Legislature(2003 - 2004)

02/19/2004 01:45 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 19, 2004                                                                                          
                         1:45 P.M.                                                                                              
                                                                                                                                
TAPE HFC 04 - 26, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House  Finance Committee meeting                                                                   
to order at 1:45 P.M.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Harris, Co-Chair                                                                                            
Representative Bill Williams, Co-Chair                                                                                          
Representative Kevin Meyer, Vice-Chair                                                                                          
Representative Mike Chenault                                                                                                    
Representative Eric Croft                                                                                                       
Representative Hugh Fate                                                                                                        
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Carl Moses                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bill Stoltze                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Les  Gara;   Representative  Tom   Anderson;                                                                   
Representative  Pete Kott; Jim  Pound, Staff,  Representative                                                                   
Hugh Fate; Susan  Stancliff, Staff, Speaker Pete  Kott; Marie                                                                   
Darlin, Alaska Association of  Retired Persons (AARP), Juneau                                                                   
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Cynthia  Drinkwater, Assistant  Attorney General,  Department                                                                   
of Law, Anchorage                                                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 15     An Act relating to establishing the Alaska No-Call                                                                    
          List,   a  data  base   of  residential   telephone                                                                   
          customers  who do  not wish  to receive  telephonic                                                                   
          solicitations;  providing  that  the data  base  be                                                                   
          compiled  at no  cost to  the customers;  requiring                                                                   
          paid telephonic sellers  to purchase the data base;                                                                   
          requiring    telephonic    sellers   to    identify                                                                   
          themselves;  requiring  telephonic  solicitors  who                                                                   
          are   otherwise   exempt   from   registration   as                                                                   
          telephonic  solicitors to file with  the Department                                                                   
          of Law  and purchase  the data base;  and providing                                                                   
          for an effective date.                                                                                                
                                                                                                                                
          HB   15   was   HEARD    and   HELD   for   further                                                                   
          consideration.                                                                                                        
                                                                                                                                
HB 56     An Act relating to the attorney fees and costs                                                                        
          awarded  in  certain   court  actions  relating  to                                                                   
          unfair  trade practices;  and, if considered  court                                                                   
          rule  changes, amending  Rules 54(d),  79, and  82,                                                                   
          Alaska Rules of Civil Procedure.                                                                                      
                                                                                                                                
          CS HB 56 (L&C) was reported out of Committee with                                                                     
          a "do  pass" recommendation  with a fiscal  note #1                                                                   
          by the Department of Law.                                                                                             
                                                                                                                                
HB 91     An Act relating to a cost-of-living allowance and                                                                     
          medical benefits  for retired peace  officers after                                                                   
          20 years of credited service.                                                                                         
                                                                                                                                
          CS HB 91 (FIN) was reported out of Committee with                                                                     
          a "no  recommendation" and  with a new  fiscal note                                                                   
          by   the    Department   of   Administration    and                                                                   
          indeterminate   note  #1   by  the  Department   of                                                                   
          Administration.                                                                                                       
                                                                                                                                
HB 347    An  Act  exempting   taxicabs  from  the  passenger                                                                   
          vehicle rental tax;  and providing for an effective                                                                   
          date.                                                                                                                 
                                                                                                                                
          HB 347 was reported out of Committee with a "do                                                                       
          pass"  recommendation and  a new  zero note  by the                                                                   
          Department of Revenue.                                                                                                
                                                                                                                                
CS SB 283(FIN)                                                                                                                  
          An  Act  making  an appropriation  to  reverse  the                                                                   
          deposit  of money  available  for appropriation  in                                                                   
          the  general fund at  the end  of fiscal  year 2003                                                                   
          into  the   constitutional  budget   reserve  fund;                                                                   
          making an  appropriation for investment  management                                                                   
          fees  for the constitutional  budget reserve  fund;                                                                   
          making  appropriations under  art. IX, sec.  17(c),                                                                   
          Constitution  of  the  State  of Alaska,  from  the                                                                   
          constitutional  budget reserve fund;  and providing                                                                   
          for an effective date.                                                                                                
                                                                                                                                
          CS SB  283(FIN) was reported out of  Committee with                                                                   
          a "do pass" recommendation.                                                                                           
                                                                                                                                
HOUSE BILL NO. 347                                                                                                            
                                                                                                                                
     An Act exempting taxicabs from the passenger vehicle                                                                       
     rental tax; and providing for an effective date.                                                                           
                                                                                                                                
Co-Chair Harris MOVED to report  HB 347 out of Committee with                                                                   
individual recommendations  and with the  accompanying fiscal                                                                   
note.  There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
HB  347  was reported  out  of  Committee  with a  "do  pass"                                                                   
recommendation and with a new  zero note by the Department of                                                                   
Revenue.                                                                                                                        
                                                                                                                                
HOUSE BILL NO. 56                                                                                                             
                                                                                                                                
     An Act relating  to the attorney fees and  costs awarded                                                                   
     in  certain  court  actions  relating  to  unfair  trade                                                                   
     practices;  and,  if  considered   court  rule  changes,                                                                   
     amending Rules 54(d), 79,  and 82, Alaska Rules of Civil                                                                   
     Procedure.                                                                                                                 
                                                                                                                                
Representative Foster  MOVED to report CS HB 56  (L&C) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 56  (L&C) was  reported out  of Committee  with a  "do                                                                   
pass"  recommendation   and  with  fiscal  note   #1  by  the                                                                   
Department of Law.                                                                                                              
                                                                                                                                
HOUSE BILL NO. 91                                                                                                             
                                                                                                                                
     An Act relating to a cost-of-living allowance and                                                                          
     medical benefits for retired peace officers after 20                                                                       
     years of credited service.                                                                                                 
                                                                                                                                
Representative Fate  MOVED to report work draft  version #23-                                                                   
LS0426\I, Craver,  1/14/04, out of Committee  with individual                                                                   
recommendations and with the attached fiscal notes.                                                                             
                                                                                                                                
Co-Chair  Harris OBJECTED.   He  pointed out  that the  large                                                                   
fiscal note is significant.  He  thought that the State might                                                                   
not be  able to afford  it long term.   He noted  he supports                                                                   
the  concept of  the  20-year retirement  system,  cautioning                                                                   
that  the  note  is large.    Co-Chair  Harris  WITHDREW  his                                                                   
OBJECTION.                                                                                                                      
                                                                                                                                
Representative  Hawker OBJECTED in  order to make  a comment.                                                                   
He  voiced  concern  with  the  effect of  the  note  on  the                                                                   
municipalities.    He thought  it  could place  an  "unfunded                                                                   
mandate" upon them.   He understood that the  Municipality of                                                                   
Anchorage  had  become  more supportive  of  the  legislation                                                                   
while  recognizing the  costs they  might incur.   He  agreed                                                                   
that  the bill  is  "good and  does the  appropriate  thing".                                                                   
Representative Hawker WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
Co-Chair  Williams  pointed out  that  the sponsor  had  been                                                                   
working with the  Governor's Office.  He added  that there is                                                                   
support throughout the Legislative House for the bill.                                                                          
                                                                                                                                
CS  HB 91  (FIN) was  reported out  of Committee  with a  "no                                                                   
recommendation" and with a new  fiscal note by the Department                                                                   
of  Administration  and  an  indeterminate  note  #1  by  the                                                                   
Department of Administration.                                                                                                   
                                                                                                                                
HOUSE BILL NO. 15                                                                                                             
                                                                                                                                
     An  Act  relating  to establishing  the  Alaska  No-Call                                                                   
     List,  a data  base of  residential telephone  customers                                                                   
     who  do not  wish to  receive telephonic  solicitations;                                                                   
     providing that  the data base be compiled at  no cost to                                                                   
     the  customers;  requiring  paid telephonic  sellers  to                                                                   
     purchase the data base; requiring  telephonic sellers to                                                                   
     identify  themselves;  requiring  telephonic  solicitors                                                                   
     who   are   otherwise  exempt   from   registration   as                                                                   
     telephonic  solicitors to  file with  the Department  of                                                                   
     Law and  purchase the  data base;  and providing  for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
REPRESENTATIVE  HUGH FATE explained  that last year,  federal                                                                   
legislation superceded  HB 15.   That legislation  was tested                                                                   
         th                                                                                                                     
in the 10  District  Court.  The Appeals Court  decision came                                                                   
forward last week  stating that it is "proper".   The federal                                                                   
legislation  stands in place  but the  Department of  Law has                                                                   
found that they do not cover those  subsequent areas that are                                                                   
applicable to  the State of Alaska.   At one time,  there was                                                                   
to be  a Governor's  bill, which  could close the  loopholes.                                                                   
To  date,  the Department  has  chosen  the bill  before  the                                                                   
Committee as the vehicle to address these concerns.                                                                             
                                                                                                                                
Co-Chair  Harris  MOVED  to adopt  work  draft  version  #23-                                                                   
LS0058\S, Craver, 2/17/04, as  the version of the legislation                                                                   
before  the Committee.    There being  NO  OBJECTION, it  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
JIM POUND,  STAFF, REPRESENTATIVE  HUGH FATE, explained  that                                                                   
the  bill  was  drafted after  the  federal  legislation  and                                                                   
regulations.  HB  15 was drafted to enhance  that legislation                                                                   
for  the  State  of  Alaska.     The  bill  would  allow  the                                                                   
Department of Law  to be the lead agency providing  them with                                                                   
the   enforcement   authority   to   register   telemarketers                                                                   
throughout the State.   The bill would eliminate  some of the                                                                   
harassment potential that is not  in the federal legislation.                                                                   
                                                                                                                                
Representative  Croft inquired if  there had been  any change                                                                   
from the State Affairs version  to the registration fee.  Mr.                                                                   
Pound  stated  that there  would  be  no in  State  registry.                                                                   
There will  be no fee  to the consumer  but there will  be to                                                                   
the telemarketers.                                                                                                              
                                                                                                                                
Representative Croft  asked if the telemarketer  fee would be                                                                   
the same  as indicated  in the  House State Affairs  version.                                                                   
Mr. Pound reiterated that there  is no fee to the consumer at                                                                   
the  federal level.   The  fee  to the  telemarketer will  be                                                                   
established through regulation.                                                                                                 
                                                                                                                                
Co-Chair  Harris commented  on  the fiscal  note  originating                                                                   
from the  House State  Affairs Committee.   He asked  if that                                                                   
note would  be changed with the  Finance version.   Mr. Pound                                                                   
assumed that a new note would be zero.                                                                                          
                                                                                                                                
Co-Chair Harris  referenced note #3,  FY04, and asked  if the                                                                   
$103 thousand  dollars would be  shifted to FY05.   Mr. Pound                                                                   
pointed  out  that  the  fiscal note  from  the  House  State                                                                   
Affairs Committee  was based on  a "very different"  piece of                                                                   
legislation.     It  was  establishing   and  setting   up  a                                                                   
registration process  to create a  "do not call" list  in the                                                                   
State of Alaska.   When the bill was first  introduced, there                                                                   
was no national  registry.  There  is now a "National  Do Not                                                                   
Call"  list, which  Alaska participates  in and  is the  list                                                                   
that will be used.                                                                                                              
                                                                                                                                
CYNTHIA   DRINKWATER,    (TESTIFIED   VIA    TELECONFERENCE),                                                                   
ASSISTANT  ATTORNEY GENERAL,  DEPARTMENT  OF LAW,  ANCHORAGE,                                                                   
advised  that  if  the Committee  adopts  the  House  Finance                                                                   
Committee substitute, the Department  of Law fiscal note will                                                                   
be different.   The primary  expenditures in the  note before                                                                   
the  Committee  were  based  on  creating,  implementing  and                                                                   
maintaining  a separate registry.   If that  was not  part of                                                                   
the  bill,  the  costs  would   be  eliminated.    There  are                                                                   
amendments  to  the  bill  requiring  registration  fees  for                                                                   
telemarketers,  case lists  and  charitable organizations  to                                                                   
pay registration fees going to the general fund.                                                                                
                                                                                                                                
Co-Chair Harris reiterated that  the Department of Law fiscal                                                                   
note currently  before the  Committee is  not accurate.   Ms.                                                                   
Drinkwater  advised that  the Department  would submit  a new                                                                   
note  as   soon  as  the   Committee  adopts   the  committee                                                                   
substitute.    Co-Chair  Harris   noted  that  the  committee                                                                   
substitute had been  adopted and asked how quickly  could the                                                                   
Department submit the new note.   Ms. Drinkwater replied that                                                                   
it would be  quickly and guaranteed it would  be available by                                                                   
2/23/04.                                                                                                                        
                                                                                                                                
Co-Chair  Harris  MOVED  that  CS  HB 15  (FIN)  be  HELD  in                                                                   
Committee until the new fiscal note had arrived.                                                                                
                                                                                                                                
MARIE DARLIN, ALASKA ASSOCIATION  OF RETIRED PERSONS, JUNEAU,                                                                   
requested to  testify on  the bill when  the new  fiscal note                                                                   
arrived in Committee.                                                                                                           
                                                                                                                                
CS  HB   15  (FIN)   was  HELD   in  Committee  for   further                                                                   
consideration.                                                                                                                  
                                                                                                                                
CS FOR SENATE BILL NO. 283(FIN)                                                                                               
                                                                                                                                
     An Act  making an appropriation  to reverse  the deposit                                                                   
     of  money available  for  appropriation  in the  general                                                                   
     fund  at   the  end  of   fiscal  year  2003   into  the                                                                   
     constitutional   budget    reserve   fund;   making   an                                                                   
     appropriation  for investment  management  fees for  the                                                                   
     constitutional     budget    reserve    fund;     making                                                                   
     appropriations  under art. IX, sec.  17(c), Constitution                                                                   
     of the State  of Alaska, from the  constitutional budget                                                                   
     reserve fund; and providing for an effective date.                                                                         
                                                                                                                                
Co-Chair Harris clarified  for the record that SB  283 was an                                                                   
identical  bill  to HB  413.   He  noted  that there  are  no                                                                   
changes  and  that  agreement   had  been  reached  with  the                                                                   
minority.   One item will be  considered on the  House Floor.                                                                   
He  encouraged  members  to  move  the  bill  as  is  out  of                                                                   
Committee.                                                                                                                      
                                                                                                                                
Representative  Croft explained that  the bill would  reverse                                                                   
the sweep.   He  hoped that  it would  be the "harbinger"  of                                                                   
good negotiations to come.                                                                                                      
                                                                                                                                
Representative Foster MOVED to  report CS SB 283 (FIN) out of                                                                   
Committee with  individual recommendations.   There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CS  SB  283   (FIN)  out  of  Committee  with   a  "do  pass"                                                                   
recommendation.                                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:06 P.M.                                                                                          

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