Legislature(1993 - 1994)
04/19/1994 03:10 PM 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
April 19, 1994
3:10 P.M.
TAPE HFC 94 - 133, Side 1, #000 - end.
TAPE HFC 94 - 133, Side 2, #000 - #318.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 3:10 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
Representative Pete Kott; Paul Fuhs, Commissioner,
Department of Commerce and Economic Development; Nancy
Slagle, Director, Division of Budget Review, Office of
Management and Budget; Karson Cowart, (Testified via
teleconference), Alaska Visitor Association, Anchorage; Guy
Bell, Director, Division of Administrative Services,
Department of Commerce and Economic Development; Elizabeth
Shaw, Chief, Assistant Attorney General, Civil Division,
Department of Law; Remond Henderson, Director, Division of
Administrative Services, Department of Community and
Regional Affairs.
SUMMARY
HB 342 An Act extending the termination date of the
Alaska Tourism Marketing Council.
CS HB 342 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Commerce and Economic
Development dated 1/21/94.
HB 455 An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date.
HB 455 was HELD in Committee for further
consideration.
1
HOUSE JOINT RESOLUTION NO. 65
Co-Chair Larson provided the Committee with a work draft of
a House Finance Committee resolution #8-LS1547\A, Cook,
4/15/94, which would propose an amendment to the
Constitution of the State in relationship to the Budget
Reserve Fund. [Copy on file]. The resolution would delete
Section (b) and (d) of Article IX of the present
Constitution.
Co-Chair Larson requested that the Committee members review
and consider the proposed resolution for introduction.
HOUSE BILL 342
"An Act extending the termination date of the Alaska
Tourism Marketing Council."
Co-Chair MacLean MOVED #8-LS1426\I, Lauterbach, 4/18/94, HB
342 be the version before the Committee. There being NO
OBJECTIONS, it was adopted.
Representative Parnell, the Subcommittee Chair, explained
the differences between the previous work draft and the new
one. The in-cash contribution has been changed from 15% to
20%. He added that the cash contribution had been increased
and the in-kind contribution would be considered toward the
full 50% required donation. Co-Chair MacLean stated that
the cash contribution was too low.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, spoke to the legalities of the in-kind
contributions. He disagreed that administrative time should
be considered as part of those in-kind obligations and
recommended that portion of the legislation be excluded from
the bill.
Commissioner Fuhs added that the Department would recommend
the Alaska Tourism Marketing Council (ATMC) pay a 25%
contribution.
Representative Brown asked who would be responsible to
determine which contributions qualify. Commissioner Fuhs
responded that the Department would work with ATMC on a
standard operating procedure in order to identify which
charges would be permissible. The report would be provided
each year to the Legislature.
Discussion followed among Committee members regarding the
administrative time as an accountable in-kind contribution.
2
KAREN COWART, (TESTIFIED VIA TELECONFERENCE), ALASKA VISITOR
ASSOCIATION (AVA), ANCHORAGE, noted that currently AVA is
providing a 20% match and is paying for the ATMC planners.
She stressed that it would be a difficult arrangement for
AVA to increase contributions to 25% and continue payment
for the planners.
Co-Chair MacLean provided the Committee with Amendment #1,
required amount from a "20%" to "25%" match. [Copy on
file]. Co-Chair MacLean MOVED to adopt Amendment #1.
Representative Parnell OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Martin, Navarre, Larson,
MacLean.
OPPOSED: Grussendorf, Hanley, Hoffman, Parnell.
Representative Therriault was not present for the vote.
The MOTION PASSED (6-4).
Representative Grussendorf MOVED to adopt Amendment #2 which
would amend Page 2, Line 7-9, deleting all language
following "less". Ms. Cowart replied AVA would not oppose
Amendment #2. There being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #3 to Page 1,
Line 14, inserting "cash" following the language "form of"
and on Line 15, delete "and" and insert "or". There being
NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #4 making a
change to Page 2, Line 3, inserting language "approved by
the ATMC and" following "is".
Co-Chair MacLean MOVED to report CS HB 342 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 342 (FIN) was reported out of Committee with "do pass"
recommendation and with a fiscal note by the Department of
Commerce and Economic Development dated 1/21/94.
HOUSE BILL 455
"An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date."
3
[Workdraft copy on file].
Section #9
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, commented
that Section #9 remained open. Section #9 would address
judgments and claims of the Department of Law, an increase
from $325,400 dollars to $1.221 million dollars. Co-Chair
Larson advised that the amount had been determined by a
memorandum as provided by Attorney General Botelho, 4/06/94.
[Copy on file].
Section #16
Ms. Slagle advised that Section #16 would address the
increase to federal receipts and a decrease to general
funds. Section #16 references the judgments and settlements
concerning Medical Assistance and reflects a greater
participation by the federal government in that area.
Section #28
Ms. Slagle pointed out that the changes to the
disproportionate share program resulted from a
miscalculation of the amount the State would receive in
federal reimbursement.
New Sections Following Section #50
Ms. Slagle clarified that the new section for the Department
of Administration's request for $35 thousand dollars would
address costs for the ethics complaints grievance awards.
Ms. Slagle added that the new section for the Department of
Transportation and Public Facilities would reference
ratification of prior year expenditures.
The new section for the Department of Commerce and Economic
Development would explain Alaska Seafood Marketing extending
the FY93 restricted program date and the use of FY93
revenues for expenditures in FY94.
Ms. Slagle commented that the following sectional change for
the Department of Public Safety would permit a ratification
of expenditures.
The new section for the Department of Corrections would
address overtime litigation settlement for the canine unit
in the amount of $163.9 thousand dollars. Ms. Brown
questioned the settlement amount for that component.
4
(Tape Change, HFC 94-133, Side 2).
Ms. Slagle continued that the following section would extend
the lapse date for the Exxon Valdez Trustee Council
restoration project within the Department of Fish and Game
to the Department of Natural Resources.
The following section would grant ratification to prior year
expenditures within the Department of Administration.
Ms. Slagle added that the following new section addressed
the Department of Law, Legal Services and Operations, Weiss
versus the State interim trail costs and attorney fees
request for $492.1 thousand dollars. Ms. Slagle advised the
Committee of a memorandum provided by Attorney General
Botelho, 4/06/94, regarding the concerns. [Copy on file].
ELIZABETH SHAW, CHIEF, ASSISTANT ATTORNEY GENERAL, CIVIL
DIVISION, DEPARTMENT OF LAW, stated that the claims had not
been placed into the supplemental last year, and that
consequently the requests covered both FY94 & FY95.
Discussion followed between Representative Martin and Ms.
Shaw regarding the large cost requested by the law firms and
amount paid. Ms. Shaw pointed out that most of the sums of
billed lawyer fees have gone through the court system and
that a determination had been made as to the allowable costs
and fees. She added that costs will vary depending on how
much per hour an attorney may charge and that the costs
include computer, research, paralegal and overhead
projections.
Section #55
Representative Brown questioned Section #55 which would roll
forward the balance in the Rural Development Grants to June
30, 1995 instead of lapsing that account. Ms. Slagle
replied that historically, there has been a problem with the
rural development grants and that Section #55 would provide
an extension for the grants in order to continue into FY95.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,
remarked that all the money has not yet been awarded and
that the funds have not yet been encumbered.
HB 455 was HELD in Committee for further consideration.
ADJOURNMENT
5
The meeting adjourned at 4:15 P.M.
HOUSE FINANCE COMMITTEE
April 19, 1994
3:10 P.M.
TAPE HFC 94 - 133, Side 1, #000 - end.
TAPE HFC 94 - 133, Side 2, #000 - #318.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 3:10 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
Representative Pete Kott; Paul Fuhs, Commissioner,
Department of Commerce and Economic Development; Nancy
Slagle, Director, Division of Budget Review, Office of
Management and Budget; Karson Cowart, (Testified via
teleconference), Alaska Visitor Association, Anchorage; Guy
Bell, Director, Division of Administrative Services,
Department of Commerce and Economic Development; Elizabeth
Shaw, Chief, Assistant Attorney General, Civil Division,
Department of Law; Remond Henderson, Director, Division of
Administrative Services, Department of Community and
Regional Affairs.
SUMMARY
HB 342 An Act extending the termination date of the
Alaska Tourism Marketing Council.
CS HB 342 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Commerce and Economic
Development dated 1/21/94.
HB 455 An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date.
6
HB 455 was HELD in Committee for further
consideration.
HOUSE JOINT RESOLUTION NO. 65
Co-Chair Larson provided the Committee with a work draft of
a House Finance Committee resolution #8-LS1547\A, Cook,
4/15/94, which would propose an amendment to the
Constitution of the State in relationship to the Budget
Reserve Fund. [Copy on file]. The resolution would delete
Section (b) and (d) of Article IX of the present
Constitution.
Co-Chair Larson requested that the Committee members review
and consider the proposed resolution for introduction.
HOUSE BILL 342
"An Act extending the termination date of the Alaska
Tourism Marketing Council."
Co-Chair MacLean MOVED #8-LS1426\I, Lauterbach, 4/18/94, HB
342 be the version before the Committee. There being NO
OBJECTIONS, it was adopted.
Representative Parnell, the Subcommittee Chair, explained
the differences between the previous work draft and the new
one. The in-cash contribution has been changed from 15% to
20%. He added that the cash contribution had been increased
and the in-kind contribution would be considered toward the
full 50% required donation. Co-Chair MacLean stated that
the cash contribution was too low.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT, spoke to the legalities of the in-kind
contributions. He disagreed that administrative time should
be considered as part of those in-kind obligations and
recommended that portion of the legislation be excluded from
the bill.
Commissioner Fuhs added that the Department would recommend
the Alaska Tourism Marketing Council (ATMC) pay a 25%
contribution.
Representative Brown asked who would be responsible to
determine which contributions qualify. Commissioner Fuhs
responded that the Department would work with ATMC on a
standard operating procedure in order to identify which
charges would be permissible. The report would be provided
each year to the Legislature.
Discussion followed among Committee members regarding the
7
administrative time as an accountable in-kind contribution.
KAREN COWART, (TESTIFIED VIA TELECONFERENCE), ALASKA VISITOR
ASSOCIATION (AVA), ANCHORAGE, noted that currently AVA is
providing a 20% match and is paying for the ATMC planners.
She stressed that it would be a difficult arrangement for
AVA to increase contributions to 25% and continue payment
for the planners.
Co-Chair MacLean provided the Committee with Amendment #1,
required amount from a "20%" to "25%" match. [Copy on
file]. Co-Chair MacLean MOVED to adopt Amendment #1.
Representative Parnell OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Martin, Navarre, Larson,
MacLean.
OPPOSED: Grussendorf, Hanley, Hoffman, Parnell.
Representative Therriault was not present for the vote.
The MOTION PASSED (6-4).
Representative Grussendorf MOVED to adopt Amendment #2 which
would amend Page 2, Line 7-9, deleting all language
following "less". Ms. Cowart replied AVA would not oppose
Amendment #2. There being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #3 to Page 1,
Line 14, inserting "cash" following the language "form of"
and on Line 15, delete "and" and insert "or". There being
NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #4 making a
change to Page 2, Line 3, inserting language "approved by
the ATMC and" following "is".
Co-Chair MacLean MOVED to report CS HB 342 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 342 (FIN) was reported out of Committee with "do pass"
recommendation and with a fiscal note by the Department of
Commerce and Economic Development dated 1/21/94.
HOUSE BILL 455
"An Act making and amending operating and capital
8
appropriations and ratifying certain state
expenditures; and providing for an effective date."
[Workdraft copy on file].
Section #9
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, commented
that Section #9 remained open. Section #9 would address
judgments and claims of the Department of Law, an increase
from $325,400 dollars to $1.221 million dollars. Co-Chair
Larson advised that the amount had been determined by a
memorandum as provided by Attorney General Botelho, 4/06/94.
[Copy on file].
Section #16
Ms. Slagle advised that Section #16 would address the
increase to federal receipts and a decrease to general
funds. Section #16 references the judgments and settlements
concerning Medical Assistance and reflects a greater
participation by the federal government in that area.
Section #28
Ms. Slagle pointed out that the changes to the
disproportionate share program resulted from a
miscalculation of the amount the State would receive in
federal reimbursement.
New Sections Following Section #50
Ms. Slagle clarified that the new section for the Department
of Administration's request for $35 thousand dollars would
address costs for the ethics complaints grievance awards.
Ms. Slagle added that the new section for the Department of
Transportation and Public Facilities would reference
ratification of prior year expenditures.
The new section for the Department of Commerce and Economic
Development would explain Alaska Seafood Marketing extending
the FY93 restricted program date and the use of FY93
revenues for expenditures in FY94.
Ms. Slagle commented that the following sectional change for
the Department of Public Safety would permit a ratification
of expenditures.
The new section for the Department of Corrections would
address overtime litigation settlement for the canine unit
9
in the amount of $163.9 thousand dollars. Ms. Brown
questioned the settlement amount for that component.
(Tape Change, HFC 94-133, Side 2).
Ms. Slagle continued that the following section would extend
the lapse date for the Exxon Valdez Trustee Council
restoration project within the Department of Fish and Game
to the Department of Natural Resources.
The following section would grant ratification to prior year
expenditures within the Department of Administration.
Ms. Slagle added that the following new section addressed
the Department of Law, Legal Services and Operations, Weiss
versus the State interim trail costs and attorney fees
request for $492.1 thousand dollars. Ms. Slagle advised the
Committee of a memorandum provided by Attorney General
Botelho, 4/06/94, regarding the concerns. [Copy on file].
ELIZABETH SHAW, CHIEF, ASSISTANT ATTORNEY GENERAL, CIVIL
DIVISION, DEPARTMENT OF LAW, stated that the claims had not
been placed into the supplemental last year, and that
consequently the requests covered both FY94 & FY95.
Discussion followed between Representative Martin and Ms.
Shaw regarding the large cost requested by the law firms and
amount paid. Ms. Shaw pointed out that most of the sums of
billed lawyer fees have gone through the court system and
that a determination had been made as to the allowable costs
and fees. She added that costs will vary depending on how
much per hour an attorney may charge and that the costs
include computer, research, paralegal and overhead
projections.
Section #55
Representative Brown questioned Section #55 which would roll
forward the balance in the Rural Development Grants to June
30, 1995 instead of lapsing that account. Ms. Slagle
replied that historically, there has been a problem with the
rural development grants and that Section #55 would provide
an extension for the grants in order to continue into FY95.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,
remarked that all the money has not yet been awarded and
that the funds have not yet been encumbered.
HB 455 was HELD in Committee for further consideration.
10
ADJOURNMENT
The meeting adjourned at 4:15 P.M.
11
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