Legislature(2005 - 2006)
05/06/2005 06:21 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| SB142 | |
| SB130 | |
| SB150 | |
| HB208 | |
| SB142 | |
| SB144 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 6, 2005
6:21 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 6:21:01 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Carl Moses
Representative Bruce Weyhrauch
MEMBERS ABSENT
None
ALSO PRESENT
Jane Alberts, Staff, Senator Con Bunde; Nona Wilson,
Legislative Liaison, Department of Transportation and Public
Facilities; Pam Lewis, Division Aviation, Department of
Transportation and Public Facilities; Greg O'Claray,
Commissioner, Department of Labor; Paul Lisanke, Director
Division of Workers' Compensation, Department of Labor and
Workforce Development; Representative David Guttenberg;
Jason Hooley, Staff, Senator Dyson; Joel Gilbertson,
Commissioner, Department of Health & Social Services; Amy
Seitz, Staff, Senator Tom Wagoner; John Kuterbach, Division
of Air Quality and Air Permits, Department of Environmental
Conservation
PRESENT VIA TELECONFERENCE
Steve Mulder, Assistant Attorney General, Department of Law
SUMMARY
CSSB 130(FIN) am
"An Act relating to a special deposit for workers'
compensation and employers' liability insurers;
relating to assigned risk pools; relating to workers'
compensation insurers; stating the intent of the
legislature, and setting out limitations, concerning
the interpretation, construction, and implementation of
workers' compensation laws; relating to the Alaska
Workers' Compensation Board; assigning certain Alaska
Workers' Compensation Board functions to the division
of workers' compensation in the Department of Labor and
Workforce Development and to that department, and
authorizing the board to delegate administrative and
enforcement duties to the division; providing for
workers' compensation hearing officers in workers'
compensation proceedings; establishing a Workers'
Compensation Appeals Commission; relating to workers'
compensation medical benefits and to charges for and
payment of fees for the medical benefits; relating to
agreements that discharge workers' compensation
liability; relating to workers' compensation awards;
relating to reemployment benefits and job dislocation
benefits; relating to coordination of workers'
compensation and certain disability benefits; relating
to division of workers' compensation records; relating
to release of treatment records; relating to an
employer's failure to insure and keep insured or
provide security; providing for appeals from
compensation orders; relating to workers' compensation
proceedings; providing for supreme court jurisdiction
of appeals from the Workers' Compensation Appeals
Commission; providing for a maximum amount for the
cost-of-living adjustment for workers' compensation
benefits; relating to attorney fees with respect to
workers' compensation; providing for the department to
enter into contracts with nonprofit organizations to
provide information services and legal representation
to injured employees; providing for administrative
penalties for employers uninsured or without adequate
security for workers' compensation; relating to
fraudulent acts or false or misleading statements in
workers' compensation and penalties for the acts or
statements; providing for members of a limited
liability company to be included as an employee for
purposes of workers' compensation; establishing a
workers' compensation benefits guaranty fund; making
conforming amendments; providing for a study and report
by the medical services review committee; establishing
the Task Force on Workers' Compensation; and providing
for an effective date."
CSSB 130 (JUD) was REPORTED out of Committee with a "no
recommendation" recommendation and with the following
zero fiscal impact notes, #7 COM, #9 LEG, and with the
following fiscal notes, #8 LWD, #10 LWD, #11 LAW, #12
LAW, and #13 LAW.
CSSB 142(L&C)
"An Act relating to ownership of land by regional
school boards; and providing for an effective
date."
CSSB 142 (L&C) was REPORTED out of Committee with
a "no recommendation" recommendation and with two
zero fiscal impact notes: #1 EED, and #2 DOT.
CSSB 150(HES)
"An Act relating to the Alaska children's trust
grant awards."
CSSB 150 (HES) was REPORTED out of Committee with
a "no recommendation" recommendation and with a
zero fiscal impact note by the Department of
Health and Social Services.
CSSB 144(RES)
"An Act relating to regulations, definitions, and
permits under the emission control permit program;
and providing for an effective date."
CSSB 144 (RES) was REPORTED out of Committee with
a "no recommendation" recommendation and with a
zero fiscal impact note by the Department of
Environmental Conservation.
HB 208 "An Act authorizing the Department of Military and
Veterans' Affairs to establish and maintain an
Alaskan veterans' cemetery; and establishing the
Alaska veterans' cemetery fund in the general
fund."
CSHB 208 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with an
indeterminate fiscal impact note by Military and
Veterans Affairs.
6:21:45 PM
CS FOR SENATE BILL NO. 142(L&C)
"An Act relating to ownership of land by regional
school boards; and providing for an effective date."
JANE ALBERTS, STAFF, SENATOR CON BUNDE, related that SB 142
excludes airport properties from AS 14.08.151(b), which
directs the state to convey title to lands used in relation
to regional educational attendance area schools, when
requested to do so by the regional school board. It
resolves a conflict between AS 02.15.020, which requires the
Department of Transportation and Public Facilities to retain
"satisfactory property interest" in airport facilities in
order to participate in federal grant programs, and AS
14.08.151, which gives regional school boards the
opportunity to obtain title to land/structures for regional
educational attendance area (REAA) schools. It saves the
Departments of Transportation and Education time, effort,
and money needed to settle conflicting claims. It ensures
that DOT&PF will be able to meet Federal Aviation
Administration (FAA) requirements and obtain federal funding
for airport projects in REAAs, and it conforms statute to
legislative intent.
6:25:17 PM
Representative Hawker commented on the encroachment issue
with an exemption for schools. He asked about highway
right-of-way issues.
NONA WILSON, LEGISLATIVE LIAISON, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, responded that the
bill does not require a school to return any of the land
that they are now on. It establishes future protection of
the safety of the runway and the airport. The legislation
does not intend to force the state to compromise federal
funding.
6:27:11 PM
Representative Hawker asked why the state would want to give
up the ability to support schools as a real priority. Ms.
Wilson replied that school boards are not being challenged.
They can build away from the building restriction line.
Airport land is some of the best land and some schools
currently abut the runway.
6:28:05 PM
Representative Hawker commented that there seems to be an
inconsistency with how schools are treated, compared to
churches, on state land.
Representative Joule inquired if there is an appeal process
in this legislation.
6:29:29 PM
Ms. Wilson replied that the department would work with a
school board in that case. The department is not trying to
hinder any schools, just prevent encroaching on airport
land.
Representative Joule stated his support for the bill. Ms.
Wilson referred to a map and explained how it is related to
the bill.
6:31:32 PM
PAM LEWIS, DIVISION AVIATION, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, added that the bill will let the FAA
know that DOT has title to the land. The intent of the bill
is not to dislocate schools, just clean up statute.
Co-Chair Meyer set SB 142 aside.
6:33:22 PM
CS FOR SENATE BILL NO. 130(FIN) am
"An Act relating to a special deposit for workers'
compensation and employers' liability insurers;
relating to assigned risk pools; relating to workers'
compensation insurers; stating the intent of the
legislature, and setting out limitations, concerning
the interpretation, construction, and implementation of
workers' compensation laws; relating to the Alaska
Workers' Compensation Board; assigning certain Alaska
Workers' Compensation Board functions to the division
of workers' compensation in the Department of Labor and
Workforce Development and to that department, and
authorizing the board to delegate administrative and
enforcement duties to the division; providing for
workers' compensation hearing officers in workers'
compensation proceedings; establishing a Workers'
Compensation Appeals Commission; relating to workers'
compensation medical benefits and to charges for and
payment of fees for the medical benefits; relating to
agreements that discharge workers' compensation
liability; relating to workers' compensation awards;
relating to reemployment benefits and job dislocation
benefits; relating to coordination of workers'
compensation and certain disability benefits; relating
to division of workers' compensation records; relating
to release of treatment records; relating to an
employer's failure to insure and keep insured or
provide security; providing for appeals from
compensation orders; relating to workers' compensation
proceedings; providing for supreme court jurisdiction
of appeals from the Workers' Compensation Appeals
Commission; providing for a maximum amount for the
cost-of-living adjustment for workers' compensation
benefits; relating to attorney fees with respect to
workers' compensation; providing for the department to
enter into contracts with nonprofit organizations to
provide information services and legal representation
to injured employees; providing for administrative
penalties for employers uninsured or without adequate
security for workers' compensation; relating to
fraudulent acts or false or misleading statements in
workers' compensation and penalties for the acts or
statements; providing for members of a limited
liability company to be included as an employee for
purposes of workers' compensation; establishing a
workers' compensation benefits guaranty fund; making
conforming amendments; providing for a study and report
by the medical services review committee; establishing
the Task Force on Workers' Compensation; and providing
for an effective date."
GREG O'CLARAY, COMMISSIONER, DEPARTMENT OF LABOR, explained
that HCSSB 130 (JUD), Version X, is a bill that addresses
the problem of making workers' compensation more efficient,
and deals with runaway rate increases. A key issue is the
establishment of a legislative task force.
PAUL LISANKE, DIRECTOR DIVISION OF WORKERS' COMPENSATION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, referred to
Section 65, page 30, as the section that deals with the task
force.
6:36:30 PM
Commissioner O'Claray explained that there has not been
enough time to deal with this issue, so Section 65 was
inserted. He spoke in support of the bill.
Co-Chair Meyer asked if the biggest change in Version X is
Section 65. Commissioner O'Claray replied that there are
various changes, and this version is not the
administration's draft of the bill. There is no
controversial appeals commission in this version of the
bill.
6:38:52 PM
Representative Kelly inquired if that is critical in getting
support for the bill. Commissioner O'Claray said it is
difficult to respond to that question. He related that the
administration was interested in trying to reduce the time
it takes to get an appeal on a claim resolved. Commissioner
O'Claray replied that the appeals commission came out of the
bill in House Labor and Commerce Committee.
6:40:13 PM
Representative Foster MOVED to report HCSSB 130 (JUD) out of
Committee. There being NO OBJECTION, it was so ordered.
HCSSB 130 (JUD) was REPORTED out of Committee with a "no
recommendation" recommendation and with the following zero
fiscal impact notes, #7 COM, #9 LEG, and with the following
fiscal notes, #8 LWD, #10 LWD, #11 LAW, #12 LAW, and #13
LAW.
6:42:21 PM
CS FOR SENATE BILL NO. 150(HES)
"An Act relating to the Alaska children's trust grant
awards."
JASON HOOLEY, STAFF, SENATOR DYSON, related that the Alaska
Children's Trust was created by the Legislature in 1988 to
help fund programs around the state aimed at preventing
child abuse and neglect. Under current law, the trust may
spend the net income earned by the trust to fund community
based prevention programs. However, current statute limits
the size of grants to $50,000 and provides a specific
formula for funding grants. The Board of Trustees has
requested additional flexibility in awarding grants. SB 150
removes the $50,000 cap and refines the funding formula.
The changes proposed by the bill will allow trustees
flexibility in setting grant awards, authority to reduce
grants and enforce requirements for program performance, and
authority to require applicants to include self-
sustainability plans in their proposals.
6:44:35 PM
Vice-Chair Stoltze asked who the grant recipients are.
JOEL GILBERTSON, COMMISSIONER, DEPARTMENT OF HEALTH & SOCIAL
SERVICES, explained that he is sitting in for the trustees
who have previously testified at every hearing. He read the
list of grant recipients: Bartlett Regional Hospital; Center
for Community, Sitka; City of Saxman; Covenant House,
Anchorage; Fairbanks Counseling and Adoption; Fairbanks
Resource Agency; Homer Children's Services; Hoonah City
Schools; Juneau Family Birth Center; REACH, Juneau; Resource
Center for Parents and Children, Fairbanks; Sutton
Elementary School; Talkeetna Elementary School; Tundra
Women's Coalition, Bethel; Seaview, Seward.
Commissioner Gilbertson related that the reason the trustees
asked for this legislation is because the Alaska Children's
Trust has been set up so that the grants are paid from the
earning of the fund and the earnings have been flat. He
explained about the trust and the recurring grants. He
shared that there would not be any new grants for the third
straight year if SB 150 does not pass.
6:48:50 PM
Vice-Chair Stoltze asked if the legislation would prevent
large donations to the trusts. Commissioner Gilbertson
responded that individuals could still contribute to the
trust.
6:49:52 PM
Representative Hawker stated that one of the problems is
that there are not enough sidebars when issuing grants.
They become entitlement programs. He said he is troubled by
that and he called it an anti-accountability bill.
Commissioner Gilbertson disagreed. He stressed that the
bill does the exact opposite because it ends "continuous
grants" and caps them at four years. It would also give
greater authority to the trustees.
Representative Hawker concurred with the idea of limiting
grants. Commissioner Gilbertson explained that Section 5
adds a plan for sustainability and self-sufficiency after
the grant period, and it extends authority to the board to
reduce or discontinue a grant.
6:52:49 PM
Representative Croft pointed out that, in one way, it does
remove the sidebars, but in another way it establishes new
sidebars. He asked why the $50,000 cap is not retained.
Commissioner Gilbertson relayed the current fiscal challenge
of the trust. The trust has received federal funding.
Representative Croft asked if the federal money is governed
by these rules. Commissioner Gilbertson replied that it is.
He described how it was administered, including a statewide
media campaign.
6:55:12 PM
Vice-Chair Stoltze MOVED to report CSSB 150 (HES) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 150 (HES) was REPORTED out of Committee with a "no
recommendation" recommendation and with a zero fiscal impact
note by the Department of Health and Social Services.
6:56:11 PM
HOUSE BILL NO. 208
"An Act authorizing the Department of Military and
Veterans' Affairs to establish and maintain an Alaskan
veterans' cemetery; and establishing the Alaska
veterans' cemetery fund in the general fund."
REPRESENTATIVE DAVID GUTTENBERG, SPONSOR, noted that there
is a companion bill to HB 208. He related a story to
explain the reason behind the need for this bill. There are
currently two veterans' cemeteries, one in Anchorage and one
in Sitka. The state does not qualify for another one, but
it does qualify for a state cemetery, of which the U.S.
Department of Veterans Affairs would fund up to 100 percent
of the development costs.
Representative Guttenberg pointed out that two amendments
from Military and Veterans Affairs Committee made the bill
stronger. The first one on page 2, line 2, added that the
cemetery fund would benefit, and line 22 allows for a
cemetery to be developed elsewhere in the state in the
future.
6:59:27 PM
Representative Hawker asked if it was inconsistent on page
2, line 21, to say the department "shall" do this. He
thought it should be "may". Representative Guttenberg
mentioned that in setting up a cemetery, there are a lot of
restrictions. "Shall" implies that it might take a long
time.
Representative Hawker was "troubled" by that word. He
supported giving the department the authority to pursue a
new cemetery, however, he opined that "shall" could be a
"road-block". He said he did not want to see the department
sued.
7:01:42 PM
Representative Croft suggested that it should say "shall"
maintain. He thought that it was a laudable program.
7:02:22 PM
Vice-Chair Stoltze thought that the Veterans Advisory
Committee should decide where the next cemetery would be
built.
7:03:27 PM
Representative Guttenberg explained that there is only one
place it is eligible to be established, because of
population criteria.
7:04:58 PM
Co-Chair Meyer asked if the Senate version would be coming
to the Committee soon.
Representative Weyhrauch thought that it was mandatory. He
asked why it would be up to a determination of an Advisory
Panel. Representative Guttenberg responded that the VA
provides a grant of up to 100% based upon their
qualifications. The legislation does not attempt to change
that. The only place that qualifies for the program is the
Interior.
7:07:20 PM
Representative Croft said he wanted to see something like
this pass.
7:07:49 PM
Co-Chair Meyer stated that the bill should be held until the
status of the Senate bill is known.
HB 208 was HELD in Committee for further consideration.
7:08:37 PM
CS FOR SENATE BILL NO. 142(L&C)
"An Act relating to ownership of land by regional
school boards; and providing for an effective date."
Representative Hawker surmised that the State of Alaska is
deferring to federal regulations. He spoke to state
primacy. He stated that it is a shortsighted approach.
7:09:28 PM
Ms. Wilson commented that there is actual housing and
schools on airport property. The bill only states that the
title to the land cannot be granted.
7:10:37 PM
Representative Foster MOVED to report CSSB 142 (L&C) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSB 142 (L&C) was REPORTED out of Committee with a "no
recommendation" recommendation and with two zero fiscal
impact notes: #1 EED, and #2 DOT.
Representative Foster observed that in his district villages
are in close proximity to airport property.
7:12:34 PM
CS FOR SENATE BILL NO. 144(RES)
"An Act relating to regulations, definitions, and
permits under the emission control permit program; and
providing for an effective date."
AMY SEITZ, STAFF, SENATOR TOM WAGONER, explained that SB 144
is a clean-up bill. In 2003 the legislature passed HB 160,
which streamlined Alaska's air permitting process by
aligning the state's requirements with federal requirements.
It also addresses permit fees allowing DEC to revoke a
permit when the fees are not paid.
7:15:05 PM
Representative Holm spoke of a problem with emission control
in Fairbanks.
7:17:00 PM
JOHN KUTERBACH, DIVISION OF AIR QUALITY AND AIR PERMITS,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, offered to answer
questions.
7:17:26 PM
STEVE MULDER, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW,
(via teleconference) offered to answer questions.
7:17:58 PM
Representative Foster MOVED to report CSSB 144 (RES) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 144 (RES) was REPORTED out of Committee with a "no
recommendation" recommendation and with a zero fiscal impact
note by the Department of Environmental Conservation.
7:19:15 PM
HOUSE BILL NO. 208
"An Act authorizing the Department of Military and
Veterans' Affairs to establish and maintain an Alaskan
veterans' cemetery; and establishing the Alaska
veterans' cemetery fund in the general fund."
Vice-Chair Stoltze MOVED to ADOPT Conceptual Amendment 1:
On page 2, line 21, change "shall" to "may"
Page 2, line 28, after "shall" add "in consultation
with the Alaska Veterans' Advisory Council"
There being NO OBJECTION, it was so ordered.
7:21:08 PM
Representative Foster MOVED to report HB 208 out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 208 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with an indeterminate fiscal impact
note by Military and Veterans Affairs.
ADJOURNMENT
The meeting was adjourned at 7:22 PM.
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