Legislature(1993 - 1994)
03/26/1993 08:30 AM House FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 26, 1993
8:30 A.M.
TAPE HFC 93 - 65, Side 1, #000 - end.
TAPE HFC 93 - 65, Side 2, #000 - end.
TAPE HFC 93 - 66, Side 1, #000 - #146.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Therriault Representative Parnell
Representative Navarre was not present for the vote.
ALSO PRESENT
Nancy Bear Usera, Commissioner, Department of
Administration; Cheryl Frasca, Director, Division of Budget
Review, Office of Management and Budget, Office of Governor;
Marsha Hubbard, Director of Budget, University of Alaska;
Representative Jerry Mackie; Ron B. Lind, Director, Plans,
Programs and Budget, Department of Transportation and Public
Facilities; Jenny Murray, Aid to Representative Con Bunde.
SUMMARY INFORMATION
HB 79 An Act relating to recovery from a parent or legal
guardian of wilful or malicious destruction of
property by a minor.
CS HB 79 (FIN) was reported out of Committee with
a "do pass" recommendation and with three zero
fiscal notes by the Department of Health and
Social Services dated 2/10/93, the Department of
Administration dated 2/10/93 and the Department of
Law dated 2/10/93.
HB 143 An Act relating to the distribution of the revenue
obtained from imposition of the state tax on motor
fuel used in watercraft of all descriptions; and
providing for an effective date.
1
CS HB 143 (CRA) was held in Committee for further
discussion.
HB 158 An Act making appropriations for contract
settlement costs and cost-of-living adjustments
for public employees who are members of certain
collective bargaining units; and providing for an
effective date.
CS HB 158 (L&C) was reported out of Committee with
a "do pass" recommendation.
HB 225 An Act relating to notice of certain
appropriations from the dividend fund.
HB 225 was reported out of Committee with a "do
pass" recommendation.
HOUSE BILL 225
"An Act relating to notice of certain appropriations
from the dividend fund."
Representative Parnell noted that HB 225 had originated
within the Department of Public Safety Subcommittee in order
to transfer the permanent fund surplus into the Council on
Domestic Violence and Sexual Assault. He noted that a
felon's check would go to the Crime Victim Compensation
Fund, Sex Offender Treatment, issued under the Department of
Corrections and the Council on Domestic Violence.
Representative Parnell MOVED HB 225 with individual
recommendations and the accompanying fiscal note. There
being NO OBJECTION, it was so ordered.
HB 225 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Revenue.
HOUSE BILL 158
"An Act making appropriations for contract settlement
costs and cost-of-living adjustments for public
employees who are members of certain collective
bargaining units; and providing for an effective date."
NANCY BEAR USERA, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, stated that the Labor, Trades and Crafts
Agreement Management goals are to:
* Increase management flexibility to respond
effectively to the changing economic conditions of
2
the State while maximizing the quality of
government services to the public.
1. Where possible, defer to the Personnel Rules.
2. Increase management choice when making
promotions.
3. Clarify management's right to contract out
work and layoff employees.
4. Terminate all prior letters of agreement.
* Improve productivity, accountability, consistency,
and efficiency of State government operations.
1. Reduce overtime and other premium pay
liabilities to FLSA standards.
2. Convert travel and per diem entitlement to
those provided in the State Administrative
Manual.
3. Reduce the number of holidays.
* Realign the cost of personal services, moderating
the State's relative position as a provider of
wages and benefits so as to reflect the current
and foreseeable economic environment.
1. Modify health benefits, reduce unnecessary
utilization and increase employee
participation in selecting the benefit
package.
2. Share future cost increases of health
insurance between the employees and the
State.
3. Limit across the board salary increases.
4. Defer the effective date of the salary
increase by six months.
She noted that negotiations began in December, 1991, and
were limited to six contract articles selected by the
parties. With the assistance of a federal mediator, an
agreement was reached with a three year arrangement. The
issues covered were contracting-out, licenses, wages,
classification, call back, travel, holidays, family leave,
promotion, health insurance and signing bonus. She added,
these are the bargaining terms covering the life of the
3
contract for a two year period.
Co-Chair MacLean questioned the fiscal changes from $5
million to $9 million dollars occurring from the original
bill. Ms. Usera stated that there was a monetary roll-in
from the University agreement. The bargaining agreement now
includes 1993/1994 members.
CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE
OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, reiterated
that an amendment had been included for the University in
Sections 5 and 6. She added that additional sections were
updated which omitted the employer costs of paying the
bonuses.
MARSHA HUBBARD, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA,
advised that an agreement with the LTC Contract had been
signed last May, 1992, and provided the same salary increase
as given the non-union employees during FY 93. The receipt
of the three percent increase is dependant upon negotiations
and the Legislative appropriation.
Co-Chair MacLean MOVED to report CS HB 158 (L&C) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CS HB 158 (L&C) was reported out of Committee with a "do
pass" recommendation.
HOUSE BILL 79
"An Act relating to recovery from a parent or legal
guardian of wilful or malicious destruction of property
by a minor."
JENNY MURRAY, AID TO REPRESENTATIVE CON BUNDE, testified in
support of HB 79 and stated that the legislation would
increase the current cap for parental liability from $2
thousand dollars to what is allowable in district court, $50
thousand dollars. The bill would allow owners of property
damaged wilfully or maliciously by a minor to recover
monetarily from the minor's parents or legal guardian. With
this bill, victims of property damage may finally be able to
recover a greater portion of their losses as long as those
damages total less than $50 thousand dollars.
Representative Parnell referenced Page 1, Line 10, and asked
why "destroys" was used instead of "damages". Ms. Murray
stated the verbiage was the same as that used in the
original statute. Representative Parnell recommended
changing the language with the advise of the Department of
Law.
4
Co-Chair MacLean suggested that the $50 thousand dollar fine
was too harsh. She asked if the child could be covered by
insurance. Ms. Murray suggested that home owners could be
covered by home owners insurance. She pointed out that
legislation is geared toward the victims of property damage.
Discussion followed regarding the responsibility of the
insurance company paying the fees of damage versus the
parent's responsibility of the minor. Co-Chair Larson asked
accountability of parents of run-away children. Ms. Murray
pointed out that the legal guardian is the responsible party
if they had not emancipated that child. The Department of
Health and Social Services is involved in determining the
necessary process.
Co-Chair MacLean questioned the average rate paid by other
states. Ms. Murray pointed out that Alaska's rate has not
been revised since 1967 and is currently lower than the
other maximums. The average for most states is $15 - $25
thousand dollars.
Representative Hoffman questioned the rights of the injured
party to collect the proposed fees.
(Tape Change, HFC 93-65, Side 2).
Ms. Murray stated that upon deciding that the juvenile is
guilty, there are several ways to determine the
responsibility such as claiming the permanent fund, taking
their personal property, etc. Representative Hoffman
thought this would place unfair hardship on the family.
Representative Parnell reminded the Committee that there are
exemptions protecting the family's equity. Discussion
followed regarding protection the minor's parents and the
victim's house insurance coverage.
Co-Chair Larson MOVED to amend Page 1, Line 7, by inserting
"$10 thousand dollars" and deleting "$2 thousand dollars".
Representative Foster OBJECTED. He MOVED to amend the
amendment to "$5 thousand dollars". Representative Parnell
OBJECTED.
A roll call was taken on the MOTION to amend the amendment.
IN FAVOR: Martin, Brown, Foster, Grussendorf,
Hoffman, MacLean.
OPPOSED: Parnell, Therriault, Hanley, Larson.
Representative Navarre was not present for the vote.
5
The MOTION PASSED, (6 - 4).
A roll call was taken on the MOTION to adopt the $5 thousand
dollar change.
IN FAVOR: Brown, Foster, Grussendorf, Hanley,
Martin, Larson, MacLean.
OPPOSED: Parnell, Therriault, Hoffman.
Representative Navarre was not present for the vote.
The MOTION PASSED, (7 - 3).
Representative Parnell MOVED to report CS HB 79 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 79 (FIN) was reported out of Committee with a "do
pass" recommendation and with three fiscal notes by the
Department of Health and Social Services dated 2/10/93,
Department of Administration dated 2/10/93 and the
Department of Law dated 2/10/93.
HOUSE BILL 143
"An Act relating to the distribution of the revenue
obtained from imposition of the state tax on motor fuel
used in watercraft of all descriptions; and providing
for an effective date."
REPRESENTATIVE JERRY MACKIE testified in support of HB 143.
The legislation was introduced in response to interest
expressed by several communities regarding local harbor and
dock facilities. The bill would provide to a municipality a
portion of state watercraft fuel taxes collected within that
municipality. The portion would be determined by the ratio
of city owned docks and harbors to all public owned docks
and harbors in that area. The bill would generate revenue
sharing of tax receipts derived from facility users.
Most harbor facilities located throughout the State are
currently owned by the Department of Transportation and
Public Facilities. These facilities are usually operated by
the local municipalities. In recent years, the Department
has sought to have the municipalities take ownership of the
facilities and the associated maintenance responsibilities.
Their view is that the "on site" operator is better suited
for effective and efficient upkeep of a facility than the
distant DOTPF personnel.
6
Representative Therriault expressed concern with the
operational expense currently paid by the local
municipalities. Representative Mackie remarked there is
little maintenance performed in the smaller communities
which have harbors although there is a lot of deterioration.
The legislation would provide funds to address local harbor
facility concerns.
Representative Brown inquired how military facilities would
be treated. Representative Mackie said "publically
operated" refers only to moorage facilities operated by
DOTPF or a local municipality. Discussion followed
regarding facilities publically owned and operated.
Representative Brown MOVED to amend Page 2, Line 7, by
adding the language following "are" by deleting "publically
operated" and insert "owned by the State or municipality"
and to include Amendment #1 proposed by Representative
Mackie. [Attachment #1]. An additional amendment was moved
to add the language to Page 2, Line 7, after the word
"commissioner" adding "of Department of Transportation and
Public Facilities".
Co-Chair MacLean recommended adding a sunset clause to the
legislation. Representative Mackie explained adding a
sunset would not work. An incentive would be provided and
then the funds would be removed. This would leave the
municipalities owning the harbors with no funds to operate
them.
Representative Brown MOVED the suggested amendment.
(Tape Change, HFC 93-66, Side 1).
RON LIND, DIRECTOR, PLANS, PROGRAMS, AND BUDGET, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, stated the
amendment to change DOTPF as the agency for determining
footage would be appropriate. He stated that the Alaska
Marine Highway dock would need to be excluded.
Representative Martin OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Brown, Foster,
Grussendorf, Hanley, Hoffman, MacLean,
Larson.
OPPOSED: Martin.
Representative Navarre was not present for the vote.
7
The MOTION PASSED, (9 - 1) and the amendment was included.
HB 143 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 10:05 A.M.
HOUSE FINANCE COMMITTEE
March 26, 1993
8:30 A.M.
TAPE HFC 93 - 65, Side 1, #000 - end.
TAPE HFC 93 - 65, Side 2, #000 - end.
TAPE HFC 93 - 66, Side 1, #000 - #146.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Therriault Representative Parnell
Representative Navarre was not present for the vote.
ALSO PRESENT
Nancy Bear Usera, Commissioner, Department of
Administration; Cheryl Frasca, Director, Division of Budget
Review, Office of Management and Budget, Office of Governor;
Marsha Hubbard, Director of Budget, University of Alaska;
Representative Jerry Mackie; Ron B. Lind, Director, Plans,
Programs and Budget, Department of Transportation and Public
Facilities; Jenny Murray, Aid to Representative Con Bunde.
SUMMARY INFORMATION
HB 79 An Act relating to recovery from a parent or legal
guardian of wilful or malicious destruction of
property by a minor.
CS HB 79 (FIN) was reported out of Committee with
a "do pass" recommendation and with three zero
fiscal notes by the Department of Health and
8
Social Services dated 2/10/93, the Department of
Administration dated 2/10/93 and the Department of
Law dated 2/10/93.
HB 143 An Act relating to the distribution of the revenue
obtained from imposition of the state tax on motor
fuel used in watercraft of all descriptions; and
providing for an effective date.
CS HB 143 (CRA) was held in Committee for further
discussion.
HB 158 An Act making appropriations for contract
settlement costs and cost-of-living adjustments
for public employees who are members of certain
collective bargaining units; and providing for an
effective date.
CS HB 158 (L&C) was reported out of Committee with
a "do pass" recommendation.
HB 225 An Act relating to notice of certain
appropriations from the dividend fund.
HB 225 was reported out of Committee with a "do
pass" recommendation.
HOUSE BILL 225
"An Act relating to notice of certain appropriations
from the dividend fund."
Representative Parnell noted that HB 225 had originated
within the Department of Public Safety Subcommittee in order
to transfer the permanent fund surplus into the Council on
Domestic Violence and Sexual Assault. He noted that a
felon's check would go to the Crime Victim Compensation
Fund, Sex Offender Treatment, issued under the Department of
Corrections and the Council on Domestic Violence.
Representative Parnell MOVED HB 225 with individual
recommendations and the accompanying fiscal note. There
being NO OBJECTION, it was so ordered.
HB 225 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Revenue.
HOUSE BILL 158
"An Act making appropriations for contract settlement
costs and cost-of-living adjustments for public
9
employees who are members of certain collective
bargaining units; and providing for an effective date."
NANCY BEAR USERA, COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, stated that the Labor, Trades and Crafts
Agreement Management goals are to:
* Increase management flexibility to respond
effectively to the changing economic conditions of
the State while maximizing the quality of
government services to the public.
1. Where possible, defer to the Personnel Rules.
2. Increase management choice when making
promotions.
3. Clarify management's right to contract out
work and layoff employees.
4. Terminate all prior letters of agreement.
* Improve productivity, accountability, consistency,
and efficiency of State government operations.
1. Reduce overtime and other premium pay
liabilities to FLSA standards.
2. Convert travel and per diem entitlement to
those provided in the State Administrative
Manual.
3. Reduce the number of holidays.
* Realign the cost of personal services, moderating
the State's relative position as a provider of
wages and benefits so as to reflect the current
and foreseeable economic environment.
1. Modify health benefits, reduce unnecessary
utilization and increase employee
participation in selecting the benefit
package.
2. Share future cost increases of health
insurance between the employees and the
State.
3. Limit across the board salary increases.
4. Defer the effective date of the salary
increase by six months.
10
She noted that negotiations began in December, 1991, and
were limited to six contract articles selected by the
parties. With the assistance of a federal mediator, an
agreement was reached with a three year arrangement. The
issues covered were contracting-out, licenses, wages,
classification, call back, travel, holidays, family leave,
promotion, health insurance and signing bonus. She added,
these are the bargaining terms covering the life of the
contract for a two year period.
Co-Chair MacLean questioned the fiscal changes from $5
million to $9 million dollars occurring from the original
bill. Ms. Usera stated that there was a monetary roll-in
from the University agreement. The bargaining agreement now
includes 1993/1994 members.
CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE
OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, reiterated
that an amendment had been included for the University in
Sections 5 and 6. She added that additional sections were
updated which omitted the employer costs of paying the
bonuses.
MARSHA HUBBARD, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA,
advised that an agreement with the LTC Contract had been
signed last May, 1992, and provided the same salary increase
as given the non-union employees during FY 93. The receipt
of the three percent increase is dependant upon negotiations
and the Legislative appropriation.
Co-Chair MacLean MOVED to report CS HB 158 (L&C) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CS HB 158 (L&C) was reported out of Committee with a "do
pass" recommendation.
HOUSE BILL 79
"An Act relating to recovery from a parent or legal
guardian of wilful or malicious destruction of property
by a minor."
JENNY MURRAY, AID TO REPRESENTATIVE CON BUNDE, testified in
support of HB 79 and stated that the legislation would
increase the current cap for parental liability from $2
thousand dollars to what is allowable in district court, $50
thousand dollars. The bill would allow owners of property
damaged wilfully or maliciously by a minor to recover
monetarily from the minor's parents or legal guardian. With
this bill, victims of property damage may finally be able to
11
recover a greater portion of their losses as long as those
damages total less than $50 thousand dollars.
Representative Parnell referenced Page 1, Line 10, and asked
why "destroys" was used instead of "damages". Ms. Murray
stated the verbiage was the same as that used in the
original statute. Representative Parnell recommended
changing the language with the advise of the Department of
Law.
Co-Chair MacLean suggested that the $50 thousand dollar fine
was too harsh. She asked if the child could be covered by
insurance. Ms. Murray suggested that home owners could be
covered by home owners insurance. She pointed out that
legislation is geared toward the victims of property damage.
Discussion followed regarding the responsibility of the
insurance company paying the fees of damage versus the
parent's responsibility of the minor. Co-Chair Larson asked
accountability of parents of run-away children. Ms. Murray
pointed out that the legal guardian is the responsible party
if they had not emancipated that child. The Department of
Health and Social Services is involved in determining the
necessary process.
Co-Chair MacLean questioned the average rate paid by other
states. Ms. Murray pointed out that Alaska's rate has not
been revised since 1967 and is currently lower than the
other maximums. The average for most states is $15 - $25
thousand dollars.
Representative Hoffman questioned the rights of the injured
party to collect the proposed fees.
(Tape Change, HFC 93-65, Side 2).
Ms. Murray stated that upon deciding that the juvenile is
guilty, there are several ways to determine the
responsibility such as claiming the permanent fund, taking
their personal property, etc. Representative Hoffman
thought this would place unfair hardship on the family.
Representative Parnell reminded the Committee that there are
exemptions protecting the family's equity. Discussion
followed regarding protection the minor's parents and the
victim's house insurance coverage.
Co-Chair Larson MOVED to amend Page 1, Line 7, by inserting
"$10 thousand dollars" and deleting "$2 thousand dollars".
Representative Foster OBJECTED. He MOVED to amend the
amendment to "$5 thousand dollars". Representative Parnell
OBJECTED.
12
A roll call was taken on the MOTION to amend the amendment.
IN FAVOR: Martin, Brown, Foster, Grussendorf,
Hoffman, MacLean.
OPPOSED: Parnell, Therriault, Hanley, Larson.
Representative Navarre was not present for the vote.
The MOTION PASSED, (6 - 4).
A roll call was taken on the MOTION to adopt the $5 thousand
dollar change.
IN FAVOR: Brown, Foster, Grussendorf, Hanley,
Martin, Larson, MacLean.
OPPOSED: Parnell, Therriault, Hoffman.
Representative Navarre was not present for the vote.
The MOTION PASSED, (7 - 3).
Representative Parnell MOVED to report CS HB 79 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 79 (FIN) was reported out of Committee with a "do
pass" recommendation and with three fiscal notes by the
Department of Health and Social Services dated 2/10/93,
Department of Administration dated 2/10/93 and the
Department of Law dated 2/10/93.
HOUSE BILL 143
"An Act relating to the distribution of the revenue
obtained from imposition of the state tax on motor fuel
used in watercraft of all descriptions; and providing
for an effective date."
REPRESENTATIVE JERRY MACKIE testified in support of HB 143.
The legislation was introduced in response to interest
expressed by several communities regarding local harbor and
dock facilities. The bill would provide to a municipality a
portion of state watercraft fuel taxes collected within that
municipality. The portion would be determined by the ratio
of city owned docks and harbors to all public owned docks
and harbors in that area. The bill would generate revenue
sharing of tax receipts derived from facility users.
13
Most harbor facilities located throughout the State are
currently owned by the Department of Transportation and
Public Facilities. These facilities are usually operated by
the local municipalities. In recent years, the Department
has sought to have the municipalities take ownership of the
facilities and the associated maintenance responsibilities.
Their view is that the "on site" operator is better suited
for effective and efficient upkeep of a facility than the
distant DOTPF personnel.
Representative Therriault expressed concern with the
operational expense currently paid by the local
municipalities. Representative Mackie remarked there is
little maintenance performed in the smaller communities
which have harbors although there is a lot of deterioration.
The legislation would provide funds to address local harbor
facility concerns.
Representative Brown inquired how military facilities would
be treated. Representative Mackie said "publically
operated" refers only to moorage facilities operated by
DOTPF or a local municipality. Discussion followed
regarding facilities publically owned and operated.
Representative Brown MOVED to amend Page 2, Line 7, by
adding the language following "are" by deleting "publically
operated" and insert "owned by the State or municipality"
and to include Amendment #1 proposed by Representative
Mackie. [Attachment #1]. An additional amendment was moved
to add the language to Page 2, Line 7, after the word
"commissioner" adding "of Department of Transportation and
Public Facilities".
Co-Chair MacLean recommended adding a sunset clause to the
legislation. Representative Mackie explained adding a
sunset would not work. An incentive would be provided and
then the funds would be removed. This would leave the
municipalities owning the harbors with no funds to operate
them.
Representative Brown MOVED the suggested amendment.
(Tape Change, HFC 93-66, Side 1).
RON LIND, DIRECTOR, PLANS, PROGRAMS, AND BUDGET, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, stated the
amendment to change DOTPF as the agency for determining
footage would be appropriate. He stated that the Alaska
Marine Highway dock would need to be excluded.
Representative Martin OBJECTED.
14
A roll call was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Brown, Foster,
Grussendorf, Hanley, Hoffman, MacLean,
Larson.
OPPOSED: Martin.
Representative Navarre was not present for the vote.
The MOTION PASSED, (9 - 1) and the amendment was included.
HB 143 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 10:05 A.M.
15
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