Legislature(1995 - 1996)

02/20/1995 01:34 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                        February 20, 1995                                      
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 95-23, Side 2, #000 - end.                                          
  TAPE HFC 95-24, Side 1, #000 - end.                                          
  TAPE HFC 95-24, Side 2, #000 - 481.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House Finance  Committee                 
  meeting to order at 1:34 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Representative Brown          Representative Navarre                         
  Representative Grussendorf    Representative Parnell                         
  Representative Kelly          Representative Therriault                      
  Representative Martin                                                        
  Representative Mulder                                                        
                                                                               
  Co-Chair Foster was absent from the meeting.                                 
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Rod  Mourant,   Staff,  Representative  Kott;   Mike  McGee,                 
  Director,  Permanent Fund  Dividend Division,  Department of                 
  Revenue;   Mike   Greany,   Director,  Legislative   Finance                 
  Division;  Randy  Welker,  Legislative Auditor,  Legislative                 
  Audit Division.                                                              
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 4      An Act  relating to  absences from  the state  for                 
            purposes  of  determining   residency  under   the                 
            permanent fund dividend program; and providing for                 
            an effective date.                                                 
                                                                               
            CSHB 4 (STA) was reported  out of Committee with a                 
            "do pass"  recommendation and  with a zero  fiscal                 
            note by the Department of Revenue, dated                           
                                                                               
  HB 183    An Act extending  the requirements of  preliminary                 
            evaluation, notice, and prior legislative approval                 
            of  certain  lease-purchase agreements  to include                 
            proposed  improvements  to   real  property;   and                 
            providing for an effective date.                                   
                                                                               
            HB  183   was  HELD   in  Committee   for  further                 
                                                                               
                                1                                              
                                                                               
                                                                               
            discussion.                                                        
                                                                               
  HJR 5     Proposing  amendments to  the Constitution  of the                 
            State of Alaska relating to terms of legislators.                  
                                                                               
            HJR  5   was  HELD   in   Committee  for   further                 
            discussion.                                                        
  HOUSE BILL NO. 183                                                           
                                                                               
       "An  Act  extending  the  requirements  of  preliminary                 
       evaluation, notice,  and prior legislative  approval of                 
       certain lease-purchase agreements  to include  proposed                 
       improvements  to  real property;  and providing  for an                 
       effective date."                                                        
                                                                               
  Co-Chair Hanley, sponsor of HB 183, gave a brief overview of                 
  the legislation.   He referred to problems past legislatures                 
  have  experienced with  certificates of  participation.   He                 
  emphasized that  past  legislatures  have  enacted  laws  to                 
  restrict  financing  and  require legislative  approval  for                 
  acquisition by issuance of certificates of participation.                    
                                                                               
  Co-Chair  Hanley  noted  plans  by  the  Alaska  Psychiatric                 
  Institute  (API) to  use  certificates of  participation  to                 
  finance a $63.0  million dollar  facility.  The  Legislature                 
  approved funding  for the  constriction of  a $28.0  million                 
  dollar facility in the FY 95 operating budget.   He observed                 
  that current  statutes address  "acquisition" of  facilities                 
  not  "building" of facilities.   The legal  argument is that                 
  certificates  of  participation  do  not  represent  general                 
  obligation  debt to  the  State.   Debt  on certificates  of                 
  participation is secured  by the asset.  He noted  that if a                 
  new  API  building  is expanded,  beyond  the  $28.0 million                 
  dollars authorized  by the  legislature, an  asset could  be                 
  claimed in which the State has invested.  He emphasized that                 
  there   is   no  limit   on   spending  if   certificate  of                 
  participation financing is used.                                             
                                                                               
  Co-Chair Hanley explained that  the legislation will address                 
  the problem  by adding "or  improvement" to the  property to                 
  prevent improvement through lease-purchase of real property.                 
                                                                               
  Representative   Brown   queried   if   the   addition    of                 
  "improvement"   would   address   the  intent   to   prevent                 
  construction   of   new   facilities   without   legislative                 
  authorization.                                                               
                                                                               
  Representative   Parnell   agreed  that   the   addition  of                 
  "construct"  would   further  modify  the   legislation  and                 
  alleviate confusion.   He concluded that the  legislation as                 
  written would address  the problem.   He explained that  the                 
                                                                               
                                2                                              
                                                                               
                                                                               
  underlying land is real property.   The legislation requires                 
  legislative authorization for improvement of real  property.                 
  Any building  on real property would  constitute improvement                 
  of the property.                                                             
                                                                               
  Representative  Martin  provided  members with  Amendment  1                 
  (Attachment 1).  The amendment would  limit the authority of                 
  the Alaska Housing  Finance Corporation (AHFC) to  use money                 
  or another asset  of the corporation to  acquire, construct,                 
  improve, or repair  a building for the corporation's use and                 
  occupancy.     Representative  Martin  observed   that  AHFC                 
  approached the  Legislative Budget and Audit  Committee with                 
  the  concept of  constructing a new  building.   He observed                 
  that the  Legislative Budget  and Audit  Committee does  not                 
  have the authority to approve  total appropriations for long                 
  range contracts.   He  pointed out  that a  majority of  the                 
  Legislature does not currently approve  of this budget item.                 
  He observed that AHFC has contracted out for an architecture                 
  design of a new building.  Land has not yet been purchased.                  
                                                                               
  Representative  Martin  accentuated  that all  Requests  For                 
  Proposal's for lease or purchase of office space are subject                 
  to annual appropriation  by the legislature.   He emphasized                 
  that the amendment would close another  loop hole and send a                 
  message to AHFC.                                                             
                                                                               
  Representative  Brown  agreed  with Representative  Martin's                 
  concerns, but pointed out the broad nature of the amendment.                 
  She  questioned  if  AHFC's   ability  to  repair   existing                 
  facilities  should  be   restricted.     She  asked  if   an                 
  appropriation  through  the  budget   process  would  be  an                 
  authorization.                                                               
                                                                               
  Representative Martin argued in favor of retaining "repair".                 
  He noted that a repair could be a major face lift.                           
                                                                               
  Representative Therriault asked for further clarification of                 
  the  last  sentence  on line  11  of  the  amendment:   "For                 
  purposes  of  this  subsection,  an  appropriation  for  the                 
  proposed acquisition, construction,  improvement, or  repair                 
  does not constitute approval of the project."                                
                                                                               
  RANDY   WELKER,   LEGISLATIVE  AUDITOR,   LEGISLATIVE  AUDIT                 
  DIVISION                                                                     
  explained that the  language was drafted by the  Division of                 
  Legal Services.   He  noted that  the amendment was  drafted                 
  with the  intention of  implementing the  strictest standard                 
  requiring legislative  approval.   He observed  that in  the                 
  leasing section of the procurement code, for the purpose  of                 
  a lease,  an appropriation does constitute approval.  In the                 
  lease financing section of existing statute an appropriation                 
  does not constitute approval.  Separate legislative approval                 
                                                                               
                                3                                              
                                                                               
                                                                               
  is required by law.                                                          
                                                                               
  MIKE GREANY, DIRECTOR,  LEGISLATIVE FINANCE DIVISION pointed                 
  out that  language contained  in  the front  section of  the                 
  operating budget provides that all  funding received by AHFC                 
  is appropriated to AHFC for  whatever purpose their statutes                 
  allow.                                                                       
                                                                               
  Mr.  Greany  clarified  that  any  project  exceeding  $25.0                 
  thousand dollars which continues beyond a year is considered                 
  a capital project.                                                           
                                                                               
  Mr. Welker  noted that  the amendment  is very  restrictive.                 
  The  Alaska  Housing Finance  Corporation's ability  to make                 
  repairs on  their existing  facility would  be limited.   He                 
  observed  that  elimination  of  "repair"  would   allow  an                 
  appropriation to constitute approval for a repair.                           
                                                                               
  Representative Navarre spoke in  support of allowing repairs                 
  without legislative  approval.   He  acknowledged that  AHFC                 
  should be required  to obtain  legislative approval for  new                 
  construction.                                                                
                                                                               
  Representative  Therriault  questioned   if  two  pieces  of                 
  legislation would  be needed  to allow  new construction  by                 
  AHFC if HB 183 is enacted.                                                   
                                                                               
  Mr. Welker stated  that appropriation legislation would  not                 
  be  enough.     Authorizing  legislation  would  be  needed.                 
  Representative Therriault queried if authorizing legislation                 
  would suffice without a separate appropriation.                              
                                                                               
  Representative  Brown  did   not  think  that  appropriation                 
  legislation  would  be  needed   separate  from  authorizing                 
  legislation.  She pointed out that the legislation  will not                 
  be  adopted in time  to prevent construction  of the project                 
  currently being proposed by AHFC.                                            
                                                                               
  Representative  Martin  asserted  that  two  bills  would be                 
  necessary.  Co-Chair Hanley pointed out that lease-purchases                 
  are handled  differently  than  actual  construction.    New                 
  building construction  does not require  authorization other                 
  than  in an  appropriation  bill.    Representative  Navarre                 
  agreed that  absent specific  statutory prohibition  against                 
  construction an appropriation is sufficient.                                 
                                                                               
  Co-Chair  Hanley   asked  if   an  appropriation   from  the                 
  legislature is necessary  for any  of the AHFC's  functions.                 
  He concluded that if statutes  require an appropriation from                 
  the  legislature  for  any  of   AHFC's  functions  then  an                 
  authorization law and appropriation would be required.                       
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  Mr. Welker pointed out that AHFC can use its general bonding                 
  authority to generate bond proceeds which are not subject to                 
  an appropriation in order to  raise capital.  The  amendment                 
  clarifies  that  AHFC  cannot  use  their  general   bonding                 
  authority to acquire facilities.                                             
                                                                               
  Representative Navarre observed that  another housing market                 
  down-turn could result  in AHFC's control of  houses needing                 
  repair before resale.                                                        
                                                                               
  Representative  Martin  referred  to  the  purchase  of  the                 
  Department of Environmental Conservation building.  Co-Chair                 
  Hanley  reiterated the  need  to  close  loop holes  in  the                 
  statutes.                                                                    
                                                                               
  Representative Therriault concluded that AHFC would not need                 
  a   separate  line   item  appropriation   in  addition   to                 
  authorizing legislation.   Co-Chair Hanley  agreed with  his                 
  conclusion.                                                                  
                                                                               
  Representative Parnell pointed  out that  an improvement  to                 
  property is  a repair.  He  asked if there are  other public                 
  agencies or quasi  public corporations  like AHFC that  have                 
  similar bonding authority which should be addressed.                         
                                                                               
  Mr.  Welker  noted that  the  legal definition  of "improve"                 
  includes  "to increase the value or good qualities of, mend,                 
  repair".                                                                     
                                                                               
  Representative  Brown suggested  that the  Alaska Industrial                 
  Development  and Export  Authority  (AIDEA)  and the  Alaska                 
  Railroad  Corporation  may be  in  similar situations.   Mr.                 
  Welker  added  that  certain aspects  of  the  University of                 
  Alaska's operations are not subject  to the Executive Budget                 
  Act.                                                                         
                                                                               
  Representative  Brown observed AHFC's  duties and powers are                 
  the subject of HB  189:  "An Act requiring that, in addition                 
  to  its  operating  budget,  all  activities of  the  Alaska                 
  Housing  Finance Corporation  are subject  to the  Executive                 
  Budget Act."   She suggested that the amendment be addressed                 
  in HB 189.                                                                   
                                                                               
  Representative  Martin  acknowledged  that  HB  189 is  more                 
  inclusive and  resolves the  long range problem.   He  noted                 
  that if AHFC pursues the construction project an increase in                 
  the  FY  96   or  FY   97  AHFC  budget   will  be   needed.                 
  Representative  Brown  observed that  the  amendment is  not                 
  retroactive.    Representative  Martin  emphasized that  the                 
  amendment  would send  a message  to AHFC.   Co-Chair Hanley                 
  suggested  that the Legislative  Budget and  Audit Committee                 
  made the Legislature's position clear.                                       
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative  Kohring pointed out  that AHFC  has received                 
  the message that there is concern about  proceeding with the                 
  construction.   He assured members that AHFC  will look hard                 
  at putting  the breaks  on the  project  if the  Legislature                 
  disapproves.  He  noted that  AHFC is currently  determining                 
  the ramifications of cancelling the contracts.                               
                                                                               
  Representative Martin asserted that AHFC did not provide the                 
  legislature with all the available facts.  He reiterated the                 
  need to close a loop hole regarding lease-purchases.                         
                                                                               
  Representative  Kohring  asked  for a  list  of  other state                 
  agencies which are not  subject to the Executive Budget  Act                 
  in regards to bonding authority.                                             
                                                                               
  (Tape Change, HFC 95-24, Side 1)                                             
                                                                               
  Representative  Kohring stressed  that AHFC  felt that  they                 
  could  save the  State  money.   He  emphasized that  AHFC's                 
  intent was good.                                                             
                                                                               
  Representative Navarre  referred  to the  5 percent  housing                 
  loan program initiated by AHFC.                                              
                                                                               
  Amendment 1 was held.                                                        
                                                                               
  HB 183 was HELD in Committee for further discussion.                         
  HOUSE JOINT RESOLUTION NO. 5                                                 
                                                                               
       Proposing amendments  to the Constitution  of the State                 
       of Alaska relating to terms of legislators.                             
                                                                               
  Representative Therriault, sponsor  of HJR  5, gave a  brief                 
  overview of the  legislation.  He noted that  the resolution                 
  is designed  to bring  term limits  to the  State of  Alaska                 
  Legislature.  He  observed that  the legislation treats  the                 
  House and  Senate the same.   Members of each body  would be                 
  limited  to twelve  regular sessions  of continuous  service                 
  before being required  to depart  for two regular  sessions.                 
  He noted  that discussions  had suggested  that term  limits                 
  from 8 to  16 years be adopted.   He observed  that "regular                 
  sessions"  served  will  be  used  to  calculate  "sessions"                 
  served.  A person  could not serve more than  12 consecutive                 
  regular legislative sessions.   They  could not hold  office                 
  again until two regular legislative sessions have elapsed.                   
                                                                               
  Representative Therriault observed that  section 2 clarifies                 
  that  special sessions  do not  count toward the  12 regular                 
  sessions.    He  added that  the  House  Judiciary Committee                 
  amended  the  legislation  to  allow  a Senate  term  to  be                 
                                                                               
                                6                                              
                                                                               
                                                                               
  completed if the 12 years fell in the middle of a term.                      
                                                                               
  Representative  Therriault  noted  that a  member  could  be                 
  appointed to  serve before,  during  or after  they run  for                 
  elective office.  The legislation states that an appointment                 
  to fill  a vacancy shall  not be considered  when tabulating                 
  tenure,  unless  it is  the result  of resignation  from one                 
  House to fill the appointment in the other House.                            
                                                                               
  Representative  Navarre  expressed support  for  HJR 5.   He                 
  preferred an immediate  effective date.   He suggested  that                 
  House terms be staggered terms of four years.  He emphasized                 
  the high expense  and time required  to ensure a  successful                 
  election.                                                                    
                                                                               
  In   response  to  a   question  by  Representative  Mulder,                 
  Representative Therriault clarified that any combination  of                 
  House and Senate  service that  equals 12 consecutive  years                 
  would trigger the cut off, unless the individual is half way                 
  through a Senate term,  in which case they would  finish the                 
  term.                                                                        
                                                                               
  Representative Therriault stressed problems  associated with                 
  an immediate effective  date.  He noted  that the resolution                 
  would  not  be  voted  on  untill  the next  election.    He                 
  emphasized that members could be immediately cut off if they                 
  have served 12 years, even if they were just elected.                        
                                                                               
  Representative Kelly questioned  if a series of  plans could                 
  be put on the ballot.  Representative Therriault stated that                 
  a resolution could not  list different options.  He  did not                 
  feel that a member's  effectiveness would be limited by  the                 
  knowledge that they would  not be allowed to run  during the                 
  next election.   He stressed that  they could run after  the                 
  two year waiting period.   He emphasized that the  intent is                 
  to try and reduce the incumbent's advantage.                                 
                                                                               
  Representative  Brown  suggested  that  the  resolution   be                 
  effective two  years after  being adopted  during a  general                 
  election.    She  questioned the  necessity  of  creating an                 
  exception for members being appointed to another House.  She                 
  asked  how  appointments would  be counted.   Representative                 
  Therriault clarified  that appointments  would not be  count                 
  toward  the  12 years.    He  clarified that  the  intent in                 
  providing an exception for members who resign from one House                 
  to fill the  appointment in the  other House, is to  prevent                 
  the appointment from being interpreted as a break in service                 
  that would invalidate the prior time served.                                 
                                                                               
  Representative Navarre noted the high percentage of turnover                 
  among House members.                                                         
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative Martin  emphasized that  the resolution  will                 
  result  in   public  debate.     He   emphasized  that   the                 
  constitutional amendment  needs to  be clearly  stated.   He                 
  observed  that  the  National  State Legislative  Conference                 
  recommends term limits of 12 years.                                          
                                                                               
  Representative  Therriault  agreed  that  the  Alaska  State                 
  Legislature has a healthy turnover.  He emphasized  that the                 
  legislation is designed for the exception.  He argued that a                 
  member can effectively serve their district in 12 years.  He                 
  reiterated that a  member can run  again after the two  year                 
  break.                                                                       
                                                                               
  In  response  to  a  question   by  Representative  Parnell,                 
  Representative  Therriault observed  that the  United States                 
  Supreme Court  has agreed  to take  under consideration  the                 
  State of Arkansa's Supreme Court ruling that the State could                 
  not restrict eligibility of federal candidates.                              
                                                                               
  Representative  Kelly stated his preference for the addition                 
  of "in one  body" after "consecutively"  on page 1, line  9;                 
  and the change from "12" to  "8".  The amendment would allow                 
  a person to serve 8  years in the House and then  8 years in                 
  the Senate without a break.                                                  
                                                                               
  Co-Chair Hanley  clarified that a  person would have  to sit                 
  out two  years  before  serving  again  in  the  same  body.                 
  Representative Brown asked if subsection (c) on page 2 would                 
  be affected.  Co-Chair Hanley pointed out that the amendment                 
  as suggested would  allow a  member to return  to the  House                 
  after serving  8 years  in the  Senate  and 8  years in  the                 
  House.  A  member could continue  to serve if they  switched                 
  bodies every 8  years.   Representative Kelly clarified  his                 
  intent that a member be allowed to  serve eight years in the                 
  House then  8 years in  the Senate, and then  be required to                 
  sit out  two years  before returning to  service.   Co-Chair                 
  Hanley  suggested  that  the  amendment  would need  further                 
  drafting.                                                                    
                                                                               
  Representative   Martin   reiterated   that   constitutional                 
  amendments should be short and clear.                                        
                                                                               
  Representative Therriault  pointed out that members that did                 
  not move  to the Senate would  be limited to eight  years in                 
  the House.   He argued in favor  of the original bill.   Co-                 
  Chair   Hanley   expressed   support    for   Representative                 
  Therriault's original version.                                               
                                                                               
  Representative Kelly argued that the right of the people  to                 
  elect the  representative of choice should be protected.  He                 
  asserted that the needs of the district must be considered.                  
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative Therriault noted that  22 states have  passed                 
  initiatives  to  limit  the  terms  of  their  congressional                 
  members.  Of those  22 all but  2 (Alaska and North  Dakota)                 
  have   also   enacted   term   limits   for   their    state                 
  representatives.                                                             
                                                                               
  HJR 5 was HELD in Committee for further discussion.                          
                                                                               
  (Tape Change, HFC 95-24, Side 2)                                             
  HOUSE BILL NO. 4                                                             
                                                                               
       "An  Act  relating  to  absences  from  the  state  for                 
       purposes of  determining residency under  the permanent                 
       fund dividend program; and  providing for an  effective                 
       date."                                                                  
                                                                               
  ROD MOURANT, STAFF, REPRESENTATIVE KOTT maintained that HB 4                 
  will remedy a problem caused in a recent court ruling.   The                 
  ruling  disallowed Permanent Fund Dividend (PFD) payments to                 
  spouses  of  PFD recipients  while accompanying  an eligible                 
  spouse  out   of  state  on  an  allowable   absence.    The                 
  legislation  would   allow  individuals  who   accompany  an                 
  eligible  spouse out  of state  on an  allowable absence  to                 
  retain their  eligibility for  a PFD  if that  was the  only                 
  reason that  the spouse was  disallowed.  He  explained that                 
  the  legislation applies  retroactively to January  1, 1994.                 
  This was the first time the Permanent Fund Dividend Division                 
  disallowed dividends  for that reason.   He cited  two cases                 
  involving local residents.  He noted  that there is a $600.0                 
  hundred  dollar current  year fiscal  note accompanying  the                 
  legislation.   The fiscal  note will  fund costs  associated                 
  with  contacting individuals  that have  not repealed  their                 
  denial.                                                                      
                                                                               
  Representative  Brown noted  that  the legislation  contains                 
  language similar to  HB 392, which was introduced during the                 
  Eighteenth  Legislative  Session.     She  noted  that  some                 
  provisions of HB 392 were enacted as regulations.                            
                                                                               
  MIKE MCGEE, CHIEF OF PFD OPERATIONS, PERMANENT FUND DIVIDEND                 
  DIVISION,  DEPARTMENT  OF REVENUE  explained that  the court                 
  ruled  that  the regulation  was  in conflict  with existing                 
  statute.  The law stated that the Division could not use the                 
  residency  of  a   spouse  as  the  primary  source   of  an                 
  individual's  eligibility.    The  intent  is  to   separate                 
  absences from residency.                                                     
                                                                               
  Representative Mulder asked for further clarification of the                 
  insertion of  "maintains and  demonstrates at  all times  an                 
  intent" and deletion of "intends" on line 27  and 18 on page                 
  2.   Mr. McGee  explained  that the  change was  made to  be                 
                                                                               
                                9                                              
                                                                               
                                                                               
  consistent with  the definition  of "residency" in  existing                 
  statute.                                                                     
                                                                               
  Representative  Brown noted  that  HB 392  proposed  sixteen                 
  allowable absences.  She  observed that HB 4 contains  eight                 
  allowable absences.   Mr.  Mourant explained  that only  the                 
  existing  allowable  absences  were  included   due  to  the                 
  complexity of the issue.                                                     
                                                                               
  Co-Chair Hanley noted that the  legislation does not specify                 
  that absences for educational purposes  must be due to full-                 
  time  participation.    Mr. McGee  stated  that  regulations                 
  specify  full-time   status  of   good   standing  must   be                 
  maintained.                                                                  
                                                                               
  Representative Martin noted  that PFD checks were  denied to                 
  many students  in the previous  year.   Mr. McGee  discussed                 
  reasons    students    were    denied    their    dividends.                 
  Representative  Navarre  noted   that  many  students   were                 
  enrolled  to  vote   on  their  campuses  during   the  last                 
  presidential  election.    Out-of-state  voter  registration                 
  challenges their intent to return to Alaska.                                 
                                                                               
  In response  to a  question by  Representative Navarre,  Mr.                 
  McGee noted that dividends will be  paid from the subsequent                 
  year's  permanent fund dividend.  Payments  made as a result                 
  of the  legislation would  be identified  with the  dividend                 
  payment.                                                                     
                                                                               
  Representative Brown observed that HB 392 would have allowed                 
  absences  while "attending  a special  education program  to                 
  assist in the treatment of learning or physical disabilities                 
  or   treatment  of   mental  disorders   if  attendance   is                 
  recommended by a licensed  physician, psychologist, physical                 
  therapist, or the commissioner of  eduction; attending full-                 
  time  technical  training  as  part  of a  career  education                 
  program recognized by the Alaska commission on Postsecondary                 
  Education; and attending full-time an academic  institution,                 
  seminar,  or  other   program  for  continuing  professional                 
  educational development, including  a sabbatical, legal,  or                 
  accounting program, recognized  by the Alaska  Commission on                 
  Postsecondary Education."  She noted  that the Department of                 
  Revenue requested the changes contained in HB 392.                           
                                                                               
  Mr.  Mourant  observed  that  the  legislation  was  drafted                 
  independent of  the Department  of Revenue.   He noted  that                 
  item  eight  is the  only  item  not contained  in  existing                 
  statute, AS 43.23.095 (8).                                                   
                                                                               
  Mr. McGee noted  that the absences quoted  by Representative                 
  Brown  are  included  in  regulation.   Mr.  McGee  provided                 
  members  with  a  copy of  the  regulations,  15 AAC  23.163                 
                                                                               
                               10                                              
                                                                               
                                                                               
  (Attachment 2).                                                              
                                                                               
  Representative  Kohring  spoke  in  support  of  HB 4.    In                 
  response to a question by  Representative Kohring, Mr. McGee                 
  reiterated  that funding  will  be  paid  out  of  the  over                 
  estimation of this  year's dividend or  off the top of  next                 
  year's dividend payment.   He  added that individuals  whose                 
  1992 and 1993 PFD's were denied  for other reasons and their                 
  denial overturned by appeal would also be paid.                              
                                                                               
  Representative Mulder  MOVED to report  CSHB 4 (STA)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.                                                    
                                                                               
  CSHB 4  (STA) was reported out of Committee with a "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Revenue, dated 2/1/95.                                                    
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:40 p.m.                                           
                                                                               
                                                                               
                               11                                              

Document Name Date/Time Subjects