Legislature(2007 - 2008)HOUSE FINANCE 519
05/09/2007 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB177 | |
| SB105 | |
| SB85 | |
| HB22 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 85 | TELECONFERENCED | |
| + | SB 105 | TELECONFERENCED | |
| + | HB 22 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 177 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
May 9, 2007
8:48 A.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 8:48:40 AM.
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
James Armstrong, Staff, Representative Bill Stoltze; John
Weise, Staff, Senator Lyman Hoffman; Richard Benavides,
Staff, Senator Bettye Davis; Rick Urion, Director, Division
of Occupational Licensing; Pat Davidson, Legislative
Auditor, Legislative Audit Division, Legislative Affairs
Agency
PRESENT VIA TELECONFERENCE
John Tiemessen, President, Alaska Bar Association,
Anchorage8; Chris Hladdick, City Manager, Unalaska; Steve
VanGoor, Bar Counsel, Alaska Bar Association, Anchorage;
Matt Claman, Alaska Bar Association, Anchorage; Wayne Ross,
Alaska Bar Association, Anchorage; Michael Scheider,
Attorney, Anchorage
SUMMARY
HB 22 An Act extending the termination date for the
Board of Governors of the Alaska Bar Association;
and providing for an effective date.
HB 22 was HEARD & HELD in Committee for further
consideration.
HB 177 "An Act relating to the Alaska Gasline Inducement Act;
providing inducements for the construction of a
natural gas pipeline and shippers that commit to
use that pipeline; establishing the Alaska Gasline
Inducement Act reimbursement fund; providing for
an Alaska Gasline Inducement Act coordinator;
making conforming amendments; and providing for an
effective date."
HB 177 was HEARD & HELD in Committee for further
consideration.
SB 85 An Act extending the termination date for the
State Medical Board; and providing for an
effective date.
SB 85 was reported out of Committee with a "do
pass" recommendation and with fiscal note #2 by
the Department of Community & Economic
Development.
SB 105 An Act relating to reimbursement to municipalities
by the Department of Transportation and Public
Facilities for debt incurred by those
municipalities for certain capital projects; and
providing for an effective date.
CSSB 105 (TRA) was reported out of Committee with
a "do pass" recommendation and with zero note #1
by the Department of Community & Economic
Development and zero note #2 by the Department of
Transportation & Public Facilities.
HOUSE BILL NO. 177
"An Act relating to the Alaska Gasline Inducement Act;
providing inducements for the construction of a natural
gas pipeline and shippers that commit to use that
pipeline; establishing the Alaska Gasline Inducement
Act reimbursement fund; providing for an Alaska Gasline
Inducement Act coordinator; making conforming
amendments; and providing for an effective date."
Co-Chair Chenault explained that the Governor had provided a
new committee substitute for HB 77, drafted to the Senate
version of the bill. Legislative Legal Services is
currently drafting a committee substitute incorporating that
language and should arrive by the afternoon meeting.
Amendments can be drafted to that version.
HB 177 was HEARD & HELD in Committee for further
consideration.
8:52:19 AM
SENATE BILL NO. 105
An Act relating to reimbursement to municipalities by
the Department of Transportation and Public Facilities
for debt incurred by those municipalities for certain
capital projects; and providing for an effective date.
JOHN WEISE, STAFF, SENATOR LYMAN HOFFMAN, noted that the
Legislature passed HB 528 in 2002 as debt reimbursement for
certain capital projects. Included in the list of projects
was a small boat harbor in Unalaska approved for $5 million
dollars debt reimbursement through the Department of
Transportation & Public Facilities. It has been delayed due
to the exhaustive permitting requirements, a process started
in 1996 and completed in 2006.
The Corps of Engineers Civil Branch is responsible for the
construction and maintenance of the outer breakwaters for
the project and the City is responsible for construction of
the inner harbor improvements, providing utilities for the
project. The Corps undertook and completed an Environmental
Impact Statement (EIS) in 2004 but the Record of Decision
was not signed until six months ago due to staffing
retirements in Washington D.C. The total permitting cost
was over $3 million dollars.
The City of Unalaska is prepared to move forward as soon as
the Corps of Engineers receives funding, however, the
deadline for the debt reimbursement is June 30, 2007. SB
105 allows the City to complete the design, prepare bid
documents and obligate the funds in time to finish the
project.
8:56:47 AM
Co-Chair Chenault asked about the fencing around the project
was because it was close to the airport. Mr. Weise did not
think the airport was nearby.
8:57:37 AM
CHRIS HLADDICK, (TESTIFIED VIA TELECONFERENCE), CITY
MANAGER, UNALASKA, spoke in support of the bill, commenting
that the process has been long and drawn out. The City of
Unalaska is waiting for a federal appropriation.
Co-Chair Chenault asked about the fencing around the harbor.
Mr. Hladdick explained that the harbor it is not near the
airport but rather closer to the bridge.
Representative Kelly asked if the delay could affect the
funding. Mr. Weise acknowledged the funding was capped; all
other small boat harbors from the original bill are
complete. The only one not yet complete is in Anchorage
because they did not want to bond.
PUBLIC TESTIMONY CLOSED
9:01:19 AM
Representative Foster MOVED to REPORT CS SB 105 (TRA) out of
Committee with individual recommendations and with the
accompanying zero notes. There being NO OBJECTION, it was
so ordered.
CSSB 105 (TRA) was reported out of Committee with a "do
pass" recommendation and with zero note #1 by the Department
of Community & Economic Development and zero note #2 by the
Department of Transportation & Public Facilities.
9:02:24 AM
SENATE BILL NO. 85
An Act extending the termination date for the State
Medical Board; and providing for an effective date.
RICHARD BENAVIDES, STAFF, SENATOR BETTYE DAVIS, noted that
SB 85 extends the sunset date of the State Medical Board
until June 30, 2013, in accordance with recommendations from
the Legislative Auditor, who concluded the Board meets the
statutory requirements of public need and it should continue
to regulate the occupations under its purview.
Mr. Benavides commented that the Board consists of five
licensed physicians, one licensed physician assistant and
two people with no direct financial interests in the
healthcare industry. The board serves the public interest
by establishing the minimum education and work experience
requirements that an individual must meet to become a
licensed physician, osteopath, podiatrist, paramedic, and
physician assistant. The board further serves the public
interest by investigating complaints against licensed
professionals and taking disciplinary licensing action when
appropriate. The board has consistently proven to be
efficient. He urged passage of the bill.
9:04:18 AM
PAT DAVIDSON, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT
DIVISION, LEGISLATIVE AFFAIRS AGENCY, offered to answer
questions of the Committee.
RICK URION, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,
offered to answer questions of the Committee.
PUBLIC TESTIMONY CLOSED
9:05:00 AM
Co-Chair Meyer pointed out the fiscal note.
Representative Foster MOVED to REPORT SB 85 out of Committee
with individual recommendations and with the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
SB 85 was reported out of Committee with a "do pass"
recommendation and with fiscal note #2 by the Department of
Community & Economic Development.
9:06:15 AM
HOUSE BILL NO. 22
An Act extending the termination date for the Board of
Governors of the Alaska Bar Association; and providing
for an effective date.
REPRESENTATIVE BILL STOLTZE, SPONSOR, MOVED to ADOPT work
draft #25-LS0138\L, Bullard, 5/8/07, as the version of the
bill before the Committee. Representative Hawker OBJECTED.
9:07:06 AM
Vice Chair Stoltze noted that last year, the Legislature
extended the sunset for the Alaska Bar Association. The
work draft was crafted in order to protect the stability of
the Board. Last year's fiscal note did not have a
departmental allocation and was exempt from appropriation
powers of the Legislature. He emphasized the amount of
money received by that professional board from dues charged.
He believed there are serious fiscal issues.
9:10:31 AM
JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE,
explained that the draft for HB 22 would extend the sunset
date of the Board of Governor's Alaska Bar Association (ABA)
until June 30, 2010; it requires an appropriation by the
Legislature to dispense program funds.
The Board of Governor for the Alaska Bar Association is
comprised of 12 members; nine are elected by active members
of the Alaska Bar Association (ABA) with three non-attorney
members, appointed by the Governor and confirmed by the
Legislature. The ABA collects dues and other fees on an
annual basis and expends those funds to operate the
association.
Mr. Armstrong continued, the bar association was created in
1955; the funds that sustain the bar association are "State
revenues" and the ABA continues to expend that revenue
without an appropriation by the Legislature. The work draft
will correct the situation, mandating the ABA to submit a
FY09 budget request through the Alaska Court System for
review and approval by the Legislature.
Additionally, the draft creates a "lawyer fund for client
protection" as a new sub-account, which would be contained
in the General Fund. ABA currently maintains such fund,
with nearly $1.2 million dollars, to reimburse attorneys'
clients, who have suffered non-insured losses of money,
property, or other valuable items, as a result of dishonest
conduct by attorneys. The fund is preserved with the
creation of the sub-account, contained with in the General
Fund & not lapsing, subject to appropriation each year by
the Legislature.
Mr. Armstrong pointed out that the Sponsor intends that ABA
should not be able to spend State funds without being
authorized to do so through an appropriation. He
reiterated, the legislation brings the ABA into compliance
with Article IX, Section 13 of the Alaska Constitution,
which states that "no money shall be withdrawn from the
treasury, except in accordance with appropriations made by
law".
· Section 1 is the extension of the Board until June
30, 2010
· Section 2 subjects the Board to dispense funds
subject to appropriation by the Legislature
· Section 3 clarifies that ABA should offer their
budget under the framework of the Alaska Court
System budget
· Section 4 establishes the lawyers fund for client
protection
· Section 5 places receipts of the ABA under the
fiscal procedures act as a funding source, receipt
support services
· Section 6 itemizes the applicability for the claims
& the budget provision & would not happen until FY09
· Section 7 provides the transitional provisions
· Sections 8 & 9 indicate the effective date
9:13:07 AM
Representative Hawker spoke to his objection adopting the
work draft. He pointed out that the House Finance Committee
has had a tradition of keeping reauthorization bills clean.
Politics should not be thrown into the authorization of an
organization. He emphasized that the State does not want
the Alaska Bar Association to sunset. The bill is
introducing a major material policy change at a late date.
The bill entered the public domain ten minutes ago and
affects the separation of legislative powers. He worried
about the appropriateness of the policy call. He was
concerned that his constituents had not had an opportunity
to review the bill & knew he was not qualified to determine
if it would be appropriate policy. He stated that the
legislation violates the transparency of State government.
Representative Hawker urged that the Committee not adopt the
committee substitute.
9:17:22 AM
Vice Chair Stoltze argued that it is not politics creating
the legislation but rather from concerns of public policy.
He knew that the proposed bill was not a surprise to the
legal community. The State should have greater oversight of
the profession.
9:19:26 AM
Representative Gara indicated that he did not know enough
about the proposal to determine if it was good or not. He
agreed the problem should be identified; however, he did not
see a link between the bill and the problem. He recommended
the bill be considered by the public.
9:23:39 AM
Representative Kelly requested information on the objectives
and how the draft accomplishes that.
9:25:34 AM
Vice Chair Stoltze countered that the largest issue is the
money that the State requires the profession to pay, tied to
their ability to make a living. ABA does not have the same
oversight obligations of other boards. He mentioned the
"slush" fund and how that affects their dues. The bill
reduces fees by 40% during the level-off period. Like any
other State board, membership costs would have to be
justified. He wanted to see more accountability. The work
draft addresses the leveling of the dues to reflect the
costs of running the board.
9:28:40 AM
Co-Chair Meyer advised that the comment must determine,
which version the bill is being discussed.
Representative Hawker addressed the process. He thought
that adopting the work draft, would appear as a procedural
acceptance and that by adopting it, places the Committee
into "retrograde" action. He objected to that. He
recommended that the work draft be considered only as an
amendment.
9:31:42 AM
Representative Thomas encouraged the Department of Law to
testify on the bill.
AT EASE: 9:32:50 AM
RECONVENE: 9:33:30 AM
A roll call vote was taken on the motion to adopt the draft.
IN FAVOR: Stoltze, Thomas, Meyer
OPPOSED: Crawford, Foster, Gara, Hawker, Joule,
Nelson, Kelly
Co-Chair Chenault was not present for the vote.
The MOTION FAILED (3-7).
9:34:43 AM
Co-Chair Meyer stated that the original version of the bill
was before the Committee.
Representative Gara commented if there were going to be
amendments, the testifiers need to know in order that they
can address those concerns and changes. Vice Chair Stoltze
stated he did not anticipate building on his previous
position. Co-Chair Meyer recommended discussion be made
toward the original bill version. Representative Hawker
concurred with the Chair. Representative Joule clarified
that the Committee is now addressing only the extension.
9:37:11 AM
JOHN TIEMESSEN, (TESTIFIED VIA TELECONFERENCE), RECENT PAST
PRESIDENT, ALASKA BAR ASSOCIATION, ANCHORAGE, noted that
past boards have only appeared before the Legislature on
sunset issues. The Alaska Bar Association is pledged to
have more contact with the Legislature.
Mr. Tiemessen mentioned current programs being addressed by
the ABA:
· Diversity program requested by Representative Coghill,
· Mandatory education program initiated by Representative
Gruenberg, and
· Tiered dues proposal initiated by Senator McGuire and
Senator French.
Mr. Tiemessen pointed out that the Alaska Bar Association
has existed in its current form since 1955. The lawyer's
fund for client protection has been in existence since 1976.
Currently, there are over 3,000 members. The core mission
of the Board of Governor's and the Alaska Bar Association is
the admission and discipline of members. That function is
handled under the direct supervision of the Alaska Supreme
Court. The Alaska Bar is similar to the other 33 nationwide
unified state bar associations.
9:43:29 AM
Mr. Tiemessen addressed concerns raised in the Committee
about the surplus, which presently, ABA does have.
Budgeting is done on 10-year bases and currently, is in the
earlier part of that cycle. He understood that was not the
manner in which other boards and commissions work. Extra
funds are kept for the inevitable day that the revenue from
the dues will not meet the operating expenses.
9:45:04 AM
Mr. Tiemessen pointed out that the ABA does not have a
companion voluntary organization. Many programs are run by
volunteer organizations providing newsletters and referral
services, group health insurance, informal ethics advice and
that accounts for the difference in the staffing.
9:46:29 AM
Mr. Tiemessen addressed the quality of the office space in
the Atwood Building, noting that the State of Alaska invited
the Bar Association to take over that space. He recognized
that the Legislature has an important role with the Alaska
Bar Association and welcomed opportunities to appear before
the State Legislature.
9:47:48 AM
MATT CLAMAN, (TESTIFIED VIA TELECONFERENCE), NEW PRESIDENT,
ALASKA BAR ASSOCIATION, ANCHORAGE, stated that the Alaska
Bar Association is responsive to the concerns voiced through
the legislation. He mentioned the dues collected by the
Association and the services provided for those dues,
emphasizing the services received by the public members. He
offered to answer questions of the Committee. Mr. Claman
encouraged that the Bar be extended for another three years
pointing out that they are supervised by the Supreme Court.
9:51:44 AM
Representative Gara stressed that the concerns noted by the
Legislature are not going to disappear. He recommended that
entry dues be addressed. Mr. Claman was aware of the
concerns, advising that a committee had been assigned to
investigate the concerns.
9:53:12 AM
MICHAEL SCHEIDER, (TESTIFIED VIA TELECONFERENCE), ATTORNEY,
ANCHORAGE, noted that he did not agree with everything that
the Bar supports, however, receives tremendous service for
the cost of his dues. He recommended that the Bar not be
sunset or amended.
9:54:46 AM
WAYNE ROSS, (TESTIFIED VIA TELECONFERENCE), ALASKA BAR
ASSOCIATION, ANCHORAGE, stated that the Alaska Bar is a
great organization, with great programs. He stated there
should be no changes made. He added that the due charges
are less than other bars in the country.
9:56:02 AM
STEVE VANGOOR, (TESTIFIED VIA TELECONFERENCE), BAR COUNSEL,
ALASKA BAR ASSOCIATION, ANCHORAGE, offered to answer
questions of the Committee.
9:56:33 AM
Vice Chair Stoltze stated that he had no further plans to
attempt passage of the work draft.
HB 22 was HELD in Committee for further consideration.
9:56:59 AM
ADJOURNMENT
The meeting was adjourned at 9:56 A.M.
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