Legislature(1995 - 1996)

02/21/1996 01:37 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         SB 207 REVENUE BONDS: WATER & WASTE PROJECTS                        
                                                                               
 Number 130                                                                    
                                                                               
  SENATOR TORGERSON  brought SB 207 before the committee as the next           
 order of business.  He directed attention to four proposed                    
 amendments for the committee's consideration.                                 
                                                                               
  SENATOR RANDY PHILLIPS  moved adoption of the following Amendment            
 No. 1:                                                                        
                                                                               
 Amendment No. 1                                                             
                                                                               
 Page 6, line 6:  After "in" insert "the current fiscal year and"              
                                                                               
 Page 8, line 12:  After "letters" insert "and lines"                          
                                                                               
 Number 160                                                                    
                                                                               
  MARIE SANSONE , Assistant Attorney General, Civil Division,                  
 Department of Law, said she worked closely with the Department of             
 Environmental Conservation and the Department of Revenue in                   
 preparing SB 207.  The amendment was proposed by the Department of            
 Revenue to add the term "the current fiscal year" which was                   
 inadvertently omitted when the statute was being drafted.                     
                                                                               
 SENATOR TORGERSON asked if there was objection to the adoption of             
 Amendment No. 1, and hearing none, he stated it was adopted.                  
                                                                               
 Number 175                                                                    
                                                                               
  SENATOR RANDY PHILLIPS  moved adoption of the following Amendment            
 No. 2:                                                                        
                                                                               
 Amendment No. 2                                                             
                                                                               
 Page 2, line 7:  After "authorized" insert ",subject to (b) of this           
                 section"                                                      
                                                                               
 Page 2, line 13:  Insert a new subsection to read:  "(b)   The                
 state bond committee may not issue more than $15,000,000 in revenue           
 bonds during a fiscal year, excluding refunding bonds.  The total             
 amount of revenue bonds outstanding at any one time may not exceed            
 $150,000,000, including principal and interest owed on the bonds."            
                                                                               
  SENATOR TORGERSON  explained the amendment puts a cap on the revenue         
 bonds by setting out that there can be no more than $15,000,000 in            
 revenue bonds sold in one year, and it cannot exceed $150,000,000             
 for the total program.                                                        
                                                                               
  MARIE SANSONE  stated the Administration's support for the language.         
                                                                               
  SENATOR ZHAROFF  said he has no problem with setting a cap, but his          
 concern is having some kind of safety mechanism for the small                 
 community that may have the ability to take advantage of the                  
 program, but could be excluded because they are bumping up against            
 the cap.   SENATOR TORGERSON  said an attempt was made to draft some          
 language to address his concern, but there were problems with its             
 interpretation.   MARIE SANSONE  pointed out the intent language in           
 Section 1 of the bill does recognize that the financing of needed             
 water quality improvements is the purpose of this legislation.                
 Also, there is another provision which requires the state bond                
 committee to consider that in all its decisions.                              
                                                                               
  SENATOR TORGERSON  asked if there was objection to the adoption of           
 Amendment No. 2.  Hearing none, he stated Amendment No. 2 was                 
 adopted.                                                                      
                                                                               
 Number 235                                                                    
                                                                               
  SENATOR KELLY  moved adoption of the following Amendment No. 3:              
                                                                               
 Amendment No. 3                                                             
                                                                               
 Page 7, line 19 - 21:  Delete all material.                                   
                                                                               
 Page 8, lines 27 - 28:  Delete "The provisions of this section               
 shall be liberally construed in order to carry out the purposes for           
 which they were enacted."                                                    
  MARIE SANSONE  said the term "liberal construction," when talking            
 about statutes, is a very standard phrase.  It is a term that is              
 recognized by the State Supreme Court.  Because this is a remedial            
 statute that is designed to achieve the public purpose of promoting           
 public health and welfare, the statute will have a liberal                    
 construction if that ever became an issue.  She said it does serve            
 a purpose to leave this provision in the statute, but she suggested           
 if the committee wants to change it, the term "broadly construed"             
 could be used in its place.                                                   
                                                                               
  SENATOR KELLY  voiced his concern that if, in fact, it does goes to          
 court he doesn't want them to "liberally construe" that language,             
 and he doesn't want to give the court that option.                            
                                                                               
  SENATOR TORGERSON  asked if there was objection to the adoption of           
 Amendment No. 3, and hearing none, he stated it was adopted.                  
                                                                               
 Number 305                                                                    
                                                                               
 SENATOR HOFFMAN moved adoption of the following Amendment No. 4:              
                                                                               
 Amendment No. 4                                                             
                                                                               
 Page 2, line 5:  Delete "state agencies" and insert "other                    
      qualified entities"                                                      
                                                                               
 Page 9, line 18:  Delete "state agencies" and insert "other                   
       qualified entities"                                                     
                                                                               
 Page 9, line 20:  Delete "state agencies" and insert "other                   
       qualified entity"                                                       
                                                                               
 Page 9, line 22:  Delete "state agencies" and insert "other                   
       qualified entity"                                                       
                                                                               
 Page 10, line 11:   Delete "state agency" and insert "other                
     qualified entity                                                         
                                                                               
 Page 11, line 10:  Following "1" insert "other qualified entity"           
 means an intermunicipal or interstate agency as those terms are               
 used in 33 US>C. 1383, and may include an authority, corporation,             
 instrumentality, enterprise, or other entity formed through an                
 agreement between a municipality and one or more other governmental           
 entities under AS 29.35.010(13) or under art. X. sec. 13,                     
 Constitution of the state of Alaska, or between a municipality and            
 a regional housing authority under AS 18.55.996(b);                          
                                                                               
   (2)"                                                                      
                                                                               
 Page 11, lines 22 - 25:  Delete ";                                            
                                                                               
   (2)  "state agency" means a department, authority, public                  
 corporation, instrumentality, or other administrative unit of the             
 executive branch of state government"                                        
                                                                               
                                                                               
  SENATOR TORGERSON , explaining the amendment, said the intent is to          
 take out the references and definition of "state agency" and to               
 insert "other qualified entity" and its definition in its place.              
 A "state agency" is not an eligible entity because state agencies             
 cannot dedicate funds to the repayment of their debt obligations.             
 Senator Hoffman also requested municipalities and regional housing            
 authorities be added so they could enter into joint agreements.               
                                                                               
  MARIE SANSONE  stated the department supports the amendment.                 
                                                                               
 Number 310                                                                    
                                                                               
 SENATOR TORGERSON asked if there was objection to the adoption of             
 Amendment No. 4, and hearing none, he stated it was adopted.  He              
 also stated the four adopted amendments would be incorporated into            
 a committee substitute.                                                       
                                                                               
 Number 315                                                                    
                                                                               
  SENATOR RANDY PHILLIPS  moved that CSSB 207(CRA) and the                     
 accompanying fiscal notes be passed out of committee with                     
 individual recommendations.  Hearing no objection, it was so                  
 ordered.                                                                      

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