Legislature(1995 - 1996)
04/26/1995 01:50 PM House FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 26, 1995
1:50 P.M.
TAPE HFC 95 - 99, Side 2, #000 - end.
TAPE HFC 95 - 100, Side 1, #000 - end.
TAPE HFC 95 - 100, Side 2, #000 - end.
TAPE HFC 95 - 101, Side 1, #000 - #486.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:50 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
H. Pat Ladner, Executive Director, Alaska Aerospace
Development Corporation, Anchorage; Arliss Sturgulewski,
(Testified via Teleconference), Interim Executive Director,
Alaska Science & Technology Foundation, Anchorage; Thomas
Wright, Staff to Representative Ivan Ivan; Representative
Brian Porter; Del Smith, Deputy Commissioner, Department of
Public Safety; Margo Knuth, Assistant Attorney General,
Criminal Division, Department of Law; Jerry Shriner, Special
Assistant, Office of the Commissioner, Department of
Corrections; Loren Jones, Director, Division of Alcoholism &
Drug Abuse, Department of Health and Social Services; Pam
Neal, President, Alaska State Chamber of Commerce; Deborah
Behr, Regulations Attorney, Department of Law; Deena
Henkins, Section Chief, Drinking Water & Wastewater,
Department of Environmental Conservation; Bruce Campbell,
Staff to Representative Pete Kelly; John Lindback, Chief of
Staff, Office of the Lt. Governor; Elmer Lindstrom, Special
Assistant to the Commissioner, Department of Health and
Social Services; Mike Corhill, (Testified via
teleconference), President, Alaska Peace Officer
Association, Anchorage.
SUMMARY
HB 315 An Act relating to the financing of technological
1
developments by public corporations of the state;
and relating to the financing of the Kodiak launch
complex, the Fairbanks satellite ground station
space park, and a low-rank coal water fuel
technology project.
CS HB 315 (FIN) was reported out of Committee with
"individual recommendations" and with a zero
fiscal note by the Department of Commerce and
Economic Development dated 4/20/95.
HB 269 An Act relating to credits against certain taxes
for contributions to certain public educational
radio and television networks and stations and to
endowments for public educational radio and
television networks; and providing for an
effective date.
CS HB 269 (FIN) was reported out of Committee with
a "no recommendation" and with a zero fiscal note
by the Department of Revenue dated 4/3/95.
HB 159 An Act allowing a person under age 21 to be
arrested by a peace officer without a warrant for
illegal possession, consumption, or control of
alcohol; relating to the offenses of driving with
a revoked license, driving while intoxicated, or
failure to submit to a chemical test of breath or
blood; and providing for an effective date.
CS HB 159 (JUD) was reported out of Committee with
a "no recommendation" and with fiscal notes by the
Department of Administration, the Department of
Public Safety dated 3/29/95, the Alaska Court
System dated 3/29/95, the Department of
Corrections dated 3/29/95 and the Department of
Law dated 3/29/95.
HB 130 An Act relating to agency review of public comment
on the adoption, amendment, and repeal of
regulations; relating to the examination of
proposed regulations, amendments of regulations,
and orders repealing regulations by the
Administrative Regulation Review Committee and the
Department of Law; relating to the submission to,
and acceptance by, the lieutenant governor of
proposed regulations, amendments of regulations,
and orders repealing regulations; and requiring
agencies to make certain determinations before
adopting regulations, amendments of regulations,
or orders repealing regulations.
2
HB 130 was HELD in Committee for further
consideration.
HOUSE BILL 315
"An Act relating to the financing of technological
developments by public corporations of the state; and
relating to the financing of the Kodiak launch complex,
the Fairbanks satellite ground station space park, and
a low-rank coal water fuel technology project."
ARLISS STURGULEWSKI, (TESTIFIED VIA TELECONFERENCE), INTERIM
EXECUTIVE DIRECTOR, ALASKA SCIENCE & TECHNOLOGY FOUNDATION,
ANCHORAGE, provided Committee members with a memorandum
dated 4/26/95 regarding the "Budget Information Requested".
[Attachment #1]. She offered to answer questions from the
Committee.
Representative Navarre questioned how the interest of the
fund would be protected. Representative Brown referenced
Section #6 and asked if award money would result from the
interest of the foundation or from the principle. Ms.
Sturgulewski explained that the coal water fuel proposal
would be phased over a three year period originating from a
grant line. If Phase 2 of the project is accepted, the
first payment would be made this fiscal year.
Ms. Sturgulewski referenced Attachment #1, pointing out that
the analysis would remove the University Agriculture Station
and the Aerospace Development Corporation. Representative
Brown questioned why the earnings listed on Attachment #1
were greater without the inclusion of coal. Ms.
Sturgulewski indicated that those earning would amount to
$7.2 million dollars. Discussion followed between
Representative Brown and Ms. Sturgulewski regarding the
estimated earning reserve payments. Representative Navarre
recommended removing the agriculture component and then
focusing the availability of that grant money to other
projects.
Representative Martin thought that Business and Industrial
Development Corporations and Organizations (BIDCO) made a
commitment to support the Alaska Science and Technology
Foundation. Ms. Sturgulewski responded that a BIDCO package
has been submitted. The return should be available on May
15th, 1995.
Representative Martin asked how many projects would be
eliminated with the advance of aerospace. Senator
Sturgulewski replied that aerospace would move forward only
if appropriate funding was available. She emphasized that
this was not an appropriation bill. Representative Martin
stressed his concerns with future complications resulting
3
from the legislation.
Ms. Sturgulewski responded that the foundation currently
handles many small grants and that the board of directors
will continue to serve the needs of the small grant
community.
Ms. Sturgulewski explained that the cold water fuels and
royalties plan bids should arrive soon. The repayments for
the Science and Tech Foundation and the Department of
Education will come from royalties received on commercial
sales and from licensing of that technology. Repayments
will then become a portion of the negotiation, which must
begin in order that Phase 2 can start.
Representative Brown asked if satellite facilities are
commercially viable. Ms. Sturgulewski stated that there are
private interests from business and that it is anticipated
that the operation would allow for significant private
sector information. She added that the investment of the
project is under review from Alaska Industrial Development
Export Authority (AIDEA). Representative Brown questioned
if that was the normal sequence of events in obtaining AIDEA
bonding.
H. PAT LADNER, EXECUTIVE DIRECTOR, ALASKA AEROSPACE
DEVELOPMENT CORPORATION (AADC), ANCHORAGE, explained that
was an appropriate procedure and noted that the proposed
legislation would provide Alaska the opportunity to enter
into a new industry without placing money at risk.
Representative Martin MOVED to adopt Amendment #1.
Representative Mulder OBJECTED. Representative Martin
stressed that free enterprise should "pay" their own way.
Representative Kelly advised that the legislation would be
for the benefit of the entire State, agreeing that the 50%
application would not be appropriate. Representative
Therriault stated that fees would be paid for by the debt
service, and noted that the enterprise would be responsible
for more than 50%. Representative Mulder added that there
would be a financial return through AIDEA and said that this
would be a good project.
Representative Martin emphasized that the Kodiak launch
complex, the Fairbanks satellite ground space park and the
low rank coal water fuel technology should be able to
accumulate the remaining funds through a private match.
Ms. Sturgulewski responded to Representative Brown's
questioned regarding the coal water fuel project stating
that the major amount of money would be received from the
U.S. Department of Energy and would not be private funds.
4
The Alaska Science & Technology Foundation will contribute
$3.7 million dollars and the Department of Energy will
contribute $17 million dollars for the demonstration of the
project. She pointed out that the language of the amendment
would make receiving that contribution difficult.
Representative Brown referenced a letter from Mr. Snell at
AIDEA dated 3/7/95 explaining the anticipated $10.2 million
to be received from the federal government and $8 million to
be received from the consortium members in order to begin
Phase 2. The intention would be for the $4 million state
dollars to be spent up-front in order to provide the
preliminary study before the other participants provide
their money. Ms. Sturgulewski stated that all phases are
being worked on together, while indicating that her agency
has clarified that the pay back project would need to occur
in the first three years. Ms. Sturgulewski stated that
Phase 1 has been completed. Phase 2 has not been entered
into yet. Representative Brown advised that Representative
Martin's amendment would not conflict with the foundation's
intention. Ms. Sturgulewski disagreed stating that it would
conflict with the amount of money originating from the grant
and the Department of Energy.
Representative Brown asked if the legislation would affect
the Healy Claim Coal Project. Ms. Sturgulewski remarked
that the legislation would affect the tide waters
demonstration project on the beach. There are a number of
ownerships involved with the coal fields and she added, that
group was interested and would be participating in the
project.
A roll call was taken on the MOTION.
IN FAVOR: Brown, Martin
OPPOSED: Grussendorf, Kelly, Kohring, Mulder,
Navarre, Therriault, Hanley, Foster
Representative Parnell was not present for the vote.
The MOTION FAILED (2-8).
Representative Navarre explained Amendment #2. [Attachment
of Alaska to participate in the challenger learning center
feasibility study. This study would provide a computer
program and would establish a learning center addressing
interests in space industry technology. He pointed out that
Kenai had been listed because the Mayor of Kenai offered to
donate the land for that purpose. He agreed that Anchorage
would be a more accessible area.
5
Co-Chair Hanley asked if there was a cost associated with
the feasibility study. Representative Navarre commented
that a cost had not yet been established although he
recommended providing a cap limit to those costs. Mr.
Ladner elaborated that he had spoken to AIDEA regarding the
feasibility study and that a capital budget submission has
been completed between Alaska Aerospace and AIDEA.
(Tape Change, HFC 95-100, Side 1).
Ms. Ladner reiterated that this would be a good program
resulting in positive impacts on children who use the center
in the math and science areas. Mr. Ladner noted that he
supported Amendment #2. He added that the cost to engage in
the proposal would be $700 thousand dollars and would be an
on-going cost. Representative Mulder asked the cost to
provide the feasibility study. Mr. Ladner replied that it
had not yet been submitted and that to date determining
those costs had been an explorative exercise of the
corporation.
Co-Chair Hanley suggested including a regional consideration
on the amendment. Representative Navarre agreed to amending
the amendment to include "other locations". Representative
Navarre recommended changing the language in the lower
section of the bill deleting "one-quarter" and inserting
"one-half".
Representative Navarre amended the amendment to Line 17,
changing the language to read "(1) one-half by the Alaska
Aerospace Development Corporation and AIDEA". Co-Chair
Hanley added a "friendly" amendment to the amendment by
deleting the language on Line 15 "Kenai and".
Representative Navarre MOVED to adopt the amended Amendment
Representative Mulder MOVED to report CS HB 315 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Martin OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Grussendorf, Kelly, Kohring, Mulder,
Navarre, Parnell, Therriault, Foster,
Hanley
OPPOSED: Martin
Representative Brown was not present for the vote.
The MOTION PASSED (9-1).
6
CS HB 315 (FIN) was reported out of Committee with
"individual recommendations" and with a zero fiscal note by
the Department of Commerce and Economic Development dated
4/20/95.
HOUSE BILL 269
"An Act relating to credits against certain taxes for
contributions to certain public educational radio and
television networks and stations and to endowments for
public educational radio and television networks; and
providing for an effective date."
Representative Navarre MOVED to adopt Amendment #3.
[Attachment #3]. He stated that Amendment #3 would add in a
fisheries landing tax while also would change the provisions
to be taken half from the state share and half from the
municipality share. The amendment would also add a sunset
implemented at the end of five years. There being NO
OBJECTION, it was adopted.
THOMAS WRIGHT, STAFF TO REPRESENTATIVE IVAN IVAN, noted that
Representative Ivan prepared an amendment which would add
technical language to Page 2, Line 30, deleting the word
"and" which would make it consistent with other chapters.
Representative Grussendorf MOVED to adopt Amendment #4.
[Attachment #4]. There being NO OBJECTION, it was adopted.
Representative Mulder MOVED to report CS HB 269 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Kohring OBJECTED
for purposes of discussion. He asked where the funds would
be directed. Mr. Wright responded that decision would be up
to the contributor, although, with the members on the
endowment trust there would be a strong push to donate to
that trust for the interest in building funds to alleviate
the State's responsibility for public broadcasting.
Donations will not be prohibited directly to specific
stations.
Representative Kohring noted that the endowment trust was
not a State operation or function. He asked if it was legal
for the State to provide a tax credit which funds a private
entity. Mr. Wright did not know. He recommended that
question be directed to the Department of Revenue.
Representative Kohring interjected that a precedent could be
established for other private organization to request
funding.
Representative Kohring WITHDREW THE OBJECTION. There being
NO OBJECTIONS, it so ordered.
7
CS HB 269 (FIN) was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Revenue.
HOUSE BILL 159
"An Act allowing a person under age 21 to be arrested
by a peace officer without a warrant for illegal
possession, consumption, or control of alcohol;
relating to the offenses of driving with a revoked
license, driving while intoxicated, or failure to
submit to a chemical test of breath or blood; and
providing for an effective date."
REPRESENTATIVE BRIAN PORTER testified in support of HB 159
noting that it would allow the court the option of ordering
a person to take Antibes or a similar drug as a condition of
parole or probation. Also, the bill would require a person
convicted of a felony Driving While Intoxicated (DWI) to be
evaluated by an alcohol screening agency before that person
is sentenced. Additionally, the legislation would allow the
court to impose suspended jail time on a person convicted of
a felony DWI, who fails to complete the alcohol treatment
ordered by the court. Representative Porter distributed to
Committee members a handout titled "Impaired Driving
Assessment". [Attachment #5].
Representative Porter emphasized that the most frequent
violent crime in the country is drunk driving. A study
published by the Alaska Department of Transportation and
Public Facilities (DOTPF) stated that alcohol was a factor
in 982 accidents statewide in 1993. He added that repeat
offenders account for a disproportionate number of fatal
accidents. In fatal accidents in which the driver is drunk,
those persons with a prior conviction for drunk driving
would be five times more likely to be involved than that
person with no record.
Representative Porter concluded, driving is a privilege, not
a right! HB 159 would give Alaska one of the toughest drunk
driving statutes in the nation and the legislation would
send a clear message that Alaskans will no longer tolerate
persons who drive drunk.
Representative Porter requested that Section #1 which would
allow a person under the age 21 to be arrested by a peace
officer, without a warrant, for illegal possession,
consumption, or control of an alcoholic beverage and Section
ignition interlock device as a part of a fine imposed for
convictions of driving while intoxicated or refusal to take
8
a breath test, to remain in the legislation if changes are
made.
MARGO KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION,
DEPARTMENT OF LAW, commented that the current Administration
supports getting tough on drunk drivers, although, she noted
two troublesome sections of the legislation. The first area
of concern would be the fiscal impact. Felony case costs
are much more to prosecute than misdemeanors. Each case
would be required to go to the grand jury. Ms. Knuth noted
that there would be 300 to 400 hundred persons each year who
would qualify for DWI treatment. She added, that because of
felony sanctions, defendants who are accused of felonies
more often go to trial than they would on a misdemeanor.
For that reason, the Department has submitted fiscal notes
requesting four new positions.
Ms. Knuth added that the legislation would establish what
sentences should be imposed for a felony offense. For the
first felony offense, the court would impose a sentence of
(120) one hundred twenty days, whereas, for second felony
offense, the sentence would be (240) two hundred forty days,
and the third sentence would be (360) three hundred sixty
days. The Legislature has adopted presumptive sentencing
for felony cases. She stressed that the costs associated
with the legislation would be significant.
MIKE CORHILL, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
ALASKA PEACE OFFICER ASSOCIATION, ANCHORAGE, spoke in
support of the legislation. He stated that the Alaska Peace
Officer Association believes that a harsher way in dealing
with drunk drivers should be implemented. Mr. Corhill
reflected on the seriousness of the problem and recommended
that the situation be handled criminally. He thought that a
Class "C" felony would serve as a deterrent factor to the
current crime associated with drinking.
Representative Martin asked which section of the legislation
would ease the concerns for the Department of Law. Ms.
Knuth stated that Section #7 of the bill contains a
provision which makes the third and subsequent offenses a
felony. Sections (1), (a)(b) & (c), specifies a sentence
that is less than what presumptive sentencing requires.
Representative Martin asked if problems with the persons
individual rights could occur in that section of the
legislation dealing with the breath test. Ms. Knuth
responded that Alaska was the first State to specify that a
blood sample could not be taken from someone suspected of
drunk driving. The courts have allowed, as an alternative,
the same sanction as if a person were found to be a drunk
driver. Ms. Knuth pointed out that law had been challenged
and was upheld.
9
JERRY SHRINER, SPECIAL ASSISTANT, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF CORRECTIONS, stated that the
Department does not oppose the legislation although
emphasized that the fiscal impact would be significant. To
raise the offense from a misdemeanor to a felony would
require the Department to supervise and write court reports
on a group of people not currently being supervised. He
emphasized that passage of the legislation would require
absolute funding.
Representative Martin asked if the Department could refer
the person to a detox center. Mr. Shriner advised that the
Department of Corrections does not have that flexibility.
Ms. Knuth interjected that there are inpatient programs
which count the same as jail time because they create such
an imposition on the persons freedom.
(Tape Change, HFC 95-100, Side 2).
LOREN JONES, DIRECTOR, DIVISION OF ALCOHOLISM & DRUG ABUSE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the
Department had concerns with Section #7. He pointed out
that as part of the imposition of sentence, the court would
be allowed to order, as a condition of parole, that an
individual take a drug or combination of drugs which would
then prevent the consumption of alcohol. He explained that
not everyone would be physically capable of taking the
recommended drug Antibuse. Research has shown that the drug
only works well when the client is monitored in a treatment
program.
DEL SMITH, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,
noted that the Department would be supportive of any effort
to remove drunken drivers off the highways, although pointed
out the fiscal impact costs associated with the potential
jail sentences, resulting in court trial overtime.
Representative Brown asked if the current planned
enhancements would address information resulting from prior
DWI's. Ms. Knuth replied that it would be difficult to
determine which DWI offense would be for the offense that
person committed in determining sentencing.
Representative Brown inquired if the $1.8 million dollar
fiscal impact would equal the benefit in safety provided by
the legislation. Mr. Smith advised that it is important for
public safety to get drunk drivers off the road. Discussion
followed among Committee members regarding the fiscal cost
and the safety that would be potentially provided through
the legislation.
10
Representative Martin MOVED to report CS HB 159 (JUD) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CS HB 159 (JUD) was reported out of Committee with "no
recommendations" and with fiscal notes by the Department of
Administration, the Department of Public Safety dated
3/29/95, the Alaska Court System dated 3/29/95, the
Department of Corrections dated 3/29/95 and the Department
of Law dated 3/29/95.
HOUSE BILL 130
"An Act relating to agency review of public comment on
the adoption, amendment, and repeal of regulations;
relating to the examination of proposed regulations,
amendments of regulations, and orders repealing
regulations by the Administrative Regulation Review
Committee and the Department of Law; relating to the
submission to, and acceptance by, the lieutenant
governor of proposed regulations, amendments of
regulations, and orders repealing regulations; and
requiring agencies to make certain determinations
before adopting regulations, amendments of regulations,
or orders repealing regulations."
Representative Kelly explained HB 130. He noted that the
creation of regulations heretofore has been carried out
within the bureaus of state government beyond the light of
public scrutiny. He noted that though public input has
always been a part of the regulation process, the system is
inherently flawed. Regulations have the force of law, but
he thought in our form of government law must emanate from
the people through their elected officials.
Representative Kelly continued, in the current system,
unelected regulation writers have the last word in the
process, not the people. HB 130 would attempt to remedy
that by bringing elected officials back into the loop and
making them politically accountable to the people for the
regulations that impact their lives. The legislation would
begin the process of regulatory reform.
Representative Kelly provided Committee members a sectional
analysis of the proposed legislation.
PAM NEAL, PRESIDENT, ALASKA STATE CHAMBER OF COMMERCE,
testified in support of HB 130. She pointed out that
regulatory reform was a priority of the State Chamber of
Commerce this year.
DEBORAH BEHR, REGULATIONS ATTORNEY, DEPARTMENT OF LAW,
11
provided a review of HB 130. She pointed out that the
Administration was "neutral" on the bill, although the Lt.
Governor's Office is supportive of legislative reform. She
noted that the amendment she provided to the sponsor
[Attachment #6] would address the Department's concerns
regarding the applicability for regulations. Ms. Behr noted
that the bill would not provide any dramatic changes to the
current system. The Governor currently has the authority to
return regulations to the individual department
commissioners. Ms. Behr thought that the legislation would
well address the cost of compliance.
Representative Brown asked how an agency would be able to
adopt regulations without receiving public comment. Ms.
Behr responded that each department would meet with their
individual commissioners and at that time, the commissioner
would be briefed. Following passage of the legislation,
those meetings would be mandated.
(Tape Change, HFC 95-101, Side 1).
DEENA HENKINS, SECTION CHIEF, DRINKING WATER AND WASTEWATER,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that the
Department has a great deal of experience in compiling
comments and providing a written response to those comments.
A number of standards are covered by the federal public
participation in regulations which requires a written
response to comments. She indicated that depending on the
complexity and controversy of the regulations, the process
would range in cost from several thousand dollars to ten
thousand dollars. The process also can take a substantial
amount of time to compile which would then cause problems
meeting deadlines.
JOHN LINDBACK, CHIEF OF STAFF, OFFICE OF THE LT. GOVERNOR,
reiterated that the Administration is neutral on the
legislation, and would look forward to including the
legislation with other regulatory reform bills which have
been proposed this session. He added that the
Administration is interested in the regulatory reform, thus
building a consensus to the process.
The Lt. Governor has indicated that the legislation would
reflect how public perception currently exists on the
process. He pointed out that most people assume that this
power is current law. Mr. Lindback then addressed the
fiscal notes. He enumerated that amendments to the bill
most often have a cost associated with them. He asked that
the fiscal notes from each agency adequately reflect the
action of the Legislature.
Representative Brown asked the amount of time needed for a
12
review. Mr. Lindback agreed that implementation could be a
potential problem. He thought that it would work better if
a position was assigned specifically to follow the
regulations. That position would be responsible to follow
all regulations throughout the legislature and know their
impact during that process.
Representative Mulder asked if there was any portion of the
legislation that the Administration found objectional. Mr.
Lindback reiterated that the Administration was neutral on
the legislation. Representative Kohring asked what would
happen if a regulation was turned down by the Governor.
Representative Kelly explained that then the comments from
the Legislative Review Committee would go to the Governor.
Under the proposed legislation, the Legislative Review
Committee would be brought into the loop sooner.
Representative Kelly responded to Representative Brown's
inquiry about the intention to cost. He added that industry
has requested for regulation writers to make a determination
of the cost for compliance. He indicated that would be very
expensive and that the intention during the public process
period, was to have the regulation writers address the cost
of those regulations. He noted that he would prefer a
complete "cost of analysis" for the regulations although
stated that resources are limited.
Representative Brown asked how the language would affect
each department's ability to raise their fees. Mr. Lindback
acknowledged that the legislation would clarify that there
would be a cost to each private person. Representative
Brown voiced her concerns regarding the cost versus the
benefits of the legislation.
BRUCE CAMPBELL, STAFF, REPRESENTATIVE PETE KELLY, commented
that the legislation's intention was focused on how to
assist the agencies and provide them with guidance. Cost is
an area in which the agency and staff have little knowledge
in the private sector. They are aware of the statutory
guidance regarding their benefits although the cost issues
are of the most concern to those that accrue them.
ELMER, LINDSTROM, SPECIAL ASSISTANT, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
stressed that most regulations result from the passage of
new regulations dealing with new policy. He pointed out
that was not the case for DHSS. Less than one third of the
regulatory packages developed by that Department are the
result of new legislation. A majority of the regulations
come from an ongoing review. More importantly, over time,
then result from regulations which are necessary as budget
actions taken by the executive or legislative branch of
13
government. He thought that the new provisions would not
help in alleviating the frustrations resulting from the
types of regulations most often experienced in that
Department.
Representative Kohring observed that Mr. Lindstrom had
pointed out that the majority of DHSS's regulations are
drawn up outside the legislative process. He added that the
proposed legislation would alleviate that in the future.
HB 130 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:30 P.M.
HOUSE FINANCE COMMITTEE
APRIL 26, 1995
1:50 P.M.
TAPE HFC 95 - 99, Side 2, #000 - end.
TAPE HFC 95 - 100, Side 1, #000 - end.
TAPE HFC 95 - 100, Side 2, #000 - end.
TAPE HFC 95 - 101, Side 1, #000 - #486.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:50 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
H. Pat Ladner, Executive Director, Alaska Aerospace
Development Corporation, Anchorage; Arliss Sturgulewski,
(Testified via Teleconference), Interim Executive Director,
Alaska Science & Technology Foundation, Anchorage; Thomas
Wright, Staff to Representative Ivan Ivan; Representative
Brian Porter; Del Smith, Deputy Commissioner, Department of
Public Safety; Margo Knuth, Assistant Attorney General,
Criminal Division, Department of Law; Jerry Shriner, Special
Assistant, Office of the Commissioner, Department of
Corrections; Loren Jones, Director, Division of Alcoholism &
Drug Abuse, Department of Health and Social Services; Pam
14
Neal, President, Alaska State Chamber of Commerce; Deborah
Behr, Regulations Attorney, Department of Law; Deena
Henkins, Section Chief, Drinking Water & Wastewater,
Department of Environmental Conservation; Bruce Campbell,
Staff to Representative Pete Kelly; John Lindback, Chief of
Staff, Office of the Lt. Governor; Elmer Lindstrom, Special
Assistant to the Commissioner, Department of Health and
Social Services; Mike Corhill, (Testified via
teleconference), President, Alaska Peace Officer
Association, Anchorage.
SUMMARY
HB 315 An Act relating to the financing of technological
developments by public corporations of the state;
and relating to the financing of the Kodiak launch
complex, the Fairbanks satellite ground station
space park, and a low-rank coal water fuel
technology project.
CS HB 315 (FIN) was reported out of Committee with
"individual recommendations" and with a zero
fiscal note by the Department of Commerce and
Economic Development dated 4/20/95.
HB 269 An Act relating to credits against certain taxes
for contributions to certain public educational
radio and television networks and stations and to
endowments for public educational radio and
television networks; and providing for an
effective date.
CS HB 269 (FIN) was reported out of Committee with
a "no recommendation" and with a zero fiscal note
by the Department of Revenue dated 4/3/95.
HB 159 An Act allowing a person under age 21 to be
arrested by a peace officer without a warrant for
illegal possession, consumption, or control of
alcohol; relating to the offenses of driving with
a revoked license, driving while intoxicated, or
failure to submit to a chemical test of breath or
blood; and providing for an effective date.
CS HB 159 (JUD) was reported out of Committee with
a "no recommendation" and with fiscal notes by the
Department of Administration, the Department of
Public Safety dated 3/29/95, the Alaska Court
System dated 3/29/95, the Department of
Corrections dated 3/29/95 and the Department of
Law dated 3/29/95.
15
HB 130 An Act relating to agency review of public comment
on the adoption, amendment, and repeal of
regulations; relating to the examination of
proposed regulations, amendments of regulations,
and orders repealing regulations by the
Administrative Regulation Review Committee and the
Department of Law; relating to the submission to,
and acceptance by, the lieutenant governor of
proposed regulations, amendments of regulations,
and orders repealing regulations; and requiring
agencies to make certain determinations before
adopting regulations, amendments of regulations,
or orders repealing regulations.
HB 130 was HELD in Committee for further
consideration.
HOUSE BILL 315
"An Act relating to the financing of technological
developments by public corporations of the state; and
relating to the financing of the Kodiak launch complex,
the Fairbanks satellite ground station space park, and
a low-rank coal water fuel technology project."
ARLISS STURGULEWSKI, (TESTIFIED VIA TELECONFERENCE), INTERIM
EXECUTIVE DIRECTOR, ALASKA SCIENCE & TECHNOLOGY FOUNDATION,
ANCHORAGE, provided Committee members with a memorandum
dated 4/26/95 regarding the "Budget Information Requested".
[Attachment #1]. She offered to answer questions from the
Committee.
Representative Navarre questioned how the interest of the
fund would be protected. Representative Brown referenced
Section #6 and asked if award money would result from the
interest of the foundation or from the principle. Ms.
Sturgulewski explained that the coal water fuel proposal
would be phased over a three year period originating from a
grant line. If Phase 2 of the project is accepted, the
first payment would be made this fiscal year.
Ms. Sturgulewski referenced Attachment #1, pointing out that
the analysis would remove the University Agriculture Station
and the Aerospace Development Corporation. Representative
Brown questioned why the earnings listed on Attachment #1
were greater without the inclusion of coal. Ms.
Sturgulewski indicated that those earning would amount to
$7.2 million dollars. Discussion followed between
Representative Brown and Ms. Sturgulewski regarding the
estimated earning reserve payments. Representative Navarre
recommended removing the agriculture component and then
focusing the availability of that grant money to other
16
projects.
Representative Martin thought that Business and Industrial
Development Corporations and Organizations (BIDCO) made a
commitment to support the Alaska Science and Technology
Foundation. Ms. Sturgulewski responded that a BIDCO package
has been submitted. The return should be available on May
15th, 1995.
Representative Martin asked how many projects would be
eliminated with the advance of aerospace. Senator
Sturgulewski replied that aerospace would move forward only
if appropriate funding was available. She emphasized that
this was not an appropriation bill. Representative Martin
stressed his concerns with future complications resulting
from the legislation.
Ms. Sturgulewski responded that the foundation currently
handles many small grants and that the board of directors
will continue to serve the needs of the small grant
community.
Ms. Sturgulewski explained that the cold water fuels and
royalties plan bids should arrive soon. The repayments for
the Science and Tech Foundation and the Department of
Education will come from royalties received on commercial
sales and from licensing of that technology. Repayments
will then become a portion of the negotiation, which must
begin in order that Phase 2 can start.
Representative Brown asked if satellite facilities are
commercially viable. Ms. Sturgulewski stated that there are
private interests from business and that it is anticipated
that the operation would allow for significant private
sector information. She added that the investment of the
project is under review from Alaska Industrial Development
Export Authority (AIDEA). Representative Brown questioned
if that was the normal sequence of events in obtaining AIDEA
bonding.
H. PAT LADNER, EXECUTIVE DIRECTOR, ALASKA AEROSPACE
DEVELOPMENT CORPORATION (AADC), ANCHORAGE, explained that
was an appropriate procedure and noted that the proposed
legislation would provide Alaska the opportunity to enter
into a new industry without placing money at risk.
Representative Martin MOVED to adopt Amendment #1.
Representative Mulder OBJECTED. Representative Martin
stressed that free enterprise should "pay" their own way.
Representative Kelly advised that the legislation would be
for the benefit of the entire State, agreeing that the 50%
application would not be appropriate. Representative
Therriault stated that fees would be paid for by the debt
17
service, and noted that the enterprise would be responsible
for more than 50%. Representative Mulder added that there
would be a financial return through AIDEA and said that this
would be a good project.
Representative Martin emphasized that the Kodiak launch
complex, the Fairbanks satellite ground space park and the
low rank coal water fuel technology should be able to
accumulate the remaining funds through a private match.
Ms. Sturgulewski responded to Representative Brown's
questioned regarding the coal water fuel project stating
that the major amount of money would be received from the
U.S. Department of Energy and would not be private funds.
The Alaska Science & Technology Foundation will contribute
$3.7 million dollars and the Department of Energy will
contribute $17 million dollars for the demonstration of the
project. She pointed out that the language of the amendment
would make receiving that contribution difficult.
Representative Brown referenced a letter from Mr. Snell at
AIDEA dated 3/7/95 explaining the anticipated $10.2 million
to be received from the federal government and $8 million to
be received from the consortium members in order to begin
Phase 2. The intention would be for the $4 million state
dollars to be spent up-front in order to provide the
preliminary study before the other participants provide
their money. Ms. Sturgulewski stated that all phases are
being worked on together, while indicating that her agency
has clarified that the pay back project would need to occur
in the first three years. Ms. Sturgulewski stated that
Phase 1 has been completed. Phase 2 has not been entered
into yet. Representative Brown advised that Representative
Martin's amendment would not conflict with the foundation's
intention. Ms. Sturgulewski disagreed stating that it would
conflict with the amount of money originating from the grant
and the Department of Energy.
Representative Brown asked if the legislation would affect
the Healy Claim Coal Project. Ms. Sturgulewski remarked
that the legislation would affect the tide waters
demonstration project on the beach. There are a number of
ownerships involved with the coal fields and she added, that
group was interested and would be participating in the
project.
A roll call was taken on the MOTION.
IN FAVOR: Brown, Martin
OPPOSED: Grussendorf, Kelly, Kohring, Mulder,
Navarre, Therriault, Hanley, Foster
18
Representative Parnell was not present for the vote.
The MOTION FAILED (2-8).
Representative Navarre explained Amendment #2. [Attachment
of Alaska to participate in the challenger learning center
feasibility study. This study would provide a computer
program and would establish a learning center addressing
interests in space industry technology. He pointed out that
Kenai had been listed because the Mayor of Kenai offered to
donate the land for that purpose. He agreed that Anchorage
would be a more accessible area.
Co-Chair Hanley asked if there was a cost associated with
the feasibility study. Representative Navarre commented
that a cost had not yet been established although he
recommended providing a cap limit to those costs. Mr.
Ladner elaborated that he had spoken to AIDEA regarding the
feasibility study and that a capital budget submission has
been completed between Alaska Aerospace and AIDEA.
(Tape Change, HFC 95-100, Side 1).
Ms. Ladner reiterated that this would be a good program
resulting in positive impacts on children who use the center
in the math and science areas. Mr. Ladner noted that he
supported Amendment #2. He added that the cost to engage in
the proposal would be $700 thousand dollars and would be an
on-going cost. Representative Mulder asked the cost to
provide the feasibility study. Mr. Ladner replied that it
had not yet been submitted and that to date determining
those costs had been an explorative exercise of the
corporation.
Co-Chair Hanley suggested including a regional consideration
on the amendment. Representative Navarre agreed to amending
the amendment to include "other locations". Representative
Navarre recommended changing the language in the lower
section of the bill deleting "one-quarter" and inserting
"one-half".
Representative Navarre amended the amendment to Line 17,
changing the language to read "(1) one-half by the Alaska
Aerospace Development Corporation and AIDEA". Co-Chair
Hanley added a "friendly" amendment to the amendment by
deleting the language on Line 15 "Kenai and".
Representative Navarre MOVED to adopt the amended Amendment
Representative Mulder MOVED to report CS HB 315 (FIN) out of
19
Committee with individual recommendations and with the
accompanying fiscal note. Representative Martin OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Grussendorf, Kelly, Kohring, Mulder,
Navarre, Parnell, Therriault, Foster,
Hanley
OPPOSED: Martin
Representative Brown was not present for the vote.
The MOTION PASSED (9-1).
CS HB 315 (FIN) was reported out of Committee with
"individual recommendations" and with a zero fiscal note by
the Department of Commerce and Economic Development dated
4/20/95.
HOUSE BILL 269
"An Act relating to credits against certain taxes for
contributions to certain public educational radio and
television networks and stations and to endowments for
public educational radio and television networks; and
providing for an effective date."
Representative Navarre MOVED to adopt Amendment #3.
[Attachment #3]. He stated that Amendment #3 would add in a
fisheries landing tax while also would change the provisions
to be taken half from the state share and half from the
municipality share. The amendment would also add a sunset
implemented at the end of five years. There being NO
OBJECTION, it was adopted.
THOMAS WRIGHT, STAFF TO REPRESENTATIVE IVAN IVAN, noted that
Representative Ivan prepared an amendment which would add
technical language to Page 2, Line 30, deleting the word
"and" which would make it consistent with other chapters.
Representative Grussendorf MOVED to adopt Amendment #4.
[Attachment #4]. There being NO OBJECTION, it was adopted.
Representative Mulder MOVED to report CS HB 269 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Kohring OBJECTED
for purposes of discussion. He asked where the funds would
be directed. Mr. Wright responded that decision would be up
to the contributor, although, with the members on the
endowment trust there would be a strong push to donate to
that trust for the interest in building funds to alleviate
the State's responsibility for public broadcasting.
20
Donations will not be prohibited directly to specific
stations.
Representative Kohring noted that the endowment trust was
not a State operation or function. He asked if it was legal
for the State to provide a tax credit which funds a private
entity. Mr. Wright did not know. He recommended that
question be directed to the Department of Revenue.
Representative Kohring interjected that a precedent could be
established for other private organization to request
funding.
Representative Kohring WITHDREW THE OBJECTION. There being
NO OBJECTIONS, it so ordered.
CS HB 269 (FIN) was reported out of Committee with "no
recommendation" and with a zero fiscal note by the
Department of Revenue.
HOUSE BILL 159
"An Act allowing a person under age 21 to be arrested
by a peace officer without a warrant for illegal
possession, consumption, or control of alcohol;
relating to the offenses of driving with a revoked
license, driving while intoxicated, or failure to
submit to a chemical test of breath or blood; and
providing for an effective date."
REPRESENTATIVE BRIAN PORTER testified in support of HB 159
noting that it would allow the court the option of ordering
a person to take Antibes or a similar drug as a condition of
parole or probation. Also, the bill would require a person
convicted of a felony Driving While Intoxicated (DWI) to be
evaluated by an alcohol screening agency before that person
is sentenced. Additionally, the legislation would allow the
court to impose suspended jail time on a person convicted of
a felony DWI, who fails to complete the alcohol treatment
ordered by the court. Representative Porter distributed to
Committee members a handout titled "Impaired Driving
Assessment". [Attachment #5].
Representative Porter emphasized that the most frequent
violent crime in the country is drunk driving. A study
published by the Alaska Department of Transportation and
Public Facilities (DOTPF) stated that alcohol was a factor
in 982 accidents statewide in 1993. He added that repeat
offenders account for a disproportionate number of fatal
accidents. In fatal accidents in which the driver is drunk,
those persons with a prior conviction for drunk driving
would be five times more likely to be involved than that
person with no record.
21
Representative Porter concluded, driving is a privilege, not
a right! HB 159 would give Alaska one of the toughest drunk
driving statutes in the nation and the legislation would
send a clear message that Alaskans will no longer tolerate
persons who drive drunk.
Representative Porter requested that Section #1 which would
allow a person under the age 21 to be arrested by a peace
officer, without a warrant, for illegal possession,
consumption, or control of an alcoholic beverage and Section
ignition interlock device as a part of a fine imposed for
convictions of driving while intoxicated or refusal to take
a breath test, to remain in the legislation if changes are
made.
MARGO KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION,
DEPARTMENT OF LAW, commented that the current Administration
supports getting tough on drunk drivers, although, she noted
two troublesome sections of the legislation. The first area
of concern would be the fiscal impact. Felony case costs
are much more to prosecute than misdemeanors. Each case
would be required to go to the grand jury. Ms. Knuth noted
that there would be 300 to 400 hundred persons each year who
would qualify for DWI treatment. She added, that because of
felony sanctions, defendants who are accused of felonies
more often go to trial than they would on a misdemeanor.
For that reason, the Department has submitted fiscal notes
requesting four new positions.
Ms. Knuth added that the legislation would establish what
sentences should be imposed for a felony offense. For the
first felony offense, the court would impose a sentence of
(120) one hundred twenty days, whereas, for second felony
offense, the sentence would be (240) two hundred forty days,
and the third sentence would be (360) three hundred sixty
days. The Legislature has adopted presumptive sentencing
for felony cases. She stressed that the costs associated
with the legislation would be significant.
MIKE CORHILL, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
ALASKA PEACE OFFICER ASSOCIATION, ANCHORAGE, spoke in
support of the legislation. He stated that the Alaska Peace
Officer Association believes that a harsher way in dealing
with drunk drivers should be implemented. Mr. Corhill
reflected on the seriousness of the problem and recommended
that the situation be handled criminally. He thought that a
Class "C" felony would serve as a deterrent factor to the
current crime associated with drinking.
Representative Martin asked which section of the legislation
22
would ease the concerns for the Department of Law. Ms.
Knuth stated that Section #7 of the bill contains a
provision which makes the third and subsequent offenses a
felony. Sections (1), (a)(b) & (c), specifies a sentence
that is less than what presumptive sentencing requires.
Representative Martin asked if problems with the persons
individual rights could occur in that section of the
legislation dealing with the breath test. Ms. Knuth
responded that Alaska was the first State to specify that a
blood sample could not be taken from someone suspected of
drunk driving. The courts have allowed, as an alternative,
the same sanction as if a person were found to be a drunk
driver. Ms. Knuth pointed out that law had been challenged
and was upheld.
JERRY SHRINER, SPECIAL ASSISTANT, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF CORRECTIONS, stated that the
Department does not oppose the legislation although
emphasized that the fiscal impact would be significant. To
raise the offense from a misdemeanor to a felony would
require the Department to supervise and write court reports
on a group of people not currently being supervised. He
emphasized that passage of the legislation would require
absolute funding.
Representative Martin asked if the Department could refer
the person to a detox center. Mr. Shriner advised that the
Department of Corrections does not have that flexibility.
Ms. Knuth interjected that there are inpatient programs
which count the same as jail time because they create such
an imposition on the persons freedom.
(Tape Change, HFC 95-100, Side 2).
LOREN JONES, DIRECTOR, DIVISION OF ALCOHOLISM & DRUG ABUSE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the
Department had concerns with Section #7. He pointed out
that as part of the imposition of sentence, the court would
be allowed to order, as a condition of parole, that an
individual take a drug or combination of drugs which would
then prevent the consumption of alcohol. He explained that
not everyone would be physically capable of taking the
recommended drug Antibuse. Research has shown that the drug
only works well when the client is monitored in a treatment
program.
DEL SMITH, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,
noted that the Department would be supportive of any effort
to remove drunken drivers off the highways, although pointed
out the fiscal impact costs associated with the potential
jail sentences, resulting in court trial overtime.
23
Representative Brown asked if the current planned
enhancements would address information resulting from prior
DWI's. Ms. Knuth replied that it would be difficult to
determine which DWI offense would be for the offense that
person committed in determining sentencing.
Representative Brown inquired if the $1.8 million dollar
fiscal impact would equal the benefit in safety provided by
the legislation. Mr. Smith advised that it is important for
public safety to get drunk drivers off the road. Discussion
followed among Committee members regarding the fiscal cost
and the safety that would be potentially provided through
the legislation.
Representative Martin MOVED to report CS HB 159 (JUD) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CS HB 159 (JUD) was reported out of Committee with "no
recommendations" and with fiscal notes by the Department of
Administration, the Department of Public Safety dated
3/29/95, the Alaska Court System dated 3/29/95, the
Department of Corrections dated 3/29/95 and the Department
of Law dated 3/29/95.
HOUSE BILL 130
"An Act relating to agency review of public comment on
the adoption, amendment, and repeal of regulations;
relating to the examination of proposed regulations,
amendments of regulations, and orders repealing
regulations by the Administrative Regulation Review
Committee and the Department of Law; relating to the
submission to, and acceptance by, the lieutenant
governor of proposed regulations, amendments of
regulations, and orders repealing regulations; and
requiring agencies to make certain determinations
before adopting regulations, amendments of regulations,
or orders repealing regulations."
Representative Kelly explained HB 130. He noted that the
creation of regulations heretofore has been carried out
within the bureaus of state government beyond the light of
public scrutiny. He noted that though public input has
always been a part of the regulation process, the system is
inherently flawed. Regulations have the force of law, but
he thought in our form of government law must emanate from
the people through their elected officials.
Representative Kelly continued, in the current system,
unelected regulation writers have the last word in the
process, not the people. HB 130 would attempt to remedy
24
that by bringing elected officials back into the loop and
making them politically accountable to the people for the
regulations that impact their lives. The legislation would
begin the process of regulatory reform.
Representative Kelly provided Committee members a sectional
analysis of the proposed legislation.
PAM NEAL, PRESIDENT, ALASKA STATE CHAMBER OF COMMERCE,
testified in support of HB 130. She pointed out that
regulatory reform was a priority of the State Chamber of
Commerce this year.
DEBORAH BEHR, REGULATIONS ATTORNEY, DEPARTMENT OF LAW,
provided a review of HB 130. She pointed out that the
Administration was "neutral" on the bill, although the Lt.
Governor's Office is supportive of legislative reform. She
noted that the amendment she provided to the sponsor
[Attachment #6] would address the Department's concerns
regarding the applicability for regulations. Ms. Behr noted
that the bill would not provide any dramatic changes to the
current system. The Governor currently has the authority to
return regulations to the individual department
commissioners. Ms. Behr thought that the legislation would
well address the cost of compliance.
Representative Brown asked how an agency would be able to
adopt regulations without receiving public comment. Ms.
Behr responded that each department would meet with their
individual commissioners and at that time, the commissioner
would be briefed. Following passage of the legislation,
those meetings would be mandated.
(Tape Change, HFC 95-101, Side 1).
DEENA HENKINS, SECTION CHIEF, DRINKING WATER AND WASTEWATER,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that the
Department has a great deal of experience in compiling
comments and providing a written response to those comments.
A number of standards are covered by the federal public
participation in regulations which requires a written
response to comments. She indicated that depending on the
complexity and controversy of the regulations, the process
would range in cost from several thousand dollars to ten
thousand dollars. The process also can take a substantial
amount of time to compile which would then cause problems
meeting deadlines.
JOHN LINDBACK, CHIEF OF STAFF, OFFICE OF THE LT. GOVERNOR,
reiterated that the Administration is neutral on the
legislation, and would look forward to including the
legislation with other regulatory reform bills which have
25
been proposed this session. He added that the
Administration is interested in the regulatory reform, thus
building a consensus to the process.
The Lt. Governor has indicated that the legislation would
reflect how public perception currently exists on the
process. He pointed out that most people assume that this
power is current law. Mr. Lindback then addressed the
fiscal notes. He enumerated that amendments to the bill
most often have a cost associated with them. He asked that
the fiscal notes from each agency adequately reflect the
action of the Legislature.
Representative Brown asked the amount of time needed for a
review. Mr. Lindback agreed that implementation could be a
potential problem. He thought that it would work better if
a position was assigned specifically to follow the
regulations. That position would be responsible to follow
all regulations throughout the legislature and know their
impact during that process.
Representative Mulder asked if there was any portion of the
legislation that the Administration found objectional. Mr.
Lindback reiterated that the Administration was neutral on
the legislation. Representative Kohring asked what would
happen if a regulation was turned down by the Governor.
Representative Kelly explained that then the comments from
the Legislative Review Committee would go to the Governor.
Under the proposed legislation, the Legislative Review
Committee would be brought into the loop sooner.
Representative Kelly responded to Representative Brown's
inquiry about the intention to cost. He added that industry
has requested for regulation writers to make a determination
of the cost for compliance. He indicated that would be very
expensive and that the intention during the public process
period, was to have the regulation writers address the cost
of those regulations. He noted that he would prefer a
complete "cost of analysis" for the regulations although
stated that resources are limited.
Representative Brown asked how the language would affect
each department's ability to raise their fees. Mr. Lindback
acknowledged that the legislation would clarify that there
would be a cost to each private person. Representative
Brown voiced her concerns regarding the cost versus the
benefits of the legislation.
BRUCE CAMPBELL, STAFF, REPRESENTATIVE PETE KELLY, commented
that the legislation's intention was focused on how to
assist the agencies and provide them with guidance. Cost is
an area in which the agency and staff have little knowledge
26
in the private sector. They are aware of the statutory
guidance regarding their benefits although the cost issues
are of the most concern to those that accrue them.
ELMER, LINDSTROM, SPECIAL ASSISTANT, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
stressed that most regulations result from the passage of
new regulations dealing with new policy. He pointed out
that was not the case for DHSS. Less than one third of the
regulatory packages developed by that Department are the
result of new legislation. A majority of the regulations
come from an ongoing review. More importantly, over time,
then result from regulations which are necessary as budget
actions taken by the executive or legislative branch of
government. He thought that the new provisions would not
help in alleviating the frustrations resulting from the
types of regulations most often experienced in that
Department.
Representative Kohring observed that Mr. Lindstrom had
pointed out that the majority of DHSS's regulations are
drawn up outside the legislative process. He added that the
proposed legislation would alleviate that in the future.
HB 130 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:30 P.M.
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