Legislature(1993 - 1994)

02/02/1994 01:35 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                        February 2, 1994                                       
                            1:35 p.m.                                          
                                                                               
  TAPE HFC 94-22, Side 1, #000 - end.                                          
  TAPE HFC 94-22, Side 2, #000 - end.                                          
  TAPE HFC 94-23, Side 1, #000 - 287.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:35 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Randy Welker, Legislative  Auditor; Nancy Slagle,  Director,                 
  Division  of  Budget Review,  Office  of the  Management and                 
  Budget, Office  of  the  Governor;  Jerry  Luckhaupt,  Legal                 
  Counsel,  Legislative  Affairs Agency;  Joe  Ambrose, Staff,                 
  Senator Robin Taylor.                                                        
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HJR 43    Proposing an amendment to  the Constitution of the                 
            State of Alaska relating to penal administration.                  
                                                                               
            CS HJR 43 (FIN) was reported out of Committee with                 
            a  "do  pass"  recommendation  and  with a  fiscal                 
            impact note by  the Office of the  Governor, dated                 
            1/13/95; and  with two  zero fiscal  notes by  the                 
            Department of Public Safety  and the Department of                 
            Corrections, dated 1/13/94.                                        
                                                                               
  HB 372    "An Act  relating to  the four  dam pool  transfer                 
            fund."                                                             
                                                                               
            HB 372 was  reported out of  Committee with a  "do                 
            pass" recommendation  and with a zero  fiscal note                 
            by  the  Department   of  Community  and  Regional                 
            Affairs.                                                           
                                                                               
  HB 374    "An   Act   relating   to   reimbursable   service                 
            agreements  and  other  agreements  between  state                 
                                                                               
                                1                                              
                                                                               
                                                                               
            agencies for the purchase of services."                            
                                                                               
            CSHB 374 (FIN) was reported  out of Committee with                 
            a  "do  pass"  recommendation  and  with  two zero                 
            fiscal notes  by the  Office of  the Governor  and                 
            Department of Administration.                                      
  HOUSE JOINT RESOLUTION NO. 43                                                
                                                                               
       Proposing an amendment to the Constitution of the State                 
       of Alaska relating to penal administration.                             
                                                                               
  Representative Brown MOVED to RESCIND the Committee's action                 
  in passing CSHRJ 43 (FIN) out of Committee.  There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Brown provided members with AMENDMENT 1 (copy                 
  on file).  She explained that Amendment 1 would insert, "and                 
  juvenile"  after  "criminal"   on  page  1,  line  9.    She                 
  emphasized  that  "criminal"  does  not  apply to  both  the                 
  juvenile  and  adult  systems.    She recommended  that  the                 
  amendment be adopted to clarify that the rights discussed in                 
  CSHJR 43 (FIN) apply to both systems.                                        
                                                                               
  Representative  Brown  MOVED to  ADOPT  AMENDMENT 1.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative Brown provided members with AMENDMENT 2 (copy                 
  on  file).    She  explained that  Amendment  2  would  add,                 
  "allowed to be" before "informed of and";  and add, "allowed                 
  to be" before  "present" on page  1, lines 11  and 12.   She                 
  expressed concern  that the right to be present and informed                 
  not be interpreted as an absolute right.                                     
                                                                               
  Representative  Brown  MOVED to  ADOPT  AMENDMENT 2.   There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  Representative Brown provided members with AMENDMENT 3 (copy                 
  on  file).   She  explained  that Representative  Porter had                 
  drafted Amendment  3.  Amendment 3 would  insert, "before or                 
  after conviction" on  page 1,  lines 13 and  15; and  "seek"                 
  after "to"  on page  1, line  14.   She  explained that  the                 
  language would  address the  issue of  the use  of the  word                 
  "accused".  Members discussed the use of "conviction".                       
                                                                               
  Representative Larson MOVED  to AMEND Amendment 3  by moving                 
  "before or after  conviction" on page 1, line  15 to the end                 
  of  the  sentence.   There  being  NO OBJECTION,  it  was so                 
  ordered.                                                                     
                                                                               
  Representative Brown MOVED to ADOPT  AMENDMENT 3 as AMENDED.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Martin was MOVED to report CSHJR 43 (FIN) out                 
  of Committee  with individual  recommendations and  with the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
  HOUSE BILL NO. 372                                                           
                                                                               
       "An Act relating to the four dam pool transfer fund."                   
                                                                               
  RANDY  WELKER,  LEGISLATIVE  AUDITOR,   LEGISLATIVE  AFFAIRS                 
  AGENCY observed that HB 372 was requested by the Legislative                 
  Budget  and  Audit   Committee.    He  explained   that  the                 
  Legislature failed to make an appropriation link between the                 
  Four  Dam Pool  Transfer Fund  and the  receiving fund  from                 
  which the appropriation was made.   House Bill 372 would add                 
  language  to clarify the intent of  the Legislature that the                 
  funds be appropriated for the involved projects.  House Bill                 
  372 will remove  the subject  to appropriation language  and                 
  insert "unless otherwise provided in  an appropriation."  He                 
  stressed    that    expenditures    cannot   occur    absent                 
  appropriation.                                                               
                                                                               
  Representative  Hanley   referred  to  a  letter   from  the                 
  Department  of  Law  to  Senator  Taylor, dated  1/3/94,  in                 
  regards to  the transfer of  funds to  the Southeast  Energy                 
  Fund (copy on file).   He maintained that the  Department of                 
  Law  was incorrect  in concluding  that the  funds  could be                 
  transferred.  He expressed support for HB 372.                               
                                                                               
  JOE AMBROSE, STAFF,  SENATOR ROBIN  TAYLOR stressed that  HB
  372 would create a mechanism for inner account transfers.                    
                                                                               
  Representative Brown provided members with AMENDMENT 1 (copy                 
  on  file).   Amendment  1 would  delete  all material  after                 
  "fund", on page 1, line 6; and insert "to the general fund."                 
  She  explained  that  the amendment  would  add  $12 million                 
  dollars back to  the General  Fund.  She  stressed that  the                 
  appropriations have not yet been made.   She argued that the                 
  projects  contained  are  not  priorities  of the  State  of                 
  Alaska.    She recommended  that  the Committee  be fiscally                 
  responsible.                                                                 
                                                                               
  Representative   Brown   MOVED   to   ADOPT   AMENDMENT   1.                 
  Representatives Parnell  and Martin  spoke in  opposition to                 
  the  amendment.    Representative  Martin  OBJECTED  to  the                 
  amendment.  A roll call vote was taken on the motion.                        
                                                                               
  IN FAVOR: Brown                                                              
  OPPOSED:  Grussendorf,  Hoffman,  Navarre,  Foster,  Hanley,                 
                 Martin, Parnell, Therriault, Larson                           
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (1-9).                                                     
                                                                               
  Representative  Brown  asked  if   the  appropriation  is  a                 
  continuing appropriation.    Mr.  Welker  replied  that  the                 
  legislation simply directs the revenue  flow to a subaccount                 
  within the General Fund.  Legislative appropriation is still                 
  required for the expenditure.                                                
                                                                               
  Representative  Martin  MOVED  to  report   HB  372  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Brown OBJECTED.  A                 
  roll call vote was taken on the motion.                                      
                                                                               
  IN FAVOR: Grussendorf,  Hoffman,  Navarre,  Foster,  Hanley,                 
                 Martin, Parnell, Therriault, Larson                           
  OPPOSED:  Brown                                                              
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  HB  372  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Community and Regional Affairs.                                           
  HOUSE BILL NO. 374                                                           
                                                                               
       "An Act relating to reimbursable service agreements and                 
       other  agreements  between   state  agencies  for   the                 
       purchase of services."                                                  
                                                                               
  Mr. Welker explained that HB 374  was introduced as a result                 
  of   an   audit   regarding   fund  transfers   within   the                 
  Commissioner's  Office,  Department  of  Health  and  Social                 
  Services.  Reimbursable Service Agreements (RSA's) were used                 
  to  transfer additional  funding  from  agencies within  the                 
  Department to  the Commissioner's Office  budget to increase                 
  funding to a  level not approved  by the Legislature or  the                 
  Governor.                                                                    
                                                                               
  Mr. Welker stated  that an  agency that  provides a  service                 
  will bill the agency acquiring the serve based on the actual                 
  cost of the service or by a  cost allocation method that has                 
  been approved by Office of Budget and Management.                            
                                                                               
  Representative  Grussendorf asked  the penalty  of violating                 
  the legislation.  Mr. Welker noted that there is not penalty                 
  in law.                                                                      
                                                                               
  Representative Brown MOVED to  delete "with another agency".                 
                                                                               
                                4                                              
                                                                               
                                                                               
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Members  were provided with  AMENDMENT 2 from  the Office of                 
  Budget and Management (Attachment 1).                                        
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT  AND  BUDGET, OFFICE  OF  THE  GOVERNOR explained                 
  Amendment 2.  She noted that the sentence that began on page                 
  1, line 8.   She  observed that the  sentence is  redundant.                 
  She added that  "has, by law, the  authority to do  so", was                 
  also deleted.   She emphasized that  an agency may have  the                 
  expertise  to  provide  a  service  but  have  the  specific                 
  authority.                                                                   
                                                                               
  Mr.  Welker  stressed  that it  is  not  the  intent of  the                 
  Legislative Budget and Audit Committee that agencies ability                 
  to use legitimate RSA's be impaired.                                         
                                                                               
  (Tape Change, HFC 94-23, Side 1)                                             
                                                                               
  Representative  Parnell MOVED to  insert on page  1, line 7,                 
  "including the use  of a  reimbursable service agreement  or                 
  other  agreement", after "appropriations";  and delete:  "An                 
  agency may  not, through the  use of a  reimbursable service                 
  agreement   of   other  agrement   transfer   money  between                 
  appropriations."     Delete  after  "However",   and  insert                 
  Amendment 2 after  "However".  There being NO  OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  Representative Parnell MOVED to delete all language starting                 
  on  line  10,  page  1;  and  insert  new  language,   after                 
  "However,", provided by the Office of Budget and Management,                 
  in  Amendment  1.   There  being  NO  OBJECTION,  it was  so                 
  ordered.                                                                     
                                                                               
  Representative  Martin MOVED to report CSHB 374 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 374  (FIN) was  reported out  of Committee  with a  "do                 
  pass" recommendation and  with two zero fiscal  notes by the                 
  Office of the Governor and Department of Administration.                     
  HOUSE JOINT RESOLUTION NO. 43                                                
                                                                               
       Proposing an amendment to the Constitution of the State                 
       of Alaska relating to penal administration.                             
                                                                               
  Representative Brown explained that Amendment 3,  previously                 
  adopted by the Committee, neglected  to assure that juvenile                 
  adjudications would be included.                                             
                                                                               
                                5                                              
                                                                               
                                                                               
  JERRY LUCKHAUPT,  LEGAL COUNSEL, LEGISLATIVE  AFFAIRS AGENCY                 
  explained  that the  language "before  or after  conviction"                 
  would only  cover situations involving  adults or  juveniles                 
  waived into and convicted  in an adult court.  He noted that                 
  the legislation attempts to include  juvenile offenders.  He                 
  suggesetd that, "juvenile  adjudication", be added to  lines                 
  13 and 15, on page 1, after "conviction".                                    
                                                                               
  Representative Brown MOVED to RESCIND the Committee's action                 
  in passing CSHRJ 43 (FIN) out  of Committee, for the purpose                 
  of considering an amendment.   There being NO OBJECTION,  it                 
  was so ordered.                                                              
                                                                               
  Representative Brown MOVED to RESCIND the Committee's action                 
  in adopting Amendment 3.   There being NO OBJECTION,  it was                 
  so ordered.   Representative Brown MOVED to  insert, "before                 
  or after  conviction or  juvenile adjudication"  on page  1,                 
  lines 13 and 15;  and "seek" after "to" on page  1, line 14.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative Martin MOVED to report CSHJR 43 (FIN) out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHJR 43  (FIN) was  reported out  of Committee  with a  "do                 
  pass" recommendation and  with a fiscal  impact note by  the                 
  Office of  the Governor,  dated 1/13/95;  and with  two zero                 
  fiscal notes  by  the Department  of Public  Safety and  the                 
  Department of Corrections, dated 1/13/94.                                    
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 2:38 p.m.                                           
                                                                               
                                                                               
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