Legislature(2005 - 2006)

05/02/2005 10:36 AM Senate FIN


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     CS FOR HOUSE BILL NO. 249(RLS)                                                                                             
     "An Act relating to enhanced 911 systems and enhanced 911                                                                  
     surcharges imposed by a municipality, public municipal                                                                     
     corporation, or village."                                                                                                  
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  MIKE  HAWKER, the  bill's  sponsor,  noted that  the                                                            
Committee  previously  heard  the  Senate  companion  bill  to  this                                                            
legislation.  The House  version of  the bill  before the  Committee                                                            
included    some     technical    changes    such     as    changing                                                            
"telecommunication"  to "telephone"  and "E 911" to "Enhanced  911".                                                            
In  addition,  the  maximum  tax  amount  allowable   without  voter                                                            
approval was increased from $1.50 to $2.00.                                                                                     
                                                                                                                                
10:37:57 AM                                                                                                                   
                                                                                                                                
TIM ROGERS,  Alaska Municipal League,  testified via teleconference                                                             
from  an offnet  location  in  support of  this  bill.  He would  be                                                            
available to answer questions.                                                                                                  
                                                                                                                                
10:38:28 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  remarked  that this  matter  has  had considerable                                                             
attention,  and  that  the  majority  of  the Committee's   language                                                            
recommendations   pertinent  to  the  Senate  companion   bill  were                                                            
incorporated  into  this  House  bill.  The three  changes  in  this                                                            
version  of the  bill,  as communicated  by  Representative  Hawker,                                                            
would be "a great improvement".                                                                                                 
                                                                                                                                
10:38:54 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken stated that  this legislation  is a "big issue"  to                                                            
the Fairbanks  North  Star Borough  and the City  of Fairbanks.  The                                                            
$2.00 maximum  tax limit would not  sufficiently cover the  costs of                                                            
the Enhanced 911  system in Fairbanks. Therefore,  the City would be                                                            
required to make internal adjustments.                                                                                          
                                                                                                                                
Co-Chair Wilken  stated that Fairbanks  is primarily concerned  with                                                            
the fact  that local voter  approval would  be required to  increase                                                            
the Enhanced  911  service assessment  beyond the  $2.00 limit  that                                                            
would be specified in Statute.  The concern is that the public might                                                            
not  support the  need. A  forthcoming  amendment  would change  the                                                            
manner  through which  the  local Enhanced  911 surcharge  could  be                                                            
managed by  allowing the  local assembly rather  than the public  to                                                            
decide the issue.                                                                                                               
                                                                                                                                
Co-Chair  Wilken  informed the  Committee  that local  assembly  and                                                            
mayoral  elections   are  held  every  three  years  in   Fairbanks.                                                            
Campaigns  for those  seats could  be intensive  and expensive.  The                                                            
concern  is  that, even  though  the  Enhanced  911 issue  would  be                                                            
considered  a worthy  initiative, the  issue would  have to  compete                                                            
with the assembly  and mayoral elections  and "would be lost  in the                                                            
noise".  It  would  be secondary   to the  focus  on  the  candidate                                                            
elections.                                                                                                                      
                                                                                                                                
Amendment #1:  This amendment deletes "surcharge amount  is approved                                                            
by the voters  of the enhanced 911  service area" in Sec.  2(a) page                                                            
two lines  14 and  15 and replaces  it with  "municipality adopts  a                                                            
separate ordinance authorizing the increase".                                                                                   
                                                                                                                                
Co-Chair Wilken moved for adoption of Amendment #1.                                                                             
                                                                                                                                
Co-Chair Wilken  argued that the current language  in the bill would                                                            
shortchange  the Enhanced 911 service.  While the effort  is to make                                                            
the  service  more  responsive  and enhance  public  safety  in  the                                                            
community, the  opposite would be true. He opined  that, were it put                                                            
to a local vote, he, having  used the service, would be one of a few                                                            
who  would   vote   for  an   increased  Enhanced   911   surcharge.                                                            
Nonetheless, while only  one in ten people have used the service, it                                                            
would be available for all ten.                                                                                                 
                                                                                                                                
Co-Chair Green  objected to the amendment. A tax limitation  in this                                                            
regard has "long been in  Statute", and the proposal to increase the                                                            
current 50-cent  tax limit to $2.00  would quadruple the  revenue to                                                            
most large communities.  It is interesting how the  blame pertaining                                                            
to this  issue  transitions from  one entity  to  another: when  the                                                            
local  phone   utility,  which  has   no  control  over   the  issue                                                            
incorporates  the Enhanced  911  surcharge into  their subscribers'                                                             
utility bills, the subscribers  blame the utility; the utility would                                                            
deflect that blame and  explain that the charge was due to a city or                                                            
borough decision;  and the city would then deflect  the criticism to                                                            
the Legislature by intoning  that the State allowed them to increase                                                            
the charge. While  she could accept the $2.00 tax  limit, any charge                                                            
imposed over that amount  in a local community should be approved by                                                            
that community's voters.                                                                                                        
                                                                                                                                
10:44:34 AM                                                                                                                   
                                                                                                                                
Senator Olson requested the sponsor's position of the amendment.                                                                
                                                                                                                                
10:44:41 AM                                                                                                                   
                                                                                                                                
Representative  Hawker  replied that  he had  previously  considered                                                            
this issue. His determination  was that arguments for both positions                                                            
are "equally  sound". He understood  the argument of allowing  those                                                            
most closely affected by  the issue to vote in its regard as well as                                                            
the  concern that  voters  might not  support increasing  fees  upon                                                            
themselves for a public issue.                                                                                                  
                                                                                                                                
10:45:36 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  commented  on  the  neutrality  of  Representative                                                             
Hawker's position.                                                                                                              
                                                                                                                                
10:45:48 AM                                                                                                                   
                                                                                                                                
Senator Dyson,  noting that he had  served for six years  on a local                                                            
municipal   assembly,   spoke   in   support   of   the   amendment.                                                            
Traditionally,  in a western  representative  democracy, people  are                                                            
elected to positions  and charged with studying an  issue and making                                                            
a decision  in its regard. He agreed  with Co-Chair Wilken  that the                                                            
elected  body  could  best  make  the  decision  regarding  a  local                                                            
Enhanced  911  surcharge.  His  Senate  district  seat predecessor,                                                             
Senator  Sam Cotton,  was heard  to say  in response  to whether  he                                                            
would vote  in support of the will  of his constituents that,  "most                                                            
of the issues are very  complicated and take a lot of study … at the                                                            
end of  the day,  I hope that  I vote  the way that  you would  have                                                            
wanted to  vote if  you had had  access to the  information  and the                                                            
debate of the  history of the issue like I have a  chance to study."                                                            
The hope  is that  the electorate  would  vote for  mature and  wise                                                            
people  who would make  the right  decision after  they had  had the                                                            
time to study the issue and hear the debate.                                                                                    
                                                                                                                                
10:47:32 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green viewed Senator  Dyson's position  as being  "kind of                                                            
interesting",  as he has been "a proponent  of sound budgeting"  and                                                            
watchful of elected  officials' efforts to increase  spending. "This                                                            
flies  directly  in  the face  of  the  tax  cap that  the  City  of                                                            
Anchorage"  and other communities  have. This would be "a  mechanism                                                            
by which they  can get around the  tax limit, and that bothers  me."                                                            
Therefore, "we shouldn't  be providing them an avenue in which to go                                                            
around that tax cap."                                                                                                           
                                                                                                                                
Co-Chair Green  observed that one of the problems  with the Enhanced                                                            
911 system is  that, were a poll taken, it would be  determined that                                                            
few people  "know what that system  consists of." Communicating  the                                                            
financial  mechanics  of  the system  to  people  would be  a  "huge                                                            
education"  effort, as attested by  the discussions that  transpired                                                            
during   Committee  hearings.   The   language   provided  in   this                                                            
legislation  would clearly define  how this money could be  utilized                                                            
and would distinguish between "the needs verses the wants".                                                                     
                                                                                                                                
Co-Chair Green maintained her objection to Amendment #1.                                                                        
                                                                                                                                
10:49:08 AM                                                                                                                   
                                                                                                                                
Senator  Olson  voiced concern  that  the  amendment could  make  it                                                            
easier  for a  municipality  to  increase  the surcharge  rate  were                                                            
funding short.                                                                                                                  
                                                                                                                                
10:49:27 AM                                                                                                                   
                                                                                                                                
Co-Chair Green agreed.                                                                                                          
                                                                                                                                
10:49:30 AM                                                                                                                   
                                                                                                                                
Senator  Dyson  appreciated  Co-Chair  Green's  comments  about  the                                                            
"apparent hypocrisy"  of his earlier  position on the amendment.  He                                                            
has oftentimes  encountered issues in conflict with  his principles.                                                            
He  knew  of  many  circumstances  in  which   the  Municipality  of                                                            
Anchorage Assembly  has attempted to maneuver "around  their tax cap                                                            
rather than  facing it  honestly." He appreciated  being  "reminded"                                                            
that this  action might  enable such action.  Providing the  ability                                                            
"to end  run their tax cap"  would not be  his desire. However,  the                                                            
significance  of the  issue and  the principle  of a representative                                                             
government override that concern in this case.                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Dyson and Co-Chair Wilken                                                                                     
                                                                                                                                
OPPOSED: Senator  Olson, Senator Hoffman,  Senator Stedman,  and Co-                                                            
Chair Green                                                                                                                     
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (2-4-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
10:51:06 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  offered a motion to report the bill  from Committee                                                            
with individual recommendations and accompanying fiscal note.                                                                   
                                                                                                                                
There  being  no  objection,  CS  HB  249(RLS)   was  REPORTED  from                                                            
Committee  with zero fiscal  note #1  dated April  8, 2005 from  the                                                            
Department of Public Safety.                                                                                                    
                                                                                                                                
10:51:16 AM                                                                                                                   
                                                                                                                                
AT EASE 10:51:59 AM / 10:53:35 AM                                                                                           
                                                                                                                                
10:53:36 AM                                                                                                                   
                                                                                                                                

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