Legislature(2017 - 2018)SENATE FINANCE 532

05/02/2018 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 409 VEHICLES;ID CARD,REGISTRAT.,LICENSE FEES; TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 135 SCHOOL CONSTRUCTION GRANT PROGRAM TELECONFERENCED
Moved SCS CSHB 135(FIN) Out of Committee
Bill Rescheduled from 9:30 a.m.
+= HB 346 DENTIST: TEMPORARY PERMIT TELECONFERENCED
Moved SCS CSHB 346(FIN) Out of Committee
Bill Rescheduled from 9:30 a.m.
CS FOR HOUSE BILL NO. 135(EDC) am                                                                                             
                                                                                                                                
     "An Act relating to school district participation in                                                                       
     the school construction grant program."                                                                                    
                                                                                                                                
2:05:11 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  reviewed the meeting agenda.  He detailed                                                                    
that  HB  135 had  been  heard  on  April  26, 2018  when  a                                                                    
committee   substitute  (CS)   had   been  adopted,   public                                                                    
testimony (all in  support of the bill) had  been heard, and                                                                    
the fiscal  note had been  reviewed. He noted  the committee                                                                    
had received additional information.                                                                                            
                                                                                                                                
Senator  Micciche MOVED  to ADOPT  the committee  substitute                                                                    
for  CSHB   135(EDC)am,  Work  Draft   30-LS0549\R  (Laffen,                                                                    
5/2/18).                                                                                                                        
                                                                                                                                
Vice-Chair Bishop OBJECTED for discussion.                                                                                      
                                                                                                                                
2:05:33 PM                                                                                                                    
                                                                                                                                
JULI  LUCKY, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
changes in the  CS. She noted that there  had been committee                                                                    
concerns   about    an   undefined   time    of   extension.                                                                    
Additionally, there had been concern  that no definition for                                                                    
the term  "good cause"  had been included  in the  bill. She                                                                    
addressed the Explanation of Changes (copy on file):                                                                            
                                                                                                                                
     The Senate Finance CS makes two changes:                                                                                   
                                                                                                                                
      Limits the extension to seven years on page 1, line                                                                    
        12.                                                                                                                     
                                                                                                                                
      Describes what constitutes "good cause" on page 2,                                                                     
        lines 2-10.  New  SCS  version  R  makes  clarifying                                                                    
        changes  to  this  language  as   requested  by  the                                                                    
        Department  of  Education  and   Early  Development.                                                                    
        Specifically:                                                                                                           
                                                                                                                                
          Page 2, line 5 added "as described in a grant                                                                         
          agreement under AS 14.11.017"                                                                                         
                                                                                                                                
          Page 2, line 6 replaced "the state's share" with                                                                      
          "state funding"                                                                                                       
                                                                                                                                
Ms. Lucky  announced that there  was no  sectional analysis.                                                                    
The bill had two technical  changes and the only substantive                                                                    
section was  Section 2, which she  had previously explained.                                                                    
She noted that the department  had communicated there was no                                                                    
change to the fiscal note with the adoption of the CS.                                                                          
                                                                                                                                
Senator  Stevens was  happy to  see a  definition for  "good                                                                    
cause" and an end date included in the bill.                                                                                    
                                                                                                                                
Vice-Chair  Bishop WITHDREW  his OBJECTION.  There being  NO                                                                    
further OBJECTION, Work Draft 30-LS0549\R was ADOPTED.                                                                          
                                                                                                                                
2:07:59 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:08:54 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
REPRESENTATIVE  JOHN   LINCOLN,  SPONSOR,   appreciated  the                                                                    
changes made  in the CS. He  spoke to the importance  of the                                                                    
legislation for  his district.  He detailed  the legislation                                                                    
would extend  the funding  opportunity for  a school  in the                                                                    
district  that  had run  into  some  complications with  the                                                                    
construction of  a road  and other  funding sources.  He was                                                                    
confident the passage of the  bill would allow the community                                                                    
of  Kivalina  to construct  a  new  school. He  thanked  the                                                                    
committee for its time and attention to the legislation.                                                                        
                                                                                                                                
Senator Olson  asked if Representative Lincoln  was in favor                                                                    
of the changes made in the CS.                                                                                                  
                                                                                                                                
Representative Lincoln replied in the affirmative.                                                                              
                                                                                                                                
Senator Olson asked how the  Northwest Arctic Borough School                                                                    
District viewed the changes.                                                                                                    
                                                                                                                                
Representative  Lincoln answered  that  the school  district                                                                    
strongly supported  the legislation, which was  critical for                                                                    
the  construction of  the school.  He added  the legislation                                                                    
was a major priority for the entire district.                                                                                   
                                                                                                                                
Senator  Stevens   referenced  the  third  cause:   (3)  the                                                                    
extension will  not result in  an increase of  state funding                                                                    
of  the  project  cost  [page  2,  lines  6  and  7  of  the                                                                    
legislation]. He asked how a  cost increase would impact the                                                                    
borough.                                                                                                                        
                                                                                                                                
Representative  Lincoln  was  uncertain  what  the  approach                                                                    
would  be  to  meet  increased costs.  The  entire  regional                                                                    
leadership  for the  Northwest Arctic  Borough and  the NANA                                                                    
region were  behind the project.  The borough was  bonding a                                                                    
local  match  exceeding  $12  million.  He  elaborated  that                                                                    
everyone was  committed in their  support for  Kivalina, the                                                                    
school,  and  its  families. He  communicated  that  he  and                                                                    
others would find a way to address any cost increase.                                                                           
                                                                                                                                
2:11:33 PM                                                                                                                    
                                                                                                                                
Senator  Stevens  remarked  that   the  longer  it  took  to                                                                    
complete  a  project the  higher  the  cost. He  appreciated                                                                    
Representative Lincoln's comments.                                                                                              
                                                                                                                                
Senator  Olson  remarked that  he  had  spoken with  borough                                                                    
representatives  and they  were  very  comfortable with  the                                                                    
money that had been sought  and appropriated. There had been                                                                    
no problem with that part of the extension.                                                                                     
                                                                                                                                
Vice-Chair  Bishop noted  that the  Department of  Education                                                                    
and Early  Development (DEED)  was available  for questions.                                                                    
He added  that the state was  coming out of a  recession. He                                                                    
observed that construction projects  were down, based on bid                                                                    
costs over  the past three  years. He elaborated  that there                                                                    
was substantial competition [for projects] at present.                                                                          
                                                                                                                                
Senator  Stevens noted  that previously  there  had been  no                                                                    
parameters on  what the commissioner  could determine  to be                                                                    
good cause. He expounded that  the bill would implement four                                                                    
criteria for the  commissioner to find good  cause. He asked                                                                    
if DEED was comfortable with the parameters.                                                                                    
                                                                                                                                
TIM MEARIG, FACILITIES MANAGER,  DEPARTMENT OF EDUCATION AND                                                                    
EARLY DEVELOPMENT, replied in the affirmative.                                                                                  
                                                                                                                                
Vice-Chair  Bishop  relayed  that   he  had  worked  in  the                                                                    
[Northwest Arctic  Borough] region  in the distant  past. He                                                                    
stated  that Kivalina  sorely  needed a  new  school and  he                                                                    
believed   the  school   would   go  a   long  way   towards                                                                    
complementing the other schools in the Kobuk region.                                                                            
                                                                                                                                
Senator Micciche  MOVED to REPORT  SCS CSHB 135(FIN)  out of                                                                    
committee with  individual recommendations  and accompanying                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
SCS CSHB 135(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation and  with one new fiscal  note from the                                                                    
Department of Education and Early Development.                                                                                  
                                                                                                                                
2:14:28 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:16:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 409 Letter of Opposition.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Sen Finance from Dave Donley.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Sectional Analysis.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Sponsor Statement.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Summary of Changes.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Testimony AML.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Testimony Matanuska-Susitna Borough.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB346 SCS FIN v. J Explanation.pdf SFIN 5/2/2018 1:30:00 PM
HB 346
HB 135 SCS Work Draft Version R.pdf SFIN 5/2/2018 1:30:00 PM
HB 135
HB135 SCS FIN v. R Explanation.pdf SFIN 5/2/2018 1:30:00 PM
HB 135
HB346 SCS FIN work draft version. J.pdf SFIN 5/2/2018 1:30:00 PM
HB 346
HB 409 Public Testimony Doner.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Public Testimony Jones.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Public Testimony Marcum.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Public Testimony Oliver.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Public Testimony Opposition North Slope Borough.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Public Testimony Faerber.pdf SFIN 5/2/2018 1:30:00 PM
HB 409
HB 409 Public Testimomy City of Cordova.pdf SFIN 5/2/2018 1:30:00 PM
HB 409