Legislature(2005 - 2006)CAPITOL 106
04/23/2005 09:30 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB23 | |
| HB48 | |
| HB176 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 48 | TELECONFERENCED | |
| + | HB 176 | TELECONFERENCED | |
| *+ | HB 23 | TELECONFERENCED | |
HB 48-EXPENDITURE FOR CAPITOL CONSTRUCTION 10:11:06 AM VICE CHAIR GATTO announced that the next order of business was HOUSE BILL NO. 48 "An Act relating to a determination of costs attributable to relocating the legislature or the state capital or of constructing a new capitol building in the present capital city, and to a determination of all costs of retaining the existing capitol building and keeping the state capital and legislature in the present capital city; relating to voter approval of certain bondable costs; and providing for an effective date." BEN MULLIGAN, Staff to Representative Bill Stoltze, Alaska State Legislature, testified on behalf of Representative Stoltze, sponsor of HB 48. He said he would address questions that were asked on a previous day. He said if a lease agreement amount exceeds $500,000 annually, or the total will exceed $2.5 million, the legislature would be notified of the lease. Furthermore, the lease must not exceed 40 years. The same time requirement would apply to a lease purchase agreement. Mr. Mulligan noted that AS 36.30.085(e) applies to lease purchase agreements, and read as follows: (e) The department, the Board of Regents, the legislative council, or the supreme court may not enter into a lease-purchase agreement to acquire or improve real property unless the agreement has been approved by the legislature by law. MR. MULLIGAN said the proposed [capitol building] plan on Telephone Hill [in Juneau] would have to be approved for a lease purchase agreement by the legislature. MR. MULLIGAN, regarding a prior day's question on retroactivity, stated: I talked to our legal department and then our legal council, and ... they both agreed that this would be a problem, and we're open to a friendly amendment to get rid of that and just have an effective date. 10:14:20 AM VICE CHAIR GATTO said, "Now that some of the considerations for Telephone Hill have essentially been minimized, I think it's fair to say that the effective date issue would be a minor one." He noted for the record that he is also a sponsor of the bill. He reviewed that the Frank Initiative asks for the costs to be revealed for any capital relocation. However, consideration was made that a relocation made within the same community would not be counted as a relocation to a different community, and he and Representative Stoltze thought it should be. The bill addresses the intent that if the legislature wants to move into a new structure, a bond would have to be approved. He stated that the capitol is the only building that is owned by every Alaskan. 10:16:28 AM REPRESENTATIVE GARDNER observed that if both HB 48 and HB 23 by Representative Rokeberg passes, even if a community donated a building to the legislature, a vote of the people would still be necessary to approve it. VICE CHAIR GATTO responded, "Sure, the bondable cost would have to be approved." MR. MULLIGAN said, "The state money aspect comes into play when we have to approve the rent when it comes through appropriations." He said he could talk to Representative Rokeberg's staff to see how the two bills work together. 10:17:32 AM VICE CHAIR GATTO surmised that even if the legislature were given a building, there would still be costs related to occupying it, which the voters would have to approve. He offered examples. REPRESENTATIVE NORMAN ROKEBERG, Alaska State Legislature, stated that he has concerns about HB 48 because it merely modifies the [Frustrated Responsible Alaskans Needing Knowledge (FRANK)] Initiative. He said he is surprised that the issue of all bondable costs - which he said is "the crux of the FRANK Initiative" - has not been addressed in the proposed legislation. He indicated that reparations to the community of Juneau for economic losses would be defined as a bondable cost. That is why the costs are so high. He cautioned, "If you're going to modify this particular statute, you might want to confront that issue." He said he believes his bill [HB 23] should be amended "to repeal this particular provision if it's to be approved," because the decision rests with the legislature, not a vote of the people. He offered further details. He stated, "My ultimate conclusion is this ... particular statute, and even its modification, would keep the capital in Juneau." 10:21:32 AM VICE CHAIR GATTO stated the intent of the bill is to say, "If you're going to have something about full bondable costs, it has to be whether it's down the street or up to the next zip code." REPRESENTATIVE ROKEBERG said, "I believe bondable cost is a way you maintain the status quo. I mean, that's the key to the whole FRANK Initiative. What you need to do is repeal the FRANK Initiative." He indicated that the face of the FRANK Initiative makes sense, because the citizens of the state should have a voice in how much to pay. However, Representative Rokeberg explained, "The whole price escalated to such a degree, and the debate and the campaign was over this multi-billion dollar price tag; it destroyed everything." REPRESENTATIVE GRUENBERG stated for the record that he has not been a fan of the capital move, because of the economic effect it would have on Juneau and [Southeast Alaska]. He said [the legislature] has "a trust responsibility" to everybody in the state. More importantly, he stated, "Wherever we sit has got to be safe." 10:23:41 AM VICE CHAIR GATTO said that warnings of destroying the economy of Southeast Alaska by moving the capital are exaggerated, because Juneau will still have a federal building, the Coast Guard, mining, the university, and tourism. A proposal to have a "simple hall" in which the legislature meets for four months is not going to destroy Juneau. In fact, he noted that some people would enjoy Juneau more if it were less crowded. He pointed out that where one community may lose, another stands to gain, and it's not the obligation of the legislature to say, "We think some communities ought to gain, and pick it, and some communities ought to lose, and pick it, but rather have the process be open." He noted that Ketchikan lost an enormous amount of money when the pulp mill shut down and the community has rallied and found a way to survive. He noted that Ketchikan opened a shipyard and a plywood mill, for example. 10:26:43 AM REPRESENTATIVE ELKINS said he is from Ketchikan and disagrees with Representative Rokeberg's previous comments regarding that city. He said there would be no shipyard if it wasn't subsidized by the legislature for millions of dollars each year. He said there is no plywood mill, because the one Ketchikan had went bankrupt. He emphasized that [having the capital in Juneau] is "a huge economic engine" for Southeast Alaska. He said many of the things Vice Chair Gatto listed, such as the federal building, wouldn't remain in Juneau if the capital was moved. REPRESENTATIVE GRUENBERG said government works like a clock or a scale; the various parts of it have to be in balance for it to work. The legislature is the people's check on the executive branch. States that have adopted term limits, he opined, have largely upset the balance, weakening the legislature. He emphasized the importance of having the legislature be in the same city as the executive branch, so that the former can hold the latter accountable in person, not just over the phone. He indicated that a legislative hall is a capitol, because that's where the legislature lives. Representative Gruenberg said he is not aware of any other city in the U.S. or, for that matter, anywhere in the world, that has separated its legislature from the rest of state government. VICE CHAIR GATTO ascertained that there was no one in the room or via teleconference wishing to testify. [HB 48 was heard and held.]
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