Legislature(1997 - 1998)
03/30/1998 03:20 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 400 - DEPT OF COMMUNITY & ECONOMIC DEVELOPMENT Number 0035 CHAIRMAN ROKEBERG announced the committee's first order of business was HB 400, "An Act combining parts of the Department of Commerce and Economic Development and parts of the Department of Community and Regional Affairs by transferring some of their duties to a new Department of Commerce and Rural Development; transferring some of the duties of the Department of Commerce and Economic Development and the Department of Community and Regional Affairs to other existing agencies; eliminating the Department of Commerce and Economic Development and the Department of Community and Regional Affairs; relating to the Department of Commerce and Rural Development; adjusting the membership of certain multi-member bodies to reflect the transfer of duties among departments and the elimination of departments; and providing for an effective date." Number 0060 REPRESENTATIVE JOHN COWDERY made a motion to adopt the proposed committee substitute for HB 400, labeled 0-LS1375\F, Lauterbach, dated 3/23/98. Number 0090 CHAIRMAN ROKEBERG asked if there were any objections. Hearing none, Version F was before the committee. REPRESENTATIVE COWDERY explained Version F as chairman of the subcommittee on HB 400, stating the subcommittee had met with the bill sponsor and addressed a number of the committee's concerns. He noted a primary concern was the $1.6 million fiscal note attached to the original bill version by the Department of Commerce and Economic Development (DCED). After the subcommittee's discussions with the Administration and DCED regarding the staff relocations necessary under the bill, the bill sponsor worked with Representative Cowdery's office to develop what they believe is "a more realistic financial view of the merger." Representative Cowdery said the subcommittee's findings are expressed in the fiscal notes before the committee; it concluded the total cost of the necessary relocations would be $200,000 or less. Representative Cowdery said he believes the long-term savings of up to $1 million per year offered by the merger clearly justifies the $200,000 overhead. Representative Cowdery stated the subcommittee believes Version F, the proposed committee substitute, is ready to be moved to the next committee of referral. Number 0203 REPRESENTATIVE GENE KUBINA confirmed the fiscal note approved by Representative Kohring is the fiscal note the committee is dealing with. Number 0220 [IT APPEARS CHAIRMAN ROKEBERG CALLED A BRIEF AT EASE AT THIS POINT FROM TAPED TESTIMONY BUT THIS WAS NOT INDICATED IN THE TAPE LOG NOTES] CHAIRMAN ROKEBERG indicated the fiscal note Representative Kubina referred to was before the committee, noting HB 400 had a further referral to the House Finance Standing Committee. REPRESENTATIVE KUBINA said he would like to see the department's fiscal note, noting he did not have a copy. CHAIRMAN ROKEBERG requested Representative Kubina be provided a copy of the original departmental fiscal note. Number 0269 CHAIRMAN ROKEBERG called a brief at ease at 3:23 p.m. The committee came back to order at 3:24 p.m. [NOTE: THE TAPE WAS RESTARTED SLIGHTLY AFTER THE COMMITTEE CAME BACK TO ORDER] CHAIRMAN ROKEBERG stated "... had a fiscal note from the department. Mr. Bush, you signed up to testify. Would you like to explain this fiscal note, please?" Number 0270 JEFF BUSH, Deputy Commissioner, Department of Commerce and Economic Development, came forward to testify. He said the department had updated the fiscal note based on the work draft of the proposed committee substitute which had been provided to the department. Mr. Bush said the changes were fairly minor, and some were based on technical changes. A significant change in the proposed committee substitute is that "international trade" would go to the Office of the Governor, rather remaining in the new department. Mr. Bush said that reflects a slight savings because the four people doing international trade would not have to be relocated with the new department, they would remain with the governor's office, going to the Bank of America building [5 West Seventh Avenue in Anchorage, to be renamed the Robert B. Atwood Building]. He stated DCED has also provided worksheets attached to the fiscal note, pages 6 and 7, answering some of the earlier questions about how the moving costs were calculated. Mr. Bush indicated the calculation by the Department of Administration of the $6,100 per person moving cost had been explained in a letter already provided to the committee. He said page 7 of the fiscal note showed how the $125,000 data processing costs for the transfer were calculated. He noted the $22,500 cost for the new child care office and $23,500 for the new Job Training Partnership Office (JTPO). Mr. Bush explained the two bottom sections showed the two options of switching the Department of Community and Regional Affairs (DCRA) to DCED's computer system DCED (DCED Option 1, $74,220) or vice versa (DCED Option 2, $77,500). He indicated these were relatively rough estimates and noted the total data processing expenses would be approximately $125,000. Mr. Bush noted one less administrative service staff person would be moved due to an error in the original calculations, and he indicated the rest of the changes were fairly small and of that nature. Number 0484 CHAIRMAN ROKEBERG recommended that the committee move both fiscal notes, asking if there were any questions for Mr. Bush. Hearing none, Chairman Rokeberg stated the public hearing was closed and asked if there was any discussion among the committee members. He commented, "I'd like to -- (indisc.) fiscal notes." Noting the subcommittee's work and discussions in this area, Chairman Rokeberg said he considered the $1.6 million moving costs, 260 positions, to be absolutely contrary to the understanding of the committee and the instructions from the subcommittee on the bill. He stated he would say the sponsor's fiscal note has greater credibility than the department's fiscal note because the subcommittee's work indicates there is a minimal need for any physical relocation of office premises, the nature of the department's fiscal note. Chairman Rokeberg commented he thought that would stand up and indicated the House Finance Standing Committee could address it with appropriate intent language. He said he didn't think these movements were necessary, noting much of the moving would take place over a period of years as lease expirations naturally occurred. He said the subcommittee testimony tapes were available as part of the public record [House Labor and Commerce Standing Committee subcommittee on HB 400 met March 21, 1998]. Chairman Rokeberg stated he would like a motion on HB 400. Number 0617 REPRESENTATIVE COWDERY made a motion to move the proposed committee substitute for HB 400, Version F, labeled 0-LS1375\F, Lauterbach, dated 3/23/98, to the next committee of referral with the accompanying two fiscal notes and individual recommendations. CHAIRMAN ROKEBERG asked if there were any objections. REPRESENTATIVE TOM BRICE objected to the motion. He stated all HB 400 does is make small government into big, noting that was the reason for his objection. CHAIRMAN ROKEBERG asked if there were further comments. Number 0688 CHAIRMAN ROKEBERG called a brief at ease at 3:29 p.m. The committee came back to order at 3:30 p.m. REPRESENTATIVE KUBINA stated he would not object to moving a bill with fiscal implications to the House Finance Standing Committee, indicating the issue might as well be decided in that committee. CHAIRMAN ROKEBERG asked Representative Brice if he wanted to maintain his objection. REPRESENTATIVE BRICE answered in the affirmative. A roll call vote was taken. Representatives Rokeberg, Cowdery, Sanders, Ryan and Kubina voted in favor of moving the proposed committee substitute. Representative Brice voted against it. Representative Hudson was absent. Therefore, CSHB 400(L&C) moved from the House Labor and Commerce Standing Committee by a vote of 5-1.
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