Legislature(2007 - 2008)HOUSE FINANCE 519
04/11/2008 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB259 | |
| SB231 | |
| SB218 | |
| SB120 | |
| SB201 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 231 | TELECONFERENCED | |
| += | SB 218 | TELECONFERENCED | |
| += | SB 120 | TELECONFERENCED | |
| += | SB 259 | TELECONFERENCED | |
| += | SB 201 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 11, 2008
8:51 A.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting
to order at 8:51:21 AM.
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
Senator Hollis French; Kathryn Kurtz, Assistant Statute
Reviser, Legislative Legal Services; Bryan Butcher,
Legislative Liaison, Alaska Housing Finance Corporation;
Marie Darlin, AARP; Suzanne Armstrong, Staff,
Representative Kevin Meyer; Allison Biastock, Staff,
Senator Hollis French; Mary Siroky, Special Assistant,
Department of Transportation and Public Facilities;
Michelle Sydeman, Staff, Senator Wielechowski; Kim Garnero,
Director, Division of Finance, Department of
Administration, Director
PRESENT VIA TELECONFERENCE
Chris Nelson, Alaskans for Tax Reform, Anchorage
SUMMARY
CS SB 120(FIN)
An Act relating to disclosure of certain
information from the records of the Department of
Labor and Workforce Development and limiting the
use of the disclosed information, and to the
calculation and payment of unemployment
compensation benefits; and providing for an
effective date.
CS SB 120(FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new fiscal
note by the Department of Administration and
fiscal note #2 by the Department of Labor and
Workforce Development.
CS SB 201(FIN)
An Act relating to the establishment and
maintenance of an Internet website providing
public finance information; and identifying the
information to be available on the Internet
website.
CS SB 201(FIN) was REPORTED out of Committee with
a "no recommendation" and with zero note #1 by
the Department of Administration.
CS SB 218(FIN)
An Act relating to use of child safety seats and
seat belts.
CS SB 218(FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new zero
note by the House Finance Committee for the
Department of Transportation and Public
Facilities.
CS SB 231(HES)
An Act relating to the Alaska housing trust fund
and to the Alaska Council on the Homeless; and
providing for an effective date.
CS SB 231(FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new zero
note by the House Finance Committee for the
Alaska Housing Finance Corporation, zero note #2
by the Department of Public Safety, zero note #3
by the Department of Health and Social Services
and zero note #4 by the Department of
Corrections.
SB 259 An Act repealing certain provisions relating to
applications for medical assistance coverage;
making certain provisions of ch. 96, SLA 2006,
retroactive; providing for an effective date by
repealing an effective date section in ch. 96,
SLA 2006; providing for an effective date for
certain sections of ch. 96, SLA 2006; and
providing for an effective date.
SB 259 was REPORTED out of Committee with a "do
pass" recommendation and with zero note #1 by the
Department of Health and Social Services and zero
note #2 by the Legislative Affairs Agency.
8:52:29 AM
SENATE BILL NO. 259
An Act repealing certain provisions relating to
applications for medical assistance coverage; making
certain provisions of ch. 96, SLA 2006, retroactive;
providing for an effective date by repealing an
effective date section in ch. 96, SLA 2006; providing
for an effective date for certain sections of ch. 96,
SLA 2006; and providing for an effective date.
KATHRYN KURTZ, ASSISTANT REVISER OF STATUTES, LEGISLATIVE
LEGAL SERVICES, clarified that SB 259 addresses an
effective date problem. In the original 2006 bill, there
was an effective date that was suppose to start on either
st,
July 1 when the State received federal approval of the
revised plan or whatever came later. The problem is that
the federal approval process was piece-mealed. Many of the
changes in the original billed did not need to be approved
by the federal government. The manner in which the bill
was worded left some sections without an effective date.
SB 259 provides the effective date for those sections. The
Department of Law supports the bill.
8:54:15 AM
Vice-Chair Stoltze MOVED to REPORT SB 259 out of Committee
with individual recommendations and with the accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
SB 259 was REPORTED out of Committee with a "do pass"
recommendation and with zero note #1 by the Department of
Health and Social Services and zero note #2 by the
Legislative Affairs Agency.
8:54:48 AM
CS FOR SENATE BILL NO. 231(HES)
An Act relating to the Alaska housing trust fund and
to the Alaska Council on the Homeless; and providing
for an effective date.
Vice-Chair Stoltze MOVED to ADOPT work draft 25-GS2006\M,
Cook, 4/10/08 as the version of the bill before the
Committee. There being NO OBJECTION, it was adopted.
BRYAN BUTCHER, PUBLIC AFFAIRS DIRECTOR & LEGISLATIVE
LIAISON, ALASKA HOUSING FINANCE CORPORATION (AHFC),
ANCHORAGE, explained the bill. He stated that the
legislation creates a housing trust fund within AHFC to
address concerns of homelessness in the State of Alaska.
The bill increases AHFC's flexibility in addressing long
term solutions for homelessness. SB 231 would codify the
role of the Governor's Council on the Homeless, which has
been operating under Administrative Order. The original
bill is the culmination of many years of work by several
statewide advocacy groups and is a recommendation of the
Governor's Council on the Homeless.
Mr. Butcher noted that homelessness is one of the most
important social issues facing Alaska.
• 3,500 Alaskans are homeless on any given night,
including 1,600 people in families with children;
• 4,000 Alaskan households are on the waiting list for
public housing programs, most are families with
children; and
• 20,000 low-income Alaskan households spend more than
half their income on housing, placing them at risk
of homelessness.
Mr. Butcher pointed out that the development of housing
alone is not enough to provide permanent solutions to
homeless crisis. People who are homeless or at risk of
becoming homeless, frequently need supportive services to
be successful, such as treatment, crisis intervention,
tenant education, financial literacy, job counseling and
life skills training. Placing a housing trust within AHFC
expands the services of the State without expanding
government's size. SB 231 provides AHFC the flexibility to
address homelessness in Alaska.
Mr. Butcher concluded that the Governor's proposed FY09
capital budget includes a $10 million dollar request for
the establishment of the Housing Trust Fund. The $10
million is made up of funds from four different sources:
• AHFC dividends
• Mental Health Trust Authority receipts
• State General Funds
• Contributions from other private sources
8:57:00 AM
Representative Hawker asked how the draft differed from the
original version of the bill. The original request was for
a $150 million dollar commitment for a ten year project.
Mr. Butcher explained that the State currently offers a
Homeless Assistance Program. AHFC has been administering
the residential side of that program. AFHC is the agency
for the State in dealing with homelessness. The bill no
longer includes putting the Governor's Council on the
Homeless into statute. That action is not necessary since
it was created by an Administrative Order.
Representative Hawker offered his continued assistance in
addressing homelessness in the State of Alaska. He
proposed a greater buy-in from the Department of Health and
Human Services. He encouraged that the Mental Health Trust
Authority (AMHTA) expand their outreach to legislators. If
embarking on a $150 million dollar building program, the
entire legislature will need to accept it. He pointed out
that the capital budget added $6 million dollars to the
homeless programs at AHFC for foundation building.
9:02:30 AM
Mr. Butcher added that Jeff Jesse, Executive Director,
Alaska Mental Health Trust Authority, was supportive of the
program.
Co-Chair Chenault directed comments to the conversations
his office has had with the Mental Health Trust Board
funding for the program. He acknowledged the outreach
needs.
Representative Kelly indicated that he was not in support
as the program appears to be a State "entitlement". He
noted for the record that he is "very concerned with the
long-term effect the program will have on the State.
9:04:40 AM
Representative Gara understood from testimony that there
would be no funding included for the Housing Trust in the
current budget. Mr. Butcher explained that yesterday
[5/10/08], during the Mental Health Conference Committee
meeting established a Homeless Assistance Program that
would operate on $2 million dollars per year. The amount
would be generated from $1 million AHFC dividend dollars,
$500 hundred thousand dollars of General Fund Mental Health
and $500 thousand from the AMHTA receipts. Funding would
have ceased if the $10 million for the Trust had been
funded. The Conference Committee moved $6 million dollars
of that amount to $2 million and moved $2.5 million of AHFC
raised funds from private sources, which moves the program
from $2 million funding dollars to $8 million funding
dollars. Next year, AHFC will come back to revisit the
situation. He added, the Governor's Council has been
increased to a membership of an additional five members.
9:06:14 AM
Representative Gara emphasized that the work draft puts the
Housing Trust on hold for another year. Mr. Butcher said
yes. Representative Gara strongly disagreed with that,
noting that the Housing Trust has been deliberating on the
issue for a long time. The intent is to transition the
homeless into permanent housing. He stressed that the
program is good and that he strongly disagrees with putting
it off for another year.
Co-Chair Meyer responded it is an attempt to transition the
program.
9:07:59 AM
MARIE DARLIN, CAPITAL CITY TASK FORCE, AARP, voiced support
for the intention behind the bill. The bill addresses the
situation from a long-term plan at providing supportive
services. She maintained it is important to accomplish
addressing the concerns with homelessness. She urged
passage of the bill from the Committee.
9:09:49 AM
PUBLIC TESTIMONY CLOSED
RECESS: 9:10:13 AM
RECONVENE: 10:49:52 AM
SUZANNE ARMSTRONG, STAFF, REPRESENTATIVE KEVIN MEYER,
addressed the fiscal note, which enumerates information on
the additional funds added to HB 312 for the current
program. HB 231 allows AHFC to expand the general power of
limitations. The additional funds will be used for that
expansion.
10:51:36 AM
Vice-Chair Stoltze MOVED to REPORT HCS CSSB 231(FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS SB 231(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new zero note by the House
Finance Committee for the Alaska Housing Finance
Corporation, zero note #2 by the Department of Public
Safety, zero note #3 by the Department of Health and Social
Services and zero note #4 by the Department of Corrections.
10:56:19 AM
CS FOR SENATE BILL NO. 218(FIN)
An Act relating to use of child safety seats and seat
belts.
SENATOR HOLLIS FRENCH, SPONSOR, introduced SB 218, stating
that booster seats save lives. The National Highway
Traffic Safety Administration recommends that children
under 80# and under 57" tall use a child safety seat or
belt positioning booster seat.
SB 218 stipulates that:
• Children under one year of age or older but under
20#, shall be secured in a rear facing child safety
seat;
• Children one to four years old who weight over 20#
shall be secured in a child restraint device or
seat;
• Children four to eight who are under 57" tall and
under 80# shall be secured in a booster seat or a
child restraint system;
• Children over 4 who are taller than 57" and weigh
over 80# shall be properly secured in a seat belt,
just like adults;
• Children over eight years of age but under sixteen
years old, who are under 57" tall and 80# shall be
restrained by the proper safety device or a seat
belt, whichever is appropriate.
Senator French pointed out that all safety devices,
boosters and child seats must meet or exceed the standards
set out by the United States (U.S.) Department of
Transportation. At the present time, thirty nine other
states mandate booster seat use. While any restraint is
better than none, national studies have shown booster seats
are 60% safer than seat belts alone. The cost of a booster
seat ranges from $25 to $100 dollars, depending on the
model. Senator French urged support of the legislation.
Co-Chair Chenault asked if the bill imposes any new fines.
Senator French replied it does not; it remains the same
penalty for someone having a baby behind a seat belt
instead of being placed in a booster chair. The penalty is
a $50 dollar ticket for the first time offense and if the
seat is purchased, the fine does away.
Co-Chair Chenault asked if there was an educational program
available to inform parents about the new federal
requirement. Senator French explained that there is a
group that provides information and funnels money if the
parent needs help purchasing the seat.
10:59:47 AM
ALLISON BIASTOCK, STAFF, SENATOR HOLLIS FRENCH, added that
the main group operating in Alaska is called Safe Kids. It
is a non profit & devoted to child safety. They operate
through statewide hospitals. Another group is called Kids
on the Move program, which offers booster seat assistance
to families on a sliding scale base.
11:00:27 AM
Representative Thomas inquired if there were federal funds
tied to conforming the program. Senator French responded
there are and that the State of Alaska will receive $200
thousand dollars per year from the federal government.
Representative Thomas pointed out in previous years,
funding went to the Driving While Intoxicated (DWI)
programs and Bush Alaska never received any of those funds.
11:01:32 AM
Vice-Chair Stoltze recalled when the bill was presented in
th
the 13 Legislature. He did not want to see the issue
micro-managed. Senator French shared those concerns;
however, pointed out that safety is the main issue.
Vice-Chair Stoltze worried about children that have
handicaps and how the bill would impact them. Senator
French indicated that language on Page 2 addresses that
concern; the choice is actually left to the parents.
11:04:54 AM
Representative Gara concluded that the "education actually
happens when the person is pulled over, at which time they
are given a "fixable ticket. Senator French acknowledged
that was correct and added that the fine could be off-set
by purchasing a safety chair.
In response to Representative Gara, Ms. Biastock explained
that current State law clarifies that children four and
under need to be in an appropriate device. The bill adopts
the federal guidelines and adds the age group four to eight
for booster use or appropriate devices.
Representative Gara pointed out the letter of support from
Automobile Dealer's Association.
11:06:49 AM
Vice-Chair Stoltze recalled that in the 1980's, the peek-a-
boo program provided free child seats. He commented that
the best use for the funds is to provide free seats through
the Department of Transportation and Public Facilities.
11:08:04 AM
MARY SIROKY, SPECIAL ASSISTANT, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, explained that 50% of
the federal funds would be used for purchasing child
protection devices and the remainder dollars used for
educational purposes.
Vice-Chair Stoltze asked if the educational effort would be
weaned after the second year. Ms. Siroky did not know the
specifics of the federal requirement. Senator French
agreed the split between purchasing seats and education was
a fair use of funds.
11:09:06 AM
Co-Chair Chenault asked if the funding could be used to
enhance the current program. Ms. Siroky did not know the
amount currently allocated for education and seat belt use.
11:10:03 AM
PUBLIC TESTIMONY CLOSED
11:10:15 AM
Ms. Armstrong explained the zero note from the Department
of Transportation and Public Facilities, clarifying that
$194 thousand dollars had been included in HCS SB 221 (FIN)
allocation.
11:11:33 AM
Vice-Chair Stoltze MOVED to REPORT CS SB 218(FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SB 218(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new zero note by the House
Finance Committee for the Department of Transportation and
Public Facilities.
11:12:47 AM
CS FOR SENATE BILL NO. 120(FIN)
An Act relating to disclosure of certain information
from the records of the Department of Labor and
Workforce Development and limiting the use of the
disclosed information, and to the calculation and
payment of unemployment compensation benefits; and
providing for an effective date.
11:13:05 AM
Representative Hawker suggested that future concerns with
the legislation be addressed through the regulatory process
in upcoming sessions.
11:14:05 AM
Vice-Chair Stoltze MOVED to REPORT CS SB 120(FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SB 120(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Administration and fiscal note #2 by the
Department of Labor and Workforce Development.
11:14:53 AM
CS FOR SENATE BILL NO. 201(FIN)
An Act relating to the establishment and maintenance
of an Internet website providing public finance
information; and identifying the information to be
available on the Internet website.
11:15:06 AM
MICHELLE SYDEMAN, STAFF, SENATOR BILL WIELECHOWSKI,
explained the intent of SB 201, the Alaska Open Government
Act, to mandate creation of a free, searchable website that
provides Alaskans with easy access to detailed information
on State spending. She pointed out that such websites are
happening across the country. In 2006, President Bush
signed the Federal Funding Accountability and Transparency
Act. The Act calls for creation of a searchable website
for federal contracts and grants of more than $25 thousand
dollars. Ms. Sydeman reported that the legislation had
been introduced years ago by a bipartisan team of four U.S.
senators, including John McCain and Barak Obama.
She added, real accountability and good decision-making
requires an informed public with access to information on
government spending. The Governor endorses the bill. SB
201 places the requirement for free, publicly searchable
database in statute, so that all future governors show the
same commitment to transparency and accountability.
Ms. Sydeman maintained the bill is good public policy as it
provides guidance as to the type of information that a
public finance website should contain. The bill calls for
inclusion of information that will provide a context for
the lay person regarding daily spending expenditures. The
fiscal note is zero because it can be accomplished by using
the existing webmasters and finance staff. She urged
support for the bill.
11:18:44 AM
Representative Thomas referenced the title "public
finance"; he wondered if it could open-up the possibility
of public financing for elections. Ms. Sydeman had not
heard of anyone discussing or considering that possibility;
she added, Senator Wielechowski would not support it.
Representative Thomas worried that it could come forward as
an amendment on the House floor. Representative Gara
believed that any language such as that would not pass the
House floor.
Representative Hawker was not convinced that he should
support the bill. Crossing the line and forcing
disclosures often does not mesh with statewide regulations.
He pointed out that the State is being asked to create a
new type of information and accounting reporting system on
information given in isolation without context. He worried
that adopting the change would not be good; clarifying that
it becomes a "professional issue" for him. He proposed an
alternative, requesting that the Department determine a
better "cap stone" index for the State system currently
used.
11:23:27 AM
Ms. Sydeman advised that the Senate Finance Committee (SFC)
did determine a number of items that are clear for the
public to understand & determined what the public should
know from State accountants to help put the State spending
in context. Nothing has been duplicated in the proposed
system and there are no risks associated with the proposal.
Representative Hawker argued that once the integrity of the
document is violated by removing it out of context, the
document then no longer carries the authority or is part of
the audit.
Representative Gara advised that Sections 2 & 3, describe
the information that should be made available on the
website. He understood that information, the State
currently prepares. Ms. Sydeman said it is and could
automatically be transferred to the website through the new
accounting system. There would be no additional costs for
doing that.
11:26:28 AM
Representative Hawker clarified that the Administration has
already undertaken an effort in that direction without
making it a statutory mandate. When in statute, there is a
benchmark, which could be taken to Court. He maintained
that the proposed change would not be good for the State of
Alaska. He recommended a professional evaluation of the
language being proposed.
CHRIS NELSON, ALASKANS FOR TAX REFORM, ANCHORAGE, testified
via teleconference, spoke in favor of the bill. He
explained that it is part of an effort happening nationally
to provide greater public access to information. He noted
that he had researched legislative spending extensively and
that information is difficult to find. The legislation
will organize the information and make it accessible. He
commended the Legislature for its openness, but worried
about future legislatures. He urged the bill pass from
Committee.
11:31:09 AM
KIM GARNERO, DIRECTOR, DIVISION OF FINANCE, DEPARTMENT OF
ADMINISTRATION, DIRECTOR, added comments to address
Representative Hawker's concerns. She pointed out that
Senator Wielechowski's office had worked closely with the
Department to identify items within the financial report
that would be of interest to Alaskans and that they could
be lifted from a website without misleading the public.
She added that the information will provide some context
for the public.
Representative Gara pointed out that all the information is
definable and currently in print. He stated that a concern
regarding lawsuit filings was mute.
Representative Kelly referenced information provided by the
Department, which the Administration does not believe
should be necessary codified in statute. He asked if the
Administration supports the legislation. Ms. Sydeman
responded that the Governor has indicated to her
personally, she supports placing it in statute. Ms.
Garnero had not yet received that information to date.
AT EASE: 11:35:39 AM
RECONVENE: 11:37:26 AM
Representative Hawker MOVED to ADOPT Amendment 1. The
amendment was drafted to Page 1, Line 7, following SHORT
TITLE:
Delete "This Act may be known as the Alaska Open
Government Act and insert "This Act may be known
as the Alaska Clear and Transparent Open Access
to Alaskan State Government Financing for Dummies
Act."
Vice-Chair Stoltze OBJECTED for discussion purposes.
Representative Hawker offered the amendment because he
observed there are better ways to provide access to
existing data.
Vice-Chair Stoltze cautioned against using "dummies" in the
title. Representative Hawker suspected copyright violation
would prevail since it is a trademark name; he WITHDREW
Amendment 1.
11:41:09 AM
Co-Chair Meyer highlighted the zero note submitted by the
Department of Administration.
Representative Hawker disagreed with offering a zero note
when the Department is required to write a cross-referenced
data system. He did not believe that the proposed scope
could be accomplished with no further funding. Ms. Garnero
responded that the zero note was predicated on a
presentation using Microsoft Excel. She agreed that if
they moved into a different type technology, the note would
not be zero. She mentioned the Alaska Data Enterprise
Reporting System is currently being built to replace the
now used twenty-there year old system. The data warehouse
has made the Department able to generate the excel
spreadsheet.
Representative Hawker reiterated that the language proposed
in the bill does not take the State in the direction
referred to by the Department.
Representative Kelly worried if the process could drive
private business away from continuing business with the
State of Alaska because of the amount of information
required. He recommended adding a sunset date to track the
development.
Representative Gara interjected that Page 4 describes the
confidentiality statement and that nothing confidential
would be allowed on the website.
11:44:56 AM
Vice-Chair Stoltze MOVED to REPORT CSSB 201(FIN) out of
Committee with individual recommendations and with the
accompanying zero note.
Representative Hawker OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Nelson, Stoltze, Thomas, Crawford, Gara,
Joule, Meyer
OPPOSED: Hawker, Kelly
Representative Chenault and Representative Foster were not
present for the vote.
The MOTION FAILED (7-2).
CS SB 201(FIN) was REPORTED out of Committee with a "no
recommendation" and with zero note #1 by the Department of
Administration.
ADJOURNMENT
The meeting was adjourned at 11:47 A.M.
| Document Name | Date/Time | Subjects |
|---|