Legislature(1993 - 1994)
05/08/1994 01:10 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
May 8, 1994
1:10 P.M.
TAPE HFC 94 - 166, Side 2, #000 - end.
TAPE HFC 94 - 167, Side 1, #000 - #210.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:10 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Col. William Valentine, Director, Fish and Wildlife
Protection, Department of Public Safety; Dean Paddock,
Executive Director, Bristol Bay Drift Netters Association,
Juneau; Nancy Slagle, Director, Division of Budget Review,
Office of Management and Budget; Linda Rexwinkel, Division
of Budget Review, Office of Management and Budget.
SUMMARY
SB 316 An Act relating to commercial fishing penalties.
HCS CS SB 316 (FIN) was reported out of Committee
with "no recommendations" and with fiscal notes by
the Alaska Court System, the Department of Law
dated 3/03/94 and the Department of Public Safety
dated 3/16/94, and with a House Judiciary Letter
of Intent.
SB 357 An Act relating to certain study, publication, and
reporting requirements by and to state agencies;
relating to certain fees for reports; and
providing for an effective date.
HCS CS SB 357 (FIN) was reported out of Committee
with a "do pass" recommendation and with zero
fiscal notes by the Department of Education dated
3/14/94, the Department of Commerce and Economic
Development dated 3/14/94, 4/07/94, the Department
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of Public Safety dated 3/14/94, the Department of
Administration dated 4/21/94, 4/07/94, 3/14/94,
the Department of Transportation and Public
Facilities dated 4/21/94, the Department of
Natural Resources dated 3/14/94, the Office of the
Governor dated 4/07/94, the Department of
Environmental Conservation dated 3/14/94, the
Department of Military and Veterans and Affairs
dated 3/14/94 and the Department of Revenue dated
4/07/94.
SENATE BILL 316
"An Act relating to commercial fishing penalties."
DEAN PADDOCK, EXECUTIVE DIRECTOR, BRISTOL BAY DRIFT NETTERS'
ASSOCIATION, INC.(BBDA), JUNEAU, briefed the Committee that
BBDA's top priority is to seek a solution to the situation
existing at the North Egegik line.
He added that the record of the Alaska Board of Fisheries,
twice has shown that within the last seven years there have
been proposals submitted which could have reduced violations
at the existing boundary. Such proposals will be before the
Board at their next meeting for reconsideration of
regulations in the Bristol Bay area.
Mr. Paddock stated that BBDA does not support the current
proposal for the following reasons:
1. The penalties are proposed as a remedy to a unique
and unusual situation, yet they would affect
fishermen statewide;
2. The proposed penalties will not remedy the cause
of the problem, which may be described as the
regulatory confining of a great number of
fishermen into an extremely limited space, into
which large numbers of valuable fish migrate
rapidly, especially at certain stages of the tide;
3. The line in question is not visible but is defined
by the use of Loran C. Loran C is admitted by
all, including the Department of Public Safety, to
have a variation of at least plus or minus 100
feet or more in either direction. Thus there is
an invisible electronic line with a built-in error
of at least 200 feet. In the competitive world of
salmon fishing today, the fact creates the
existing situation. More stringent penalties will
do little to correct this.
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4. DDBA believes that the problem has now achieved a
profile which is bringing attention to the
legislation. He asked for more meaningful
consideration from the Board of Fisheries, the
Department of Fish and Game and the Department of
Public Safety; and
5. DDBA submits that no other industry of comparable
value and importance to the State would be subject
to a proposal of similar impact without being
provided a better opportunity for process
involvement.
Representative Grussendorf pointed out that the regulations
would negatively impact other small fisheries which do not
generate as much value as those in Bristol Bay.
COL. WILLIAM VALENTINE, DIRECTOR, FISH AND WILDLIFE
PROTECTION, DEPARTMENT OF PUBLIC SAFETY, emphasized that the
problem is with the greed of the fishermen. They push the
line hard to make the most money. The legislation would
provide the Department a tool to provide a larger deterrent.
Representative Navarre provided the Committee with a copy of
AS 16.05.722 which clarifies the strict liability of
commercial fishing penalties. [Copy on file]. He suggested
changing the burden of proof which would make the penalty
more stringent. He added that the legislation will not
impact the Bristol Bay area as intended, but instead impact
the low value fishery areas.
Col. Valentine commented that the Department does not want
to be in the position to be the judge, jury and enforcement
officer. Representative Navarre felt that DPS should have
the authority to provide all those services. He understood
that seizure of a vessel is allowable by current law and
should be implemented more often creating a deterrent that
would keep fishermen "towing the lawful line". The monetary
fine does not prohibit the fisherman from moving over the
line and catching the greater yield of fish.
Representative Hanley MOVED to report HCS CS SB 316 (JUD)
out of Committee with individual recommendations.
Representative Navarre OBJECTED asking for further
discussion of the Senate Resource version of the bill which
would change the burden to provide "clear and convincing
evidence".
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Hanley, Hoffman, Martin,
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Parnell, Larson.
OPPOSED: Grussendorf, Navarre.
Representatives Brown, Foster and MacLean were not present
for the vote.
The MOTION PASSED (6-2).
Representative Navarre recommended adding an additional
fiscal note to allocate money to adequately fund
enforcement. Representative Parnell advised that additional
funds were added last year for fish and wildlife protection
with no additional work load.
There being NO OBJECTIONS to the Letter of Intent, it was
adopted.
Representative Hanley MOVED to adopt the accompanying fiscal
notes. There being NO OBJECTIONS, it was so ordered.
HCS CS SB 316 (JUD) was reported out of Committee with "no
recommendations" and with a House Judiciary Letter of Intent
and with fiscal notes by the Alaska Court System, the
Department of Law dated 3/03/94 and the Department of Public
Safety dated 3/16/94.
SENATE BILL 357
"An Act relating to certain study, publication, and
reporting requirements by and to state agencies;
relating to certain fees for reports; and providing for
an effective date."
(Tape Change, HFC 94-167, Side 1).
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, explained
that SB 357 was a "housekeeping" bill which will benefit the
State by creating more efficiency in record keeping.
LINDA REXWINKEL, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, responded to a question regarding the
University. She noted that most of the items listed within
the University's report are included in normal budgetary
books. An additional report is provided to the Legislature
in the Fall, prepared in detail. That report is provided at
the beginning of the Legislative session. Representative
Navarre requested that those reports submitted by the
University make the "budget requesting consistent".
Representative Brown provided the Committee with a copy of a
memorandum written by Paul Arnoldt, Director, Workers'
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Compensation Division, Department of Labor. [Copy on file].
The memo requests a change in the Rehab Administration's
report from a fiscal year base to a calendar base, which
would bring it in line with other insurance reports. She
added that OMB supports the proposed change.
Representative Brown MOVED to adopt the amendment as
proposed by the Department of Labor. There being NO
OBJECTIONS, it was adopted.
Representative Navarre MOVED to report HCS CS SB 357 (FIN)
out of Committee with individual recommendations and with
the accompanying zero fiscal notes. There being NO
OBJECTIONS, it was so ordered.
HCS CS SB 357 (FIN) was reported out of Committee with a "do
pass" recommendation and with zero fiscal notes by the
Department of Education dated 3/14/94, the Department of
Commerce and Economic Development dated 3/14/94, 4/07/94,
the Department of Public Safety dated 3/14/94, the
Department of Administration dated 4/21/94, 4/07/94,
3/14/94, the Department of Transportation and Public
Facilities dated 4/21/94, the Department of Natural
Resources dated 3/14/94, the Office of the Governor dated
4/07/94, the Department of Environmental Conservation dated
3/14/94, the Department of Military and Veterans and Affairs
dated 3/14/94 and the Department of Revenue dated 4/07/94.
ADJOURNMENT
The meeting adjourned at 2:00 P.M.
HOUSE FINANCE COMMITTEE
May 10, 1994
10:05 A.M.
TAPE HFC 94 - 168, Side 1, #000 - #622.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 10:05 A.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
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ALSO PRESENT
Jerry Burnett, Staff, Senator Randy Phillips; Nancy Slagle,
Director, Division of Budget Review, Office of Management
and Budget; Juanita Hensley, Chief, Driver Services,
Department of Public Safety; M. Clyde Stolzfus, Special
Assistant, Commissioner's Office, Department of
Transportation and Public Facilities.
SUMMARY
SB 56 An Act relating to the budget reserve fund
established under art. IX, sec. 17, Constitution
of the State of Alaska.
CS SB 56 (FIN) was reported out of Committee with
"no recommendation" and with a fiscal note by the
Senate State Affairs Committee.
SB 365 An Act relating to the improvement of state
finances and fiscal accountability by increasing
fees, by collecting additional revenue, by
reducing certain program expenditures by changing
services or eligibility requirements for programs,
by changing certain statutory limitation periods,
by providing for use of certain electronic
records, by making changes to state agency
functions or procedures including certain
reporting and planning procedures, and by
authorizing extensions for state leases for real
property if certain savings can be achieved; and
providing for an effective date.
HCS SB 365 (FIN) was reported out of Committee
with "no recommendations" and with fiscal notes by
the Department of Public Safety dated 3/24/94, the
Office of the Governor dated 4/21/94, the
Department of Transportation and Public Facilities
dated 4/21/94, the Department of Environmental
Conservation dated 4/21/94, the Department of
Labor dated 4/21/94, the Department of Corrections
dated 4/21/94, the Department of Administration
dated 4/21/94 and the Department of Law dated
4/21/94.
SENATE BILL 56
"An Act relating to the budget reserve fund established
under art. IX, sec. 17, Constitution of the State of
Alaska."
JERRY BURNETT, STAFF, SENATOR RANDY PHILLIPS, explained SB
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56 which would implement repayment provisions made from
appropriations within the constitutional budget reserve
fund. The legislation would allow a carry forward as of
June, 30, 1994, or as much as necessary to complete the
repayment. The repayment would be transferred to that fund
by the Department of Administration after the annual
financial report was filed.
Representative Brown asked what the definition of an
unreserved balance, undesignated general fund balance. Mr.
Burnett replied that balance would be the money which had
not been restricted by law for specific use and which would
accrue to the general fund under accepted accounting
principles.
Mr. Burnett added that the provisions provided by SB 56 were
similar to those contained in HB 58, although that bill had
been found unconstitutional. SB 56 was written to be
consistent with the State's constitutional position. He
added that when the judge ruled on HB 58, he advised that
the legislation was unduly restricting funds available for
repayment. The State continues to argue that case to the
Supreme Court. The section in question of the constitution,
specifically requires that the Legislature implement it by
law and that money be taken from the general fund.
Representative Hanley MOVED to report CS SB 56 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTIONS, it was
so ordered.
CS SB 56 (FIN) was reported out of Committee with "no
recommendations" and with a fiscal note by the Senate State
Affairs Committee.
SENATE BILL 365
"An Act relating to the improvement of state finances
and fiscal accountability by increasing fees, by
collecting additional revenue, by reducing certain
program expenditures by changing services or
eligibility requirements for programs, by changing
certain statutory limitation periods, by providing for
use of certain electronic records, by making changes to
state agency functions or procedures including certain
reporting and planning procedures, and by authorizing
extensions for state leases for real property if
certain savings can be achieved; and providing for an
effective date."
JUANITA HENSLEY, CHIEF, DRIVER SERVICES, DEPARTMENT OF
PUBLIC SAFETY, explained Sections 7-22, Department of Public
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Safety amendments, from a handout provided by the Office of
Management and Budget.
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, provided a
sectional analysis of the handout "Reducing State Government
Expenditures-Sectional". [Copy on file].
Representative Martin questioned the deletion to maintenance
for the Department of Transportation and Public Facilities
(DOTPF) in Section #1.
M. CLYDE STOLZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
commented that Section #1 would be a deletion for a
transportation plan.
Representative Brown provided the Committee with Amendment
[Copy on file]. She felt that to include these items would
create a less comprehensive planning process and that less
detail would be provided by the Department of Transportation
and Public Facilities. Mr. Stolzfus agreed that the
maintenance level has been less than adequate within the
Department. However, a problem arises when a certain level
of maintenance is promised in a plan and then the Department
can not provide the service due to a lack of funds.
Representative Brown asked if a prioritized maintenance
program had been established. Mr. Stolzfus replied one had
not been because it would result in a liability problem for
the Department. He continued, by stating that Section #2
had been added by the Senate Finance Committee. Section #1
addresses the six year program, Section #2 addresses the
construction report of projects for the next construction
season.
Discussion followed between Representative Brown and Mr.
Stolzfus regarding Sections #1 & #2 and the reductions to
the level of detail which the legislation would provide.
Representative Brown asked the difference between the six
year plans proposed in Section #1 and Section #26. Mr.
Stolzfus advised that Section #26 was the report which the
Governor submits to the Legislature.
Representative Brown understood that Section #27 would
exempt DOTPF from providing the full reporting requirements
due to the Legislature on the construction of projects. Mr.
Stolzfus agreed. He added that Section #27 would eliminate
in the six year plan, the estimated cost of that project.
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Representative Brown MOVED TO AMEND Amendment #1 which would
now delete only Sections #1, #2, #27 & #28. There being NO
OBJECTIONS, it was adopted.
Representative Navarre MOVED to report HCS SB 364 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTIONS, it
was so ordered.
HCS SB 365 (FIN) was reported out of Committee with "no
recommendations" and with fiscal notes by the Department of
Public Safety dated 3/24/94, the Office of the Governor
dated 4/21/94, the Department of Transportation and Public
Facilities dated 4/21/94, the Department of Environmental
Conservation dated 4/21/94, the Department of Labor dated
4/21/94, the Department of Corrections dated 4/21/94, the
Department of Administration dated 4/21/94 and the
Department of Law dated 4/21/94.
ADJOURNMENT
The meeting adjourned at 10:50 A.M.
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