Legislature(1993 - 1994)
04/26/1993 04:30 PM House FIN
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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
APRIL 26, 1993
4:30 P.M.
TAPE HFC 93 - 127, Side 2, #000 - end.
TAPE HFC 93 - 128, Side 1, #000 - #378.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 4:30 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Therriault Representative Martin
Representative Navarre Representative Parnell
Representative Hoffman was not present for the meeting.
ALSO PRESENT
Janice Adair, Assistant Commissioner, Chief Administrative
Officer, Legislative Contact, Department of Environmental
Conservation; Cheryl Frasca, Director, Division of Budget
Review, Office of Management and Budget, Office of the
Governor; Randy Gillespie, Lobbyist, AT&T, Juneau, Alaska;
Ashley Reed, Lobbyist, Alascom; Mary Lou Madden, Assistant
Director, Post Secondary Education, Department of Education.
SUMMARY INFORMATION
HB 65 An Act relating to the improvement of state
finances through reduction of operating costs of
certain state agencies and establishment of
certain fees; and providing for an effective date.
CS HB 65 (FIN) was reported out of Committee with
"no recommendation" and with fiscal notes by the
Department of Fish and Game, Department of
Environmental Conservation, Department of Health
and Social Services, Department of Administration,
the Alaska Court System, Department of Labor,
Department of Natural Resources, Department of
Public Safety and the Department of Revenue.
HOUSE BILL 65
"An Act relating to the improvement of state finances
1
through reduction of operating costs of certain state
agencies and establishment of certain fees; and
providing for an effective date."
Co-Chair Larson MOVED that the work draft, CS HB 65 (FIN)
Committee. There being NO OBJECTION, it was so ordered.
Representative Therriault provided the Committee a sectional
overview of the work draft.
Representative Brown questioned deleting language in Section
62, regarding "hazardous waste and plans, approvals, and
permits for sewage systems".
JANICE ADAIR, ASSISTANT COMMISSIONER, CHIEF ADMINISTRATIVE
OFFICER, LEGISLATIVE CONTACT, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, explained the deletion was a technical
amendment to language added to sub-paragraph (a), Page 18.
The hazardous waste permits have been removed since the
Department does not have the necessary statutory authority
to obtain approval for hazardous waste.
Representative Brown asked Section #65 repealed the outdated
OPA reports.
CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE
OF MANAGEMENT AND BUDGET, noted Section #65 contains two
repealers. One relates to OPA and the other repeals the
requirement from the Department of Administration to produce
monthly fund report balances.
Co-Chair MacLean asked why fees were increased in Section
There are eight agencies to which the increase will apply.
Co-Chair MacLean provided the Committee with Amendment #1.
[Attachment #1].
RANDY GILLESPIE, LOBBYIST, AT&T, JUNEAU, ALASKA, stated that
AT&T has filed documents with the FCC indicating a desire to
serve telephone service in the State of Alaska on a
competitive basis. AT&T would object to the amendment as it
extends the period of time from 90 days to 180 days for the
Commission to decide if an applicant is capable to provide
adequate telephone service in the State of Alaska. He
thought those findings for AT&T would take much less time
than that recommended in the amendment.
Mr. Gillespie pointed out that the amendment has not been
considered by the APUC nor has it been endorsed by any
consumer groups. No related utilities have endorsed or
requested the amendment, nor has it received any previous
2
public hearing. He felt it was an unfair attempt to change
the competitive market. Mr. Gillespie urged the Committee
not to support the amendment.
Representative Navarre pointed out that Amendment #1 had
failed at the subcommittee level when discussed. Mr.
Gillespie explained the amendment was introduced in
subcommittee although there was no testimony taken and it
did fail adoption.
Ms. Frasca elaborated, the Governor opposes the amendment.
She stated the amendment creates new concern which have not
been discussed and could jeopardize the legislation.
Representative Brown noted for the record conflict as her
husband is one of the APUC's Commissioners. She thought the
amendment was unnecessary and that the statute should be
left alone.
ASHLEY REED, LOBBYIST, ALASCOM, JUNEAU, ALASKA, stated that
Alascom supports the amendment. Previous to the Alascom and
GCI wars, the time frame was 180 days. He added, GCI also
supports the amendment. At this time, AT&T has not filed an
application before the APUC for in-trust State service. He
pointed out that AT&T has filed for elimination of the
joint-services agreement. The agreement solicits funds from
the lower forty-eight subsidizing fund rates in Alaska.
These funds have made it possible to buy universal services.
Representative Parnell questioned the historical perspective
of the change from 180 days to 90 days. Mr. Reed stated
there had been a long running battle between GCI and
Alascom, and GCI had been prevented from entering the market
because of the legislative fights. The year when the
competition bill passed, an agreement was made between the
companies. Representative Parnell asked that information be
made available addressing the long term effects of the
increased time.
(Tape Change, HFC 93-128, Side 1).
Representative Grussendorf spoke against the amendment
suggesting the inappropriate time in which it was being
presented to the Committee.
Mr. Gillespie commented that the process has been confused.
AT&T has submitted a proposal which includes reducing the
long distance rates so that Alaska will be made part of West
coast treatment in long distance phone calls. The proposal
would benefit rural Alaska. He emphasized that if APUC had
discussed the proposed amendment, AT&T would then cooperate
3
with that decision.
Co-Chair Larson MOVED Amendment #1 noting it would require a
title change. Representative Brown OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Martin, Navarre, Larson,
MacLean.
OPPOSED: Therriault, Brown, Grussendorf, Hanley,
Parnell.
Representative Hoffman was not present for the vote.
The MOTION FAILED, (5-5).
MARY LOU MADDEN, ASSISTANT DIRECTOR, POST SECONDARY
EDUCATION, DEPARTMENT OF EDUCATION, responded to
Representative Therriault's question regarding the Family
Education Loan Fund. That fund is charging an insurance fee
against write offs for death and disability. The Family
Education Loan has been in existence for three years and to
date there have been no write offs. The guarantor of the
loan is also insured.
Representative Foster MOVED to report CS HB 65 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTIONS, it
was so ordered.
CS HB 65 (FIN) was reported out of Committee with "no
recommendations" and with fiscal notes by the Department of
Fish and Game, the Department of Environmental Conservation,
the Department of Health and Social Services, the Department
of Administration, the Alaska Court System, the Department
of Labor, the Department of Natural Resources, the
Department of Public Safety and the Department of Revenue.
ADJOURNMENT
The meeting adjourned at 5:45 P.M.
HOUSE FINANCE COMMITTEE
APRIL 26, 1993
4:30 P.M.
TAPE HFC 93 - 127, Side 2, #000 - end.
TAPE HFC 93 - 128, Side 1, #000 - #378.
CALL TO ORDER
4
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 4:30 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Therriault Representative Martin
Representative Navarre Representative Parnell
Representative Hoffman was not present for the meeting.
ALSO PRESENT
Janice Adair, Assistant Commissioner, Chief Administrative
Officer, Legislative Contact, Department of Environmental
Conservation; Cheryl Frasca, Director, Division of Budget
Review, Office of Management and Budget, Office of the
Governor; Randy Gillespie, Lobbyist, AT&T, Juneau, Alaska;
Ashley Reed, Lobbyist, Alascom; Mary Lou Madden, Assistant
Director, Post Secondary Education, Department of Education.
SUMMARY INFORMATION
HB 65 An Act relating to the improvement of state
finances through reduction of operating costs of
certain state agencies and establishment of
certain fees; and providing for an effective date.
CS HB 65 (FIN) was reported out of Committee with
"no recommendation" and with fiscal notes by the
Department of Fish and Game, Department of
Environmental Conservation, Department of Health
and Social Services, Department of Administration,
the Alaska Court System, Department of Labor,
Department of Natural Resources, Department of
Public Safety and the Department of Revenue.
HOUSE BILL 65
"An Act relating to the improvement of state finances
through reduction of operating costs of certain state
agencies and establishment of certain fees; and
providing for an effective date."
Co-Chair Larson MOVED that the work draft, CS HB 65 (FIN)
Committee. There being NO OBJECTION, it was so ordered.
Representative Therriault provided the Committee a sectional
overview of the work draft.
5
Representative Brown questioned deleting language in Section
62, regarding "hazardous waste and plans, approvals, and
permits for sewage systems".
JANICE ADAIR, ASSISTANT COMMISSIONER, CHIEF ADMINISTRATIVE
OFFICER, LEGISLATIVE CONTACT, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, explained the deletion was a technical
amendment to language added to sub-paragraph (a), Page 18.
The hazardous waste permits have been removed since the
Department does not have the necessary statutory authority
to obtain approval for hazardous waste.
Representative Brown asked Section #65 repealed the outdated
OPA reports.
CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE
OF MANAGEMENT AND BUDGET, noted Section #65 contains two
repealers. One relates to OPA and the other repeals the
requirement from the Department of Administration to produce
monthly fund report balances.
Co-Chair MacLean asked why fees were increased in Section
There are eight agencies to which the increase will apply.
Co-Chair MacLean provided the Committee with Amendment #1.
[Attachment #1].
RANDY GILLESPIE, LOBBYIST, AT&T, JUNEAU, ALASKA, stated that
AT&T has filed documents with the FCC indicating a desire to
serve telephone service in the State of Alaska on a
competitive basis. AT&T would object to the amendment as it
extends the period of time from 90 days to 180 days for the
Commission to decide if an applicant is capable to provide
adequate telephone service in the State of Alaska. He
thought those findings for AT&T would take much less time
than that recommended in the amendment.
Mr. Gillespie pointed out that the amendment has not been
considered by the APUC nor has it been endorsed by any
consumer groups. No related utilities have endorsed or
requested the amendment, nor has it received any previous
public hearing. He felt it was an unfair attempt to change
the competitive market. Mr. Gillespie urged the Committee
not to support the amendment.
Representative Navarre pointed out that Amendment #1 had
failed at the subcommittee level when discussed. Mr.
Gillespie explained the amendment was introduced in
subcommittee although there was no testimony taken and it
did fail adoption.
6
Ms. Frasca elaborated, the Governor opposes the amendment.
She stated the amendment creates new concern which have not
been discussed and could jeopardize the legislation.
Representative Brown noted for the record conflict as her
husband is one of the APUC's Commissioners. She thought the
amendment was unnecessary and that the statute should be
left alone.
ASHLEY REED, LOBBYIST, ALASCOM, JUNEAU, ALASKA, stated that
Alascom supports the amendment. Previous to the Alascom and
GCI wars, the time frame was 180 days. He added, GCI also
supports the amendment. At this time, AT&T has not filed an
application before the APUC for in-trust State service. He
pointed out that AT&T has filed for elimination of the
joint-services agreement. The agreement solicits funds from
the lower forty-eight subsidizing fund rates in Alaska.
These funds have made it possible to buy universal services.
Representative Parnell questioned the historical perspective
of the change from 180 days to 90 days. Mr. Reed stated
there had been a long running battle between GCI and
Alascom, and GCI had been prevented from entering the market
because of the legislative fights. The year when the
competition bill passed, an agreement was made between the
companies. Representative Parnell asked that information be
made available addressing the long term effects of the
increased time.
(Tape Change, HFC 93-128, Side 1).
Representative Grussendorf spoke against the amendment
suggesting the inappropriate time in which it was being
presented to the Committee.
Mr. Gillespie commented that the process has been confused.
AT&T has submitted a proposal which includes reducing the
long distance rates so that Alaska will be made part of West
coast treatment in long distance phone calls. The proposal
would benefit rural Alaska. He emphasized that if APUC had
discussed the proposed amendment, AT&T would then cooperate
with that decision.
Co-Chair Larson MOVED Amendment #1 noting it would require a
title change. Representative Brown OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Martin, Navarre, Larson,
MacLean.
7
OPPOSED: Therriault, Brown, Grussendorf, Hanley,
Parnell.
Representative Hoffman was not present for the vote.
The MOTION FAILED, (5-5).
MARY LOU MADDEN, ASSISTANT DIRECTOR, POST SECONDARY
EDUCATION, DEPARTMENT OF EDUCATION, responded to
Representative Therriault's question regarding the Family
Education Loan Fund. That fund is charging an insurance fee
against write offs for death and disability. The Family
Education Loan has been in existence for three years and to
date there have been no write offs. The guarantor of the
loan is also insured.
Representative Foster MOVED to report CS HB 65 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTIONS, it
was so ordered.
CS HB 65 (FIN) was reported out of Committee with "no
recommendations" and with fiscal notes by the Department of
Fish and Game, the Department of Environmental Conservation,
the Department of Health and Social Services, the Department
of Administration, the Alaska Court System, the Department
of Labor, the Department of Natural Resources, the
Department of Public Safety and the Department of Revenue.
ADJOURNMENT
The meeting adjourned at 5:45 P.M.
8
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