Legislature(1993 - 1994)
04/20/1994 08:40 AM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 20, 1994
8:40 A.M.
TAPE HFC 94-134, Side 1, #000 - end.
TAPE HFC 94-134, Side 2, #000 - end.
TAPE HFC 94-135, Side 1, #000 - 177.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 8:40 a.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
Jack Phelps, Staff, Representative Kott; Bob Poe, Director,
Division of Information and Administrative Services,
Department of Environmental Conservation; Greg Winegar,
Department of Commerce and Economic Development; Arthur H.
Snowden, II, Administrative Director, Alaska Court System;
Randy Welker, Legislative Auditor, Legislative Audit
Division; Alison Elgee, Director of Budget, University of
Alaska; Jeff Morrison, Director, Administrative and Support
Services, Department of Military and Veterans Affairs;
Annette Kreitzer, Staff, Senator Leman; Bill Pop, Soldtna;
Mike Conway, Director, Division of Spill Prevention and
Response, Department of Environmental Conservation.
SUMMARY INFORMATION
SB 33 "An Act relating to grants for local emergency
planning committees and emergency response
organizations; and providing for an effective
date."
HCS CSSB 33 (FIN) was reported out of committee with
"no recommendation" and with three fiscal
impact notes, two by the Department of
Environmental Conservation and one by the
Department of Military and Veterans Affairs.
SB 247 "An Act relating to state leases and to state
lease-purchase and lease-financing agreements, and
repealing a legislative authorization
previously given for acquisition of a facility
through a lease-purchase
agreement; and providing for an effective date."
HCS CSSB 247 (FIN) was reported out of Committee with
a "do pass" recommendation and with two zero
fiscal notes by the Department of
Administration and the Legislative Affairs Agency.
SB 251 "An Act relating to the commercial fishing revolving
loan fund and the fisheries enhancement revolving
loan fund."
HCS CSSB 251 (FIN) was reported out of Committee with
"no recommendation" and with a zero fiscal
note by the Department of Commerce and Economic
Development, dated 2/18/94.
HB 487 "An Act relating to the sale, display, or
distribution of material harmful to minors at
places where minors are present or allowed to be
present and where minors are able to view such
material; and prohibiting the sale or display of certain
audio recordings, phonograph records, magnetic
tapes, compact discs, or videotapes, without
warning labels and opaque wrappings."
HB 487 was HELD in Committee for further discussion.
SENATE BILL NO. 33
"An Act relating to grants for local emergency planning
committees and emergency response organizations; and
providing for an effective date."
Representative Brown questioned whether the bill had
sufficient public notice.
Co-Chair MacLean referred to comments by the Regional
Citizens' Advisory Council (RCAC).
ANNETTE KREITZER, STAFF, SENATOR LEMAN maintained that the
concerns of the RCAC have been addressed in SB 33. She
observed that the provision for unannounced oil spill drills
is still in the legislation.
In response to a question by Co-Chair MacLean, Ms. Kreitzer
noted that page 17, lines 7 - 8 allows the Department of
Environmental Conservation, under AS 46.04.090, to set up
oil and hazardous substance depots. She concluded that
expenses incurred under AS 46.04.090 could be funded from
the 470 Fund.
Ms. Kreitzer noted that members were provided with a
proposed committee substitute, work draft 8-LS0324\M, dated
4/18/94
(copy on file). She detailed changes made by the committee
substitute:
* "may" replaced "shall" on page 4, lines 4 and 11; "and
staffed" was deleted after "depots shall be equipped", on
page 4, line 14;
* "identified in the local plans" was added on page 3, line
23;
* Section 19 (2)(a) was reinstated on page 14;
* "who, in the opinion of the governor," was added on page
6, line 24;
* Representatives of the U.S. Department of Defense, Alaska
Command, the Federal Emergency Management Agency, the United
States Environmental Protection Agency, and the United
States Coast Guard as exofficio, non voting members of the
Commission;
* The transition provision on page 19 was amended to clarify
that the membership would change with the effective date of
the committee substitute;
* A new section was added on page 5, line 26 through 30, to
clarify that a political subdivision is not empowered "to
perform responsibilities that it is not otherwise empowered
to perform."
Co-Chair MacLean asked for further information regarding the
fiscal notes.
Representative Therriault discussed the three proposed
fiscal notes. He noted that funding is being shifted from
the Department of Environmental Conservation, Spill
Prevention and Response component to the Information and
Administrative Services component. In addition, the
Department of Environmental Conservation, Information and
Administrative Services is receiving $300.0 thousand dollars
from the 470 Fund. He noted that the Department requested
$111.8 thousand dollars in increased general fund dollars to
pay for the administrative cost of the program. The request
was refused. He stressed that the Department will have to
decide if they wish to use increased 470 Fund money for
administration or increased grants. Funding for the
Department of Military and Veterans Affairs will be through
a RSA from the Department of Environmental Conservation,
Information and Administrative Services.
BOB POE, DIRECTOR, DIVISION OF INFORMATION AND
ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION agreed that
the Response Fund Administration component will be
responsible for the RSA's. He noted that there will be an
increase in the RSA amount. He clarified that $646.7
thousand dollars will be transferred to the Department of
Military and Veterans Affairs through the Department of
Environmental Conservation.
JEFF MORRISON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF MILITARY AND VETERANS' AFFAIRS explained the Department
of Military and Veterans' Affairs fiscal note. He clarified
that funding identified in FY 95 continues as part of the
base. He noted that funding would change in FY 2000 to
reflect a reduction of $111.8 thousand dollars.
Representative Martin MOVED to ADOPT work draft 8-LS0324\M,
dated 4/18/94. There being NO OBJECTION, it was so ordered.
Representative Therriault provided members with AMENDMENT 1
(copy on file). Representative Therriault MOVED to ADOPT
AMENDMENT 1. He explained that Amendment 1 would delete
"and" to allow the Department of Military and Veterans'
Affairs to receive funding through the Department of
Environmental Conservation for the cost of preparing or
responding to requests. There being NO OBJECTION, it was so
ordered.
Representative Brown provided members with AMENDMENT 2 (copy
on file). She explained that the amendment would insert "and
all emergency plans prepared by state agencies under other
authorities." She noted that plans in the Department of
Natural Resources would be included by the amendment.
Ms. Kreitzer suggested that the amendment is unnecessary.
She referred to language on page 7, line 13.
MIKE CONWAY, DIRECTOR, DIVISION OF SPILL PREVENTION AND
RESPONSE spoke in support of Amendment 2. He noted that a
disaster could require that issues not in the Division's
program be addressed.
Representative Hanley noted that Amendment 2 would expand
the scope of the Division's review. Ms. Kreitzer stressed
that implementation of page 7, line 13 is not restricted to
AS 46. She noted that the Division would have to prioritize
its resources.
Co-Chair MacLean suggested that "prepared by state agencies
under other authority" be inserted after "plans" on page 7,
line 14. Representative Brown spoke in support of Amendmet
2. She discussed funding from the 470 Fund. She noted that
areas outside of the scope of the 470 fund would be
involved. She emphasized that there is enough demand for
funding of activities within the scope of the Fund for her
to be comfortable with the fiscal notes as presented. Mr.
Conway
expressed support for Co-Chair MacLean's suggestion. He
clarified that federal plans would not be effected by the
amendment.
Co-Chair MacLean MOVED to AMEND Amendment 2 to insert
"prepared by state agencies under other authority" after
"plans" on page 7, line 14 and on page 12, line 16. There
being NO OBJECTION, it was so ordered.
Representative Brown MOVED to ADOPT AMENDMENT 2 as amended.
Representative Martin OBJECTED. A roll call vote was taken
on the motion.
IN FAVOR: Hanley, Navarre, Therriault, Brown, Larson,
MacLean
OPPOSED: Martin, Parnell, Foster
Representatives Hoffman and Grussendorf were not present for
the vote.
The MOTION PASSED (6-3).
Co-Chair MacLean MOVED to report HCS CSSB 33 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 33 (FIN) was reported out of committee with "no
recommendation" and with three fiscal impact notes, two by
the Department of Environmental Conservation and one by the
Department of Military and Veterans Affairs.
SENATE BILL NO. 251
"An Act relating to the commercial fishing revolving loan
fund and the fisheries enhancement revolving loan fund."
Co-Chair Larson noted that SB 251 was held pending a motion
to move the bill from Committee. Representative Navarre
stated that his concerns in regards to the constitutionality
of the bill had been allayed.
Co-Chair MacLean expressed her desire to reconsider
Amendment l to SB 251.
Representative Foster WITHDREW his motion to move the bill
from Committee. There being NO OBJECTION, it was so ordered.
Co-Chair MacLean MOVED to RESCIND the Committee's action in
failing to adopt Amendment 1. Amendment 1 deletes "one-half
of" on page 6, line 8. She explained that the fifty percent
provision was not included in the original version of the
bill. She emphasized that hatchery loans would be last on
the priority list. She stressed that surplus funds should be
available for hatchery loans.
GREG WINEGAR, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT explained, in response to questions by members,
that the amendment would not adversely effect the Commercial
Fishing Fund. The Department of Commerce and Economic
Development supports the amendment. He stressed that section
8 places conditions on the use of funds. The department
would have to consult with the regional planning team,
demonstrate a significant contribution to the common
property fisheries, operate the hatchery in a manner
beneficial to the public interest and be financially viable.
Representative Hanley noted that the Commissioner is being
given the authority to expand the program.
(Tape Change, HFC 94-134, Side 2)
Representative Hanley noted that the excess funds will not
be available for use as general fund dollars. Representative
Navarre maintained that the legislature can control
approprition to the loan fund on an annual basis.
There being NO OBJECTION, the Committee's action in failing
to adopt Amendment 1 was RESCINDED. Co-Chair MacLean MOVED
to ADOPT AMENDMENT 1. Representative Hanley OBJECTED. A roll
call vote was taken on the motion
IN FAVOR: Martin, Navarre, Brown, Grussendorf, Larson,
MacLean
OPPOSED: Hanley, Therriault, Parnell, Foster
Representative Hoffman was not present for the vote.
The MOTION PASSED (6-4).
Representative Hanley MOVED to report HCS CSSB 251 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 251 (FIN) was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Commerce and Economic Development, DATED
2/18/94.
SENATE BILL NO. 247
"An Act relating to state leases and to state lease-purchase
and lease-financing agreements, and repealing a legislative
authorization previously given for
acquisition of a facility through a lease-purchase
agreement; and providing for an effective date."
ARTHUR H. SNOWDEN, II, ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM provided members with information regarding state
acquisition of the Anchorage Times Building (copy on file).
He noted that an appraiser estimated that the state could
save $3.7 to $4.0 million dollars by the purchase. In order
to complete the purchase the effective date on the bill as
it relates to the Alaska Court System would have to be
moved. He noted that the members have received a committee
substitute, work draft, 8-LS1447\I, dated 4/19/94 (copy on
file). He stated that the committee substitute would change
the effective date to allow sufficient time to complete the
purchase. He assured members that no other purchases are
anticipated.
RANDY WELKER, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT
DIVISION testified that the Legislative Budget and Audit
Committee has been concerned about several lease purchases
that have occurred in the recent past. He explained that the
legislation would require that all branches of government
obtain prior, specific, legislative approval, by law, to
proceed with lease purchases. He observed that the
legislation lowers the threshold whereby agencies must give
notice to the legislature to enter or renew leases.
Representative Martin expressed concern with the extension
of legislative authority. Mr. Welker stressed that the
language clarifies rather than expands authority. He noted
that lease purchase statutes require that the Legislative
Budget and Audit Committee, Legislative Council and the
judicial branch give notice to the full legislature that
they intend to enter into a lease purchase. The statute
would be amended to add the requirment of legislative
approval. He acknowledged that the legislation further
limits the authority of the Legislative Council.
Co-Chair Larson MOVED to ADOPT work draft, 8-LS1447\I, dated
4/19/94. There being NO OBJECTION, it was so ordered.
Co-Chair MacLean MOVED to ADOPT AMENDMENT 1 (copy on file).
She explained that the amendment would add a repealer. The
repealer was included in other versions of the bill. It
would repeal authorization for a Fairbanks court house given
in 1986. She stressed that it is the only outdated lease
purchase authorization.
Mr. Snowden spoke against Amendment 1. He stressed that the
legislature would have to approve funding for design and
engineering before a lease purchase could take place. He
added that the need for a Fairbanks court house exists. He
reiterated that the Alaska Court System would seek approval
for design and engineering before a lease purchase would
take place in Fairbanks.
Representative Hanley noted that some lease purchases were
completed through certificates of participation between two
agencies. Mr. Snowden emphasized that before he could enter
into a certificate of participation the building price would
have to ascertained. He stressed that before the building
price was ascertained he would need to seek funding from the
legislature for design and engineering.
A roll call vote was taken on the motion to adopt AMENDMENT
1.
IN FAVOR: Martin, Parnell, Hanley, MacLean, Larson OPPOSED:
Navarre, Therriault, Brown, Grussendorf
Representatives Foster and Hoffman were not present for the
vote.
The MOTION PASSED (5-4).
Co-Chair Larson provided members with AMENDMENT 2 (copy on
file). He explained that the amendment would add the
following language: "The Board of Regents may, when leases
are to be paid for with federal grant funds, recovery of
indirect costs of university activities, or other university
receipts as defined by AS 14.40.491, and grant or other
commitment is firm for two years or less, enter into a lease
with an initial term equal to the term of the firm
commitment, and with optional renewal periods for up to five
years."
Mr. Welker clarified that all receipts of the University
other than general fund money is included under AS
14.40.491.
ALISON ELGEE, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA
explained that all non-federal contract work is accounted
for under university receipts. She explained that the
University of Alaska frequently receives federal or other
contracts with a one year firm commitment that could
potentially be extended for several years. As written, SB
247 presently limits the University to a one year lease,
with a one year renewal option. The amendment would allow up
to five one year renewal options. She emphasized that if the
market declines the University would rebid the lease.
In response to a question by Representative Hanley, Ms.
Elgee clarified that student fees are a separate category
not included in university receipts under AS 14.
There being NO OBJECTION, AMENDMENT 2 was ADOPTED.
Representative Navarre noted that the only change in HCS
CSSB 247 (FIN) is section 12. Mr. Welker noted that he had
no objection to section 12, which extends the effective date
for the Anchorage court house lease purchase.
In response to a question by Representative Martin, Mr.
Welker reiterated that any lease that exceeds $500.0
thousand dollars or is 2.5 percent over the term must be
approved by the legislature. Only new leases would be
effected.
Co-Chair MacLean MOVED to report HCS CSSB 247 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes.
HCS CSSB 247 (FIN) was reported out of Committee with a "do
pass" recommendation and with two zero fiscal notes by the
Department of Administration and the Legislative Affairs
Agency.
HOUSE BILL NO. 487
"An Act relating to the sale, display, or distribution of
material harmful to minors at places where minors are
present or allowed to be present and where minors are able
to view such material; and prohibiting the sale or display
of certain audio recordings, phonograph records, magnetic
tapes, compact discs, or videotapes, without warning labels
and opaque wrappings."
JACK PHELPS, STAFF, REPRESENTATIVE PETE KOTT spoke on behalf
of HB 487. He stated that the purpose of the legislation is
to reduce the unwanted exposure of minors to obscene
material. He noted that the bill was based on the Supreme
Court decision Miller versus California which defines
~'obscenity." He asserted that the legislation does not
impact first amendment rights. The bill would make it
illegal to sell or rent obscene material to minors. The
legislation requires that adult obscene material be covered
or placed behind blinder racks.
In response to a question by Representative Navarre, Mr.
Phelps clarified that obscene music would be effected.
Representative Navarre referred to page 1, line 12 through
14. He asked if the "average adult person" and "contemporary
community standards" are defined in statute. Mr. Phelps
stated that "contemporary community standards" is defined as
"prevailing in the state as a whole." He stressed that the
language was developed by the United States Supreme Court.
Co-Chair MacLean asked who decides if "material lacks
serious
literary, scientific, educational, artistic, or political
value for minors." She asked if the Old Testament would be
censored since it depicts naked persons. She asked the
meaning on page 3, line 24, for male genitals to be covered
in a discernible turgid state.
BILL POPS, SOLDTNA testified via the teleconference network
in opposition to HB 487. He expressed concern with who would
make decisions in regards to contemporary community
standards. He questioned if first amendment rights would be
violated. He owns a music and bookstore. He stressed that it
would be impossible for him to preview every piece of
literature or music sold by his store. He urged the
Committee to not pass HB 487.
In response to a question by Representative Therriault, Mr.
Pops suggested the legislation would be improved if it were
narrowed to target adult magazines and movies.
In response to a question by Representative Martin, Mr. Pops
clarified that his major concern is in regards to page 3,
section 1.
Representative Brown objected to the legislation based on
freedom of speech concerns.
(Tape Change, HFC 94-135, Side 1)
Representative Therriault MOVED to AMEND HB 487 on page 3,
line 19 to delete "record, compact disc and recording tape."
Representative Therriault explained that the amendment was
offered to narrow the scope. He felt that adult magazines
and videos should be kept out of the reach of children.
Representative Navarre wondered if "video" should also be
deleted. He suggested that the legislation could be amended
to require sexually explicit video tapes to be kept in a
separate section. He stressed the difficulty in categorizing
videos.
Mr. Phelps pointed out that the legislation provides that
the person must knowingly sale, rent, or display items
covered by the definition. He stressed the definition of
obscenity has been approved by the Supreme Court. He
emphasized that the U.S. Supreme Court has said that obscene
material does not fall under the protection of the first
amendment. He noted that Anchorage has a similar ordinance.
Representative Martin OBJECTED to the motion to amend HB
487. A roll call vote was taken on the motion.
IN FAVOR: Brown, Hanley, Grussendorf, Navarre, Parnell,
Therriault, MacLean, Larson
OPPOSED: Martin
Representative Hoffman was not present for the vote.
The MOTION PASSED (8-1).
Representative Brown MOVED to TABLE CSHB 487 (FIN).
Representative Therriault OBJECTED. A roll call vote was
taken on the motion.
IN FAVOR: Brown, Grussendorf, Navarre, MacLean
OPPOSED: Hanley, Martin, Parnell, Therriault
Representative Hoffman was not present for the vote.
The MOTION FAILED (4-5).
Co-Chair MacLean spoke in opposition to CSHB 487 (FIN).
Representative Therriault MOVED to report CSHB 487 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal note. Co-Chair MacLean OBJECTED.
Representative Navarre spoke against moving the bill from
Committee. He stressed that the legislation needs work. He
maintained that the legislation makes sweeping changes with
unknown consequences. A roll call vote was taken on the
motion.
IN FAVOR: Hanley, Martin, Parnell, Therriault
OPPOSED: Brown, Grussendorf, Navarre, MacLean
Representative Hoffman was not present for the vote.
The MOTION FAILED (4-5).
Representative Navarre MOVED to RESCIND the Committee's
action in failing to move CSHB 487 (FIN) from Committee. A
roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, MacLean, Larson
OPPOSED: Hanley, Martin, Navarre, Parnell, Therriault
Representative Hoffman was not present for the vote.
The MOTION FAILED (4-5).
ADJOURNMENT
The meeting adjourned at 10:20 a.m.
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