Legislature(1993 - 1994)
04/02/1993 02:00 PM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATOR TAYLOR introduced SB 99 (FINANCIAL ADMINISTRATION OF STATE GOVERNMENT) sponsored at the request of the Governor and said one person would be testifying on the teleconference. KENNY LEAF, Judiciary Committee Aide, explained the bill under consideration, CS FOR SENATE BILL NO. 99(L&C), would affect some of the departments. He said a number of persons wished to speak to the amendments and suggested beginning with JUANITA HENSLEY, Chief of Driver Services for the Division of Motor Vehicles. MS. HENSLEY explained the Division of Motor Vehicles has several sections of this bill beginning with page 14, Sections 50 through 58, all pertaining to motor vehicles. She proposed to outline each section. Number 417 Section 50 - is a technical amendment which would allow the DMV to retain $100 thousand in state revenue by selling the entire motor vehicle file, which is currently done. Section 51 - does the same thing as Section 50, but would delete the word, Vehicle Register, for clarification. Section 52 - would allow the department to design special license plates that depict Alaska flora and fauna for a $30 fee. They are projecting revenue of $300 thousand. Section 53 - clarifies the handicapped plates as defined in 23 C.R.F. 1235.2 of federal law, which uses "a disability that limits or impairs the ability to walk." This would bring in approximately $16.8 thousand to the state. SENATOR LITTLE clarified that some persons who currently receive free handicapped plates will now have to pay for them. MS. HENSLEY referred to the federal definition to explain the person must be mobility impaired, and she explained the extent of disability allowed for a free handicapped license plate. Section 54 - clarifies a court decision that has prompted the change to require a dealer to affix two plates to the vehicle owned by the dealer. SENATOR TAYLOR asked about the court case, and MS. HENSLEY explained it was a case brought against a dealer on the Kenai Peninsula. Because the statute was vague, the dealer won, so this would clarify the statute. Section 55 - would remove the division's authority to issue titles on mobile homes. DMV considers mobile homes real estate property and treated as such. She outlined the current problems in issuing titles. There would also be a modest saving in money. Number 499 SENATOR TAYLOR questioned how they could tell the difference when they come in to register - what about travel trailers that are used for living quarters. How does the department know the use of the trailer? MS. HENSLEY explained she was referring to those mobile homes that required a permit to move along the highway, while a travel trailer is registerable and tagged. A mobile home just has a title. Section 56 - clarifies an exemption for senior citizens for one free registration a year, and she described some abuses of the exemption. Section 57 - would allow the department to charge a $10 registration fee if the person comes into the office to register a vehicle, when they have the opportunity to do so by mail. This fee could be waived for good cause. She figured this could bring in an additional $2 million to state revenue. MS. HENSLEY explained that Senate Finance has based the DMV budget on the passage of this bill and how it would affect the operation of the division. In addition she discussed the waiver provisions. Section 58 - clarifies that a company is required to register their vehicle as a commercial vehicle instead of a private vehicle. She estimated $400 thousand in revenue in improperly registered vehicles. Section 59 - is a section added to the bill by the Revisor of Statutes to clarify the deletion of a mobile home from the tax schedule. Section 61 - sets the definition for a mobile home. SENATOR LITTLE had some questions about the list defining the mobile homes, and MS. HENSLEY reviewed the list. She also explained Section 70 repealed the mobile home statutes. SENATOR TAYLOR asked for any additional questions from the committee and invited BRENT MCGEE, Director for the Office of Public Advocacy, to testify. MR. MCGEE thought Sections 33, 34, and 35 were relatively straight forward and would adopt regulations that would allow the office to charge a fee for public guardian services, based on the ability of the ward or protected person to pay for the guardian services. Before the fee schedule was adopted there would be comments and suggestions from affected interest groups and institutions. SENATOR LITTLE wanted to know from whom the Office of Public Advocacy would collect the fee. MR. MCGEE explained their clients are wards or protected persons, or conservatees, which are people for whom the court has ordered services. He detailed the list of services that might be provided to their clients. Number 586 SENATOR LITTLE asked whether most of these individuals were indigent. MR. MCGEE said the clients weren't necessarily so, and he explained the court procedure for deciding the competency of a person to manage their lives. He explained they were usually mentally ill, developmentally disabled, or suffer from some age related disability. He also explained the court only appointed a guardian when the court finds there is no friend, relative, person, or non-profit corporation able to accept those responsibilities. He claimed the Office of Public Advocacy was the last in statutory priority, and it was not usual for clients to have substantial resources. SENATOR TAYLOR thanked MR. MCGEE for his testimony and called on GERON BRUCE from the Department of Fish and Game. MR. BRUCE directed attention to Section 44 of SB 99 which deals with the Department of Fish and Game, and he referred to a position paper from the department. He reviewed the summary of the department's concerns with this section of the bill and a proposed amendment. TAPE 93-38, SIDE B Number 001 MR. GERON summarized the department's objections to the procedures through which hunting and fishing licenses are sold in the state - exclusively through vendors. Under current law, at the time of sale the vendor is entitled to retain 5% of the value of the transaction, while the remainder of the money and the receipts go to the department. On a quarterly basis the vendors are then entitled to receive one dollar of additional compensation, or $50, which ever is greater, based on the records they have supplied. MR. GERON explained this functioned for the Department of Fish and Game as a financial control and accounting mechanism, to enable the department to audit the records for errors. He further explained the value of the quarterly compensation was to provide an enforcement and correcting mechanism to the department for resolution of remittances that are delinquent or incorrectly calculated. MR. GERON explained how the proposed amendment would enable the department to continue their auditing practices, a copy of which was at the end of the position paper. He did praise Section 44 for changing the funding source for this additional compensation from a general fund appropriation to a Fish and Game fund appropriation, with a savings to the general fund of about $500 thousand. SENATOR TAYLOR moved to adopt the following amendment to Section 44 to read as follows: Section 44. AS 16.05.390(d) is amended to read: (d) Compensation provided by this section shall be paid from appropriations made to the department [FROM THE GENERAL FUND]. In answer to a question by SENATOR LITTLE, SENATOR TAYLOR explained the placement of the amendment on page 13, lines 6 through 12. MR. GERON further explained the language in current Section 44 would remain in statute and subsection (d) would be added to the end of the section. SENATOR TAYLOR checked to be sure everyone understood the amendment. SENATOR TAYLOR moved the Amendment #1 from committee with no objections. Next, SENATOR TAYLOR called on DONALD STUDY, Director of the Division of Labor Standards & Safety for the Department of Labor. MR. STUDY said he was here to address the sections, plus some amendments, for the Department of Labor. Section 45 - would allow the department to adopt regulations establishing fees for administering special inspector examinations and for processing applications for special boiler and pressure vessel inspector commissions. He explained these functions were currently carried out without charge. He said the proposed application fees of $25 would generate approximately $400 in annual receipts to the general fund. SENATOR HALFORD questioned putting fees in regulation, and MR. GERON explained that was correct. He also explained there were few special inspectors, mainly from insurance companies. Section 46 - would shift the set time period for certificates of fitness for plumbers and electricians for a one or three year certificate to a two year certificate. He explained the section would not have a physical impact other than stabilizing revenues in the department, which are in support of the division and presently in the FY94 budget. Section 47 - would establish fees for an application examination and for duplicates of certificates of fitness for plumbers and electricians. It would also increase fees for the issuance, or renewal of a certificate. A $50 fee would generate approximately $23.8 thousand and reflects the cost of providing services. He described the remainder of the fee schedule, which is also in the FY94 operating budget. Section 49 - raises the fee for an employment agent's license from $10 to $100, which is valid for two years. He said this fee had not been increased since 1953. SENATOR LITTLE clarified that biennial was every other year. Number 094 MR. STUDY defended the employment license fee change and said there were eight licensed employment agencies operating in the state. He explained the permitting system kept the fly-by-nighters from coming into the state to take advantage of it. MR. STUDY next addressed the proposed amendments, which he said had been approved by the Senate Labor and Commerce Committee Chairman, SENATOR KELLY. He said these amendments would allow the phase in of the biennial licenses over a three period to stabilize the annual revenue stream. SENATOR TAYLOR said they would be taken one at a time. SENATOR TAYLOR moved to adopt Amendment #1, on page 13, lines 30 & 31, page 14, and lines 1 through 10, to provide for a two year term for certificates of fitness. There was an objection from SENATOR DONLEY, who thought the time and fees should be set in statute rather than by regulation. MR. STUDY explained the phasing in of a two year certificate so all of the revenue doesn't come in one year, with no revenue the following year, and to match more with the budget. SENATOR DONLEY said an amendment should be written to do as MR. STUDY described, not one that gives them more power than they need. SENATOR TAYLOR clarified the amendment was amending the section rather than replacing it, and he reviewed the changes. He asked why the days were taken out, and MR. STUDY referred the question to ARBE WILLIAMS, Special Assistant to the Department of Labor, for the answer. MS. WILLIAMS described working with the Senate Labor and Commerce Committee on the language for Sections 46 and 47, and explained they were only asking for a phase in period. She thought that had been accomplished by regulations, and she reviewed the legislation from this perspective. SENATOR TAYLOR agreed with SENATOR DONLEY'S assessment of the sections, and he articulated his concerns on the time frame. MS. WILLIAMS said they would be happy to implement SENATOR DONLEY'S suggestion. SENATOR TAYLOR read Section 49, which he thought might answer their concerns. MS. WILLIAMS said Section 49 was not related to the certificates of fitness program, but she was assured that drafting could work out the objections. CHERYL FRASCA, Division Director for the Division of Budget Review, asked the committee members to look at Section 72, which relates to transition language for the Alcoholic Beverage Control Board. She suggested a similar section to clarify the problems with Sections 46 through 48. SENATOR TAYLOR proposed to adopt Amendment #2, a conceptual amendment which would provide a similar transition to Section 72 to provide the Department of Labor with the opportunity to issue two year certificates. Without objections, so ordered. Number 185 SENATOR TAYLOR asked MR. STUDY to read his next amendment, Amendment #3, and he provided the following: Add a new section 47 to read *Sec. 47 AS 18.62.030 is repealed and reenacted to read: Sec. FEES. (a) An applicant shall pay a non-refundable application and examination fee of $50 when applying for a certificate of fitness; (b) an applicant for a trainee or journeyman level certificate of fitness shall pay a biennial fee of $160, to be prorated if the certificate is issued for a shorter period, for the issuance of a certificate or a renewal certificate; (c) an applicant shall pay a fee of $25 for the issuance of a duplicate certificate of fitness. MR. STUDY explained how the amendment would be referenced by other legislation for a master trades person. There was a general discussion about the different levels of applicants and the licensing fees for each. SENATOR TAYLOR moved to adopt Amendment #3 as outlined by MR. STUDY. Without objections, so ordered. SENATOR TAYLOR asked MS. FRASCA if she wanted to present additional testimony. She said only if the committee wanted to go through the other sections of the bill, and she listed police standards as well DNR park fees. SENATOR LITTLE said she was interested in parks fees, which sparked a discussion of the fees, and SENATOR TAYLOR asked MS. FRASCA to review those sections. MS. FRASCA explained when the bill was proposed it included a section that would authorize the Division of Parks to set by regulation fees that involved day use of parks and park facilities such as visitor centers. It would be to recover some of the cost of developed sites. MS. FRASCA said the Labor and Commerce Committee changed that to set the fee amount in statute, as opposed to regulation. MS. FRASCA reviewed the provisions of Sections 65, 66, and 67, and she referred to page 20, line 16, where the Labor and commerce Committee inserted the word, overnight. SENATOR LITTLE questioned where this would be. RAGA ELIM, Special Assistant to the Department of Resources, explained the idea was to be able to assess a nominal fee to the users of developed facilities for day activities. He gave two reasons for the removal of the word, overnight, because it would reduce any revenue that could be generated, and DNR does not want people using these facilities overnight. SENATOR LITTLE moved to adopt Amendment #4 which would remove "overnight" on page 20, line 16. Without objections, so ordered. Number 253 SENATOR DONLEY asked if the fees were mandated, such as $1 for a visitor center or an historic site? MR. ELIM said it provides the authorization, and he explained the intent of the original bill which would have allowed the promulgation of fees using public comment. SENATOR TAYLOR asked if there were any other problems with the bill, and the response was none. He explained it was not his intent to move the bill today, but he wanted to allow more time for a reflection on the changes. MS. FRASCA suggested a sectional analysis in their bill packet that might be more user friendly.
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