Legislature(1993 - 1994)
03/23/1993 01:36 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 55
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective date."
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS - AMENDMENTS
CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR discussed the Governors
amendment to the Department of Military and Veterans
Affairs' FY 94 operating budget (copy on file). She
explained that the amendment would reduce the Hazardous
Materials Response component to conform to the budget amount
in the Department of Environmental Conservation Response
Fund. The amendment would also centralize accounting
functions.
Co-Chair Larson MOVED to ADOPT, the Governor's Amendment.
There being NO OBJECTION, it was so ordered.
Representative Foster MOVED to Adopt Amendment MVA-1.
JEFF MORRISON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
explained that Amendment MVA-1 would allow the Department
two additional preventative maintenance cycles. Most
manufactures recommend at least four preventative
maintenance cycles a year. Each maintenance cycle costs
approximately $140.0 thousand dollars.
Representative Foster MOVED to AMEND, Amendment MVA-1, to
delete "$240.0 thousand dollars" and insert "$140.0 thousand
dollars" (copy on file). He stated that one cycle would be
added instead of two. Representative Hanley noted that the
amendment should also be AMENDED to delete "$5,200.9 million
dollars" and insert "$5340.9 million dollars."
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Representative Martin asked if regional personnel from other
departments could perform maintenance. Mr. Morrison
observed that the Department of Military and Veterans
Affairs is instituting a pilot project in Bethel.
There being NO OBJECTION, Amendment MVA-1 was Amended.
Representative Foster MOVED to Adopt Amendment MVA-1, as
AMENDED. Representative Martin OBJECTED. A roll call vote
was taken on the motion.
IN FAVOR: Foster, Grussendorf, Hoffman, Brown, Navarre
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
The MOTION FAILED (5-6).
Representative Foster MOVED to Adopt Amendment MVA-2, $270.0
thousand dollars to fund the Veterans Death Gratuity (copy
on file). Mr. Morrison observed that federal veterans
receive $350.0 hundred dollars. He estimated 20 percent of
Alaskan veterans would receive the federal grant. Mr.
Morrison thought that there will be a $90.0 thousand dollar
shortfall in the FY 94 Operating Budget.
Representative Navarre questioned whether the State is under
obligation to fund the death gratuity. Mr. Morrison did not
feel the State is under obligation to fund the gratuity.
REPRESENTATIVE WILLIS read written remarks in support of
Amendment MVA-2 (Attachment 2).
Co-Chair Larson stated that he has been advised that the
gratuity would not be paid after the appropriation is
depleted. Representative Hoffman felt that legislation
should be introduced to change statutes regarding the death
gratuity.
Members discussed the state's responsibility to fund the
gratuity. Representative Martin noted that other unfunded
programs remain in the statutes. Representative Hoffman
asked if a supplemental request will follow underfunding.
Co-Chair Larson agreed that the Department could submit a
supplemental.
Co-Chair Larson discussed transferring funding from the
Veterans Death Gratuity to the Veterans Services component.
Representative Navarre asked if it is the Committee's
intention to introduce legislation to repeal the death
gratuity if Amendment MVA-2 fails. Co-Chair Larson stated
that he would interpret a failure to fund the gratuity as
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the Committee's intention to repeal the gratuity.
Representative Martin did not agree with Co-Chair Larson's
interpretation.
Co-Chair Larson reiterated the motion to adopt MVA-2. A
roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (4-7).
Co-Chair Larson MOVED to increase the Veterans Services
component #421 by $100.0 thousand dollars. Representative
Brown clarified that the funding would be in the contractual
line. Mr. Morrison discussed potential services that could
be adopted with the increased funding. There being NO
OBJECTION, it was so ordered.
DEPARTMENT OF REVENUE
COMMISSIONER DARREL J. REXWINKEL discussed the Governor's
proposed amendments to the Department of Revenue's FY 94
operating budget (copy on file). He summarized the
Governor's amendment. The amendment would:
* Restore 5 PFNs to the Income and Excise Audit
Division;
* Restore $297.0 thousand dollar to the Income and
Excise Audit Division;
* Restore 4 PCNs to the Oil and Gas Audit Division;
* Restore $338.0 thousand dollars to the Oil and Gas
Audit Division;
* The total request is $3,380.0 million dollars;
(Tape Change, HFC 93-55, Side 1)
* Funding for Oil and Litigation contained in the
front section of HB 55 will be reduced by $149.0
thousand dollars.
Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
103, Amusement and Gaming Tax, <$35,0 thousand dollars> into
CSHB 50 (FIN) (copy on file). There being NO OBJECTION, it
was so ordered.
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Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
104, Aviation Fuel Tax, <$30.0 thousand dollars> into CSHB
50 (FIN)(copy on file). There being NO OBJECTION, it was so
ordered.
Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
106, Liquor License Tax, $10.0 thousand dollars into CSHB 50
(FIN) (copy on file). There being NO OBJECTION, it was so
ordered.
Commissioner Rexwinkel stated that the Governor's amendments
reflect actual numbers collected for taxes in FY 93.
Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
107, Fisheries Tax, $3,700.0 million dollars into CSHB 50
(FIN) (copy on file). There being NO OBJECTION, it was so
ordered.
TRACY MCGILL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE explained that the Department
anticipates that the municipal share for the Fisheries Tax
will be $16 million dollars. Members discussed the
Fisheries Tax.
Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
111, Child Support Enforcement (copy on file). Ms. McGill
clarified that there Department needs the appropriation to
match federal funds. There being NO OBJECTION, it was so
ordered.
Co-Chair Larson referred to the Governor's amendment for the
Department of Revenue component 113, Income and Excise
Audit, $297.0 thousand dollars into CSHB 50 (FIN) (copy on
file). Commissioner Rexwinkel reiterated that the amendment
restores five positions. He spoke in support of the
amendment. He asserted that each position will bring $1
million dollars to the state in the form of collected tax.
He emphasized the importance of addressing the backlog of
cases.
Co-Chair Larson noted that Amendment REV-4 addresses the
Governor's amendment for component 113 (copy on file). Ms.
McGill reviewed Amendment REV-4. She stated that the
amendment will adopt the Governor's amendments for
components 113 and 115 and the Subcommittee's reduction of
$114.8 thousand dollars. Commissioner Rexwinkel explained
amendment REV-4.
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Representative Brown spoke in support of additional funding
for the Income and Excise Audit Division and the Oil and Gas
Audit Division. She noted that the Subcommittee's budget
would bring these Divisions below the FY 93 level. She
stressed that the Divisions maintain oversight of taxpayers.
She asserted that some taxes are not being monitored at the
current funding level.
Commissioner Rexwinkel explained the Governor's budget for
the Divisions of Oil and Gas Audit and Income and Excise
Audit.
Members discussed the Governor's amendments for the
Department of Revenue components 113, 115, 1854 (Oil and Gas
Litigation Audit Front Section $149.5 thousand dollars>
(copy on file). Co-Chair Larson MOVED to ADOPT and
INCORPORATE the Governor's amendment for the Department of
Revenue component 113, 115 and 1854 into CSHB 50 (FIN).
Representative Martin OBJECTED. A roll call vote was taken
on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, MacLean,
Larson
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault
The MOTION PASSED (6-5).
Amendment REV-4 was WITHDRAWN.
Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
125, Administrative Services into CSHB 50 (FIN) (copy on
file). Commissioner Rexwinkel explained that the amendment
reclasses a PPT to PFT. There being NO OBJECTION, it was so
ordered.
Co-Chair Larson MOVED to ADOPT and INCORPORATE the
Governor's amendment for the Department of Revenue component
1883, Gaming, $686.4 thousand dollars into CSHB 50 (FIN)
(copy on file). Representative Navarre noted that the
position being transferred out of the Department of Commerce
and Economic Development is $681.4 thousand dollars. Ms.
McGill clarified that an additional $5.0 thousand dollars
will be appropriated to the Department of Revenue. There
being NO OBJECTION, it was so ordered.
Co-Chair Larson noted corrections to Amendments REV-1, REV-2
and REV-3 (copy on file).
Co-Chair Larson MOVED to ADOPT and INCORPORATE Amendment
REV-1, $2.0 thousand dollars for the Alcoholic Beverage
Control Board travel, into CSHB 50 (FIN) (copy on file).
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Representative Martin OBJECTED. Commissioner Rexwinkel
spoke in support of Amendment REV-1. He noted that the
Board is mandated by statute to conduct hearings around the
state. Representative Brown did not feel that
teleconference hearings were a viable alternative to travel.
She noted that the Board's budget has been previously
reduced.
Representative Martin discussed the need to redeem frequent
flyer mileage now given to employees. A roll call vote was
taken on the motion to adopt Amendment REV-1.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Larson
OPPOSED: Hanley, Martin, Parnell, Therriault, Foster
The MOTION PASSED (6-5).
Co-Chair Larson MOVED to ADOPT and INCORPORATE Amendment
REV-2, $18.1 thousand dollars for travel, Treasury
Management, into CSHB 50 (FIN) (copy on file).
Representative Martin OBJECTED. Representative Brown noted
that there has been a 10 percent travel reduction to this
component. She observed that the Board is new. She
stressed the Board's need for training.
(Tape Change, HFC 93-55, Side 2)
A roll call vote was taken on the motion to adopt Amendment
REV-2.
IN FAVOR: Navarre, Parnell, Brown, Grussendorf, Hanley,
Larson
OPPOSED: Therriault, Foster, Hoffman, Martin, MacLean
The MOTION PASSED (6-5).
Co-Chair Larson MOVED to ADOPT and INCORPORATE Amendment
REV-3, $2.2 thousand dollars for oil and gas tax case review
travel, into CSHB 50 (FIN) (copy on file). Representative
Martin OBJECTED. A roll call vote was taken on the motion.
IN FAVOR: Parnell, Brown, Grussendorf, Larson
OPPOSED: Therriault, Foster, Hanley, Hoffman, Martin,
Navarre, MacLean
The MOTION FAILED (4-7).
Amendments REV-4 and REV-5 were WITHDRAWN (copies on file).
Representative Brown discussed Amendment REV-6 (copy on
file). She noted that REV-6 would restore the $114.8
thousand dollars to the front section of HB 55 to maintain
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the Divisions of Oil and Gas and Excise and Income Audit at
the FY 93 level. Commissioner Rexwinkel stressed that the
Department needs additional funding to address the backlog
of tax audit cases. He observed that the Department has
cases dating to 1976. Representative Brown MOVED to ADOPT
and INCORPORATE Amendment REV-6. A roll call vote was taken
on the motion to adopt Amendment REV-6.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
The MOTION FAILED (4-6).
Representative Grussendorf discussed Amendment REV-7 (copy
on file). He explained that the amendment would restore
Child Support Enforcement field offices in Juneau and
Fairbanks. He stressed the need to retain field offices.
Representative Grussendorf MOVED to ADOPT and INCORPORATE
Amendment REV-7 into CSHB 50 (FIN). Representative Martin
OBJECTED. He asserted that the positions do not carry
caseloads. A roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (4-7).
Amendment REV-8 was WITHDRAWN (copy on file).
Representative Brown MOVED to AMEND Amendment REV-9 to
$200.0 as an increment to the contractual services line of
the Oil and Gas Audit Division. Representative Martin
OBJECTED. Representative Brown spoke in support of
Amendment REV-9. Commissioner Rexwinkel clarified that
there is a three year statute of limitation for filing
assessments. There is a six year statute of limitation for
resolving assessment issues. Amendment REV-9 was HELD OPEN.
HB 55 was HELD in Committee.
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