Legislature(1993 - 1994)

05/08/1994 01:10 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                           May 8, 1994                                         
                            1:10 P.M.                                          
                                                                               
  TAPE HFC 94 - 166, Side 2, #000 - end.                                       
  TAPE HFC 94 - 167, Side 1, #000 - #210.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 1:10 P.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Col.  William   Valentine,  Director,   Fish  and   Wildlife                 
  Protection,  Department  of  Public  Safety;  Dean  Paddock,                 
  Executive Director,  Bristol Bay Drift  Netters Association,                 
  Juneau; Nancy Slagle,  Director, Division of Budget  Review,                 
  Office of Management and  Budget; Linda Rexwinkel,  Division                 
  of Budget Review, Office of Management and Budget.                           
                                                                               
  SUMMARY                                                                      
  SB 316    An Act relating to commercial fishing penalties.                   
                                                                               
            HCS  CS SB 316 (FIN) was reported out of Committee                 
            with "no recommendations" and with fiscal notes by                 
            the  Alaska Court  System, the  Department of  Law                 
            dated 3/03/94 and the Department of Public  Safety                 
            dated 3/16/94,  and with a House  Judiciary Letter                 
            of Intent.                                                         
  SB 357    An Act relating to certain study, publication, and                 
            reporting requirements  by and to  state agencies;                 
            relating   to  certain   fees  for   reports;  and                 
            providing for an effective date.                                   
                                                                               
            HCS CS SB 357 (FIN) was reported  out of Committee                 
            with  a  "do pass"  recommendation  and  with zero                 
            fiscal notes  by the Department of Education dated                 
            3/14/94, the  Department of Commerce  and Economic                 
            Development dated 3/14/94, 4/07/94, the Department                 
                                                                               
                                1                                              
                                                                               
                                                                               
            of Public  Safety dated 3/14/94, the Department of                 
            Administration  dated  4/21/94,  4/07/94, 3/14/94,                 
            the  Department  of   Transportation  and   Public                 
            Facilities  dated  4/21/94,   the  Department   of                 
            Natural Resources dated 3/14/94, the Office of the                 
            Governor   dated   4/07/94,   the  Department   of                 
            Environmental  Conservation  dated   3/14/94,  the                 
            Department of  Military and  Veterans and  Affairs                 
            dated 3/14/94 and the Department of  Revenue dated                 
            4/07/94.                                                           
  SENATE BILL 316                                                              
                                                                               
       "An Act relating to commercial fishing penalties."                      
                                                                               
  DEAN PADDOCK, EXECUTIVE DIRECTOR, BRISTOL BAY DRIFT NETTERS'                 
  ASSOCIATION, INC.(BBDA), JUNEAU, briefed the Committee  that                 
  BBDA's top priority is  to seek a solution to  the situation                 
  existing at the North Egegik line.                                           
                                                                               
  He added that the  record of the Alaska Board  of Fisheries,                 
  twice has shown that within the  last seven years there have                 
  been proposals submitted which could have reduced violations                 
  at the existing boundary.  Such proposals will be before the                 
  Board  at   their  next  meeting   for  reconsideration   of                 
  regulations in the Bristol Bay area.                                         
                                                                               
  Mr. Paddock stated  that BBDA does  not support the  current                 
  proposal for the following reasons:                                          
                                                                               
       1.   The penalties are proposed as a remedy to a unique                 
            and  unusual  situation,  yet  they  would  affect                 
            fishermen statewide;                                               
                                                                               
       2.   The proposed penalties  will not remedy the  cause                 
            of  the  problem, which  may  be described  as the                 
            regulatory  confining   of  a   great  number   of                 
            fishermen into  an extremely  limited space,  into                 
            which  large  numbers  of  valuable  fish  migrate                 
            rapidly, especially at certain stages of the tide;                 
                                                                               
       3.   The line in question is not visible but is defined                 
            by the  use of  Loran C.   Loran C is  admitted by                 
            all, including the Department of Public Safety, to                 
            have a  variation of  at least plus  or minus  100                 
            feet  or more in either  direction.  Thus there is                 
            an invisible electronic line with a built-in error                 
            of at least 200 feet.  In the competitive world of                 
            salmon  fishing  today,   the  fact  creates   the                 
            existing situation.  More stringent penalties will                 
            do little to correct this.                                         
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
       4.   DDBA believes that the problem  has now achieved a                 
            profile  which   is  bringing  attention   to  the                 
            legislation.     He  asked  for   more  meaningful                 
            consideration  from  the Board  of  Fisheries, the                 
            Department of Fish and Game  and the Department of                 
            Public Safety; and                                                 
                                                                               
       5.   DDBA submits  that no other industry of comparable                 
            value and importance to the State would be subject                 
            to  a proposal  of  similar  impact without  being                 
            provided   a   better   opportunity  for   process                 
            involvement.                                                       
                                                                               
  Representative Grussendorf pointed out that the  regulations                 
  would negatively impact  other small fisheries which  do not                 
  generate as much value as those in Bristol Bay.                              
                                                                               
  COL.   WILLIAM  VALENTINE,   DIRECTOR,  FISH   AND  WILDLIFE                 
  PROTECTION, DEPARTMENT OF PUBLIC SAFETY, emphasized that the                 
  problem is with the  greed of the fishermen.   They push the                 
  line hard to  make the  most money.   The legislation  would                 
  provide the Department a tool to provide a larger deterrent.                 
                                                                               
                                                                               
  Representative Navarre provided the Committee with a copy of                 
  AS  16.05.722  which  clarifies   the  strict  liability  of                 
  commercial fishing penalties.  [Copy on file].  He suggested                 
  changing the burden  of proof which  would make the  penalty                 
  more  stringent.   He added  that the  legislation will  not                 
  impact the Bristol Bay area as intended,  but instead impact                 
  the low value fishery areas.                                                 
                                                                               
  Col. Valentine commented  that the Department does  not want                 
  to be in the position to be  the judge, jury and enforcement                 
  officer.  Representative  Navarre felt that DPS  should have                 
  the  authority to provide all those services.  He understood                 
  that seizure of  a vessel  is allowable by  current law  and                 
  should be implemented  more often creating a  deterrent that                 
  would keep fishermen "towing the lawful line".  The monetary                 
  fine does not  prohibit the fisherman  from moving over  the                 
  line and catching the greater yield of fish.                                 
                                                                               
  Representative Hanley MOVED  to report HCS  CS SB 316  (JUD)                 
  out   of   Committee   with    individual   recommendations.                 
  Representative   Navarre   OBJECTED   asking   for   further                 
  discussion of the  Senate Resource version of the bill which                 
  would change  the burden  to provide  "clear and  convincing                 
  evidence".                                                                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Therriault,  Hanley,  Hoffman,   Martin,                 
                                                                               
                                3                                              
                                                                               
                                                                               
                      Parnell, Larson.                                         
       OPPOSED:       Grussendorf, Navarre.                                    
                                                                               
  Representatives Brown,  Foster and MacLean  were not present                 
  for the vote.                                                                
                                                                               
  The MOTION PASSED (6-2).                                                     
                                                                               
  Representative  Navarre  recommended  adding  an  additional                 
  fiscal   note  to   allocate   money   to  adequately   fund                 
  enforcement.  Representative Parnell advised that additional                 
  funds were added last year for fish  and wildlife protection                 
  with no additional work load.                                                
                                                                               
  There being NO  OBJECTIONS to the  Letter of Intent, it  was                 
  adopted.                                                                     
                                                                               
  Representative Hanley MOVED to adopt the accompanying fiscal                 
  notes.  There being NO OBJECTIONS, it was so ordered.                        
                                                                               
  HCS CS SB 316 (JUD) was  reported out of Committee with  "no                 
  recommendations" and with a House Judiciary Letter of Intent                 
  and  with  fiscal  notes by  the  Alaska  Court  System, the                 
  Department of Law dated 3/03/94 and the Department of Public                 
  Safety dated 3/16/94.                                                        
  SENATE BILL 357                                                              
                                                                               
       "An  Act relating  to certain  study,  publication, and                 
       reporting  requirements  by   and  to  state  agencies;                 
       relating to certain fees for reports; and providing for                 
       an effective date."                                                     
                                                                               
  (Tape Change, HFC 94-167, Side 1).                                           
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND  BUDGET,  OFFICE OF  THE GOVERNOR,  explained                 
  that SB 357 was a "housekeeping" bill which will benefit the                 
  State by creating more efficiency in record keeping.                         
                                                                               
  LINDA  REXWINKEL,  DIVISION  OF  BUDGET  REVIEW,  OFFICE  OF                 
  MANAGEMENT AND BUDGET, responded to a question regarding the                 
  University.  She noted that most  of the items listed within                 
  the University's  report  are included  in normal  budgetary                 
  books.   An additional report is provided to the Legislature                 
  in the Fall, prepared in detail.  That report is provided at                 
  the beginning  of the  Legislative session.   Representative                 
  Navarre  requested  that  those  reports  submitted  by  the                 
  University make the "budget requesting consistent".                          
                                                                               
  Representative Brown provided the Committee with a copy of a                 
  memorandum  written  by  Paul  Arnoldt,  Director,  Workers'                 
                                                                               
                                4                                              
                                                                               
                                                                               
  Compensation Division, Department of Labor.  [Copy on file].                 
  The memo  requests a  change in  the Rehab  Administration's                 
  report from a  fiscal year  base to a  calendar base,  which                 
  would bring it  in line with  other insurance reports.   She                 
  added that OMB supports the proposed change.                                 
                                                                               
  Representative  Brown  MOVED  to  adopt   the  amendment  as                 
  proposed  by  the  Department  of  Labor.    There being  NO                 
  OBJECTIONS, it was adopted.                                                  
                                                                               
  Representative Navarre MOVED  to report HCS CS  SB 357 (FIN)                 
  out of  Committee with  individual recommendations  and with                 
  the  accompanying  zero  fiscal  notes.     There  being  NO                 
  OBJECTIONS, it was so ordered.                                               
                                                                               
  HCS CS SB 357 (FIN) was reported out of Committee with a "do                 
  pass"  recommendation  and  with zero  fiscal  notes  by the                 
  Department  of Education  dated  3/14/94, the  Department of                 
  Commerce and  Economic Development  dated 3/14/94,  4/07/94,                 
  the   Department  of   Public  Safety  dated   3/14/94,  the                 
  Department   of   Administration  dated   4/21/94,  4/07/94,                 
  3/14/94,  the  Department   of  Transportation  and   Public                 
  Facilities  dated   4/21/94,  the   Department  of   Natural                 
  Resources dated 3/14/94,  the Office  of the Governor  dated                 
  4/07/94, the Department of  Environmental Conservation dated                 
  3/14/94, the Department of Military and Veterans and Affairs                 
  dated 3/14/94 and the Department of Revenue dated 4/07/94.                   
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 2:00 P.M.                                           
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                          May 10, 1994                                         
                           10:05 A.M.                                          
                                                                               
  TAPE HFC 94 - 168, Side 1, #000 - #622.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called  the House Finance  Committee meeting                 
  to order at 10:05 A.M.                                                       
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Jerry Burnett, Staff, Senator  Randy Phillips; Nancy Slagle,                 
  Director, Division  of Budget Review,  Office of  Management                 
  and  Budget;   Juanita  Hensley,  Chief,   Driver  Services,                 
  Department  of  Public Safety;  M.  Clyde Stolzfus,  Special                 
  Assistant,    Commissioner's    Office,     Department    of                 
  Transportation and Public Facilities.                                        
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 56     An  Act  relating  to   the  budget  reserve  fund                 
            established under art.  IX, sec. 17,  Constitution                 
            of the State of Alaska.                                            
                                                                               
            CS SB 56 (FIN) was reported  out of Committee with                 
            "no recommendation" and with a  fiscal note by the                 
            Senate State Affairs Committee.                                    
                                                                               
  SB 365    An  Act  relating  to  the  improvement  of  state                 
            finances and fiscal  accountability by  increasing                 
            fees,   by   collecting  additional   revenue,  by                 
            reducing certain program expenditures  by changing                 
            services or eligibility requirements for programs,                 
            by changing certain statutory  limitation periods,                 
            by  providing   for  use  of   certain  electronic                 
            records,  by   making  changes  to   state  agency                 
            functions   or   procedures    including   certain                 
            reporting   and   planning   procedures,  and   by                 
            authorizing extensions  for state leases  for real                 
            property if  certain savings can be  achieved; and                 
            providing for an effective date.                                   
                                                                               
            HCS SB  365 (FIN)  was reported  out of  Committee                 
            with "no recommendations" and with fiscal notes by                 
            the Department of Public Safety dated 3/24/94, the                 
            Office  of   the  Governor   dated  4/21/94,   the                 
            Department of Transportation and Public Facilities                 
            dated  4/21/94,  the  Department of  Environmental                 
            Conservation  dated  4/21/94,  the  Department  of                 
            Labor dated 4/21/94, the Department of Corrections                 
            dated  4/21/94,  the Department  of Administration                 
            dated  4/21/94  and  the Department  of  Law dated                 
            4/21/94.                                                           
                                                                               
  SENATE BILL 56                                                               
                                                                               
       "An Act relating to the budget reserve fund established                 
       under art. IX,  sec. 17, Constitution  of the State  of                 
       Alaska."                                                                
                                                                               
  JERRY BURNETT,  STAFF, SENATOR RANDY PHILLIPS,  explained SB                 
                                                                               
                                6                                              
                                                                               
                                                                               
  56  which  would  implement repayment  provisions  made from                 
  appropriations  within  the  constitutional  budget  reserve                 
  fund.  The  legislation would  allow a carry  forward as  of                 
  June, 30,  1994, or  as much  as necessary  to complete  the                 
  repayment.   The repayment would be transferred to that fund                 
  by   the  Department  of  Administration  after  the  annual                 
  financial report was filed.                                                  
                                                                               
  Representative  Brown  asked  what  the  definition   of  an                 
  unreserved balance, undesignated general  fund balance.  Mr.                 
  Burnett replied  that balance would  be the money  which had                 
  not been restricted by law for  specific use and which would                 
  accrue   to  the  general  fund  under  accepted  accounting                 
  principles.                                                                  
                                                                               
  Mr. Burnett added that the provisions provided by SB 56 were                 
  similar to those contained in HB  58, although that bill had                 
  been  found  unconstitutional.   SB  56  was  written to  be                 
  consistent  with the  State's constitutional  position.   He                 
  added  that when the judge  ruled on HB  58, he advised that                 
  the legislation was  unduly restricting funds available  for                 
  repayment.  The  State continues to  argue that case to  the                 
  Supreme Court.  The section in question of the constitution,                 
  specifically requires  that the Legislature implement  it by                 
  law and that money be taken from the general fund.                           
                                                                               
  Representative Hanley MOVED to report CS  SB 56 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTIONS, it was                 
  so ordered.                                                                  
                                                                               
  CS  SB  56 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with a fiscal  note by the Senate State                 
  Affairs Committee.                                                           
                                                                               
  SENATE BILL 365                                                              
                                                                               
       "An Act relating  to the improvement of  state finances                 
       and  fiscal  accountability   by  increasing  fees,  by                 
       collecting  additional  revenue,  by  reducing  certain                 
       program   expenditures   by   changing    services   or                 
       eligibility  requirements  for  programs,  by  changing                 
       certain statutory limitation periods,  by providing for                 
       use of certain electronic records, by making changes to                 
       state agency functions  or procedures including certain                 
       reporting and planning  procedures, and by  authorizing                 
       extensions  for  state  leases  for  real  property  if                 
       certain savings can  be achieved; and providing  for an                 
       effective date."                                                        
                                                                               
  JUANITA  HENSLEY,  CHIEF,  DRIVER  SERVICES,  DEPARTMENT  OF                 
  PUBLIC SAFETY, explained Sections 7-22, Department of Public                 
                                                                               
                                7                                              
                                                                               
                                                                               
  Safety amendments, from  a handout provided by the Office of                 
  Management and Budget.                                                       
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional analysis of the handout "Reducing State Government                 
  Expenditures-Sectional".  [Copy on file].                                    
                                                                               
  Representative Martin questioned the deletion to maintenance                 
  for the  Department of Transportation and  Public Facilities                 
  (DOTPF) in Section #1.                                                       
                                                                               
  M. CLYDE STOLZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE,                 
  DEPARTMENT   OF   TRANSPORTATION   AND  PUBLIC   FACILITIES,                 
  commented  that  Section  #1  would  be  a  deletion  for  a                 
  transportation plan.                                                         
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  [Copy  on file].  She felt that to include these items would                 
  create a less  comprehensive planning process and  that less                 
  detail would be provided by the Department of Transportation                 
  and  Public  Facilities.    Mr.  Stolzfus  agreed  that  the                 
  maintenance level  has been  less than  adequate within  the                 
  Department.  However, a problem arises  when a certain level                 
  of maintenance is promised in a plan and then the Department                 
  can not provide the service due to a lack of funds.                          
                                                                               
  Representative Brown  asked  if  a  prioritized  maintenance                 
  program had been established.  Mr. Stolzfus  replied one had                 
  not been because it would result  in a liability problem for                 
  the Department.   He continued,  by stating that  Section #2                 
  had been added by the Senate  Finance Committee.  Section #1                 
  addresses the  six year  program, Section  #2 addresses  the                 
  construction report of  projects for  the next  construction                 
  season.                                                                      
                                                                               
  Discussion  followed between  Representative  Brown and  Mr.                 
  Stolzfus  regarding Sections #1  & #2 and  the reductions to                 
  the level of detail which the legislation would provide.                     
                                                                               
  Representative Brown asked  the difference  between the  six                 
  year plans  proposed in  Section #1  and Section  #26.   Mr.                 
  Stolzfus  advised that Section #26 was  the report which the                 
  Governor submits to the Legislature.                                         
                                                                               
  Representative  Brown  understood  that  Section  #27  would                 
  exempt  DOTPF from providing the full reporting requirements                 
  due to the Legislature on the construction of projects.  Mr.                 
  Stolzfus agreed.   He added that Section #27 would eliminate                 
  in the six year plan, the estimated cost of that project.                    
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative Brown MOVED TO AMEND Amendment #1 which would                 
  now delete only  Sections #1, #2, #27 & #28.  There being NO                 
  OBJECTIONS, it was adopted.                                                  
                                                                               
  Representative Navarre  MOVED to report HCS SB 364 (FIN) out                 
  of  Committee with  individual recommendations and  with the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS SB  365 (FIN)  was reported  out of  Committee with  "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Public  Safety  dated 3/24/94,  the  Office of  the Governor                 
  dated 4/21/94, the  Department of Transportation  and Public                 
  Facilities dated  4/21/94, the  Department of  Environmental                 
  Conservation dated  4/21/94, the  Department of Labor  dated                 
  4/21/94,  the Department of  Corrections dated  4/21/94, the                 
  Department   of  Administration   dated   4/21/94  and   the                 
  Department of Law dated 4/21/94.                                             
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:50 A.M.                                          
                                                                               
                                                                               
                                9                                              

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