Legislature(2015 - 2016)SENATE FINANCE 532
04/13/2015 09:00 AM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB34 | |
| SB70 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 34 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 13, 2015
9:03 a.m.
9:03:59 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Erin Shine, Staff, Senator Anna MacKinnon; Ben Ellis,
Director, Alaska State Parks, Department of Natural
Resources; John Hutchins, Civil Division, Department of
Law.
PRESENT VIA TELECONFERENCE
SUMMARY
SB 34 PCE ENDOWMENT FUND INVESTMENT
CSSB 34(FIN) was REPORTED out of committee with a
"do pass" recommendation and with a previously
published zero fiscal note: FN1 (REV).
SB 70 GAS PIPELINE RIGHT-OF-WAY; PARKS; REFUGES
CSSB 70(FIN) was REPORTED out of committee with a
"do pass" recommendation and with a previously
published zero fiscal note: FN1 (DNR).
SENATE BILL NO. 34
"An Act relating to investment of the power cost
equalization endowment fund; and providing for an
effective date."
9:04:45 AM
Co-Chair MacKinnon provided a brief history of the
legislation.
Vice-Chair Micciche MOVED to ADOPT proposed committee
substitute for SB 34, Work Draft 29-GS1018\H (Nauman,
4/10/15).
Co-Chair MacKinnon OBJECTED for the purpose of discussion.
9:05:22 AM
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, explained the
changes in the CS included a change in the fund investment
from 7 percent to at least a 4 percent nominal return over
a five year period.
9:05:51 AM
Senator Hoffman commented that he thought the legislation
made sound investment sense. He said that the state had
been favored with strong markets but did not believe casing
in at 7 percent was sustainable.
9:06:22 AM
Senator Dunleavy referred to Section 1(a)(2):
(2) invest the fund in a manner likely to achieve
a four [SEVEN] percent nominal return over a five-year
period to meet the objectives of the power cost
equalization and rural electric capitalization fund
(AS 42.45.100)[TIME].
Senator Dunleavy understood that four percent was the goal.
Co-Chair MacKinnon replied yes.
9:07:06 AM
Co-Chair MacKinnon removed her objection. There being NO
further OBJECTION, it was so ordered.
9:07:26 AM
Vice-Chair Micciche reviewed the fiscal note FN1 (REV). He
explained that the fiscal note was zero, and no
supplemental or capital costs were anticipated.
Co-Chair MacKinnon MOVED to report CSSB 34 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 34(FIN) was REPORTED out of committee with a "do pass"
recommendation and with a previously published zero fiscal
note: FN1 (REV).
9:08:27 AM
AT EASE
9:10:38 AM
RECONVENED
SENATE BILL NO. 70
"An Act relating to exceptions from designation as a
special purpose site under art. VIII, sec. 7 of the
Constitution of the State of Alaska for portions of
Denali State Park, Captain Cook State Recreation Area,
Nancy Lake State Recreation Area, and Willow Creek
State Recreation Area to allow leasing a right-of-way
for a natural gas pipeline."
9:10:43 AM
Co-Chair MacKinnon read the title of SB 70.
Vice-Chair Micciche MOVED to ADOPT proposed committee
substitute for SB 70, Work Draft 29-GS1820\N (Shutts,
4/13/15).
Co-Chair MacKinnon OBJECTED for purpose of discussion.
9:11:24 AM
Ms. Shine outlined the changes to the bill. She noted the
memos between the division of Legislative Legal and the
Department of Law (DOL) that spoke to amendment language
that had been incorporated into the CS crafted in Senate
Resources. She shared that Legislative Legal felt that the
language had been ambiguous and the Department of Natural
Resources (DNR) and DOL had disagreed.
9:12:16 AM
Ms. Shine spoke to Page 1, line 6 through Page 2, line 3,
which incorporated clarifying language that DOL had
suggested. The next change was on Page 4, lines 21 and 22,
which was the amended language from Senate Resource
Committee. She deferred any questions to DOL and
Legislative Legal. Ms. Shine continued with the next change
on Page 5, lines 6 through 7, from "operation and 5 years"
to "construction and 10 years." She furthered that the next
change on Page 5, line 11 changed the effective date from
January 1, 2020 to January 1, 2025.
9:14:19 AM
Ms. Shine noted the aforementioned changes as they appeared
throughout the bill.
9:14:52 AM
Co-Chair MacKinnon commented that the changes were
standard.
9:14:58 AM
Senator Dunleavy queried the change from five years to ten
years.
Ms. Shine replied that the change was generated from
feedback that the committee had received from AKLNG
partners, and had been clarified by DNR, it had been
decided that the timeline was too short for the previous
language.
9:15:53 AM
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, it was so ordered.
9:16:09 AM
BEN ELLIS, DIRECTOR, ALASKA STATE PARKS, DEPARTMENT OF
NATURAL RESOURCES, commented that the department felt
comfortable with the changes in the bill.
9:17:27 AM
JOHN HUTCHINS, CIVIL DIVISION, DEPARTMENT OF LAW, echoed
Mr. Ellis's response.
Co-Chair MacKinnon noted that the leases would become
effective before January 1, 2025.
Mr. Ellis stated that the department supported the change.
9:17:57 AM
Senator Dunleavy asked whether the administration believed
that gas would be online by 2025, even with the change.
Mr. Ellis related that he had not spoken to the
administration, yet had clarified the issue with the
governor's legislative director - who had given approval.
Senator Dunleavy asked whether the extension in the bill
would translate into an extension on when the state could
expect gas to be online.
Mr. Ellis deferred the question to the DNR commissioner. He
said that to his knowledge the change would not alter the
horizon for gas.
Mr. Hutchins added that the extension had nothing to do
with when gas was expected to be online, but was an
estimate of how long it would take to get certainty on the
corridor. He said that the time period had been a guess to
begin with.
9:20:10 AM
Vice-Chair Micciche spoke to the fiscal note attached to
the bill and noted that it would need to be updated to
reflect the CS version.
9:21:17 AM
AT EASE
9:21:39 AM
RECONVENED
Vice-Chair Micciche MOVED to report CS SB 70 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 70(FIN) was REPORTED out of committee with a "do pass"
recommendation and with a previously published zero fiscal
note: FN1 (DNR).
9:22:06 AM
AT EASE
9:24:28 AM
RECONVENED
Co-Chair MacKinnon discussed housekeeping.
ADJOURNMENT
9:25:01 AM
The meeting was adjourned at 9:24 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 34 CSSB 34 (FIN) ver H.pdf |
SFIN 4/13/2015 9:00:00 AM |
SB 34 |
| SB 70 Work Draft Version N.pdf |
SFIN 4/13/2015 9:00:00 AM |
SB 70 |