MINUTES SENATE FINANCE COMMITTEE April 11, 2000 9:05 AM TAPES SFC-00 # 82, Side A CALL TO ORDER Co-Chair John Torgerson convened the meeting at approximately 9:05 AM PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell, Senator Al Adams, Senator Lyda Green, Senator Pete Kelly, Senator Loren Leman, Senator Gary Wilken, Senator Donley, Senator Phillips. Also Attending: SENATOR LEMAN; WENDY LINDSKOOG, Alaska Railroad Corporation; GREG CASHEN, Community Development Quota Specialist, Department of Community and Economic Development. Attending via Teleconference: From Anchorage: JOHN TETPON. SUMMARY INFORMATION SB 235-APPROVING LAND TRANSFERS FOR RAILROAD The Alaska Railroad Corporation testified. The bill was passed out of Committee. SB 26-FALSE REPORT TO POLICE/HINDER PROSECUTION Senator Leman and the general public testified. The bill was passed out of Committee. SB 240-CHARGE FOR COMMUNITY DEVELOPMENT QUOTA The Department of Community and Economic Development testified. The bill was held in Committee. CS FOR SENATE BILL NO. 235(TRA) "An Act authorizing the exchange of land between the Alaska Railroad Corporation and Eklutna, Inc., between the Alaska Railroad Corporation and the United States Department of the Army and the United States Department of the Air Force, between the Alaska Railroad Corporation and Chugach Alaska Corporation, and between the Alaska Railroad Corporation and the Municipality of Anchorage; authorizing the transfer of land between Alaska Railroad mileposts 133 and 134 from the Alaska Railroad Corporation to certain named individuals; and providing for an effective date." SENATOR LEMAN, as sponsor to this legislation recommended the adoption of the work draft to SB 235, version "1- LS1282\S." He explained that this legislation authorizes land exchanges between the Alaska Railroad, the Air Force and the Army through the base and post at Elmendorf and Fort Richardson, as well as Eklutna, Inc. closer to Eagle River, the Chugach Alaska Corporation, near Seward and the Municipality of Anchorage. He continued that this legislation included a railroad track-straightening project, with the overall goal of maintaining a safer railroad while at the same time implementing upgrades that will reduce the travel time between Anchorage and Wasilla. Senator Leman continued that this project would cost from $45 to $60 million dollars. He noted that the Senate Transportation Committee included a provision in the legislation that provided for the conveyance of slightly over five acres to private landowners in the Chugach area. He pointed out that these individuals would have received this land under federal law, but this legislation would accelerate this transfer. He added that Article 2, on page 4, was the proposed section providing for transfers between the Department of Transportation & Public Facilities and the railroad, primarily for the Potter to Girdwood section improvements including avalanche prevention upgrades. Senator Leman made a motion to adopt SB 235, version "1- LS1282\S as a work draft. Hearing no objection this version was ADOPTED. WENDY LINDSKOOG, Alaska Railroad Corporation went on record to state that the railroad was in favor of SB 235. She added that the railroad would like to commence construction this year. Senator Leman asked if there was some federal legislation that was necessary to authorize these changes as outlined. Ms. Lindskoog confirmed that this was the case and that this federal legislation was moving along. She noted that this legislative appropriation was expected to pass, while the railroad received a very positive vote on Proposition 2 at the municipal level also. Senator Leman made a motion to move SB 235, version "1- LS1282\S" from Committee with individual recommendations and a zero fiscal note from the Alaska Railroad Corporation. Hearing no objection SB 235 was MOVED FROM COMMITTEE. CS FOR SENATE BILL NO. 26(JUD) "An Act relating to hindering prosecution and to providing false information or reports to a peace officer." SENATOR LEMAN voiced his disappointment that the departments affected by this legislation submitted additional fiscal notes. Because of this he agreed to modify this legislation by adding language regarding false information about one's identity. He noted that in doing so, the fiscal notes were reduced. He continued that the Senate Judiciary version made to the original bill was on page 2, line 5 with the addition of language regarding a person's identity. He specified that lines 15 and 16, regarding a false report to the Department of Natural Resources was deleted. Senator Leman made motion to adopt version 1-LS0119\K as a work draft. Hearing no objection this version was ADOPTED. JOHN TETPON testified via teleconference from Anchorage. He asked if this legislation addressed forwarding false information to police, the attorney general, or related law enforcement individuals regarding custody of children. Senator Leman responded that this legislation would only apply if someone gives false information about his or her identity. Senator Leman tried to address Mr. Tetpon's related concerns in an earlier version of this legislation. He then made a motion to move SB 26, version "1-LS0119\K from committee with individual recommendations, along with a zero fiscal note from the Department of Public Safety and a fiscal note in the amount of $26,800 from the Department of Administration. Hearing no objection CSSB 26 (Jud) was MOVED FROM COMMITTEE. CS FOR SENATE BILL NO. 240(L&C) "An Act relating to the establishment of and accounting for an administrative cost charge for the state's role in the community development quota program and to the appropriation of receipts from the charge; and providing for an effective date." GREG CASHEN, Community Development Quota (CDQ) Specialist, Community Development Quota, Department of Community and Economic Development stated that this legislation allowed CDQ groups that participate in this program to pay assessment fees to the state. He continued that the proposed fee schedule has two components, the first being a standard flat amount paid by each group totaling half the state's administrative costs. He noted that the other half, also paid by this group, would be a variable portion of the administrative costs based on the value of this group's fishery quota allocation. He stated that the Department of Community and Economic Development would administer the cost charge added to the statutory list of program receipts subject to separate accounting procedures. He noted that each CDQ group supports this legislation. He outlined the differences of this version versus the companion HB 334. He added that the exemption in the house bill would allow for new CDQ groups into the program without paying fees for up to two years. He cited that this exemption was taken out of the House version, including a $400,000 cap that was deleted as well. Co-Chair Parnell referred to the exemption mentioned by Mr. Cashen and wondered if it was the one noted on page 3, lines 10 - 13. He read this clause and wondered what the policy reason was behind leaving this exemption in place. Mr. Cashen responded that a Northern Alaska constituency put this exemption forth. Senator Adams added that this group was out of Kotzebue, which is trying to start a new CDQ group, which explained this exemption language. Co-Chair Parnell asked if this group needed this exemption from an economic perspective in order to help with start up costs. Senator Adams responded that this group was having a hard time getting started and a federal initiative would be needed in order to change the existing bond situation. Co-Chair Torgerson asked how much money was involved with this exemption. Mr. Cashen responded that this standard portion would total $125,000 divided between six CDQ groups. Co-Chair Torgerson noted that this bill would be set aside, and added that the companion house bill had been amended into another bill on the House floor. He would hold this version in Committee until the House bill catches up to SB 240 in the referral system. SB 240 was HELD IN COMMITTEE. RECESSED Senator Torgerson recessed the meeting at 9:26 AM to the call of the Chair. 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