Legislature(2017 - 2018)HOUSE FINANCE 519

04/14/2017 01:30 PM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

Audio Topic
01:38:25 PM Start
01:40:13 PM Spring Revenue Forecast: Powerpoint
03:37:42 PM HB103
03:55:40 PM HB76
04:27:17 PM HB128
05:02:01 PM SB3
05:27:23 PM HB167
05:57:15 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ Presentation: Spring Revenue Forecast by TELECONFERENCED
Commissioner Randall Hoffbeck, Dept. of Revenue
+ HB 76 MARICULTURE REVOLVING LOAN FUND TELECONFERENCED
Heard & Held
+ HB 128 SHELLFISH ENHANCE. PROJECTS; HATCHERIES TELECONFERENCED
Heard & Held
*+ HB 167 STATE AGENCY PERFORMANCE AUDITS TELECONFERENCED
Heard & Held
+ SB 3 SMALL VESSEL WASTEWATER EXEMPTION; 1% ART TELECONFERENCED
Moved HCS SB 3(TRA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 103 OPTOMETRY & OPTOMETRISTS TELECONFERENCED
Moved CSHB 103(FIN) Out of Committee
SENATE BILL NO. 3                                                                                                             
                                                                                                                                
     "An  Act  relating  to  the  regulation  of  wastewater                                                                    
     discharge  from small  commercial passenger  vessels in                                                                    
     state waters; relating to  art requirements for certain                                                                    
     public  facilities;  and  providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
5:02:01 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster invited  Senator Stedman  and his  staff to                                                                    
the table.                                                                                                                      
                                                                                                                                
SENATOR  BERT STEDMAN,  SPONSOR, thanked  the committee  for                                                                    
the opportunity  to present  his bill.  He read  the sponsor                                                                    
statement:                                                                                                                      
                                                                                                                                
     HCS  SB 3(TRA)  addresses marine  vessels operating  in                                                                    
     Alaska   waters.   This  legislation   reinstates   the                                                                    
     statutory  exemption from  large cruise  ship discharge                                                                    
     requirements for small commercial passenger vessels.                                                                       
                                                                                                                                
     Small  commercial passenger  vessels  and ferries  with                                                                    
     capacity to  accommodate between  50 and  249 overnight                                                                    
     passengers have  been covered by a  statutory exemption                                                                    
     from  the treatment  system and  discharge requirements                                                                    
     for  large cruise  ships in  Alaska. Instead  they have                                                                    
     operated  under Best  Management Practices  (BMP) plans                                                                    
     that are  submitted to and  approved by  DEC. Operation                                                                    
     under  these   plans  has  dramatically   improved  the                                                                    
     quality  of wastewater  discharged  from these  vessels                                                                    
     since the program was established.                                                                                         
                                                                                                                                
     The exemption became law in  2004 and had a sunset date                                                                    
     of  January  1, 2016.  Support  for  the exemption  was                                                                    
     provided by  a 2004  DEC report  on small  cruise ships                                                                    
     and Alaskan  ferries that found  meeting the  terms for                                                                    
     large cruise  ships would  be financially  and feasibly                                                                    
     prohibitive.                                                                                                               
                                                                                                                                
     SB  3 is  necessary to  reinstate the  exemption, which                                                                    
     was automatically repealed on  January 1, 2016. Without                                                                    
     the exemption, small cruise ships  and ferries would be                                                                    
     required  to install  and  operate Advanced  Wastewater                                                                    
     Treatment  Systems,  which  would  be  cost  and  space                                                                    
     prohibitive.  Department of  Transportation and  Public                                                                    
     Facilities estimates  the cost  to retrofit  ferries is                                                                    
     over $5 million.                                                                                                           
                                                                                                                                
Senator Stedman remarked  that the bill was  an extension of                                                                    
policy put  in place  by the legislature.  He noted  that it                                                                    
would be  very difficult  for the smaller  ship if  they did                                                                    
not  get  the  proposed  exemption. He  wanted  to  see  the                                                                    
industry encouraged to grow, as  it was good for commerce in                                                                    
coastal Alaska. He opined that  forcing smaller ships out of                                                                    
the market  place was not good  for anyone. In terms  of the                                                                    
Alaska Marine  Highway system, there was  a budget struggle.                                                                    
The state was  trying to operate a  transportation system in                                                                    
the rail belt  and on the coast. The state  had an old fleet                                                                    
it was attempting  to modernize. There were a  couple of new                                                                    
vessels  under  construction  presently.  He  believed  that                                                                    
trying to  make the older  smaller vessels to  comply rather                                                                    
than obtain extensions would not  work. He was available for                                                                    
questions.                                                                                                                      
                                                                                                                                
Co-Chair Foster reviewed the available testifiers.                                                                              
                                                                                                                                
Representative   Kawasaki   asked   how   many   boats   the                                                                    
legislation would apply to in the state.                                                                                        
                                                                                                                                
5:07:27 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:07:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Stedman responded  that there were about  ten of the                                                                    
smaller ships. There  was a list in the  packets provided to                                                                    
members.                                                                                                                        
                                                                                                                                
Representative Kawasaki  asked about any  sunset provisions.                                                                    
Senator  Stedman  thought  it   was  the  first  sunset.  He                                                                    
recalled that  there had been considerable  debate regarding                                                                    
cruise ship  discharge. In  the process,  a sunset  date was                                                                    
included. He thought it should be dealt with right away.                                                                        
                                                                                                                                
Representative Kawasaki asked if  there was a current sunset                                                                    
in the bill. Senator Stedman responded in the negative.                                                                         
                                                                                                                                
Representative   Kawasaki  asked   if  a   new  boat   would                                                                    
automatically comply  with requirements and,  therefore, not                                                                    
need   an  exemption.   Senator   Stedman   deferred  to   a                                                                    
representative  from  the  Division  of  the  Alaska  Marine                                                                    
Highway System respond.                                                                                                         
                                                                                                                                
5:10:28 PM                                                                                                                    
                                                                                                                                
MICHAEL  A.  NEUSSL,   DEPUTY  COMMISSIONER,  DEPARTMENT  OF                                                                    
TRANSPORTATION AND PUBLIC FACILITIES,  responded that it did                                                                    
not apply  to the  two Alaska class  ferries for  the marine                                                                    
highway. The vessels  had a Type 3  marine sanitation devise                                                                    
that held  all discharge waters onboard  discharging ashore.                                                                    
The  legislation would  apply to  the proposed  MV Tustumena                                                                    
replacement  vessel, which  met  the standards  for a  small                                                                    
passenger  vessel.   The  vessel  was  designed   under  the                                                                    
provisions of the best management  practices statute. It had                                                                    
a MSD type 2 system  to put an advanced wastewater treatment                                                                    
system onboard  to comply with  large cruise  ship discharge                                                                    
standards. It would not fit  in the marine sanitation devise                                                                    
room.  It was  three  times  the size  and  three times  the                                                                    
weight  of the  system. The  ship would  need a  redesign to                                                                    
accommodate it, which would be costly.                                                                                          
                                                                                                                                
Representative Kawasaki  asked about the  original exemption                                                                    
in  2004 and  why there  was a  sunset in  2016. Mr.  Neussl                                                                    
suggested  the  question  be   directed  to  Michelle  Hale,                                                                    
Division of Water,  Department of Environmental Conservation                                                                    
(DEC).                                                                                                                          
                                                                                                                                
Vice-Chair Gara suggested having  the Senator's staff review                                                                    
the changes in the bill.  Senator Stedman indicated he would                                                                    
be returning  to the Senate  Resources Committee.  His staff                                                                    
could answer member's questions.                                                                                                
                                                                                                                                
Vice-Chair Gara  asked about the differences  of the current                                                                    
version  of  the  bill  and  the version  of  the  bill  the                                                                    
committee previously heard.                                                                                                     
                                                                                                                                
DAVE SCOTT, STAFF, SENATOR BERT  STEDMAN, responded that the                                                                    
changes  were  minor. House  Bill  151  had a  retroactivity                                                                    
effective  date, whereas,  the  Senate version  did not.  He                                                                    
reported that  when he  spoke with  DEC, the  department did                                                                    
not have a problem with  the bill not having a retroactivity                                                                    
clause.                                                                                                                         
                                                                                                                                
Representative  Pruitt mentioned  that  the bill  previously                                                                    
had  a different  title and  contained an  additional piece.                                                                    
He inquired as to why the  piece was removed. He noted there                                                                    
had been a  discussion about 1 percent of monies  for art on                                                                    
the ferries and  another discussion relating to  the cost of                                                                    
the new ferries.                                                                                                                
                                                                                                                                
Mr. Scott spoke  to the 1 percent for art.  He indicated the                                                                    
amount was  removed by  the House  Transportation Committee.                                                                    
There were three sections removed  that all dealt with the 1                                                                    
percent for art.  He reported that the MV Taku  was for sale                                                                    
and the  FVF Chenega was  tied up.  The art in  both vessels                                                                    
would  be  removed  and  placed  on  the  new  Alaska  class                                                                    
ferries.                                                                                                                        
                                                                                                                                
Co-Chair Foster OPENED Public Testimony.                                                                                        
                                                                                                                                
5:15:18 PM                                                                                                                    
                                                                                                                                
JAMEY   CAGLE,    ALASKAN   DREAM   CRUISES,    SITKA   (via                                                                    
teleconference), spoke  in support  of the bill  as amended.                                                                    
He thought it  was an integral part to the  operation of his                                                                    
vessels.                                                                                                                        
                                                                                                                                
5:15:58 PM                                                                                                                    
                                                                                                                                
PETER    BUTZ,   ALASKAN    DREAM   CRUISES,    SITKA   (via                                                                    
teleconference),  spoke  in support  of  the  bill with  the                                                                    
amendment being  passed. The  legislation was  necessary for                                                                    
the  continuation of  his company's  small fleet  to operate                                                                    
out of Sitka.                                                                                                                   
                                                                                                                                
5:16:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED Public Testimony.                                                                                        
                                                                                                                                
Representative  Wilson asked  if the  bill was  going to  be                                                                    
moved.                                                                                                                          
                                                                                                                                
Co-Chair  Foster  was  open  to   moving  the  bill  if  the                                                                    
committee members did not have amendments.                                                                                      
                                                                                                                                
Vice-Chair Gara agreed with Representative Wilson.                                                                              
                                                                                                                                
Representative  Wilson  relayed  that there  were  two  zero                                                                    
impact  fiscal notes  [OMB Component  Number  2062 from  the                                                                    
Department of  Environmental Conservation and  OMB Component                                                                    
Number  2604  from  the  Department  of  Transportation  and                                                                    
Public Facilities].                                                                                                             
                                                                                                                                
5:18:10 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:18:36 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster invited Mr. Neussl  to review the new fiscal                                                                    
note for OMB Component Number 2604.                                                                                             
                                                                                                                                
Mr.  Neussel  explained that  the  new  fiscal note  was  an                                                                    
update  of the  previous  fiscal note.  The previous  fiscal                                                                    
note covered  the bill when  it had  both the 1  percent for                                                                    
art  and  the wastewater  discharge  provisions  in it.  The                                                                    
department striped out  the 1 percent for  art language from                                                                    
the  fiscal note.  The note  remained a  zero fiscal  impact                                                                    
note  and   contained  the   same  language   regarding  the                                                                    
wastewater discharge bill.                                                                                                      
                                                                                                                                
Representative Pruitt asked if  there was enough artwork for                                                                    
the  vessels.   Mr.  Neussel  responded  that   the  artwork                                                                    
salvaged  from the  MV Taku  and  the FVF  Chenega would  be                                                                    
sufficient for the new Alaska class ferry.                                                                                      
                                                                                                                                
Representative Pruitt relayed that  the original fiscal note                                                                    
stated that  there was approximately  $2.37 million  for the                                                                    
future  MV Tustumena  replacement  vessel. He  asked if  the                                                                    
money  was  still  necessary.   Mr.  Neussl  responded  that                                                                    
regarding the  1 percent for  art portion, the  MV Tustumena                                                                    
replacement  vehicle  was   not  currently  under  contract,                                                                    
therefore,  did not  apply. He  detailed that  $2.37 million                                                                    
was the  estimated cost  of 1  percent for  art. He  did not                                                                    
think the  department could spend  that much on art  for the                                                                    
vessel. It was  a large amount for artwork on  a vessel. The                                                                    
department planned  to salvage the  art off of  the existing                                                                    
MV Tustumena  to reuse on  its replacement  and supplemented                                                                    
as necessary with a small increase.                                                                                             
                                                                                                                                
Representative Pruitt  thought that  using the art  from the                                                                    
MV  Tustumena was  the right  thing  to do.  He wondered  if                                                                    
there  was a  statutory  requirement  concerning the  amount                                                                    
spent  on art.  Mr.  Neussel relayed  that  there were  some                                                                    
concerns  about  the  1  percent for  art  account  being  a                                                                    
dedicated  fund  and  unconstitutional.  Therefore,  it  was                                                                    
removed from the bill.                                                                                                          
                                                                                                                                
Representative  Pruitt asked  if  there  was an  expectation                                                                    
that  the  state  spent  an additional  amount  on  art.  He                                                                    
wondered if  additional language was necessary.  Mr. Neussel                                                                    
did not believe  additional language to deal  with the issue                                                                    
of the 1  percent for art. The new vessel  would have reused                                                                    
art. Any additional  monies for art would  come from funding                                                                    
from within the construction project.  He did not believe it                                                                    
would be 1 percent.                                                                                                             
                                                                                                                                
Representative Wilson MOVED  to report HCSSB 3  (TRA) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
HCSSB  3 (TRA)  was REPORTED  out  of committee  with a  "do                                                                    
pass" recommendation and with a  new zero fiscal note by the                                                                    
Department of Transportation and  Public Facilities and with                                                                    
a previously published zero fiscal note: FN1 (DEC).                                                                             
                                                                                                                                
5:23:05 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:27:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB0076 CS Sectional Analysis 03.15.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Sponsor Statement 01.26.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - Alaska Fisheries Development Foundation Letter 03.01.2017.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - Alaska Shellfish Growers Letter 03.03.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - APICDA 03.06.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - City and Borough of Wrangell Letter 03.01.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - Ketchikan Gateway Borough Letter 03.02.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - Mariculture Task Force Letter 03.03.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - OceansAlaska Letter 03.06.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - Shelly Wright Letter 03.02.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document - Southeast Conference Resolution 03.02.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document-Alaska Municipal League 01.26.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document-City and Borough of Wrangell 01.26.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB0076 Supporting Document-Ketchikan Gateway Borough 01.26.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB76 and HB128 Supporting Document-APICDA 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 76
HB 128
HB128 Amend Document-M.Adkison 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Opposing Document-N. Hilstrand 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Sectional Analysis 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Sponsor Statement 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-AFDF 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-AK Mariculture Task Force 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-Alutiiq Pride Shellfish Hatchery 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-ASGA 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-B Yuknis 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-City & Borough of Wrangell 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-JEDC 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-Ketchikan Gateway Borough 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-SE conference 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128 Supporting Document-SWAMC 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HB128-Supporting Document-SARDFA 4.4.17.pdf HFIN 4/14/2017 1:30:00 PM
HB 128
HCS SB3 - Explanation of Changes.PDF HFIN 4/14/2017 1:30:00 PM
SB 3
HCS SB3 - Sectional Analysis.PDF HFIN 4/14/2017 1:30:00 PM
SB 3
HCS SB3 - Sponsor Statement.PDF HFIN 4/14/2017 1:30:00 PM
SB 3
SB 3 - Letter of Support - AK Chamber.pdf HFIN 4/14/2017 1:30:00 PM
SB 3
SB 3 - new cruise line in Alaska.PDF HFIN 4/14/2017 1:30:00 PM
SB 3
SB3 - FINAL Small Ship 2016 Sampling Report 1-3-17.pdf HFIN 4/14/2017 1:30:00 PM
SB 3
SB3 - Environmental Compliance Info Sheet.pdf HFIN 4/14/2017 1:30:00 PM
SB 3
SB3 - vessel vs. muni discharge.pdf HFIN 4/14/2017 1:30:00 PM
SB 3
SB3 - Letter of Support - Alaskan Dream Cruises.pdf HFIN 4/14/2017 1:30:00 PM
SB 3
SB3 - Small Vessel Discharge Bill FAQs 1.3.2017.pdf HFIN 4/14/2017 1:30:00 PM
SB 3
HB167 Additional Document - Statutory Recommendations to Rules.pdf HFIN 4/14/2017 1:30:00 PM
HB 167
HB167 Suggested Improvements to the Performance Review Program.pdf HFIN 4/14/2017 1:30:00 PM
HB 167
HB167 Sponsor Statement.pdf HFIN 4/14/2017 1:30:00 PM
HB 167
Spring Revenue Forecast DOR 2017 RSB - 4.14.17.pdf HFIN 4/14/2017 1:30:00 PM
HFIN DOR Spring Revenue Forecast
DOR Spring 2017 Revenue Forecast Presentation - FINAL.PDF HFIN 4/14/2017 1:30:00 PM
HFIN DOR Spring Revenue Forecast PP
HB 103 - Amendments.pdf HFIN 4/14/2017 1:30:00 PM
HB 103
HB103_Support_041417.pdf HFIN 4/14/2017 1:30:00 PM
HB 103
SB3 Support UFA to Hse Finance 030117.pdf HFIN 4/14/2017 1:30:00 PM
SB 3