Legislature(2007 - 2008)HOUSE FINANCE 519
03/29/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB137 | |
| HB2 | |
| HB61 | |
| HB29 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 2 | TELECONFERENCED | |
| + | HB 29 | TELECONFERENCED | |
| + | HB 61 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 137 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 29, 2007
1:37:57 PM
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:37:57 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas, Jr.
MEMBERS ABSENT
None
ALSO PRESENT
Representative Paul Seaton; Katherine Shows, Staff,
Representative Paul Seaton; Representative Mark Neuman; Rex
Shattuck, Staff, Representative Mark Neuman; Richard Luther,
Special Assistant, Department of Education and Early
Development; Paula Scavera, Legislative Liaison, Department
of Labor and Workforce Development; Paul Dick, Tax Division,
Department of Revenue; Christine Marasigan, Staff,
Representative Gabrielle LeDoux; Chip Wagoner, Executive
Director, Alaska Conference of Catholic Bishops; Mike
Lessman, Office of Children's Services, Department of Health
and Social Services; Hanna Sebold, Assistant Attorney
General, Department of Law; Carl Rose, Executive Director,
Alaska Association of Alaska School Boards
PRESENT VIA TELECONFERENCE
None
SUMMARY
HB 137 "An Act amending the requirements for the
identification card needed for sport fishing,
hunting, and trapping without a license by
residents who are 60 years of age or more."
CSHB 137 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new fiscal
note by the Department of Fish and Game.
HB 2 "An Act relating to the vocational education
account and appropriations from that account; and
providing for an effective date."
HB 2 was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note #1
by the Department of Administration.
HB 61 "An Act relating to tax credits for cash
contributions by taxpayers that are accepted for
certain educational purposes, including vocational
education programs and courses at the secondary
school level; and providing for an effective
date."
CSHB 61 (W&M) was heard and HELD in Committee for
further consideration.
HB 29 "An Act relating to infants who are safely
surrendered by a parent shortly after birth."
CSBH 29 (JUD) was heard and HELD in Committee for
further consideration.
HOUSE BILL NO. 137
"An Act amending the requirements for the
identification card needed for sport fishing, hunting,
and trapping without a license by residents who are 60
years of age or more."
Vice-Chair Stoltz MOVED to ADOPT the work draft for HB 137,
labeled 25-LS0118\R, Kane, 3/28/07. There being NO
OBJECTION, it was so ordered.
REPRESENTATIVE PAUL SEATON, sponsor, explained the costs to
the Department of Fish and Game for dispersing complimentary
sport fishing and hunting licenses to Alaska National Guard
members and to residents 60 years and older. The process
would involve cross referencing PFD lists and sending new
TID cards.
1:41:02 PM
Representative Seaton reported that the enforcement section
was removed from the bill.
1:43:30 PM
Representative Kelly related a personal experience with the
PID. He suggested another way of dealing with the problem
of having to reissue new cards.
1:44:54 PM
Representative Seaton related that the estimate of loss from
abuse of the cards is $137,000 per year. Anyone with a PID
will get a new card in the mail. There is a lot of
unverifiable abuse, which is a problem with the current
method. Representative Kelly thought it would be another
layer of bureaucracy and an unwelcome hassle for current
cardholders.
1:47:47 PM
Co-Chair Chenault asked if there is a way to issue a fix-it
ticket for current cardholders. Representative Seaton
replied that the enforcement portion of the bill was removed
in order to accomplish that. Everyone who is qualified will
get a new license in the mail.
Representative Joule wondered if bar coding would work, or
other technology. Representative Seaton thought the PFD
qualification requirement would take care of the problem.
Representative Kelly suggested another way to check for
eligibility by requiring a valid Alaska driver's license
along with a PID. Representative Seaton said he has not
thought about it. Representative Kelly thought it would
solve most of the problems.
1:54:05 PM
KATHERINE SHOWS, STAFF, REPRESENTATIVE SEATON, pointed out
that other states have varying driver's license
requirements. Some seniors may qualify for a PFD and yet
have an out-of-state license.
Co-Chair Meyer noted that the legislation was amended to
incorporate amendments by Representative Thomas.
Representative Thomas explained that the amendments
incorporated into Sections 1 - 3 would provide a free
license to active members of the Alaska National Guard
(ANG). He clarified that the gift is not an inducement to
join the ANG, but a way to allow members to relax before
they are deployed. There will be 1,400 Guard members by the
end of the year. He said that the other body has no problem
with this amendment.
1:58:20 PM
Vice Chair Stoltze wondered if this could be a separate
bill. Representative Thomas replied how the decision was
made to attach the amendments to the bill. Vice Chair
Stoltze commented in favor of those amendments.
Co-Chair Meyer pointed out that the bill has a 3-year
sunset. Representative Kelly asked who requested this
addendum. Representative Thomas said it was his way to say
thank you to National Guard members.
Representative Seaton said the bill was part of a bill from
another committee and the chair gave permission from that
committee to attach these amendments.
Co-Chair Meyer noted that the fiscal note needs to be
rewritten.
2:03:11 PM
Representative Foster MOVED to REPORT CSHB 137 (FIN) out of
committee with individual recommendations and accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
CSHB 137 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Fish and Game.
2:05:23 PM
HOUSE BILL NO. 2
"An Act relating to the vocational education account
and appropriations from that account; and providing for
an effective date."
REPRESENTATIVE MARK NEUMAN, sponsor, explained that HB 2 is
a way to obtain private industry's money for vocational
education. He cited problems related to No Child Left
Behind and the need to assure credits for vocational
education classes. He related statistics regarding
graduation rates and the need for skilled labor. He noted
support for the bill by AFL-CIO.
2:08:49 PM
Co-Chair Chenault asked who would control the money that is
put into this account.
REX SHATTUCK, STAFF, REPRESENTATIVE MARK NEUMAN, replied
that the legislature has total appropriation of that money.
Recommendations would be made by the Department of Labor and
Workforce Development (DLWD) in consultation with the
Department of Education and Early Development (DEED).
2:09:55 PM
Representative Gara wondered if this bill would divide the
money going to the general fund instead of bringing in new
money. Representative Neuman indicated out that that
information is in HB 61.
Representative Foster pointed out that a handout from Carl
Rose, Executive Director of AASB, states that under the
current foundation formula 20 percent of school education
funds are for special education, bilingual education, and
vocational education. In the Bush, no money is left for
vocational education. He asked if HB 2 might alleviate this
problem. Representative Neuman agreed that that situation
happens. This bill would allow private industry to put
money into vocational education.
Vice Chair Stoltze inquired what percentage of kids do not
go on to college. Representative Neuman reported that 47.3
percent of Alaska Natives and 62.2 percent of other races
graduate high school. Overall, about 8 percent go on to a
4-year college program.
2:13:16 PM
CARL ROSE, EXECUTIVE DIRECTOR, ALASKA ASSOCIATION OF ALASKA
SCHOOL BOARDS, reported on the history of the 20 percent
block grant. In 1999, the 20 percent block grant was put
into place to share the responsibility for special
education, vocational education, and bilingual education.
Currently, with the immigration policy, those requirements
can't be met. There is no money left for vocational
education. He questioned, "Don't we want to say what we
mean and mean what we say?" If vocational education is a
priority, there should be an account for it. He testified
in support of the bill.
2:15:22 PM
Co-Chair Meyer asked how the money would be appropriated.
PAULA SCAVERA, LEGISLATIVE LIAISON, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, explained that the bill creates a
special account in the general fund. The funds are
appropriated by the legislature to the Department of Labor
for programs approved by the Commissioner of the Department
of Education and Early Development. Co-Chair Meyer wondered
if the account could be susceptible to being swept into the
CBR.
Co-Chair Meyer asked if the Alaska Workforce Investment
Board would develop criteria for the programs. Ms. Scavera
replied that there is no criteria and the board serves to
advise.
2:19:14 PM
Representative Foster emphasized how important training
programs are in his district for jobs that are not state
jobs. Less than 1 percent of jobs in his district are state
jobs and require training which is not available in the
area. Often workers are imported from other areas to do the
work.
Representative Thomas related how workers in his area were
trained by unions and then had no jobs to come back to. He
requested follow up after training is completed. Ms.
Scavera recalled the example Representative Thomas was
referring to. She reported that this is a concern of the
new commissioner. Representative Thomas added that it is
difficult to get hired without work experience.
2:23:05 PM
Representative Kelly asked about the Department of Labor's
role. Representative Neuman repeated that the Department of
Labor would work in consultation with the Department of
Education. Representative Kelly voiced concern about the
Department of Labor's role. Representative Neuman addressed
who controls the funds; the Department of Labor has the
awareness and flexibility to meet the demands of the state
where they are needed. He suggested that the two
departments would work together. Representative Kelly
voiced a preference for it to be handled in the Department
of Education. Representative Neuman explained that the
needs of No Child Left Behind have to be met. Grade level
standards have to be met. Representative Kelly repeated his
concern.
2:27:12 PM
Vice Chair Stoltze thought that the Department of Labor was
the right place for this account. He wondered what issues
arose in the previous committee regarding this bill.
Representative Neuman reported that over the past two years
there was some discussion about structure. He questioned if
a board was necessary. He thought the commissioners could
do the job.
Representative Joule recalled a time when post-secondary
level vocational training programs were in the Department of
Labor. He pointed out the advantage of the fund coming
before the legislature to be appropriated.
2:31:34 PM
Representative Gara said he is not overly concerned about
where the money goes because it goes into the general fund.
He thought the worry about the language was not a big
concern.
Representative Crawford related his experience with
apprentice training programs for construction workers. He
noted a problem with trained workers not getting employment.
Representative Neuman reported how helpful the applied
sciences are.
2:34:09 PM
Representative Foster recalled a survey of his district. He
pointed out how training has improved.
Representative Foster MOVED to REPORT HB 2 out of committee
with individual recommendations and accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 2 was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note #1 by the
Department of Administration.
2:35:56 PM
HOUSE BILL NO. 61
"An Act relating to tax credits for cash contributions
by taxpayers that are accepted for certain educational
purposes, including vocational education programs and
courses at the secondary school level; and providing
for an effective date."
REPRESENTATIVE MARK NEUMAN, sponsor, explained that HB 61 is
a change in title to a current tax credit available to
postsecondary schools, which now would allow the credit for
secondary schools. He thanked Representative Hawker for his
assistance on the CS.
2:36:51 PM
REX SHATTUCK, STAFF, REPRESENTATIVE MARK NEUMAN, referred to
the applicable statutes relating to the bill. He explained
that the tax credit can be used against the tax due for cash
contributions accepted for direct instruction, research,
educational support purposes, including libraries and
museums, and contributions to endowment, by an Alaskan
university foundation or by a non-profit, private, or
public, two-year or four-year college accredited by a
regional accreditation association. A section was added to
include secondary school level vocational educational
courses and programs. The tax works by giving a credit
depending on the amount of contribution.
2:39:09 PM
Representative Thomas asked about a potential amendment.
Mr. Shattuck noted a concern about leaving Seward's AVTEC
out due to its unique nature. Representative Neuman thought
that AVTEC was included already and the amendment was not
necessary.
Representative Kelly asked why the bill would exclude
private secondary programs, such as one funded by a
corporate sponsor. Representative Neuman replied that a
state-funded tax credit should be for a state-funded
program. Representative Kelly disagreed; he pointed out
that private universities are eligible. He asked why
accredited non-public schools are excluded.
2:42:38 PM
Representative Nelson thought Representative Kelly might be
referring to tribal colleges. Representative Kelly said he
is referring to secondary private schools with a corporate
donor. Representative Neuman said it was not his intent to
exclude them. He was just trying to extend the opportunity
to secondary level schools. Representative Kelly asked if
an amendment could be worded to include private secondary
schools. Representative Neuman pointed out that it is his
intent to keep the fiscal note zero. Representative Kelly
thought it would be a positive step to change the bill to
include private secondary schools.
2:45:21 PM
Representative Nelson wondered if the People's Learning
Center in Bethel would benefit from this bill.
Representative Neuman thought it would because it is a
secondary school. Representative Nelson said it is not in
the school district.
Mr. Shattuck said that the way the bill is written the
People's Learning Center would not be included. The bill
does not include non-profits. Representative Neuman was
open to expanding the bill to include them. Mr. Shattuck
related the history of what has been received in the past.
Mr. Shattuck observed that non-profits would not be included
in HB 61. Representative Neuman interjected that they would
be covered under HB 2.
2:50:39 PM
Representative Kelly stated that he was not worried about
the fiscal note.
Representative Neuman explained that HB 2 makes it easier
for contributions at the federal level to be considered
under "defined public purpose".
Mr. Shattuck explained how federal tax credits would work.
The state and federal government would be responsible for
their own share.
2:53:26 PM
In response to a question by Co-Chair Meyer, Ms. Scavera did
not believe that AVTEC would be covered by this legislation.
Co-Chair Meyer concluded that the People's Learning Center
would not be covered as well. Ms. Scavera agreed. Co-Chair
Meyer questioned the effect on the fiscal note and revenue
to the state with an expansion of the program.
PAUL DICK, TAX DIVISION, DEPARTMENT OF REVENUE could not
respond to the question, since it would be impossible to
predict the amount of students that would switch studies,
but he did not think the impact would be great.
2:55:38 PM
Representative Kelly asked what would need to be done to
certify a non-profit or private institution for
accreditation.
RICHARD LUTHER, SPECIAL ASSISTANT, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT observed that there are a number of
secondary programs that are not accredited. Representative
Kelly concluded that accreditation would not be required.
Mr. Luther explained that accreditation covers all programs
within a school.
2:59:51 PM
Representative Joule thought there was only one tribal
college in Alaska in Barrow. Ms. Scavera thought that
school would qualify because it is accredited.
Representative Nelson noted that Bethel has a center that
teaches flying and wondered if it would fall under the
legislation. Ms. Scavera explained that it would probably
not be covered if it is not associated with a school
district.
3:01:33 PM
Representative Kelly suggested that there may be an
opportunity to expand the legislation.
Representative Hawker acknowledged the merit of expanding
vocational programs, but cautioned that the "gate" not be
opened too wide. He observed that school districts are a
recognizable, qualified target.
Representative Neuman echoed concerns of Representative
Hawker.
CSHB 61 (W&M) was heard and HELD in Committee for further
consideration.
3:04:56 PM
HOUSE BILL NO. 29
"An Act relating to infants who are safely surrendered
by a parent shortly after birth."
CHRISTINE MARASIGAN, STAFF, REPRESENTATIVE LEDOUX, spoke in
support of the legislation and noted that it has the ability
to save lives of children up to 21 days old. Parents would
not be prosecuted for giving up a child up to 21 days old.
There is similar legislation in 47 other states.
Representative Thomas clarified that Village Public Safety
Officers would be considered as peace officers.
3:09:00 PM
In response to a question by Representative Hawker, Ms.
Marasigan explained that the legislation was expanded from
last year's version in order to increase the potential
receivers of a child to include community health aides and
peace officers. Clergy were also included by the last
committee.
Representative Crawford asked why 21 days were chosen. Ms.
Marasigan explained that the 21 day period was a compromise
amongst agencies consulted on the legislation. She noted
that there was a greater potential for child abuse beyond a
month.
3:12:09 PM
Representative Gara observed that previous legislation
passed by the House also used 21 days. Ms. Marasigan added
that the definition of neo-natal is "under 28 days of age".
Vice Chair Stoltze asked about the termination of child
support obligations. Ms. Marasigan replied that the
Department of Law could address that issue. Vice Chair
Stoltze asked about federal tribal rights as they relate to
abandonment. Ms. Marasigan pointed out that the Indian
Child Welfare Act emphasizes the safety of the child first.
3:15:55 PM
Co-Chair Meyer wondered what rights the father has if the
mother brings in the child. Ms. Marasigan deferred to the
Department of Law to answer.
Representative Gara spoke to criminal vs. civil liabilities
according to current law regarding loss of custody. Ms.
Marasigan thought that this would fall under the abandonment
statute. Representative Gara summarized the requirements of
the statute.
3:17:24 PM
CHIP WAGONER, EXECUTIVE DIRECTOR, ALASKA CONFERENCE OF
CATHOLIC BISHOPS, spoke in favor of HB 29. He spoke of the
larger societal issues. He addressed the fiscal note and
the necessity of publicizing the program.
Co-Chair Meyer asked about the father's rights in
abandonment cases.
HANNA SEBOLD, ASSISTANT ATTORNEY, DEPARTMENT OF LAW, replied
that this bill is a mechanism that kicks the Child in Need
of Aid statute into place. Finding a child in need of aid
does not terminate a parent's right. There is a process of
six months to determine termination of parents' rights.
3:22:33 PM
Representative Hawker asked about the receiver paragraph on
page 2, lines 5-11. He questioned the wording of lines 7
and 8 regarding "physician" and "hospital employee".
MIKE LESSMAN, OFFICE OF CHILDREN'S SERVICES, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, thought the interpretation of
when a physician would receive an abandoned child is loose.
Ms. Sebold suggested a comma after physician on line 7, for
clarification. Representative Hawker concurred.
3:25:14 PM
Representative Gara asked about temporary foster care and
the following home visit. Ms. Sebold said it is not a
strict six-month period, but is intended to provide time for
a home study. Representative Gara asked if the child
immediately goes to the adoptive family if one is available.
Ms. Sebold clarified that the child will be placed for six
months and then a home study takes place.
Representative Hawker returned to the receivers list and
noted two categories added since previous legislation. A
"member of the clergy" and a "community health aide" are
new. The previous categories are clearly professional
people with training. He wondered of OCS is comfortable
with the new additions.
Mr. Lessman said he could not provide any guarantees. Where
there are no hospitals in rural Alaska, a community health
aide would substitute. Representative Hawker questioned the
validity of a clergy.
3:30:44 PM
Ms. Marasigan addressed Representative Hawker's concerns.
She defined clergy as someone who is working in a ministry.
She related the history of the church as a place to receive
abandoned children.
Co-Chair Meyer asked where clergy is defined. Ms. Marasigan
thought it was a Department of Law definition.
Representative Hawker maintained that a clergy may not be
medically trained to deal with abandoned babies. Ms.
Marasigan related that other committees had similar
concerns. She thought that abandonment was an emergency
situation. Representative Hawker agreed.
3:35:00 PM
Representative Gara suggested a general statement such as
the parent leaves the infant in the physical custody of a
person who the parent "reasonably believes would provide
safe care", rather than a list of people who the baby could
be left with.
Vice Chair Stoltze agreed with the intent of the bill. He
echoed Representative Hawker's concern about the definition
of clergy.
Co-Chair Meyer announced that the bill would be held over to
address the concerns.
HB 29 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 3:38 PM.
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