Legislature(1997 - 1998)

04/03/1998 03:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE FINANCE COMMITTEE                                           
    April 3, 1998                                                              
                           3:00 P.M.                                           
                                                                               
TAPE HFC 98 - 88, Side 1.                                                      
TAPE HFC 98 - 88, Side 2.                                                      
TAPE HFC 98 - 89, Side 1.                                                      
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Therriault called the House Finance Committee                         
meeting to order at 3:00 P.M.                                                  
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Hanley    Representative Kelly                                        
Co-Chair Therriault   Representative Kohring                                   
Representative J. Davies  Representative Grussendorf                           
Representative G. Davis  Representative Moses                                  
Representative Foster  Representative Mulder                                   
                                                                               
Representative Martin was not present for the meeting.                         
                                                                               
ALSO PRESENT                                                                   
                                                                               
Senator Sean Parnell; Representative Ivan Ivan; Richard                        
Vitale, Staff, Senator Sean Parnell; Jack Fargnoli, Senior                     
Policy Analyst, Office of Management and Budget, Office of                     
the Governor; Rod Arno, President, Alaska Outdoor Council;                     
Ken Taylor, Deputy Director, Division of Wildlife                              
Conservation, Department of Fish and Game; Tom Wright,                         
Staff, Representative Ivan; Mike Tibbles, Staff,                               
Representative Therriault.                                                     
                                                                               
The following testified via the teleconference network:                        
Virgil Umpenour, Board of Fisheries, Fairbanks; Michelle                       
Sparck, Resource Specialist, Association of Village Council                    
Presidents, Bethel; Ted Krieg, Natural Resource Department,                    
Bristol Bay Native Association, Dillingham; Herman Morgan,                     
City Manager, Aniak; Gilbert Huntington, Galena.                               
                                                                               
SUMMARY                                                                        
                                                                               
HB 12 "An Act relating to civil liability for injuries                         
or death resulting from equine activities."                                    
                                                                               
 CSHB 12 (FIN) was REPORTED out of Committee with                              
"no recommendation" and with a Department of Law                               
Department of Law, 2/12/98.                                                    
                                                                               
HB 364 "An Act requiring nonresident hunters to be                             
accompanied when hunting moose; and providing for                              
an effective date."                                                            
                                                                               
HB 364 was HELD in Committee for further                                       
consideration.                                                                 
                                                                               
SB 76 An Act relating to long-term plans of certain                            
state agencies and recommendations regarding                                   
elimination of duplication in state agency                                     
functions.                                                                     
                                                                               
HCS CSSB was REPORTED out of Committee with a "do                              
pass" recommendation and with zero fiscal note by                              
the Senator Finance Committee, 3/20/98.                                        
SENATE BILL NO. 76                                                             
                                                                               
"An Act relating to long-term plans of certain state                           
agencies and recommendations regarding elimination of                          
duplication in state agency functions."                                        
                                                                               
Co-Chair Therriault provided members with Amendment 1 at the                   
request of the Office of Management and Budget (copy on                        
file).                                                                         
                                                                               
Page 1, Line 9:                                                                
                                                                               
Change: "issue"                                                                
To: "adopt"                                                                    
                                                                               
Page 1, Line 11:                                                               
                                                                               
Change: "issue"                                                                
To: "adopt"                                                                    
                                                                               
Page 1, Line 12:                                                               
                                                                               
Delete: "should represent the priorities of the                                
majority of state residents and"                                               
                                                                               
Page 3, Line 12:                                                               
                                                                               
Change: "issued"                                                               
To: "adopted"                                                                  
                                                                               
Page 3, Line 12:                                                               
                                                                               
Change: "the guide"                                                            
To: "a guide"                                                                  
                                                                               
                                                                               
Page 3, Line 13:                                                               
                                                                               
After the word "law", insert:                                                  
 "unless contrary to law "                                                     
                                                                               
Page 3, Lines 13 - 14:                                                         
                                                                               
Delete: "The governor shall assure that each agency                            
complies with the mission statement and                                        
achieves the desired results identified by the                                 
legislature."                                                                  
                                                                               
Page 4, Line 14:                                                               
                                                                               
Replace: "each agency shall, on a quarterly basis,                             
identify"                                                                      
With: " each agency shall report periodically on"                              
                                                                               
Page 4, Line 16:                                                               
                                                                               
Change: "issued"                                                               
To: "adopted"                                                                  
                                                                               
Page 4, Line 19:                                                               
                                                                               
Replace: ".legislative finance division.  The                                  
information must"                                                              
With: ".legislative finance division; this                                     
information must"                                                              
                                                                               
Page 4, Line 29:                                                               
                                                                               
Change: "issued"                                                               
To: "adopted"                                                                  
                                                                               
Page 5, Line 3:                                                                
                                                                               
Change: "issued"                                                               
To: "adopted"                                                                  
                                                                               
Page 5, Lines 23 - 25:                                                         
                                                                               
Delete: All of subsection (12); i.e., lines 23 - 25,                           
inclusive.                                                                     
                                                                               
Page 6, Line 16:                                                               
                                                                               
Change: "issued"                                                               
To: "adopted"                                                                  
                                                                               
Page 6, Line 24:                                                               
                                                                               
Change: "issued"                                                               
To: "adopted"                                                                  
                                                                               
Page 6:                                                                        
                                                                               
Insert new section, to read as follows:                                        
* Sec. 10  Transition.                                                         
(a) To provide for an orderly implementation of the                            
process envisioned in sections 1-9, sections 1-9                               
shall apply to:                                                                
                                                                               
(1)  two departments of the executive branch, to                               
be selected jointly by the legislature and the                                 
governor, in the preparation of their fiscal year                              
2000 operating budgets, and                                                    
(2) all departments and agencies of the                                        
executive branch in the preparation of their                                   
operating budgets for fiscal year 2001 and                                     
afterwards.                                                                    
                                                                               
(b)  Mission statements, desired results, performance                          
measures, and the frequency of performance reporting                           
for departments under (a)(1) shall be issued by the                            
legislature through a concurrent resolution.                                   
                                                                               
(c)  The finance committees of the legislature and the                         
office of management and budget shall jointly formulate                        
procedures and timetables for applying the provisions                          
of sections 1-9 under (a)(1) and under (a)(2).                                 
Procedures shall address, at a minimum, how agency                             
missions may be issued or established, and modified;                           
how aspects of agency performance should be selected                           
for measurement; how performance-related information                           
should be collected and reported, including the                                
frequency of reporting; how performance assessment                             
activity should be incorporated into the executive                             
branch and legislative branch budget processes; and how                        
costs associated with the adoption of performance                              
assessment should be identified.                                               
                                                                               
(d) The finance committees of the legislature and the                          
office of management and budget shall publish the                              
results of their efforts and their recommendations                             
under (c) no later than October 1, 1998.                                       
Recommendations shall include the identification of                            
issues or problems, which have not been resolved, and                          
options for resolving them.                                                    
                                                                               
(e) In its fiscal year 2000 operating budget                                   
instructions to departments, after consultation                                
with the legislature, the office of management                                 
and budget shall include as much or as many of                                 
the procedures and timetables published under                                  
(d) as it deems practicable.  Upon issuance of                                 
the instructions, the office of management and                                 
budget shall identify in writing to the finance                                
committees the procedures or timetables                                        
published under (d) which it has chosen not to                                 
include, and its reasons for not including                                     
them.                                                                          
                                                                               
(f) No later than January 15, 1999, the office of                              
management and budget shall submit to the finance                              
committees in writing:                                                         
(1) its findings regarding the adequacy of the                                 
procedures and timetables adopted under (e),                                   
(2) its findings regarding cost impacts                                        
experienced by departments under (a)(1),                                       
(3) its recommendations regarding application of                               
the provisions of sections 1-9 under (a)(2), and                               
(4) Any proposals for clarifying amendments or                                 
legislation, which it may consider, appropriate.                               
                                                                               
Representative Grussendorf MOVED to ADOPT New Amendment 1.                     
                                                                               
JACK FARGNOLI, SENIOR POLICY ANALYST, OFFICE OF MANAGEMENT                     
AND BUDGET, OFFICE OF THE GOVERNOR discussed New Amendment                     
1.  He explained that the amendment has two pieces.  One                       
piece is the transition section.  The other part conforms to                   
the transition section.  He explained that the transition                      
section would describe a transition period and a set of                        
activities.  During the next budget cycle two departments                      
would implement mission statements and performance measures.                   
The two departments would be selected jointly by the                           
legislature and the governor.  This would be for preparation                   
of their fiscal year 2000 operating budgets.  Mission                          
statements and performance measures would be included for                      
all departments and agencies for the fiscal year 2001 and                      
every year thereafter.  The mission statements and                             
performance measures would be included in a concurrent                         
resolution.  This would avoid intent language in the                           
operating budget.  He maintained that a concurrent                             
resolution would be the simplest form to put the principles                    
forward.  He maintained that there would be no intent                          
language conflicts.  The resolution would be for the year                      
2000.                                                                          
                                                                               
Mr. Fargnoli explained that subsection (c) would provide                       
that the finance committees of the legislature work with the                   
Office of Management and Budget to jointly formulate                           
procedures and timetables.  The details of the process would                   
be worked out.                                                                 
                                                                               
Mr. Fargnoli noted that by Oct 1, 1999 the findings and                        
recommendations of the joint effort would be published.  Any                   
areas that remain unresolved would be identified.                              
                                                                               
Mr. Fargnoli observed that subsection (f) provides that the                    
Office of Management and Budget include as much of the                         
procedures and timetables published under (d) as it deems                      
practicable.  The Office of Management and Budget would                        
identify in writing areas not included, and its reasons for                    
not including them.                                                            
                                                                               
Mr. Fargnoli explained that Office of Management and Budget                    
would, no later than January 15, 1999, submit to the finance                   
committees in writing:                                                         
                                                                               
(1) Findings regarding the adequacy of the                                     
procedures and timetables adopted under (e),                                   
(2) Findings regarding cost impacts experienced by                             
departments under (a)(1),                                                      
(3) Recommendations regarding application of the                               
provisions of sections 1-9 under (a)(2), and                                   
(4) Any proposals for clarifying amendments or                                 
legislation, which it may consider, appropriate.                               
                                                                               
Mr. Fargnoli clarified that "adopted" was substituted for                      
"issue" to reflect that a resolution would be adopted.                         
                                                                               
Mr. Fargnoli stated that "unless contrary to law " was added                   
to clarify the separation of powers.                                           
                                                                               
SENATOR SEAN PARNELL discussed New Amendment 1.  He stated                     
that the amendment fails to recognize that mission                             
statements can already be statutes.  Additional mission                        
statements could be implemented through intent language,                       
statute or adoption of a resolution.  He maintained that the                   
amendment would restrict mission statements and performance                    
measures.  He asserted that the current language is more                       
open.  He felt that New Amendment 1 would add unnecessary                      
tonnage.  He acknowledged that the process may be going in                     
the direction of the amendment but stressed that it is                         
premature.  He maintained that New Amendment 1 would add                       
unnecessary cost.                                                              
                                                                               
Senator Parnell expressed his willingness to change the                        
reporting requirement to semi annual.  He stated that one                      
report can come at the end of the fiscal year and the next                     
report can be submitted with the budget.  He supported the                     
change to page 4, line 19:                                                     
                                                                               
Replace: ".legislative finance division.  The                                  
information must"                                                              
With: ".legislative finance division; this                                     
information must"                                                              
                                                                               
Senator Parnell stated that "unless contrary to law" is                        
already assumed.                                                               
                                                                               
Representative Grussendorf asked if the deletion on page 1,                    
line 12, "should represent the priorities of the majority of                   
state residents and" is also assumed.   Senator Parnell                        
acknowledged that if something is enacted into statute that                    
it can be assumed that it represents the majority of the                       
State.                                                                         
                                                                               
Senator Parnell reiterated that the transition section is                      
more complicated than what he thinks is warranted.                             
                                                                               
Representative Davies noted that the legislation provides on                   
page 3, line 20 that the budget must be accompanied by the                     
information required under ASA 37.07.050.  He maintained                       
that the legislation requires 100 percent participation and                    
does not allow flexibility.                                                    
                                                                               
Representative Grussendorf MOVED to divide New Amendment 1.                    
Amendment 1A would begin with the addition of a new section                    
on page 6:                                                                     
                                                                               
Insert new section, to read as follows:                                        
* Sec. 10  Transition.                                                         
(b) To provide for an orderly implementation of the                            
process envisioned in sections 1-9, sections 1-9                               
shall apply to:                                                                
                                                                               
(1)  two departments of the executive branch, to                               
be selected jointly by the legislature and the                                 
governor, in the preparation of their fiscal year                              
2000 operating budgets, and                                                    
(3) all departments and agencies of the                                        
executive branch in the preparation of their                                   
operating budgets for fiscal year 2001 and                                     
afterwards.                                                                    
                                                                               
(b)  Mission statements, desired results, performance                          
measures, and the frequency of performance reporting                           
for departments under (a)(1) shall be issued by the                            
legislature through a concurrent resolution.                                   
                                                                               
(c)  The finance committees of the legislature and the                         
office of management and budget shall jointly formulate                        
procedures and timetables for applying the provisions                          
of sections 1-9 under (a)(1) and under (a)(2).                                 
Procedures shall address, at a minimum, how agency                             
missions may be issued or established, and modified;                           
how aspects of agency performance should be selected                           
for measurement; how performance-related information                           
should be collected and reported, including the                                
frequency of reporting; how performance assessment                             
activity should be incorporated into the executive                             
branch and legislative branch budget processes; and how                        
costs associated with the adoption of performance                              
assessment should be identified.                                               
                                                                               
(d) The finance committees of the legislature and the                          
office of management and budget shall publish the                              
results of their efforts and their recommendations                             
under (c) no later than October 1, 1998.                                       
Recommendations shall include the identification of                            
issues or problems, which have not been resolved, and                          
options for resolving them.                                                    
                                                                               
(f) In its fiscal year 2000 operating budget                                   
instructions to departments, after consultation                                
with the legislature, the office of management                                 
and budget shall include as much or as many of                                 
the procedures and timetables published under                                  
(d) as it deems practicable.  Upon issuance of                                 
the instructions, the office of management and                                 
budget shall identify in writing to the finance                                
committees the procedures or timetables                                        
published under (d) which it has chosen not to                                 
include, and its reasons for not including                                     
them.                                                                          
                                                                               
(f) No later than January 15, 1999, the office of                              
management and budget shall submit to the finance                              
committees in writing:                                                         
(1) its findings regarding the adequacy of the                                 
procedures and timetables adopted under (e),                                   
(2) its findings regarding cost impacts                                        
experienced by departments under (a)(1),                                       
(3) its recommendations regarding application of                               
the provisions of sections 1-9 under (a)(2), and                               
(4) Any proposals for clarifying amendments or                                 
legislation, which it may consider, appropriate.                               
                                                                               
Co-Chair Hanley referred to subsection 1(a)(1) and (2).  He                    
spoke in support of doing a smaller subset of the entire                       
process on the first year.                                                     
                                                                               
RICHARD VITALE, STAFF, SENATOR SEAN PARNELL observed that                      
all of the agencies are currently submitting mission                           
statements.   He pointed out that adoption of subsection                       
1(a)(1) and (2) would reverse the current process.  He                         
acknowledged that the intent was that the process be on a                      
deeper level for two agencies.  Representative Davies                          
acknowledged that the agencies have been issuing mission                       
statements.  He emphasized that the difference is that the                     
Legislature and the Administration are now having a                            
discussion and are reaching a consensus about the mission                      
statements.  He maintained that the joint discussion process                   
should be limited.  Mr. Vitale agreed with Representative                      
Davies' assessment, but pointed out that subsection 1(a)(1)                    
and (2) by themselves do not mandate joint discussion.  The                    
legislation would begin joint discussions during the                           
session.                                                                       
                                                                               
Senator Parnell agreed that collaboration and coordination                     
is needed between the legislative and executive branches.                      
He observed that the effort has been present during the                        
current year.  The legislation's intent is to codify the                       
process.                                                                       
                                                                               
In response to a question by Co-Chair Hanley, Representative                   
Davies noted that agencies are required to submit their                        
mission statements on page 3, line 20 and on page 5, lines                     
27.  Senator Parnell added that existing law under AS                          
37.07.050 says that each state agency on the date and in the                   
form prescribed by the Office of Management and Budget shall                   
prepare the goals and objectives of the agency's programs                      
and the proposed plans to implement goals and objectives.                      
                                                                               
Representative Grussendorf MOVED to amend Amendment 1A by                      
deleting subsections (b) through (g).                                          
                                                                               
Representative Davies stressed that the difference between                     
Amendment 1A and current statute is that the amendment                         
directs a joint effort of the Legislature and the                              
Administration to focus on two departments.   Senator                          
Parnell felt that the amendment would short-circuit the                        
joint process that has taken place during the 1998 session.                    
Representative Grussendorf pointed out that a new                              
administration may not be as cooperative.                                      
                                                                               
There being NO OBJECTION, Amendment 1A was amended.                            
                                                                               
Insert new section, to read as follows:                                        
* Sec. 10                                                                      
Transition.  (a) To provide for an orderly                                     
implementation of the process envisioned in sections 1-                        
9, sections 1-9 shall apply to:                                                
                                                                               
(1) Two departments of the executive branch, to be                             
selected jointly by the legislature and the                                    
governor, in the preparation of their fiscal year                              
2000 operating budgets.                                                        
                                                                               
(2) All departments and agencies of the executive                              
branch in the preparation of their operating                                   
budgets for fiscal year 2001 and afterwards.                                   
                                                                               
Representative Davis spoke in support of Amendment 1A.  He                     
expressed concern that the full process would be required                      
during the first year under the legislation.  Senator                          
Parnell emphasized that the agencies already engage in the                     
process.                                                                       
                                                                               
Representative Davies stressed that the process during the                     
1998 session has been different that previous years.  Time                     
was spent in committees and subcommittees working jointly                      
with the legislature and the executive branch.  Results                        
Based Government was focuses on coming to consensus about                      
the mission statements.  He pointed out that mission                           
statements have been issued in previous years, but were not                    
discussed.  A lot of the difficult discussion centered on                      
measuring success.  He felt that the legislation was a                         
little premature.  He spoke in support of a measured                           
approach to phase in the process and allow flexibility.                        
                                                                               
Co-Chair Hanley referred to section one of CSSB 76 (RLS).                      
He asked how the Legislature would issue a mission                             
statement.  Senator Parnell envisioned mission statements as                   
taking the form of intent language in the operating budget.                    
He stated that he wants to encourage coordination and                          
cooperation between the legislative and executive branches.                    
Mission statements by the Legislature could also be put into                   
statute or adopted in a resolution.  Co-Chair Hanley pointed                   
out that the House and Senate may not always agree on the                      
mission statement.  Senator Parnell stated that whatever is                    
enacted into law would represent the majority of the                           
legislators.  Co-Chair Therriault stated that negotiated                       
intent language is the easiest route.                                          
                                                                               
Representative Grussendorf emphasized that a lot of time                       
would be spent on letters of intent.  He stressed that there                   
would be nothing to stop letters of intent by individual                       
legislators that are parochial in nature.  He questioned if                    
the conference committee would want to struggle over mission                   
statements.                                                                    
                                                                               
Representative Grussendorf spoke in support of Amendment 1A.                   
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf                                                  
OPPOSED: Mulder, Davis, Kelly, Therriault, Hanley                              
                                                                               
Representatives Kohring, Martin, Moses and Foster were                         
absent from the vote.                                                          
                                                                               
The MOTION FAILED (2-5).                                                       
                                                                               
Representative Grussendorf did not move Amendment 1B.                          
                                                                               
Representative Grussendorf questioned if language on page 5,                   
lines 23 - 25 should be deleted: "include an evaluation of                     
the advantages and disadvantages of specific alternatives to                   
existing or proposed agency activities or administrative                       
methods.  Senator Parnell emphasized that the language is in                   
current law.  Mr. Fargnoli spoke in support of the deletion.                   
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment 2,                         
delete on page 5, lines 23 - 25.  Senator Parnell spoke                        
against the amendment.  He emphasized that it is helpful to                    
have evaluation of the advantages and disadvantages of                         
specific alternatives.  He questioned if existing law is                       
being followed.  Representative Davis spoke in favor of the                    
amendment.  Co-Chair Hanley suspected that the Division is                     
not fulfilling the requirement of the language.                                
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Davis, Grussendorf                                           
OPPOSED: Mulder, Foster, Kelly, Hanley, Therriault                             
                                                                               
Representatives Martin, Moses and Kohring were absent from                     
the vote.                                                                      
                                                                               
The MOTION FAILED (3-5).                                                       
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment 3, to                      
change "quarterly" to "semi annually".  There being NO                         
OBJECTION, it was so ordered.                                                  
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment 4, on                      
page 4, line 19:                                                               
                                                                               
Replace: ".legislative finance division. The information                       
must"                                                                          
With: ".legislative finance division; this                                     
information must"                                                              
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment 5, on                      
page 3, lines 13 and 14, Delete: "The governor shall                           
assure that each agency complies with the mission statement                    
and achieves the desired results identified by the                             
legislature."                                                                  
                                                                               
Mr. Vitale observed that Senator Parnell does not support                      
the deletion.                                                                  
                                                                               
Representative Davies MOVED to AMEND the amendment, to add                     
"The governor shall assure that each agency complies with                      
the mission statement and strives to achieve the desired                       
results identified by the legislature."                                        
                                                                               
Mr. Vitale thought that the sponsor would accept the                           
amendment to the amendment.                                                    
                                                                               
Representative Kelly questioned if "good faith effort" would                   
be preferable.  He pointed out that "good faith effort" is                     
defined in law.                                                                
                                                                               
A roll call vote was taken on the motion to amend Amendment                    
5.                                                                             
                                                                               
IN FAVOR: Davies, Grussendorf, Hanley                                          
OPPOSED: Davis, Foster, Kelly, Mulder, Therriault                              
                                                                               
Representatives Kohring, Moses and Martin were absent from                     
the vote.                                                                      
                                                                               
The MOTION FAILED (3-5).                                                       
                                                                               
A roll call vote was taken on the motion to adopt Amendment                    
5.                                                                             
                                                                               
IN FAVOR: Davies, Grussendorf, Hanley                                          
OPPOSED: Davis, Foster, Kelly, Mulder, Therriault                              
                                                                               
Representatives Kohring, Moses and Martin were absent from                     
the vote.                                                                      
                                                                               
The MOTION FAILED (3-5).                                                       
                                                                               
Representative Davis MOVED to ADOPT Amendment 6, on page 1,                    
line 12 Delete:  "should represent the priorities of the                       
majority of state residents and."  Co-Chair Hanley spoke in                    
support of the amendment.  There being NO OBJECTION, it was                    
so ordered.                                                                    
                                                                               
Representative Davies MOVED to ADOPT Amendment 7, on page 3,                   
line 12, change "the guide" to "a guide."                                      
                                                                               
Mr. Vitale stated that the only guides that the governor                       
should have are the statutes.  Co-Chair Hanley questioned if                   
mission statements are defined as statutes.  He spoke in                       
support of the amendment.  He maintained that the governor                     
should consider intent language passed by the legislature as                   
a statement of the legislature.                                                
                                                                               
Representative Davies pointed out that statues for the                         
Department of Natural Resources exist in several titles.  He                   
questioned which is the mission statement.  Senator Parnell                    
pointed out that it depends on which division is being                         
looked at.  If the mission statement is not clearly defined                    
in statute than they may be found in intent language passed                    
by the legislature.                                                            
                                                                               
Representative Davies maintained that what constitutes a                       
mission statement for an agency is ambiguous.                                  
Representative Davis spoke in support of the amendment.                        
Senator Parnell stated that he did not object to the                           
amendment.                                                                     
                                                                               
There being NO OBJECTION, Amendment 7 was adopted.                             
                                                                               
Representative Davies referred to Article II, Section 13 of                    
the Alaska State Constitution.  The Constitution states that                   
"bills for appropriation shall be confined to                                  
appropriations."  He cautioned that mission statements that                    
have the effect of statute should not be in an appropriation                   
bill.                                                                          
                                                                               
Representative Grussendorf spoke in support of changing                        
"issue" to "adopt".                                                            
                                                                               
Representative Mulder MOVED to report HCS CSSB 76 (FIN) out                    
of Committee with the accompanying fiscal note.                                
                                                                               
HCS CSSB was REPORTED out of Committee with a "do pass"                        
recommendation and with zero fiscal note by the Senator                        
Finance Committee, 3/20/98.                                                    
HOUSE BILL NO. 364                                                             
                                                                               
"An Act requiring nonresident hunters to be accompanied                        
when hunting moose; and providing for an effective                             
date."                                                                         
                                                                               
REPERSENTATIVE IVAN IVAN spoke in support of HB 364.  He                       
noted that are two reasons why HB 364 was introduced.  The                     
first reason addresses conservation and would require                          
nonresident hunters to take a moose hunting orientation                        
course offered by the Department of Fish and Game.  There is                   
concern that it is difficult for nonresidents to determine                     
whether or not a moose is legal.  The present moose antler                     
restriction for nonresident hunters is a minimum of 50                         
inches and spike/fork regulations are in effect in most game                   
management units.  The requirement for an orientation course                   
would result in less sub-legal moose being killed and                          
wasted.                                                                        
                                                                               
An additional concern for the legislation would be to reduce                   
the waste of moose meat.  The purpose of the transporter                       
requirement is to reduce waste of moose meat by those who                      
may not have the knowledge or capability, for whatever                         
reason, to care for the meat in the field.  The transporters                   
would be held responsible for spoilage or wanton waste if                      
they fail to check on their clients and take moose meat out                    
of the field before waste or spoilage can occur.  The                          
transporters currently have no responsibility for the                          
actions of their clients.  He provided members with                            
Amendment 1 (copy on file).                                                    
                                                                               
TOM WRIGHT, STAFF, REPRESENTATIVE IVAN reviewed Amendment 1.                   
He observed that the Department of Public Safety requested                     
the first part of the amendment.  The amendment would delete                   
the three-day requirement.  Transporters would be required                     
to keep a written record, which they already have to file                      
with the Department of Commerce and Economic Development,                      
with them when they make a transport of hunters or meat in                     
or out of the field.  The Department of Public Safety feels                    
that this would allow them to keep better track of hunters                     
and meat.  The three-day requirement was deleted because the                   
Department felt it was not an enforceable statute.                             
                                                                               
(Tape Change, HFC 98 -89, Side 1)                                              
                                                                               
KEN TAYLOR, DEPUTY DIRECTOR, DIVISION OF WILDLIFE                              
CONSERVATION, DEPARTMENT OF FISH AND GAME reviewed Amendment                   
1.  He observed that a moose hunting orientation course                        
could be sent through the mail, to hunters who apply by                        
mail, for licenses and tags.  A substantial number of                          
hunters apply for their licenses and tags through the mail.                    
The Department's fiscal note includes funding for a kiosk at                   
the Anchorage airport.  He noted that the Department would                     
like the legislation to be amended to delay the effective                      
date to July 1, 1999.                                                          
                                                                               
Co-Chair Hanley asked if it is constitutional for a non-                       
resident to have to take a course that a resident doesn't                      
have to take.  Mr. Taylor could not answer.  In response to                    
a question by Co-Chair Hanley, Mr. Taylor explained that                       
every non-resident that applies by mail, would receive a                       
video of the course.  The video would cost $10 dollars.  An                    
affidavit affirming that they have watched the course would                    
be signed on their non-resident moose tag.  The video would                    
help hunters identify legal moose and take care of meat.                       
                                                                               
Co-Chair Hanley expressed concern that there might be                          
constitutional concerns.  Co-Chair Therriault suggested that                   
"or" be changed to "and".  Mr. Wright agreed.  Co-Chair                        
Hanley recommended that the legislation state that a                           
"nonresident may not obtain a moose tag unless the                             
nonresident signs a statement affirming they have either                       
completed a moose hunting course offered by the Department                     
or will be accompanied."  Mr. Taylor noted that the                            
Department's concern was that two mailings would be required                   
because hunters would not receive their tag until after they                   
had completed the course.  The Department wants to ship the                    
tag, license and videotape at on time.  Co-Chair Hanley                        
emphasized that the legislation seems to say that persons                      
that apply by mail would not have to take the course.  The                     
intent is not that those that apply by mail would not have                     
to take the course.  Co-Chair Therriault added that the only                   
tags that can be received by mail would come from the                          
Department.                                                                    
                                                                               
Representative Grussendorf did not think that there would be                   
a constitutional problem.  He observed that hunting is a                       
privilege.                                                                     
                                                                               
Mr. Taylor explained that $5 thousand dollars in the                           
Department's fiscal note would go toward airport leasing.                      
The kiosk would be approximately $20 thousand dollars.                         
Twenty-six hundred dollars is included for postage.  In FY                     
99, would be contractual to put the video footage together.                    
                                                                               
Representative Davies suggested that the first "obtain" be                     
changed to "use" on page 1, line 22 of Amendment 1.                            
Everything from the second obtain would be deleted through                     
to the word "nonresident".  The recommended language would                     
provide that the tag could be received but could not be used                   
unless they had signed a statement.  Mr. Taylor spoke in                       
support of the suggested language.                                             
                                                                               
Representative Foster noted the difficulty of discerning                       
moose size.  Mr. Taylor clarified that a one-year residence                    
would be required.  Representative Foster observed that some                   
residents would benefit from the course.  He expressed                         
concern that transporters would be burdened by Amendment 1.                    
                                                                               
Mr. Wright explained that transporters would only be                           
required to carry records that currently must be submitted                     
on an annual basis.  He emphasized that the information                        
would assist the Department of Public Safety in their                          
enforcement efforts.  Representative Foster expressed                          
concern that transporters would have more paper work                           
requirements.                                                                  
                                                                               
TED KRIEG, NATURAL RESOURCE DEPARTMENT, BRISTOL BAY NATIVE                     
ASSOCIATION, DILLINGHAM spoke in support of the legislation.                   
He noted that wanton waste has been a concern of the                           
Association.  He spoke against allowing course certification                   
through video participation.  He maintained that viewing a                     
video is not enough.  He spoke in support of requiring                         
transporters to check with hunters every three days.  He                       
stressed that some hunters only want the horns.  He asserted                   
that meat should be taken care of, so that it can be used by                   
locals.  He expressed concern that moose are being left and                    
the meat wasted because they are not legal size.  The course                   
should provide the ability to identify a legal moose, make                     
sure that meat will not be wasted and assure that hunters                      
realize the amount of meat that is involved.  He asserted                      
that transporters must be responsible for the hunters they                     
take out.                                                                      
                                                                               
Representative Foster questioned the premise that hunters                      
should be responsible for the actions of another person.                       
Mr. Krieg reiterated that transporters should be                               
responsible.  Representative Foster observed that weather                      
could prevent transporters from contacting hunters within                      
the suggested three-day period.  He stressed that pilot's                      
job is to fly not to police.  Co-Chair Therriault noted that                   
the legislation currently requires that the transporter                        
check on hunters every three days.  Representative Foster                      
questioned what would happen if the hunter does not pay the                    
transporter to come back in three days.  Representative                        
Grussendorf suggested that hunters would have to pay for                       
checks.  Representative Foster acknowledged the intent, but                    
expressed concern with making transporters responsible for a                   
third party.                                                                   
                                                                               
VIRGIL UMPENOUR, BOARD OF FISHERIES, FAIRBANKS spoke in                        
support of HB 364.  He noted that he is a registered hunting                   
guide and operates a meat and fish processing plant in                         
Fairbanks.  He stressed that the primary issue is the direct                   
competition with subsistence use of non-regulated                              
nonresident hunters.  He felt hunters should be required to                    
be physically present at the course.  He observed problems                     
with sub-legal moose being shot and left in the field and                      
meat being wasted due to a lack of transportation.  He                         
observed that the number of nonresident moose hunters in                       
unit 21D increased by 300 percent in 1995-1996.  As much as                    
30 percent of the moose are taken by nonresidents.  He                         
maintained that the majority of the meat is spoiled.                           
                                                                               
In response to a question by Representative Davies, Mr.                        
Umpenour observed that guides are responsible to get the                       
meat out in good condition.  He emphasized that transporters                   
already have to keep a hunt record.  The legislation would                     
require that the record be kept with them when they are                        
transporting hunters or meat.  Transporters would be                           
required to report violations of their clients in the same                     
manner as a guide.                                                             
                                                                               
MICHELLE SPARCK, RESOURCE SPECIALIST, ASSOCIATION OF VILLAGE                   
COUNCIL PRESIDENTS, BETHEL spoke in support of the                             
legislation.  She emphasized that moose meat is being                          
wasted.  One moose is equivalent to five caribou.  She                         
stressed the importance of the meat to feed local residents.                   
Meat keeps longer when it is attached to the bone, but                         
hunters cut it away to reduce weight.  She maintained that a                   
video is not sufficient preparation for hunters.  She spoke                    
in support of the legislation's original language.                             
                                                                               
HERMAN MORGAN, CITY MANAGER, ANIAK spoke in support of HB
364.  He noted that he is a subsistence hunter.  He asserted                   
that moose meat is being left to rot and waste.  He                            
maintained that the moose that locals depend on are being                      
endangered.  A lot of meat is going to waste that could feed                   
locals during the winter.  He maintained that it is an                         
insult to the dignity of the subsistence life style.  He                       
stressed that a video can not take the place of an                             
experienced guide.  He asserted that no one is taken                           
responsibility for all of the rotting meat.                                    
                                                                               
GILBERT HUNTINGTON, GALENA spoke in support of HB 364.  He                     
noted that he is a registered guide and a subsistence                          
hunter.  He spoke in support of the original language of HB
364.  He expressed concern that moose meat is being wasted.                    
He asserted that transporters bring hunters in without                         
guides.  He emphasized that guides look after the resource.                    
He stressed that anyone can sign his or her name to an                         
affidavit.                                                                     
                                                                               
ROD ARNO, PRESIDENT, ALASKA OUTDOOR COUNCIL spoke in support                   
of HB 364.  He stressed that nonresident hunters are                           
perceived as trophy hunters that allow meat to spoil.  He                      
noted that wanton waste is a crime punishable by one to five                   
in jails.  He maintained that it is an enforcement issue                       
problem.  He stated that it would be advantages to increase                    
hunters' skill levels and spell out the client transporter                     
obligation and relationship.  He cautioned that too large of                   
a hurdle not be created to nonresident hunters.  He observed                   
that in 1997 there were approximately 14,000 nonresident                       
hunters.  Nonresident hunters brought in $6.5 million                          
dollars in 1997, or $462 dollars per hunter in licenses and                    
fees.  Federal aid based on the license sales of nonresident                   
hunters was $8.5 million dollars in 1997.  Nonresident                         
hunters are responsible for more than 90 percent of the                        
Division of Wildlife Conservation's' budget.  He stated that                   
the perception of nonresidents would benefit from the care                     
of meat.  He spoke against Amendment 1.  He stated that the                    
amendment would take the guts out of the legislation.                          
Section 1 of CSHB 364 (RES) would make transporters                            
responsible for wasted meat.  He suggested that Section 1                      
could be amended by removing language-requiring transporters                   
to check on clients every three days.  The remaining                           
language would read, " In order to maximize the use of game                    
taken by clients of transporters, transport meat of game                       
taken by the clients out of the field before waste or                          
spoilage can occur."  He maintained that the                                   
transporter/client relationship needs to be clear.  He                         
emphasized that the transporters advertise for nonresident                     
for drop off hunts.  Transporters decide where nonresidents                    
will hunt.  He maintained that they need to be held                            
responsible for wanton waste.  He stressed that transporters                   
should follow the same procedures as guides to make sure                       
that there are not too many clients in the field to be                         
adequately served.  If transporters report spoiled meat the                    
responsibility would be on the client.  If meat is spoiled                     
because a transporter can not cover all of his clients                         
before spoilage occurs they should be partially responsible.                   
                                                                               
HB 364 was HELD in Committee for further consideration.                        
HOUSE BILL NO. 12                                                              
                                                                               
"An Act relating to civil liability for injuries or                            
death resulting from equine activities."                                       
                                                                               
Representative Davis MOVED to ADOPT the proposed committee                     
substitute for HB 12, work draft 0-LS0097\B, 3/30/98.  There                   
being NO OBJECTION, it was so ordered.                                         
                                                                               
MIKE TIBBLES, STAFF, REPRESENTATIVE THERRIAULT observed that                   
the legislation concerns liability for persons that are                        
injured and their rights to sue.   He clarified that if a                      
person is injured while riding a horse and has an insurance                    
policy they would not be precluded from collecting for the                     
injury. Representative Davies was concerned that limitations                   
on the right to sue not limit the right to collect under an                    
insurance policy.  Legislative counsel indicated that they                     
are two different issues.  Amendment 1 amends the definition                   
of compensatory damages to not include benefits paid under                     
an insurance policy (copy on file).                                            
                                                                               
Co-Chair Hanley MOVED to ADOPT Amendment 1.  There being NO                    
OBJECTION, it was so ordered.                                                  
                                                                               
Representative Mulder MOVED to report CSHB 12 (FIN) out of                     
Committee with the accompanying fiscal note.  There being NO                   
OBJECTION, it was so ordered.                                                  
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 4:20 p.m.                                             
House Finance Committee 2 4/03/98                                              

Document Name Date/Time Subjects