Legislature(1995 - 1996)
02/13/1995 01:35 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 13, 1995
1:30 P.M.
TAPE HFC 95-20, Side 2, #000 - end.
TAPE HFC 95-21, Side 1, #000 - 347.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:35 p.m.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
Representative Scott Ogan; Karl Luck, Director, Occupational
Licensing, Department of Commerce and Economic Development;
Jeff Logan, Staff, House Resources Committee; Neil Webster,
Alaska Professional Hunters Association; Susan Cox,
Assistant Attorney General, Department of Law; Joe
McCormick, Executive Director, Postsecondary Education
Commission;
SUMMARY
HB 19 An Act relating to the definition of 'fault' as
that term is used for the purposes of determining
the liabilities of parties in civil actions,
setting limitations on civil liability, and
authorizing the award, in conformance with
applicable court rule, of attorney fees in civil
actions."
HB 19 was reported out of Committee with a "do
pass" recommendation and with two zero fiscal
notes by the Department of Law, date 2/8/95 and
the Department of Administration, dated 2/8/95;
and with the House Judiciary Letter of Intent.
HB 102 An Act extending the termination date of the Big
Game Commercial Services Board."
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HB 102 was reported out of Committee with a "do
pass" recommendation and with a fiscal impact note
by the Department of Commerce and Economic
Development, dated 2/8/95.
HB 135 An Act relating to student loans; and providing
for an effective date."
CSHB 135 (FIN) was reported out of Committee with
a "do pass" recommendation and with a zero fiscal
note by the Department of Education, dated 2/8/95.
HJR 29 Relating to the federal balanced budget amendment.
CS HJR 19 (FIN) was reported out of Committee with
a "do pass" recommendation and with a zero fiscal
note by the Office of the Governor.
Co-Chair Hanley informed members of his intention to waive
HB 120 from Committee, on February 15, 1995. Members were
advised to notify him of any concerns or objections before
Wednesday.
HOUSE JOINT RESOLUTION NO. 29
Relating to the federal balanced budget amendment.
Representative Parnell, the sponsor of HJR 29, spoke in its
support. He observed that HJR 29 urges Congress to support
and pass a resolution proposing a constitutional amendment
requiring a federal balanced budget. He noted that absent
policy changes, entitlement and interest spending will
consume almost all federal revenues in the year 2010. In
the year 2030, federal revenues will not even cover
entitlement spending. He noted that the United States House
of Representatives passed HJR 1, a balanced budget
amendment.
Representative Brown provided members with Amendment 1
(Attachment 1). Representative Brown MOVED to adopt
Amendment 1. Amendment 1 would insert after "WHEREAS" on
page 1, line 7, "the goal of." "Could be accomplished"
would also be deleted on page 1, line 8 after "spending" and
"may be advanced" would be inserted. Representative Parnell
had no objections. There being NO OBJECTION, Amendment 1
was adopted.
Representative Brown provided members with Amendment 2
(Attachment 2). Amendment 2 would insert after "budget" on
page 1, line 12, "with provisions that will allow a response
to national economic emergencies and long-term investments
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in national infrastructure."
Representative Brown MOVED to adopt Amendment 2. She
explained that Amendment 2 would allow capital improvement
expenditures to be accounted for separately. Representative
Mulder OBJECTED. He stated that the amendment would "open
the door a crack".
Representative Parnell objected to the amendment on the
basis that the amendment would make HJR 29 too specific. He
emphasized that HJR 1, introduced in the United States
Congress, provides that total outlays for any fiscal year
shall not exceed total receipts for the fiscal year unless
three-fifths of the whole number of each House in Congress
shall provide by law for a specific excess. He asserted
that the breadth of the HJR 1 already allows response to
national economic emergencies and long-term investments in
national infrastructure upon a three-fifths vote of
Congress.
Representative Grussendorf spoke in support of Amendment 2.
Representative Brown accentuated that the amendment would be
compatible with HJR 1. She stressed that the amendment
would send the message that the State of Alaska wants a
solution that will respond to the needs of our state.
A roll call vote was taken on the MOTION to move Amendment
2.
IN FAVOR: Brown, Grussendorf
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Foster,
Hanley
The MOTION FAILED (2-8).
Representative Brown referred to remarks by Senator Ted
Stevens made on the floor of the United States Senate on
February 25, 1994 (Attachment 3). She noted that he stated
that: "I think it will be a total, total disaster for a
state such as mine to come under a balanced budget
amendment. We will lose at least Fort Richardson and
Eielson Air Force Base, and maybe one other. Alaska will
lose 94,000 jobs; there will be 24 percent less personal
income in Alaska; the rate of unemployment, which is already
the Nation's highest, will increase by 6.4 percent." She
observed that Senator Stevens, in his speech, detailed other
effects the balanced budget amendment would have on Alaska.
Senator Stevens concluded that "this is the wrong amendment
at the wrong time to address the wrong problem."
Representative Brown stressed that the effects of a balanced
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budget amendment have not changed.
Representative Brown acknowledged the philosophical
correctness of helping Congress to restrain its spending.
She questioned what will happen to Alaska if federal
contraction occurs when state dollars available for
expenditure are also being reduced.
Representative Therriault stressed that Senator Stevens'
change of heart in regards to the balanced budget amendment
was based on the fact that the national situation is so
severe that something absolutely has to be done. He
highlighted that everybody feels there is a problem, but no
one wants to give anything up or have the programs that they
have come to rely on considered for reduction or
elimination. He asserted that the State of Alaska cannot be
separated from the Nation.
Representative Grussendorf emphasized the importance of
federal funding to the State of Alaska. He questioned
members' priorities: "The economy of the State of Alaska" or
"do we want to have a nation wide perspective."
Co-Chair Hanley concluded that the Nation's credit card
balance has reached its limit. He emphasized that tough
decisions need to be made. He expounded that inaction could
result in a worst scenario, in terms of the kinds of
reductions that would have to be made in the future. He
reiterated that the three-fifths vote allows flexibility.
He asserted that a balanced budget amendment will focus
public pressure.
Representative Martin avouched that calamity will be the
result of inaction. He stressed: "Either pay the bill or
let your grandchildren pay it." He asserted that we have to
"get control of this wild spending in Congress."
Representative Mulder MOVED to report CSHJR 29 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HJR 19 (FIN) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
Office of the Governor.
HB 19 was reported out of Committee with a "do pass"
recommendation and with two zero fiscal notes by the
Department of Law, date 2/8/95 and the Department of
Administration, dated 2/8/95.
HOUSE BILL NO. 102
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"An Act extending the termination date of the Big Game
Commercial Services Board."
JEFF LOGAN, STAFF, HOUSE RESOURCES COMMITTEE testified in
support of HB 102. He observed that HB 102 extends the Big
Game Commercial Services Board whose duties are set forth in
AS 08.54.300 - 330. He noted that the Board replaced the
Big Game Guide Board as a result of legislation passed in
1989 (HB 112). The Board is the product of the Legislative
Task Force on Guiding and Game which was commissioned to
resolve conflicts between guides and outfitters. The Board
is mandated to terminate its operation one year after its
sunset date. He explained that unless the Legislature
passes HB 102 this session the Board will be terminated.
REPRESENTATIVE SCOTT OGAN testified in support of HB 102.
He noted that he served two years on the Big Game Commercial
Services Board. He noted that the Alaska Supreme Court
determined that exclusive use of guide use areas is
unconstitutional under the Common Use Clause. Statutes
implemented by the Board restrict guides to three Guide Use
Areas. Any guide can register for any area for a period of
five years. At the end of five years the guide can re-
register into another area. He asserted that the lack of
control and chaos that would result from the Board's
termination would be detrimental to the industry.
Representative Mulder asked why the Board was not extended
beyond one year during the last legislative session.
Representative Ogan did not know.
Representative Martin asked if the statutes pertaining to
the Board's powers or duties were repealed. Representative
Ogan replied that the statutes were not changed.
Representative Ogan emphasized that the Board takes in more
than it costs to run. He added that the Board plans to
lower fees. He stressed that the Board pursues violators.
Representative Martin expressed concern that fees might be
lowered. He questioned the benefit, to the State, of
harvesting the resource. Representative Ogan clarified that
the license fee would be lowered. Out-of-state tag fees are
not controlled by the Board.
NEIL WEBSTER, GUIDE testified via the teleconference network
from Anchorage. He testified that the changes implemented
by the Board have allowed him to become involved in the
guide industry. He spoke in support of retention of the
Board. He maintained that the Board has been a gain for the
overall industry. He noted that the current regulation
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allows him to know what guides are using the areas adjacent
to the Guide Use Area he is operating in.
In response to a question by Representative Kohring, Mr.
Logan explained that the revenue fluctuations indicated in
the fiscal note reflect a two year licensing renewal of some
licenses.
KARL LUCK, DIRECTOR, OCCUPATIONAL LICENSING, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT clarified that funding was
not reduced for the Board in FY 95. He stressed that the
Board's responsibilities have not been reduced. Funding for
the Board was included in the FY 96 proposed budget. He
further clarified that revenue reflected in the fiscal note
is all general fund program receipts. The fiscal note
reflects that there are greater program receipts in years
that the two year licenses are renewed. The program
receipts are added over the two year period and then divided
in half to derive the Board's yearly budget. He noted that
there is a $10.0 thousand dollar increase in FY 97 to
accomplish a new statutory mandate.
Representative Brown asked if AS 08.54310 (b)(1) is
constitutional. Mr. Luck acknowledged that the statute is
being challenged in Superior Court. Representative Navarre
assured her that the law will be found constitutional. He
emphasized, as a former member of the Legislative Task Force
on Guiding and Game, that the legislation was designed to
allow access.
Representative Therriault cautioned that the Board will be
asked to absorb the $10.0 thousand dollar increase from FY
96 to FY 97. He observed that there is also a $30.0
thousand dollar increase from FY 95 to FY 96. Mr. Luck
noted that the Board is required by statute to charge
licensing fees that are approximately equal to the cost of
regulating the Board. He emphasized that the amount needed
to run the Board depends on the number of licenses obtained.
Mr. Luck reviewed personal services costs. There is one
range 12 licensing examiner position which is dedicated
solely to the Board. One range 12 licensing examiner
position has some of its time dedicated to other boards.
Positive time keeping is used to allocate the cost of the
position to whichever board worked for at a particular time.
He added that services provided by the Hearing Officer Unit,
Investigative Unit, and any clerical support are also
charged through positive time keeping. There is one
investigator position which works solely on the Board's
investigations.
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(Tape Change, HFC 95-21, Side 1)
Representative Mulder MOVED to report HB 102 out of
Committee with individual recommendations and with the
accompanying fiscal note.
HB 102 was reported out of Committee with a "do pass"
recommendation and with a fiscal impact note by the
Department of Commerce and Economic Development, dated
2/8/95.
HOUSE BILL NO. 19
"An Act relating to the definition of 'fault' as that
term is used for the purposes of determining the
liabilities of parties in civil actions, setting
limitations on civil liability, and authorizing the
award, in conformance with applicable court rule, of
attorney fees in civil actions."
Representative Therriault, sponsor of HB 19, gave a brief
overview of the legislation. He noted that the legislation
is intended to clarify civil liability law that allows
defendants to argue that they are not liable for offenses
they have committed intentionally. The need arises from
Alaska court cases in which defendants have argued that
because the law refers only to acts that are "negligent or
reckless" and not specifically to acts that are
"intentional," it does not allow for the apportionment of
fault of those who have committed offenses intentionally.
In cases in which more than one person contributes to the
injuries, the law is unclear as to whether or not the person
who committed an offense intentionally can be held
responsible for any of the fault. To date, cases utilizing
this argument have been found to be without merit. The
legislation would eliminate the need for costly court
proceedings.
Representative Therriault observed that the House Judiciary
Committee adopted a Letter of Intent with HB 19. He
asserted that the legislation reflects the court's
determination in an attempt to clarify the law.
Representative Therriault pointed out that in some cases the
plaintiffs are using the same argument in order to bring
their case against the person or entity that can best afford
the recovery. He used the example of a current case
involving a mail bomb. The plaintiffs are claiming that the
State is negligent in preventing the defendant from sending
the bomb. If the intentional tortfeasor is excluded all the
blame can be placed on the "deep pocket" of the State.
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SUSAN COX, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW
testified that the legislation will clarify current law and
close a loop hole. She added that the Letter of Intent by
the House Resources Committee accomplishes its intent.
Representative Therriault stated that the House Judiciary
Committee wanted to clarify that all parties would not
necessarily be on the "same playing field." The courts are
not precluded from finding that the intentional party should
bear one hundred percent of the fault.
Representative Therriault MOVED to report HB 19 out of
Committee with individual recommendations and with the
accompanying fiscal notes and the House Judiciary
Committee's Letter of Intent. There being NO OBJECTION, it
was so ordered.
HB 19 was reported out of Committee with a "do pass"
recommendation and with two zero fiscal notes by the
Department of Law, date 2/8/95 and the Department of
Administration, dated 2/8/95; and with the House Judiciary
Letter of Intent.
HOUSE BILL NO. 135
"An Act relating to student loans; and providing for an
effective date."
Representative Brown provided members with Amendment 1
(Attachment 4). Amendment 1 deletes "relating to student
loans" from the title and adds "authorizing the Alaska
Commission on Postsecondary Education to adopt regulations
necessary to determine and set an interest rate applicable
to a student loan for which money is disbursed on or after
July 1, 1995, and regulations necessary to implement certain
loan default sanctions and consolidation of loan provisions
beginning July 1, 1995."
JOE MCCORMICK, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
COMMISSION testified in support of HB 135. He explained
that it provides transition language which will allow the
Commission to implement the provisions of HB 506, which were
passed by the previous legislature. He noted that the
transition language which normally accompanies a statute,
was inadvertently left out of HB 506. The Department of Law
notified the Commission of the problem in November 1994.
The Department of Law advised that HB 135 needs to be
adopted before the Commission can propose regulations to
implement HB 506 by July 1, 1995. He emphasized that HB 506
set forth a new method of calculating the interest in Alaska
student loans, effective July 1, 1995. If regulations are
not implemented before July 1, 1995 the Commission will have
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13,000 loans that will not be dispersed.
Representative Martin recalled that teachers were excluded
from the provisions of HB 506.
Mr. Luck agreed that section 2 would allow the
implementation of provisions passed in HB 506 which exclude
teachers. He observed it would not prevent initial license
holders to conduct their business. Renewals would be denied
if the holder's student loan payments are not current. If
section 2 is not adopted the Commission would be out of
compliance with the law.
Co-Chair Hanley MOVED to adopt Amendment 1, on behalf of
Representative Brown. There being NO OBJECTION, it was so
ordered.
Representative Navarre MOVED to report CSHB 135 out of
Committee with individual recommendations and with the
accompanying fiscal notes.
ADJOURNMENT
The meeting adjourned at 2:39 p.m.
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