Legislature(2013 - 2014)HOUSE FINANCE 519
03/19/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB87 | |
| HB19 | |
| HB153 | |
| HB94 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 19 | TELECONFERENCED | |
| + | HB 153 | TELECONFERENCED | |
| + | HB 109 | TELECONFERENCED | |
| + | HB 94 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 87 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 19, 2013
1:32 p.m.
1:32:53 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:32 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Mark Neuman, Vice-Chair
Representative Mia Costello
Representative Bryce Edgmon
Representative Les Gara
Representative Lindsey Holmes
Representative Cathy Munoz
Representative Steve Thompson
Representative Tammie Wilson
MEMBERS ABSENT
Representative David Guttenberg
ALSO PRESENT
Representative Pete Higgins; Marcy Herman, Special
Assistant, Department of Education and Early Development;
Ms. Elizabeth Sweeney Nudelman, Director, School Finances
and Facilities, Department of Education and Early
Development; Darrell Breese, Staff, Representative Bill
Stoltze; Amy Erickson, Division of Motor Vehicles,
Department of Administration; Representative Bob Lynn;
Representative Doug Isaacson, Sponsor.
PRESENT VIA TELECONFERENCE
Kirk Wickersham, Anchorage; Scott Thomas, Department of
Transportation and Public Facilities; Buzz Otis, Director
of North Pole Economic Development Corporation.
SUMMARY
HB 19 PERM. MOT. VEH. REGISTRATION/TRAILERS
CSHB 19(TRA) was REPORTED out of committee with
"no recommendation" and with one new fiscal note
from the Department of Administration.
HB 87 EXTEND SPECIAL EDUCATION SERVICE AGENCY
CSHB 87(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published fiscal impact note: FN1 (EED).
HB 94 CON AND NELLIE MILLER BRIDGES
HB 94 was REPORTED out of committee with a "do
pass" recommendation and with one previously
published fiscal note: FN1 (DOT).
CSHB 153 NAMING WALTER J. HICKEL EXPRESSWAY
CSHB 153(TRA) was REPORTED out of committee with
a "do pass" recommendation and with one
previously published fiscal note: FN1 (DOT).
1:33:06 PM
HOUSE BILL NO. 87
"An Act extending the special education service
agency; and providing for an effective date."
1:33:36 PM
Co-Chair Stoltze stated that committee concerns were
addressed for HB 87 regarding the Special Education Service
Agency (SESA).
Representative Wilson MOVED to ADOPT the proposed committee
substitute for HB 87, Work Draft, 28-LS0392\O, Mischel,
3/18/13,(FIN). Co-Chair Stoltze OBJECTED for discussion.
Representative Wilson explained that the Department of
Education and Early Development (DEED) would now have
oversight of SESA versus the former Governor's Council of
Disabilities and Special Education. The findings and
recommendations on the audit report were considered when
making the decision. She stressed "whereby state and
federal law it is the requirement of the Department of
Education and Early Development to make sure that the
correct services were brought to our special education
students." She noted that a special education director from
the department met with SESA on regular intervals and the
change will allow the legislature to better monitor the
organization and its needs.
REPRESENTATIVE PETE HIGGINS, spoke about the bill. He
appreciated the committee tackling the issue of program
oversight.
Co-Chair Stoltze WITHDREW his OBJECTION..
1:36:12 PM
Representative Kawasaki MOVED a conceptual amendment.
Representative Wilson OBJECTED.
TO: CSHB 87 (FIN) Work Draft 28-LS0392\O
Page 1, line 11:
Delete "$15.75"
Insert "$21.50 [$15.75]"
Page 2, following line 6:
Insert a new bill section to read:
"*Sec. 2. AS 1430.650 is amended by adding a new
subsection to read:
(b) The funding allocated under (a) of this section
shall be adjusted annually by multiplying the amount
allocated in the immediately preceding fiscal year by
0.5 percent."
Representative Kawasaki explained the amendment. He noted
that recent discussions with Legislative Budget and Audit
(LB&A) and DEED led to information about SESA's funding.
The funding had not kept up with inflation or Base Student
Allocation (BSA) increases. He noted that SESA was an
agency that was flat-funded for many years while the total
number of program participants increased substantially. The
$21.50 would allow the program to keep up with inflation.
Representative Wilson responded that the $15.75 was a
minimum requirement. She noted that the education
subcommittee did not discuss the issue because the
program's oversight was through the Department of Health
and Social Services (DHSS). The audit stated that the "plan
did not have the number of students and school district
personnel receiving services and all funding sources." She
noted that the education subcommittee would detail the fund
sources during the interim with the oversight located in
DEED.
Co-Chair Stoltze spoke against the amendment because he was
philosophically opposed to indexing the appropriate
channels when working through the budget process.
Representative Gara pointed out the cost per special
education student in Anchorage or Fairbanks of $50
thousand. He wondered what rural school districts received
to educate special education students with severe
handicaps.
1:39:03 PM
Representative Higgins replied that the current funding was
adequate, but the organization would prefer not to be flat
funded. The SESA board understood that the state was
operating under budget constraints. The goal of the
legislation was to extend the sunset utilizing a
subcommittee process to address the funding issue.
Representative Gara clarified his question. He wondered if
rural areas received funding for special education services
in addition to SESA.
Representative Higgins did not know the answer to the
question.
1:40:42 PM
Representative Wilson responded that the $15 was based on
the average daily attendance and the numbers of students in
the state.
Representative Kawasaki reiterated that the SESA baseline
budget was established 15 years ago. He noted that
inflation alone decreased the value by over 36 percent. The
sum was small and affected the most vulnerable people in
rural Alaska who might not have the assets available within
their own school districts. He pointed out that the joint
legislative education task force recommendations advocated
for an increase for the intensive needs resources to
schools. He noted that not every intensive-needs student
qualified for SESA, but he believed that the money was
wisely spent and impacted those kids who needed the most
help.
Representative Wilson maintained her OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Gara, Kawasaki
OPPOSED: Thompson, Costello, Edgmon, Neuman, Wilson,
Holmes, Munoz, Stoltze and Austerman
The conceptual amendment failed (2/9).
1:43:39 PM
Representative Costello detailed one fiscal note for CSHB
87 showing an impact of $2,035,500 for fiscal year 2014 for
every fiscal year following.
Co-Chair Stoltze asked a department member if fiscal note
was correct.
MARCY HERMAN, SPECIAL ASSISTANT, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT, responded yes.
Representative Wilson MOVED to REPORT CSHB 87 (FIN) out of
committee with individual recommendations and the
accompanying fiscal note.
Representative Kawasaki OBJECTED in favor of hearing from
DEED about the implication of the legislation and the
change in oversight from the council to the department.
MS. ELIZABETH SWEENEY NUDELMAN, DIRECTOR, SCHOOL FINANCES
AND FACILITIES, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT, stated that the costs shown in the fiscal note
would remain accurate if SESA continued to operate.
Representative Kawasaki wondered how the substantive change
in oversight would affect the program because DEED would
take over administration and governance of the program.
Ms. Nudleman replied that the SESA organization was run by
a board of directors and the board, with the executive
director would continue to operate the organization. She
stated that the fiscal note would carry the same costs it
had in prior years. She referred to the sponsor for
questions regarding the CS.
Co-Chair Stoltze wished that Representative Kawasaki had
followed protocol by raising the point when the CS was
discussed.
Representative Kawasaki asked if SESA's nonprofit status
impacted the department's ability to regulate the
organization.
Ms. Nudelman responded that the legislation consolidated by
eliminating oversight from the Governor's Council on
Disabilities and Special Education. She was unaware of
further changes. The nonprofit was administered by a board.
1:50:27 PM
Representative Gara stated that he did not understand the
decision to consolidate the agencies governing SESA.
Co-Chair Stoltze explained that the audit report
recommendations were considered when making the decision.
Representative Wilson clarified that the education
subcommittee discussed the matter at great length. The
council did not have the authority, if the money was not
spent correctly, to do anything about it. With new and
specific laws regulating special education, the decision to
give DEED full oversight was prudent. She stated that the
council would continue to review programs. The only change
was providing authority to the department to ensure that
the students got the help they need and money was spent
correctly. The authority was also provided to DEED to bring
the item forth in their budget for future program needs.
Representative Gara appreciated the explanation.
Representative Kawasaki WITHDREW his OBJECTION
CSHB 87(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one previously published fiscal
impact note: FN1 (EED).
1:54:59 PM
AT EASE
1:55:21 PM
RECONVENED
HOUSE BILL NO. 19
"An Act relating to permanent motor vehicle
registration; relating to the registration fee for
noncommercial trailers and to the motor vehicle tax
for trailers; and providing for an effective date."
1:55:36 PM
Co-Chair Stoltze noted that he had the Department of
Administration (DOA) online. He reminded that public
testimony had been taken on the bill in a prior finance
meeting. He imagined that most people appreciated the
notion of permanent registration. He anticipated questions
about the fiscal note. He asked staff to provide a brief
overview of the legislation.
DARRELL BREESE, STAFF, REPRESENTATIVE BILL STOLTZE,
explained that HB 19 allowed for permanent registration,
offered through the Division of Motor Vehicles (DMV) for
non-commercial motor vehicles older than eight years and
non-commercial trailers older than eight years. The
permanent registration would cost $25 in addition to the
regular biannual registration. The owner of the vehicle or
trailer had a choice to pay biannual registration fees as
established in statute or to select the permanent vehicle
or trailer registration. He pointed out that the permanent
registration for vehicles or trailers was nontransferable.
If a vehicle or trailer was sold, the new owner must
register with DMV.
Co-Chair Stoltze pointed out the "opt-out" provision for
the municipalities.
Mr. Breeze added that the bill offered municipalities a
provision to establish their own motor vehicle registration
tax rate for vehicles that were permanently registered.
Currently municipalities had the option based on the age of
the vehicles, but HB 19 allowed municipalities to adopt, by
ordinance passed by city council or a local assembly.
Co-Chair Stoltze added that the municipalities could
collect the portion of the registration fee that the state
provided to local governments. He wished to provide an
option for the public to avoid government fees. He stated
that he himself had an older boat trailer and pickup truck
and was impacted by the legislation. He wished to detail
the fiscal note.
AMY ERICKSON, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF
ADMINISTRATION, was available to answer questions.
2:00:20 PM
Representative Kawasaki asked why the DMV collected on the
behalf of some municipalities. Ms. Erickson did not have
the history.
Co-Chair Stoltze commented on the assumptions stated on the
fiscal note. He noted that the department projected the
fiscal impact or revenue loss based on predictions
regarding choice of permanent registration. He added that
the permanent registration might not benefit those people
who chose to leave Alaska to relocate to another state or
country.
2:02:40 PM
Representative Gara asked to combine his legislation
related to permanent licensing registration for hunting
and fishing.
Co-Chair Stoltze answered that he had concerns about the
fish and game fund and the effect that a combined act of
legislation would have, although he was amenable to the
concept.
Representative Gara stated that his bill, HB 157, was
written to avoid any impact on the fish and game fund.
2:03:48 PM
Vice-Chair Neuman expressed concern about two-year
registration for DMV, which was implemented to help reduce
division costs. Since DMV brought in more money than they
needed, he suggested legislation to reintroduce single-year
registration.
Co-Chair Stoltze stated that the department was unwilling
to provide information regarding the fiscal impact of a
return to a single-year registration.
Representative Wilson asked about the loss of revenue shown
in the fiscal note. She asked if the division would
continue to operate with a surplus if HB 19 were enacted.
Ms. Erickson replied yes.
Co-Chair Stoltze pointed out the short-term positive
earnings in the division's near future, as documented in
the fiscal note. He asked to know the exact short-term
impact on the department.
Ms. Erickson replied that the department anticipated a
surplus greater than $6,000,000 in 2014 and approximately
$7,000,500 in 2015. The calculations were based on the
number of vehicles. The department estimated that 478,000
motor vehicles and 115,000 trailers were eligible for
permanent registration.
2:06:05 PM
Representative Gara asked if the projection became negative
over time.
Ms. Erickson responded that most vehicles registered
biannually would no longer bring revenue. The increase of
$25 for the permanent registration led to the projected
surplus, but after 2015 the revenues were no longer
available to the division.
2:06:50 PM
Representative Gara asked for an estimate of annual loss to
the division or communities.
Ms. Erickson stated that the revenue loss impacted the
state rather than DMV. She clarified that once vehicles
were permanently registered, the revenue loss would
compound.
Co-Chair Stoltze clarified that the projections were merely
speculations.
2:07:34 PM
Vice-Chair Neuman questioned the assumption of the fiscal
note. He supposed that some people might learn about the
option and choose to register a vehicle that was otherwise
ignored, leading to further revenue for the state.
Co-Chair Stoltze agreed that speculations were merely that.
Representative Munoz asked about the percentage of the
permanent fee that was to be shared with communities. She
asked if the formula would remain consistent.
Mr. Breese responded that the permanent registration fee
went directly to DMV and thus the state. The cities and
municipalities that had motor vehicle registration tax were
those that were passed and approved by each separate
community. The permanent registration fee would be
appropriated as the legislature chose.
Co-Chair Stolze agreed and clarified that the legislature
appropriated funds through the constitutional appropriation
process.
Representative Munoz asked the estimated savings to the
individual for the average life of a car.
Mr. Breese stated that the savings was difficult to
estimate. He noted that the average age of vehicles in the
state was 13 years old. Five years of permanent
registration was calculated in an estimate making the
savings difficult to discern.
Co-Chair Stoltze opined that government gets its tax out of
the vehicle at some point.
2:11:06 PM
AT EASE
2:13:22 PM
RECONVENED
Representative Kawasaki MOVED Amendment 1 to be written
properly for the floor.
Page 1, line 2, following "trailers;":
Insert "providing that permanent motor vehicle
registration may not be considered when determining
the eligibility of an individual for a permanent fund
dividend;"
Page 5, following line 2:
Insert a new bill section to read:
"* Sec. 8. AS 43.23.015(a) is amended to read:
(a) The commissioner shall adopt regulations under
AS 44.62 (Administrative Procedures Act) [THE
ADMINISTRATIVE PROCEDURE ACT (AS 44.62)] for
determining the eligibility of individuals for
permanent fund dividends. The commissioner may require
an individual to provide proof of eligibility, and the
commissioner may use other information available from
other state departments or agencies to determine the
eligibility of an individual. The commissioner shall
consider all relevant circumstances in determining the
eligibility of an individual. However, the
commissioner may not consider the issuance of a
permanent motor vehicle registration under
AS 28.10.155 as a factor in determining the
eligibility of an individual, and the residency of an
individual's spouse may not be the principal factor
relied on [UPON] by the commissioner in determining
the residency of the individual."
Co-Chair Stoltze OBJECTED for discussion.
Representative Kawasaki discussed policy regarding
qualification for the Permanent Fund Dividend (PFD). He
stated that establishing residency for the PFD used proof
of home ownership, employment records, school records,
voter registration, motor vehicle registration records and
licenses for items or activities such as hunting and
fishing. He wanted to ensure that the bill was not used
exclusively to determine or establish residency. He wanted
to ensure that the person did have a permanent vehicle
registration. He planned to amend his amendment in the near
future to allow the registration to be used for eligibility
for the PFD.
2:14:46 PM
Representative Wilson pointed out that a vehicle
registration was considered proof of Alaskan residence in
the PFD application process.
Representative Gara explained that some people applied
dishonestly for the PFD. The commissioner utilized a
vehicle registration when determining residency, but with
HB 19, a person might pay $25 one time and continue to use
the documentation to prove that they were eligible for a
PFD.
Co-Chair Stoltze countered that a negative trigger often
provided a red flag.
Representative Kawasaki WITHDREW his amendment.
Representative Costello detailed the fiscal note. She noted
the change in revenues for FY 14 - FY 19, which illustrated
a fiscal impact of $100,100 for FY 14 for database
upgrades. The fiscal note also illustrated changes in state
revenues for FY 14 as an increase of $5,346,000, in FY 15
an increase of $5,982,000, FY 16 a decrease of $17,836,000,
FY 17 a decrease of $20,128,000, FY 18 a decrease of
$20,128,000 and FY 19 projected a decrease of $22,420,000.
Co-Chair Stoltze clarified that the fiscal note projections
were purely speculative.
2:19:03 PM
Vice-Chair Neuman MOVED to REPORT CSHB 19(TRA) out of
committee with individual recommendations and the
accompanying fiscal note.
Representative Kawasaki OBJECTED
Representative Kawasaki noted that the bill packet
contained collections for communities with a motor vehicle
registration tax. He pointed out that some communities
would feel a significant impact from the revenue losses. He
WITHDREW his OBJECTION.
CSHB 19 (TRA) was REPORTED out of committee with "no
recommendation" and with one new fiscal note from the
Department of Administration.
2:20:35 PM
AT EASE
2:23:03 PM
RECONVENED
HOUSE BILL NO. 153
"An Act designating Minnesota Drive and a portion of
O'Malley Road in Anchorage the Walter J. Hickel
Expressway."
2:23:11 PM
REPRESENTATIVE BOB LYNN, explained that HB 153 would rename
a portion of Minnesota Drive in Anchorage as the Walter J.
Hickel Parkway. He provided a brief history about Alaska's
first governor. He stated that Governor Hickel pushed hard
to open Prudhoe Bay for oil development and oversaw the
permitting process for the Trans-Alaskan pipeline.
2:24:42 PM
Representative Gara stated that he would like to co-sponsor
the bill. Representative Lynn stated that Representative
Gara was welcome to co-sponsor the bill.
Representative Kawasaki asked why the Minnesota Drive
portion of the highway was selected.
Representative Lynn responded that the portion of Minnesota
Drive was well-traveled thoroughfare in Anchorage deeming
it the most appropriate highway for the name.
Representative Holmes pointed out that the proposed highway
ran close to Governor Hickel's house and hotel.
Representative Kawasaki asked about the Hickel family's
opinion about the proposed plan. Representative Lynn
replied that Ermalee Hickel approved of the idea.
Representative Kawasaki asked if the designation was
honorary or if postal services be affected.
Representative Lynn replied that the plan included two
large signs. The street addresses would remain the same to
lessen the inconvenience.
2:27:49 PM
KIRK WICKERSHAM, SELF, ANCHORAGE (via teleconference),
testified in support of the legislation. He suggested the
idea of renaming the Minnesota bypass to Representative
Lynn. He pointed out that the Minnesota bypass was named
because the street was widened and extended, which was a
random decision in his opinion. He encouraged the
elimination of the word Minnesota from the name of the
expressway. A combination of Minnesota and Governor Hickel
was proposed in a previous bill.
2:30:46 PM
SCOTT THOMAS, CENTRAL REGION TRAFFIC ENGINEER, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES (via
teleconference), was available for questions.
Vice-Chair Neuman CLOSED public testimony.
Representative Costello discussed the two fiscal notes. The
first fiscal note was a zero note from Department of
Transportation and Public Facilities. The second note had a
fiscal impact of $15 thousand from Department of
Transportation and Public Facilities, which would pay for
the cost of two signs.
Vice-Chair Neuman noted that the second fiscal note was
forthcoming.
Representative Kawasaki remarked that he lived on Glacier
Avenue while in Juneau. Apparently Glacier Avenue was known
previously as Glacier Highway and Google maps included both
names when searched.
Representative Thompson MOVED to REPORT CSHB 153(TRA) out
of committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 153(TRA) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal note: FN1 (DOT).
2:33:13 PM
AT EASE
2:34:25 PM
RECONVENED
HOUSE BILL NO. 94
"An Act naming the northbound Chena Flood Channel
Crossing Bridge the Nellie Miller Bridge and naming
the southbound Chena Flood Channel Crossing Bridge the
Con Miller Bridge."
2:34:25 PM
REPRESENTATIVE DOUG ISAACSON, SPONSOR, introduced the
legislation affecting two bridges that spanned the Chena
flood control channel. The proposed plan was to name the
bridge for two remarkable Alaskans, Con and Nellie Miller.
He stated that Con and Nellie Miller were early settlers in
the city of North Pole who founded the business the Santa
Claus House and demonstrated public service throughout
their lives. Con Miller was the longest serving mayor of
North Pole dedicating 19 years of leadership. He mentioned
their son Terry Miller who served as a former Lieutenant
Governor, a North Pole city councilman, a borough
assemblyman and as an Alaskan legislator in both the House
and the Senate. Mike Miller, the other son of Con and
Nellie also served in the house and the senate for 18
years.
Representative Gara wondered if the legislature might
choose an esteemed democrat for such honors.
BUZZ OTIS, DIRECTOR OF NORTH POLE ECONOMIC DEVELOPMENT
CORPORATION (via teleconference), testified in support of
the Millers and thought that the tribute was notable.
2:39:00 PM
Co-Chair Stoltze CLOSED PUBLIC TESTIMONY.
Representative Costello addressed the fiscal note from
Department of Transportation and Public Facilities for
$6,900 for the creation of two signs.
Representative Wilson MOVED to REPORT HB 94 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 94 was REPORTED out of committee with a "do pass"
recommendation and with one previously published fiscal
note: FN1 (DOT).
ADJOURNMENT
2:43:00 PM
The meeting was adjourned at 2:43 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB153 Support Documents - Wickersham Letter.PDF |
HFIN 3/19/2013 1:30:00 PM |
HB 153 |
| HB153 Sponsor Statement.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 153 |
| HB153 Hickel Citation.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 153 |
| HB153 Google Map.pdf |
HFIN 3/19/2013 1:30:00 PM STRA 4/2/2013 1:30:00 PM |
HB 153 |
| HB153 Ak Republican Party Resolution.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 153 |
| Marshall letter of support.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 94 |
| Con and Nellie Miller Bridge Sponsor Statement.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 94 |
| HB 87 CS FIN WORKDRAFT O Version.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 87 |
| HB 87 SESA statute language opinion LAW DEED.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 87 |
| HB 87 Kawasaki Amendment to CS-O version.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 87 |
| HB 19 Amendment Kawasaki.pdf |
HFIN 3/19/2013 1:30:00 PM |
HB 19 |