Legislature(2003 - 2004)
04/19/2004 02:15 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 19, 2004
2:15 P.M.
TAPE HFC 04 - 88, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 2:15 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Eric Croft
Representative Hugh Fate
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
MEMBERS ABSENT
None
ALSO PRESENT
Jim Pound, Staff to Representative Fate; Jim Shine, Staff to
Representative Anderson; Jim Derringer, Staff to
Representative Fate; Nico Bus, Director, Administrative
Services, Department Of Natural Resources
PRESENT VIA TELECONFERENCE
Dick Mylius, Deputy Director, Division of Mining Land and
Water, Department of Natural Resources, Anchorage
SUMMARY
HB 319 An Act relating to the disposal of state land
by lottery; and relating to the disposal,
including sale or lease, of remote
recreational cabin sites.
CSHB 319(FIN) was REPORTED out of Committee
with individual recommendations and with two
new fiscal impact notes.
HB 467 An Act establishing an Alaska Commemorative
Coin Commission to develop the design
concepts and to make recommendations
regarding the final design of the Alaska
quarter under the 50 States Commemorative
Coin Program Act; and providing for an
effective date.
HB 467 was heard and HELD in Committee for
further consideration.
HB 476 An Act establishing the Alaska Statehood
Celebration Commission; and providing for an
effective date.
CSHB 476(STA) was REPORTED out of Committee
with individual recommendations and with two
zero fiscal impact notes.
HOUSE BILL NO. 319
An Act relating to the disposal of state land by
lottery; and relating to the disposal, including sale
or lease, of remote recreational cabin sites.
Representative Fate MOVED to ADOPT Amendment #2 which
replaces the previous Amendment #2. Co-Chair Williams
OBJECTED for purposes of discussion.
Amendment #2, Version W.5 dated 4-19-04, reads:
Page 1, line 2, following "deeds;":
Delete "and"
Page 1, line 3, following "sites":
Insert "; and providing for an effective date"
Page 3, lines 6 - 7:
Delete "Sales under this section may be at public or
private sale under (g) of this section."
Page 3, lines 25 - 28:
Delete all material and insert:
"(f) A resident may nominate a parcel for
disposal under this section and, if the resident has
not leased or purchased land under this section during
the three-year period preceding the date of nomination,
may apply for a lease for the nominated parcel under
(b) of this section."
Page 3, line 29:
Delete "five"
Insert "10"
Page 4, line 2:
Delete "400"
Insert "700"
Page 4, line 6, following ";":
Insert "and"
Page 4, lines 7 - 9:
Delete all material.
Page 4, line 10:
Delete "(4)"
Insert "(3)"
Page 4, following line 11:
Insert a new bill section to read:
"* Sec. 5. AS 38.05.600(f) as enacted in sec. 4 of
this Act, takes effect January 1, 2005."
JIM POUND, STAFF TO REPRESENTATIVE FATE, explained that
Amendment #2, Version W.5, adds an effective date clause in
the bill title. The language on page 3, lines 6-7 addresses
and eliminates private sales, which had been a concern.
Paragraph (f) in Section 4 eliminates the first right of
refusal clause and allows an individual to file for a lease.
The amendment expands "not to exceed" from five to ten acres
because several organized boroughs have platting rules
requiring a minimum of ten acres for cabin sites. This
change would make more land available within those boroughs.
Representative Chenault asked which of the boroughs require
10-acre parcels. Mr. Pound replied that both the Mat-Su and
North Star Boroughs have 10-acre requirements.
Mr. Pound explained that because of the expansion to 10
acres, the waterfront language has been changed from 400
feet to "may not exceed 700 feet." The meander mile has been
eliminated because it was a buffer zone inadvertently left
in paragraph 3 when the 660-foot buffer zone was removed.
The amendment also adds applicability to be effective
January 1, 2005. Currently the Department of Natural
Resources (DNR) has remote recreational cabin staking in
excess of 13 acres and if the bill takes effect before that
process is completed, it would change the rules in mid-
stream.
Co-Chair Williams removed his objection. Amendment #2
Version W.5 was adopted.
JIM DERRINGER, STAFF TO REPRESENTATIVE FATE, explained that
the sponsor had worked with the DNR on the fiscal note to
arrive at an agreement on the revenues, which the sponsor
set higher than the Department's figures. The revenues
nearly doubled when the parcels changed from 5 acres to 10
acres. The Department's initial cost to implement the
program increased from $300 thousand to $390 thousand, which
is justifiable. He said that the program would begin to
break even after the third year, and would start to generate
revenue for the State thereafter.
NICO BUS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
NATURAL RESOURCES, agreed that the DNR had worked with the
sponsor on the fiscal note. The revenue has increased with
the shift to 10-acre parcels, but he thought that the timing
of the revenue stream was "optimistic."
Representative Chenault asked how Mr. Bus foresaw the two
programs working simultaneously. Mr. Bus deferred to Mr.
Mylius for explanation.
DICK MYLIUS, DEPUTY DIRECTOR, DIVISION OF MINING LAND AND
WATER, DEPARTMENT OF NATURAL RESOURCES, VIA TELECONFERENCE,
ANCHORAGE, said that the DNR hadn't figured out how the two
programs would operate, although the differences between
them aren't as great with the new Amendment #2. The main
change is that under this proposal, individuals would be
nominating specific parcels. Mr. Mylius stated that if
nominations were in an area where more parcels were offered,
the DNR would roll those into the existing program. These
would not be entirely distinct programs.
Representative Chenault pointed out that the fiscal note
reflects 5 full-time and one part-time staff, and expands to
7 full-time and one part-time staff in 2010. He commented
that if the two programs were combined at some point, he
would expect the fiscal note to drop. Mr. Mylius replied
that the DNR initially envisions two separate programs
because many people would apply for the parcels. The largest
initial cost under HB 319 would involve processing
individual applications for specific parcels.
Representative Fate MOVED to report CSHB 319(FIN) out of
Committee with individual recommendations and accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
CSHB 319(FIN) was REPORTED out of Committee with individual
recommendations and with two new fiscal impact notes.
HOUSE BILL NO. 467
An Act establishing an Alaska Commemorative Coin
Commission to develop the design concepts and to make
recommendations regarding the final design of the
Alaska quarter under the 50 States Commemorative Coin
Program Act; and providing for an effective date.
JIM SHINE, STAFF TO REPRESENTATIVE ANDERSON, explained that
the bill follows the federal authorizing legislation of the
Fifty States Commemorative Coin Act, and it establishes the
Alaska Commemorative Coin Commission with eleven members.
From 1999 to 2008, the U.S. Mint is annually issuing five
quarter dollar coins with state designs displayed on the
reverse side. The quarter honoring Alaska is scheduled for
issuance in August 2008. He discussed the membership, noting
that six of the eleven members would be public members
appointed by the Governor.
Mr. Shine noted that the presiding officers of the Alaska
House of Representatives and the Alaska Senate would appoint
a majority and minority member from each body. The
Governor's Office would initiate a public process to solicit
narrative design concepts for the Alaska quarter. The
calendar year of the issuance of the Alaska quarter would
coincide with events leading to the celebration of the
fiftieth year anniversary of Alaska statehood, in HB 476.
Representative Foster assumed that the backsides of the
state quarters were the states' emblems or seals. Mr. Shine
said that the design guidelines are strict and they prohibit
the use of state seals, and copyrighted photographs require
permission for use. Representative Foster asked if the coin
designs might use state flags. Mr. Shine said that he didn't
think so.
Representative Hawker referred to the fiscal note and asked
why there would be a half-time position over two years
instead of using a current staff position. Mr. Shine replied
that the drafter included that language, but the bill
sponsor might agree to use an existing organization.
Representative Hawker commented further on the existing
support within the Administration.
Representative Hawker MOVED to ADOPT a zero fiscal note for
CS HB 467(STA). There being NO OBJECTION, it was so ordered.
Co-Chair Harris asked if it would also zero out the part-
time authorization employees. Representative Hawker
confirmed that it would.
Representative Foster asked what would happen to the design
of the quarter if the bill doesn't pass the Legislature this
session. Mr. Shine said that the bill would die. The U.S.
Mint would contact the Governor's Office two years before
the calendar year of issuance of the quarter. He pointed
out that this bill simply sets the framework in place.
Co-Chair Williams read the Letter of Intent from the State
Affairs Committee that accompanies the bill.
Representative Stoltze suggested substituting the Letter of
Intent as the context of the bill. Mr. Shine explained that
the State Affairs Committee wanted the design concept to go
through the framework of a commission, and the Letter of
Intent simply solicits design concepts in a statewide
contest.
Co-Chair Harris referred to the Sponsor Statement and asked
if the majority and minority members of the Commission would
be public members or legislators. Mr. Shine replied that
the intent is to appoint a majority and a minority member
from both the House and Senate separate from the six public
members. The Governor or his appointee would occupy the
eleventh seat.
Representative Stoltze commented that he would prefer the
Commission membership to be less politically driven and to
include geographic and ethnic considerations. Mr. Shine
replied that the issue had not been considered.
Representative Foster agreed with Representative Stoltze,
and recommended one member from each of the four judicial
districts so that the composition would be regional. Mr.
Shine noted that there already are four public members, one
from each judicial district. He would discuss the removal of
legislators from the commission with the bill sponsor.
Representative Stoltze offered to work on the bill.
HB 467 was heard and HELD in Committee for further
consideration.
HOUSE BILL NO. 476
An Act establishing the Alaska Statehood Celebration
Commission; and providing for an effective date.
JIM SHINE, STAFF TO REPRESENTATIVE ANDERSON, explained that
the Alaska Statehood Celebration Commission would celebrate
the landmark fifty-year anniversary of Alaska's statehood in
January, 2009. He discussed the nine-member composition of
the Commission and its role. He pointed out that the State
Affairs Committee Substitute reduces the size of the
Commission and the fiscal note.
Co-Chair Williams noted the funding for two years of the
five. Mr. Shine replied that the fiscal note analysis
reflects the best estimate of the startup costs of the
Commission. After the Commission is organized, it will
prepare its own budget for subsequent years as required in
the legislation. He referred to the bill's language on page
3, lines 3-4 that states: "prepare a timetable and budget
for completion of its responsibilities under this Act;"
Representative Stoltze asked if the history of the Silver
Anniversary Celebration had been reviewed for guidance in
avoiding waste and diversion of funding. Mr. Shine replied
that he had considered it, and it resulted the appointment
of subcommittees to spread out duties and costs over a few
years.
Representative Hawker referred to the fiscal note reflecting
a full time position to support the Commission and commented
that civic or business organizations could provide the
needed support.
Representative Chenault noted that no positions are shown on
the fiscal note, which is zero, and he wondered if the
position is in the Administrative Services budget.
Representative Hawker MOVED to change Fiscal Note #2,
GOV/Executive Office dated 4/7/04, to zero. There being NO
OBJECTION, it was so ordered.
Vice-Chair Meyer commented that five years is a long time to
be planning a party and it would add to the costs of the
Commission. Mr. Shine replied that the intent of the sponsor
was to start early to form subcommittees and receive input
for the celebration.
In response to a question by Co-Chair Harris, Mr. Shine
explained the composition of the Commission. Co-Chair Harris
noted, as in HB 467, four legislators would be on the
Commission.
Representative Hawker agreed that five years to plan a party
is a long time, and suggested changing the effective date
from January 1, 2005, to January 1, 2007, which would allow
a year for start up and a year for planning. Representative
Croft respectfully disagreed and argued that longer planning
would allow for a better presentation of Alaska's history.
Representative Hawker thought that Representative Croft
presented a convincing argument for longer planning.
Representative Foster MOVED to report CSHB 476(STA) out of
Committee with individual recommendations and the two
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 476(STA) was REPORTED out of Committee with individual
recommendations and with two zero fiscal impact notes.
ADJOURNMENT
The meeting was adjourned at 3:01 P.M.
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