Legislature(1993 - 1994)

02/10/1993 01:51 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                        February 10, 1993                                      
                            1:51 p.m.                                          
                                                                               
  TAPE HFC 93-19, Side 2, #000 - end.                                          
  TAPE HFC 93-20, Side 1, #000 - #049.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:51 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Ulmer;   Representative   Mackie;   Charlot                 
  Thickstun,  Director,  Division  of  Elections,  Office   of                 
  Lieutenant Governor;                                                         
  Mike Greany, Director, Legislative Finance Division.                         
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 94     "An  Act making  a supplemental  appropriation for                 
            costs of elections  operations; and providing  for                 
            an effective date."                                                
                                                                               
            CSHB 94 (FIN) was reported out of Committee with a                 
            "do pass" recommendation.                                          
                                                                               
  CHARLOT THICKSON, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF                 
  THE  LIEUTENANT  GOVERNOR spoke  on behalf  of  HB 94.   She                 
  stressed  that  the  Division  will be  out  of  funding  by                 
  February 14, 1993.  She  presented members with calculations                 
  indicating that $312,263 thousand dollars would maintain the                 
  Division's basic  functions through April,  1993 (Attachment                 
  1).                                                                          
                                                                               
  Representative Therriault asked  if the Division  would have                 
  funds  to  maintain  a  skeleton  staff  after  April.   Ms.                 
  Thickstun replied that there would be no funds available for                 
  personnel after April 1993.                                                  
                                                                               
                                                                               
                                1                                              
                                                                               
                                                                               
  Representative Therriault clarified that temporary clerks in                 
  Fairbanks  will  be  able  to   help  with  the  backlog  in                 
  Fairbanks.                                                                   
                                                                               
  Representative Hanley MOVED AMENDMENT #1:  To delete on line                 
  4, "$891,500," and add "312,263."                                            
                                                                               
  Representative  Grussendorf  expressed   his  concern   that                 
  funding contained in HB  94, not be diverted for  uses other                 
  than those outlined in Attachment 1.                                         
                                                                               
  Representative Brown MOVED  to AMEND, AMENDMENT #1:   delete                 
  on line 5, "for  the fiscal year ending June,"  add "through                 
  April".  Members discussed the AMENDMENT TO AMENDMENT #1.                    
                                                                               
  Representative  Parnell asked if  the Division had essential                 
  work  which would continue past April,  1993.  Ms. Thickstun                 
  replied  that all essential work would be completed prior to                 
  the end of April.                                                            
                                                                               
  Representative  Hanley expressed  support  for AMENDMENT  TO                 
  AMENDMENT  #1.   He agreed  with  Representative Grussendorf                 
  that  the funding  should  be  spent  as  the  Division  has                 
  indicated in Attachment  1.  Ms. Thickstun  assured him that                 
  the Division intends to use the  funds as indicated in their                 
  memo (Attachment 1).                                                         
                                                                               
  Representative Martin asked  if the Division had  any margin                 
  to allow for a recount election.  Ms. Thickstun replied that                 
  the Division could try to cover  their needs by returning to                 
  a 30 hour week.  Representative Martin noted that  elections                 
  in Alaska are  often close.  He  stressed that the  State of                 
  Alaska  must pay  for recount  elections that  are within  1                 
  percent.                                                                     
                                                                               
  Co-Chair Larson  observed  that HB  94  will only  keep  the                 
  Division  operating  until the  end  of  April,  1993.    He                 
  emphasized   that   members   are   concerned   with   prior                 
  expenditures by  the Division.   Continued  funding for  the                 
  Division will be addressed after  the Ombudsman's report and                 
  the Legislative Budget and Audit Committee's audit.                          
                                                                               
  Ms. Thickstun  clarified that  recount elections would  only                 
  occur  for  Rural  Educational  Attendance  Area (REAA)  and                 
  Costal Regional Service  Area (CRSA) elections.   She stated                 
  that the  Division would be  able to perform a  REAA or CRSA                 
  recount election.                                                            
                                                                               
  Co-Chair Larson noted that  a motion was still pending.   He                 
  restated the motion to AMEND, AMENDMENT  #1:  delete on line                 
  5, "for the  fiscal year ending June,"  add "through April".                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Navarre  provided members  with Amendment  #2                 
  (Attachment  2).    Representative Navarre  MOVED  to  adopt                 
  AMENDMENT NO. 2.  Amendment 2  would include court costs and                 
  attorney fees awarded in Southeast Conference v. Hickel.  He                 
  stressed that the  Attorney General  has indicated that  the                 
  State of Alaska will not appeal the decision.  He emphasized                 
  that 10.5 percent interest will accrue until the  State pays                 
  the judgement.  He asserted that  it makes good fiscal sense                 
  to settle the judgement immediately.                                         
                                                                               
  Representative Martin noted that Judge Weeks only signed the                 
  order on February 6,  1993.  He asserted that  the Judgement                 
  is being  "railroaded through"  and is  "circumventing   the                 
  normal system of government."                                                
                                                                               
  STEPHAN   (NEIL)   SLOTNICK,  ASSISTANT   ATTORNEY  GENERAL,                 
  DEPARTMENT OF LAW  noted that the Department of  Law expects                 
  the settlement  amount  to  change.   He  pointed  out  that                 
  plaintiff Leavitt has indicated that the settlement contains                 
  a clerical  error.   The  amount  due to  plaintiff  Leavitt                 
  should be $216,369.18.                                                       
                                                                               
  Representative  Grussendorf  referred  to discussions  which                 
  took place on  the House Floor during  debate on HB 68.   He                 
  asserted that  promises were made  by the  Majority at  that                 
  time, that  the  award contained  in  Amendment 2  would  be                 
  addressed  in the next available  vehicle.  He asserted that                 
  HB 94  is the  "next available  vehicle".   He reminded  the                 
  members  that the Attorney  General represents  the Governor                 
  not the Legislature.  He stressed  that the Governor must be                 
  held responsible.                                                            
                                                                               
  Representative  Martin observed  that the Department  of Law                 
  has  other  judgements pending.    Mr. Slotnick  agreed that                 
  other judgements are included in FY 94 judgements and claims                 
  legislation.  He added that the award contained in Amendment                 
  2 is included in the  judgement legislation.  The judgements                 
  and claims legislation is  expected to be passed at  the end                 
  of session.  He noted that it is  uncommon for judgements to                 
  be separated from  the Department's requests  for judgements                 
  and claims.                                                                  
                                                                               
  Representative   Navarre   suggested  that   the  Governor's                 
  reapportionment plan caused the plaintiffs to file suit.  He                 
  noted  that the  reapportionment process  is on  going.   He                 
  asserted that the  plaintiffs should be reimbursed  in order                 
  to  allow them to  pursue additional actions  that they deem                 
  are necessary to their cases.                                                
                                                                               
  Co-Chair Larson assured members that  the Committee will act                 
  on the award issue expediently.  He reminded members that HB
                                3                                              
                                                                               
                                                                               
  146, contains an  appropriation to the Department of Law for                 
  the  Southeast  Conference  judgement.   House  Bill  146 is                 
  schedule  for  hearing  by the  House  Finance  Committee on                 
  February 15, 1993.                                                           
                                                                               
  Co-Chair Larson  read portions  of a  letter from  Ernest W.                 
  Brannon, Mayor,  Matanuska-Susitna Borough.   "The  Attorney                 
  General's Office has opposed the fee and cost  request every                 
  step  of the way.   All the briefing  is now complete before                 
  the superior  court and  we expect  a ruling soon...Just  as                 
  important,                                                                   
  delay will result  in a waste of  state funds since all  the                 
  plaintiffs  are  entitled to  statutory  interest, currently                 
  10.5 percent, from June 25, 1992 until fees are paid."                       
                                                                               
  Representative Hoffman spoke in support of  Amendment 2.  He                 
  noted  that  the other  body  failed  to  pass  HB 68.    He                 
  suggested that failure  to include  Amendment 2 would  delay                 
  action on the judgement.                                                     
                                                                               
  REPRESENTATIVE ULMER referred to a conversation she had with                 
  the Attorney General.  She relayed that the Attorney General                 
  had assured her that the State of  Alaska would not have the                 
  resources to pursue an appeal to the Southeast Conference v.                 
  Hickel judgement by Judge Weeks.                                             
                                                                               
  Co-Chair  Larson  wondered if  the  addition of  Amendment 2                 
  would  slow  funding  for  the   Division  of  Elections  as                 
  contained in HB 94.                                                          
                                                                               
  Representative Brown felt that the issue of funding for  the                 
  Division of Elections was more  controversial than the court                 
  ordered awards.                                                              
                                                                               
  Representative Navarre stressed that the Administration  had                 
  the opportunity to ask for a supplemental to the Division of                 
  Elections during the 2nd Special  Session of the Seventeenth                 
  Legislature.  He asserted that poor  planning on the part of                 
  the Administration should not constitute an emergency on the                 
  part of the Legislature.                                                     
                                                                               
  Representatives Hoffman and Grussendorf spoke  in support of                 
  Amendment 2.  Representative Grussendorf felt that Amendment                 
  2 would expedite HB 94.                                                      
                                                                               
  REPRESENTATIVE  MACKIE spoke in support  of Amendment 2.  He                 
  observed that  the  Reapportionment  Board  was  established                 
  without sufficient public hearings.  He pointed out that the                 
  Reapportionment   Board   put   communities  in   completely                 
  different  districts.   He  asserted  that the  "fast track"                 
  approach taken by  the Administration  put communities in  a                 
  situation of having to protect  themselves, whether they had                 
                                                                               
                                4                                              
                                                                               
                                                                               
  the resources or  not.  He felt  that had public input  been                 
  registered the lawsuits may not have been initiated.                         
                                                                               
  Mr. Slotnick stated  that the  State of Alaska  will seek  a                 
  revision on the  award of interest  to make clear that  fees                 
  accrued after  June 25, 1992,  do not incur  interest before                 
  June 25, 1992.                                                               
                                                                               
  Co-Chair MacLean  noted  that the  plaintiffs  will  receive                 
  substantial interest on their awards.                                        
                                                                               
  Co-Chair Larson noted that the motion to Adopt AMENDMENT NO.                 
  2  was  still pending.    Representative Martin  OBJECTED to                 
  AMENDMENT NO. 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  MacLean  MOVED   to  adopt   HB  94  as   AMENDED.                 
  Representative Navarre OBJECTED.  A roll call vote was taken                 
  on the motion.                                                               
                                                                               
  IN  FAVOR:  Foster,  Grussendorf, Hanley,  Hoffman,  Martin,                 
  Parnell,       Therriault, MacLean, Larson                                   
                                                                               
  OPPOSED:  Brown, Navarre                                                     
                                                                               
  The MOTION PASSED (9-2).                                                     
                                                                               
  CSHB 94 (FIN) was reported out of Committee with a "do pass"                 
  recommendation.                                                              
                                                                               
  Representative Brown  reminded members that  Legislators are                 
  required to conform with the Open Meetings Act.                              
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 2:47 p.m.                                           
                                                                               
                                                                               
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