Legislature(2005 - 2006)HOUSE FINANCE 519
04/27/2006 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 306 | TELECONFERENCED | |
| += | HB 496 | TELECONFERENCED | |
| + | SB 310 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 27, 2006
8:52 a.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 8:52:26 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Beth Kerttula
Representative Carl Moses
Representative Bruce Weyhrauch
MEMBERS ABSENT
None
ALSO PRESENT
Darwin Peterson, Staff, Senator Lyda Green; Louie Flora,
Staff, Representative Paul Seaton; Sharon Barton, Director,
Permanent Fund Dividend Division, Department of Revenue;
Sharleen Griffin, Acting Director, Division of
Administrative Services, Department of Corrections; Portia
Parker, Deputy Commissioner, Department of Corrections
PRESENT VIA TELECONFERENCE
Diane Kaplan, Rasmussen Foundation
SUMMARY
SB 310 "An Act relating to the employment of prisoners;
and providing for an effective date."
HCSSB 310 (FIN) was REPORTED out of Committee with
a "no recommendation" and with zero fiscal note #1
by the Department of Labor and Workforce
Development, and fiscal note #2 by the Department
of Corrections.
HB 496 "An Act relating to contributions from permanent
fund dividends to certain educational
organizations and to certain charitable
organizations that provide a positive youth
development program, workforce development, aid to
the arts, or aid and services to the elderly, low-
income individuals, individuals in emergency
situations, disabled individuals, or individuals
with mental illness; and providing for an
effective date."
CSHB 496 (FIN) was REPORTED out of Committee with
a letter of intent, with "no recommendation", and
with a new fiscal note by the Department of
Revenue.
HB 306 "An Act making certain land available for
selection by the Matanuska-Susitna Borough."
CSHB 306 (FIN) was REPORTED out of Committee with
"no recommendation" and with zero fiscal note #1
by the Department of Natural Resources.
8:52:37 AM
SENATE BILL NO. 310
"An Act relating to the employment of prisoners; and
providing for an effective date."
DARWIN PETERSON, STAFF, SENATOR GREEN, explained that SB 310
was introduced at the request of the Department of
Corrections. In addition, the bill allows. The cost will
be funded through program receipts. Inmates are allowed to
work for financial restitution for child support payments.
Representative Stoltze asked about Section 3, and Section
12, Workers compensation. Mr. Peterson thought that
prisoners could not receive workers compensation.
Representative Holm asked if they would be under worker
comp. Mr. Peterson referred to Section 4 to explain.
Representative Stoltze asked about the retroactivity of
2005. Mr. Peterson responded sunset provision.
8:56:50 AM
Representative Kerttula asked if DEC standards for health
and safety apply. Mr. Peterson said he thought so.
Representative Foster spoke in support of the bill. He
recalled in the 90's when prisoners jobs were competing with
free market labor. Mr. Peterson said that the bill
addresses this on page 3, section 2, to prevent this from
happening.
8:58:23 AM
PORTIA PARKER, DEPUTY COMMISSIONER, DEPARTMENT OF
CORRECTIONS, clarified that the prisoners have always been
exempt. The bill just ensures continuation of the status
quo work programs.
Representative Stoltze asked about Section 8 regarding
agricultural purchases.
SHARLEEN GRIFFIN, ACTING DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS,
responded that the prison employment program falls under the
procurement code.
9:01:27 AM
Representative Holm asked about competitive bidding and the
fairness of it. Ms. Griffin replied that there are parts of
the bill that avoid unfair competition. Representative Holm
asked about the oversight for that. Ms. Griffin replied
that in Section 2 the commissioner is required to consult
with local unions. It requires that minimum wage be paid.
Representative Holm asked for the definition of prevailing
//. Ms. Parker replied. Representative Holm noted a
concern about farming on state land with prisoner labor and
lower costs. Ms. Parker replied that everything grown on
the farm is consumed by the prisoners. Ms. Parker.
9:05:40 AM
Representative Holm asked about supplanting purchasing. Ms.
Parker maintained that it is not a problem because on the
Point Mac farm purchasing does not impact local economy.
Representative Stoltze noted that prison labor is more
efficient. In theory it would allow for unfair competition.
9:08:53 AM
Co-Chair Meyer MOVED to adopt Amendment 1. Representative
Stoltze objected.
Ms. Parker addressed Amendment 1. It concerns whether a
public agency could also //. Has no problem with the
amendment.
Representative Stoltze removed his objection.
Amendment 1 was adopted.
9:11:07 AM
Co-Chair Meyer named the two fiscal notes.
Ms. Griffin noted that the fiscal note is a fund change
regarding support services.
Co-Chair Chenault asked if the bill allows employment
outside the prison facilities. Ms. Parker said that it
covers both inside and outside employment sites. She gave
an example of outside jobs.
Co-Chair Chenault asked about community service projects
such as senior housing performed by prisoners. Ms. Parker
pointed to Section 2, page 3, to clarify that prisoners are
not allowed to replace union workers. Co-Chair Chenault
agreed they should not take jobs that others in the
community provide. He was referring to other community
service projects, which would help repay prisoners debt to
society.
9:16:13 AM
Representative Stoltze related that in his community prison
labor has been used for community projects. He asked if
those jobs are volunteer jobs. Ms. Parker explained that
prisoners in half-way houses are court ordered to do
community work projects.
9:17:27 AM
Representative Foster MOVED to REPORT HCSSB 310 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCSSB 310 (FIN) was REPORTED out of Committee with a "no
recommendation" and with zero fiscal note #1 by the
Department of Labor and Workforce Development, and fiscal
note #2 by the Department of Corrections.
9:18:19 AM
HOUSE BILL NO. 496
"An Act relating to contributions from permanent fund
dividends to certain educational organizations and to
certain charitable organizations that provide a
positive youth development program, workforce
development, aid to the arts, or aid and services to
the elderly, low-income individuals, individuals in
emergency situations, disabled individuals, or
individuals with mental illness; and providing for an
effective date."
Co-Chair Meyer summarized the past action on the bill.
Representative Weyhrauch WITHDREW Amendment 1.
LOUIE FLORA, STAFF, REPRESENTATIVE PAUL SEATON, explained HB
496. He stated that a word "primary" in the title was
removed as well as //.
Representative Foster MOVED to ADOPT work draft for CS HB
496, Version S. There being NO OBJECTION, it was so
ordered.
Mr. Flora related that if the percentages were deleted, then
//. Sponsor would accept solutions. Easiest way to address
this issue. He explained that there is an audit
requirement on page 3, line 15.
9:26:30 AM
Representative Weyhrauch asked about Section G. Mr. Flora
said.
Co-Chair Chenault asked if a portion of the check is
garnished, if a person wants to donate the remainder of the
check, would the garnish take priority. Mr. Flora deferred
to the permanent fund staff.
Representative Stoltze asked about electronic.
SHARON BARTON, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,
DEPARTMENT OF REVENUE, addressed Co-Chair Chenault's
question. Takes priority after garnishment. Co-Chair
Chenault asked if it only applies to on-line applicants.
Ms. Barton said yes.
9:29:58 AM
Co-Chair Meyer asked if the Rasmusson Foundation would fund
all three years. Mr. Flora said yes.
DIANE KAPLAN, RASMUSSON FOUNDATION, confirmed that.
Co-Chair Meyer listed the fiscal note.
9:31:55 AM
Mr. Flora pointed to a correction on page 6, line 12, June
30,2006 to August 15. 2006.
Co-Chair Meyer MOVED to ADOPT Conceptual Amendment 2, to
change the date on page 6, line 12, from June 30 to August
15. There being NO OBJECTION, it was so ordered.
Representative Hawker noted that the fiscal note does not
address the Rasmusson Foundation.
9:33:47 AM
Representative Weyhrauch suggested a letter of intent do
deal with that issue. He suggested a short letter and one
from Rasmussen Foundation. There being NO OBJECTION, the
addition of a letter of intent was adopted.
9:34:30 AM
Representative Foster noted fiscal note "department may not
be able to meet" Sunset for //. Extend deadline. Mr. Flora
said the intent is to speed up the process to make 2007
happen. He assured the committee that the goal would be
attained. The fiscal note addresses writing the regulation.
Representative Foster suggested 5 to 10 years.
Representative Holm asked why the cost to change mainframe
and server - $200,000. Ms. Barton said that the payroll
system consists of 3 to 4 patched together systems. In
order to run the programs that expense has been estimated.
No bids have been accepted yet, it could be less.
9:39:20 AM
Co-Chair Chenault pointed out that the Rasmussen Foundation
has funded as dated. If the date would be extended that
assumes that the state will pay the additional costs. He
suggested staying with the date.
Representative Foster opined that a consituency is being
created and an extension will need to be made.
9:40:47 AM
Representative Hawker said there could be 600 qualifying
companies. He said it does not make sense.
Representative Joule said in the budget process
contributions are looked at. If Alaskans contribute a lot,
that says a lot.
9:42:35 AM
Representative Foster MOVED to REPORT CSHB 496 (FIN) out of
Committee with an attached letter of intent, with individual
recommendations, and with the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSHB 496 (FIN) was REPORTED out of Committee with a letter
of intent, with "no recommendation", and with a new fiscal
note by the Department of Revenue.
9:43:59 AM
HOUSE BILL NO. 306
"An Act making certain land available for selection by
the Matanuska-Susitna Borough."
Representative Kerttula said.
Representative Hawker stated support for the bill. Public
process has been correct.
Representative Holm echoed Representative Hawker's comments.
He noted that the Mat-Su has to vote on this issue.
9:45:46 AM
Representative Weyhrauch said he is not comfortable with
Section 1, the findings because it is not consistent with
past practice.
Representative Stoltze responded that it is consistent
because it is Mat-Su's.
Representative Weyhrauch MOVED Conceptual Amendment 1, to
delete Section 1. There being NO OBJECTION, it was so
ordered.
Representative Weyhrauch said he now supports the bill.
9:47:44 AM
Representative Kerttula noted Eaglecrest is not //. This
was established to allow access to river, now being passed
to a private developer, not been a public process. Borough
has 300,000 acres. Undermines public usage. She also
opposed removing Section 1. ARC is opposed to this use of
the corridor. She stated her objections to the bill.
Representative Stoltze said he appreciated Representative
Kerttula's remarks. He said he does not agree
philosophically with the bill, but it is his district's top
priority. He noted the set-backs allowed in the bill.
9:52:00 AM
Representative Joule observed that in the northern part of
the country it is ok to //.
Representative Foster MOVED to REPORT CSHB 306 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 306 (FIN) was REPORTED out of Committee with "no
recommendation" and with zero fiscal note #1 by the
Department of Natural Resources.
ADJOURNMENT
The meeting was adjourned at 9:53 AM.
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