Legislature(2001 - 2002)

05/13/2002 01:44 PM Senate FIN

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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Bills Previously Heard/Scheduled
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                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                           May 13, 2002                                                                                       
                              1:44 PM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-02 # 99, Side A                                                                                                             
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Pete Kelly convened the meeting at approximately 1:44 PM.                                                              
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Jerry Ward, Vice Chair                                                                                                  
Senator Loren Leman                                                                                                             
Senator Gary Wilken                                                                                                             
Senator Lyman Hoffman                                                                                                           
Senator Donald Olson                                                                                                            
Senator Alan Austerman                                                                                                          
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
                                                                                                                                
Also Attending:                                                                                                               
There were no testifiers.                                                                                                       
                                                                                                                                
Attending via Teleconference:                                                                                                 
There were no teleconference participants.                                                                                      
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB 51-LEGIS APPROVAL OF SEAFOOD/FOOD SAFETY LAB                                                                                 
                                                                                                                                
The Committee adopted a committee substitute and one amendment. The                                                             
bill was reported from Committee.                                                                                               
                                                                                                                                
HB 528-STATE REIMBURSEMENT CAPITAL PROJECT DEBTS                                                                                
                                                                                                                                
The Committee adopted a committee substitute and the bill moved                                                                 
from Committee.                                                                                                                 
                                                                                                                                
HB 525-GO BONDS: MAJOR MAINTENANCE FOR FACILITIES                                                                               
                                                                                                                                
The Committee adopted a committee substitute and the bill moved                                                                 
from Committee.                                                                                                                 
                                                                                                                                
HB 524-G.O. BONDS: SCHOOLS/MUSEUM/UNIVERSITY                                                                                    
                                                                                                                                
The Committee adopted a  committee substitute, considered and failed                                                            
to adopt one amendment, and moved the bill from Committee.                                                                      
                                                                                                                                
HB 451-MUNICIPAL BOND REIMBURSEMENT                                                                                             
                                                                                                                                
The bill was waived from Committee.                                                                                             
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 51(FIN)                                                                                              
     "An Act giving  notice of and approving the entry  into and the                                                            
     issuance of certificates  of participation for a lease-purchase                                                            
     agreement  for a seafood and  food safety laboratory  facility;                                                            
     relating  to the use of certain  investment income for  certain                                                            
     construction costs; and providing for an effective date."                                                                  
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Ward  moved for adoption of  SCS CS HB 51, 22-GH1012\J  as a                                                            
working document.                                                                                                               
                                                                                                                                
Co-Chair  Kelly explained  that Version "J"  contains revised  costs                                                            
for the new seafood and  food safety laboratory facility as a result                                                            
of money being appropriated to this project in FY02.                                                                            
                                                                                                                                
There being no objection, the committee substitute was ADOPTED.                                                                 
                                                                                                                                
Amendment #1: This amendment  changes the effective date of the bill                                                            
to March 1, 2003.                                                                                                               
                                                                                                                                
Senator Ward moved for adoption of Amendment #1.                                                                                
                                                                                                                                
Senator Hoffman  inquired as  to the reason  for the effective  date                                                            
change.                                                                                                                         
                                                                                                                                
Senator  Kelly   replied  that  this   date  would  allow   the  new                                                            
gubernatorial  administration  to negotiate  the lease arrangements                                                             
associated with this legislation.                                                                                               
                                                                                                                                
There being no objection, Amendment #1 was ADOPTED.                                                                             
                                                                                                                                
Senator  Ward  moved to  report  "Senate  Committee  Substitute  for                                                            
Committee Substitute for  House Bill #51 (Finance), Version J out of                                                            
Committee with  individual recommendations  and accompanying  notes,                                                            
as amended."                                                                                                                    
                                                                                                                                
There  being no  objection,  SCS CS  HB  51(FIN) was  REPORTED  from                                                            
Committee with  a new zero fiscal  note dated May 13, 2002  from the                                                            
Department   of   Administration,    a  new   $11,705,800    capital                                                            
expenditure/zero  operating  expenditure fiscal  note dated  May 13,                                                            
2002 from the  Department of Environmental  Conservation,  and a new                                                            
$18,000  fiscal  note dated  May 13,  2002  from the  Department  of                                                            
Revenue.                                                                                                                        
                                                                                                                                
RECESSED TO CALL OF THE CHAIR 1:47 PM / 9:00 PM                                                                                 
                                                                                                                                
AT EASE 9:03 PM / 9:05 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 525(FIN) am                                                                                          
     "An Act relating to the issuance of general obligation bonds                                                               
     for the purpose of paying the cost of deferred maintenance of                                                              
     public facilities; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Ward moved  for adoption of SCS CS HB 525,  22-LS1735\L as a                                                            
working draft.                                                                                                                  
                                                                                                                                
There being no objections, the committee substitute was ADOPTED.                                                                
                                                                                                                                
Senator  Ward   offered  a  motion   to  report  "Senate   Committee                                                            
Substitute  for Committee Substitute  for House Bill #525,  Finance,                                                            
Version  L out  of Committee  with  individual  recommendations  and                                                            
accompanying notes."                                                                                                            
                                                                                                                                
There being  no objections,  SCS CS  HB 525(FIN)  was REPORTED  from                                                            
Committee  with  fiscal   note  #1,  dated  May  3,  2002  from  the                                                          
Department of Revenue.                                                                                                          
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 524(FIN)                                                                                             
     "An Act  relating to the issuance  of general obligation  bonds                                                            
     for  the purpose of  paying the cost  of design, construction,                                                             
     and  major maintenance  of educational  and museum facilities;                                                             
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator  Leman  moved to  adopt  SCS CS  HB  524, 22-LS1725\O  as  a                                                            
working document.                                                                                                               
                                                                                                                                
There being no objection, the committee substitute was ADOPTED.                                                                 
                                                                                                                                
Amendment  #1: This  amendment would  truncate [or  round down]  the                                                            
dollar amounts  for the eleven projects  identified in Section  3 of                                                            
the bill beginning  with the thousandth  digit position so  that the                                                            
four affected digits reflect the number zero.                                                                                   
                                                                                                                                
Senator Leman moved for  adoption of Amendment #1, stating "it would                                                            
be a better  way to list the numbers."  He stated this would  create                                                            
"a fairly minor affect" on the total.                                                                                           
                                                                                                                                
Co-Chair  Kelly objected  stating this amendment  might create  some                                                            
unforeseen delays in moving the bill forward.                                                                                   
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Green, Senator Leman                                                                                          
                                                                                                                                
OPPOSED: Senator Austerman,  Senator Hoffman, Senator Olson, Senator                                                            
Ward, Senator Wilken, Co-Chair Donley, Co-Chair Kelly                                                                           
                                                                                                                                
The motion FAILED (2-7)                                                                                                         
                                                                                                                                
Senator  Olson  inquired as  to  the difference  between  the  House                                                            
version of the bill and the committee substitute.                                                                               
                                                                                                                                
Co-Chair  Kelly  responded  that the  Senate  Committee Substitute,                                                             
Version  "O",  includes  a  more  extensive  list  of  projects.  He                                                            
explained,  "To achieve  that,  most of  the major  maintenance  was                                                            
removed."                                                                                                                       
                                                                                                                                
Senator  Leman offered  a motion  to report  "Senate  CS for CS  for                                                            
House   Bill   524   Finance   from   Committee    with   individual                                                            
recommendations and accompanying small fiscal note."                                                                            
                                                                                                                                
There being  no objection,  SCS CS  HB 524 (FIN)  was REPORTED  from                                                            
Committee with Fiscal Note  #1 from the Department of Revenue, dated                                                            
May 3, 2002.                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 528(TRA)                                                                               
     "An Act relating to programs of state reimbursement for debt                                                               
     payments for certain capital projects; and providing for an                                                                
     effective date."                                                                                                           
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator  Ward offered  a motion  to  adopt the  SCS CS  HB 528,  22-                                                            
LS1724\V as a working draft.                                                                                                    
                                                                                                                                
There being no objections, the committee substitute was ADOPTED.                                                                
                                                                                                                                
Senator  Ward  moved to  report  "Senate  Committee  Substitute  for                                                            
Committee Substitute for  House Bill #528 Finance, Version V and any                                                            
accompanying   fiscal  notes"  out  of  Committee  with   individual                                                            
recommendations.                                                                                                                
                                                                                                                                
Senator Leman  commented, for the record, that he  would prefer that                                                            
funding  for  the  University  of  Alaska  Anchorage  Community  and                                                            
Technical  College Center  project  for $14 million,  identified  on                                                            
page 3,  line 15 in Section  2 of the bill,  "instead be shifted  to                                                            
the second  phase of  the science  building instead  of the  project                                                            
listed."                                                                                                                        
                                                                                                                                
There being  no objections,  SCS CS HB 528  (FIN) was REPORTED  from                                                            
Committee  with  no  fiscal  notes,   as  it is  an  appropriations                                                             
legislation.                                                                                                                    
                                                                                                                                
AT EASE 9:11 PM / 9:14 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 451am                                                                                                       
     "An Act relating to municipal bond reimbursement for school                                                                
     construction; and providing for an effective date."                                                                        
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill in the Senate Finance                                                                 
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Kelly announced that HB 451 would be WAIVED from this                                                                  
Committee to the Senate Rules Committee.                                                                                        
                                                                                                                                
RECESSED TO THE CALL OF THE CHAIR 9:15 PM                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Pete Kelly adjourned the meeting at 05:03 PM, Tuesday,                                                                 
May 14, 2002.                                                                                                                   

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