Legislature(1993 - 1994)
03/11/1993 01:30 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
MARCH 11, 1993
1:30 P.M.
TAPE HFC 93 - 44, Side 2, #000 - end.
TAPE HFC 93 - 45, Side 1, #000 - end.
TAPE HFC 93 - 45, Side 2, #000 - #241.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:30 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Nico Bus, Chief, Financial Services, Department of Natural
Resources; Glenn A. Olds, Commissioner, Department of
Natural Resources; Ron Swanson, Director, Division of Land,
Department of Natural Resources; Representative Carl Moses;
C.E. Swackhammer, Deputy Commissioner, Department of Public
Safety; Kenneth Bischoff, Director, Division of
Administrative Services, Department of Public Safety; Col.
John Murphey, Director, Division of Alaska State Troopers,
Department of Public Safety; Jay N. Dulany, Director,
Division of Motor Vehicles, Department of Public Safety;
Chris Christensen, Attorney, Alaska Court System.
SUMMARY INFORMATION
HB 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.
HB 56 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
for state services and operations; and providing
for an effective date.
Subcommittee Closeouts: Natural Resources
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Public Safety
Incorporated Subcommittee recommendations for the
Department of Natural Resources and the Department
of Public Safety.
HB 155 An Act relating to audits of health facilities.
HB 155 was held in Committee for further
discussion.
While waiting for a quorum to arrive, Representative Brown
discussed her concerns regarding a recent newspaper article
she read addressing the possibilities of the Legislature
suing the Governor over a decision to decide the fate of $1
billion dollars in oil tax settlements.
DEPARTMENT OF NATURAL RESOURCES
The Department of Natural Resources (DNR) Subcommittee
consisted of Chair Representative Therriault with members
Representative James, Representative Williams,
Representative Green, Representative Toohey,
Representative Davies and Representative Carney.
Representative Therriault provided the Committee with
handouts. [Attachments #1 - #3]. He stated the DNR
Subcommittee target was $1.470 million dollars with total
reductions of $1.475 million dollars.
Representative Therriault explained the increment/decrement
list provided by the Subcommittee, "Transaction Summary for
Governor to House", Attachment #1.
* Management and Administration Commissions
decrement of $89 thousand dollars which would
eliminate the Citizens Advisory Commission on
Federal Areas.
* Land Development - Resource Development Section
received a total decrement of $237.2 thousand
dollars.
* Oil & Gas Development general fund reduction of
$102 thousand dollars. This reduction reduces by
half the Division's proposal for $205 thousand
dollars.
* The Mining Development component reduction of $45
thousand dollars would eliminate an administrative
position.
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* The Geological Development component reduces
general funds for $118 thousand dollars.
* The Water Development component program receipts
reduction of $300 thousand dollars and the
requested $175.5 thousand dollar increment has
been eliminated.
* The Oil and Gas Conservation Commission component
reduction of $52.6 eliminates the proposed
increment of a Senior Petroleum Engineering
position.
* The Information Resource Management component
received a reduction of $110 thousand dollars to
status graphics.
* In the Parks and Recreation Management Division -
Parks Management component received a reduction of
$35 thousand dollars. A shift was made of $175
thousand dollars from general fund to program
receipts.
* The Agricultural Development component received a
reduction of $154.3 thousand dollars.
* State Fairs component received a reduction of
general funds $43.3 thousand dollars. There
remains $75 thousand dollars in that component.
Co-Chair MacLean referenced Attachment #3 "Transaction
Summary for the House" and questioned the land exchange
reduction of $225.6 thousand dollars.
NICO BUS, CHIEF, FINANCIAL SERVICES, DEPARTMENT OF NATURAL
RESOURCES, identified projects within the Division of Land
presented in the Governor's amended budget. Actual
reductions to that Division have changed and he offered to
provide more detail at a latter date.
Co-Chair MacLean questioned the Capital project fund
decrement of $335.6 thousand dollars. Mr. Bus replied that
the Division of Land's budget reflects certain capital
projects, based on the Governor's original request. This
has been adjusted and increased in the Governor's amended
request based on the total number of capital projects.
Co-Chair MacLean asked for further information regarding the
Challenge Alaska Grant Program. Representative Therriault
said it is an agency which coordinates volunteers providing
training to handicap skiers.
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Co-Chair MacLean questioned the reduction to State Fair
Grants. Representative Therriault explained that all State
Fair applicants received a percentage reduction.
Representative Gail Phillips requested that Legislative
Finance draft intent language explaining the funding levels.
Representative Hoffman stressed his concern in addressing
resources and those resource developments. He drew
parallels between the cuts experienced by the Department of
Fish and Game budget and those to the Department of Natural
Resources. Mr. Bus responded, the position count has been
adjusted between FY 92 and FY 93 based on legislative
intent.
Representative Grussendorf referenced the State Forest
Practices Act, pointing out that the Department to date has
not worked out the regulations for that program.
GLENN OLDS, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES,
responded that the Department of Fish and Game is currently
discussing the regulations created for that Act. There is
an appeal to the Attorney General's Office for negotiation.
The Department of Natural Resources finished their
responsibility of writing those regulations last year.
Representative Brown noted her concern with the $247
million dollar reduction to general funds. She stated that
DNR is the heart of the economic development efforts for the
State. Representative Brown referenced Attachment #3,
questioning the $83.3 thousand dollars reduction to the
Private Mine Reclamation program receipts. The program can
not be implemented without the collection of fees.
Representative Therriault stated the fee regulations have
not yet been approved. The switch from general funds to
program receipts was made last year. Representative Brown
advised that the cut will not save the State any money.
Representative Brown asked if the reduction to the Public
Information Center was participated in jointly with the
federal government. Representative Therriault replied that
the Information Center addressed in the reduction was
located in Anchorage. Representative Brown questioned the
effect of the $360 thousand dollar reduction to that center.
Mr. Bus stated that the Public Information Center is
required that to centralize all public services. The
funding cut will require the operation funding originate
from the public and also program receipts.
Representative Brown questioned Attachment #3, a reduction
to Oil and Gas Development for $102 thousand general fund
dollars. This Division generates revenue from which the
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State is based. Representative Therriault replied that
anticipated additional costs can not be predicted.
Representative Brown reiterated that maintaining a good
lease sale schedule is difficult and felt that the increment
does not include any new legislation indicated by the fiscal
note.
Representative Brown questioned the impact on the Water
Development component with the program receipts reduction.
Representative Therriault stated that the Subcommittee felt
they had over estimated program receipts. Mr. Bus added
last year program receipts were minimal which should
increase in the future.
Representative Brown referenced Attachment #3, Line 16, Oil
and Gas Conservation Commission, and questioned the effect
of the $52.6 thousand dollars reduction. Mr. Bus replied,
the impact will be the elimination of one of the three
engineer positions. He added, this will clearly impact the
operation of the organization.
Representative Brown questioned Line 18, Information
Resource Management component reduction to Status Graphics
by $110 thousand dollars. Mr. Bus stated the impact would
delete two full time positions to the agency and which would
delay the updating of graphic records.
(Tape Change HFC 93-45, Side 1).
Representative Martin questioned the increment to Fire
Suppression. Co-Chair Larson explained that the fire
suppression component would provide the necessary funds for
the administration; the actual determination of the cost
would be addressed in the supplemental. Mr. Bus stated that
the Governor's request for FY 94 includes $3.7 million
general fund dollars for fixed costs. He added, the average
fire suppression cost is $9.5 million dollars.
Representative Martin pointed out his concern over the
number of surveyors employed in the Land Development
component of resource development.
RON SWANSON, DIRECTOR, DIVISION OF LAND, DEPARTMENT OF
NATURAL RESOURCES, said there are eleven surveyors. Some of
the survey work has been privatized. The applicant now is
responsible for paying for the survey. He added, the
Division has an oversight capability with other divisions in
the Department.
Representative Brown requested clarification of the fire
suppression component. Mr. Bus advised the $9.117 million
dollars includes $5.328 million dollars in federal funds.
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Representative Therriault MOVED to incorporate the
Subcommittee's recommendations into HB 55. There being NO
OBJECTIONS, it was incorporated.
DEPARTMENT OF PUBLIC SAFETY
The Department of Public Safety Subcommittee consisted of
Chair Representative Parnell with members Representative
Moses, Representative Porter, Representative Mackie and
Representative Navarre.
Representative Parnell provided the Committee with
handouts. [Attachments #4 - #8]. He noted that the
Subcommittee has provided a two percent reduction from the
Governor's proposed budget. The total reduction was $1.785
million dollars, which is an actual Public Safety budget
increase of 2.4 percent for the year. Representative
Parnell provided the Committee with an overview of
Attachment #5, "Transaction Summary for Governor to House".
* In the Fish and Wildlife Protection Division, the
Enforcement/Investigative Services received a
decrement of $10 thousand dollars.
* From that Division in the Aircraft Section, a
decrement of $10 thousand dollars was taken.
* In the Division of Motor Vehicles, a decrement of
$350 thousand dollars was taken from field
services. The component would delete the seasonal
restorational positions. The Division would also
receive a $37.3 thousand dollar decrement to the
Administration.
* The Alaska State Troopers Division received a
total decrement of $1.009 million dollars
consisting of $897.9 thousand dollars to
Detachments, $39.9 thousand dollars in Criminal
Investigations Bureau reducing overtime increment.
The Judicial Services-Anchorage component reduced
the overtime increment leaving $21.6 thousand
dollars.
* Rural Trooper Housing component from the Alaska
State Trooper Division received a reduction of $50
thousand dollars.
* The Alaska Police Standards Council received an
increment of $30 thousand dollars.
* The Domestic Violence/Sexual Assault component
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received a decrement of $300 thousand dollars.
Representative Parnell noted that currently some
money is moved from felons permanent fund dividend
checks to other sources. He stated that the
movement of funds will require a statutory change.
He emphasized that the decrement does not
represent a reduction for Domestic Violence or
Sexual Assault. It would be a source change.
* Commissioner's Office reduction to special
services for $35 thousand dollars. Included in
the component is an increment of $82.9 thousand
dollars transfer to a Special Assistant II.
* The Training Academy received a $33.3 thousand
dollar decrement to bed replacements for the
Police Academy.
* Administrative Services received a reduction of
$20 thousand dollars to the contractual account.
* Building Security Maintenance-Session security
costs decrement of $73.2 thousand dollars. And a
reduction to minimum cost decrement of $20.2
thousand dollars.
Representative Hoffman questioned the cuts to rural trooper
housing accommodations. He suggested that the incentive for
competent troopers to relocate to rural areas is not easy.
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, responded that the
troopers would be responsible for finding their own housing
in rural Alaska. He felt this would not affect the
Department's ability to find competent troopers for the
rural area.
Representative Martin questioned how program receipts in
the Division of Motor Vehicles were being handled. Mr.
Bischoff stated that the Division of Motor Vehicles entire
budget was based on program receipts. Representative
Martin noted that last year, the Division requested $569
thousand dollars in RPL's. Representative Parnell replied
that the cut to DMV seasonal positions caused the most
controversy. Representative Martin asked how NFS checks to
DMV were handled.
JAY DULANY, DIRECTOR, DIVISION OF MOTOR VEHICLES, DEPARTMENT
OF PUBLIC SAFETY, replied a hold would be placed on the
vehicle at registration if a NFS check had been issued. An
additional $25 dollar fee is charged to clear the check and
resume the ability to register that vehicle.
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Representative Brown questioned the service impacts of the
$325 thousand dollar reduction. Mr. Dulany stated that
business increases by fifty percent during the months April
- July. With the additional seasonal positions, the public
had a waiting time of up to two hours. Quality public
service can not be provided with a minimal staff.
Representative Brown referenced the claims for felons
permanent fund checks and asked what would happen if the
statute did not pass. Representative Parnell stated that
the intent of the Subcommittee would be that the funds would
come out from the felons checks only if the statute was
passed. The Department of Revenue has given their support
for this legislation. Co-Chair Larson noted the enclosed
DPS Subcommittee House Bill provided. [Attachment #7].
Representative Brown emphasized her concern, that should
the bill not pass, domestic violence not be reduced.
Representative Navarre noted the money would still be
available although it would need to be listed on the
dividend check.
Representative Therriault asked for further information on
the $78 thousand dollar decrement proposed to be taken from
the 470 fund. Mr. Bischoff stated the amendment would be an
RSA with the Alaska State Troopers. The Department of
Environmental Conservation would provide investigative
assistance for hazardous substance investigation and some
dispatching services. Representative Therriault suggested
$20 thousand dollars be backed out of the dispatching
services.
Representative Martin requested further discussion
regarding contact jails.
C.E. SWACKHAMMER, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC
SAFETY, stated that contact jails provide jailing for rural
Alaska. They process nearly eight thousand prisoners per
year, which places heavy pressure on the Department of
Corrections. He added, there has been a task force
appointed to address the concern.
Representative Parnell stated any closures of jails would
impact the Department of Corrections and prisoner
transportation costs.
Representative Parnell MOVED to incorporate the Department
of Public Safety Subcommittee recommendations into HB 55.
Representative Navarre OBJECTED.
A roll call vote was taken on the motion.
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IN FAVOR: Hanley, Hoffman, Martin, Parnell,
Therriault, Larson, MacLean.
OPPOSED: Grussendorf, Navarre.
Representative Brown and Representative Foster were not
present for the vote.
The MOTION PASSED, 7 - 2.
The Department of Public Safety Subcommittee recommendations
were incorporated into HB 55.
Co-Chair Larson MOVED Attachment 7, work draft #8-LS0784/A
dated 3/4/93 be introduced as a House Finance Committee
substitute bill. There being NO OBJECTIONS, it was so
ordered.
(Tape Change, HFC 93-45, Side 2).
HOUSE BILL 151
"An Act relating to payment by indigent persons for
legal services and related costs; and providing for an
effective date."
Co-Chair MacLean referenced work draft #8-LS0618\E dated
3/10/93 CSHB 151 (FIN). She explained the changes the
committee substitute made to HB 151.
Representative Parnell asked the meaning of "cost" on Page
1, Line 9. He thought this would narrow the amount of money
which the State receives. Co-Chair MacLean noted her intent
was to have the costs and attorney fees incorporated.
Representative Parnell recommended adding "costs and
attorney's fees".
CHRIS CHRISTENSEN, ATTORNEY, ALASKA COURT SYSTEM, explained
that the Alaska Exemption's Act lifts items which a creditor
such as the State of Alaska can not seize when it proceeds
against a debtor. If the State is attempting to recover
attorney's fees from someone who was indigent at one time,
the first $62 thousand dollars of equity in their home can
not be touched. The first $35 hundred dollars of personal
property, the first $11 hundred dollars of jewelry, the
first $32 hundred dollars of tools, the first $11 hundred
dollars of pets, the first $35 hundred dollars of motor
vehicles and the first $16 hundred dollars worth of cash can
not be touched.
Co-Chair MacLean asked if permanent fund dividends were
allowable exemptions. Mr. Christensen stated that the PFD
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is protected by the Alaska Exemption's Act if it is a
private creditor. If the creditor is a State agency and it
is a debt owed to the State, the Alaska's Exemption Act does
not apply.
The Supreme Court with Civil Rule 39.5 has added a "special
hardship exemption" which is an exemption which is mandated
by the U.S. Supreme Court decision from 1974. The Court has
indicated that a "formerly indigent persons property can be
taken" as long as it can be afford to be repaid without
hardship.
Co-Chair Larson MOVED to adopt the work draft dated 3/10/93.
Representative Martin MOVED to delete on Page 1, Line 9,
and use the language of the original bill.
Co-Chair Larson assigned HB 151 to subcommittee Chaired by
Representative Hanley and with members Representative
Parnell, Representative MacLean and Representative
Hoffman.
HB 151 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:17 P.M.
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