Legislature(2003 - 2004)
05/04/2004 09:21 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 4, 2004
9:21 A.M.
TAPE HFC 04 - 104, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 9:21 A.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
Peter Ecklund, House Finance Committee Staff, Representative
Bill Williams; James Armstrong, Staff, Representative Bill
Williams; Dick Coose, Staff, Senator Bert Stedman; Susan
Parks, Assistant Attorney General, Criminal Division,
Department of Law
PRESENT VIA TELECONFERENCE
Becky Gay, Program Manager, Alaska Industrial Development
and Export Authority (AIDEA), Alaska Energy Authority (AEA),
Anchorage; Linda Wilson, Executive Director, Alaska Public
Defender Agency, Department of Administration, Anchorage
SUMMARY
HB 561 An Act providing for and relating to the issuance
of general obligation bonds in a principal amount
of not more than $1,000,000 for the purpose of
paying the cost of state transportation projects;
and providing for an effective date.
CS HB 561 (FIN) was reported out of Committee with
a "do pass" recommendation and with a new fiscal
note by the Department of Revenue.
CS SB 30(JUD) am
An Act relating to information and services
available to pregnant women and other persons; and
ensuring informed consent before an abortion may
be performed, except in cases of medical
emergency.
CS SB 30(JUD)am was SCHEDULED by not HEARD.
CS SB 170(JUD)
An Act relating to murder in the second degree,
the justification of defense of self or others,
immunity from prosecution, sentencing, probation,
discretionary parole, and the right to
representation in certain criminal proceedings;
relating to violation of a custodian's duty;
relating to sexual abuse of a minor; relating to
release of information concerning certain cases
involving a minor; relating to local options
regarding alcoholic beverages, the offense of
furnishing or delivery of alcoholic beverages to a
person under 21 years of age, and forfeiture of
property used in, and money or other items of
value used in financial transactions derived from,
violation of certain laws relating to alcoholic
beverages; relating to assault by means of a
dangerous instrument; relating to operating or
driving a motor vehicle, aircraft, or watercraft
while under the influence of an alcoholic
beverage, inhalant, or controlled substance, to
the refusal to submit to a chemical test, and to
the presumptions concerning the chemical analysis
of breath or blood; and providing for an effective
date.
CS SB 170(JUD) was HEARD and HELD in Committee.
CS SB 272(FIN)
An Act relating to certain monetary advances in
which the deposit or other negotiation of checks
to pay the advances is delayed until a later date;
and providing for an effective date.
CS SB 272 (FIN) was SCHEDULED but not HEARD.
CS SB 276(FIN)
An Act relating to the Alaska Insurance Guaranty
Association; relating to the powers of the Alaska
Industrial Development and Export Authority
concerning the association; and providing for an
effective date.
CS SB 276(FIN) was SCHEDULED but not HEARD.
CS SS SB 328(FIN)
An Act relating to the national forest income
program in the Department of Community and
Economic Development and to the authority of the
department to adopt regulations; making conforming
amendments; and providing for an effective date.
HC CS SS SB 328 (CRA) was reported out of
Committee with a "do pass" recommendation and with
zero note #1 by the Department of Community &
Economic Development.
CS SB 337(L&C)
An Act relating to the powers of the Alaska Energy
Authority to make grants and loans, to enter into
contracts, and to improve, equip, operate, and
maintain bulk fuel, waste energy, energy
conservation, energy efficiency, and alternative
energy facilities and equipment; relating to the
bulk fuel revolving loan fund; relating to the
Alaska Energy Authority's liability for the
provision of technical assistance to rural
utilities; relating to the Alaska Energy
Authority's investment of the power development
fund; repealing the electrical service extension
fund; and providing for an effective date.
HCS CS SB 337(FIN) was reported out of Committee
with "no recommendation" and with zero note #1 by
the Department of Revenue and zero note #2 by
Department of Community & Economic Development.
CS SB 357(FIN)
An Act relating to the regulation of insurance,
insurance licenses, qualifications of insurance
producers, surplus lines, fraud investigations,
electronic transactions, and compliance with
federal law and national standards; and providing
for an effective date.
CS SB 357(FIN) was SCHEDULED but not HEARD.
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328(FIN)
An Act relating to the national forest income program
in the Department of Community and Economic Development
and to the authority of the department to adopt
regulations; making conforming amendments; and
providing for an effective date.
DICK COOSE, STAFF, SENATOR BERT STEDMAN, explained that the
legislation would make statutory changes required for the
Department of Community and Economic Development to disburse
federal funds commonly referred to as the "timber receipts".
The "Secure Rural Schools and Community Self-Determination
Act of 2000" made substantive changes to the federal program
commonly known as National Forest Receipts. The Federal Act
is subject to reauthorization in 2006. National Forest
Receipts are distributed to the State for schools and roads
within the boundary of the national forest in which they are
collected. Mr. Coose noted that the Senate Finance
Committee amended the bill to define the student "average
daily membership" (ADM) for the purpose of distributing
forest receipts within unorganized boroughs.
Mr. Coose continued, in order to address federal changes,
the Department of Community and Economic Development must
amend program regulations so the payments to communities
located within the Tongass and Chugach National Forests
conform to the new federal requirements. Subsequent to the
adoption of the program regulation changes, the Department
of Law advised the Department of Community and Economic
Development that it lacks the statutory authority to
implement the federal changes through its regulations. SB
328 provides the Department with the authority to adopt
regulations necessary to implement the revised federal
program in a manner consistent with federal law.
Mr. Coose pointed out that the legislation provides general
regulation adoption authority for the Department to carry
out its statutory functions. The change corrects a
statutory problem created by the merger of the Department of
Commerce and Economic Development and the Department of
Community and Regional Affairs. Mr. Coose identified the
changes made in previous committees.
Representative Foster MOVED to report HCS CS SB 328 (CRA)
out of Committee with individual recommendations and with
the accompanying fiscal note. There being NO OBJECTION, it
was so ordered.
HC CS SS SB 328 (CRA) was reported out of Committee with a
"do pass" recommendation and with zero note #1 by the
Department of Community & Economic Development.
SB337
CS FOR SENATE BILL NO. 337(L&C)
An Act relating to the powers of the Alaska Energy
Authority to make grants and loans, to enter into
contracts, and to improve, equip, operate, and maintain
bulk fuel, waste energy, energy conservation, energy
efficiency, and alternative energy facilities and
equipment; relating to the bulk fuel revolving loan
fund; relating to the Alaska Energy Authority's
liability for the provision of technical assistance to
rural utilities; relating to the Alaska Energy
Authority's investment of the power development fund;
repealing the electrical service extension fund; and
providing for an effective date.
BECKY GAY, (TESTIFIED VIA TELECONFERENCE), PROJECT MANAGER,
ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY, (AIDEA),
ALASKA ENERGY AUTHORITY (AEA), ANCHORAGE, commented that SB
337 relates to the:
· Powers of the Alaska Energy Authority (AEA) to make
grants and loans and enter into contracts;
· The bulk fuel revolving loan fund;
· AEA's potential liability for the provision of
technical assistance to rural utilities;
· AEA's investment of the power development fund, and
· Repeals the electrical service extension fund.
Section 1 amends AS 42.45.0 10, establishing the power
project fund, to add authorization for AEA to make loans
from the fund for waste energy, energy conservation, energy
efficiency, and alternative energy facilities and equipment.
Similarly, Section 9 of the bill would amend the general
powers of AEA to authorize it to improve, equip, operate,
maintain, and enter into contracts for the construction,
financing, operation, and maintenance of:
· Bulk fuel,
· Waste energy,
· Energy conservation,
· Energy efficiency, and
· Alternative energy facilities and equipment.
The Denali Commission and other federal agencies have
provided substantial funding for such projects, and the
Legislature has authorized AEA's receipt and expenditure of
the federal money.
Ms. Gay pointed out that Section 11 repeals AS 42.45.060,
which establishes a loan committee to review and approve
loans from the power project fund and the rural
electrification revolving loan fund. Upon repeal of the
loan committee statute, the credit department of the Alaska
Industrial Development and Export Authority (AIDEA), which
manages the AEA's loan programs, would continue to review
applications for loans from those funds in accordance with
the applicable regulations. Section 2 of the bill would
continue the requirement present in AS 42.4 5.060(g) for
legislative approval of loans for projects in which the
cumulative State monetary involvement, through loans,
grants, and bonds, is at least $5,000,000 and loans for more
than $5,000,000. Sections 1, 3, 4, and 6, contain
conforming amendments to reflect the repeal of AS 42.45.060.
She continued, Sections 5 and 7, amend AS 42.45.2 50, which
governs loans from the bulk fuel revolving loan fund, to
authorize loans from the fund to "persons," defined with
reference to AS 01.10.060 to include corporations,
cooperatives, joint ventures, and governmental entities,
that generate power or supply the public with fuel used in
communities with populations of less than 2,000 people, as
well as loans to the communities themselves. Presently, the
statute authorizes loans to "private individuals" and to the
communities. The Department of Law recently interpreted the
term "private individuals" to include only natural persons.
Section 12 of the bill makes the amendments retroactive to
June 1, 1984, to encompass active loans from the fund to
such entities.
Ms. Gay noted that Section 8 amends AS 42.45.400, which
requires the AEA to provide technical assistance to rural
utilities, to specify that the statutory mandate may not be
used as an independent basis for tort liability against AEA.
The AEA would continue to be liable for negligence if it
fails to use reasonable care in providing the technical
assistance.
Section 10 of the bill would amends AS 44.83.386, relating
to investment of the power development fund, to provide that
AEA, rather than the Department of Revenue, invest the fund.
She pointed out that AEA, with the concurrence of the
Department of Revenue, has been investing the fund since
1993. AEA would continue to remit all fund earnings to the
general fund.
Section 11, in addition to repealing AS 42.45.060 as
discussed above, repeals AS 42.45.200, (the electrical
service extension fund, which is inactive), and repeals AS
42.45.250(I)(1) to remove an unnecessary definition of a
term that is not used in the statute. Ms. Gay concluded her
testimony.
Co-Chair Williams MOVED to ADOPT Amendment #1, #23-GS2076,
Craver, 5/3/04. Co-Chair Harris OBJECTED for the purpose of
discussion.
PETER ECKLUND, HOUSE FINANCE COMMITTEE STAFF, REPRESENTATIVE
BILL WILLIAMS, explained that several years ago, a tax
incentive was passed for ethanol produced from wood waste
for seafood waste. The incentive will expire June 30, 2004
and Amendment 1 extends the date to June 30, 2009.
Ms. Gay noted that AIDEA was neutral on Amendment 1.
Mr. Ecklund pointed out the amendment would require a title
change. Co-Chair Harris WITHDREW his OBJECTION to Amendment
1. He added that the title concern could be addressed on
the House Floor.
Representative Foster MOVED to report HCS CS SB 337(FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CS SB 337(FIN) was reported out of Committee with "no
recommendation" and with zero note #1 by the Department of
Revenue and zero note #2 by Department of Community &
Economic Development.
CS FOR SENATE BILL NO. 170(JUD)
An Act relating to murder in the second degree, the
justification of defense of self or others, immunity
from prosecution, sentencing, probation, discretionary
parole, and the right to representation in certain
criminal proceedings; relating to violation of a
custodian's duty; relating to sexual abuse of a minor;
relating to release of information concerning certain
cases involving a minor; relating to local options
regarding alcoholic beverages, the offense of
furnishing or delivery of alcoholic beverages to a
person under 21 years of age, and forfeiture of
property used in, and money or other items of value
used in financial transactions derived from, violation
of certain laws relating to alcoholic beverages;
relating to assault by means of a dangerous instrument;
relating to operating or driving a motor vehicle,
aircraft, or watercraft while under the influence of an
alcoholic beverage, inhalant, or controlled substance,
to the refusal to submit to a chemical test, and to the
presumptions concerning the chemical analysis of breath
or blood; and providing for an effective date.
SUSAN PARKS, DEPUTY ATTORNEY GENERAL, CRIMINAL DIVISION,
DEPARTMENT OF LAW, spoke on SB 170, the companion bill for
HB 244, previously heard and held in the House Finance
Committee. Both bills were introduced last year and were
worked on extensively over the interim. The Department of
Law recommends that the Committee consider amending SB 170
to reflect some of the refinements that the House Judiciary
Committee made in the provisions.
Ms. Parks pointed out that there are two provisions in SB
170, not contained in HB 244 that address bootlegging. The
first area not covered in HB 244 is Sections 5 & 6 of SB
170. Currently, that provision covers a 5-mile radius
around the villages, however, in areas where the villages
are close together, the 5-mile radius overlaps. When
villages have conflicting local options, the courts
interpret that to say that no local option could apply in
that area. There would then be corridors created outside
the areas where bootleggers could act. Provisions in
Sections 5 & 6 clarify that the local option of a
municipality takes precedence and if it were two villages,
it would be the one least restrictive, providing protection
around the perimeters of the villages.
Ms. Parks continued. The other provisions not contained in
HB 244 address forfeiture in bootlegging cases listed in
Sections 9, 10 & 11 of SB 170. Those provisions refine the
admission procedure. When property has been seized in a
bootlegging case, when an innocent third party comes in and
makes a showing that the seized property should not be
seized, those provisions lay out a refinement of what needs
to be shown in order to get the property back. The
provisions also comply for a mandatory forfeiture in
situations of a prior conviction for bootlegging or felony
probation. She reiterated that Sections 9-11 would add
forfeiture provisions not included in HB 244.
Ms. Parks noted the proposed amendments included in member's
packets that would take language from HB 244 and move it to
SB 170. She stated that Representative Samuels had
recommended a provision that is not supported by the
Department, as it would create concerns for attorneys
interrupting interviews of the individual in custody. She
offered to answer questions of the Committee.
LINDA WILSON, (TESTIFIED VIA TELECONFERENCE), DEPUTY
DIRECTOR, PUBLIC DEFENDER, DEPARTMENT OF ADMINISTRATION,
ANCHORAGE, testified on SB 170, the companion bill to HB
244. She addressed some amendments proposed by the
Department of Law for the Senate bill. She acknowledged
that the Public Defender does support most of the proposed
amendments except the witness immunity section, Page 12,
Section 21. That section brings concerns with the Alaska
constitutional rights regarding self-incrimination. The
bill intends to provide a procedure for when claims are
raised of self-incrimination. When the judge determines
that a witness has a valid claim, they then let the
prosecutor know that information. The prosecutor then has
to determine if they want to grant the witness immunity or
not. Under the Alaska Constitution, that immunity is called
'transactional immunity' and the person could never be
prosecuted for the crimes exposing themselves to that. She
reiterated that the Alaska Constitution requires
transactional immunity.
Ms. Wilson pointed out that the Senate version identifies
compliance and stops at the findings by the judge regarding
a valid claim. Subsection I, Section 21, shall advise the
prosecution of that finding. That area was debated in the
Senate Judiciary Committee and that the provisions in the
House version would make it unconstitutional. In the House
version, Section 21, Page 11, the judge would share some
information with the special District Attorney (DA) assigned
to make the decision regarding whether to grant witness
immunity. The judge would reveal to the prosecutor the
level of the felony. Unfortunately, sharing information
with any prosecutor defeats the right of self-incrimination
and would make the bill unconstitutional. She urged that
the Committee leave the Senate version in its current state.
Ms. Wilson identified Section 13 in SB 170. She believed
that HB 244 was more refined in that section. She spoke to
Section 9 in HB 244, regarding the felony murder offense.
If a person is charged with a felony, then that person could
nd
be charged with 2 degree murder. In current law, if a
participant in the crime is killed, the other person cannot
be fined or charged with their death. That portion of the
bill seeks in include a participant's death. There is an
exception in the house bill that removes that exposure
except when the killing is of a participant and is a direct
result of a felony criminal crime by a non-participant. The
non-participant would have to do something very significant
for it to be an exception in the bill. She suggested that
language could be a refinement and that HB 244 offered a
better version to that section.
Ms. Wilson addressed felonies and the Driving While
Intoxicated (DWI) provisions. The language of the house
bill is preferred, as it is narrower regarding the
challenging evidence. Section 27 of both bills, would allow
evidence of alcohol consumption before and after driving.
Taking a breath test hours after the driving does not always
reflect what the blood alcohol level is during the time of
operating the vehicle. HB 244 allows the person to raise a
valid defense for a breath test.
Ms. Wilson pointed out that Ms. Parks had touched on
elements of SB 170 regarding overlapping and local option
areas, which is an improvement. Ms. Wilson reiterated that
the Public Defender does agree with some proposed
amendments:
· The assault of the third degree;
· Requiring a court to make findings for release on
bail;
· In a felony DWI, refusal situation, limiting a look
back to 20-years for a subsequent felony;
· Regarding the local option provision, an "opting
out" by local option, and
· Does not make it a felony to furnish alcohol to a
minor. Ms. Wilson concluded her testimony.
Co-Chair Williams stated that SB 170 would be HELD in
Committee for further consideration.
HOUSE BILL NO. 561
An Act providing for and relating to the issuance of
general obligation bonds in a principal amount of not
more than $1,000,000 for the purpose of paying the cost
of state transportation projects; and providing for an
effective date.
JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL WILLIAMS,
addressed Amendment 1. (Copy on File). The amendment would
authorize $90.18 million dollars of State general obligation
bond (G.O.) dollars for transportation projects statewide.
He provided project details:
Federal Earmark Match $15,000,000
Anchorage - Abbott Loop Road Upgrade $15,000,000
Anchorage - Lake Otis & Tudor Intersection $ 8,500,000
Chugiak Birchwood Eagle River Road Service $ 700,000
Glenn Highway Lighting $ 330,000
Mat-Su - Bogard Road Extension East $ 6,600,000
Mat-Su - Trunk Road Hospital Access $ 1,000,000
Kenai - Sterling Hwy Kasilof River Area $ 4,000,000
Kenai - Kenai Borough Road Improvements $ 2,000,000
Kenai - City of Kenai Road Improvements $ 1,000,000
Fairbanks - Steese Corridor Safety $ 7,500,000
Fairbanks - Cowles Road Upgrade $ 1,200,000
Sitka - Old Thomsen Harbor renovation $ 2,500,000
Juneau - Areawide Transportation Improvements $ 2,300,000
Ketchikan - Thomas Basin Harbor, Ryus Float, Bar Harbor
North, Hole-in-the-Wall Harbor, Kundson Cove Harbor
renovations $ 2,650,000
Ketchikan Gateway Borough $ 500,000
City of Ketchikan - Road Improvements $ 500,000
Kodiak - Airport Terminal Renovation $ 1,000,000
Port Lions - Public Dock Replacement $ 500,000
Nome - City Streets Improvements $ 1,650,000
Kotzebue Area wide Road Maintenance $ 1,400,000
Petersburg - Middle Harbor Renovation $ 1,200,000
Wrangell - Heritage Harbor Renovation $ 1,400,000
Valdez - Harbor Deferred Maintenance $ 1,000,000
Homer - Deep Water Dock Corrison $ 450,000
Chignik - Public Dock Project $ 1,000,000
Adak - Small Boat Harbor Expansion $ 3,000,000
Skagway - Harbor Deferred Maintenance $ 1,300,000
Whittier - Harbor Renovation $ 1,500,000
Statewide Harbor Deferred Maintenance $ 3,500,000
Co-Chair Williams MOVED to ADOPT Amendment 1.
Representative Stoltze noted a spelling and syntax error in
a project listed in his area.
Vice Chair Meyer OBJECTED to the amendment. He mentioned
the earlier list indicating the road bonds Anchorage needs.
He voiced his concern for the lost federal match in the
amount of $15 million dollars. He asked which projects
those funds were earmarked for. Mr. Armstrong recommended
consulting with the Commissioner of Department of
Transportation & Public Facilities regarding those concerns.
Vice Chair Meyer WITHDREW his OBJECTION.
Co-Chair Williams interjected that the information would be
distributed to Committee members. There being NO further
OBJECTION, Amendment 1 was adopted.
Representative Foster MOVED to report CS HB 561 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 561 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Revenue.
CS FOR SENATE BILL NO. 170(JUD)
An Act relating to murder in the second degree, the
justification of defense of self or others, immunity
from prosecution, sentencing, probation, discretionary
parole, and the right to representation in certain
criminal proceedings; relating to violation of a
custodian's duty; relating to sexual abuse of a minor;
relating to release of information concerning certain
cases involving a minor; relating to local options
regarding alcoholic beverages, the offense of
furnishing or delivery of alcoholic beverages to a
person under 21 years of age, and forfeiture of
property used in, and money or other items of value
used in financial transactions derived from, violation
of certain laws relating to alcoholic beverages;
relating to assault by means of a dangerous instrument;
relating to operating or driving a motor vehicle,
aircraft, or watercraft while under the influence of an
alcoholic beverage, inhalant, or controlled substance,
to the refusal to submit to a chemical test, and to the
presumptions concerning the chemical analysis of breath
or blood; and providing for an effective date.
Co-Chair Williams stated that Representative Samuels asked
to be included in further discussions on SB 170.
Co-Chair Williams noted that SB 170 would be HELD in
Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 10:04 A.M.
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