SB 96 UNFUNDED MANDATES ON MUNICIPALITIES  CHAIRMAN TORGERSON called the Senate Community & Regional Affairs Committee meeting to order at 1:40 p.m. He brought SB 96 before the committee and directed attention to proposed amendments to CSSB 96(CRA) , which was adopted as a working document at the March 22, 1995 meeting. Number 025 SENATOR KELLY moved the adoption of the following amendment: Amendment No. 3 Page 3, line 9: Delete "new" Page 3, lines 14 & 15: Delete ", and each regulation or other administrative order adopted after January 1, 1996," Page 3, line 17, after "division.": Insert "Each regulation or administrative order adopted under the authority of a bill enacted after January 1, 1996, that applies to municipalities must include findings regarding its effect on municipalities prepared by the Department of Community and Regional Affairs." Page 4, line 21, through page 5, line : Delete all material JOSH FINK, aide to Senator Kelly, addressing Amendment No. 3, explained that the current subsection (b) in Section 2 requires that Legislative Finance prepare findings on any bill, regulation or executive order that effects municipalities. The amendment provides that Legislative Finance prepare a finding on a bill, but on a regulation or executive order, the Department of Community & Regional Affairs would prepare the finding. As a result of this change, Section 3, the fiscal note section, was deleted from the committee substitute. Hearing no objection to the adoption of Amendment No. 3, SENATOR TORGERSON stated the motion carried. Number 058 JOSH FINK explained that Amendment No. 4 would delete the second half of the definition of "new funding" because it is not a workable definition and it is already covered by the mechanism set up in Section 2. SENATOR KELLY moved the adopted of Amendment No. 4: Amendment No. 4 Page 4, lines 26 - 27: Delete "it does not include transfers or reductions in another appropriation;" Hearing no objection, SENATOR TORGERSON stated the motion carried. Number 077 SENATOR TORGERSON, speaking to Amendment No. 5 explained he believes the first part of the amendment is necessary to further give explanation to the meaning of subsection (a) in Section 2. The second part of the amendment is clarifying language. SENATOR KELLY moved the adoption of the following Amendment No. 5: Amendment No. 5 Page 3, line 13: Delete "revoked" and insert "inoperative in its effect upon a municipality until significant state funds are available to pay the operational costs directly required for the actual performance of the activity, service or program." Page 4, line 30: After "$20,000 in" insert new language to read: "each of" Hearing no objection to the adoption of Amendment No. 5, SENATOR TORGERSON stated the motion carried. Number 185 SENATOR TORGERSON opened the hearing to public comment. CHARLES MCKEE, testifying from Anchorage, spoke to his financial duress because of the state having subservient action over the municipalities, as well as the bond debt that the residents of all municipalities are suffering under. Number 196 SCOTT BRANDT-ERICHSEN, representing the Municipality of Anchorage, stated he was present to respond to questions and further stated that the municipality agrees with the amendments to the bill. Number 215 JEROME SELBY, Mayor the Kodiak Island Borough, voiced their support for CSSB 96(CRA). They think it is positive legislation that creates a process whereby the people who live in the state at least can be assured that there will be thoughtful consideration given to them and the costs of government as bills are considered by the legislature in the future. Number 240 SCOTT STERLING, a member of the Mat-Su Borough Assembly, said although the assembly has not officially adopted a position on CSSB 96(CRA), he believes that it has their support. One way it effects his borough is that DEC regulations regarding operation of water and sewer systems require them to obey those regulations as does Anchorage or Fairbanks or the larger municipalities, and this tends to drive their costs up quite high. This legislation would help in a situation like that. Number 268 TOM ARMOUR, Administrator, City of Pelican, stated the city council has not adopted a position on CSSB 96(CRA), but he believes it will go a long way in helping administrators run their communities, as well as improving the legislature's credibility. Number 280 KEVIN RITCHIE, Executive Director, Alaska Municipal League, stated the League strongly supports the legislation as amended and urges it passage out of committee. Number 290 There being no further testimony on SB 96, SENATOR TORGERSON asked for the will of the committee. SENATOR R. PHILLIPS moved that CSSB 96(CRA) and its accompanying fiscal note be passed out of committee with individual recommendations. Hearing no objection, it was so ordered