Legislature(2005 - 2006)HOUSE FINANCE 519

04/01/2005 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 178 SPECIAL REQUEST LICENSE PLATES
Moved CSHB 178(FIN) Out of Committee
+ HB 185 POSTSECONDARY STUDENT IMMUNIZATION TELECONFERENCED
Moved CSHB 185(FIN) Out of Committee
<Bill rescheduled from 3/31/05>
+ HB 83 SEISMIC HAZARDS SAFETY COMMISSION TELECONFERENCED
Heard & Held
+ HB 25 REFUND OF FISH BUSINESS TAX TO MUNIS TELECONFERENCED
<Bill Hearing Postponed to 1:30 PM>
Bills Previously Heard/Scheduled
HOUSE BILL NO. 83                                                                                                             
                                                                                                                                
     An Act relating to the Alaska Seismic Hazards Safety                                                                       
     Commission.                                                                                                                
                                                                                                                                
REPRESENTATIVE GABRIELLE  LEDOUX, SPONSOR, commented  that HB
83 would extend  the termination date for the  Alaska Seismic                                                                   
Hazards Safety Commission  until June 30, 2010  and would add                                                                   
"tsunami" to all of the sections  addressing the scope of the                                                                   
work of the Alaska Seismic Hazards Safety Commission.                                                                           
                                                                                                                                
Representative LeDoux continued,  with more than 33,000 miles                                                                   
of  shoreline, Alaska  has been  and could  be devastated  by                                                                   
earthquakes and tsunamis.   Since about 1900,  Alaska has had                                                                   
80  magnitude  7  or  larger  earthquakes.    Tsunamis  could                                                                   
greatly affect the fishing industry  in coastal Alaska as was                                                                   
evidenced in the  1964 Alaska earthquake, which  impacted the                                                                   
coastal  communities  of  Prince  William  Sound  and  caused                                                                   
immense  damage recently  to  the fisheries  and  aquaculture                                                                   
sectors of the affected countries in the Indian Ocean.                                                                          
                                                                                                                                
Alaska accounts  for more  than half  of all the  earthquakes                                                                   
that  occur  in  the  U.S.  and  about  ten  percent  of  all                                                                   
earthquakes  worldwide.    One  of the  roles  of  a  Seismic                                                                   
Hazards  Safety Commission  would be to  provide a  proactive                                                                   
resource  for  State  and  local   government  officials  and                                                                   
Alaskan  communities   that  want  assistance   in  acquiring                                                                   
information   and  guidance   necessary   to  help   mitigate                                                                   
earthquake and tsunami hazards.                                                                                                 
                                                                                                                                
Representative LeDoux  concluded that Alaska's  population is                                                                   
growing and  the State's infrastructure  is developing.   The                                                                   
Alaska Seismic  Hazards Safety Commission could  play a vital                                                                   
role  in reducing  earthquake  related  losses.   The  Alaska                                                                   
Seismic  Hazards Safety  Commission  would  be an  invaluable                                                                   
asset in  promoting the  earthquake preparation essential  to                                                                   
reducing earthquake  threats and  future losses to  the State                                                                   
that, without effective mitigation  measures, are inevitable.                                                                   
                                                                                                                                
REPRESENTATIVE  DAVID GUTTENBERG,  SPONSOR, pointed  out that                                                                   
the  Commission  would have  no  authority.   The  Commission                                                                   
would be  charged to do what  is not currently being  done in                                                                   
the State.   He  commented  on the need  to save  lives.   He                                                                   
addressed  insurance  concerns   and  that  rates  should  be                                                                   
different.   At  this  time, there  are  no individual  units                                                                   
statewide to  determine risk factors,  and that would  be the                                                                   
work  of  the   Commission.    He  pointed   out  that  local                                                                   
government members had been added  to reflect local concerns.                                                                   
Alaska has the  largest risk nationally and that  the work of                                                                   
the  Commission would  be  to determine  how  to address  and                                                                   
prevent those risks.                                                                                                            
                                                                                                                                
9:34:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer commented that  in 2001, a Commission had been                                                                   
established.  He noted that Governor  Knowles did not appoint                                                                   
any  members nor  did Governor  Murkowski, later.   He  asked                                                                   
why.                                                                                                                            
                                                                                                                                
Representative  Guttenberg responded  that  it "fell  through                                                                   
the cracks".  He thought that  the Governor now would support                                                                   
the legislation.                                                                                                                
                                                                                                                                
Co-Chair  Meyer  pointed  out   that  he  had  supported  the                                                                   
Commission in 2001 and that he still supports it.                                                                               
                                                                                                                                
9:35:51 AM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault  inquired  where the  funding  would  come                                                                   
from.   Representative  LeDoux referenced  the attached  zero                                                                   
note.    She added  that  Nico  Bus from  the  Department  of                                                                   
Natural  Resources would  address  the fiscal  aspect of  the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Co-Chair  Chenault reiterated  concern  regarding the  fiscal                                                                   
impact.                                                                                                                         
                                                                                                                                
9:37:19 AM                                                                                                                    
                                                                                                                                
NICO  BUS,   ACTING  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                                                                   
SERVICES,  DEPARTMENT OF  NATURAL  RESOURCES, explained  that                                                                   
money had been transferred to the Department's base budget.                                                                     
                                                                                                                                
Co-Chair Chenault reiterated his  fiscal concerns in creating                                                                   
a new commission.  Mr. Bus replied  that the estimated amount                                                                   
of money  needed for  the Commission  would be  approximately                                                                   
$10 thousand  dollars  and would provide  for the  Commission                                                                   
meeting about  four times a year,  twice in person  and twice                                                                   
by teleconference.                                                                                                              
                                                                                                                                
Representative  Holm commented  on  a Department  of  Natural                                                                   
Resources resource  fiscal analysis.  He pointed  out that in                                                                   
the  last three  years, there  have  been lapsed  funds.   He                                                                   
asked  if  the Department  anticipated  having  $28  thousand                                                                   
dollars lapsed in FY06.                                                                                                         
                                                                                                                                
Mr.  Bus replied  that the  original  amount appropriated  in                                                                   
FY03  went   to  the  Governor's   Office.    In   FY04,  the                                                                   
appropriation  was  transferred   to  Department  of  Natural                                                                   
Resources  and they  did  not use  that money.    Some of  it                                                                   
lapsed.  He added  that in the FY05 budget,  the money exists                                                                   
and through  different  increases, some  of those funds  have                                                                   
been  set aside  for  base operations.    He emphasized  that                                                                   
there are funds set aside for the Commission.                                                                                   
                                                                                                                                
9:39:56 AM                                                                                                                    
                                                                                                                                
Representative  Holm questioned if  there were extra  dollars                                                                   
in the budget  that had been indicated to go  somewhere else.                                                                   
Mr. Bus stated that there should  be enough money to fund the                                                                   
Commission project from other projects.                                                                                         
                                                                                                                                
Representative  Holm noted that  he was disturbed  by sources                                                                   
of financing  being redirected.   Mr.  Bus reminded  him that                                                                   
there is a zero fiscal note.                                                                                                    
                                                                                                                                
9:41:35 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze inquired  how  the legislation  would  be                                                                   
interfaced  with other  statewide  projects.   Mr. Bus  noted                                                                   
that  Mr.  Combellick  was  on line  and  could  address  the                                                                   
concern.   He pointed out  that there is significant  federal                                                                   
funding at present time.                                                                                                        
                                                                                                                                
9:43:16 AM                                                                                                                    
                                                                                                                                
ROD  COMBELLICK,   (TESTIFIED  VIA  TELECONFERENCE),   ACTING                                                                   
DIRECTOR,  DIVISION OF  GEOLOGCIAL  AND GEOPHYSICAL  SURVEYS,                                                                   
DEPARTMENT  OF  NATURAL RESOURCES,  ANCHORAGE,  commented  on                                                                   
concerns voiced by  Committee members.  He pointed  out other                                                                   
efforts  happening  in the  State.   There  are  quite a  few                                                                   
efforts,  which  fulfill  one aspect  of  hazard  mitigation,                                                                   
identification and description  of the hazards.  He discussed                                                                   
that there  are many more that  need to be  addressed through                                                                   
mitigation by  taking the information  and putting it  to use                                                                   
to  reduce  hazard  vulnerability.    There  are  significant                                                                   
statewide efforts  happening in the area of  preparedness and                                                                   
response.                                                                                                                       
                                                                                                                                
Mr. Combellick suggested  that there is a lot  missing in the                                                                   
middle.  There should  be  a unit  to  undertake measures  to                                                                   
reduce  vulnerability  and  in  so  doing,  reduce  need  and                                                                   
recovery.  He added that there  are so many costs that result                                                                   
when disasters  occur.  The  Commission will help  coordinate                                                                   
all efforts.                                                                                                                    
                                                                                                                                
9:45:46 AM                                                                                                                    
                                                                                                                                
DR.  GARY  CARVER, (TESTIFIED  VIA  TELECONFERENCE),  SIESMIC                                                                   
GEOLOGIST, KODIAK, reiterated  that the Commission would take                                                                   
measures  before  earthquake  or tsunami  events  occur  that                                                                   
could reduce future looses.  It  would focus on pre-events to                                                                   
help endure  the earthquakes that  are certainly  in Alaska's                                                                   
future.   He  pointed out  that  Alaska is  the most  seismic                                                                   
active  State  in the  Union.   More  than  half  of all  the                                                                   
earthquakes  in the  United  States are  in  Alaska and  that                                                                   
Alaska has 10% of all earthquakes worldwide.                                                                                    
                                                                                                                                
9:47:36 AM                                                                                                                    
                                                                                                                                
Dr.   Carver   continued  by   outlining   seismic   activity                                                                   
throughout the  State.  He pointed  out that the  most active                                                                   
earthquakes  in  Alaska  are  located  in  areas  with  heavy                                                                   
population  density.   He strongly urged  that the  Committee                                                                   
move  the bill  forward,  as it  would  have large  financial                                                                   
benefits to the State.                                                                                                          
                                                                                                                                
9:50:01 AM                                                                                                                    
                                                                                                                                
DR.  PETER HAEUSSLER,  (TESTIFIED  VIA TELECONFERENCE),  U.S.                                                                   
GEOLOGICAL SURVEY (USGS), ANCHORAGE,  testified in support of                                                                   
the Commission.  He stated that  USGS is the principle entity                                                                   
that  does research  on  earthquake hazards  in  Alaska.   He                                                                   
mentioned the  impacts of the  Alaska seismic  safety hazards                                                                   
on the USGS.                                                                                                                    
                                                                                                                                
Dr. Haeussler  viewed the establishment of the  Commission as                                                                   
a positive  thing.   The  Commission would  result in  better                                                                   
information   dissemination  and   cross-pollination.     The                                                                   
Commission  would  create  a   forum  for  everyone  involved                                                                   
statewide to share issues currently happening.                                                                                  
                                                                                                                                
Dr.  Haeussler stated  that  the Commission  would  establish                                                                   
research statewide  and results in better coordination.    He                                                                   
added that  research information  coming in from  a statewide                                                                   
Commission  would carry  more weight  than any single  group.                                                                   
He concluded that research recommendations  that a Commission                                                                   
should produce would  have the potential to  get more federal                                                                   
funding because of the Alaska's seismic location.                                                                               
                                                                                                                                
9:54:38 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer recommended that the Department provide more                                                                     
fiscal information to the Committee.  He stated that the                                                                        
                                                          th                                                                    
bill would be held until the scheduled meeting on April 4.                                                                      
                                                                                                                                
HB 83 was HELD in Committee for further consideration.                                                                          

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