03/31/2011 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB51 | |
| SB40 | |
| SB51 | |
| SB32 | |
| HB13 | |
| HB119 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 119 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 40 | TELECONFERENCED | |
| += | SB 51 | TELECONFERENCED | |
| += | SB 32 | TELECONFERENCED | |
| += | HB 13 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 31, 2011
2:02 p.m.
MEMBERS PRESENT
Senator Dennis Egan, Chair
Senator Linda Menard
Senator Bettye Davis
Senator Cathy Giessel
MEMBERS ABSENT
Senator Joe Paskvan, Vice Chair
COMMITTEE CALENDAR
SENATE BILL NO. 51
"An Act relating to the operation of vending facilities on
public property."
- MOVED CSSSSB 51(L&C) OUT OF COMMITTEE
SENATE BILL NO. 40
"An Act prohibiting certain automated telephone solicitations."
- MOVED CSSB 40(L&C) OUT OF COMMITTEE
SENATE BILL NO. 32
"An Act making a special appropriation to capitalize the
alternative energy revolving loan fund; and providing for an
effective date."
- MOVED SB 32 OUT OF COMMITTEE
HOUSE BILL NO. 13
"An Act relating to fees and charges for medical treatment or
services as they relate to workers' compensation; and providing
for an effective date."
- MOVED HB 13 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 119(EDT)
"An Act relating to the procurement of supplies, services,
professional services, and construction for the Alaska
Industrial Development and Export Authority; relating to the
definition of 'own' for the economic development account;
relating to the definitions of 'development project', 'plant',
'facility', and 'project' for the Alaska Industrial Development
and Export Authority; relating to the Alaska Industrial
Development and Export Authority creating subsidiaries regarding
projects financed under AS 44.88.172; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 51
SHORT TITLE: STATE VENDING LICENSES
SPONSOR(s): SENATOR(s) DAVIS
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) L&C, FIN
02/16/11 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/16/11 (S) READ THE FIRST TIME - REFERRALS
02/16/11 (S) L&C, FIN
03/08/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
03/08/11 (S) Heard & Held
03/08/11 (S) MINUTE(L&C)
03/31/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
BILL: SB 40
SHORT TITLE: USE OF RECORDED MESSAGES
SPONSOR(s): SENATOR(s) MEYER
01/19/11 (S) PREFILE RELEASED 1/14/11
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) L&C, JUD
03/15/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
03/15/11 (S) Heard & Held
03/15/11 (S) MINUTE(L&C)
03/31/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
BILL: SB 32
SHORT TITLE: APPROP: ALTERNATIVE ENERGY REV. LOAN FUND
SPONSOR(s): SENATOR(s) WIELECHOWSKI, MCGUIRE
01/19/11 (S) PREFILE RELEASED 1/14/11
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) L&C, FIN
01/19/11 (S) L&C RPT RECD W/CS AWAIT TRANSMITTAL NXT
03/24/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
03/24/11 (S) Heard & Held
03/24/11 (S) MINUTE(L&C)
03/31/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
BILL: HB 13
SHORT TITLE: WORKERS' COMPENSATION: MEDICAL FEES
SPONSOR(s): REPRESENTATIVE(s) OLSON
01/18/11 (H) PREFILE RELEASED 1/7/11
01/18/11 (H) READ THE FIRST TIME - REFERRALS
01/18/11 (H) L&C, FIN
02/11/11 (H) L&C AT 3:15 PM BARNES 124
02/11/11 (H) Moved Out of Committee
02/11/11 (H) MINUTE(L&C)
02/14/11 (H) L&C RPT 6DP
02/14/11 (H) DP: THOMPSON, SADDLER, JOHNSON, HOLMES,
MILLER, OLSON
03/08/11 (H) FIN AT 9:00 AM HOUSE FINANCE 519
03/08/11 (H) Moved Out of Committee
03/08/11 (H) MINUTE(FIN)
03/09/11 (H) FIN RPT 11DP
03/09/11 (H) DP: FAIRCLOUGH, T.WILSON, GUTTENBERG,
JOULE, GARA, NEUMAN, COSTELLO, EDGMON,
03/09/11 (H) DOOGAN, STOLTZE, THOMAS
03/18/11 (H) TRANSMITTED TO (S)
03/18/11 (H) VERSION: HB 13
03/21/11 (S) READ THE FIRST TIME - REFERRALS
03/21/11 (S) L&C, FIN
03/29/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
03/29/11 (S) Heard & Held
03/29/11 (S) MINUTE(L&C)
03/31/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
BILL: HB 119
SHORT TITLE: AIDEA: PROCUREMENT; PROJECTS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/24/11 (H) READ THE FIRST TIME - REFERRALS
01/24/11 (H) EDT, FIN
02/03/11 (H) EDT AT 10:15 AM BARNES 124
02/03/11 (H) Heard & Held
02/03/11 (H) MINUTE(EDT)
02/08/11 (H) EDT AT 10:15 AM BARNES 124
02/08/11 (H) Moved CSHB 119(EDT) Out of Committee
02/08/11 (H) MINUTE(EDT)
02/11/11 (H) EDT RPT CS(EDT) NT 4DP 3NR
02/11/11 (H) DP: THOMPSON, MUNOZ, OLSON, FOSTER
02/11/11 (H) NR: GARDNER, TUCK, HERRON
02/22/11 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/22/11 (H) Moved CSHB 119(EDT) Out of Committee
02/22/11 (H) MINUTE(FIN)
02/23/11 (H) FIN RPT CS(EDT) NT 4DP 6NR 1AM
02/23/11 (H) DP: FAIRCLOUGH, NEUMAN, JOULE, COSTELLO
02/23/11 (H) NR: T.WILSON, GUTTENBERG, EDGMON,
DOOGAN, STOLTZE, THOMAS
02/23/11 (H) AM: GARA
03/23/11 (H) BEFORE THE HOUSE
03/23/11 (H) TRANSMITTED TO (S)
03/23/11 (H) VERSION: CSHB 119(EDT)
03/25/11 (S) READ THE FIRST TIME - REFERRALS
03/25/11 (S) L&C, FIN
03/31/11 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CHRISTINE MARASIGAN
Staff to Senator Meyer
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on the CSSB 40, version D, for the
sponsor.
TOM OBERMEYER
Staff to Senator Davis
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Explained the CS to SSSB 51 for the sponsor.
MICHELLE SYDEMAN
Staff to Senator Wielechowski
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on SB 32 for the sponsor.
CONRAD JACKSON
Staff to Representative Olson
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Offered to answer questions on HB 13 for the
sponsor.
MARK DAVIS, Economic Development Officer
Alaska Industrial and Development and Export Authority (AIEDA)
Department of Commerce, Community and Economic Development
(DCCED
POSITION STATEMENT: Explained HB 119 on behalf of the
administration.
STACY SHUBERT, Director
Government Relations and Public Affairs
Alaska Housing Finance Corporation (AHFC)
Anchorage, AK
POSITION STATEMENT: Testified in support of amendment to HB 119.
ACTION NARRATIVE
2:02:48 PM
CHAIR DENNIS EGAN called the Senate Labor and Commerce Standing
Committee meeting to order at 2:02 p.m. Present at the call to
order were Senators Giessel, Menard, and Egan.
2:03:47 PM
SENATOR DAVIS joined the committee.
SSSB 51-STATE VENDING LICENSES
2:03:57 PM
CHAIR EGAN announced SSSB 51 to be up for consideration, and
then delayed it until staff returned.
SB 40-USE OF RECORDED MESSAGES
2:04:39 PM
CHAIR EGAN announced SB 40 to be up for consideration.
SENATOR MENARD moved to adopt CSSB 40( ), labeled 27-LS0374\D.
CHAIR EGAN objected for discussion purposes.
CHRISTINE MARASIGAN, staff to Senator Meyer, explained that
number (4)(A)-(E) on page 2, lines 3-11 of version I were
eliminated in version D. The reason for the change is that
during the last committee hearing the ACLU pointed out that
certain types of speech were either favored or disfavored, and
eliminating (A) through (E) is saying that all of these
robocalls will be treated the same under this particular
section.
They then changed exemptions later on in section 4 on page 3,
lines 3-6, to include utility companies and any group with which
there is a membership. This issue was brought to them by the
AFLCIO who pointed out that union members like to be able to
communicate with membership using robocalls.
There were a few other technical fixes with renumbering for
conformity.
CHAIR EGAN removed his objection and version D was before the
committee.
SENATOR MENARD moved to report CSSB 40( ), labeled 27-LS0374\D,
from committee with individual recommendations and attached
fiscal note(s). There were no objections and it was so ordered.
2:08:52 PM
At ease from 2:08:52 PM to 2:10:24 PM.
SSSB 51-STATE VENDING LICENSES
2:10:24 PM
CHAIR EGAN moved back up the calendar and announced SSSB 51 to
be up for consideration.
SENATOR DAVIS, sponsor of SSSB 51, said they had heard the bill
before but a new committee substitute (CS) was before them
labeled CSSSSB 51 ( ) 27-LS0079\B.
TOM OBERMEYER, staff to Senator Davis, sponsor of SSSB 51,
explained that language in the sponsor substitute was returned
to that of the original draft in the CS removing the recent
inclusion of municipal and school property in the definition of
"public property" that is in existing statute. It was determined
after diligent inquiry that including municipal and school
property, particularly school property, would greatly reduce
revenues needed in school programs supported by vending
revenues. The intent of SB 51 and the language in the CS is
still to give statutory priority in vending licenses to the
blind in state and federal buildings under the current
definition of "public property" which is managed by the business
enterprise program in the Division of Vocational Rehabilitation,
Department of Labor and Workforce Development (DOLWD). There was
no intention in the previous draft to reduce needed revenues and
programs in the state school districts.
CHAIR EGAN objected for questions.
SENATOR DAVIS relayed that the bill is the same except for
removal of the one section.
CHAIR EGAN removed his objection.
2:12:02 PM
SENATOR MENARD moved to report [CSSSSB 51 ( ) 27-LS0079\B] from
committee with individual recommendations and zero fiscal note.
There were no objections and it was so ordered.
2:14:41 PM
At ease from 2:14 PM to 2:16 PM.
SB 32-APPROP: ALTERNATIVE ENERGY REV. LOAN FUND
2:16:19 PM
CHAIR EGAN announced SB 32 to be up for consideration.
2:16:42 PM
MICHELLE SYDEMAN, staff to Senator Wielechowski, sponsor of SB
32, said this bill fulfills a promise made in last years' Senate
Energy Omnibus bill, which passed unanimously in both houses.
That bill authorized a new loan program that would serve
businesses and non-profits in the state that are struggling with
the same high energy costs that everyone else is. She said the
legislature has done a fabulous job of providing assistance to
home owners, schools, cities, the University and state agencies,
but to date there have not been any programs developed for the
non-profit community or businesses. She recalled "breathtaking"
testimony from a young woman representing a consortium of
churches who referred to a church in Fairbanks that had a
$13,000 energy bill last year and a congregation of just 100
individuals - exemplifying the need. They also heard from five
business owners and had letters from 32 additional business
owners urging the committee to move this legislation along.
SENATOR MENARD moved to report SB 32 from committee with
individual recommendations. There were no objections and it was
so ordered.
2:18:46 PM
At ease from 2:18:46 PM to 2:20:11 PM.
HB 13-WORKERS' COMPENSATION: MEDICAL FEES
2:20:11 PM
CHAIR EGAN announced HB 13 to be up for consideration.
CONRAD JACKSON, staff to Representative Olson, sponsor of HB 13,
offered to answer questions.
CHAIR EGAN found no questions and removed his objection.
SENATOR MENARD moved to report HB 13 from committee with
individual recommendations and attached fiscal note. There were
no objections and it was so ordered.
2:21:45 PM
At ease from 2:21:45 PM to 2:23:07 PM.
HB 119-AIDEA: PROCUREMENT; PROJECTS
2:23:07 PM
CHAIR EGAN announced HB 119 to be up for consideration [CSHB
119(EDT), version 27-GH1745\M, was before the committee]. It was
introduced by the House Special Committee on economic
Development, Trade, and Tourism by request of the Governor. He
said it was being presented by the administration.
MARK DAVIS, Economic Development Officer, Alaska Industrial and
Development and Export Authority (AIEDA), Department of
Commerce, Community and Economic Development (DCCED), explained
that this bill provides for expansion of the type of projects
that AIDEA can currently finance. Presently, AIDEA is authorized
to provide financing for natural resource development, industry,
tourism infrastructure and energy. Those four categories have
not been changed since 1993 and one major purpose of this bill
is the modernization and clarification of some of the projects
AIDEA could now engage in. Without the changes in CSHB 119,
AIDEA could not finance new sectors of the Alaska economy such
as communications or health care. Additionally, AIDEA is now
prevented from providing financial support for federal
facilities and they cannot support the military or the Coast
Guard in their endeavor to build new facilities in the state. In
the last year, AIDEA has been approached by a health care clinic
in rural Alaska and by the U.S. Coast Guard; in both instances
AIDEA approached the Department of Law to see whether current
statutes would let them build those facilities and lease them
back to the federal government, and the answer in both instances
was no. He said the support of the military has an important
role for economic development in Alaska.
2:25:44 PM
Additionally, he explained that CSHB 119 authorizes AIDEA to
better create public/private partnerships or what are commonly
known as PPPs; it does so by permitting the Authority to own
part of a project through the use of a limited liability (LLC)
company or through a corporation. The reason is as they worked
with private developers over the last year they have been
approached several times with the idea of AIDEA owning part of a
project, which they are allowed to do by statute, not in a
partnership but through an LLC. That is based on liability,
insurance and financing issues unfortunately, because they were
also advised by the Department of Law that presently they cannot
be a member of an LLC. The bill seeks to change that, so in the
future they can own part of a project through an LLC that would
also let them divest of that investment more rapidly once that
project was in good enough shape to go entirely to the
predecessor. This is one major of goal of AIDEA's new strategic
plan - to hold things for only a period of time, have an exit
strategy and get some backing in the private sector.
Another portion of CSHB 119 lets AIDEA create subsidiary
corporations. The purpose of letting AIDEA create a subsidiary
is that it could own a project, particular one developing new
technology, and the AIDEA board would be allowed to grant that
subsidiary the powers to own a project or to have bonding
authority, whatever is needed to get it going; but should it be
successful, it would be their intent to spin off the subsidiary
corporation back into the private sector as soon as it is ready.
A subsidiary corporation is an excellent way to sell a project,
because it can be done through selling shares rather than an
asset sale.
The other thing CSHB 119 does is it allows AIDEA to develop its
own procurement regulations. At present, it doesn't have any
procurement regulations; they are under the Department of
Administration for the procurement of services and equipment and
under the Department of Transportation and Public Facilities for
construction. There are certain exemptions in the AIDEA
statutes, for example the Healy Clean Coal Plant is entirely
exempt from the Procurement Code. Mr. Davis said they would
prefer to be under a single set of regulations for procurement.
In that regard, they have the support of Vern Jones, the chief
procurement officer for the Department of Administration and
Mark O'Brien, the chief contracts officer for the Department of
Transportation and Public Facilities. Both of those gentlemen
who have oversight over AIDEA think this is a better way to go.
This provision, which is an amendment to the Procurement Code,
is identical to the authority now granted to the Alaska Housing
Finance Corporation (AHFC) and the Knik Arm Bridge and Toll
Authority (KABATA). So, they would be treated in a similar
fashion as other public corporations in the state.
Saying that, Mr. Davis said he didn't mean the regulations
wouldn't follow the spirit of the Procurement Code; in fact,
this is an amendment to it. So, they would be required to follow
competitive bidding processes and all the provisions. The
difference would be for appeals; if it's a bid for supplies that
appeal goes to the commissioner of the DOA; if it's for
construction it goes to the commissioner of DOTPF. And at times
there has been confusion between the two. Now under the
regulations. a bid appeal would go to the AIDEA board and they
would hear it in a public process; all the board meetings are
recorded, people are allowed to call in if they can't appear
personally. It's a pretty open and transparent process to put
forward a bid.
2:29:45 PM
Finally, he said there has been a proposal to amend this by the
AHFC with regard to their need to create a subsidiary. He said
he had been authorized to tell them that the administration is
comfortable with the proposed amendment by the AHFC.
SENATOR MENARD asked how thorough he was in adding the new
categories. Would he come back to the legislature in two years
to ask for another category?
MR. DAVIS replied that that is an excellent question and the
genesis of the amendment to AS 44.88.909 is based on AIDEA's
strategic plan, specifically page 33, that working with
consultants and the public process (polling businesses
throughout the state and having public meetings) developed the
list over the course of a year. It includes transportation,
communications, community/public purposes, technical
innovations, prototype, commercial applications, or intellectual
property or planning a facility used for a federal facility.
It's pretty comprehensive and reflects the actual projects that
have been brought in to AIDEA over the last two years. It
reflects the views of both the business, banking and government
communities.
SENATOR MENARD said she appreciated that this could benefit the
state's field of technology, which would be beneficial to the
economy. She asked who makes up the board members since he wants
to increase it from five to seven members.
MR. DAVIS replied that the expansion of the AIDEA board was
passed by the legislature last year, but it has recently been
implemented. Previously, it had three government members
(commissioners) and two public members; it now has two public
members - the commissioner of DCCED and the commissioner of DOR
- joined by five private members. It's working very well.
CHAIR EGAN asked if he wanted to talk about the proposed
amendment.
MR. DAVIS deferred to Ms. Shubert.
2:33:54 PM
STACY SHUBERT, Director, Government Relations and Public
Affairs, Alaska Housing Finance Corporation (AHFC), thanked them
for the opportunity for introducing the conceptual amendment
that would allow for AHFC to create a subsidiary corporation as
well. Currently, more than 7,000 families are on the wait list
for AHFC rental assistance statewide, clearly a difficult issue.
AHFC's mission is to provide Alaskans access to safe, quality
and affordable housing. Currently, they are unable to become a
development partner with private entities in the acquisition,
creation and development of affordable housing and they
understand that nearly $4 million is available through federal
funds. With the creation of a subsidiary corporation such as
this, that could be leveraged to create additional affordable
housing in Alaska. That is what they hope the amendment
accomplishes.
CHAIR EGAN thanked everyone for their comments and said HB 119
would be held for the amendment to be added.
2:35:39 PM
Finding no further business to come before the committee, Chair
Egan adjourned the meeting at 2:35 p.m.
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