Legislature(1995 - 1996)
05/06/1996 12:25 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
May 6, 1996
12:25 P.M.
TAPE HFC 96-167, Side 1, #000 - end.
TAPE HFC 96-167, Side 2, #000 - end.
TAPE HFC 96-168, Side 1, #000 - end.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 12:25 p.m.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
the Management and Budget, Office of the Governor; Bob
Bartholomew, Assistant Director, Income and Excise Audit
Division, Department of Revenue; Jerry Shriner, Special
Assistant, Department of Corrections; Janice Adair,
Director, Division of Environmental Health; Dwight Perkins,
Deputy Commissioner, Department of Labor; Paul Grossi,
Director, Worker's Compensation, Department of Labor; Eric
Tollefsen, Attorney, Carr-Gottstein, Anchorage; Kevin
Brooks, Director, Division of Administration, Department of
Fish and Game; Ken Boyd, Director, Division of Oil and Gas,
Department of Natural Resources; Elmer Lindstrom, Special
Assistant, Department of Health and Social Services; Carol
Caroll, Special Assistant, Department of Public Safety; Tom
Wright, Staff, Representative Ivan Ivan; Bob Cole, Director,
Division of Administrative Services, Department of
Corrections.
SUMMARY
SB 215 An Act streamlining the functions of state
government, including authorizing the commissioner
of fish and game to award grants for certain
resource activities; allowing agents selling fish
and game licenses and tags to retain certain
compensation; authorizing the Department of Health
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and Social Services to award grants for certain
services for developmentally delayed or disabled
children; relating to rabies control and
administration of flour and bread standards by the
Department of Environmental Conservation;
repealing the Athletic Commission, the regulation
of boxing and wrestling, the certification of
professional geologists, and the Water Resources
Board; repealing certain filing statements and
bonds for enforcement and collection of certain
taxes; and providing for an effective date.
CS SB 215 (FIN) am was reported out of Committee
with "no recommendation" and with three fiscal
impact notes, one by the Department of Fish and
Game, one by the Department of Revenue, dated
5/1/96, and one by the Department of Commerce and
Economic Development, dated 1/12/96; and with four
zero fiscal notes, one by the Department of
Revenue, dated 5/1/96, one by the Department of
Environmental Conservation, dated 1/12/96, one by
the Department of Health & Social Services, dated
1/12/96, and one by the Department of Natural
Resources, dated 5/1/96.
SB 216 An Act relating to fees or assessment of costs for
certain services provided by state government,
including hearing costs related to the real estate
surety fund; fees for authorization to operate a
postsecondary educational institution or for an
agent's permit to perform services for a
postsecondary educational institution;
administrative fees for self-insurers in workers'
compensation; business license fees; fees for
activities related to coastal zone management,
training relating to emergency management
response, regulation of pesticides and broadcast
chemicals, and subdivision plans for sewage waste
disposal or treatment; and providing for an
effective date.
HCS CSSB 216 (FIN) was reported out of Committee
with "no recommendation" and with nine fiscal
impact notes, two by the Office of the Governor,
1/12/96, one by the Department of Natural
Resources, 5/2/96, one by the Department of
Revenue, 5/2/96, one by the Department of
Environmental Conservation, 5/4/96, one by the
Department of Commerce and Economic Development,
1/12/96, one by the Department of Education,
5/2/96, Department of Military and Veterans
Affairs, 1/12/96 and one by the Department of
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Labor.
SCR 23 Relating to long range financial planning.
HCS SCR 23 (STA) was reported out of Committee
with a "do pass" recommendation and with a zero
fiscal note by the Senate State Affairs Committee,
2/9/96.
SENATE BILL NO. 216
An Act relating to fees or assessment of costs for
certain services provided by state government,
including hearing costs related to the real estate
surety fund; fees for authorization to operate a
postsecondary educational institution or for an
agent's permit to perform services for a
postsecondary educational institution;
administrative fees for self-insurers in workers'
compensation; business license fees; fees for
activities related to coastal zone management,
training relating to emergency management
response, regulation of pesticides and broadcast
chemicals, and subdivision plans for sewage waste
disposal or treatment; and providing for an
effective date.
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR provided
members with a sectional analysis of SB 216 (copy on file).
She reviewed the sectional analysis.
* Section 1. Allows the Department of Commerce
and Economic Development to charge costs of
hearings related to the Real Estate Surety
Fund. This is a fund shift from the General
Fund. There is a cap in how much can be held
in this fund. The Fund is approaching its
cap.
* Section 2. Allows the Department of
Education to charge fees by regulation for
applications to operate and permits related
to postsecondary education institutions.
* Section 3. Allows the Human Rights
Commission to charge fees for education and
training services.
* Section 4. Allows the Department of Labor to
charge a 4 percent user fee on self insured
employers. Municipalities and local
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governments would be exempted.
* Section 5. Allows the Department of Natural
Resources to charge a fee for direct costs
associated with the Exploration Incentive
Program for mine development.
* Section 6. Allows municipalities to charge
for prisoners in their facilities up to $70.0
dollars a day.
Representative Mulder questioned if Section 6 would refers
to prisoners in state funded contract jails.
JERRY SHRINER, SPECIAL ASSISTANT DEPARTMENT OF CORRECTION
explained that Section 6 only applies to municipal
prisoners. Prisoners held on a state charge could not be
assessed the fee. There would no impact on the General
Fund.
In response to a question by Representative Parnell, Mr.
Shriner explained that state contract jails are paid for a
lump sum number of beds regardless if they are full.
Representative Mulder noted that Juneau and Anchorage are
the only two municipalities charging under municipal law.
Representative Brown MOVED to insert after "may charge a
prisoner," "prosecuted under a municipal ordinance or held
in a municipal facility" on page 3, line 21. There being NO
OBJECTION, it was so ordered.
* Section 7. Allows the Department of
Transportation and Public Facilities to
charge for the use of state marine or harbor
facilities and requires municipalities that
lease state marine or harbor facilities to
charge comparable fees and account for those
fee separately.
* Section 8 & 12. Involve the removal of the
exemption of gasohol for the definition of
motor fuel.
Ms. Slagle estimated that the State lost $6.0 million
dollars in FY 96 from the exemption of gasohol in the motor
fuel definition.
BOB BARTHOLOMEW, DEPUTY DIRECTOR, INCOME AND EXCISE AUDIT
DIVISION, DEPARTMENT OF REVENUE explained that gasohol is
being sold year around. He could not estimate how the tax
would effect the price or availability of gasohol.
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* Section 9. Increases business licenses fees
charged by Occupational Licensing by $12.50
dollars per year for a two year license.
* Section 10. Allows the Department of
Military and Veterans Affairs to charge fees
for emergency management response training.
* Section 11. Allows the Department of
Environmental Conservation to charge chemical
firms fees for pesticide and broadcast
chemical use and for review of subdivision
plans for sewage waste disposal.
Representative Therriault asked the estimated fee cost. Ms.
Slagle stated that the estimated yearly income for pesticide
and broadcast chemical use fees is $100.0 thousand dollars.
The estimation yearly income from subdivision sewage
disposal plan review fees would be $22.0 thousand dollars.
JANICE ADAIR, DIRECTOR, DIVISION OF ENVIRONMENTAL HEALTH,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained that the
Department would be allowed to charge a fee for subdivision
sewage disposal plan review only in areas outside a borough
or municipality. Only approximately 10 percent of the plans
would be affected. The estimated fee per subdivision sewage
plan would be $300 hundred dollars.
Representative Mulder questioned if plans could be approved
by civil engineers. Ms. Adair explained the current
procedure. She noted that the Department of Environmental
Conservation does the compliance review in all areas of the
State except for Valdez. She noted that waste water and
sewage disposal is being reviewed to ensure that lots are
sized sufficiently and water systems are far enough away
from an on lot sewage system.
Representative Mulder questioned if there is a duplication
of the civil engineer's review. Ms. Adair explained that
the civil engineer reviews municipal ordinances or Title 29
requirements. She noted that Anchorage has adopted
ordinances on this topic. She acknowledged that the
Department of Environmental Conservation reviews work
completed by the civil engineer.
Representative Mulder argued that civil engineers "are going
to be extremely cautious about making those kind of
determinations and putting their name on any document."
Representative Therriault asked if all organized boroughs
would do their own review. Ms. Adair agreed that the
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implication is that all organized boroughs would do their
own review. She referred to a letter of intent adopted by
the Senate. She noted that the Department of Environmental
Conservation did not support the amendment to make organized
boroughs responsible for this review. She noted that the
implementation date of July 1, 1996, would occur in the
middle of the construction season. She stressed that with
more time some organized municipalities could take over the
review, but estimated that some second class cities will not
be able to implement the review.
Ms. Adair clarified that the Department would not charge a
fee in areas that have their own system. Representative
Therriault acknowledged that local communities should do the
function. He stressed that there should be more time to
allow negotiation between the Administration and local
governments. He expressed concern with the section.
Ms. Adair noted that the Administration supports the
restriction requiring that each of the four parcels within
the lot is at least 1 acre in size. Ms. Adair noted that
the Administration would like to have "outside of an
organized borough or municipality" deleted from the bill.
She emphasized that the Department would continue to work
with local governments.
Representative Brown asked if it is clear that
municipalities have the authority to charge fees if they
assume this function. Ms. Adair could not confirm that
there is authorization in statute. She pointed out that
Anchorage and Valdez charge fees. She stressed that there
is nothing in Title 29 to preclude municipalities from
charging a fee. She noted that there is specific language
in the Department's statues stating that to the extent that
a program is done by a municipal government the Department
of Environmental Conservation may not charge a fee for that
service.
In response to a question by Representative Martin, Ms.
Slagle explained that there are only three sections that
have any effect on expenditures. She noted that
unrestricted general fund dollars would be freed by the
transfer to program receipts.
Representative Brown MOVED to delete "outside an organized
borough or municipality" on page 5, lines 13 & 14. There
being NO OBJECTION, Amendment 1 was so ordered.
Representative Grussendorf referred to page 3, line 20. He
suggested that "prosecuted or held" be changed to
"prosecuted and held". He MOVED to RESCIND Amendment 1.
There being NO OBJECTION, it was so ordered. He MOVED to
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AMEND Amendment 1 by adding "prosecuted and held". There
being NO OBJECTION, it was so ordered. He MOVED to adopt
Amendment 1 as amended, "may charge a prisoner prosecuted
and under a municipal ordinance." There being NO OBJECTION,
it was so ordered.
PAUL GROSSI, DIRECTOR, WORKMEN'S COMPENSATION, DEPARTMENT OF
LABOR discussed Section 4. He noted that the section was
included to approximate the fee that employers pay when they
buy a workers' compensation policy. He emphasized that the
legislation would assure that self-insurers pay their fair
share. He estimated that the amount is less than they would
pay if they purchased a workers' compensation policy. He
noted that state and local governments are exempt. He noted
that local governments were included in the original
version. He explained that the State was excluded because
it was deemed that the State already pays. The legislation
was amended in the Senate Finance Committee. The University
is also exempted from the requirement.
Representative Grussendorf questioned if the legislation
could be amended to include a fee of up to 4 percent. Mr.
Grossi explained that it would be possible to make the
amendment. He was uncertain of the effect.
Representative Martin noted that the University was
encouraged to become self insured to save funds. Mr. Grossi
agreed that self-insurers save money. He emphasized that
some of the Division's workload is accounted to interaction
with self-insurers.
In response to a question by Representative Martin, Mr.
Grossi noted that approximately $55.0 thousand dollars would
be charged to CARRS Inc.
Representative Therriault summarized that the 4 percent
would be based on the amount paid out in previous years.
(Tape Change, HFC 96-167, Side 2)
Mr. Grossi noted that the Division's total cost is $2.6
million dollars.
Representative Martin MOVED to adopt Amendment 3 (copy on
file). Amendment 3 would delete the requirement for self
insurers to pay 4 percent of the total amount reported in
the report filed by the employer under AS 223.30155 (m), for
the preceding calendar year and substitute a $100 hundred
dollar fee. Representative Brown OBJECTED. Representative
Brown OBJECTED.
DWIGHT PERKINS, SPECIAL ASSISTANT, DEPARTMENT OF LABOR noted
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that the Department intended that the fee be included in SB
216 from its origin. He spoke in support of the amendment.
He maintained that self-insurers receive the same work from
the Department that employers that are not self insured
receive.
Mr. Grossi explained that the Division regulates self-
insured employers, conduct hearings to resolve disputes,
provides data base information, and maintains an injury
fund.
Representative Kohring expressed concern with the amendment.
He noted that self-insurers do not support the amendment.
He pointed to the exemption of state and local governments.
Mr. Grossi explained that employers who purchase a workers'
compensation plan pay a 2.7 percent annual premium tax.
Self-insurers do not pay this amount. The fees paid by the
premium tax goes to the General Fund. He noted that the fee
is not an exact representation of costs.
Mr. Dwight pointed to a seafood company that became self
insured. He noted that their last workers' compensation
premium was $1.4 million dollars at a premium tax of $37.0
thousand dollars. If the Company was charged a four percent
fee on all compensation paid they would have paid under
$15.0 thousand dollars to the State. He explained that the
four percent is only charged on actual claims paid. Mr.
Grossi added that even if their access premium tax were
added in they would pay under $20.0 thousand dollars.
Representative Mulder questioned the actual cost to process
the claims. Mr. Grossi acknowledged that the concept is
fair, but stressed that it would be difficult to assess the
exact cost. He emphasized that there are also ancillary
costs. Representative Mulder suggested that the section
could be amended to state that the self insurers "shall pay
a fee through regulation to cover the direct cost of
administrative overhead by the Department, not to exceed
four percent of the total amount reported."
ERIC TOLLEFSEN, ATTORNEY, CARR-GOTTSTEIN, ANCHORAGE
testified against the legislation. He noted that Carr-
Gottstein Inc. would be the largest payer. He observed that
their cost for the last four years would average $57.0
thousand dollars. He maintained that the tax would be paid
on something that they did not purchase. He emphasized that
they are self insured to save money. He pointed out that
their claims are self adjusted. He noted that their fees on
insurance was $19.0 thousand dollars last year. He alleged
that the four percent fee would be greater than the amount
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needed to directly fund the Division of Workers'
Compensation and the Division of Insurance. He pointed out
that the first year of self insurance is not reflective of
the average cost of several years.
Representative Mulder asked if the industry is willing to
cover their cost to the system. Mr. Tollefsen stated that
the industry would be willing to look at what makes sense.
Representative Mulder asked why the Workers' Compensation
Committee of Alaska (WCCA) did not oppose the legislation in
the Senate. Mr. Tollefson acknowledged that they were not
paying as much attention as they should have been.
Representative Therriault asked the total amount brought in
by the 2.7 percent premium tax. Mr. Grossi stated that the
2.7 percent premium tax results in approximately $4.7
million dollars. The Division of Workers' Compensation's
general fund budget is approximately $2.6 million dollars.
The Division of Insurance's general fund budget pertaining
to self insurers is approximately $1.5 million dollars.
Representative Therriault concluded that the program is self
funded. Mr. Grossi maintained that the total cost is closer
to $5.0 million dollars.
Representative Brown questioned if the effective date should
be delayed to July 1, 1997 to allow parties to find a
solution. Representative Mulder expressed concern with
Representative Brown's proposal. Representative Brown
pointed out that if a solution is not found the issue could
be brought to the next Legislature. Representative
Therriault recommended that the section be deleted.
Representative Brown noted that there would be less
incentive to resolve the issue if the section is not
contained in the legislation. Representative Parnell
pointed out that the section is contained in the title.
Representative Martin emphasized that the industry needs
time to find a solution. Representative Therriault pointed
out that the title consideration could be resolved.
Representative Grussendorf agreed that the title would not
prevent the section's removal.
A roll call vote was taken on the MOTION to adopt Amendment
3.
IN FAVOR: Kelly, Kohring, Martin, Navarre, Foster
OPPOSED: Brown, Grussendorf, Mulder, Parnell, Therriault
Co-Chair Hanley was absent from the vote.
The MOTION FAILED (5-5).
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Representative Mulder MOVED to delete Section 4. There
being NO OBJECTION, it was so ordered. He noted that the
deletion does not reflect that self insurers should pay for
their service. He emphasized that the industry and
Department need to work together for a solution.
Co-Chair Foster MOVED to adopt Amendment 2 (copy on file).
TOM WRIGHT, STAFF, IVAN IVAN explained that Amendment 2
would increase the fees charged prisoners in municipal jails
from $70 to $100 dollars. Representative Mulder spoke in
support of the amendment. He noted that indigent prisoners
will not pay the fee. He emphasized the high prison costs
in Alaska.
Representative Mulder suggested that if municipalities are
reimbursed the reimbursement would be used to offset the
state contract jail contract.
BOB COLE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
CORRECTIONS explained that community jails contracts are at
a fixed price for FY 97 - 98. The amount was fixed by the
Community Jails Task Force. There is no matching
requirement in the contracts. The cost per care varies per
contract. The Department did not object to the amendment.
He did not think there would be a savings to the State. He
noted that many contract jails are supported in part by
local funds. The State only pays the full cost in one or
two contracts. He emphasized that many communities feel
that the state share does not meet the total operating cost
of the jails.
Representative Grussendorf spoke against the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
2.
IN FAVOR: Kohring, Mulder, Kelly, Foster
OPPOSED: Martin, Navarre, Parnell, Therriault, Brown,
Grussendorf
Co-Chair Hanley was absent from the vote.
The MOTION FAILED (4-6).
Representative Therriault referred to Section 11. He noted
constituent frustration with the administration of reviews
of subdivision sewage plans. Representative Brown pointed
out that the funding has been removed which would have
allowed the Department of Environmental Conservation to
continue the function.
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Representative Therriault disagreed that the funding was cut
for the function. He pointed out that the funding was left
in the transfer to statewide public services. The
Department choose to take the cut that was given and spread
it to this function. Representative Brown pointed out that
the result is that the money is not in the budget. She
emphasized that the function will not be done if there is no
money to pay for it.
Ms. Adair summarized that the Subcommittee did not
specifically identify subdivision planning reviews in the
reduction to the Division of Statewide Public Service. She
emphasized that this is the only function that is funded one
hundred percent by general funds. She stressed that the
Department cannot make further reductions without
eliminating programs. She stated that this is the only area
that the reduction could be taken from.
Representative Therriault questioned if the municipality
could empower a local engineer to do the review. Ms. Adair
could not answer. She pointed out that this is a public
health function. There may be restrictions on delegating to
a private entity a public health function that is seen as an
inherent power of government. She emphasized that the
Department wants to establish the function on a fee
structure so that a local government could take it over.
She suggested that it may not be as controversial as a local
fee program if it is established by the State.
Ms. Slagle noted that there is a drafting error in the
effective date section. She noted that Sections 8 and 12
are not reflected in the effective date clause. She noted
that Section 16, on page 6 needs to be amended to include
Sections 8 and 12.
Representative Navarre MOVED to amend Section 16 by
including Sections 8 and 12.
Representative Brown MOVED to report HCS CSSB 216 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 216 (FIN) was reported out of Committee with "no
recommendation" and with nine fiscal impact notes, two by
the Office of the Governor, 1/12/96, one by the Department
of Natural Resources, 5/2/96, one by the Department of
Revenue, 5/2/96, one by the Department of Environmental
Conservation, 5/4/96, one by the Department of Commerce and
Economic Development, 1/12/96, one by the Department of
Education, 5/2/96, Department of Military and Veterans
11
Affairs, 1/12/96 and one by the Department of Labor.
(Tape Change, HFC 96-168, Side 1)
SENATE CONCURRENT RESOLUTION NO. 23
Relating to long range financial planning.
Representative Mulder MOVED to report HCS CSSCR 23 (STA) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS SCR 23 (STA) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Senate State Affairs Committee, 2/9/96.
SENATE BILL NO. 215
"An Act streamlining the functions of state
government, including authorizing the commissioner
of fish and game to award grants for certain
resource activities; allowing agents selling fish
and game licenses and tags to retain certain
compensation; authorizing the Department of Health
and Social Services to award grants for certain
services for developmentally delayed or disabled
children; relating to rabies control and
administration of flour and bread standards by the
Department of Environmental Conservation;
repealing the Athletic Commission, the regulation
of boxing and wrestling, the certification of
professional geologists, and the Water Resources
Board; repealing certain filing statements and
bonds for enforcement and collection of certain
taxes; and providing for an effective date."
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR noted that there are some
legal concerns regarding portions of the legislation.
Ms. Slagle provided members with a sectional analysis of
CSSB 216 (FIN) am (copy on file). She review the sectional
analysis.
* Sections 1 & 2. Allows school districts to submit
reports for their six year plans for capital
maintenance and construction requirements to the
Department of Education on a biennial basis.
* Section 2. Allows the University of Alaska to
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require employees to deposit paychecks directly
into a bank, savings and loan or credit union.
Processing cuts will be reduced.
* Section 4. Allows the Department of Fish and Game
to award grants for Kenai River drainage projects
specifically appropriated for FY 94 and FY 96.
Without this section the grants would have to be
passed through another state organization with
granting authority.
* Sections 5, 6, and 8. Allows agents of sport
fishing and hunting licenses and tags to retain
the full 5 percent allowed for compensation for
their services. Without these sections money
would be paid to the State and then transferred
back.
* Section 7. Allows agents of sport fishing and
hunting licenses and tags to assign a portion of
their compensation to an in-state nonprofit fish
or game association. This section was added in
the Senate.
* Sections 9 - 13. Allows the Department of
Commerce and Economic Development to collect taxes
on insurance premiums more frequently than on an
annual basis and to be collected electronically.
Representative Parnell asked if this change would effect
insurance companies. Ms. Slagle stated that insurance
industry representatives testified that they could accept
quarterly collection, but did not want collections to be
more frequent.
* Section 14. Reduces the requirements for filing
of credits for certain mining exploration costs.
This would eliminated the annual filing and
certification process and substitute a threshold
of when a credit reaches $250.0 thousand dollars
or the holder is ready to take the credit.
* Section 15. Requires the Alaska Railroad
Corporation to use competitive bidding on
construction contracts over $25.0 thousand
dollars, that the Department of Transportation and
Public Facilities authorizes. This section was
added in the Senate.
* Section 16. Shortens the time limit on payment of
warrants to 1 year. The current statute is for 2
years. This would be consistent with the
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unclaimed property statutes.
* Section 17. Calculates terminal leave payments
based on annualized rate of pay.
* Section 18. Is in conjunction with a repealer in
Section 24 which eliminated the non-resident tax
affidavit tax bond program.
* Sections 19 & 20. Allows the Department of Health
& Social Services granting authority for the
Infant Learning Program.
* Section 21. This section would restrict certain
state corporations to contract for lobbying
activities. This section is a duplication.
* Section 22. Repeals the requirement that the
Department of Environmental Conservation report
and care for animals suspected of rabies and
handle the disposal of rabid animals. Eliminates
the requirement that the Department regulate the
vitamin and mineral content of flour and bread
sold in the State. This requirement is a
duplication of federal regulations. Eliminates
the requirement that employees that have separated
from state government employment and rehired must
repay leave received in cash at the time of
separation.
* Section 23. Eliminates the Athletic Commission,
Boxing and Wrestling Commission. They have not
been active in the past several years. Eliminates
the requirement that professional geologists be
certified by the Department of Commerce and
Economic Development. Eliminates the Water
Resources Board.
* Section 24. Eliminates the calculation required
to transmit remainder of vendor compensation for
issuance of sport fishing and hinging licenses.
Eliminates non-resident affidavit tax bond
program.
* Sections 25 and 26. These sections are
transitional language.
* Section 27. This section deals with the
applicability of warrants issued on or after the
effective date of Section 16.
* Section 28. Restricts the payment of state money
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to entities that are not incorporated under the
laws of the State.
* Sections 29 - 31. These sections implement
effective dates
Representative Brown referred to Section 5. She asked if
there are provisions for auditing of vendors.
KEVIN BROOKS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF FISH AND GAME explained that there is a monthly reporting
system with vendors. He stated that the Department is
comfortable with the shift to a retained fee. He emphasized
that the current system is redundant.
Representative Brown referred to Section 14. She expressed
concern that the certification be contemporaneous with when
the money and records are available. She emphasized that it
would not be sensible to allow records to be collected for
20 years before they are turned in.
CAROL CAROLL, SPECIAL ASSISTANT, DEPARTMENT OF NATURAL
RESOURCES pointed out that CPA certification would be
required when credits reach $250.0 thousand dollars.
Representative Brown noted that credits could be collected
for a number of years. Ms. Caroll reiterated that credits
would be turned in when they reach at least $250.0 thousand
dollars or when production begins. She agreed that the
language could be tightened. She explained that the
Department did not want to require annual certification due
to the amount of additional paperwork. Representative Brown
noted that the credits are direct credits against
obligations owed to the State. She noted that there is no
requirement for the CPA to certify that credits are correct
or that the expenditures actually took place. Ms. Caroll
suggested a three year limit.
Representative Brown referred to Sections 19 and 20.
ELMER LINDSTROM, SPECIAL ASSISTANT, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES explained that these sections will allow the
Department to continue the status quo. He noted that the
addition of federal aid required regulations. The
Department of Law reviewed the regulations and concluded
that the Department of Health & Social Services did not have
sufficient grant making authority.
Representative Therriault provided members with Amendment 1
(copy on file).
KEN BOYD, DIRECTOR, DIVISION OF OIL AND GAS, DEPARTMENT OF
NATURAL RESOURCES discussed Amendment 1. He stressed that
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the amendment should be considered a conceptional amendment.
He explained that Section 17 clarifies under and over
payment of royalties and how they are calculated. Section
18 sets up a period of time during which interest will
accrue on overpayments. He observed royalty payments are
for the preceding month. He noted that there are generally
metering errors. He added that smaller royalty payers base
their payments on the larger royalty payers. If the larger
payer is wrong then the smaller companies are wrong. He
noted that errors are generally cleared up in 60 days. He
stressed that small adjustments are not worth the
administrative overhead. The amendment would allow the
Department to dismiss small over or under payments. The set
interest rate is 11 percent. He maintained that "may"
should be changed to "shall".
Representative Parnell questioned the interest rate.
Representative Therriault noted that the existing statutory
language sets the interest rate.
Amendment 1 was HELD.
Representative Mulder MOVED to report CSSB 215 (FIN) am out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS SB 215 (FIN) am was reported out of Committee with "no
recommendation" and with three fiscal impact notes, one by
the Department of Fish and Game, one by the Department of
Revenue, dated 5/1/96, and one by the Department of Commerce
and Economic Development, dated 1/12/96; and with four zero
fiscal notes, one by the Department of Revenue, dated
5/1/96, one by the Department of Environmental Conservation,
dated 1/12/96, one by the Department of Health & Social
Services, dated 1/12/96, and one by the Department of
Natural Resources, dated 5/1/96.
SENATE BILL NO. 216
An Act relating to fees or assessment of costs for
certain services provided by state government,
including hearing costs related to the real estate
surety fund; fees for authorization to operate a
postsecondary educational institution or for an
agent's permit to perform services for a
postsecondary educational institution;
administrative fees for self-insurers in workers'
compensation; business license fees; fees for
activities related to coastal zone management,
training relating to emergency management
response, regulation of pesticides and broadcast
16
chemicals, and subdivision plans for sewage waste
disposal or treatment; and providing for an
effective date.
Representative Mulder MOVED to RESCIND the Committee's
action in reporting HCS CSSB 216 (FIN) from Committee.
There being NO OBJECTION, it was so ordered.
Co-Chair Hanley noted that the removal of Section 4 resulted
in the need for a Resolution adopting a title change.
Representative Mulder MOVED to RESCIND the Committee's
action in failing to adopt Amendment 3. There being NO
OBJECTION, it was so ordered.
Representative Mulder MOVED to adopt Amendment 3. There
being NO OBJECTION, it was so ordered.
Representative Mulder MOVED to report HCS CSSB 216 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes.
HCS CSSB 216 (FIN) was reported out of Committee with "no
recommendation" and with nine fiscal impact notes, two by
the Office of the Governor, 1/12/96, one by the Department
of Natural Resources, 5/2/96, one by the Department of
Revenue, 5/2/96, one by the Department of Environmental
Conservation, 5/4/96, one by the Department of Commerce and
Economic Development, 1/12/96, one by the Department of
Education, 5/2/96, Department of Military and Veterans
Affairs, 1/12/96 and one by the Department of Labor.
ADJOURNMENT
The meeting adjourned at 4:30 p.m.
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