Legislature(1993 - 1994)
04/23/1993 08:45 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 23, 1993
8:45 A.M.
TAPE HFC 93 - 118, Side 2, #000 - end.
TAPE HFC 93 - 119, Side 1, #000 - #332.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 8:45 A.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
Representative Tom Brice; Juanita Hensley, Director,
Division of Motor Vehicles, Department of Public Safety;
Annette Kreitzer, Aide, Senator Loren Leman; Mel Kroseng,
Aide, Representative Ramona Barnes; Representative Bettye
Davis; Representative Carl Moses; Representative Pat Carney;
Norm Cohen, Interim Director, Coastal Villages Fishing
Development, Juneau, Alaska.
SUMMARY INFORMATION
SB 71 An Act relating to emergency medical services; and
repealing obsolete references to the Statewide
Health Coordinating Council and health systems
agencies.
HCS SS SB 71 (HESS) was reported out of Committee
with a "do pass" recommendation and with a House
Finance Committee fiscal note.
SB 84 An Act relating to fees for identification cards
and certain motor vehicle licenses and permits; to
licenses issued to drivers and to revocation of a
license to drive; and providing for an effective
date.
SB 84 am was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Public Safety.
1
HB 83 An Act making appropriations for construction and
major maintenance of schools; and providing for an
effective date.
CS HB 83 (FIN) was reported out of Committee with
a "do pass" recommendation.
SB 100 An Act making supplemental and special
appropriations for the expenses of state
government; making, amending, and repealing
capital and operating appropriations; and
providing for an effective date.
SB 100 was held in Committee for further
consideration.
HB 264 An Act providing for a fishery resource landing
tax; and providing for an effective date.
HB 264 was held in Committee for further
consideration.
CONSENT AGENDA:
SB 49 An Act relating to preelection reports; closing
the two-day reporting gap in those reports;
setting the date of February 15 for filing
year-end campaign finance reports; and requiring
reporting of zero year-end reports.
HCS SB 49 (STA) was reported out of Committee with
a "do pass" recommendation and with a zero fiscal
note by the Department of Administration dated
2/01/93.
SB 57 An Act relating to employment contributions and to
extending the pilot project for the state training
and employment program; and providing for an
effective date.
SB 57 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Senate Finance Committee dated 4/08/93.
SB 156 An Act amending the definition of `municipality'
for purposes of the human services community
matching grant program.
SB 156 was reported out of Committee with a "do
pass" recommendation and with zero fiscal notes by
the Department of Health and Social Services dated
2
3/24/93 and the Department of Community and
Regional Affairs dated 3/24/93.
SB 162 An Act relating to the implementation of the
federal emergency unemployment compensation
program; making changes relating to unemployment
compensation under the extended benefits program
and the supplemental state benefits program; and
providing for an effective date.
CS SB 162 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Department of Labor dated 3/12/93.
CONSENT AGENDA:
Representative Foster MOVED the Consent Agenda. There being
NO OBJECTION, it was so ordered.
SENATE BILL 49
"An Act relating to preelection reports; closing the
two-day reporting gap in those reports; setting the
date of February 15 for filing year-end campaign
finance reports; and requiring reporting of zero
year-end reports."
HCS SB 49 (STA) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Department of Administration dated 2/01/93.
SENATE BILL 57
"An Act relating to employment contributions and to
extending the pilot project for the state training and
employment program; and providing for an effective
date."
SB 57 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Senate
Finance Committee dated 4/08/93.
SENATE BILL 156
"An Act amending the definition of `municipality' for
purposes of the human services community matching grant
program."
SB 156 was reported out of Committee with a "do pass"
recommendation and with zero fiscal notes by the Department
of Health and Social Services dated 3/24/93 and the
Department of Community and Regional Affairs dated 3/24/93.
3
SENATE BILL 162
"An Act relating to the implementation of the federal
emergency unemployment compensation program; making
changes relating to unemployment compensation under the
extended benefits program and the supplemental state
benefits program; and providing for an effective date."
CS SB 162 (FIN) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the
Department of Labor dated 3/12/93.
SENATE BILL 84
"An Act relating to fees for identification cards and
certain motor vehicle licenses and permits; to licenses
issued to drivers and to revocation of a license to
drive; and providing for an effective date."
JUANITA HENSLEY, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF PUBLIC SAFETY, stated that SB 84 amends
current law by requiring a holographic symbol be placed on
driver's license and identification cards to prevent illegal
alteration or duplication. The bill also adds a new section
to Alaska's motor vehicle driver's license of any person
under the age of 21 who uses a drivers license as fraudulent
or false identification in an attempt to gain entry or
purchase alcohol from a liquor establishment.
Ms. Hensley noted that the fiscal note passed out by the
Senate Finance Committee would not be sufficient to
adequately address the Legislation. She encouraged the
House Finance Committee to adopt the fiscal note provided by
the Department of Public Safety.
Representative Martin MOVED to report SB 84 am out of
Committee with individual recommendations and with the
fiscal note by the Department of Public Safety. There being
NO OBJECTION, it was so ordered.
SB 84 am was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Public Safety.
SENATE BILL NO. 71
"An Act relating to emergency medical services; and
repealing obsolete references to the Statewide Health
Coordinating Council and health systems agencies."
Representative Foster MOVED to report HCS SS SB 71 (HES) out
4
of Committee with individual recommendations and with the
accompanying fiscal notes. Representative Brown OBJECTED
for further questioning.
ANNETTE KREITZER, AIDE, SENATOR LOREN LEMAN, explained that
Sections 9 & 10 address patient information systems. She
added, the sponsor submitted a fiscal note for the
Committee's consideration of $140 thousand dollars.
Representative Foster MOVED the $140 thousand dollars fiscal
note. Representative Brown WITHDREW her OBJECTION. There
being NO further OBJECTION, it was so ordered.
CS SS SB 71 (HES) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the House
Finance Committee.
HOUSE BILL NO. 83
"An Act making appropriations for construction and
major maintenance of schools; and providing for an
effective date."
Representative Hanley provide the Committee with Amendment
the Anchorage School district from school construction to
school maintenance. The shift would provide 75% of the
amount needed to complete roof repairs to the Spur
Elementary School. Representative Hanley MOVED Amendment
Representative Martin MOVED CS HB 83 (FIN) out of Committee
with individual recommendations. Representative Navarre
OBJECTED.
Representative Navarre requested an additional $8.2 million
dollars for the new Kenai Elementary School. He MOVED the
additional allocation to Page 2, Line 12, noting that it
would increase the amount included in Section 2. This
amount would provide 70% of the project cost. Co-Chair
MacLean OBJECTED noting that the addition had not been
submitted for the priority list. Representative Navarre
argued that the priority list had been submitted by
Representative John Davies.
A roll call was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman.
OPPOSED: Parnell, Therriault, Foster, Hanley,
Martin, Larson, MacLean.
The MOTION FAILED, (4-7).
5
The MOTION to MOVE the bill from Committee was reiterated.
Representative Navarre OBJECTED. He advised that the
allocation of funds had not fairly been distributed and
emphasized that the priority list did not reflect areas of
impact or growth. There is little flexibility in the list.
A roll call was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Brown, Foster,
Grussendorf, Hanley, Hoffman, Martin,
MacLean, Larson.
OPPOSED: Navarre.
The MOTION PASSED, (10-1).
CS HB 83 (FIN) was reported out of Committee with a "do
pass" recommendation.
SENATE BILL 100
"An Act making supplemental and special appropriations
for the expenses of state government; making, amending,
and repealing capital and operating appropriations; and
providing for an effective date."
Co-Chair Larson pointed out the Committee had completed
Sections 1 - 74 at the previous meeting. Section 75 was
adopted. Sections 76 - 79 are currently in discussion
between the House and the Senate budget meetings.
Section 80 provides $30 thousand dollars for the Sitka
Campus of the Katlian Vocation School. Representative
Martin asked if these projects were currently listed in the
University budget. Representative Grussendorf stated that
this component was not included in the University's budget.
Representative Grussendorf MOVED Section #80. There being
NO OBJECTION, Section #80 was adopted.
Representative Brown understood that Section #75 was the
same component included in the capital budget request for
$1.7 million dollars. She felt it was not needed in the
proposed legislation.
MEL KROSENG, AIDE, REPRESENTATIVE RAMONA BARNES, advised
that it is the Speaker's request that the allocation be
funded in the supplemental so that the Department of
Corrections can begin Project Hope this year.
Representative Brown REMOVED her OBJECTION noting that the
6
Department of Correction's budget is seriously underfunded
and she would like to encourage as many resources as
possible for that agency. There being NO FURTHER OBJECTION,
Section 75 was adopted.
SB 100 was HELD in Committee for further consideration.
HOUSE BILL 264
"An Act levying and providing for the collection of an
disposition of the proceeds of a fishery resource
landing tax; and providing for an effective date."
REPRESENTATIVE CARL MOSES explained HB 264. The legislation
will impact those operators who both catch and process fish
outside Alaska and bring the processed product into the
State. The legislation is aimed at catcher/processors in
the Exclusive Economic Zone ("EEZ) that currently pay no
Fisheries Business Tax.
The EEZ catcher/processors are not subject to the Fisheries
Business Tax because it only applies if fishery resources
are either caught or processed in Alaska. Since the
catcher/processors catch and process in the EEZ exclusively,
the Fisheries Business Tax does not apply to them.
Alaska provides significant benefits and services at the
same time incurs fishery management costs to resources.
Coupled with the impact the operations have on local Alaska
communities, the tax is one way to compensate the State for
the services.
The Fisheries Business Tax applies to unprocessed fishery
resources while the Landing Tax applies to processed fishery
resources. If the Fisheries Business Tax applies, the
Landing Tax will never be applicable. The Landing Tax only
applies if the first landing is in this State. The seller
will generally be liable for the tax. The tax is imposed on
the owner of the resource at the moment of unloading or
transfer.
(Tape Change, HFC 93 - 119, Side 1).
Co-Chair MacLean voiced her support of the legislation
stating that 89% of the factory trollers are from out of
state. She pointed out that the legislation would bring an
additional $8.6 million dollars revenue to the general fund.
Representative Grussendorf echoed Representative MacLean's
sentiments.
Representative Foster referenced a letter from the Bering
Sea Fishing Association. He noted that the Association
7
would like to submit an amendment to the legislation to
provide for a portion of the money be placed into a non-
profit corporation to serve specific fishery governmental
purposes. He requested additional time for consideration of
the legislation in order to accommodate further testimony.
NORM COHEN, INTERIM EXECUTIVE DIRECTOR, COASTAL VILLAGES
FISHING COOPERATIVE DEVELOPMENT, JUNEAU, ALASKA, stated that
the amendment in the proposed committee substitute is narrow
and would only allow for companies which are fishing as part
of a community development quota program to use it as a tax
credit.
He added, the money would then be available for governmental
type purposes in the communities which are part of the CDQ
program. The amount of funds available is only $2.90
thousand dollars, which would not come from a general fund
share. The programs are important and the money could allow
for government type investments.
HB 264 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 10:10 a.m.
HOUSE FINANCE COMMITTEE
APRIL 23, 1993
8:45 A.M.
TAPE HFC 93 - 118, Side 2, #000 - end.
TAPE HFC 93 - 119, Side 1, #000 - #332.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 8:45 A.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
8
Representative Tom Brice; Juanita Hensley, Director,
Division of Motor Vehicles, Department of Public Safety;
Annette Kreitzer, Aide, Senator Loren Leman; Mel Kroseng,
Aide, Representative Ramona Barnes; Representative Bettye
Davis; Representative Carl Moses; Representative Pat Carney;
Norm Cohen, Interim Director, Coastal Villages Fishing
Development, Juneau, Alaska.
SUMMARY INFORMATION
SB 71 An Act relating to emergency medical services; and
repealing obsolete references to the Statewide
Health Coordinating Council and health systems
agencies.
HCS SS SB 71 (HESS) was reported out of Committee
with a "do pass" recommendation and with a House
Finance Committee fiscal note.
SB 84 An Act relating to fees for identification cards
and certain motor vehicle licenses and permits; to
licenses issued to drivers and to revocation of a
license to drive; and providing for an effective
date.
SB 84 am was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Public Safety.
HB 83 An Act making appropriations for construction and
major maintenance of schools; and providing for an
effective date.
CS HB 83 (FIN) was reported out of Committee with
a "do pass" recommendation.
SB 100 An Act making supplemental and special
appropriations for the expenses of state
government; making, amending, and repealing
capital and operating appropriations; and
providing for an effective date.
SB 100 was held in Committee for further
consideration.
HB 264 An Act providing for a fishery resource landing
tax; and providing for an effective date.
HB 264 was held in Committee for further
consideration.
CONSENT AGENDA:
9
SB 49 An Act relating to preelection reports; closing
the two-day reporting gap in those reports;
setting the date of February 15 for filing
year-end campaign finance reports; and requiring
reporting of zero year-end reports.
HCS SB 49 (STA) was reported out of Committee with
a "do pass" recommendation and with a zero fiscal
note by the Department of Administration dated
2/01/93.
SB 57 An Act relating to employment contributions and to
extending the pilot project for the state training
and employment program; and providing for an
effective date.
SB 57 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Senate Finance Committee dated 4/08/93.
SB 156 An Act amending the definition of `municipality'
for purposes of the human services community
matching grant program.
SB 156 was reported out of Committee with a "do
pass" recommendation and with zero fiscal notes by
the Department of Health and Social Services dated
3/24/93 and the Department of Community and
Regional Affairs dated 3/24/93.
SB 162 An Act relating to the implementation of the
federal emergency unemployment compensation
program; making changes relating to unemployment
compensation under the extended benefits program
and the supplemental state benefits program; and
providing for an effective date.
CS SB 162 (FIN) was reported out of Committee with
"no recommendations" and with a zero fiscal note
by the Department of Labor dated 3/12/93.
CONSENT AGENDA:
Representative Foster MOVED the Consent Agenda. There being
NO OBJECTION, it was so ordered.
SENATE BILL 49
"An Act relating to preelection reports; closing the
two-day reporting gap in those reports; setting the
date of February 15 for filing year-end campaign
10
finance reports; and requiring reporting of zero
year-end reports."
HCS SB 49 (STA) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Department of Administration dated 2/01/93.
SENATE BILL 57
"An Act relating to employment contributions and to
extending the pilot project for the state training and
employment program; and providing for an effective
date."
SB 57 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Senate
Finance Committee dated 4/08/93.
SENATE BILL 156
"An Act amending the definition of `municipality' for
purposes of the human services community matching grant
program."
SB 156 was reported out of Committee with a "do pass"
recommendation and with zero fiscal notes by the Department
of Health and Social Services dated 3/24/93 and the
Department of Community and Regional Affairs dated 3/24/93.
SENATE BILL 162
"An Act relating to the implementation of the federal
emergency unemployment compensation program; making
changes relating to unemployment compensation under the
extended benefits program and the supplemental state
benefits program; and providing for an effective date."
CS SB 162 (FIN) was reported out of Committee with "no
recommendations" and with a zero fiscal note by the
Department of Labor dated 3/12/93.
SENATE BILL 84
"An Act relating to fees for identification cards and
certain motor vehicle licenses and permits; to licenses
issued to drivers and to revocation of a license to
drive; and providing for an effective date."
JUANITA HENSLEY, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF PUBLIC SAFETY, stated that SB 84 amends
current law by requiring a holographic symbol be placed on
driver's license and identification cards to prevent illegal
11
alteration or duplication. The bill also adds a new section
to Alaska's motor vehicle driver's license of any person
under the age of 21 who uses a drivers license as fraudulent
or false identification in an attempt to gain entry or
purchase alcohol from a liquor establishment.
Ms. Hensley noted that the fiscal note passed out by the
Senate Finance Committee would not be sufficient to
adequately address the Legislation. She encouraged the
House Finance Committee to adopt the fiscal note provided by
the Department of Public Safety.
Representative Martin MOVED to report SB 84 am out of
Committee with individual recommendations and with the
fiscal note by the Department of Public Safety. There being
NO OBJECTION, it was so ordered.
SB 84 am was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Public Safety.
SENATE BILL NO. 71
"An Act relating to emergency medical services; and
repealing obsolete references to the Statewide Health
Coordinating Council and health systems agencies."
Representative Foster MOVED to report HCS SS SB 71 (HES) out
of Committee with individual recommendations and with the
accompanying fiscal notes. Representative Brown OBJECTED
for further questioning.
ANNETTE KREITZER, AIDE, SENATOR LOREN LEMAN, explained that
Sections 9 & 10 address patient information systems. She
added, the sponsor submitted a fiscal note for the
Committee's consideration of $140 thousand dollars.
Representative Foster MOVED the $140 thousand dollars fiscal
note. Representative Brown WITHDREW her OBJECTION. There
being NO further OBJECTION, it was so ordered.
CS SS SB 71 (HES) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the House
Finance Committee.
HOUSE BILL NO. 83
"An Act making appropriations for construction and
major maintenance of schools; and providing for an
effective date."
Representative Hanley provide the Committee with Amendment
12
the Anchorage School district from school construction to
school maintenance. The shift would provide 75% of the
amount needed to complete roof repairs to the Spur
Elementary School. Representative Hanley MOVED Amendment
Representative Martin MOVED CS HB 83 (FIN) out of Committee
with individual recommendations. Representative Navarre
OBJECTED.
Representative Navarre requested an additional $8.2 million
dollars for the new Kenai Elementary School. He MOVED the
additional allocation to Page 2, Line 12, noting that it
would increase the amount included in Section 2. This
amount would provide 70% of the project cost. Co-Chair
MacLean OBJECTED noting that the addition had not been
submitted for the priority list. Representative Navarre
argued that the priority list had been submitted by
Representative John Davies.
A roll call was taken on the MOTION.
IN FAVOR: Navarre, Brown, Grussendorf, Hoffman.
OPPOSED: Parnell, Therriault, Foster, Hanley,
Martin, Larson, MacLean.
The MOTION FAILED, (4-7).
The MOTION to MOVE the bill from Committee was reiterated.
Representative Navarre OBJECTED. He advised that the
allocation of funds had not fairly been distributed and
emphasized that the priority list did not reflect areas of
impact or growth. There is little flexibility in the list.
A roll call was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Brown, Foster,
Grussendorf, Hanley, Hoffman, Martin,
MacLean, Larson.
OPPOSED: Navarre.
The MOTION PASSED, (10-1).
CS HB 83 (FIN) was reported out of Committee with a "do
pass" recommendation.
SENATE BILL 100
"An Act making supplemental and special appropriations
13
for the expenses of state government; making, amending,
and repealing capital and operating appropriations; and
providing for an effective date."
Co-Chair Larson pointed out the Committee had completed
Sections 1 - 74 at the previous meeting. Section 75 was
adopted. Sections 76 - 79 are currently in discussion
between the House and the Senate budget meetings.
Section 80 provides $30 thousand dollars for the Sitka
Campus of the Katlian Vocation School. Representative
Martin asked if these projects were currently listed in the
University budget. Representative Grussendorf stated that
this component was not included in the University's budget.
Representative Grussendorf MOVED Section #80. There being
NO OBJECTION, Section #80 was adopted.
Representative Brown understood that Section #75 was the
same component included in the capital budget request for
$1.7 million dollars. She felt it was not needed in the
proposed legislation.
MEL KROSENG, AIDE, REPRESENTATIVE RAMONA BARNES, advised
that it is the Speaker's request that the allocation be
funded in the supplemental so that the Department of
Corrections can begin Project Hope this year.
Representative Brown REMOVED her OBJECTION noting that the
Department of Correction's budget is seriously underfunded
and she would like to encourage as many resources as
possible for that agency. There being NO FURTHER OBJECTION,
Section 75 was adopted.
SB 100 was HELD in Committee for further consideration.
HOUSE BILL 264
"An Act levying and providing for the collection of an
disposition of the proceeds of a fishery resource
landing tax; and providing for an effective date."
REPRESENTATIVE CARL MOSES explained HB 264. The legislation
will impact those operators who both catch and process fish
outside Alaska and bring the processed product into the
State. The legislation is aimed at catcher/processors in
the Exclusive Economic Zone ("EEZ) that currently pay no
Fisheries Business Tax.
The EEZ catcher/processors are not subject to the Fisheries
Business Tax because it only applies if fishery resources
are either caught or processed in Alaska. Since the
catcher/processors catch and process in the EEZ exclusively,
14
the Fisheries Business Tax does not apply to them.
Alaska provides significant benefits and services at the
same time incurs fishery management costs to resources.
Coupled with the impact the operations have on local Alaska
communities, the tax is one way to compensate the State for
the services.
The Fisheries Business Tax applies to unprocessed fishery
resources while the Landing Tax applies to processed fishery
resources. If the Fisheries Business Tax applies, the
Landing Tax will never be applicable. The Landing Tax only
applies if the first landing is in this State. The seller
will generally be liable for the tax. The tax is imposed on
the owner of the resource at the moment of unloading or
transfer.
(Tape Change, HFC 93 - 119, Side 1).
Co-Chair MacLean voiced her support of the legislation
stating that 89% of the factory trollers are from out of
state. She pointed out that the legislation would bring an
additional $8.6 million dollars revenue to the general fund.
Representative Grussendorf echoed Representative MacLean's
sentiments.
Representative Foster referenced a letter from the Bering
Sea Fishing Association. He noted that the Association
would like to submit an amendment to the legislation to
provide for a portion of the money be placed into a non-
profit corporation to serve specific fishery governmental
purposes. He requested additional time for consideration of
the legislation in order to accommodate further testimony.
NORM COHEN, INTERIM EXECUTIVE DIRECTOR, COASTAL VILLAGES
FISHING COOPERATIVE DEVELOPMENT, JUNEAU, ALASKA, stated that
the amendment in the proposed committee substitute is narrow
and would only allow for companies which are fishing as part
of a community development quota program to use it as a tax
credit.
He added, the money would then be available for governmental
type purposes in the communities which are part of the CDQ
program. The amount of funds available is only $2.90
thousand dollars, which would not come from a general fund
share. The programs are important and the money could allow
for government type investments.
HB 264 was HELD in Committee for further consideration.
ADJOURNMENT
15
The meeting adjourned at 10:10 a.m.
16
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