Legislature(1993 - 1994)
02/09/1993 01:35 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 9, 1993
1:35 P.M.
TAPE HFC 93 - 18, Side 2, #000 - end.
TAPE HFC 93 - 19, Side 1, #000 - #545.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:35 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative
Grussendorf
Representative Hoffman Representative Martin
Representative Parnell Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Ulmer; Kristie Leaf, Deputy Director of
Boards and Commissions, Office of the Governor; John
Gaguine, Assistant Attorney General, General Civic Section,
Department of Law; Donald G. Study, CSP, Director, Labor
Standards & Safety Division, Department of Labor; Rod
Mourant, Special Assistant to the Commissioner, Department
of Revenue; Don Clocksin, Esq., Wagstaff, Pope and Clocksin,
Anchorage, Alaska; Charlot Thickstun, Director, Division of
Elections, Office of the Lieutenant Governor.
SUMMARY INFORMATION
EO 82 Transferring administration of the charitable
gaming program from the Department of Commerce and
Economic Development to the Department of
Revenue.
EO 82 was reported out of Committee with a "do
pass" recommendation and two zero fiscal notes by
the Department of Revenue dated 1/11/93 and
the Department of Commerce and Economic
Development dated 1/11/93.
EO 83 Merging the State Geographic Board and Historic
Sites Advisory Committee into the Alaska Historical
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Commission in the Department of Natural
Resources.
EO 83 was reported out of Committee with a "do
pass" recommendation and two zero fiscal notes by
the Department of Natural Resources dated 1/11/93
and the Department of Community and Regional
Affairs dated 1/11/93.
EO 85 Moving the bonding program that serves as security
for the collection of wages and payment for raw fish
from the Department of Labor to the Department of
Revenue.
EO 85 was HELD in Committee for further
discussion.
HB 94 An Act making a supplemental appropriation for
costs of elections operations; and providing for an
effective date.
HB 94 was HELD in Committee for further
discussion.
Co-Chair Larson provided the Committee with Attachment #1,
the Cambridge Energy Research Associates (CERA) Contract/Oil
Price Forecasts. The handout was distributed to the
Committee for review for a future meeting.
Co-Chair Larson noted that Commissioner Designee Paul Fuhs,
Department of Commerce and Economic Development, has passed
both the Special Committee on International Trade and
Tourism and the Labor and Commerce Committee with a
unanimous "do confirm" recommendation. Co-Chair Larson
recommended the Committee waive holding a hearing to
confirm, Commissioner Fuhs.
Representative Brown supported waiving the confirmation
hearing. Representative Hanley agreed with Representative
Brown.
Representative Brown MOVED to waive the Finance Committee
confirmation hearing of Paul Fuhs, Commissioner of the
Department of Commerce and Economic Development (DCED).
There being NO OBJECTIONS, the confirmation hearing was
waived.
A roll call vote was taken on the measure:
IN FAVOR: Hoffman, Gurssendorf, Parnell, Hanley,
Larson, MacLean, Brown.
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OPPOSED: 0
Representatives Martin, Foster, Therriault and Navarre were
not present for the vote.
The MOTION PASSED, 7 - 0.
Co-Chair Larson provided the Committee with Attachment #2, a
memorandum from Representative Barnes addressing the
National Petroleum, Reserve-Alaska, account dispute. He
asked the Committee to review the attached information for a
future meeting.
EXECUTIVE ORDER 82
"Transferring administration of the charitable gaming
program from the Department of Commerce and Economic
Development to the Department of Revenue."
Co-Chair Larson noted that the Executive Order would
transfer functions which relate to the regulations of games
of chance and skill from DCED to the Department of Revenue
(DOR). He added, Executive Order 82 is accompanied by two
zero fiscal notes.
Co-Chair MacLean MOVED to report EO 82 out of Committee with
individual recommendations and with the accompanying fiscal
notes. There being NO OBJECTIONS, it was so ordered.
EO 82 was reported out of Committee with a "do pass"
recommendation and with two fiscal notes by the Department
of Revenue dated 1/11/93 and the Department of Commerce and
Economic Development dated 1/11/93.
EXECUTIVE ORDER 83
"Merging the State Geographic Board and Historic Sites
Advisory Committee into the Alaska Historical
Commission in the Department of Natural Resources."
Co-Chair Larson explained that EO 83 would merge the State
Geographic Board and the Historical Site Advisory Committee
into the Alaska Historical Commission. The Commission will
remain in the Department of Natural Resources where the
Historical Site Advisory Committee is currently located.
The purpose of the Executive Order is to:
1. Consolidate the closely related functions;
2. Increase public access;
3. Save money due to fewer members.
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Co-Chair Larson noted that the Executive Order is
accompanied by two zero fiscal notes by the Department of
Community and Regional Affairs (DCRA) and the Department of
Natural Resources (DNR).
KRISTIE LEAF, DEPUTY DIRECTOR OF THE BOARDS AND COMMISSIONS,
OFFICE OF THE GOVERNOR, spoke in support of EO 83. She
stated that the Executive Order (EO) would combine the
Historical Site Advisory Committee into the Alaska
Historical Commission maintaining the Historical Commission
within the Department of Natural Resources. She added there
has been wide support for the consolidation. The functions
and duties would remain the same. Membership would decrease
from twenty-one to nine members. This consolidation would
increase public access and would lower administrative costs.
Co-Chair MacLean questioned the savings of merging the
Commissions. Ms. Leaf pointed out there are two zero fiscal
notes included with the bill. She added that the DCRA's
Commissioner's budget lists a decrease to the proposed FY 94
budget information with the passage of EO 83. Co-Chair
MacLean asked that backup be provided to the Committee.
Representative Brown noted her concern that EO 83 would
exceed statute in an attempt to move employees from a
partially exempt service. She asked if the EO could be
modified. Ms. Leaf commented that the Executive Director
position has been vacant since 1986 and added that the
Department of Law has stated the provision is under the
appropriate executive order authority.
Co-Chair Larson noted EO 83 was accompanied by a House
Resources Letter of Intent. Representative Brown expressed
her concern that the original intention of the Alaska
Statutes would be violated by the Administration's Executive
Order. Ms. Leaf stated that the Administration could not
submit a substitute executive order.
JOHN GAGUINE, ASSISTANT ATTORNEY GENERAL, GENERAL CIVIL
SECTION, DEPARTMENT OF LAW, explained when two or more
entities are merged together, the staffing structure of any
of those entities can be the one adopted in the Executive
Order. In EO 83, of the three entities which are being
merged, only the Historical Commission has a specified
Executive Director. The other commissions note that staff
may be hired and that EO 83 adopts that language.
Representative Brown stated EO 83 would alter the staff
structure specified in the Alaska Statutes. Mr. Gaguine
replied it would merge the three commissions together and
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would not alter the structure of the Historical Sites
Advisory Commission.
Co-Chair MacLean MOVED to report EO 83 out of Committee, yet
noted that it should not be construed as an approval for
other agency transferral functions. Representative Brown
OBJECTED.
A roll call vote was taken on the measure:
IN FAVOR: Grussendorf, Hanley, Parnell,
Therriault, MacLean, Larson.
OPPOSED: Hoffman, Brown.
Representatives Foster, Martin and Navarre were not present
for the vote.
The MOTION PASSED, 6 - 2.
Representative Hanley MOVED the two zero fiscal notes by the
Department of Community and Regional Affairs and the
Department of Natural Resources plus the Letter of Intent
submitted by the House Resources Committee. There being NO
OBJECTIONS, it was so ordered.
EO 83 was reported out of Committee with a "do pass"
recommendation and with two zero fiscal notes by the
Department of Community and Regional Affairs dated 1/11/93
and the Department of Natural Resources dated 1/11/93.
EXECUTIVE ORDER 85
"Moving the bonding program that serves as security for
the collection of wages and payment for raw fish from
the Department of Labor to the Department of Revenue."
DONALD STUDY, CSP, DIRECTOR, LABOR STANDARDS AND SAFETY
DIVISION, DEPARTMENT OF LABOR, testified in support of EO
85. Currently, licensing is administrated by the Department
of Revenue (DOR). Applicants must prove to DOR that they
have a bond and then file with the Department of Labor (DOL)
before DOR will issue them a fisheries license.
Transferring of the program will eliminate one state agency
reducing requirements for business.
Representative Hanley noted that EO 85 would repeal A.S.
16.10.292. He questioned the Department's position. Mr.
Study stated that A.S. 16.10.292 grants the Commissioner of
Labor authority to enforce and regulate functions. When it
moves to the Department of Revenue, the authority will also
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transfer to the DOR Commissioner.
Co-Chair MacLean asked what the departmental move would
accomplish. Mr. Study replied it would provide a function
for those persons trying to obtain licenses and bonding
consolidated. Representative Brown interjected that DOL
would be exceeding the authority contained in the executive
order. She expressed her opposition to EO 85.
ROD MOURANT, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF REVENUE, commented that it was the intent of
the Department of Revenue to adopt specific and appropriate
regulations in order to continue to carry out the function
of protecting employees in the fishing industry.
Co-Chair MacLean questioned who would experience the impact
of the legislation. Mr. Mourant stated it would protect the
individual fishermen who are employed by others in the
fishing industry.
Representative Hoffman noted his concerns regarding EO 85.
He stated that the bonding requirements should be included
in the Executive Order. He emphasized, that when they are
not included the fishermen are not protected.
Co-Chair Larson stated EO 85 would be HELD in Committee for
further consideration.
HOUSE BILL 94
"An Act making a supplemental appropriation for costs
of elections operations; and providing for an effective
date."
CHARLOT THICKSTUN, DIRECTOR, DIVISION OF ELECTIONS, OFFICE
OF THE LIEUTENANT GOVERNOR, provided the Committee with
handouts [Attachments 3-6]. Attachment #4 illustrated the
current work plan from the Division from 2/01/93 through
4/30/93.
1. Catch-up after General Election continues; input
of voter information in time to produce precinct
registers for REAA/CRSA, municipal and borough
elections. Archiving General Election voted
ballots and precinct materials in progress.
2. Input of registration forms from the Permanent
Fund Dividend packet running over a thousand per
week, statewide. Input required in time to
produce precinct registers for REAA/CRSA,
municipal and borough elections.
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3. Budget-Fiscal Work - FY 94 reapportionment
increment being submitted. Supplemental
legislation in House and Senate in process.
Responding to requests for fiscal notes and
testifying in legislative committees, as
necessary. Legislative budget and audit
continues. Training fiscal staff on-going.
Co-Chair Larson asked if the requested amount of $372,963
dollars would pay for present staff and provide the
necessary funds to meet voter registration until 5/01/93.
Ms. Thickstun stated it would.
Co-Chair MacLean questioned the calculation of the request
provided by the Division of Elections. Ms. Thickstun
offered to provide the corrected figures. Co-Chair MacLean
questioned the travel component for February. Ms. Thickstun
replied the figure included travel and contractual fees.
Representative Brown added the total request as of 1/19/93
was $891,500 dollars. She asked if the current budget
submitted would be a reduction from that request. Co-Chair
Larson pointed out that the original request was through
6/30/93. The current figures cover operations through
5/01/93.
Representative Hanley questioned the $4 thousand dollar
difference between requests made in April and May. Ms.
Thickstun replied that operating costs and personnel
services would be less in April.
Co-Chair MacLean pointed out accurate figures had not been
provided to the Committee. She suggested discussion be
continued when the Division of Elections can provide the
corrected figures.
(Tape Change HFC 93-19, Side 1).
Co-Chair Larson provided the Committee with Attachment #7, a
memorandum and order provided by Judge Weeks addressing
attorney fees due municipalities from the reapportionment
suit. He asked for discussion and consideration of HB 94
and the fees.
REPRESENTATIVE ULMER asked the Committee to consider the
information provided from the 2/08/93 order, as provided by
Superior Court Judge Weeks, as the exact amount of money due
to the plaintiffs for attorney fees and costs. There is no
longer any dispute regarding that part of the
reapportionment lawsuit at the Superior Court level. She
asked the Committee to include these amounts in the
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supplemental provided to the Division of Elections.
Representative Grussendorf supported paying these fees
itemized in Attachment #7. He noted the process has cost a
lot of money and the political subdivisions should receive
the amount of money which they have spent and to which they
are legally entitled.
Co-Chair Larson asked the Committee to consider alternatives
to HB 94. Representative Hanley stated his concern with
guaranteeing elections to continue in March and April.
Representative Parnell echoed Representative Hanley's
concerns and suggested that the issues be kept separate.
Representative Hoffman pointed out that the requested
allocations need to be refigured by the Division of
Elections. He asked that they provide more information to
the Committee.
Representative Therriault asked if the fees determined by
Superior Judge Weeks were negotiable. Representative Ulmer
stated these fees are what is owed by the State of Alaska.
Representative Therriault thought the two matters should be
kept separate.
Representative Parnell asked if the plaintiffs can move for
reconsideration of the amounts granted through the court
order.
DON CLOCKSIN, ESQ., WAGSTAFF, POPE & CLOCKSIN, ANCHORAGE,
ALASKA, stated that technically there is a right for
reconsideration of any order. Although, he added, there is
nothing left to reconsider from the court order provided by
Judge Weeks. Judge Weeks ruled in favor of the State. The
figures are much lower than the total amount of money which
was accrued by the parties litigating the case. The State
does have the authority to appeal the decision.
Representative Brown asked if the figures listed in
Attachment #7 included interest. Mr. Clocksin stated that
interest had not yet been calculated.
Representative Hanley asked to hear from the Department of
Law. Co-Chair MacLean pointed out that the Department of
Law does have $1.87 million dollars allocated in the
supplemental, although that does not cover the total fees
to date. Representative Grussendorf pointed out that the
plaintiffs represented are constituents and he would like to
see them repaid. He added the Department of Law will
represent the Office of the Governor.
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Representative Brown suggested the plaintiffs be provided
the designated allocations. Currently there are new plans
for reapportionment and this would allow them to participate
in those proceedings. Representative Brown added the
corrected information from the Division of Elections and the
plaintiff's allocations should be included in a committee
substitute bill.
Representative Martin disagreed with paying the amounts
allocated in the Superior Court order. He referenced papers
submitted last year containing information regarding the
effect of reapportionment and specifically the Democratic
Party's involvement.
Co-Chair Larson stated the Committee was currently
discussing the judgement provided by Judge Weeks. Co-Chair
Larson and Co-Chair MacLean disagreed with Representative
Martin.
Mr. Clocksin assured the Committee that the Court ordered
award is for work directly involved with litigation over
reapportionment. Representative Ulmer stated that the
reapportionment lawsuit is directly related to the Division
of Elections supplemental. She stressed the importance of
the timeliness in paying this debt. It would be best for
the plaintiffs and best for the State because of the
accumulated interest.
Representative Brown stated she disagrees with the comments
of Representative Martin. Representative Grussendorf felt
that if the House Finance Committee reimburses the
plaintiffs, the Administration would then more carefully
consider their future proposal.
Co-Chair Larson asked the Division of Elections to provide
corrected information to the Committee. He noted that Legal
Services would be requested to draft a proposed bill,
sponsored by the House Finance Committee, dealing with
reimbursement to the municipalities for expenses incurred
during reapportionment (HB 146).
Representative Hoffman reiterated his concern with the high
turnover in fiscal officers and the organizational
efficiency within the Division of Elections.
Co-Chair Larson stated that HB 94 would be HELD in Committee
for further discussion.
ADJOURNMENT
The meeting adjourned at 3:05 P.M.
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