Legislature(2007 - 2008)
03/26/2007 03:04 PM House FIN
| Audio | Topic |
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| Start | |
| SB82 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 26, 2007
3:04 P.M.
CALL TO ORDER
Co-Chair Chenault called the House Finance Committee meeting
to order at 3:04:26 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Richard Foster
ALSO PRESENT
Sharon Kelly, Staff, Representative Mike Chenault; Ray
Riutta, Executive Director, Alaska Seafood Marketing
Institute; Amanda Ryder, Fiscal Analyst, Legislative Finance
Division
SUMMARY
HB 19 An Act relating to ignition interlock limited
driver's license privileges.
HB 19 was SCHEDULED but not HEARD.
CS SB 82(FIN) An Act making supplemental appropriations and
other appropriations; amending the lapse dates of
certain appropriations; and providing for an
effective date.
CS SB 82 (FIN) was reported out of Committee with
a "do pass" recommendation.
3:05:39 PM
CS FOR SENATE BILL NO. 82(FIN)
An Act making supplemental appropriations and other
appropriations; amending the lapse dates of certain
appropriations; and providing for an effective date.
Co-Chair Chenault stated that he intended to move the bill
from Committee at this meeting.
3:06:42 PM
SHARON KELLY, STAFF, REPRESENTATIVE & CO-CHAIR MIKE
CHENAULT, explained that the committee substitute represents
the contents of the oil and gas supplemental exactly as
proposed by the Governor with one addition and some
conditional appropriation language. She directed comments
to the addition.
Section 5 contains the supplemental request for Alaska
Seafood Marketing Institute (ASMI), which was contained in
Section (1) (a) of HB 139, the regular supplemental under
time sensitive items. The original funding for the
supplemental was incorrect in that it proposed to recover
Receipt Support Services funding from previous years and
therefore indicated the $2 million dollars as non-General
Funds. Unfortunately, those monies were swept at the year-
end and there is no way to recover it. In order to repay
ASMI, the funding source should be listed as General Funds.
Ms. Kelly spoke to the conditional language, noting concern
indicated on the Senate side that the funds in Section 2,
$6,550 thousand dollars to Department of Natural Resources,
relates to Alaska Gas Inducement Act (AGIA) & should have
been funded in a fiscal note rather than through the
proposed bill. In response to that concern, contingency
language was added in Section 8, which makes the
appropriation contingent on the passage of AGIA or other
th
similar legislation passed by the 25 Alaska State
Legislature. Those items were previously presented to the
thth
House Finance Committee on February 27 and 28 as HB 138
and 139.
3:09:09 PM
Representative Hawker pointed out that Section 8 provides
the contingency on bill policy related issues and is a
reasonable compromise. He noted support.
Representative Gara pointed out that Section 5 appropriates
$576 thousand dollars of program receipts to ASMI for the
current year. He noted that including the supplemental
requested dollars, what was the total received by ASMI.
3:10:25 PM
RAY RIUTTA, EXECUTIVE DIRECTOR, ALASKA SEAFOOD MARKETING
INSTITUTE (ASMI), discussed that the funding was for this
year's budget. It is receipts received last year and would
increase this year's total spending by $2 million dollars to
support a marketing campaign began last fall.
Representative Gara recalled that an amendment passed last
week during discussion on the operating budget, which
increased the ASMI funding by $1.75 million dollars. Mr.
Riutta noted that funding plus the requested amount would
provide for television (TV) advertising.
Representative Gara referenced Page 3, Line 3, the sum of
$1.4 million dollars appropriated to ASMI for a national
consumer marketing campaign. He questioned the total
increased funding to ASMI budget. Mr. Riutta responded that
the total for this year's supplemental request is $2 million
dollars, which are receipts accumulated over time. Next
year's budget dollars are for next year's anticipated budget
and will allow the Division to continue advertising
activities.
Representative Gara worried about the combined total funding
for ASMI. Mr. Riutta explained the amount was needed to
fund activities scheduled for the rest of this year,
including TV time, which must be purchased months ahead. If
it is not funded, ASMI will loose the fall promotions.
Representative Kelly emphasized that ASMI is not "double
dipping". The funding carries out the receipt authority
problem from the current year; the increment is required in
order to access the receipt authority funds. ASMI has
determined to use the dollars to fund their TV campaign.
Representative Gara requested further clarification, asking
what had been appropriated in the current year's budget.
Representative Kelly stated that there was $1 million in
General Fund dollars for both years. Those numbers have
stayed consistent. There were funds collected and they
[ASMI] does not have the authority to expend the funds
unanticipated for collection without the supplemental
request. There would be no increase to the General Fund
allocation.
3:17:33 PM
In response to Representative Gara, Mr. Riutta added that
the funds had been provided by the industry from self-
assessment to pay for advertising.
3:18:07 PM
AMANDA RYDER, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION,
explained that from FY93 through FY07, the ASMI finance
officer has determined that they had been under-collecting
on receipts. They determined there was $1.4 million dollars
that should have been collected - a windfall for ASMI. The
Department of Revenue indicated that those dollars should be
given to ASMI now. ASMI is requesting the authority to
spend those dollars now. In addition to the money they
should have been collecting, they had about $500 thousand
dollars more in receipts in FY07 than anticipated. ASMI is
requesting to spend all those dollars in FY08. They have
more dollars to spend than anticipated. The FY08 dollars
were requested as a replacement for the statutorily
designated program receipts. Their overall budget should be
level.
Representative Gara reiterated concerns with the doubling of
that budget using General Fund monies. He asked the source
of the funding & if it would be available next year. Ms.
Ryder clarified that it was all self assessed money; the
money was actually requested as receipt supported services.
It must be claimed as General Funds since it originated back
in FY93 forward and had been swept into the Capital Budget
Reserve (CBR).
3:22:23 PM
Vice Chair Stoltze agreed that ASMI has more advertising
potential than they could ever afford. He supported the
funding request and thought it was self assessed. He stated
it would help ASMI "catch up with the important aspects of
marketing".
Representative Crawford asked if it was normal to find such
"sweeping". Ms. Ryder replied it is the "normal" carry
forward language and that since FY02, the language had not
been included. Any remaining balance at the end of the
fiscal year gets swept into the CBR. Even if ASMI had the
carry forward language inserted, it would have been
considered "swept".
Representative Gara asked for an estimate of the percentage
of fishery taxes that stay in the General Fund and the
amount that goes back to the industry. Mr. Riutta did not
know the exact numbers but thought a significant portion
stays in. He offered to research those amounts.
3:25:47 PM
PUBLIC TESTIMONY CLOSED.
Vice Chair Stoltze MOVED to REPORT CS SB 82 (FIN) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CS SB 82 (FIN) was reported out of Committee with a "do
pass" recommendation.
RECESSED: 3:26:41 PM
RECONVENED: 3:26:48 PM
HOUSE BILL NO. 19
An Act relating to ignition interlock limited driver's
license privileges.
Co-Chair Meyer stated that HB 19 would be HELD until the
next scheduled meeting on 3/24/07.
ADJOURNMENT
The meeting was adjourned at 3:27 P.M.
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