Legislature(2011 - 2012)SENATE FINANCE 532
04/04/2012 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB203 | |
| SB192 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 192 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 203 | TELECONFERENCED | |
SENATE BILL NO. 203
"An Act establishing an energy assistance program in
the Department of Revenue to issue an energy voucher
to Alaska permanent fund dividend recipients; and
relating to the analysis and recommendation of an
energy assistance program by the governor."
2:06:40 PM
Co-Chair Hoffman MOVED to ADOPT proposed committee
substitute for SB 203, Work Draft 27-LS1363\E, (Nauman,
4/3/12). Co-Chair Stedman OBJECTED for purpose of
discussion.
2:07:22 PM
Senator Thomas explained that SB 203 would provide Alaskans
with relief from the effects of high 2011 energy costs
through distribution of energy vouchers in the fall. The
voucher program would recognize and address the disparate
cost of energy depending on the type of fuel and the
community in which it was used. The bill would direct the
governor to evaluate options and make a recommendation for
the best energy relief program to be instituted in FY 14.
Senator Thomas noted that the current work draft, version
E, incorporated suggestions made by the Department of Law
and the Alaska Housing Finance Corporation (AHFC) for the
purpose of addressing legal issues.
2:08:18 PM
CATHERINE REARDON, STAFF, SENATOR JOE THOMAS, explained the
changes to the legislation. With one exception, the changes
included in the CS had been suggested by the Department of
Law or AHFC in order to address legal concerns. The three
substantive changes were:
1. Allow people who did not apply for the 2012
Permanent Fund Dividend (PFD), but would have
qualified for that PFD, to apply separately for
the energy voucher. Many veterans do not apply
for the PFD to avoid reductions in their
veterans' benefits. This amendment would allow
them as well as others to receive the voucher. A
voucher denial appeal process was also provided;
2. Expand the hold-harmless section to cover
reductions in federal supplemental security
income (SSI) benefits and food assistance through
WIC (Women, Infants and Children) and the federal
Commodity Supplemental Food program. The change
would result in a fiscal note from the Department
of Health and Social Services; and
3. Add 31 million British thermal units of hot water
or steam district heat to the voucher. District
heat is piped to houses in downtown Fairbanks in
a manner similar to natural gas distribution in
Anchorage. Thirty-one mmbtu represented
approximately 2 months of district heat used by
the average residential consumer, which was the
focus of the voucher.
2:09:50 PM
Ms. Reardon observed that there were four minor technical
changes:
1. Changing "state" to "corporation" on page 2,
lines 23 & 29 to clarify that AHFC is responsible
for issuing voucher payments to distributors and
for receiving any unused voucher credit when
utility accounts are closed;
2. Specifically authorizing the Department of
Revenue to share the physical addresses, as well
as the mailing addresses, of PFD applicants with
AHFC for the purpose of administering the energy
voucher program, on page 7, lines 22-23;
3. Inserting "physical" in the eight locations where
the bill refers to the voucher recipient's
"primary residence in the state." The purpose of
this change is to clarify that the energy
provided by the voucher must be used in the place
the recipient physically occupies; and
4. Replacing "incompetent" with "incapacitated" in
subsections (j) and (k), which relate to legal
guardians signing vouchers for people who cannot
act on their own behalf.
Ms. Reardon concluded that "incapacitated" would be the
more appropriate term. A definition of incapacitated had
been incorporated into the bill.
2:11:14 PM
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 27-LS1363\E was ADOPTED.
Senator Thomas explained that the bill would allow the
opportunity for an energy voucher that could be turned into
a verified registered dealer that dealt in natural gas or
fuel oil on a regular basis. The Alaska Permanent Fund
Corporation (APFC) would provide data to AHFC to keep track
of vouchers, which would be sent to the head of every
household throughout the state. The voucher would provide
compensation for heating costs that individuals could
submit to their supplier. Most of the natural gas supplied
in Anchorage was through Enstar. The Alaska Housing Finance
Corporation would administer the multiple distributors that
supplied fuel oil throughout other areas of the state.
Distributors would be able to create accounts, which would
simplify the process. The maximum amount would be 250
gallons of fuel oil. Those that did not use fuel oil could
seek a $250 payment in lieu of fuel.
2:13:39 PM
Co-Chair Stedman reviewed the three new fiscal impact notes
attached to the bill: Department of Revenue for $15 million
in CIP receipts for FY 13 and 10 full-time positions to
administer the program (The fiscal note assumed a $465
million appropriation in the FY 13 capital budget to pay
for vouchers); Department of Revenue for $219,000 from the
Alaska Permanent Fund Dividend Division and two new
temporary positions for increases in appeals and auditing
expenses; and Department of Administration for $113,600 in
interagency receipts for the anticipated increase in
administrative hearings.
2:14:38 PM
Co-Chair Hoffman MOVED to report CSSB 203(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSB 203(FIN) was REPORTED out of Committee with two new
fiscal impact notes from the Department of Revenue and one
new fiscal impact note from the Department of
Administration.
2:15:14 PM
AT EASE
4:18:56 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 192 April 4 2nd Session Alaska Senate Finance.pdf |
SFIN 4/4/2012 1:30:00 PM |
SB 192 |