Legislature(1997 - 1998)

01/30/1997 01:37 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                        January 30, 1997                                       
                            1:37 P.M.                                          
                                                                               
  TAPE HFC 97-15, Side 1, #000 - end.                                          
  TAPE HFC 97-15, Side 2, #000 - end.                                          
  TAPE HFC 97-16, Side 1, #000 - #126.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Therriault  called  the  House  Finance  Committee                 
  meeting to order at 1:37 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kelly                           
  Co-Chair Therriault           Representative Kohring                         
  Representative Davies         Representative Martin                          
  Representative Davis          Representative Moses                           
  Representative Foster         Representative Mulder                          
  Representative Grussendorf                                                   
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Mark Boyer, Commissioner,  Department of Administration; Ron                 
  Otte,  Commissioner,   Department  of   Public  Safety;   Bo                 
  Brownfield,  Deputy  Director, Department  of Transportation                 
  and  Public  Facilities;  Del  Smith,  Deputy  Commissioner,                 
  Department  of  Public   Safety;  Nicole  Poirrier,   Staff,                 
  Representative Kott;  Nanci Jones, Director,  Permanent Fund                 
  Dividend Division.                                                           
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 2      "An  Act allowing, for  the purposes  of permanent                 
            fund  dividend  eligibility,   an  individual   to                 
            accompany,  as the  spouse  or minor  or  disabled                 
            dependent, another eligible resident who is absent                 
            for any  of the  following  reasons:   vocational,                 
            professional,  or  other  specific  education  for                 
            which  a  comparable  program  is  not  reasonably                 
            available in the state; secondary or postsecondary                 
            education;  military  service;  medical treatment;                 
            service in the  Congress or in the peace corps; to                 
            care for  the individual's terminally  ill parent,                 
            spouse,  sibling, child,  or stepchild; for  up to                 
            220 days to settle the  estate of the individual's                 
            deceased  parent,  spouse,   sibling,  child,   or                 
            stepchild; to care for a parent,  spouse, sibling,                 
            child,    or    stepchild    with    a    critical                 
                                                                               
                                1                                              
                                                                               
                                                                               
            life-threatening illness whose treatment  plan, as                 
            recommended by the  attending physician,  requires                 
            travel outside  of the  state for  treatment at  a                 
            medical specialty complex;  or other reasons  that                 
            the  commissioner  of  revenue  may  establish  by                 
            regulation;   requiring,   for  the   purposes  of                 
            permanent  fund  dividend  eligibility,   a  state                 
            resident   to   have   the   intent   to    remain                 
            indefinitely;  relating  to  the  eligibility  for                 
            1992, 1993,  1994, 1995, 1996, and  1997 permanent                 
            fund dividends  of certain spouses  and dependents                 
            of  eligible  applicants;  and  providing  for  an                 
            effective date."                                                   
                                                                               
            CSHB 2 (FIN) was reported  out of Committee with a                 
            "do pass" recommendation and with a  fiscal impact                 
            note by the Department of Revenue.                                 
                                                                               
  EO 98     Transferring commercial highway-related  functions                 
            from  the  Department  of  Commerce  and  Economic                 
            Development and the Department of Public Safety to                 
            the  Department  of   Transportation  and   Public                 
            Facilities.                                                        
                                                                               
            EO   98  was   HELD   in  Committee   for  further                 
       consideration.                                                          
                                                                               
  EO 99     Transferring    the    responsibility    for   the                 
            administration of most  of the statutes in  AS 28,                 
            regarding  motor  vehicles,  and  other  statutory                 
            functions  relating  to motor  vehicles  and other                 
            vehicles, from the Department of Public Safety  to                 
            the Department of Administration.                                  
                                                                               
       EO 99 was HELD in Committee for further consideration.                  
  HOUSE BILL NO. 2                                                             
                                                                               
       "An Act allowing,  for the  purposes of permanent  fund                 
       dividend eligibility,  an individual  to accompany,  as                 
       the  spouse  or minor  or  disabled dependent,  another                 
       eligible  resident  who  is  absent   for  any  of  the                 
       following reasons:  vocational,  professional, or other                 
       specific  education for which  a comparable  program is                 
       not  reasonably available  in the  state; secondary  or                 
       postsecondary  education;  military   service;  medical                 
       treatment;  service  in the  Congress  or in  the peace                 
       corps;  to  care for  the  individual's terminally  ill                 
       parent, spouse, sibling, child, or stepchild; for up to                 
       220  days  to  settle the  estate  of  the individual's                 
       deceased parent, spouse,  sibling, child, or stepchild;                 
       to  care  for  a  parent,  spouse, sibling,  child,  or                 
                                                                               
                                2                                              
                                                                               
                                                                               
       stepchild  with  a  critical  life-threatening  illness                 
       whose  treatment plan, as  recommended by the attending                 
       physician,  requires travel  outside of  the state  for                 
       treatment  at a  medical  specialty complex;  or  other                 
       reasons that the commissioner  of revenue may establish                 
       by regulation; requiring, for the purposes of permanent                 
       fund dividend eligibility, a state resident to have the                 
       intent  to   remain  indefinitely;   relating  to   the                 
       eligibility for 1992, 1993, 1994,  1995, 1996, and 1997                 
       permanent  fund  dividends   of  certain  spouses   and                 
       dependents of eligible applicants; and providing for an                 
       effective date."                                                        
                                                                               
  Representative Davies MOVED  to adopt  Amendment 1 (copy  on                 
  file).    He  explained  that  the  amendment  would  change                 
  "indefinitely"   to   "permanently".     He   observed  that                 
  "permanently" is in  current statutes.   He maintained  that                 
  the  meaning  of  "indefinite"  as  defined by  Black's  Law                 
  Dictionary, has the  connotation of temporary.   He stressed                 
  that "permanent" has  the connotation of lasting  for a long                 
  time.  He pointed out  that the original legislative  intent                 
  was to provide dividends based  on an individual's longevity                 
  in the State of Alaska.                                                      
                                                                               
  Representative  Martin  spoke  against  the  amendment.   He                 
  maintained that  "permanent" is  too limiting.   He  alleged                 
  that it is almost unconstitutional  to require that, because                 
  the  State of  Alaska  is going  to give  a  person a  gift,                 
  residents   must  guarantee   that  they   want   to  remain                 
  permanently in Alaska.   He  pointed out that  circumstances                 
  change.  Job  opportunity, marriage or military  service can                 
  cause a change in residency.                                                 
                                                                               
  Representative  Mulder spoke in opposition to the amendment.                 
  He acknowledged the  emotional appeal of using  "permanent".                 
  He  stated that he  would like to  say that the  dividend is                 
  only going  to be paid to "real Alaskans," that are going to                 
  be here  forever.  He  emphasized that times  and conditions                 
  change and unforeseen things  can happen in the future.   He                 
  maintained that the  Division has been very  stringent about                 
  who should and should not receive the dividend.                              
                                                                               
  Representative Kott maintained  that "indefinitely" has  the                 
  connotation  of not  having  the intention  of leaving.   He                 
  pointed  out  that   the  Division  requested  the   use  of                 
  "indefinitely".                                                              
                                                                               
  NANCI  JONES,  DIRECTOR,  PERMANENT FUND  DIVIDEND  DIVISION                 
  stated that the change to  "indefinitely" is consistent with                 
  the Division's  philosophy that a  person cannot be  held in                 
  Alaska forever.  She noted  that at the time a person  signs                 
  their dividend they pledge their intent  to remain in Alaska                 
                                                                               
                                3                                              
                                                                               
                                                                               
  between January and March 31st of  the year.  She questioned                 
  if a person decides to change residency or seek  a change of                 
  residency  after  March  31st,   should  they  recall  their                 
  application.   She  maintained  that "permanently"  does not                 
  exist.  She pointed out that  guidelines still apply for the                 
  year and a day of required residency.                                        
                                                                               
  Co-Chair  Hanley   quoted  from   Black's  Law   Dictionary,                 
  "indefinite  contemplates  that  condition  will  end at  an                 
  unpredictable time, whereas  permanent does not  contemplate                 
  that condition  will cease  to exist."   He  asked how  many                 
  appeals the  Division  would deny  or  accept based  on  the                 
  change.                                                                      
                                                                               
  Ms. Jones stated  that the Division would  allow more people                 
  under the change to "indefinitely".  She stressed that there                 
  would be less appeals.  She maintained that "permanently" is                 
  more restrictive than  the actual  statute that governs  the                 
  definition of a state resident.                                              
                                                                               
  Representative   Grussendorf  spoke   in   support  of   the                 
  amendment.    He stressed  that  a seasonal  worker  is here                 
  indefinitely, based on the length of the season or job.                      
                                                                               
  Co-Chair Therriault asked  if there  is a compelling  reason                 
  for the use of "indefinitely".                                               
                                                                               
  Ms. Jones  stressed that  guidelines require  that a  person                 
  have  residency ties  such  as  checking  accounts,  voter's                 
  registration, or children in school.   She pointed out  that                 
  the  area  of dispute  comes  after the  individual  has met                 
  residency obligations for a period of time and things beyond                 
  their control result in a change in residency.  The Division                 
  then reassess  their application  based on  their intent  to                 
  stay at  the time the  application was filed.   She spoke in                 
  support of "indefinitely".   She maintained that there  is a                 
  difference in substance versus form.                                         
                                                                               
  Representative  Martin  observed  that  statutes  require  a                 
  person to   establish residency by being  physically present                 
  in the State with the intent to make a home.                                 
                                                                               
  In response to a question by  Co-Chair Therriault, Ms. Jones                 
  noted that the Division receives calls  regarding applicants                 
  that have moved or intend to move out of state.  If a person                 
  leaves  the  State  after their  application  is  filed, but                 
  before the distribution of the dividend, their dividend will                 
  be denied.  These  cases are appealed based on  the argument                 
  that at the  time of  the application the  applicant had  no                 
  intention  of  leaving  the  State  and  met  the  residency                 
  requirements.                                                                
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  Co-Chair Hanley summarized that the  individual that has met                 
  the residency  requirements  during the  previous  year  but                 
  moves after the application period would be denied under the                 
  definition of "permanently" but not under "indefinitely".                    
                                                                               
  Representative   Davies  noted  that  "intend"  is  used  in                 
  statutes referring to the Permanent  Fund Dividend and basic                 
  residency requirements.   He  argued that  the key  question                 
  hinges on, at  the time the  application was filed, did  the                 
  applicant intend  to  remain  a resident  of  the  State  of                 
  Alaska.    He  pointed out  that  the  applicant  must be  a                 
  resident at the  time of  the application and  that being  a                 
  resident includes the  intent to make  a home in the  State.                 
  He maintained  that it is appropriate for the Permanent Fund                 
  Dividend Statute to  have additional or different  tests for                 
  residency.  He maintained  that the question is  whether the                 
  applicant's actions were consistent with a genuine intent to                 
  remain in Alaska.                                                            
                                                                               
  Representative  Martin reiterated  that  "permanent" is  too                 
  restrictive.    He  stressed  that   citizens  are  free  to                 
  participate in the nation.                                                   
                                                                               
  Representative Davis spoke in support  of the amendment.  He                 
  pointed  out that  the  Permanent Fund  Dividend Application                 
  questions if applicants "intend to remain an Alaska resident                 
  permanently".                                                                
                                                                               
  Representative Martin questioned if long term residents that                 
  may want to return to their birth place in their later years                 
  should be required to refund dividends received during their                 
  residency.                                                                   
                                                                               
  Representative Kott stressed  that "permanently" is  used in                 
  the application  because it is  part of the  law.   He noted                 
  that "indefinitely"  was used  on applications  from 1992  -                 
  1995.  "Indefinitely" was changed in 1996 to "permanently".                  
                                                                               
  Representative   Davies   emphasized  that   an  applicant's                 
  activities during the  period they certify that  they intend                 
  to  remain  determine eligibility.    He maintained  that if                 
  their  actions,  at  that time,  are  inconsistent  with the                 
  certification they should be denied.                                         
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
  1.                                                                           
                                                                               
  IN FAVOR: Davies, Davis, Grussendorf, Hanley, Therriault                     
  OPPOSED:  Foster, Kelly, Kohring, Martin, Moses, Mulder                      
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  Co-Chair  Therriault  MOVED to  adopt  Amendment 2  (copy on                 
  file).  He noted that  the Committee discussed narrowing the                 
  scope  of  persons  that  can  make  applications  for  past                 
  dividends, to those that actually filled out applications on                 
  a yearly  basis.   Amendment 2  would  limit eligibility  to                 
  applicants that  applied for  the prior  year dividend.   He                 
  pointed  out  that   applicants,  who   were  absent   while                 
  accompanying an eligible Alaska resident, were notified that                 
  they should apply for a dividend.                                            
                                                                               
  In  response  to a  question  by Representative  Davies, Ms.                 
  Jones  noted that  applicants  were  allowed absences  while                 
  accompanying an eligible spouse from 1992  - 1995.  In 1995,                 
  applicants were denied for absences while accompanying their                 
  eligible  spouse.   A  separate  letter  was sent  to  these                 
  applicants which encouraged  them to  file.   The were  also                 
  directed to file  on the  1996 and 1997  applications.   She                 
  added that another letter  was sent after HB 4  was defeated                 
  encouraging  them to  keep applying.   The  court  case that                 
  disallowed the absence  was December  16, 1993.   Applicants                 
  whose applications  were under  review or  appeal for  other                 
  reasons were affected by the court case.  Only 25 applicants                 
  were not paid their 1992 dividend due to the court case.  In                 
  1993, while the actual court  case was pending, the majority                 
  of those that applied were paid.  The first year that all of                 
  these applicants were denied was 1994.  She noted that there                 
  has  always  been  an  indicator   on  the  application  for                 
  applicants that were  absent while accompanying an  eligible                 
  Alaska resident.                                                             
                                                                               
  Representative Kott  reiterated that 25 applicants  were not                 
  paid  their  1992  dividend  while  absent  accompanying  an                 
  eligible spouse.   Their applications were under  appeal for                 
  reasons other  than  their  absence  while  accompanying  an                 
  eligible Alaska resident.  The  Department of Law determined                 
  that they would not try to  collect from those that received                 
  dividends in  1992  while accompanying  an eligible  Alaskan                 
  resident.    He  added  that  there  were  1,052  applicants                 
  affected by the  court decision in  1993, 1,900 in 1994  and                 
  1,400 in 1995.                                                               
                                                                               
  Representative  Davies provided  members  with a  memorandum                 
  from Tamara Cook, Director, Legislative Legal Services (copy                 
  on  file).   She  concluded that  allowing eligibility  of a                 
  resident  for  a prior  year  dividend,  that  they did  not                 
  previously  apply  for, may  result  in an  equal protection                 
  challenge.    Representative  Davies pointed  out  that  the                 
  number of persons affected is relatively small.   He pointed                 
  out  that  the State  could be  open  to an  expensive court                 
  challenge on behalf of a small number of people.                             
                                                                               
  (Tape Change, HFC 97-15, Side 2)                                             
                                                                               
                                6                                              
                                                                               
                                                                               
  Co-Chair Therriault WITHDREW Amendment 1.                                    
                                                                               
  Co-Chair Hanley  referred to subsection (2) on  page 4, line                 
  29.    He  noted  that  applicants  that  are  retroactively                 
  eligible for  a 1992 -1997  dividend would be  disallowed if                 
  they are not eligible for the 1998 dividend.                                 
                                                                               
  Co-Chair Therriault noted  that Ms. Cook could not  recall a                 
  time when past eligibility was based on present eligibility.                 
                                                                               
                                                                               
  Representative Davies spoke  in support  of the deletion  of                 
  subsection (2) on page 4, line 29.                                           
                                                                               
  Co-Chair Hanley MOVED to  delete subsection (2) on  line 29,                 
  page  4,  and  renumber accordingly.    Co-Chair  Therriault                 
  pointed out that subsection (3) is  needed to provide a stop                 
  date.  There being NO OBJECTION, it was so ordered.                          
                                                                               
  Representative Davies noted  the intent that no  interest be                 
  paid on the accrual.                                                         
                                                                               
  NICOLE  POIRRIER,  STAFF,  REPRESENTATIVE  KOTT  noted  that                 
  according to Ms. Cook, the  Permanent Fund Dividend Division                 
  has no  statutory authority  to pay  interest on  dividends.                 
  She  noted  that   interest  was   not  paid  on   dividends                 
  retroactively  paid to  18 year  olds for  years  that their                 
  parents did  not file  on their  behalf.   In addition,  the                 
  State takes  the position that this is not  a valid debt.  A                 
  new right is being created for these individuals.                            
                                                                               
  Representative Mulder  MOVED to report  CSHB 2 (FIN)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTION,  it was                 
  so ordered.                                                                  
                                                                               
  CSHB 2 (FIN) was  reported out of Committee with a "do pass"                 
  recommendation  and  with  a  fiscal   impact  note  by  the                 
  Department of Revenue.                                                       
  EXECUTIVE ORDER NO. 98                                                       
                                                                               
       Transferring commercial highway-related  functions from                 
       the Department of Commerce and Economic Development and                 
       the Department of  Public Safety  to the Department  of                 
       Transportation and Public Facilities.                                   
                                                                               
  BO BROWNFEILD, DEPUTY DIRECTOR, DEPARTMENT OF TRANSPORTATION                 
  AND PUBLIC FACILITIES  explained that  EO 98 would  transfer                 
  the Weights  and Measures  Division from  the Department  of                 
  Commerce  and  Economic  Development to  the  Department  of                 
                                                                               
                                7                                              
                                                                               
                                                                               
  Transportation  and  Public Facilities;  and  the Commercial                 
  Trust  Office from  the Department  of Public  Safety.   The                 
  order  pertains   to  the  adjudication  of   oversized  and                 
  overweight  vehicles   on  Alaskan  highways.     There  are                 
  presently   three   different    departments   that    share                 
  responsibility  in  regards   to  oversized  and  overweight                 
  vehicles.  Most  of the regulations governing  oversized and                 
  overweight issues reside in the Department of Transportation                 
  and Public Facilities.  The Department of Transportation and                 
  Public Facilities  issues the  regulations and  oversees the                 
  use of highways and bridges by all commercial vehicles.  The                 
  Department of Transportation and  Public Facilities also has                 
  the responsibility  for the  safety, condition,  maintenance                 
  and operation of highways.                                                   
                                                                               
  Mr. Brownfield  noted that  the Department  of Commerce  and                 
  Economic Development  issues the  permits for  oversized and                 
  overweight vehicles.   The Division of Weights  and Measures                 
  must  contact the  Department of  Transportation and  Public                 
  Facilities  to  obtain  permission to  issue  permits.   The                 
  Department  of   Commerce  and  Economic   Development  also                 
  operates 10 fixed weight stations.   The stations are in and                 
  around the  national highway  system.   There  are no  fixed                 
  stations in Southeast Alaska or  in remote bush communities.                 
                                                                               
                                                                               
  Mr. Brownfield added  that the Department of  Public Safety,                 
  through their  commercial vehicle  program, provides  safety                 
  and secondary size  and weight enforcement.   The Department                 
  of Public Safety also provides a mobile inspection force and                 
  has the overall law enforcement authority.  Because of  this                 
  arrangement there are three departments that must  routinely                 
  deal with trucking issues.                                                   
                                                                               
  Mr. Brownfield stressed that the  consolidation is supported                 
  by all three  departments, the  Teamsters, and the  Truckers                 
  Association.  He  observed that this  function has a  direct                 
  impact on  Intermodal  Surface  Transportation  Act  (ISTEA)                 
  funding.   The State  can be  sanctioned for  as much  as 10                 
  percent of the  State's entire  ISTEA funding if  operations                 
  are not satisfactory.  He  maintained that the consolidation                 
  would increase efficiency and eliminate confusion.                           
                                                                               
  Representative Martin noted that the Division of Weights and                 
  Measures  also  supervises railroad  and  fish scales.   Mr.                 
  Brownfield    noted   that  this  function  would   also  be                 
  transferred to  the Department of Transportation  and Public                 
  Facilities.     He  explained   that   employees  would   be                 
  transferred  from  the Department  of Commerce  and Economic                 
  Development to the Department  of Transportation and  Public                 
  Facilities with the  exception of the two  troopers that are                 
  in the Commercial Vehicle Section.                                           
                                                                               
                                8                                              
                                                                               
                                                                               
  DEL SMITH, DEPUTY COMMISSIONER, DEPARTMENT OF  PUBLIC SAFETY                 
  explained that weight  stations employees  are hired by  the                 
  Division of Weights and Measures with  the power to cite for                 
  specific weight violations.  There are 4 mobile employees in                 
  the  Department  of  Public  Safety  around the  State  with                 
  enforcement powers.  These  4 will remain in  the Department                 
  of Public Safety.                                                            
                                                                               
  Representative Davies pointed out  that responsibilities are                 
  not being changed.                                                           
                                                                               
  Representative Kohring noted  that he had been  contacted by                 
  constituents in  regards to  staffing levels  at the  weight                 
  stations.  He  asked if  a reduction of  staff would  result                 
  from  the  consolidation.   Mr.  Brownfield  noted  that the                 
  intent is  to stream  line operations.   He  noted that  one                 
  position   would   be   reduced   in   the   Department   of                 
  Transportation  and Public  Facilities.    This position  is                 
  currently coordinating operations between the departments.                   
                                                                               
  Co-Chair Therriault noted that the Committee is not required                 
  to take action on the Order.                                                 
                                                                               
  EO 98 was HELD in Committee.                                                 
  EXECUTIVE ORDER NO. 99                                                       
                                                                               
       Transferring the responsibility for  the administration                 
       of most  of  the statutes  in  AS 28,  regarding  motor                 
       vehicles,  and  other statutory  functions  relating to                 
       motor vehicles and other vehicles, from the  Department                 
       of Public Safety to the Department of Administration.                   
                                                                               
  RON  OTTE,   COMMISSIONER,  DEPARTMENT   OF  PUBLIC   SAFETY                 
  explained  that EO 99  would transfer the  Division of Motor                 
  Vehicles  from  the  Department  of  Public  Safety  to  the                 
  Department of Administration.  He noted that the Division of                 
  Motor  Vehicle serves most  Alaskans over  16 years  of age.                 
  The  Division of  Motor Vehicle  receives approximately  $56                 
  million dollars in  federal inspection funds.   The Division                 
  collects  over $36 million dollars a year for the State.  He                 
  noted public frustration with long lines and waiting time at                 
  Division of Motor Vehicle offices.  He acknowledged that the                 
  Department  of Public  Safety  has  not provided  sufficient                 
  resources and oversight  to the program.   He observed  that                 
  the Division has to compete with life and safety programs in                 
  the Department of Public Safety.                                             
                                                                               
  MARK BOYER, COMMISSIONER, DEPARTMENT OF ADMINISTRATION spoke                 
  in support of the transfer.  He noted that the Department of                 
  Administration provides assistance for service delivery.  He                 
                                                                               
                                9                                              
                                                                               
                                                                               
  emphasized  that  the   Department  can  provide   technical                 
  support.    He  maintained  that   the  public  wants  fast,                 
  efficient, convenient, cheap and easy  service.  He stressed                 
  that  the  Department of  Administration  is focused  on the                 
  needs of its customers.  The public will be able to transact                 
  business with credit cards.  He added that the Department is                 
  looking  into  an  automatized  voice  response  system  for                 
  transactions.   The Department  also intends  to develop  an                 
  Internet presence.  Resources will be realigned to speed the                 
  line  process.   He added  that plate  transactions  for new                 
  vehicles could take  place at the dealers.   He acknowledged                 
  that approximately 35 percent of  their customers will still                 
  need to conduct business at the Division.                                    
                                                                               
  Co-Chair Therriault questioned if  the Division will  remain                 
  in the Department  of Public  Safety building in  Fairbanks.                 
  Commissioner Otte stated that the Division's operations will                 
  remain  in  their  current  locations.   Rural  offices  are                 
  sometimes operated by contract.                                              
                                                                               
  Representative Grussendorf  pointed out that  the Department                 
  of Transportation and  Public Facilities  will not have  the                 
  Division's program receipts in their budget.                                 
                                                                               
  Representative   Martin   cautioned  that   program  receipt                 
  authorization will have to go through the Legislative Budget                 
  and  Audit Committee during  the interim.   He stressed that                 
  projects should be  authorized by  the Legislature prior  to                 
  implementation.                                                              
                                                                               
  Representative Davies  questioned if credit card  costs will                 
  be recovered.   Commissioner Boyer stressed that the cost of                 
  handling cash is 3.13  percent per dollar.  Checks  run 3.06                 
  percent  per  dollar.    Credit  card processing  costs  2.4                 
  percent per dollar.   He  emphasized that the  intent is  to                 
  gain efficiencies for  re-deployment of  the resources.   He                 
  added that  peaks in  demand will  be leveled.   He did  not                 
  anticipate any new  capital requirements.   He stressed  the                 
  Department's   intent   to  net   back   the  cost   of  the                 
  transactions.                                                                
                                                                               
  (Tape Change, HFC 97-16, Side 1)                                             
                                                                               
  Commissioner  Boyer  maintained  that  the  cost   of  doing                 
  business  will  be less.    He  reiterated  that the  public                 
  expects  to  transact business  in  a manner  that  is fast,                 
  right, cheap and easy.  He alleged that without the transfer                 
  there will be longer lines.  He  estimated that improvements                 
  could be made  without additional capital  over the next  18                 
  months.                                                                      
                                                                               
  Representative Davies referred to the Governor's transmittal                 
                                                                               
                               10                                              
                                                                               
                                                                               
  letter (copy on file).  He noted that another function being                 
  transferred is  the  counseling of  drivers.    Commissioner                 
  Boyer emphasized that policy is  not being shifted with  the                 
  transfer.                                                                    
                                                                               
  JUANITA  HENSLEY, CHIEF  DRIVER SERVICES, DIVISION  OF MOTOR                 
  VEHICLES,  DEPARTMENT  OF PUBLIC  SAFETY explained  that the                 
  Division is composed of Field  Services and Driver Services.                 
  Driver  Services deal with  maintenance of  driving records,                 
  suspension and revocation of licenses and driver counseling.                 
  The Driver's Improvement  Office is  in the Driver  Services                 
  component.  This unit counsels  drivers in order to  rectify                 
  bad driving habits  and conduct administrative  hearings for                 
  drunk driving arrests.  Driver Services would be included in                 
  the transfer.                                                                
                                                                               
  EO 99 was HELD in Committee for further consideration.                       
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:18 p.m.                                           
                                                                               
                                                                               
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