Legislature(2003 - 2004)
05/04/2004 09:21 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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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