Legislature(2007 - 2008)HOUSE FINANCE 519

03/20/2008 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 311 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
Heard & Held
+ Department Overviews of FY09 Project TELECONFERENCED
Requests:
Alaska Housing Finance Corporation
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 54 CONSTRUCTION OF LEGISLATIVE HALL TELECONFERENCED
Moved CSHB 54(FIN) Out of Committee
HOUSE BILL NO. 54                                                                                                             
                                                                                                                                
     "An Act relating to construction of a legislative hall;                                                                    
     and repealing provisions relating to relocating the                                                                        
     capital, the legislature, or any of the present                                                                            
     functions of state government."                                                                                            
                                                                                                                                
Vice-Chair Stoltze  MOVED to ADOPT  the work draft to  HB 54,                                                                   
labeled 25-LS0284\L, Cook, 3/19/08.                                                                                             
                                                                                                                                
Representative  Gara  OBJECTED.   He  requested  to know  the                                                                   
changes made  in the new  CS.  Co-Chair  Meyer said  he would                                                                   
provide that information.                                                                                                       
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
There being  NO further  OBJECTION, the work  draft to  HB 54                                                                   
was adopted.                                                                                                                    
                                                                                                                                
REPRESENTATIVE MARK NEUMAN, sponsor,  stated that the changes                                                                   
in the new CS were in response  to discussions from committee                                                                   
members.                                                                                                                        
                                                                                                                                
Representative  Gara pointed  out that  the FRANK  Initiative                                                                   
has been deleted  in the bill and there is  no provision that                                                                   
would let  voters approve the  construction of  a legislative                                                                   
hall.   He wondered if  there was any  provision in  the bill                                                                   
for a  voter response.   Representative  Neuman thought  that                                                                   
Representative  Gara's job  should be  to represent  his area                                                                   
regarding this legislation.  Representative  Gara pointed out                                                                   
that he represents people throughout the state.                                                                                 
                                                                                                                                
Co-Chair Meyer  clarified that the  bill proposes to  build a                                                                   
new legislative  hall, not move the capital.   Representative                                                                   
Neuman agreed.                                                                                                                  
                                                                                                                                
Co-Chair  Meyer  announced  that  Amendments  1  and  2  were                                                                   
withdrawn.                                                                                                                      
                                                                                                                                
9:38:32 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment 3:                                                                                      
                                                                                                                                
     Page 4, line 1                                                                                                             
     After "consider"                                                                                                           
     Insert "the  cost to  state residents of  transportation                                                                   
     to  and from  the  proposed  site based  on  calculation                                                                   
     involving  transportation   costs  from  at  least  five                                                                   
     cities,  including one city  in each judicial  district.                                                                   
     The legislative council shall also consider"                                                                               
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Co-Chair  Meyer thought  the wrong approach  was being  taken                                                                   
when considering  costs in this legislation and  in the FRANK                                                                   
Initiative.  He  opined that the cost of the  people's access                                                                   
to  government should  be  considered, not  the  cost to  the                                                                   
state.  He  thought the people's government  should be closer                                                                   
to  the people.   The  average  person cannot  afford to  see                                                                   
their  legislators  in  action.     This  amendment  requires                                                                   
legislative council,  when considering the proposal  to build                                                                   
a  legislative hall,  to  consider the  cost  to the  average                                                                   
Alaskan.    He  maintained  it  would  cost  less  to  access                                                                   
Fairbanks, Anchorage,  or the MatSu  Valley than it  would to                                                                   
access Juneau.  He noted that  it costs over $1,000 to travel                                                                   
from Kotzebue to Juneau.                                                                                                        
                                                                                                                                
9:40:27 AM                                                                                                                    
                                                                                                                                
Representative Gara  countered that if costs  to citizens are                                                                   
the most important  factor, then the move of  the legislative                                                                   
hall should be to Anchorage.                                                                                                    
                                                                                                                                
Co-Chair Meyer  said cost is  one of many factors  considered                                                                   
in the bill.   Representative Gara argued that  since nothing                                                                   
can cost more than $1, it would end up in Anchorage.                                                                            
                                                                                                                                
Representative Neuman  said nothing in Amendment  3 addresses                                                                   
$1.  He agreed  with Co-Chair Meyer that the  costs expressed                                                                   
in the amendment should be considered.                                                                                          
                                                                                                                                
9:42:29 AM                                                                                                                    
                                                                                                                                
Representative Hawker WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
Representative  Kelly OBJECTED.   He clarified that  the bill                                                                   
removes  the  FRANK  Initiative  so the  total  cost  is  not                                                                   
identified, yet the  cost of travel for Alaskans  is required                                                                   
in the bill.                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  noted  the amendment  deals  with  costs  of                                                                   
travel only.                                                                                                                    
                                                                                                                                
Co-Chair Chenault  said costs  of transportation, as  well as                                                                   
for   utility  service   and   airport   access,  should   be                                                                   
considered.                                                                                                                     
                                                                                                                                
Representative  Gara pointed  to the  five factors listed  on                                                                   
page 4: adequate  utility services, adequate  airport access,                                                                   
adequate access by  road, air, or marine ferry,  and adequate                                                                   
health,  education,   and  social  services   facilities  and                                                                   
adequate housing.   He  maintained that  the lowest  costs of                                                                   
all five are in the biggest community - Anchorage.                                                                              
                                                                                                                                
Co-Chair Meyer did not agree.                                                                                                   
                                                                                                                                
Co-Chair  Chenault  argued  that   Juneau  has  the  cheapest                                                                   
electric costs in the state.   Each description of service or                                                                   
access carries  different ramifications  for different  areas                                                                   
of the state.                                                                                                                   
                                                                                                                                
9:45:06 AM                                                                                                                    
                                                                                                                                
Representative  Gara  noted  that   Juneau  cannot  keep  the                                                                   
capital under  this bill  unless they tear  down the  old one                                                                   
and build a new one.                                                                                                            
                                                                                                                                
Representative  Hawker  corrected  that  the  bill  says  for                                                                   
construction or renovation.                                                                                                     
                                                                                                                                
Representative Kelly WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There being NO OBJECTION, Amendment 3 was adopted.                                                                              
                                                                                                                                
9:46:44 AM                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to ADOPT Amendment 4:                                                                               
                                                                                                                                
     Page 2, lines 18-19                                                                                                        
     Delete all material                                                                                                        
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative Hawker explained  that Amendment 4 removes two                                                                   
lines  in the  bill that  address the  request for  proposal:                                                                   
"one courtroom and adequate offices  for judicial officers of                                                                   
the supreme  court and staff;".   He thought that  was beyond                                                                   
the scope of a legislative hall.                                                                                                
                                                                                                                                
Vice-Chair Stoltze agreed.                                                                                                      
                                                                                                                                
Vice-Chair Stoltze WITHDREW his OBJECTION.                                                                                      
                                                                                                                                
Co-Chair Chenault  requested a  response from  Representative                                                                   
Neuman.    Representative  Neuman  had no  objection  to  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
9:48:04 AM                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to ADOPT Amendment 5:                                                                               
                                                                                                                                
     Page 4, lines 30-31                                                                                                        
     Delete all material                                                                                                        
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative  Hawker explained  that the amendment  removes                                                                   
the  controversial  language  that would  have  repealed  the                                                                   
FRANK Initiative.   He  said he  wanted the costs  associated                                                                   
with  the capital  move  to remain  before  the  public.   He                                                                   
shared the  beliefs in  his district that  a majority  of the                                                                   
people would like to see the legislative  hall relocated, but                                                                   
a minority want to see the capital moved.                                                                                       
                                                                                                                                
Co-Chair  Meyer thought  Amendment 3  took care  of the  cost                                                                   
concerns of Alaskans.                                                                                                           
                                                                                                                                
9:49:59 AM                                                                                                                    
                                                                                                                                
Representative  Neuman   reported  that  the   Administration                                                                   
planned to  make all costs  known to  the people.   He agreed                                                                   
that  Amendment  3 does  require  a  cost  to the  people  be                                                                   
included.   He termed this a policy call.                                                                                       
                                                                                                                                
Vice-Chair   Stoltze  commented   that  he  had   conflicting                                                                   
feelings about the issue                                                                                                        
                                                                                                                                
9:53:13 AM                                                                                                                    
                                                                                                                                
Representative Hawker spoke to  Amendment 3, "the legislative                                                                   
council shall consider  the costs" to the people.   He voiced                                                                   
concern about  legislative council's propensity  to overstate                                                                   
the  costs.    He  said he  is  comfortable  with  the  FRANK                                                                   
Initiative's information regarding costs.                                                                                       
                                                                                                                                
Vice-Chair  Stoltze clarified  he  was talking  about LAA  in                                                                   
Juneau.                                                                                                                         
                                                                                                                                
9:56:04 AM                                                                                                                    
                                                                                                                                
Representative Gara thought that  Amendment 3 did not involve                                                                   
the public  enough.  He asked  if one of the costs  of moving                                                                   
the legislative  hall was  for relocating current  employees.                                                                   
Representative  Neuman noted the  costs listed in  the packet                                                                   
to  move   those  who  are   currently  working   in  Juneau.                                                                   
Representative  Gara said  his intention  is to minimize  the                                                                   
damage to  people if the  bill passes.   The people  have the                                                                   
right  to know the  costs and  Amendment 3  does not  provide                                                                   
that information.   He  noted that the  public has  never yet                                                                   
approved of the  cost of moving the capital.   Representative                                                                   
Neuman took issue with the wording "minimize the damage".                                                                       
                                                                                                                                
Co-Chair Meyer noted that the  fiscal notes would contain the                                                                   
costs of the bill.                                                                                                              
                                                                                                                                
Representative  Gara disagreed  with Representative  Neuman's                                                                   
explanation  of allowing the  public to come  up with  a plan                                                                   
for more access.  The people in  his district would not agree                                                                   
with this legislation.                                                                                                          
                                                                                                                                
9:58:32 AM                                                                                                                    
                                                                                                                                
Representative  Thomas commented  on the  damage done  to the                                                                   
value  of  homes  in  Juneau   by  this  move.    He  thought                                                                   
legislators  and staff with  homes in  Juneau should  be held                                                                   
harmless on property values.                                                                                                    
                                                                                                                                
Vice-Chair Stoltze MAINTAINED his OBJECTION.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule,  Kelly,  Thomas,   Crawford,  Harris,  Gara,                                                                   
Hawker, Chenault                                                                                                                
                                                                                                                                
OPPOSED: Stoltze, Meyer                                                                                                         
                                                                                                                                
Amendment 5 was ADOPTED (8-2).                                                                                                  
                                                                                                                                
Representative Crawford WITHDREW Amendment 6.                                                                                   
                                                                                                                                
10:01:02 AM                                                                                                                   
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 7:                                                                                 
                                                                                                                                
     Page 3, line 20                                                                                                            
     Insert new subsection                                                                                                      
     "(d)  The  qualifying  bid  that  makes  the  Hall  most                                                                   
     accessible  to  the  largest  number  of  citizens,  and                                                                   
     proximate   in  location  to   the  largest   number  of                                                                   
     citizens, shall  be accepted, to  the extent any  bid is                                                                   
     accepted  and  a decision  is  made  to proceed  with  a                                                                   
     legislative hall move.  If  a bid is approved under this                                                                   
     subsection, and provides  for a cost that is approved by                                                                   
     the voters,  construction of  the Hall may  proceed even                                                                   
     if the cost to the state exceeds $1 per year."                                                                             
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative Gara explained  that he has concerns about the                                                                   
bill, but  if it is going to  go ahead, an argument  in favor                                                                   
of moving  the legislative hall  is to make it  accessible to                                                                   
the largest number  of people.  He thought  the public should                                                                   
be able to approve the project and vote on the cost.                                                                            
                                                                                                                                
Co-Chair Meyer argued that even  if the legislative hall were                                                                   
to  be  in  Wasilla  it would  be  more  accessible  than  it                                                                   
currently is.                                                                                                                   
                                                                                                                                
Representative  Hawker commented  on the  consequence of  the                                                                   
amendment, which would provide  single criteria to evaluate a                                                                   
proposal - access to the largest number of citizens.                                                                            
                                                                                                                                
Representative Hawker MAINTAINED his OBJECTION.                                                                                 
                                                                                                                                
10:04:30 AM                                                                                                                   
                                                                                                                                
Representative Neuman said he does not support Amendment 7.                                                                     
                                                                                                                                
Representative Gara  said he thought the purpose  of the bill                                                                   
was to make  the capital more accessible.   He questioned the                                                                   
real intention of the bill.                                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara                                                                                                                  
OPPOSED: Kelly,  Stoltze, Thomas,  Crawford, Harris,  Hawker,                                                                   
Joule, Meyer, Chenault                                                                                                          
                                                                                                                                
The MOTION FAILED (1-9).                                                                                                        
                                                                                                                                
Co-Chair  Chenault commented  on  page 2,  line  6, where  it                                                                   
addresses the size of the offices.                                                                                              
                                                                                                                                
Representative Kelly  said it was hard to price  out the non-                                                                   
economic  reasons for  moving the  capital.   He pointed  out                                                                   
that the  bill does  not address reasons  for not  locating a                                                                   
capital  in the  largest  population  area of  a  state.   He                                                                   
questioned  the definition  of a capital  if the  legislative                                                                   
hall is moved  to another area.   He agreed with the  idea of                                                                   
listing constituency  travel costs.   He noted that  there is                                                                   
no competition left in the process  for a community to attain                                                                   
a legislative hall.                                                                                                             
                                                                                                                                
Vice-Chair Stoltze said this is  all about reality and people                                                                   
vote with their feet.                                                                                                           
                                                                                                                                
10:10:47 AM                                                                                                                   
                                                                                                                                
Representative  Gara asked  Representative Neuman  if he  has                                                                   
researched  the impact  of this  proposal on  the economy  in                                                                   
Juneau.   He  questioned  the  idea of  the  $1 proposal  and                                                                   
wondered if there was a response from any other districts.                                                                      
                                                                                                                                
Representative  Neuman said  the  FRANK Initiative  addresses                                                                   
the impact on Juneau's  economy.  He said he went  to his own                                                                   
community to find out if this proposal was feasible.                                                                            
                                                                                                                                
10:12:41 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer commented on the fiscal notes.                                                                                   
                                                                                                                                
Vice-Chair  Stoltze MOVED  to  REPORT CSHB  54  (FIN) out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Representative Thomas OBJECTED.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Stoltz, Harris, Hawker, Kelly, Chenault, Meyer                                                                        
OPPOSED: Thomas, Crawford, Gara, Joule                                                                                          
                                                                                                                                
The MOTION  to REPORT  CSHB 54(FIN)  out of Committee  PASSED                                                                   
(6-4).                                                                                                                          
                                                                                                                                
CSHB 54(FIN)  was REPORTED  out of Committee  with a  "do not                                                                   
pass"  recommendation and  with zero  fiscal note  #1 by  the                                                                   
Department  of Administration,  indeterminate fiscal  note #2                                                                   
by  the  Office  of  the Governor,  and  fiscal  note  #3  by                                                                   
Legislative Affairs Agency.                                                                                                     
                                                                                                                                

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