Legislature(1993 - 1994)
05/07/1994 01:50 PM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 7, 1994
1:50 p.m.
TAPES
SFC-94, #86, Side 2 (575-296)
CALL TO ORDER
Co-chair Drue Pearce convened the meeting at approximately
1:50 p.m.
PRESENT
In addition to Co-chair Pearce, Senators Kelly, Kerttula,
Rieger, and Sharp were present. Co-chair Frank and Senator
Jacko arrived soon after the meeting began.
ALSO ATTENDING: Representative Toohey; Representative
Hanley; Harry Noah, Commissioner, Dept. of Natural
Resources; Shelby Stastny, Director, Office of Management
and Budget; Nancy Slagle, Director of Budget Review, Office
of Management and Budget; Alison Elgee, Budget Director,
University of Alaska; Dave Skidmore, aide to Senator Frank;
and aides to committee members and other members of the
legislature.
SUMMARY INFORMATION
HB 301 - BAN SALE OF SOME STUDDED TIRES AND STUDS
CS SSHB 301 (L&C) was REPORTED OUT of committee
with a zero fiscal note from the Dept. of
Transportation and Public Facilities.
HB 445 - DWI LAWS
Testimony was presented by Dave Skidmore. SCS HB
445 (Finance) was REPORTED OUT of committee with a
"do pass" recommendation, four zero fiscal notes
and three notes containing funding (See page 6 of
these minutes for a list of accompanying fiscal
notes.)
HB 456 - APPROP: COST OF CERTAIN LABOR AGREEMENTS
HB 456am was REPORTED OUT of committee with a "do
pass" recommendation.
HB 466 - AHFC BONDS FOR UNIV. OF ALASKA USES
Testimony was presented by Alison Elgee.
Amendment No. 1 was proposed but failed to be
adopted. HB 466am was subsequently REPORTED OUT
of committee with zero fiscal notes from the
Office of the Governor, Dept. of Revenue, and
University of Alaska.
HB 494 - ALASKA PENSION INVESTMENT AUTHORITY
CSHB 494(STA)am was briefly brought before
committee and then held pending return of
Commissioner Rexwinkel to the meeting.
HB 510 - APPROP: U OF AK LABOR AGREEMENT
HB 510 was REPORTED OUT of committee with a "do
pass" recommendation.
HB 548 - ALASKA ORBITAL LAUNCH COMPLEX
HB 548 was REPORTED OUT of committee with a "do
pass" recommendation and zero fiscal note from the
Dept. of Commerce and Economic Development.
HOUSE BILL NO. 456 am
An Act making appropriations to satisfy the agreed-upon
monetary terms of certain collective bargaining
agreements for certain public employees; and providing
for an effective date.
Co-chair Pearce directed that HB 456am be brought on for
discussion and noted backup material consisting of the
Senate companion bill (SB 289), Governor's transmittal
letter, a hearing request, sectional analysis, and May 3,
1994, correspondence from the Dept. of Administration
relating to the monetary terms of the contract. (Copies of
all materials are on file in the original Senate Finance
Committee file for HB 456.)
(Co-chair Frank and Senator Jacko arrived at this time.)
Senator Kerttula MOVED that HB 456am pass from committee
with individual recommendations. No objection having been
raised, HB 456am was REPORTED OUT of committee. Co-chairs
Pearce and Frank and Senators Kelly, Kerttula, and Sharp
signed the committee report with a "do pass" recommendation.
Senator Jacko signed without recommendation. Senator Rieger
was temporarily away from the committee table and did not
sign the report.
HOUSE BILL NO. 510
An Act making appropriations to satisfy the agreed-upon
monetary terms of a collective bargaining agreement for
certain employees of the University of Alaska; and
providing for an effective date.
Co-chair Pearce directed that HB 510 be brought on for
discussion, noted that it relates to the labor agreement for
the University of Alaska, and referenced file material
consisting of the bill, Governor's transmittal letter, and a
sectional analysis. She then called for questions from
members. None were forthcoming.
Senator Sharp MOVED that HB 510 pass from committee with
individual recommendations. No objection having been
raised, HB 510 was REPORTED OUT of committee. Co-chairs
Frank and Pearce and Senators Kelly, Kerttula, and Sharp
signed the committee report with a "do pass" recommendation.
Senator Jacko signed without making a recommendation.
Senator Rieger was temporarily absent from the meeting and
did not sign.
HOUSE BILL NO. 548
Act relating to the construction of the Alaska Orbital
Launch Complex by the Alaska Aerospace Development
Corporation.
Co-chair Pearce directed that HB 548 be brought on for
discussion. She explained that the companion Senate bill
(SB 381) was previously reported out of committee and is now
in Rules. The Senate version had a full committee hearing.
She next referenced a zero fiscal note from the Dept. of
Commerce and Economic Development, a picture of the launch
stages, an artist's conception of the launch complex,
information from the Alaska Aerospace Development
Corporation, and assorted correspondence. The Co-chair then
queried members regarding disposition of the bill. Senator
Jacko MOVED that HB 548 pass from committee with individual
recommendations. No objection having been raised, HB 548
was REPORTED OUT of committee with a zero fiscal note from
the Dept. of Commerce and Economic Development. Co-chairs
Frank and Pearce and Senators Jacko and Kelly signed the
committee report with a "do pass" recommendation. Senators
Kerttula, Rieger, and Sharp signed "no recommendation."
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 301(L&C)
Act prohibiting the sale of certain studded tires or
the sale of certain studs to be installed in tires; and
providing for an effective date.
Co-chair Pearce directed that CS SSHB 301 (L&C) be brought
on for discussion and referenced a zero fiscal note from the
Dept. of Transportation and Public Facilities, a sponsor
statement, correspondence, a VTI study, and a study by the
Dept. of Transportation and Public Facilities. She then
queried members regarding disposition. Senator Sharp MOVED
that CS SSHB 301 (L&C) pass from committee with individual
recommendations. Senator Kerttula OBJECTED. Co-chair
Pearce called for a show of hands, and the motion carried on
a vote of 5 to 1. (Senator Kerttula was opposed to the
motion, and Co-chair Frank was temporarily absent from the
meeting.) CS SSHB 301 (L&C) was REPORTED OUT of committee
with a zero fiscal note from the Dept. of Transportation and
Public Facilities. Co-chair Pearce and Senators Kelly,
Rieger, and Sharp signed the committee report with a "do
pass" recommendation. Senator Kerttula signed "no rec."
Senator Jacko signed without making a recommendation.
CS FOR HOUSE BILL NO. 494(STA) am
Act changing the Alaska State Pension Investment Board
to the Alaska Pension Investment Authority and relating
to the authority; and providing for an effective date.
Co-chair Pearce directed that CSHB 494 (STA)am be brought on
for discussion and referenced a Senate State Affairs
version, a zero fiscal note from the Dept. of Administration
(Retirement and Benefits), a $398.5 note from Dept. of
Revenue (Treasury Management) with seven new positions, a
$497.0 note from Dept. of Revenue (Alaska Pension Investment
Board) with one new positions, an organizational chart,
hearing request, sponsor statement, a sectional analysis,
investment board position paper, and miscellaneous
information. She observed that the bill had not before been
heard by committee and asked that Darrel Rexwinkel,
Commissioner, Dept. of Revenue, speak to the legislation.
Commissioner Rexwinkel was absent from the meeting at this
time. Co-chair Pearce directed that the bill be HELD
pending his return. (Discussion did not revert to CSHB
494(STA)am during the balance of the meeting.)
HOUSE BILL NO. 445 am
An Act relating to administrative or court revocation
of a driver's license resulting from operation of a
motor vehicle, commercial motor vehicle, or aircraft;
relating to chemical testing of a person's breath,
urine, or blood if the person is involved in a motor
vehicle accident that causes death or serious physical
injury; relating to definitions applicable to
commercial motor vehicle laws; relating to chemical
testing of a person's breath, urine, or blood without
the person's consent; and relating to the use in a
civil or criminal action of the refusal of a person to
submit to a chemical test.
Co-chair Pearce directed that HB 445am be brought on for
discussion. Co-chair Frank referenced two draft Senate
Finance Committee Substitutes for the bill and explained
that one contains reduction of the legal limit to .08 while
the other does not. Versions "O" and "R" were distributed
to members.
DAVE SKIDMORE, aide to Senator Frank, came before committee
to speak to differences between the Senate Judiciary version
and the "O" draft of the proposed Senate Finance Committee
Substitute. The Senate Finance draft:
1. Removes provisions which defined an individual's
third or subsequent DWI conviction as a felony
offense.
2. Inserts technical references to "commercial motor
vehicles," at the request of the Dept. of Law and
Dept. of Public Safety.
3. Makes a technical language change in Sec. 4, at
the request of both the Dept. of Law and Dept. of
Public Safety.
4. The blood-alcohol limited is reduced from 0.10 to
0.08.
5. Removes mandatory vehicle forfeiture provisions.
6. Directs the Dept. of Public Safety to conduct a
study, during the interim, regarding mandatory
vehicle forfeiture and application of felony
penalties to certain drunk driving offenses.
Mr. Skidmore reiterated that version "R" contains all
provisions of version "O" with the exception of reduction of
the blood-alcohol level. Co-chair Frank advised that
discussions with the Dept. of Law and Dept. of Public Safety
reached the conclusion that it is difficult and problematic
to draft, in a short period of time, a forfeiture statute
that would work effectively. More must be understood about
the constitutional and legal hurdles that would have to be
overcome. It was thus determined that the issue should
become an interim project that could be dealt with next
year.
Senator Kelly voiced support for forfeiture provisions and
advised of his understanding that forfeiture is used by the
municipality of Anchorage. Senator Sharp also voiced
support for forfeiture, noting that it is currently used to
confiscate firearms and aircraft from individuals convicted
of hunting violations. Co-chair Frank concurred in comments
of support. He suggested that the legislation be
accompanied by a letter of intent stating committee intent
to construct forfeiture law for enactment next session.
In response to questions from members, Mr. Skidmore
referenced drafting problems encountered in attempting to
deal with situations where there is other ownership or
security interest in the vehicle. An additional problem
arises from recent Supreme Court decisions that say vehicle
forfeiture is analogous to a fine. There is disparity when
individuals convicted of the same crime are forced to
forfeit vehicles of differing values.
Co-chair Frank MOVED for adoption of SCSHB 445 (Fin) (draft
8-GH2019\O, Ford, 5/6/94). Senator Kerttula OBJECTED. Co-
chair Pearce called for a show of hands. SCSHB 445 (Fin),
"O" version, was ADOPTED on a vote of 4 to 2.
Senator Sharp asked if courts currently have authority to
order forfeiture of a vehicle. Mr. Skidmore responded
affirmatively, advising that it is discretionary.
Directing attention to blood-alcohol provisions, Senator
Rieger asked if the court differentiates between someone who
is several points over the limit and an individual whose
alcohol level is double. It was subsequently determined
that courts have discretion in this area as well.
Senator Rieger MOVED that SCSHB 445 (Finance) pass from
committee with individual recommendations. No objection
having been raised, SCSHB 445 (Finance) was REPORTED OUT of
committee with the following fiscal notes:
Alaska Court System 0
Dept. of Public Safety (Vehicles) 0
Dept. of Administration (OPA) 0
Dept. of Law 0
Dept. of Public Safety (Lab.) 49.6
Dept. of Administration (PDA) 90.9
Dept. of Corrections 248.7 opt.
313.8 rev.
All committee members present signed the committee report
with a "do pass" recommendation. (Senator Jacko was
temporarily absent from the meeting and did not sign.)
HOUSE BILL NO. 466 am
An Act authorizing the issuance of bonds by the Alaska
Housing Finance Corporation to pay for the costs of
repair and rehabilitation of student housing facilities
of the University of Alaska; authorizing the issuance
of bonds by the University of Alaska to pay for the
costs of repair and rehabilitation of facilities of the
University of Alaska; amending powers of the Alaska
Housing Finance Corporation; amending the definition of
"public building"; relating to the Alaska debt
retirement fund; and providing for an effective date.
Co-chair Pearce directed that HB 466am be brought on for
discussion. ALISON ELGEE, Budget Director, University of
Alaska, came before committee. She explained that the
legislation was introduced by the Governor on behalf of the
University. It contains $75 million in bond authorization
to deal with one-half of the University's identified
deferred maintenance. A $30 million bond authorization
through the Alaska Housing Finance Corporation addresses
maintenance in student dormitories and housing, and $45
millions issued under the University will provide for other
deferred maintenance projects. Ms. Elgee next referenced a
listing of projects to be covered by the funding and noted
the companion Senate bill (SB 304).
Senator Kelly directed attention to Amendment No. 1 which he
explained would provide funding for construction of new
student housing facilities at the University of Alaska,
Anchorage and University of Alaska, Southeast. Inclusion
would require a title change. Senator Kelly then MOVED for
adoption of Amendment No. 1. Co-chair Pearce OBJECTED. She
explained that the committee already passed legislation
allowing the University to "get private financing for
student housing." The House removed provisions contained in
the amendment from the proposed bill. Co-chair Pearce
voiced concern that reinsertion of those provisions, at this
time, would "kill the bill." She expressed a preference for
a parking garage at the Anchorage campus. Senator Rieger
inquired concerning need for construction at University of
Alaska, Southeast. Alison Elgee explained that the $6
million would purchase an additional 129 beds. The project
received planning and design money in the current fiscal
year. It has been designed and is ready for construction.
Student housing at both Anchorage and Juneau is completely
occupied, and there is a waiting list. Co-chair Pearce
called for a show of hands on adoption of Amendment No. 1.
The motion failed on a vote of 2 to 4, and Amendment No. 1
was NOT ADOPTED.
Senator Rieger acknowledged a substantial deferred
maintenance problem at the University but voiced concern
over use of reserves and issuance of additional debt.
Senator Kelly pointed to the fact that Alaska's latest bond
issue was rated AA by Wall Street. That indicates that
Alaska is a good investment risk because of the state's low
debt. He further attested to deferred maintenance needs
within the University and voiced his belief that the board
of regents has been irresponsible over the past decade in
using funding for other things.
Co-chair Pearce queried members on disposition of the bill.
Senator Kelly MOVED that HB 466am pass from committee with
individual recommendations. OBJECTION was voiced. The Co-
chair called for a show of hands. The motion carried on a
vote of 4 to 3, and HB 466am was REPORTED OUT of committee
with zero fiscal notes from the Office of the Governor,
University of Alaska, and Dept. of Revenue. Co-chairs
Pearce and Frank and Senators Kelly and Sharp signed the
committee report with a "do pass" recommendation. Senator
Rieger signed "no recommendation." Senator Jacko signed,
"do not pass." Senator Kerttula signed, "do not pass, use
GFs."
RECESS
Co-chair Pearce acknowledged the impending Senate floor
session and the fact that remaining bills on the agenda
would require "some testimony." She then directed that the
meeting be recessed and reconvened later in the day at the
call of the chair. The meeting was recessed at 2:20 p.m.
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