Legislature(1999 - 2000)
04/04/2000 02:00 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 4, 2000
2:00 P.M.
TAPE HFC 00 - 99, Side 1.
TAPE HFC 00 - 99, Side 2.
TAPE HFC 00 - 100, Side 1.
TAPE HFC 00 - 100, Side 2.
TAPE HFC 00 - 101, Side 1.
CALL TO ORDER
Co-Chair Therriault called the House Finance Committee
meeting to order at 2:00 P.M.
PRESENT
Co-Chair Therriault Representative Foster
Co-Chair Mulder Representative Grussendorf
Representative Austerman Representative Moses
Representative Bunde Representative Phillips
Representative J. Davies Representative Williams
Representative G. Davis
ALSO PRESENT
John Barnett, Board of Storage Tanks, Juneau; Edward Crane,
President, Alaska Commercial Fishing and Agriculture Bank
(CFAB), Anchorage; Lisa Kirsch, Assistant Attorney General,
Department of Law; Lorraine Derr, Alaska State Hospital and
Nursing Association, Juneau; Wendy Redman, Vice President,
Statewide Programs, University of Alaska-Fairbanks; Lorali
Meier, Staff, Representative Beverly Masek; Jon Sherwood,
Division of Medical Assistance, Department of Health and
Social Services; Bob Labbe, Director, Division of Medical
Assistance, Department of Health and Social Services.
TESTIFIED VIA TELECONFERENCE
Susan Springer, Seldovia; Robert Gilfilian, Anchorage;
Leonard Anderson, State of Alaska Third Party Recovery in
Medicaid Matters, Anchorage; John Cook, Anchorage; Gary
Weber, Secretary Treasurer, Alaska Underground Tank Owners
(AUTO), Mat-Su; Charles Parker, Mat-Su.
SUMMARY
HB 265 An Act extending the termination date of the
Alaska regional economic assistance program; and
providing for an effective date.
HB 265 was reported out of Committee with a "do
pass" recommendation and with a fiscal note by
Department of Community & Economic Development
dated 3/1/00.
HB 325 An Act relating to priorities, claims, and liens
for payment for certain medical services provided
to medical assistance recipients; and providing
for an effective date.
CS HB 325 (JUD) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by Department of Health and Social Services dated
2/2/00.
HB 339 An Act authorizing the Alaska Commercial Fishing
and Agriculture Bank to make loans relating to
tourism and development or exploitation of natural
resources.
CS HB 339 (FIN) was reported out of Committee with
a "do pass" recommendation and with a zero fiscal
note by the Department of Community & Economic
Development dated 4/3/00.
HB 349 An Act relating to powers of the Board of Game,
means of access for hunting, trapping, and
fishing, the definition of `means' and `methods,'
and hunting safety education and game conservation
education programs; relating to the purposes of
game refuges, fish and game critical habitat
areas, and public use areas.
HB 349 was POSTPONED for hearing to a latter date.
HB 432 An Act extending the termination date of the Board
of Storage Tank Assistance; expanding the
authority of the board to issue recommendations
concerning cleanup decisions; and providing for an
effective date.
CS HB 432 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Environmental Conservation
dated 3/2/00.
SB 281 An Act relating to missions and measures to be
applied to certain expenditures by the executive
branch of state government and the University of
Alaska from the state operating budget for the
fiscal year ending June 30, 2001; and providing
for an effective date.
HCS CS SB 281 (FIN) was reported out of Committee
with a "do pass" recommendation and with a zero
fiscal note by the Office of the Governor dated
3/17/00.
HOUSE BILL NO. 339
An Act authorizing the Alaska Commercial Fishing and
Agriculture Bank to make loans relating to tourism and
development or exploitation of natural resources.
Co-Chair Mulder explained that the legislation would expand
the lending authority of the Commercial Fishing and
Agriculture Bank (CFAB) and would enable it to make loans to
Alaskan small business enterprises involved in natural
resource development and tourism. Presently, CFAB makes
loans to Alaska residents engaged only in commercial
agriculture or fishing. The bank seeks expanded authority
to provide financing opportunities to small Alaskan business
entrepreneurs who generally have trouble obtaining
commercial loans because of their relative small size and
lack of financial experience.
Co-Chair Mulder noted that currently, CFAB's loan portfolio
is very narrow and susceptible to ups and downs of the
market. The bill would allow CFAB to make loans to natural
resource development and also tourism.
Co-Chair Therriault MOVED to adopt the committee substitute,
1-LS1285\I, Utermohle, 4/1/00, as the version of the
legislation before the Committee. [Copy on File]. There
being NO OBJECTION, it was adopted.
ED CRANE, PRESIDENT, COMMERCIAL FISHING AND AGRICULTURAL
BANK (CFAB), ANCHORAGE, stated that when the bill was
originally drafted, "general" language was used to provide
as much flexibility as possible. Some of that language has
been found to be unacceptable. Consequently, loan limits
were added.
Mr. Crane noted that the House Finance Committee substitute
changes some of the original language. He outlined changes
made to the proposed committee substitute that would make
the bill more specific.
Mr. Crane explained that the Alaska State Legislature
created CFAB in AS 44.81 in 1980. The statute governs
CFAB's operation and provided for its accountability to the
Legislature and Administration. Because CFAB is
incorporated under that statute, it requires legislative
approval for any changes in operational authority.
Twenty years ago, limited access to commercial financing by
resident Alaska commercial seafood harvesters, processors
and farmers, stimulated the need for CFAB as a private
cooperative. The State of Alaska responded by providing
initial capital through the purchase of $32 million dollars
of special preferred stock in 1980. CFAB began making
monthly payments in 1991 to the State, repurchasing
increments of the stock. In September of 1998, the stock
repurchase agreement was completed as specified in statute
and today CFAB is owned solely by its past and present
borrowing members.
Mr. Crane continued, in 1986, the Alaska Supreme Court
identified CFAB as a private entity. AS 44.81 states that
it is not subject to the Alaska Cooperative Corporation Code
or the Alaska Banking Code. It pays federal and state
corporate income tax, state auditing fees and is subject to
legislative audits. In short, CFAB is now a private lender
operating within the free enterprise system with limited
ties to the State of Alaska.
CFAB's auditors, from both the public and private sector,
give the bank favorable reviews but consistently note the
concentration in agricultural and fishing industry loans
resulting in an unusual level of risk exposure and
vulnerability to the ups and downs of the industries.
Representative Grussendorf asked if the only new ability
granted in the proposed legislation was that to loan to
tourism. Mr. Crane replied that it would be to either
tourism and/or operators in the natural resources.
Representative Grussendorf asked if there would be a limit
on how each company could borrow. Mr. Crane pointed out
that there are no statutory limits on the size of a loan
that can be made for fish and agriculture purposes.
Representative J. Davies observed that this would be a
lending operation chartered by the State. He asked the
requirements to become a member of the bank to qualify for
borrowing. Mr. Crane explained that CFAB is operated as a
cooperative with the customers as owners. "Member" is
defined as one of the stockholders of the board. Any Alaska
resident who is engaged in commercial fishing or agriculture
can become a member by purchasing one share of stock.
Representative J. Davies interjected that CFAB is a
cooperative lending organization.
Co-Chair Therriault reminded member's from where the entity
originally came from. The limited entry system had just
started and it was important that the State guarantees that
Alaskans had access to capital so that they could get the
permits and keep them in Alaska's hands. Co-Chair
Therriault suggested that the original concerns have been
diminished at this time. There is no shortage of loan
programs in State government. He did not see the compelling
reason to implement the proposed legislation.
Mr. Crane commented that it has not been a problem in recent
years. He agreed that the same circumstances do not appear
to exist in relationship to tourism. The bill is a
defensive effort by CFAB. The limited entry system does not
have the same concerns as it did 25 years ago. Today, it
has greater concerns. Many of the individuals in rural
Alaska who were initial recipients of the loan are now
reaching an age where they want to retire. Many of them now
want to sell their permit. The needs have changed. He
believed that there is a need to continue the support for
Alaska resident's ability to buy limited entry permits. Co-
Chair Therriault agreed that it is important to keep them in
Alaskan's hands. He voiced concern with expansion of the
operation. Mr. Crane clarified that CFAB must build
diversification.
Co-Chair Mulder spoke to the State's compelling interest.
He commented that CFAB has taken on a new life of economic
expansion and opportunity. He noted that there is a lot of
frustration among the Alaskan people who are attempting to
get the smaller loans. The loans that CFAB is proposing are
low-level loans which are not in the best interest of most
banks.
Co-Chair Mulder pointed out currently, only CFAB can loan on
the limited entry permits. He pointed out that there is a
compelling reason, as the State interests are at stake. Mr.
Crane added that CFAB is acting as an agent for the State.
There is no way to limit that privilege to one class of
private lender.
Co-Chair Mulder pointed out that limited entry and CFAB won
the case with the Internal Revenue Service (IRS) to retain
control of the permits. To open that up to outside lenders
would jeopardize the direction which the State intended to
go.
Vice Chair Bunde agreed that this is a unique Alaskan
program. He asked if there were similar programs like this
available through other states. Mr. Crane replied that the
only one he was aware of was through a lending institution
in Canada.
(TAPE CHANGE, HFC 00 - 99, Side 2).
Mr. Crane stated that the proposed bill would provide that
CFAB continue to be a viable entity.
Vice Chair Bunde suggested if it would be more accurate to
change CFAB from a "bank" to a "revolving loan fund". Mr.
Crane replied that would not be a move that CFAB would make
hastily. He noted that CFAB has not yet fully considered
all the legal documentation such a transition would require.
Vice Chair Bunde commented if supporting the legislation
would be "questionable" given the Legislature's commitment
to encouraging privatization.
Representative Foster inquired if there was a mechanism
included in the proposal to cover concerns for bed and
breakfast associations. He asked if the board membership
would change. Mr. Crane thought that the legislation would
address that concern. Currently, the board consists of
seven people; two members appointed by the Governor and the
other five elected from the membership.
In response to Representative Williams, Mr. Crane reiterated
the original purpose of CFAB to insure that Alaska resident
fishermen had sufficient access to capital to maintain
participation in Alaska's fisheries. Representative
Williams inquired if the banking community supported CFAB at
this time. Mr. Crane replied those entities are "waving
their arms" with concern about the legislation. However, at
the same time, there are joint ventures happening with the
State.
Representative Austerman pointed out that there are many
commercial fishermen now considering the charter boat
tourism industry.
SUSAN SPRINGER, (TESTIFIED VIA TELECONFERENCE), HERRING BAY
MERCANTILE, TOURIST BUSINESS, SELDOVIA, spoke in support of
the legislation and urged Committee support to extend the
lending authority of CFAB to include resource development
and tourism.
She suggested that the legislation was the most important
thing that Alaska could do to help small businesses so to
have greater access to low interest business loans. The
existing loan process needs to be streamlined. She noted
that the conventional banking institutions in Alaska are not
serving the small business people.
Ms. Springer addressed her impressions of CFAB:
? CFAB is well respected for its support of small
business development through the Fisheries
Business Assistance Program;
? Not many of the state-funded small business
assistance programs work as effectively as CFAB;
and
? Access to start-up and operating capital is one of
the primary challenges facing small Alaskan
entrepreneurs trying to establish themselves in
business.
Ms. Springer pointed out that CFAB serves a "niche" to a
specific clientele. It will not pose a threat to the
banking institutions. She noted that CFAB shareholders are
all Alaskan's and will continue to be Alaskan and that they
have Alaska's interest at stake. She emphasized that
passage of HB 339 would give entrepreneurs a "shot in the
arm".
Representative J. Davies MOVED an amendment to Page 4, Line
28, deleting "tourism" and inserting "tourists".
Representative Moses commented that if the bill passes, it
would allow CFAB the authority to move more into the rural
areas to provide loan financing for tourism facilities. He
noted at present, CFAB could not finance a loan for a
charter boat. He stated that 99% of the financing
undertaken in the commercial fishing business is done in the
Seattle area. Representative Moses added that the majority
of the fishing industry is done in Seattle because Seattle
is where most of the head business are located such as
processor parent companies. He interjected that definitely
will not change with the Wells Fargo Bank take-over.
Representative Foster reiterated his concern about the
composition of the Board's makeup. Mr. Crane explained that
the Board would also be expanded. Currently, the Board
functions with an oversight role. The Board takes no part
in the loan decisions; it only approves basic policy and
standards. CFAB will acquire additional expertise and that
the Board is 100% behind the expansion.
Co-Chair Mulder MOVED to report CS HB 399 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note.
Representative Williams OBJECTED stating that the bill would
compete with the private sector. Following further
comments, Representative Williams WITHDREW his OBJECTION.
There being NO further OBJECTION, it was so ordered.
CS HB 399 (FIN) was reported out of Committee with a "do
pass" and with a new zero fiscal note by Department of
Community & Economic Development dated 4/3/00.
HOUSE BILL NO. 432
An Act extending the termination date of the Board of
Storage Tank Assistance; expanding the authority of the
board to issue recommendations concerning cleanup
decisions; and providing for an effective date.
LORALI MEIER, STAFF, REPRESENTATIVE BEVERLY MASEK, commented
that the Board of Storage Tank Assistance was created in
1990 in response to a clean up program initiated by
increased federal regulations and aggressive Environmental
Protection Agency (EPA) enforcement actions. Many Alaskan
underground storage tank owners were forced out of business
because they could not afford the high cost of clean up of
contamination from their leaking tanks.
Ms. Meier stated that the Storage Tank Assistance Program
was established to protect Alaska's drinking water supplies
and to help Alaska's regulated underground storage tank
owners and operators meet EPA's tough new environmental laws
and regulations pertaining to underground petroleum storage
tanks. The goals of the program were simple:
? Cleanup existing leaks,
? Prevent future leaks, and
? Help Alaska's tank owners and operators through
educational, technical, and financial assistance.
Although originally established as a financial assistance
grant program, the program was restructured in 1999 as
predominately a loan program.
Ms. Meier noted that HB 432 extends the termination date of
the Board of Storage Tank Assistance to June 30, 2003. It is
necessary to extend the termination date because many sites
have just initiated cleanup or are in the midst of a long
term cleanup process which are not expected to be completed
for a few years. Furthermore, as the new loan program is
expected to be implemented this upcoming construction
season, it is imperative that the Board remain available to
mediate and resolve disputes between the Department of
Environmental Conservation (DEC) and Alaska's underground
storage tank owners.
Ms. Meier stated that HB 432 also expands the authority of
the Board. Historically, there has been a delay by DEC in
sending final cleanup decisions to businesses. Clean-up
decisions, provide evidence that the contaminated site has
been cleaned up. Many sites are pending sale or are waiting
on bank financing. The transactions cannot proceed until
final cleanup decision letters are distributed by DEC. By
expanding the Board's authority to issue recommendations
concerning cleanup decisions, it is expected that many new
cleanup decisions will be issued that in the past have been
delayed or simply overlooked. The expansion of authority
will not be binding authority; it will simply provide a
forum for the Board, businesses, and DEC to discuss final
decision letters.
Representative Phillips asked for more detail regarding the
additional responsibility of the Board and the expansion of
that authority. Ms. Meier replied that it would not be a
binding authority; they would provide a form and
recommendations concerning the clean up decisions. She
noted that last session, SB 128 dealt with the Board of
Storage Tank program and transferred it from a grant program
to a loan program. It did not extend the Board.
JOHN BARNETT, PRIVATE CONTRACTOR PROVIDING SERVICES TO THE
BOARD OF STORAGE TANKS, JUNEAU, responded to queries from
Representative Phillips. He noted that there has been
discussion over the past few years regarding "no further
action" letters and delays associated with that. These are
essentially "clean-up" decisions with the owner clarifying
that their property is free of contamination which frees up
their property for resale.
Mr. Barnett pointed out that the problem which has occurred
in the last few years, is that the backlog of sites that
need to have the clean-up decisions, have created tremendous
delays. Many times, it is an over site by the Department or
some type of communication break down. A lot of the disputes
and appeals are resolved at the table. Given the proposed
legislation, the Board could make recommendations either to
the Department or to the tank owner to undertake a certain
amount of activities. Such action could resolve 90% of the
problems.
Co-Chair Therriault asked for comments on the amendments.
Mr. Barnett noted that the Board was in full support of the
amendment submitted by Co-Chair Mulder, 1-LS1539\A.1,
Lauterbach, 4/4/00. [Copy on File]. He pointed out that
the list had been closed since 1994 and that the amendment
would only affect entities on that list.
Co-Chair Therriault asked about impact of Amendment #2,
which would change the date. [Copy on File]. Mr. Barnett
replied that amendment would be acceptable.
Representative Phillips asked why the date extension had not
been added last year. Ms. Meier replied that there had not
been support on the Senate side. She added, this year,
there appears to be more support from the Senate if the date
was "2002".
Representative J. Davies asked if the list included non-
profits. Mr. Barnett stated that there are two on the
current list. They are currently not eligible for a grant.
GARY WEBER, (TESTIFIED VIA TELECONFERENCE), SECRETARY
TREASURER, ALASKA UNDERGROUND TANK OWNERS (AUTO), WASILLA,
noted that the under ground tank owners totally support the
proposed legislation.
Co-Chair Mulder MOVED to adopt Amendment #1. There being NO
OBJECTION, it was adopted.
(TAPE CHANGE, HFC 00 - 100, Side 1)
Co-Chair Mulder MOVED to adopt Amendment #2 which would
shorten the extension date. Representative J. Davies
OBJECTED. He stated that if the amendment was adopted, it
would need to be placed in the title. Co-Chair Mulder
WITHDREW Amendment #2.
Co-Chair Therriault asked if the fiscal note proposed
continuation of the existing funding. Mr. Barnett replied
that the fiscal note covers travel costs for the Board
members and a contract to be placed out for competitive bid
this spring. He pointed out that the Board was privatized
last year and that costs associated with the Board has
dramatically dropped. The revenue source would be
registration receipts received from the tank owners.
Representative Foster MOVED to report CS HB 432 (FIN) out of
Committee with individual recommendations and with the
accompanying note. There being NO OBJECTION, it was so
ordered.
CS HB 432 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by Department of
Environmental Conservation dated 3/21/00.
HOUSE BILL NO. 325
An Act relating to priorities, claims, and liens for
payment for certain medical services provided to
medical assistance recipients; and providing for an
effective date.
JON SHERWOOD, DIVISION OF MEDICAL ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, testified in support of the
legislation. He noted that HB 325 would:
? Provide the Department of Health and Social Services
with unambiguous authority to recover medical costs
incurred by the Division of Medical Assistance when a
legal settlement making a monetary award to cover
injuries has been made; and
? Allow providers to bill the Division for services up to
twelve months from the date of service. The current
period is six months.
Mr. Sherwood stated that the Department would like to
provide an exemption for good cause. If there was good cause
for missing a deadline, then the services that have been
provided should be paid for by the Department.
Co-Chair Therriault noted that the members were provided
with a proposed committee substitute, 1-GH2058\H,
Lauterbach, 4/4/00. [Copy on File]. He noted that the
proposed committee substitute would separate the two issues.
The draft contains the provisions of the bill going after
the third party payments. He noted that he was attempting
to determine a way to cover the assisted living aspect of
the bill.
In response to a question by Representative Phillips, Mr.
Sherwood explained that the legislation would apply to
Medicaid and chronic and acute medical assistance
recipients.
Co-Chair Therriault inquired if a third party claim could go
beyond the six months. Mr. Sherwood responded that at
present time, you could. If you have private insurance, the
provider bills insurance and then bills the Division for the
balance of the claims. The proposed legislation does not
change that provision.
Co-Chair Therriault noted that the committee substitute
drops off the blanket extension to twelve months from
payments of providers. He referenced the fiscal note,
pointing out that the committee substitute would capture
additional revenue.
In response to concerns voiced by Representative J. Davies,
Mr. Sherwood noted that in the portion being deleted, the
Division had proposed to extend the filing deadline for
providers. If there was no insurance to provide service,
the third party providers would then have six months. Under
the proposed change, the period would be extended to twelve
months; the committee substitute would keep it at six
months. Mr. Sherwood added that the committee substitute
would also eliminate exemptions for cause. He observed that
twelve months is the national standard practice for the
industry.
Co-Chair Therriault questioned the fiscal impact of allowing
exemptions for "good cause". Mr. Sherwood did not know the
amount.
Representative J. Davies questioned the intent of the
committee substitute. He recommended that providers should
have the opportunity to collect.
Co-Chair Mulder pointed out that most claims would be made
by doctors and hospitals and that it would be "reasonable"
to expect billing within six months. He added, that is
standard practice in Alaska.
BOB LABBE, DIRECTOR, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, provided
information on the legislation. He stated that there is not
a lot of business that comes this way, but emphasized that
there are some small providers with late filings. Mr. Labbe
noted that the federal government allows twelve months to
file a claim. Alaska has a six-month filing time. He
stressed that the cost of longer filings is minimal and it
would help the "provider community".
Co-Chair Mulder asked if passage of the legislation would
provide an "incentive" for companies to be late in their
submissions. Mr. Labbe responded that 90% percent is
received within the first 30 days. He stated that it is the
anomalies that come in later. He admitted that the
Department would have changed it in regulation if it had
been possible.
Co-Chair Mulder suggested that it would take longer to close
out the State's accounting books. Mr. Labbe explained that
the Medicaid process runs on a cash basis and he did not
foresee a problem in the Department's bookkeeping.
Representative J. Davies pointed out that the incentive to
file timely exists in order to receive payment.
LEONARD ANDERSON, (TESTIFIED VIA TELECONFERENCE),
REPRESENATIVE FOR THE STATE OF ALASKA THIRD PARTY RECOVERY
FOR MEDICAID MATTERS, ANCHORAGE, stated that the current
bill contains a "notice" problem and recognition in the
State's right to recover Medicaid payments from a liable
third party. Currently, when cases are made and payments
are paid, the State finds out about third party recipients
through the third party. The State Medicaid portion is
included in any recovery. Mr. Anderson found that the State
is receiving notice of a potentially liable third party well
into the case, possibly during settlement or after. The
bill would allow absolute notice of a third party earlier in
the process.
Mr. Anderson continued, the second problem is that current
statute is based on segregation principles. The new
legislation gives the State the opportunity to get a better
bargaining position and would allow them to have an
opportunity to affect what is liable.
LISA KIRSCH, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW,
offered to answer questions of the Committee members.
LORRAINE DERR, ALASKA STATE HOSPITAL AND NURSING HOME
ASSOCIATION (ASHANHA), JUNEAU, testified in support of the
legislation as originally written.
Co-Chair Therriault advised that he would not offer the
committee substitute. He noted that the Legislature would
continue to work with the Department on the expenditure side
of the fiscal note through the Conference Committee.
Co-Chair Mulder MOVED to report CS HB 325 (JUD) out of
Committee with individual recommendations and with the
accompanying fiscal note.
CS HB 325 (JUD) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by Department of
Health and Social Services dated 2/2/00.
(TAPE CHANGE, HFC 00 - 100, Side 2).
CS FOR SENATE BILL NO. 281(FIN) am
An Act relating to missions and measures to be applied
to certain expenditures by the executive branch of
state government and the University of Alaska from the
state operating budget for the fiscal year ending June
30, 2001; and providing for an effective date.
Representative Phillips MOVED to adopt Amendment #2, 1-
LS1392\GA.1, Cramer, 4/4/00. [Copy on File]. Co-Chair
Therriault OBJECTED.
Representative Phillips stated that the amendment would
address all concerns of the House and of the Senate to
become briefer. Co-Chair Therriault noted that he objected
for the purpose of an amendment to the amendment. The
change offers a compromise of new language as suggested by
the University in regards to the mission.
Representative Phillips spoke against the change. She noted
that training has nothing to do with vocational education.
She added that she had cleared the language of the amendment
through the University and that they supported it.
Representative Phillips stated that if vocational education
were not included, it would be lost at the University level.
Representative Phillips stated that she was not willing to
let the University do away with vocational education.
Co-Chair Therriault WITHDREW the amendment to the amendment.
He stated that he would propose a technical change to Line
2, adding "vocational". Co-Chair Therriault MOVED the new
amendment to the amendment. [Copy on File].
Co-Chair Mulder noted that in conversations with President
Hamilton, he was a "big" supporter of the vocational
training.
Vice Chair Bunde noted that he would be more comfortable
including it in the mission statement.
Representative J. Davies pointed out there are other
concerns and that it would not limit it to post-secondary
education. He stated that there are two types of research
not being recognized, both basic and applied. It is
important to acknowledge both of these types of research. In
context of the University, the Representative Phillips'
amendment is important because it shows that research driven
needs are crucial to the program. He did not understand the
argument being proposed regarding the mission statement.
Representative Phillips added that Co-Chair Therriault's
amendment does not take into consideration the impact that
the University has on the State economy as a whole. She
believed that the language of the amendment was more
inclusive.
A roll call vote was taken on the motion to adopt the
amendment to Amendment #2.
IN FAVOR: Bunde, G. Davis, Therriault, Mulder
OPPOSED: Austerman, J. Davies, Foster, Grussendorf,
Moses, Phillips, Williams
The MOTION FAILED (4-7).
Co-Chair Mulder commented that there remains a couple areas
in Amendment #2 which are "flowery".
Representative J. Davies MOVED a "friendly" change to
Amendment #2 on Page 1, Line 4, deleting "ensure education
opportunities to meet the" and inserting "respond to the
educational". Additionally, a change to Page 1, Line 6,
deleting "the highest" and replacing it with "high".
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY OF ALASKA,
FAIRBANKS, noted support for the change. There being NO
OBJECTION, the change was adopted.
There being NO OBJECTION to the amended Amendment #2, it was
adopted.
Representative Austerman explained Amendment #3. [Copy on
File]. He commented that there are no guidelines for the
Alaska Regional Development Organization (ARDOR) program.
He believed that it would be a good idea to address through
the legislation.
Co-Chair Therriault referenced sub-Section (3). He
recommended a change, which would clarify an increase in
non-State funds being leveraged by the ARDOR's.
Representative Austerman noted that the sentence would read:
"(3) the increase of non-state funds leveraged by ARDOR
grants".
Representative J. Davies recommended changing "increase" to
"amount". Committee members agreed.
Representative Austerman MOVED Amendment #3 with the
language change. There being NO OBJECTION, it was adopted.
Vice Chair Bunde MOVED to report HCS CS SB 281 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note.
HCS CS SB 281 (FIN) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Office of the Governor dated 3/17/00.
HOUSE BILL NO. 265
An Act extending the termination date of the Alaska
regional economic assistance program; and providing for
an effective date.
CHARLES PARKER, (TESTIFIED VIA TELECONFERENCE), MATSU, spoke
in support of the ARDOR program and offered to answer
questions of the Committee.
Representative Austerman noted that last year, the
Legislature passed HB 40 which contained a number of changes
identified in Section #1.
Co-Chair Therriault noted that there were two fiscal notes
in member's packets. The House Finance Committee fiscal
note proposes phasing out State funding over a three-year
period. The Department of Community & Economic Development
fiscal note proposes action to happen within a five-year
period.
(TAPE CHANGE HFC 00 - 101, Side 1).
Co-Chair Therriault commented that adoption of the fiscal
note would send a message regarding the fund during the out
years.
Representative Austerman advised that there has been several
discussions regarding the need for the State of Alaska to
become a player in the economic development of the State.
He noted that the "small" amount placed into the ARDOR's
budget is something that the State should be doing.
Representative Austerman stated that he would not support
the new note.
Representative J. Davies echoed concerns registered by
Representative Austerman. He addressed the need of
diversifying the economy within the State. He agreed that
the State should determine if these dollars spent are being
effective and recommended that the mechanism that the bill
be determined by the measures.
Co-Chair Therriault stated that for the next year, it is
important to begin the weaning process from State monies.
Co-Chair Therriault noted that he would not oppose the
original fiscal note submitted by the Department.
Representative Austerman MOVED to report HB 265 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 265 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by Department of
Community & Economic Development dated 3/1/00.
ADJOURNMENT
The meeting adjourned at 4:30 P.M.
H.F.C. 17 4/04/00
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