Legislature(1993 - 1994)
04/07/1993 02:38 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 7, 1993
2:38 p.m.
TAPE HFC 93-97, Side 1, #000 - end.
TAPE HFC 93-97, Side 2, #000 - 258.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 2:38 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
Co-Chair MacLean was absent from the meeting.
ALSO PRESENT
Representative Bunde; Dave Kellyhouse, Director, Division of
Wildlife Conservation, Department of Fish and Game; Ceilia
Kunz, Juneau, Rupe Andrews, American Association of Retired
Persons; Nancy Bear-Usera, Commissioner, Department of
Administration.
SUMMARY INFORMATION
HCR 9 Relating to management of the community
development fisheries quota program and fisheries
development by the state.
CSHCR 9 (FSH) was reported out of Committee with a
"do pass" recommendation and with a zero fiscal
note by the Department of Fish and Game, dated
3/17/93.
HB 81 "An Act relating to the longevity bonus program."
HB 81 was HELD in Committee.
HB 232 "An Act relating to a bow hunting tag and bow
hunting safety; and providing for an effective
date."
HB 232 was reported out of Committee with a "do
pass" recommendation and with a fiscal impact note
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by the Department of Fish and Game, dated 3/26/93.
HB 253 "An Act amending the basis for determining refunds
to local governments under the program of shared
fisheries taxes; and providing for an effective
date."
HB 253 was reported out of Committee with a "do
pass" recommendation and with a fiscal impact note
by the Department of Revenue.
HOUSE CONCURRENT RESOLUTION NO. 9
Relating to management of the community development
fisheries quota program and fisheries development by
the state.
Representative Hoffman noted that HCR 9 was introduced to
insure the State's role in the Western Alaska Community
Development Quota Program (CDQ). The North Pacific Fishery
Management Council established the CDQ Program as a
component of the Inshore/Offshore allocation. He asserted
that the progam is the most extensive economic development
effort ever to occur in the poorest regions of Alaska.
Representative Hoffman maintained that the CDQ program
provides an opportunity for long-term, stable economic
development for the communities of the Bering Sea coast,
Aleutian and Pribilof Islands. He noted that the Governor
is responsible for requesting, accepting, and reviewing
proposals for quota allocation. He asserted that the CDQ
program needs strong leadership and coordinated support to
be successful.
Representative Hoffman spoke in support of a review of past
fisheries development policy proposals. He maintained that
a comprehensive fisheries development policy that includes
the CDQ program is necessary for the protection of the
State's renewable multi-billion dollar fishing industry.
Representative Hoffman observed that the resolution
recognizes the CDQ program. He requested that the Governor
fully commit the resources of his administration to the
program's extension and expansion in the interest of
benefiting the economies of both western Alaska and the
entire State of Alaska.
Representative Hoffman MOVED to report CSHCR 9 (FSH) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
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CSHCR 9 (FSH) was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the
Department of Fish and Game, dated 3/17/93.
HOUSE BILL NO. 232
"An Act relating to a bow hunting tag and bow hunting
safety; and providing for an effective date."
REPRESENTATIVE CON BUNDE stressed that HB 232 is revenue
generating. He stated that a bow hunting tag will be issued
to develop a hunting safety program.
DAVE KELLYHOUSE, DIRECTOR, DIVISION OF WILDLIFE
CONSERVATION, DEPARTMENT OF FISH AND GAME stated that the
Department's bow hunting safety program may be in jeopardy
due to cuts in the Department. He noted that the bow
hunting community has suggested the program as a voluntary
effort to support wildlife conservation.
Representative Martin asked how much revenue the program
will generate. Mr. Kellyhouse stated that they anticipate
that $35.0 thousand dollars will be generated.
Mr. Kellyhouse clarified, in response to a question from
Representative Therriault, that the tag will be in addition
to the hunting license.
Representative Martin MOVED to report HB 232 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 232 was reported out of Committee with a "do pass"
recommendation and with a fiscal impact note by the
Department of Fish and Game, dated 3/26/93.
HOUSE BILL NO. 253
"An Act amending the basis for determining refunds to
local governments under the program of shared fisheries
taxes; and providing for an effective date."
Co-Chair Larson explained that HB 253 requires that 95
percent of the shared fisheries taxes be shared with local
governments. Currently, 100 percent of the funds collected
are shared. Municipalities would receive 47.5 percent of
the fisheries tax.
Representative Grussendorf spoke in opposition of HB 253.
Representative Martin asserted that the state's portion is
only 40 percent. Representative Grussendorf pointed out
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that the state support for municipalities has been reduced.
Representative Navarre felt that administrative costs be
taken of the top before revenues are divided. Co-Chair
Larson asked if 5 percent represents actual administrative
costs.
PAUL DICK, DEPARTMENT OF REVENUE noted that the state would
receive approximately $1 million dollars for administrative
costs. He estimated that this would be a reasonable
reimbursement for the state's administrative costs. The
state collects the tax from the fish processors.
Representative Navarre observed that 50 percent of the net
proceeds will still be shared. He stressed that
municipalities will only pay 2.5 percent.
Representative Navarre MOVED to report HB 253 out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Grussendorf
OBJECTED.
Representative Hoffman MOVED to delete "5" percent and
insert "2.5" percent. Representative Navarre OBJECTED. He
stressed that the cost of state programs must be supported.
A roll call vote was taken on the motion.
IN FAVOR: Hoffman, Grussendorf
OPPOSED: Hanley, Martin, Parnell, Therriault, Larson,
Brown, Navarre
Representative Foster and Co-Chair MacLean were absent from
the vote.
The MOTION FAILED (2-7).
Representative Navarre MOVED to report HB 253 out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Grussendorf
OBJECTED. A roll call vote was taken on the motion.
IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson,
Brown, Navarre
OPPOSED: Hoffman, Grussendorf
The MOTION PASSED (7-2).
Representative Foster and Co-Chair MacLean were absent from
the vote.
HB 253 was reported out of Committee with a "do pass"
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recommendation and with a fiscal impact note by the
Department of Revenue.
HOUSE BILL NO. 81
"An Act relating to the longevity bonus program."
CEICLIA KUNZ, JUNEAU spoke in support of continued funding
of the longevity bonus program. She asked "what will those
old people do" without continuation of the program.
RUPE ANDREWS, AMERICAN ASSOCIATION OF RETIRED PERSONS spoke
in opposition of CSHB 81 (STA). He supported the Governor's
legislation, SB 58. He preferred a phase-out period.
NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
noted that the state has attempted to address the fiscal
liability of the longevity bonus program. She stressed that
Governor's proposal is fair and reasonable. The
Administration is not in support of CSHB 81 (STA).
Representative Martin felt that the phase-out period
proposed in SB 58 is too protracted. He asked if a straight
step down program was considered. Commissioner Usera stated
that a straight step down approach was considered. She
stressed that the intent is to protect current participants.
She noted that those on the program are generally on a fixed
income.
Commissioner Usera clarified that under SB 58 the cost of
the program would rise for four years. CSHB 81 (STA) would
result in an immediate savings of approximately $1,200
thousand dollars in FY 94. She stressed that the Governor's
approach considers the social need along with the financial
concerns of the state.
Representative Therriault expressed the desire to see an
immediate savings. Commissioner Usera asserted that the
state can afford to continue the program in order to allow a
phase out of the program.
Representative Martin expressed concern with hold harmless
costs.
(Tape Change, HFC 93-97, Side 2)
Representative Martin favored an immediate savings.
Commissioner Usera strongly supported a phase-out approach.
She noted that the Department of Administration's budget
fully funds the FY 94 longevity bonus. She reiterated that
the Governor's plan is reasonable.
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Co-Chair Larson emphasized the state's need to reduce
spending. He noted that state expenditures are
approximately $250 million dollars over state revenues. He
asked, how long can the State of Alaska spend more than it
makes.
Representative Brown asked if the Administration has
considered reducing payments to $225 hundred dollars per
month and retaining the phase-out approach. Commissioner
Usera replied that she has been convinced that $25 dollars
less a month would represent a large reductions to
participants of the program.
Representative Therriault asked if the decision was made to
hold harmless those that are currently on the program.
Commissioner Usera replied that the intent is to hold
harmless current participants as long as possible.
HB 81 was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 3:31 p.m.
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