Legislature(1993 - 1994)
02/02/1994 01:35 PM House FIN
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* first hearing in first committee of referral
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HOUSE FINANCE COMMITTEE
February 2, 1994
1:35 p.m.
TAPE HFC 94-22, Side 1, #000 - end.
TAPE HFC 94-22, Side 2, #000 - end.
TAPE HFC 94-23, Side 1, #000 - 287.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:35 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
Randy Welker, Legislative Auditor; Nancy Slagle, Director,
Division of Budget Review, Office of the Management and
Budget, Office of the Governor; Jerry Luckhaupt, Legal
Counsel, Legislative Affairs Agency; Joe Ambrose, Staff,
Senator Robin Taylor.
SUMMARY INFORMATION
HJR 43 Proposing an amendment to the Constitution of the
State of Alaska relating to penal administration.
CS HJR 43 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal
impact note by the Office of the Governor, dated
1/13/95; and with two zero fiscal notes by the
Department of Public Safety and the Department of
Corrections, dated 1/13/94.
HB 372 "An Act relating to the four dam pool transfer
fund."
HB 372 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Community and Regional
Affairs.
HB 374 "An Act relating to reimbursable service
agreements and other agreements between state
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agencies for the purchase of services."
CSHB 374 (FIN) was reported out of Committee with
a "do pass" recommendation and with two zero
fiscal notes by the Office of the Governor and
Department of Administration.
HOUSE JOINT RESOLUTION NO. 43
Proposing an amendment to the Constitution of the State
of Alaska relating to penal administration.
Representative Brown MOVED to RESCIND the Committee's action
in passing CSHRJ 43 (FIN) out of Committee. There being NO
OBJECTION, it was so ordered.
Representative Brown provided members with AMENDMENT 1 (copy
on file). She explained that Amendment 1 would insert, "and
juvenile" after "criminal" on page 1, line 9. She
emphasized that "criminal" does not apply to both the
juvenile and adult systems. She recommended that the
amendment be adopted to clarify that the rights discussed in
CSHJR 43 (FIN) apply to both systems.
Representative Brown MOVED to ADOPT AMENDMENT 1. There
being NO OBJECTION, it was so ordered.
Representative Brown provided members with AMENDMENT 2 (copy
on file). She explained that Amendment 2 would add,
"allowed to be" before "informed of and"; and add, "allowed
to be" before "present" on page 1, lines 11 and 12. She
expressed concern that the right to be present and informed
not be interpreted as an absolute right.
Representative Brown MOVED to ADOPT AMENDMENT 2. There
being NO OBJECTION, it was so ordered.
Representative Brown provided members with AMENDMENT 3 (copy
on file). She explained that Representative Porter had
drafted Amendment 3. Amendment 3 would insert, "before or
after conviction" on page 1, lines 13 and 15; and "seek"
after "to" on page 1, line 14. She explained that the
language would address the issue of the use of the word
"accused". Members discussed the use of "conviction".
Representative Larson MOVED to AMEND Amendment 3 by moving
"before or after conviction" on page 1, line 15 to the end
of the sentence. There being NO OBJECTION, it was so
ordered.
Representative Brown MOVED to ADOPT AMENDMENT 3 as AMENDED.
There being NO OBJECTION, it was so ordered.
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Representative Martin was MOVED to report CSHJR 43 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HOUSE BILL NO. 372
"An Act relating to the four dam pool transfer fund."
RANDY WELKER, LEGISLATIVE AUDITOR, LEGISLATIVE AFFAIRS
AGENCY observed that HB 372 was requested by the Legislative
Budget and Audit Committee. He explained that the
Legislature failed to make an appropriation link between the
Four Dam Pool Transfer Fund and the receiving fund from
which the appropriation was made. House Bill 372 would add
language to clarify the intent of the Legislature that the
funds be appropriated for the involved projects. House Bill
372 will remove the subject to appropriation language and
insert "unless otherwise provided in an appropriation." He
stressed that expenditures cannot occur absent
appropriation.
Representative Hanley referred to a letter from the
Department of Law to Senator Taylor, dated 1/3/94, in
regards to the transfer of funds to the Southeast Energy
Fund (copy on file). He maintained that the Department of
Law was incorrect in concluding that the funds could be
transferred. He expressed support for HB 372.
JOE AMBROSE, STAFF, SENATOR ROBIN TAYLOR stressed that HB
372 would create a mechanism for inner account transfers.
Representative Brown provided members with AMENDMENT 1 (copy
on file). Amendment 1 would delete all material after
"fund", on page 1, line 6; and insert "to the general fund."
She explained that the amendment would add $12 million
dollars back to the General Fund. She stressed that the
appropriations have not yet been made. She argued that the
projects contained are not priorities of the State of
Alaska. She recommended that the Committee be fiscally
responsible.
Representative Brown MOVED to ADOPT AMENDMENT 1.
Representatives Parnell and Martin spoke in opposition to
the amendment. Representative Martin OBJECTED to the
amendment. A roll call vote was taken on the motion.
IN FAVOR: Brown
OPPOSED: Grussendorf, Hoffman, Navarre, Foster, Hanley,
Martin, Parnell, Therriault, Larson
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Co-Chair MacLean was not present for the vote.
The MOTION FAILED (1-9).
Representative Brown asked if the appropriation is a
continuing appropriation. Mr. Welker replied that the
legislation simply directs the revenue flow to a subaccount
within the General Fund. Legislative appropriation is still
required for the expenditure.
Representative Martin MOVED to report HB 372 out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Brown OBJECTED. A
roll call vote was taken on the motion.
IN FAVOR: Grussendorf, Hoffman, Navarre, Foster, Hanley,
Martin, Parnell, Therriault, Larson
OPPOSED: Brown
Co-Chair MacLean was not present for the vote.
The MOTION PASSED (9-1).
HB 372 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Community and Regional Affairs.
HOUSE BILL NO. 374
"An Act relating to reimbursable service agreements and
other agreements between state agencies for the
purchase of services."
Mr. Welker explained that HB 374 was introduced as a result
of an audit regarding fund transfers within the
Commissioner's Office, Department of Health and Social
Services. Reimbursable Service Agreements (RSA's) were used
to transfer additional funding from agencies within the
Department to the Commissioner's Office budget to increase
funding to a level not approved by the Legislature or the
Governor.
Mr. Welker stated that an agency that provides a service
will bill the agency acquiring the serve based on the actual
cost of the service or by a cost allocation method that has
been approved by Office of Budget and Management.
Representative Grussendorf asked the penalty of violating
the legislation. Mr. Welker noted that there is not penalty
in law.
Representative Brown MOVED to delete "with another agency".
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There being NO OBJECTION, it was so ordered.
Members were provided with AMENDMENT 2 from the Office of
Budget and Management (Attachment 1).
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR explained
Amendment 2. She noted that the sentence that began on page
1, line 8. She observed that the sentence is redundant.
She added that "has, by law, the authority to do so", was
also deleted. She emphasized that an agency may have the
expertise to provide a service but have the specific
authority.
Mr. Welker stressed that it is not the intent of the
Legislative Budget and Audit Committee that agencies ability
to use legitimate RSA's be impaired.
(Tape Change, HFC 94-23, Side 1)
Representative Parnell MOVED to insert on page 1, line 7,
"including the use of a reimbursable service agreement or
other agreement", after "appropriations"; and delete: "An
agency may not, through the use of a reimbursable service
agreement of other agrement transfer money between
appropriations." Delete after "However", and insert
Amendment 2 after "However". There being NO OBJECTION, it
was so ordered.
Representative Parnell MOVED to delete all language starting
on line 10, page 1; and insert new language, after
"However,", provided by the Office of Budget and Management,
in Amendment 1. There being NO OBJECTION, it was so
ordered.
Representative Martin MOVED to report CSHB 374 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 374 (FIN) was reported out of Committee with a "do
pass" recommendation and with two zero fiscal notes by the
Office of the Governor and Department of Administration.
HOUSE JOINT RESOLUTION NO. 43
Proposing an amendment to the Constitution of the State
of Alaska relating to penal administration.
Representative Brown explained that Amendment 3, previously
adopted by the Committee, neglected to assure that juvenile
adjudications would be included.
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JERRY LUCKHAUPT, LEGAL COUNSEL, LEGISLATIVE AFFAIRS AGENCY
explained that the language "before or after conviction"
would only cover situations involving adults or juveniles
waived into and convicted in an adult court. He noted that
the legislation attempts to include juvenile offenders. He
suggesetd that, "juvenile adjudication", be added to lines
13 and 15, on page 1, after "conviction".
Representative Brown MOVED to RESCIND the Committee's action
in passing CSHRJ 43 (FIN) out of Committee, for the purpose
of considering an amendment. There being NO OBJECTION, it
was so ordered.
Representative Brown MOVED to RESCIND the Committee's action
in adopting Amendment 3. There being NO OBJECTION, it was
so ordered. Representative Brown MOVED to insert, "before
or after conviction or juvenile adjudication" on page 1,
lines 13 and 15; and "seek" after "to" on page 1, line 14.
There being NO OBJECTION, it was so ordered.
Representative Martin MOVED to report CSHJR 43 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHJR 43 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Office of the Governor, dated 1/13/95; and with two zero
fiscal notes by the Department of Public Safety and the
Department of Corrections, dated 1/13/94.
ADJOURNMENT
The meeting adjourned at 2:38 p.m.
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