Legislature(1993 - 1994)

04/26/1993 04:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 26, 1993                                        
                            4:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 127, Side 2, #000 - end.                                       
  TAPE HFC 93 - 128, Side 1, #000 - #378.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 4:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Therriault     Representative Martin                          
  Representative Navarre        Representative Parnell                         
                                                                               
  Representative Hoffman was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Janice Adair, Assistant  Commissioner, Chief  Administrative                 
  Officer,  Legislative  Contact, Department  of Environmental                 
  Conservation; Cheryl  Frasca, Director,  Division of  Budget                 
  Review,  Office  of  Management and  Budget,  Office  of the                 
  Governor; Randy  Gillespie, Lobbyist, AT&T,  Juneau, Alaska;                 
  Ashley Reed,  Lobbyist, Alascom; Mary Lou  Madden, Assistant                 
  Director, Post Secondary Education, Department of Education.                 
                                                                               
  SUMMARY INFORMATION                                                          
  HB 65     An  Act  relating  to  the  improvement  of  state                 
            finances through reduction  of operating costs  of                 
            certain  state  agencies   and  establishment   of                 
            certain fees; and providing for an effective date.                 
                                                                               
            CS HB  65 (FIN) was reported out of Committee with                 
            "no  recommendation" and with  fiscal notes by the                 
            Department  of  Fish   and  Game,  Department   of                 
            Environmental Conservation,  Department of  Health                 
            and Social Services, Department of Administration,                 
            the  Alaska  Court  System,  Department of  Labor,                 
            Department  of  Natural  Resources, Department  of                 
            Public Safety and the Department of Revenue.                       
                                                                               
  HOUSE BILL 65                                                                
                                                                               
       "An Act relating  to the improvement of  state finances                 
                                                                               
                                1                                              
                                                                               
                                                                               
       through reduction of operating  costs of certain  state                 
       agencies  and   establishment  of  certain   fees;  and                 
       providing for an effective date."                                       
                                                                               
  Co-Chair Larson MOVED  that the work  draft, CS HB 65  (FIN)                 
  Committee.  There  being NO  OBJECTION, it  was so  ordered.                 
  Representative Therriault provided the Committee a sectional                 
  overview of the work draft.                                                  
                                                                               
  Representative Brown questioned deleting language in Section                 
  62,  regarding "hazardous  waste and  plans, approvals,  and                 
  permits for sewage systems".                                                 
                                                                               
  JANICE ADAIR, ASSISTANT  COMMISSIONER, CHIEF  ADMINISTRATIVE                 
  OFFICER,  LEGISLATIVE  CONTACT, DEPARTMENT  OF ENVIRONMENTAL                 
  CONSERVATION,  explained   the  deletion  was   a  technical                 
  amendment to language  added to sub-paragraph (a),  Page 18.                 
  The  hazardous  waste permits  have  been removed  since the                 
  Department does not  have the necessary  statutory authority                 
  to obtain approval for hazardous waste.                                      
                                                                               
  Representative Brown asked Section #65 repealed the outdated                 
  OPA reports.                                                                 
                                                                               
  CHERYL FRASCA,  DIRECTOR, DIVISION OF BUDGET  REVIEW, OFFICE                 
  OF MANAGEMENT  AND BUDGET,  noted Section  #65 contains  two                 
  repealers.  One  relates to  OPA and the  other repeals  the                 
  requirement from the Department of Administration to produce                 
  monthly fund report balances.                                                
                                                                               
  Co-Chair MacLean asked  why fees  were increased in  Section                 
  There are eight agencies to which the increase will apply.                   
                                                                               
  Co-Chair MacLean provided the  Committee with Amendment  #1.                 
  [Attachment #1].                                                             
                                                                               
  RANDY GILLESPIE, LOBBYIST, AT&T, JUNEAU, ALASKA, stated that                 
  AT&T has filed documents with the FCC indicating a desire to                 
  serve  telephone  service  in  the  State  of  Alaska  on  a                 
  competitive basis.  AT&T would object to the amendment as it                 
  extends the period of time from 90  days to 180 days for the                 
  Commission  to decide if an applicant  is capable to provide                 
  adequate telephone  service  in the  State  of Alaska.    He                 
  thought those findings  for AT&T would  take much less  time                 
  than that recommended in the amendment.                                      
                                                                               
  Mr. Gillespie pointed  out that the  amendment has not  been                 
  considered  by  the APUC  nor has  it  been endorsed  by any                 
  consumer  groups.   No  related  utilities have  endorsed or                 
  requested the amendment,  nor has  it received any  previous                 
                                                                               
                                2                                              
                                                                               
                                                                               
  public hearing.  He felt it was  an unfair attempt to change                 
  the competitive market.   Mr. Gillespie urged  the Committee                 
  not to support the amendment.                                                
                                                                               
  Representative  Navarre pointed  out that  Amendment #1  had                 
  failed  at  the  subcommittee  level  when discussed.    Mr.                 
  Gillespie  explained   the  amendment   was  introduced   in                 
  subcommittee although there  was no  testimony taken and  it                 
  did fail adoption.                                                           
                                                                               
  Ms. Frasca  elaborated, the Governor  opposes the amendment.                 
  She stated the amendment creates new concern  which have not                 
  been discussed and could jeopardize the legislation.                         
                                                                               
  Representative Brown noted  for the  record conflict as  her                 
  husband is one of the APUC's Commissioners.  She thought the                 
  amendment was  unnecessary and  that the  statute should  be                 
  left alone.                                                                  
                                                                               
  ASHLEY  REED, LOBBYIST, ALASCOM, JUNEAU, ALASKA, stated that                 
  Alascom supports the amendment.  Previous to the Alascom and                 
  GCI wars, the time  frame was 180 days.  He  added, GCI also                 
  supports the amendment.  At this time, AT&T has not filed an                 
  application before the APUC for  in-trust State service.  He                 
  pointed  out  that AT&T  has  filed for  elimination  of the                 
  joint-services agreement.  The agreement solicits funds from                 
  the lower  forty-eight subsidizing   fund  rates in  Alaska.                 
  These funds have made it possible to buy universal services.                 
                                                                               
                                                                               
  Representative Parnell questioned the historical perspective                 
  of the  change from 180  days to 90  days.  Mr.  Reed stated                 
  there  had  been  a  long running  battle  between  GCI  and                 
  Alascom, and GCI had been prevented from entering the market                 
  because of  the  legislative  fights.   The  year  when  the                 
  competition bill passed,  an agreement was made  between the                 
  companies.  Representative Parnell asked that information be                 
  made  available  addressing  the long  term  effects  of the                 
  increased time.                                                              
                                                                               
  (Tape Change, HFC 93-128, Side 1).                                           
                                                                               
  Representative  Grussendorf  spoke  against   the  amendment                 
  suggesting  the  inappropriate time  in  which it  was being                 
  presented to the Committee.                                                  
                                                                               
  Mr. Gillespie commented that the  process has been confused.                 
  AT&T has submitted  a proposal  which includes reducing  the                 
  long distance rates so that Alaska will be made part of West                 
  coast treatment  in long distance phone calls.  The proposal                 
  would benefit rural Alaska.  He  emphasized that if APUC had                 
  discussed the proposed amendment,  AT&T would then cooperate                 
                                                                               
                                3                                              
                                                                               
                                                                               
  with that decision.                                                          
                                                                               
  Co-Chair Larson MOVED Amendment #1 noting it would require a                 
  title change. Representative Brown OBJECTED.                                 
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Foster,    Martin,   Navarre,    Larson,                 
                      MacLean.                                                 
                                                                               
       OPPOSED:       Therriault, Brown,  Grussendorf, Hanley,                 
                      Parnell.                                                 
                                                                               
  Representative Hoffman was not present for the vote.                         
                                                                               
  The MOTION FAILED, (5-5).                                                    
                                                                               
  MARY   LOU  MADDEN,   ASSISTANT  DIRECTOR,   POST  SECONDARY                 
  EDUCATION,   DEPARTMENT   OF    EDUCATION,   responded    to                 
  Representative  Therriault's  question regarding  the Family                 
  Education Loan Fund.  That fund is charging an insurance fee                 
  against  write offs  for death and  disability.   The Family                 
  Education Loan has been in existence  for three years and to                 
  date there  have been no  write offs.  The  guarantor of the                 
  loan is also insured.                                                        
                                                                               
  Representative Foster MOVED to report CS  HB 65 (FIN) out of                 
  Committee   with   individual   recommendations    and   the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  CS  HB  65 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Fish and Game, the Department of Environmental Conservation,                 
  the Department of Health and Social Services, the Department                 
  of Administration, the Alaska  Court System, the  Department                 
  of   Labor,  the  Department   of  Natural   Resources,  the                 
  Department of Public Safety and the Department of Revenue.                   
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 5:45 P.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 26, 1993                                        
                            4:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 127, Side 2, #000 - end.                                       
  TAPE HFC 93 - 128, Side 1, #000 - #378.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
                                4                                              
                                                                               
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 4:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Therriault     Representative Martin                          
  Representative Navarre        Representative Parnell                         
                                                                               
  Representative Hoffman was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Janice Adair, Assistant  Commissioner, Chief  Administrative                 
  Officer,  Legislative  Contact, Department  of Environmental                 
  Conservation; Cheryl  Frasca, Director,  Division of  Budget                 
  Review,  Office  of  Management and  Budget,  Office  of the                 
  Governor; Randy  Gillespie, Lobbyist, AT&T,  Juneau, Alaska;                 
  Ashley Reed, Lobbyist, Alascom;  Mary Lou Madden,  Assistant                 
  Director, Post Secondary Education, Department of Education.                 
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 65     An  Act  relating  to  the  improvement  of  state                 
            finances through reduction  of operating costs  of                 
            certain  state  agencies   and  establishment   of                 
            certain fees; and providing for an effective date.                 
                                                                               
            CS HB  65 (FIN) was reported out of Committee with                 
            "no  recommendation" and with  fiscal notes by the                 
            Department  of  Fish   and  Game,  Department   of                 
            Environmental Conservation,  Department of  Health                 
            and Social Services, Department of Administration,                 
            the  Alaska  Court  System,  Department of  Labor,                 
            Department  of  Natural  Resources, Department  of                 
            Public Safety and the Department of Revenue.                       
                                                                               
  HOUSE BILL 65                                                                
                                                                               
       "An Act relating  to the improvement of  state finances                 
       through  reduction of operating  costs of certain state                 
       agencies  and   establishment  of  certain   fees;  and                 
       providing for an effective date."                                       
                                                                               
  Co-Chair Larson MOVED  that the work  draft, CS HB 65  (FIN)                 
  Committee.   There  being NO  OBJECTION, it was  so ordered.                 
  Representative Therriault provided the Committee a sectional                 
  overview of the work draft.                                                  
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative Brown questioned deleting language in Section                 
  62,  regarding "hazardous  waste and  plans, approvals,  and                 
  permits for sewage systems".                                                 
                                                                               
  JANICE ADAIR, ASSISTANT  COMMISSIONER, CHIEF  ADMINISTRATIVE                 
  OFFICER,  LEGISLATIVE  CONTACT, DEPARTMENT  OF ENVIRONMENTAL                 
  CONSERVATION,  explained   the  deletion  was   a  technical                 
  amendment to language  added to sub-paragraph (a),  Page 18.                 
  The  hazardous  waste permits  have  been removed  since the                 
  Department does  not have the  necessary statutory authority                 
  to obtain approval for hazardous waste.                                      
                                                                               
  Representative Brown asked Section #65 repealed the outdated                 
  OPA reports.                                                                 
                                                                               
  CHERYL FRASCA,  DIRECTOR, DIVISION OF BUDGET  REVIEW, OFFICE                 
  OF MANAGEMENT  AND BUDGET,  noted Section  #65 contains  two                 
  repealers.  One  relates to  OPA and the  other repeals  the                 
  requirement from the Department of Administration to produce                 
  monthly fund report balances.                                                
                                                                               
  Co-Chair MacLean asked  why fees  were increased in  Section                 
  There are eight agencies to which the increase will apply.                   
                                                                               
  Co-Chair MacLean provided  the Committee with  Amendment #1.                 
  [Attachment #1].                                                             
                                                                               
  RANDY GILLESPIE, LOBBYIST, AT&T, JUNEAU, ALASKA, stated that                 
  AT&T has filed documents with the FCC indicating a desire to                 
  serve  telephone  service  in  the  State  of  Alaska  on  a                 
  competitive basis.  AT&T would object to the amendment as it                 
  extends the period of time from 90  days to 180 days for the                 
  Commission  to decide if an applicant  is capable to provide                 
  adequate telephone  service  in the  State  of Alaska.    He                 
  thought those findings  for AT&T would  take much less  time                 
  than that recommended in the amendment.                                      
                                                                               
  Mr. Gillespie pointed  out that the  amendment has not  been                 
  considered  by  the APUC  nor has  it  been endorsed  by any                 
  consumer  groups.   No  related  utilities have  endorsed or                 
  requested the amendment,  nor has  it received any  previous                 
  public hearing.  He felt it  was an unfair attempt to change                 
  the competitive market.   Mr. Gillespie urged  the Committee                 
  not to support the amendment.                                                
                                                                               
  Representative Navarre  pointed out  that  Amendment #1  had                 
  failed  at  the  subcommittee  level  when discussed.    Mr.                 
  Gillespie  explained   the  amendment   was  introduced   in                 
  subcommittee although there  was no  testimony taken and  it                 
  did fail adoption.                                                           
                                                                               
                                6                                              
                                                                               
                                                                               
  Ms.  Frasca elaborated, the  Governor opposes the amendment.                 
  She stated the amendment creates new concern  which have not                 
  been discussed and could jeopardize the legislation.                         
                                                                               
  Representative Brown noted  for the  record conflict as  her                 
  husband is one of the APUC's Commissioners.  She thought the                 
  amendment was  unnecessary and  that the  statute should  be                 
  left alone.                                                                  
                                                                               
  ASHLEY REED, LOBBYIST, ALASCOM, JUNEAU, ALASKA, stated  that                 
  Alascom supports the amendment.  Previous to the Alascom and                 
  GCI wars, the time  frame was 180 days.  He  added, GCI also                 
  supports the amendment.  At this time, AT&T has not filed an                 
  application before the APUC for  in-trust State service.  He                 
  pointed  out  that AT&T  has  filed for  elimination  of the                 
  joint-services agreement.  The agreement solicits funds from                 
  the lower  forty-eight subsidizing   fund  rates in  Alaska.                 
  These funds have made it possible to buy universal services.                 
                                                                               
                                                                               
  Representative Parnell questioned the historical perspective                 
  of the  change from 180  days to 90  days.  Mr.  Reed stated                 
  there  had  been  a  long running  battle  between  GCI  and                 
  Alascom, and GCI had been prevented from entering the market                 
  because of  the  legislative  fights.   The  year  when  the                 
  competition bill passed,  an agreement was made  between the                 
  companies.  Representative Parnell asked that information be                 
  made  available  addressing  the long  term  effects  of the                 
  increased time.                                                              
                                                                               
  (Tape Change, HFC 93-128, Side 1).                                           
                                                                               
  Representative  Grussendorf  spoke  against   the  amendment                 
  suggesting  the  inappropriate time  in  which it  was being                 
  presented to the Committee.                                                  
                                                                               
  Mr. Gillespie commented that the  process has been confused.                 
  AT&T has submitted  a proposal  which includes reducing  the                 
  long distance rates so that Alaska will be made part of West                 
  coast treatment  in long distance phone calls.  The proposal                 
  would benefit rural Alaska.  He  emphasized that if APUC had                 
  discussed the  proposed amendment, AT&T would then cooperate                 
  with that decision.                                                          
                                                                               
  Co-Chair Larson MOVED Amendment #1 noting it would require a                 
  title change. Representative Brown OBJECTED.                                 
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Foster,    Martin,   Navarre,    Larson,                 
                      MacLean.                                                 
                                                                               
                                7                                              
                                                                               
                                                                               
       OPPOSED:       Therriault, Brown,  Grussendorf, Hanley,                 
                      Parnell.                                                 
                                                                               
  Representative Hoffman was not present for the vote.                         
                                                                               
  The MOTION FAILED, (5-5).                                                    
                                                                               
  MARY   LOU  MADDEN,   ASSISTANT  DIRECTOR,   POST  SECONDARY                 
  EDUCATION,   DEPARTMENT   OF    EDUCATION,   responded    to                 
  Representative  Therriault's  question regarding  the Family                 
  Education Loan Fund.  That fund is charging an insurance fee                 
  against  write offs  for death and  disability.   The Family                 
  Education Loan has been in existence  for three years and to                 
  date there  have been no write  offs.  The  guarantor of the                 
  loan is also insured.                                                        
                                                                               
  Representative Foster MOVED to report CS  HB 65 (FIN) out of                 
  Committee   with   individual   recommendations    and   the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  CS  HB  65 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Fish and Game, the Department of Environmental Conservation,                 
  the Department of Health and Social Services, the Department                 
  of Administration, the  Alaska Court System,  the Department                 
  of  Labor,  the   Department  of   Natural  Resources,   the                 
  Department of Public Safety and the Department of Revenue.                   
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 5:45 P.M.                                           
                                                                               
                                                                               
                                8                                              

Document Name Date/Time Subjects