MINUTES SENATE FINANCE COMMITTEE 6 May 1996 6:30 P.M. TAPES SFC-96, #116, Sides 1 and 2 SFC-96, #117, Side 1 CALL TO ORDER Senator Rick Halford, co-chair, convened the meeting at approximately 6:30 P.M. PRESENT In addition to co-chairman Halford, co-chairman Frank, Senators Sharp, Zharoff, Rieger and Phillips were present when the meeting convened. Senator Donley arrived soon thereafter. Also Attending: Commissioner John T. Shively, Department of Natural Resources; Keith Laufer, Assistant Attorney General, Civil Division (Anchorage), Department of Law; D. Randy Simmons, Development and Finance Manager, AIDEA; Ed Flanagan, Deputy Commissioner, Department of Labor; Annalee McConnell, Director, Office of Management and Budget; Tom Williams, staff aide to Senator Steve Frank; Nanci A. Jones, Director, Permanent Fund Dividend Division, Department of Revenue; fiscal analysts, Legislative Finance Division; and aides to committee members. SUMMARY INFORMATION CS FOR HOUSE BILL NO. 548(WTR) "An Act authorizing the amendment of Northstar Unit oil and gas leases between the State of Alaska and BP Exploration (Alaska) Inc.; and providing for an effective date." Commissioner John T. Shively, Department of Natural Resources and Ed Flanagan, Department of Labor were invited to join the committee and answered questions for the committee. Senator Rieger moved amendment #1 and it was adopted contingent on no title change with a conceptual amendment. If the conceptual amendment was not acceptable amendment #1 would not be included in finance version SCS. Senator Frank moved amendment #14 and it was adopted. Senator Zharoff moved SCS CSHB 548(FIN) and without objection it was reported out with individual recommendations and zero fiscal note from Department of Natural Resources/Oil and Gas; $431.1 Department of Natural Resources/Pipeline Coordinator. SENATE CS FOR CS FOR HOUSE BILL NO. 220(FIN) "An Act relating to the duties of the commissioner of commerce and economic development concerning the Alaska Tourism Marketing Council; relating to the per diem and travel expenses of the council's board of directors; relating to the powers and duties of the council; extending the termination date of the council; and providing for an effective date. Senator Halford introduced the bill and Senator Rieger commented regarding ASMI. Senator Halford said he would move the bill with a one year extension. Senator Sharp moved SCS CSHB 220(FIN) and without objection it was passed out with individual recommendations and zero fiscal note from Department of Commerce and Economic Development/ATM. SENATE CS FOR CS FOR HOUSE BILL NO. 526(FIN) "An Act relating to the financing authority, programs, operations, and projects of the Alaska Industrial Development and Export Authority; providing an exemption from the procurement code for certain projects of the authority; and providing for an effective date." D. Randy Simmons, AIDEA was invited to join the committee and testified on behalf of the bill. Keith Laufer, Assistant A.G. was also invited to join the committee and answered questions from members. Senator Phillips moved original language on page 5, lines 8 - 10 and without objection it was adopted as amendment #1. Senator Donley moved amendment #3 and it failed. Senator Sharp moved amendment #2 with deleted section 3 and without objection it was adopted. Senator Zharoff's conceptual amendment to section 3 failed. Senator Sharp moved SCS CSHB 526(FIN) and without objection it was reported out with individual recommendations and zero fiscal note, Department of Commerce and Economic Development. CS FOR HOUSE BILL NO. 4(STA)(title am) "An Act allowing, for the purposes of permanent fund dividend eligibility, an individual to accompany, as the spouse or minor or disabled dependent, another eligible resident who is absent for vocational, professional, or other specific education for which a comparable program is not reasonably available in the state, for secondary or postsecondary education, for military service, for medical treatment, for service in the Congress or in the Peace Corps, or for other reasons that the commissioner of revenue may establish by regulation; requiring, for the purposes of permanent fund dividend eligibility, an individual who is not physically present in the state to maintain and demonstrate at all times an intent to return to the state to remain permanently; relating to the eligibility for 1992, 1993, and 1994 permanent f u n d dividends of certain spouses and dependents of eligible applicants; relating to appeal periods for certain 1994 permanent fund dividends; and providing for an effective date." Tom Williams, staff aide to Senator Steve Frank testified on behalf of the bill. Senator Sharp moved the work draft version and without objection it was adopted. Nanci A. Jones, Director PFDD also testified and answered questions of the committee members. Without objection Senator Halford's conceptual amendment to include sunset of January 1, 1998 was adopted. Senator Sharp moved SCS CSHB 4(FIN) and without objection it was reported out with individual recommendations and $14.8 fiscal note from Department of Revenue/PFD. ADJOURNMENT Senator Halford recessed at 9:30 p.m. to call of the chair.