr. Coose continued, in order to address federal changes,
the Department of Community and Economic Development must
amend program regulations so the payments to communities
located within the Tongass and Chugach National Forests
conform to the new federal requirements. Subsequent to the
adoption of the program regulation changes, the Department
of Law advised the Department of Community and Economic
Development that it lacks the statutory authority to
implement the federal changes through its regulations. SB
328 provides the Department with the authority to adopt
regulations necessary to implement the revised federal
program in a manner consistent with federal law.
Mr. Coose pointed out that the legislation provides general
regulation adoption authority for the Department to carry
out its statutory functions. The change corrects a
statutory problem created by the merger of the Department of
Commerce and Economic Development and the Department of
Community and Regional Affairs. Mr. Coose identified the
changes made in previous committees.
Representative Foster MOVED to report HCS CS SB 328 (CRA)
out of Committee with individual recommendations and with
the accompanying fiscal note. There being NO OBJECTION, it
was so ordered.
HC CS SS SB 328 (CRA) was reported out of Committee with a
"do pass" recommendation and with zero note #1 by the
Department of Community & Economic Development.
SB337
CS FOR SENATE BILL NO. 337(L&C)
An Act relating to the powers of the Alaska Energy
Authority to make grants and loans, to enter into
contracts, and to improve, equip, operate, and maintain
bulk fuel, waste energy, energy conservation, energy
efficiency, and alternative energy facilities and
equipment; relating to the bulk fuel revolving loan
fund; relating to the Alaska Energy Authority's
liability for the provision of technical assistance to
rural utilities; relating to the Alaska Energy
Authority's investment of the power development fund;
repealing the electrical service extension fund; and
providing for an effective date.
BECKY GAY, (TESTIFIED VIA TELECONFERENCE), PROJECT MANAGER,
ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY, (AIDEA),
ALASKA ENERGY AUTHORITY (AEA), ANCHORAGE, commented that SB
337 relates to the:
· Powers of the Alaska Energy Authority (AEA) to make
grants and loans and enter into contracts;
· The bulk fuel revolving loan fund;
· AEA's potential liability for the provision of
technical assistance to rural utilities;
· AEA's investment of the power development fund, and
· Repeals the electrical service extension fund.
Section 1 amends AS 42.45.0 10, establishing the power
project fund, to add authorization for AEA to make loans
from the fund for waste energy, energy conservation, energy
efficiency, and alternative energy facilities and equipment.
Similarly, Section 9 of the bill would amend the general
powers of AEA to authorize it to improve, equip, operate,
maintain, and enter into contracts for the construction,
financing, operation, and maintenance of:
· Bulk fuel,
· Waste energy,
· Energy conservation,
· Energy efficiency, and
· Alternative energy facilities and equipment.
The Denali Commission and other federal agencies have
provided substantial funding for such projects, and the
Legislature has authorized AEA's receipt and expenditure of
the federal money.
Ms. Gay pointed out that Section 11 repeals AS 42.45.060,
which establishes a loan committee to review and approve
loans from the power project fund and the rural
electrification revolving loan fund. Upon repeal of the
loan committee statute, the credit department of the Alaska
Industrial Development and Export Authority (AIDEA), which
manages the AEA's loan programs, would continue to review
applications for loans from those funds in accordance with
the applicable regulations. Section 2 of the bill would
continue the requirement present in AS 42.4 5.060(g) for
legislative approval of loans for projects in which the
cumulative State monetary involvement, through loans,
grants, and bonds, is at least $5,000,000 and loans for more
than $5,000,000. Sections 1, 3, 4, and 6, contain
conforming amendments to reflect the repeal of AS 42.45.060.
She continued, Sections 5 and 7, amend AS 42.45.2 50, which
governs loans from the bulk fuel revolving loan fund, to
authorize loans from the fund to "persons," defined with
reference to AS 01.10.060 to include corporations,
cooperatives, joint ventures, and governmental entities,
that generate power or supply the public with fuel used in
communities with populations of less than 2,000 people, as
well as loans to the communities themselves. Presently, the
statute authorizes loans to "private individuals" and to the
communities. The Department of Law recently interpreted the
term "private individuals" to include only natural persons.
Section 12 of the bill makes the amendments retroactive to
June 1, 1984, to encompass active loans from the fund to
such entities.
Ms. Gay noted that Section 8 amends AS 42.45.400, which
requires the AEA to provide technical assistance to rural
utilities, to specify that the statutory mandate may not be
used as an independent basis for tort liability against AEA.
The AEA would continue to be liable for negligence if it
fails to use reasonable care in providing the technical
assistance.
Section 10 of the bill would amends AS 44.83.386, relating
to investment of the power development fund, to provide that
AEA, rather than the Department of Revenue, invest the fund.
She pointed out that AEA, with the concurrence of the
Department of Revenue, has been investing the fund since
1993. AEA would continue to remit all fund earnings to the
general fund.
Section 11, in addition to repealing AS 42.45.060 as
discussed above, repeals AS 42.45.200, (the electrical
service extension fund, which is inactive), and repeals AS
42.45.250(I)(1) to remove an unnecessary definition of a
term that is not used in the statute. Ms. Gay concluded her
testimony.
Co-Chair Williams MOVED to ADOPT Amendment #1, #23-GS2076,
Craver, 5/3/04. Co-Chair Harris OBJECTED for the purpose of
discussion.
PETER ECKLUND, HOUSE FINANCE COMMITTEE STAFF, REPRESENTATIVE
BILL WILLIAMS, explained that several years ago, a tax
incentive was passed for ethanol produced from wood waste
for seafood waste. The incentive will expire June 30, 2004
and Amendment 1 extends the date to June 30, 2009.
Ms. Gay noted that AIDEA was neutral on Amendment 1.
Mr. Ecklund pointed out the amendment would require a title
change. Co-Chair Harris WITHDREW his OBJECTION to Amendment
1. He added that the title concern could be addressed on
the House Floor.
Representative Foster MOVED to report HCS CS SB 337(FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CS SB 337(FIN) was reported out of Committee with "no
recommendation" and with zero note #1 by the Department of
Revenue and zero note #2 by Department of Community &
Economic Development.
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