Legislature(1995 - 1996)
05/02/1996 09:05 AM Senate STA
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SENATE STATE AFFAIRS COMMITTEE
May 2, 1996
9:05 a.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice-Chairman
Senator Loren Leman
Senator Jim Duncan
Senator Dave Donley
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 198(STA)
"An Act relating to absences from the state for purposes of
eligibility for permanent fund dividends to care for a terminally
ill parent, spouse, sibling, child, or stepchild; to care for a
parent, spouse, sibling, child, or stepchild with a critical
life-threatening illness whose treatment plan, as recommended by
the attending physician, requires travel outside the state for
treatment at a medical specialty complex; and to settle the estate
of a deceased parent, spouse, sibling, child, or stepchild; and
providing for an effective date."
HOUSE BILL NO. 490
"An Act relating to grants and other financial assistance
authorized or made by the Alaska Science and Technology Foundation
for the BIDCO assistance program."
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 63
"An Act relating to special request licenses depicting the sport of
dog mushing."
HOUSE CONCURRENT RESOLUTION NO. 25 am
Declaring May 15, 1996, 381st Intelligence Squadron Logistics
Division Day.
HOUSE JOINT RESOLUTION NO. 61
Opposing the proposed changes in the functions of the federal
Office of Veterans Affairs in Anchorage.
SENATE CS FOR CS FOR HOUSE BILL NO. 359(L&C)
"An Act relating to the appointment and confirmation process for
members of certain boards, commissions, and similar bodies;
relating to terms of certain appointees; and providing for an
effective date."
CS FOR HOUSE BILL NO. 249(L&C)
"An Act authorizing the McGrath Ice Classic."
CS FOR HOUSE JOINT RESOLUTION NO. 20(STA)
Relating to unfunded federal mandates and the Conference of the
States.
PREVIOUS SENATE COMMITTEE ACTION
HB 198 - No previous Senate committee action.
HB 490 - No previous Senate committee action.
HB 63 - No previous Senate committee action.
HCR 25 - No previous Senate committee action.
HJR 61 - No previous Senate committee action.
HB 359 - See Labor & Commerce minutes dated 4/9/96 and 4/11/96.
HB 249 - No previous Senate committee action.
HJR 20 - See State Affairs minutes dated 4/6/95.
WITNESS REGISTER
Representative Kim Elton
State Capitol, Juneau, AK 99801-1182¶(907)465-4947
POSITION STATEMENT: prime sponsor of HB 198
Nanci A. Jones, Director
Permanent Fund Dividend Division
Department of Revenue
P.O. Box 110460, Juneau, AK 99811-0460¶(907)465-2323
POSITION STATEMENT: testified on HB 198
Representative Bettye Davis
State Capitol, Juneau, AK 99801-1182¶(907)465-3875
POSITION STATEMENT: prime sponsor of HB 490
Jonathon Sperber, Aide
Representative Bettye Davis
State Capitol, Juneau, AK 99801-1182¶(907)465-3875
POSITION STATEMENT: prime sponsor of HB 490
Jamie Kenworthy, Executive Director
Alaska Science & Technology Foundation
Department of Commerce & Economic Development
4500 Diplomacy Dr., #515, Anchorage, AK 99508-5918¶(907)272-4333
POSITION STATEMENT: supports HB 490
Representative John Davies
State Capitol, Juneau, AK 99801-1182¶(907)465-4457
POSITION STATEMENT: prime sponsor of HB 63
Noelle Brekke, Aide
Representative Pete Kott, Co-Chairman
House Special Committee on Military & Veterans' Affairs
State Capitol, Juneau, AK 99801-1182¶(907)465-3777
POSITION STATEMENT: prime sponsor of HCR 25
Representative Ed Willis
State Capitol, Juneau, AK 99801-1182¶(907)465-2199
POSITION STATEMENT: prime sponsor of HJR 61
Representative Brian Porter
State Capitol, Juneau, AK 99801-1182¶(907)465-4930
POSITION STATEMENT: prime sponsor of HB 359
Lisa McLaren, Aide
Representative Irene Nicholia
State Capitol, Juneau, AK 99801-1182¶(907)465-4527
POSITION STATEMENT: prime sponsor of HB 249
Dennis Poshard, Director
Charitable Gaming Division
Department of Revenue
P.O. Box 110400, Juneau, AK 99811-0400¶(907)465-2229
POSITION STATEMENT: testified on HB 249
Eleanor Roser, Aide
Representative Ramona Barnes
State Capitol, Juneau, AK 99801-1182¶(907)465-3438
POSITION STATEMENT: prime sponsor of HJR 20
ACTION NARRATIVE
HB 198 PFD ALLOWABLE ABSENCES
TAPE 96-32, SIDE A
Number 001
CHAIRMAN SHARP called the Senate State Affairs Committee to order
at 9:05 a.m. and brought up HB 198 as the first order of business
before the committee. He called the prime sponsor to testify.
Number 033
REPRESENTATIVE KIM ELTON, prime sponsor of HB 198, stated the bill
would provide an excused absence for receiving a permanent fund
dividend under three circumstances:
1) to take care of a terminally ill immediate family member;
2) to settle the estate of an immediate family member;
3) to care for a family member with a life-threatening illness.
Number 060
NANCI A. JONES, Director, Permanent Fund Dividend Division,
Department of Revenue, stated the division does not oppose HB 198,
but stated allowable absences do cause problems. Ms. Jones gave a
handout to committee members showing that current allowable
absences are selective and exclusionary, they are inequitable,
there are millions of dollars leaving the state, allowances are
very expensive for the division to administer, and there are
constant requests for additional allowable absences. For instance,
there is no provision for allowing people in private enterprise to
leave the state to work on products that will benefit Alaska.
There is no allowable absence for VISTA Volunteers, but Peace Corps
Volunteers are allowed absence from the state - what is the
difference between those two organizations? There is no allowable
absence for organized missionary work. Allowable absences are
exclusionary and do not address the big picture. Ms. Jones
informed committee members that on the second page of her handout
is a breakdown of the dividends which were distributed outside the
state, the largest percentage of which were sent to students. Her
purpose in testifying this morning is to inform committee members
that providing for additional selective and exclusionary allowable
absences only addresses the needs of a few of our state's
residents, instead of looking at the entire picture.
Number 113
SENATOR RANDY PHILLIPS stated he has an amendment that would allow
absence for athletes participating in sanctioned sports.
CHAIRMAN SHARP asked if athletes are gone for more than 180 days.
SENATOR RANDY PHILLIPS replied yes. He offered the amendment.
Amendment by Senator Phillips:
Page 1, line 6:
Delete "and"
Page 1, line 7, following "stepchild;":
Insert "and to participate on certain amateur athletic teams;"
Page 2, line 19:
Delete "or"
Page 2, following line 23:
Insert a new subparagraph to read:
"(K) to participate on an amateur athletic
team as evidenced by the international federation or
national governing body for that sport;"
CHAIRMAN SHARP stated he is concerned about the perception that
there are more serious things out there that should be exempted.
SENATOR DONLEY stated this amendment would require a title change.
SENATOR RANDY PHILLIPS replied he didn't think it would.
SENATOR DONLEY stated it would require a title change, which would
require a resolution which would have to pass by a 2/3 vote. It
would also open the bill wide up for any other proposals.
CHAIRMAN SHARP stated he is not inclined to open the title up or
try to fight a title battle on the floor at this late date. He
asked the secretary to call the role.
Senator Phillip's amendment failed by a vote of 1 yea, 3 nays, and
1 abstention. Voting in favor of the amendment is Senator
Phillips. Voting against the amendment are Senators Leman, Duncan,
and Donley. Abstaining from the vote is Senator Sharp.
SENATOR DUNCAN made a motion to discharge HB 198 from the Senate
State Affairs Committee with individual recommendations.
Number 200
CHAIRMAN SHARP, hearing no objection, stated HB 198 was discharged
from the Senate State Affairs Committee.
HB 490 FINANCIAL ASSISTANCE TO BIDCO
CHAIRMAN SHARP brought up HB 490 as the next order of business
before the Senate State Affairs Committee. He called the prime
sponsor to testify.
Number 210
REPRESENTATIVE BETTYE DAVIS, prime sponsor of HB 490, stated her
aide would give testimony on the bill.
JONATHON SPERBER, Aide to Representative Bettye Davis, prime
sponsor of HB 490, stated Jamie Kenworthy, Executive Director of
the Alaska Science & Technology Foundation, should be available on
teleconference to answer questions. BIDCOs are business investment
development companies. They are middle risk private sector
financial institutions which provide emerging small and medium
sized businesses with financing, management support, and technical
assistance. The primary goal of BIDCOs is to establish private
sector businesses that create jobs.
CHAIRMAN SHARP asked if there is a limit on the amount of the
financial assistance.
REPRESENTATIVE BETTYE DAVIS stated $3,000,000.00 is needed to fund
BIDCO.
CHAIRMAN SHARP asked if present statute sets a limit of
$3,000,000.00.
REPRESENTATIVE BETTYE DAVIS stated there is nothing in statute
limiting how much can go into BIDCOs eventually. They need at
least $3,000,000.00, but more than that could go into it.
CHAIRMAN SHARP stated he will pose that question to Mr. Kenworthy.
He does not want to give them a blank check.
MR. SPERBER stated that HB 490 would allow ASTF to supplement the
originally funded amount of $1,000,000.00 with earnings from that
money, or other earnings ASTF would have. So the fiscal note truly
is zero for HB 490. HB 490 would simply provide the mechanism for
ASTF to provide certain earnings to BIDCOs.
CHAIRMAN SHARP asked if that would occur through legislative
appropriation.
SENATOR DUNCAN noted that the fiscal note prepared by Mr. Kenworthy
indicates that there is no fiscal impact. He thinks the chairman's
concern is addressed by the fiscal note and the sponsor's
statement.
CHAIRMAN SHARP stated he was under the impression that Section 8,
extending the financial assistance, was the most important part.
REPRESENTATIVE BETTYE DAVIS stated if HB 490 is not passed, the
authority to do that will sunset at the end of this year.
CHAIRMAN SHARP just wants to ensure that HB 490 will not allow ASTF
to give money to BIDCO without legislative appropriation.
REPRESENTATIVE BETTYE DAVIS thought the legislature did not want to
appropriate any money to it.
CHAIRMAN SHARP clarified that they did not want to appropriate
money to any specific BIDCO projects. But he has a problem with
adding money to the foundation without legislative appropriation.
REPRESENTATIVE BETTYE DAVIS stated she thought as long as ASTF
could come up with funds from interest-earning money that they
have, that would be acceptable to the legislature, because they
don't have any money to appropriate. If she thought they had money
to appropriate to BIDCOs, she would have gone that route. She
thinks this in an important economic development issue.
CHAIRMAN SHARP asked Representative Davis how many applications
have been approved.
REPRESENTATIVE BETTYE DAVIS stated none have been approved, because
the program is not funded.
Number 305
CHAIRMAN SHARP asked if a 50/50 match is still required from the
private sector.
REPRESENTATIVE BETTYE DAVIS responded yes.
CHAIRMAN SHARP stated he doesn't mind giving ASTF the authority to
replace the $2,000,000.00 that was vetoed.
REPRESENTATIVE BETTYE DAVIS replied that's all they want to do. We
wouldn't be authorizing anything more than that, because they don't
need it. Once that money is in the private sector, we would not
appropriate any more money to the BIDCOs.
Number 230
CHAIRMAN SHARP stated he is hesitant to not restrict the amount of
money ASTF could put into the BIDCO foundation.
REPRESENTATIVE BETTYE DAVIS stated the legislature does not
restrict ASTF in any other uses of their money.
CHAIRMAN SHARP stated he does not want to give ASTF a blank check.
You can only stretch $11,000,000.00 so far (the amount of money
ASTF has). The appropriation by ASTF into BIDCOs should be made by
legislative approval.
REPRESENTATIVE BETTYE DAVIS understands the chairman's concern, but
she cannot imagine ASTF would do that. ASTF has made a commitment
to all of the programs they're involved with. She doesn't think
ASTF would give any more preference to the BIDCOs than it does to
any of the other proposals they get.
CHAIRMAN SHARP asked Representative Davis if she would object to
the addition of language to HB 490 that would limit ASTF to
contributing $2,000,000.00 to the BIDCOs.
Number 370
REPRESENTATIVE BETTYE DAVIS stated the only problem she would have
with that is the late date at which that amendment would be added
might keep HB 490 from passing due to time constraints. She
suggested passing legislation addressing the chairman's concern
during the next legislature.
SENATOR DONLEY suggested adding a provision stating ASTF has to get
legislative approval if they want to give more than a certain
amount of money to BIDCOs.
REPRESENTATIVE BETTYE DAVIS asked if that could be done in a letter
of intent.
CHAIRMAN SHARP stated he does not believe in legislative intent
when it comes to millions of dollars.
SENATOR DUNCAN thinks it's important to keep HB 490 moving. He
asked the chairman to clarify that he is concerned ASTF might give
more than $2,000,000.00 to BIDCOs.
CHAIRMAN SHARP replied that is correct. He is concerned there are
no limits set out in HB 490.
SENATOR DUNCAN asked Representative Davis if she thought language
limiting the amount of money ASTF could give to BIDCOs would cause
a problem in the House.
REPRESENTATIVE BETTYE DAVIS did not think that provision would
cause a problem, but she is worried that since there are only seven
days before adjournment there might not be enough time for the
House to concur in Senate amendments to the bill.
SENATOR DUNCAN and SENATOR RANDY PHILLIPS think there should be
enough time for a concurrence vote.
Number 420
CHAIRMAN SHARP stated there is strong support for HB 490 in the
Rules Committee.
REPRESENTATIVE BETTYE DAVIS does not think the committee needs to
be concerned about the ASTF appropriating more than $2,000,000.00
to the BIDCOs, because that would throw all their other obligations
off.
Number 460
JAMIE KENWORTHY, Executive Director, Alaska Science & Technology
Foundation, Department of Commerce & Economic Development,
testifying from Anchorage, stated ASTF has grant authority, but
there is nothing in statute, without HB 490, that would give
authority for establishment of this kind of risk-capital capability
in Alaska. If ASTF misuses its' authority, it will have to answer
to the legislature during the next session.
CHAIRMAN SHARP asked Mr. Kenworthy if he believes that under HB
490, the ASTF would still have to come back to the legislature with
their capital budget to appropriate additional money to the BIDCO,
over and above what ASTF has right now.
MR. KENWORTHY replied no.
CHAIRMAN SHARP asked how much authority ASTF currently has.
MR. KENWORTHY stated if HB 490 passes, ASTF will have the
authority. They would take funds out of their interest earnings,
and if the funds were leveraged by the private sector, they would
establish a BIDCO. They would not need additional funds
appropriated. It is unusual to have an agency director, himself,
asking that funds be taken out of his direct authority and put into
the private sector where it will be leveraged.
CHAIRMAN SHARP asked if BIDCO will have a separate boards.
MR. KENWORTHY replied BIDCO will have its' own board. There will
be a loan agreement between ASTF and the BIDCO, but the BIDCO will
make the decisions on where to invest the money and the terms of
those investments.
CHAIRMAN SHARP asked Mr. Kenworthy if ASTF feels it has the
authority to add money up to $3,000,000.00, or unlimited.
Number 490
MR. KENWORTHY responded if HB 490 passes, ASTF would have the
authority to add unlimited funds. But he is trying to be very
clear to the legislature regarding the size of the commitment ASTF
would make, so there is no misunderstanding about what ASTF is
doing. A BIDCO needs about $6,000,000.00 to be viable.
CHAIRMAN SHARP asked if all the other projects ASTF is involved in
were approved by the legislature.
MR. KENWORTHY replied the appropriation for the agriculture project
for the last two years is a direct earmark by the legislature of
ASTF earnings. ASTF is authorized to fund other projects through
grants, however they need the legislative exemption because of the
statutory provision that they cannot spend more than half their
funds in grants of over $100,000.00 a year. HB 490 is needed to
give ASTF the authority to fund BIDCOs.
CHAIRMAN SHARP asked if there were dollar limits placed on all
other ASTF projects.
MR. KENWORTHY responded the language in the legislation relating to
the Kodiak Launch Facility was "up to $5,000,000.00".
Number 515
CHAIRMAN SHARP thinks HB 490 will have difficulty passing the
Senate without a limit on the amount ASTF is allowed to appropriate
to BIDCOs.
MR. KENWORTHY would not have a problem with the legislature
limiting the amount ASTF would be allowed to contribute to BIDCOs.
Number 533
SENATOR LEMAN made a motion to adopt a conceptual amendment that
would limit ASTF to contributing no more than a total of
$3,000,000.00 to BIDCO.
CHAIRMAN SHARP, hearing no objection, stated the amendment was
adopted.
SENATOR RANDY PHILLIPS made a motion to discharge HB 490 from the
Senate State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, stated HB 490 was discharged
from the Senate State Affairs Committee.
HB 63 DOG MUSHING VANITY PLATES
CHAIRMAN SHARP brought up HB 63 as the next order of business
before the Senate State Affairs Committee.
Number 555
REPRESENTATIVE JOHN DAVIES, prime sponsor of HB 63, stated he
introduced the bill at the request at some people in the Fairbanks
area who are involved in dog mushing. It arose out of concern over
some of the attacks against the sport from out of state. There
would be a $50.00 fee for these plates, with any excess revenue
authorized to be appropriated to statewide dog mushing programs.
HB 63 would allow Alaskans to show support for the state sport, and
give non-mushers an opportunity to bolster the mushing community.
He asked for support of HB 63.
SENATOR LEMAN noted that 155 sets of license plates will have to be
purchased to break even on the cost of producing them. He assumed
there would be at least that many people interested in purchasing
those plates.
REPRESENTATIVE DAVIES hopes closer to 1000 sets of license plates
will be sold.
Number 587
SENATOR RANDY PHILLIPS made a motion to discharge HB 63 from the
Senate State Affairs Committee with individual recommendations.
TAPE 96-32, SIDE B
CHAIRMAN SHARP, hearing no objection, stated HB 63 was discharged
from the Senate State Affairs Committee.
HCR 25 381ST INTELL.SQUADRON DIVISION DAY
CHAIRMAN SHARP brought up HCR 25 as the next order of business
before the Senate State Affairs Committee.
Number 585
NOELLE BREKKE, Aide to Representative Pete Kott, Co-Chairman of the
House Special Committee on Military & Veterans' Affairs, prime
sponsor of HCR 25, stated the resolution would allow May 15, 1996
to be designated as the 381st Intelligence Squadron Logistics Day.
This unit is based at Elmendorf Air Force Base, and has earned many
merit awards. She asked for support of HCR 25.
Number 574
SENATOR LEMAN made a motion to discharge HCR 25 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, stated HCR 25 was discharged
from the Senate State Affairs Committee.
HJR 61 ANCHORAGE VETERANS AFFAIRS OFFICE
CHAIRMAN SHARP brought up HJR 61 as the next order of business
before the Senate State Affairs Committee.
Number 570
REPRESENTATIVE ED WILLIS, prime sponsor of HJR 61, stated the
resolution would oppose changes in the functions of the federal
Veterans' Administration Office in Anchorage. The federal VA is
proposing downsizing the Anchorage office by transferring several
major functions to Reno, Nevada and Phoenix, Arizona. The
resolution gives our congressional delegation another tool with
which to fight this downsizing. He urged the committee to support
HJR 61.
SENATOR RANDY PHILLIPS made a motion to discharge HJR 61 from the
Senate State Affairs Committee with individual recommendations.
Number 545
CHAIRMAN SHARP, hearing no objection, stated HJR 61 was discharged
from the Senate State Affairs Committee.
HB 359 APPOINTMENT PROCESS FOR BDS & COMM'NS
CHAIRMAN SHARP brought up HB 359 as the next order of business
before the Senate State Affairs Committee.
Number 540
REPRESENTATIVE BRIAN PORTER, prime sponsor of HB 359, stated the
bill was crafted in conjunction with the Governor's Office, so
their needs have been met. The bill would provide a way to avoid
the problem that occurred two years ago with an appointment to APUC
by a departing governor. This bill is not intended to give an
advantage or disadvantage to any particular governor, it will just
set the standard for appointments in the future.
SENATOR DONLEY made a motion to discharge HB 359 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, stated HB 359 was discharged
from the Senate State Affairs Committee.
HB 249 MCGRATH KUSKOKWIM RIVER ICE CLASSIC
CHAIRMAN SHARP brought up HB 249 as the next order of business
before the Senate State Affairs Committee.
Number 465
LISA MCLAREN, Aide to Representative Irene Nicholia, prime sponsor
of HB 249, stated the bill would authorize the Kuskokwim
Broadcasting Corporation to hold an annual ice classic. The
McGrath Volunteer Fire Department and Kuskokwim Valley Rescue Squad
would also benefit from the ice classic.
SENATOR DONLEY asked if they would be allowed to sell these tickets
over the air.
DENNIS POSHARD, Director, Charitable Gaming Division, Department of
Revenue, replied that up to twelve hours a year of on-air time is
allowed for public broadcast stations to sell charitable gaming
tickets.
SENATOR DUNCAN made a motion to discharge HB 249 from the Senate
State Affairs Committee with individual recommendations.
Number 445
CHAIRMAN SHARP, hearing no objection, stated HB 249 was discharged
from the Senate State Affairs Committee.
HJR 20 SUPPORT 10TH AMENDMENT ENFORCEMENT ACT
CHAIRMAN SHARP brought up HJR 20 as the next order of business
before the Senate State Affairs Committee.
Number 435
ELEANOR ROSER, Aide to Representative Ramona Barnes, prime sponsor
of HJR 20, stated the resolution would request support for the 10th
amendment, which would eliminate further federal mandates and other
types of federalism.
SENATOR DONLEY asked if they could add the title change to the
title change resolution, so as not to inadvertently open up HJR 20.
SENATOR LEMAN stated if the House changes HJR 20, it would come
back to the Senate anyway, so the Senate would have the last say on
any changes the House makes. He suggested passing HJR 20, and then
passing the title change resolution.
SENATOR DONLEY asked if they couldn't just remove the concern by
adding the new title of HJR 20 to the title change resolution.
Number 400
CHAIRMAN SHARP asked Ms. Roser if she would have objection to that.
MS. ROSER responded she would have no objection to that.
CHAIRMAN SHARP asked if there was any objection to stating the new
title of HJR 20 in the title change resolution.
[None was voiced.]
SENATOR LEMAN made a motion to adopt the Senate State Affairs
Committee substitute for HJR 20.
Number 380
CHAIRMAN SHARP, hearing no objection, stated the committee
substitute was adopted.
SENATOR DONLEY made a motion to discharge HJR 20 from the Senate
State Affairs Committee with individual recommendations.
CHAIRMAN SHARP, hearing no objection, stated HJR 20 was discharged
from the Senate State Affairs Committee.
SENATOR RANDY PHILLIPS stated for the record that HJR 20 is a
complete rewrite from the original legislation.
Number 365
MS. ROSER stated she will talk to Representative Barnes about a
press release regarding the change of subject of HJR 20.
CHAIRMAN SHARP stated the resolution for the title change will have
to be adopted in the Rules Committee. The title of the title
change resolution will include the new title of HJR 20.
Number 335
CHAIRMAN SHARP adjourned the Senate State Affairs Committee meeting
at 10:16 a.m.
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