Legislature(1995 - 1996)
04/25/1995 04:38 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
April 25, 1995
4:38 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice-Chairman
Senator Loren Leman
MEMBERS ABSENT
Senator Jim Duncan
Senator Dave Donley
COMMITTEE CALENDAR
SENATE BILL NO. 143
"An Act ratifying an agreement between the Alaska Housing Finance
Corporation and the commissioner of revenue and making certain
pledges to obligees of the corporation regarding that agreement;
relating to the authorization for and 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; and providing for an effective date."
SENATE BILL NO. 144
"An Act relating to the authorization for and the issuance of
revenue bonds by the University of Alaska to pay for the costs of
repair and rehabilitation of buildings and other structures,
excluding student housing and dormitories, of the University of
Alaska; expanding the uses of the Alaska debt retirement fund to
allow financing of the repair and rehabilitation of University of
Alaska facilities; and providing for an effective date."
CS FOR HOUSE BILL NO. 13(STA)
"An Act requiring persons filing for nomination for, or campaigning
for election for, state elective office, persons authorized to make
or incur political campaign expenditures before formally filing for
nomination to state elective office, and groups acting on behalf of
any of these, to file certain election campaign finance disclosure
reports."
CS FOR HOUSE BILL NO. 44(FIN) am
"An Act relating to reporting by permittees, licensees, and
vendors; relating to municipal regulation of charitable gaming;
providing that a political group is not a qualified organization
for purposes of charitable gaming, other than raffles, and relating
to those raffles; relating to identification to the public of each
permittee that will benefit from the sale of each pull-tab series
and each bingo session; providing that the proceeds from charitable
gaming, other than certain raffles conducted by a political
organization, may not be contributed to a political party or other
political group; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 143 - See State Affairs minutes dated 4/20/95.
SB 144 - See State Affairs minutes dated 4/20/95.
HB 13 - No previous senate committee action.
HB 44 - No previous senate committee action.
WITNESS REGISTER
Dan Fauske, Executive Director
Alaska Housing Finance Corporation
Department of Revenue
P.O. Box 101020, Anchorage, AK 99510-1020¶561-1900
POSITION STATEMENT: testified on SB 143
Bill Howe, Deputy Commissioner
Department of Revenue
P.O. Box 110405, Juneau, AK 99811-0405¶465-4880
POSITION STATEMENT: testified on SB 143 & SB 144
Wendy Redman
University of Alaska
P.O. Box 155000, Fairbanks, AK 99775¶474-7311
POSITION STATEMENT: supports SB 143 & SB 144
Jeff Logan, Aide to Representative Green
State Capitol, Juneau, Alaska, 99801-1182¶465-4931
POSITION STATEMENT: prime sponsor of HB 13
Brooke Miles, Administrator
Alaska Public Offices Commission
P.O. Box 110222, Juneau, AK 99811-0222¶465-4864
POSITION STATEMENT: supports HB 13
Tom Anderson, Aide to Representative Martin
State Capitol, Juneau, Alaska, 99801-1182¶465-3783
POSITION STATEMENT: prime sponsor of HB 44
ACTION NARRATIVE
SSTA - 4/25/95
TAPE 95-20, SIDE A
Number 001
SB 143 AHFC TRANSFERS TO GENERAL FUND; BONDS
CHAIRMAN SHARP calls the Senate State Affairs Committee to order at
4:38 p.m. and brings up SB 143 as the first order of business
before the committee. The chairman calls the first witness.
Number 020
DAN FAUSKE, Executive Director, Alaska Housing Finance Corporation,
testifying from Anchorage, thinks SB 143 represents a significant
accomplishment, in that it would establish a prudent, manageable
transfer of cash from AHFC to the state. It will also enable the
corporation to issue bonds for University of Alaska deferred
maintenance. Mr. Fauske notes he has submitted to the committee a
press release from Standard & Poors (S&P) in support of the
arrangement set out in SB 143.
Number 095
BILL HOWE, Deputy Commissioner, Department of Revenue, distributes
to committee members a draft copy of the agreement between the
Commissioner of the Department of Revenue and AHFC. This agreement
lists the proposed amounts of money that will be transferred from
AHFC to the state. The amounts are: $70,000,000 in FY 1996, and
$50,000,000 for FY 1997-FY 2000. Mr. Howe states AHFC and the
Department of Revenue both feel this is a fair agreement.
MR. HOWE informs the committee that if this agreement is approved,
S&P will remove AHFC from a credit watch.
Number 155
SENATOR RANDY PHILLIPS asks if other scenarios have been explored.
Number 160
MR. FAUSKE replies other amounts and scenarios were discussed. But
this was the agreement which was reviewed most extensively.
SENATOR RANDY PHILLIPS asked if S&P is looking for stability.
MR. FAUSKE responds that they are looking for stability and
predictability.
SENATOR RANDY PHILLIPS thinks it would be predictable for the
legislature to take $235,000,000 right now, and not take anything
else in the future. Are there any other scenarios S&P would
approve?
MR. HOWE believes S&P does not want to see more than the total
amount the corporation earns per year taken out in any one year.
However, he thinks there is some flexibility as to how much comes
out when.
Number 215
SENATOR RANDY PHILLIPS asks what happens if AHFC's bond rating is
downgraded.
MR. FAUSKE responds that if the bond rating went from AA to A, it
would cost an additional $13,200,000 over the life of the bond.
SENATOR RANDY PHILLIPS asked what the impact would be to individual
borrowers.
Number 235
MR. FAUSKE replies it would raise mortgage rates by a half to a
full percent.
Number 240
MR. HOWE adds that there are several larger risks seen by the
administration than having the bond rating drop from AA to A.
First, is the risk of ratings being withdrawn on outstanding bonds.
That would have the effect of turning them into junk bonds.
Secondly, the administration is concerned that AHFC will be unable
to float new bonds.
Number 265
CHAIRMAN SHARP thinks the legislature will have to give assurances
regarding how much money will be withdrawn, and when it will be
withdrawn. Hopefully we can arrive at a solution that will offer
stability, while still returning some money to the general fund.
Number 295
WENDY REDMAN, University of Alaska, urges passage of SB 143.
Number 320
SENATOR LEMAN makes a motion to discharge SB 143 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, orders SB 143 released from
committee with individual recommendations.
SSTA - 4/25/95
Number 325
SB 144 FINANCING REPAIR/REHAB OF U AK BLDGS
SENATOR SHARP brings up SB 144 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 330
WENDY REDMAN, University of Alaska, informs the committee that SB
144 is a back-up measure, in case money is not available next year
for deferred maintenance.
Number 355
BILL HOWE, Deputy Commissioner, Department of Revenue, states SB
144 is predicated on the ability of AHFC to float bonds.
CHAIRMAN SHARP asks if SB 144 is simply authorizing next year's
needs.
[Mr. Howe nods "Yes."]
Number 365
SENATOR LEMAN makes a motion to discharge SB 144 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, orders SB 144 released from
committee with individual recommendations.
SSTA - 4/25/95
Number 370
HB 13 CAMPAIGN FILINGS & DISCLOSURES
SENATOR SHARP brings up HB 13 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
JEFF LOGAN, Aide to Representative Green, prime sponsor of HB 13,
relays information contained in the sponsor statement. Reasons for
campaign disclosure include an informed electorate, deterrence of
corruption and the avoidance of the appearance of corruption, and
detecting violations of contribution limits. HB 13 would require
candidates whose name is not going to be on the primary election
ballot to make campaign disclosure reports, just as all other
candidates are required to do. The sponsor has worked with APOC on
this legislation, and APOC supports this legislation. There is a
zero fiscal note. HB 13 passed the house with no opposition.
Number 415
BROOKE MILES, Administrator, Alaska Public Offices Commission,
states APOC has worked with the sponsor of HB 13 and supports the
bill. HB 13 will not have a fiscal impact. This bill would
require complete disclosure.
SENATOR LEMAN makes a motion to discharge HB 13 from the Senate
State Affairs Committee with individual recommendations.
Number 430
CHAIRMAN SHARP, hearing no objection, orders HB 13 released from
committee with individual recommendations.
SSTA - 4/25/95
Number 434
HB 44 GAMING PROCEEDS/DEFINE CHARITABLE ORG'NS
SENATOR SHARP brings up HB 44 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 440
TOM ANDERSON, Aide to Representative Martin, prime sponsor of HB
44, states that Representative Martin is begrudgingly pushing on
with the bill; he believes it has been gutted, with it's intent and
effectiveness severely dampened. The original intent was to
eliminate any monies from charitable gaming being contributed to
political candidates; but currently, that is not how the bill
reads. We are just looking at removing permits from political
groups. Political groups would only be allowed to hold raffles.
Number 476
SENATOR LEMAN makes a motion to adopt amendment #1 to HB 44.
SENATOR RANDY PHILLIPS asks to be shown as a co-sponsor on
amendment #1.
Amendment #1 by Leman and Phillips:
Page 4, lines 24-26:
Delete "a political party as defined under AS 15.60, or to an
organization or club organized under or formally affiliated with a
political party"
Insert "(i) a political party as defined under AS 15.60;
(ii) an organization or club organized under or formally affiliated
with a political party;
(iii) a political group as defined under AS 15.13.130, including a
group that seeks to influence the opinions of voters concerning the
election of a candidate for public office, a constitutional
amendment, an initiative, or another ballot measure"
Page 5, line 3:
Delete "or"
Insert ","
Page 5, line 4, after "party,":
Insert "to a political group as defined under AS 15.60, to a
group as defined under AS 15.30.130,"
Number 483
CHAIRMAN SHARP, hearing no objection, states amendment #1 to HB 44
has been adopted.
Number 485
CHAIRMAN LEMAN makes a motion to adopt amendment #2 to HB 44.
Amendment #2 by Leman:
Page 3, lines 4-6:
Delete "permittees to a political(A) candidate or the
candidate's campaign organization; or(B) group;"
Insert "permittees, licensees, and vendors to a political
candidate; reports must include all donations or contributions made
from the last date covered by any previous report to three days
before the due date of the report and shall be made at the
following times: (A) 30 days before an election involving the
candidate; (B) one week before an election involving the candidate;
(C) 10 days after an election involving the candidate; and (D)
February 15 for donations and contributions made that were not
reported during the previous year; the department shall, for a
period of time set by the department, suspend or revoke the permit,
license, or vendor registration of a permittee, licensee, or vendor
that fails to report at the times and in the manner provided in
this paragraph;"
Number 490
CHAIRMAN SHARP, hearing no objection, states amendment #2 to HB 44
has been adopted.
Number 492
SENATOR LEMAN makes a motion to adopt amendment #3 to HB 44.
Amendment #3 by Leman (conceptual amendment):
Add language requiring donating entities to notify candidates if
any of their donations come from gaming sources.
Number 500
CHAIRMAN SHARP, hearing no objection, states amendment #3 to HB 44
has been adopted.
SENATOR LEMAN makes a motion to discharge HB 44 from the Senate
State Affairs Committee with individual recommendations.
Number 505
CHAIRMAN SHARP, hearing no objection, orders HB 44 released from
committee with individual recommendations.
Number 508
CHAIRMAN SHARP adjourns the Senate State Affairs Committee meeting
at 5:15 p.m.
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