Legislature(1997 - 1998)
04/29/1997 03:12 PM House HES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE HEALTH, EDUCATION AND SOCIAL
SERVICES STANDING COMMITTEE
April 29, 1997
3:12 p.m.
MEMBERS PRESENT
Representative Con Bunde, Chairman
Representative Joe Green, Vice Chairman
Representative Al Vezey
Representative Brian Porter
Representative Fred Dyson
Representative J. Allen Kemplen
MEMBERS ABSENT
Representative Tom Brice
COMMITTEE CALENDAR
CONFIRMATION HEARING:
University Board of Regents
Annette M. Nelson-Wright
- CONFIRMATION ADVANCED
* HOUSE BILL NO. 254
"An Act relating to disclosure of public records identifying a
participant in the advance college tuition payment program;
relating to the composition and assets of the Alaska advance
college tuition payment fund; relating to administration of the
advance college tuition payment program; relating to advance
college tuition payment contracts; and providing for an effective
date."
- MOVED HB 254 OUT OF COMMITTEE
* HOUSE BILL NO. 194
"An Act relating to credits against certain taxes for contributions
for educational purposes; and providing for an effective date."
- MOVED HB 194 OUT OF COMMITTEE
* HOUSE CONCURRENT RESOLUTION NO. 18
Declaring 1997 to be observed as the 80th Anniversary of the
University of Alaska Fairbanks and recognizing the vital role
played by the University of Alaska Fairbanks.
- MOVED HCR 18 OUT OF COMMITTEE
HOUSE BILL NO. 155
"An Act relating to hearings before and authorizing fees for the
State Commission for Human Rights; and providing for an effective
date."
- MOVED HB 155 OUT OF COMMITTEE
HOUSE BILL NO. 16
"An Act relating to delinquent minors, to the taking of action
based on the alleged criminal misconduct of certain minors, to the
services to be provided to the victims of criminal misconduct of
minors, and to agency records involving minors alleged to be
delinquent based on their criminal misconduct; and amending Rule 19
and repealing Rules 6, 7, 11(a), 12(a), and 21(f), Alaska
Delinquency Rules."
- MOVED HB 16 OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: HB 254
SHORT TITLE: UNIVERSITY TUITION PAYMENT PROGRAM
SPONSOR(S): REPRESENTATIVE(S) KELLY, Cowdery
JRN-DATE JRN-DATE ACTION
04/18/97 1171 (H) READ THE FIRST TIME - REFERRAL(S)
04/18/97 1171 (H) HES
04/24/97 1332 (H) COSPONSOR(S): COWDERY
04/29/97 (H) HES AT 3:00 PM CAPITOL 106
BILL: HB 194
SHORT TITLE: TAX CREDITS: CONTRIBUTIONS TO EDUCATION
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-DATE ACTION
03/14/97 665 (H) READ THE FIRST TIME - REFERRAL(S)
03/14/97 666 (H) HES, STATE AFFAIRS, FINANCE
03/14/97 666 (H) FISCAL NOTE (REV)
03/14/97 666 (H) GOVERNOR'S TRANSMITTAL LETTER
04/29/97 (H) HES AT 3:00 PM CAPITOL 106
BILL: HCR 18
SHORT TITLE: 80 YEAR ANNIV OF UNIV. ALASKA FAIRBANKS
SPONSOR(S): REPRESENTATIVE(S) DAVIES,Brice,Nicholia,Kelly
JRN-DATE JRN-DATE ACTION
04/17/97 1139 (H) READ THE FIRST TIME - REFERRAL(S)
04/17/97 1139 (H) HES
04/21/97 1224 (H) COSPONSOR(S): KELLY
04/29/97 (H) HES AT 3:00 PM CAPITOL 106
BILL: HB 155
SHORT TITLE: HUMAN RIGHTS COMMISSION FEES & HEARINGS
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-DATE ACTION
02/24/97 443 (H) READ THE FIRST TIME - REFERRAL(S)
02/24/97 443 (H) STATES AFFAIRS, HES, FINANCE
02/24/97 444 (H) ZERO FISCAL NOTE (GOV)
02/24/97 444 (H) GOVERNOR'S TRANSMITTAL LETTER
03/11/97 (H) STA AT 8:00 AM CAPITOL 102
03/11/97 (H) MINUTE(STA)
03/13/97 (H) STA AT 8:00 AM CAPITOL 102
03/13/97 (H) MINUTE(STA)
03/20/97 (H) STA AT 8:00 AM CAPITOL 102
03/20/97 (H) MINUTE(STA)
03/22/97 (H) STA AT 10:00 AM CAPITOL 102
03/22/97 (H) MINUTE(STA)
03/25/97 (H) MINUTE(STA)
03/26/97 846 (H) STA RPT CS(STA) 5DP
03/26/97 847 (H) DP: JAMES, ELTON, BERKOWITZ, VEZEY
03/26/97 847 (H) IVAN
03/26/97 847 (H) ZERO FISCAL NOTE (GOV) 2/24/97
03/26/97 847 (H) REFERRED TO HES
04/29/97 (H) HES AT 3:00 PM CAPITOL 106
BILL: HB 16
SHORT TITLE: JUVENILE DELINQUENCY PROCEDURES
SPONSOR(S): REPRESENTATIVE(S) KELLY
JRN-DATE JRN-DATE ACTION
01/13/97 31 (H) PREFILE RELEASED 1/3/97
01/13/97 31 (H) READ THE FIRST TIME - REFERRAL(S)
01/13/97 31 (H) HES, JUDICIARY
04/25/97 (H) HES AT 3:30 PM CAPITOL 106
04/25/97 (H) MINUTE(HES)
04/29/97 (H) JUD AT 1:00 PM CAPITOL 120
04/29/97 (H) MINUTE(JUD)
04/29/97 (H) HES AT 3:00 PM CAPITOL 106
WITNESS REGISTER
ANNETTE M. NELSON-WRIGHT
8539 Forest Lane
Juneau, Alaska 99801-9056
Telephone: (907) 790-4456
POSITION STATEMENT: Appointee for the University Board of Regents.
WENDY REDMAN, Vice President of University Relations
University of Alaska
P.O. Box 75500
Fairbanks, Alaska 99775
Telephone: (907) 463-3086
POSITION STATEMENT: Testified on HB 254.
JIM LYNCH, Associate Vice President for Finance and Planning
University of Alaska
P.O. Box 75500
Fairbanks, Alaska 99775
Telephone: (907) 463-3086
POSITION STATEMENT: Testified on HB 254.
RICHARD S. CROSS, Deputy Commissioner
Office of the Commissioner
Department of Education
801 West Tenth Street, Suite 200
Juneau, Alaska 99801-1894
Telephone: (907) 465-2815
POSITION STATEMENT: Testified in support of HB 194.
BOB BARTHOLOMEW, Deputy Director
Income and Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, Alaska 99811-0420
Telephone: (907) 465-2320
POSITION STATEMENT: Testified on HB 194.
LARRY WIGET, Director of Government Relations
Anchorage School District
4600 Debarr Street
Anchorage, Alaska 99519
Telephone: (907) 269-2255
POSITION STATEMENT: Testified in support of HB 194.
REPRESENTATIVE JOHN DAVIES
Alaska State Legislature
Capitol Building, Room 422
Juneau, Alaska 99801
Telephone: (907) 465-4457
POSITION STATEMENT: Sponsor of HCR 18.
PAULA HALEY, Executive Director
Human Rights Commission
800 A Street, Number 204
Anchorage, Alaska 99501
Telephone: (907) 276-7474
POSITION STATEMENT: Testified on HB 155.
BRUCE CAMPBELL, Legislative Assistant
for Representative Kelly
Alaska State Legislature
Capitol Building, Room 411
Juneau, Alaska 99801
Telephone: (907) 465-2327
POSITION STATEMENT: Testified on HB 16.
REPRESENTATIVE PETE KELLY
Alaska State Legislature
Capitol Building, Room 411
Juneau, Alaska 99801
Telephone: (907) 465-2327
POSITION STATEMENT: Sponsor of HB 16.
ACTION NARRATIVE
TAPE 97-37, SIDE A
Number 0000
CHAIRMAN CON BUNDE called the House Health, Education and Social
Services Standing Committee meeting to order at 2:12 p.m. Members
present at the call to order were Representatives Bunde, Vezey and
Dyson. Representatives Kemplen, Porter and Green arrived at 3:13
p.m. This meeting was teleconferenced to Anchorage and offnet
sites.
CONFIRMATION HEARING TO THE UNIVERSITY BOARD OF REGENTS
CHAIRMAN BUNDE announced that the committee would address the
nomination of Annette M. Nelson-Wright to the University of Alaska
Board of Regents.
ANNETTE M. NELSON-WRIGHT said she was born and raised in Anchorage
and attended the University of Alaska Anchorage, where she worked
for the Environment and Natural Resources Institute. She has a
step-daughter who attends the University of Alaska Fairbanks and
she currently attends the University of Alaska Southeast where her
husband is an adjunct professor. She was editor of the university
newspaper and felt she would do a good job representing the
students as the student regent.
Number 0170
CHAIRMAN BUNDE stated that it would be useful to have a student
regent who has experiences related to the various state
universities.
Number 0188
REPRESENTATIVE AL VEZEY asked for an explanation of the student
position on the Board of Regents.
Number 0199
MS. NELSON-WRIGHT explained that she would serve as a liaison
between the Board of Regents and the students on all campuses. She
would try to address student difficulties and concerns with
university policy. She would relay those concerns and try to find
solutions for the students.
Number 0229
REPRESENTATIVE VEZEY clarified that the Board of Regents is created
by statute. He asked if there was one dedicated spot for a student
regent.
MS. NELSON-WRIGHT answered that he was correct. She explained that
in order to be nominated for the position, you have to win an
election for this position on your campus. The winner of that
election, as well as the winners from the other campuses, are
forwarded along with letters and recommendation of support to the
Governor's office. She stated that she received letters of support
from Representative Hudson, Representative Elton and Senator
Duncan. The Governor then chooses a nominee from those names.
Number 0319
REPRESENTATIVE VEZEY clarified that she saw the position as being
more than just a student liaison. He commented that the university
system was going through a lot of changes, some of which are being
forced upon the system. He asked her to comment on some of the
changes that the university system is going to have to make or
address.
Number 0355
MS. NELSON-WRIGHT felt the university is going to have to address
the fact that there is not the same amount of money as there was in
the past. During the boom period, the university system created a
large infrastructure which is difficult to support. This has
related in a loss of income and a loss of jobs to certain people,
but she felt this was an issue that had to be addressed. She did
not think that the university could afford a lot of the current
expenses and that the university needed to be streamlined. She
cited the recent union incident and said the university has to
approach this in a level-headed manner.
Number 0463
REPRESENTATIVE J. ALLEN KEMPLEN participated in student government
at the University of Alaska Anchorage. He expressed a frustration
that the student regent has not been a strong spokesperson for the
needs of the university and students in an increasingly competitive
world. He asked how she would be a strong and vocal individual and
if she would seek retrenchment of the university system.
Number 0578
MS. NELSON-WRIGHT felt there were large branches which could be
combined. The university did a study where they went through and
did a program assessment on all of the campuses, it listed
suggestions of how to save the university money to the benefit of
the university and the students. She understood that not much had
come of this study.
Number 0612
REPRESENTATIVE KEMPLEN referred to the two-year time frame that she
would be appointed to the Board of Regents and asked what she
expected to accomplish.
Number 0644
MS. NELSON-WRIGHT wanted to see more student involvement with the
Board of Regents. She wanted the Board of Regents to be more
accessible to the students, as students often see the Board of
Regents as a large group of people who aren't student friendly.
She wanted to make a difference to an institution which she hoped
would prosper and grow and contribute to the state of Alaska.
Number 0702
REPRESENTATIVE BRIAN PORTER commended her on her awareness of the
fiscal challenges being faced by the university system.
Number 0748
CHAIRMAN BUNDE referred to her comments on addressing communication
between the students and the regents. He asked if there were more
specific needs that she felt needed to be addressed to alleviate
student concerns.
Number 0780
MS. NELSON-WRIGHT mentioned difficulties her step-daughter has
faced at the University of Alaska Fairbanks in getting simple tasks
accomplished. She felt the university needs to become more student
friendly and she wanted to assist in this process. She wanted to
communicate with students from the various campuses via e-mail.
Number 0820
CHAIRMAN BUNDE cited the economic fiscal realities which all the
state is facing. He asked what would top the list of her
priorities for keeping, consolidating or changing what is at the
university.
Number 0852
MS. NELSON-WRIGHT felt the university has a large administration
and that the students could be better served by hiring more
professors. There is a certain amount of administration and
bureaucracy that is required to carry out certain functions
including grants and community service. She thought at times the
administration was excessive and that the students could be better
served through improving the quality of education. She referred to
the benefits she is receiving due to the small class size at the
University of Alaska Southeast. She said many students transfer up
to the university system to see Alaska, not to receive an
education. This was a perception that she hoped to change.
Number 0931
REPRESENTATIVE JOE GREEN mentioned her age and asked if she would
still be able to communicate effectively with other students just
coming out of high school.
Number 0980
MS. NELSON-WRIGHT stated that she has a 17-year-old and a 19-year-
old step daughter. She believed that she could communicate with
this age group. Her step-daughter who attends the University of
Alaska Fairbanks feels comfortable coming to her and expressing
difficulties that she has faced with the university. She felt that
she is approachable on campus and has not had difficulties in her
position of campus newspaper editor. Students have approached her
with concerns and suggestions for newspaper articles.
Number 1042
REPRESENTATIVE GREEN referred to the financial situation of the
university system and the broad spectrum of academia that the
university handles despite the population size of the state of
Alaska. He asked if all the courses and degrees were essential to
maintain the university system or could some departments be reduced
in order to concentrate on certain subjects.
Number 1104
MS. NELSON-WRIGHT felt that diversity was important in order to
bring in other students. However, the current financial situation
might indicate that the university should concentrate on those
areas in which they do very well and those areas which are
applicable to Alaska. This might give the university more
strength. At a time in which the university has more fiscal
ability, then they would be able to branch out into those other
areas. She felt the university could do more work in the area of
research. Research is an integral part of a university system.
Number 1207
REPRESENTATIVE GREEN made a motion to move the nomination of
Annette M. Nelson-Wright to the University of Alaska Board of
Regents forward to the full House without any recommendations.
There being no objection, the nomination of Annette M. Nelson-
Wright was advanced.
HB 254 - UNIVERSITY TUITION PAYMENT PROGRAM
Number 1250
CHAIRMAN BUNDE announced the next item on the agenda was HB 254,
"An Act relating to disclosure of public records identifying a
participant in the advance college tuition payment program;
relating to the composition and assets of the Alaska advance
college tuition payment fund; relating to administration of the
advance college tuition payment program; relating to advance
college tuition payment contracts; and providing for an effective
date."
WENDY REDMAN, Vice President of University Relations, University of
Alaska, said HB 254 is the Alaska advance college tuition payment
fund. In 1990, the legislature created this fund to provide an
incentive for people to purchase credits at the current rate to be
redeemed in the future. At the time, Alaska was one of four states
developing this type of program. Today there are close to 25
states which have a similar program and many more states are in the
process of developing a program.
MS. REDMAN said HB 254 makes some technical changes in the state
law. These changes create conformity with federal requirements,
allowing the program to remain tax-exempt in regards to the
university. The bill also provides additional language on the tax
deferral portion of the program for the participants. This would
allow expenses other than just tuition to be utilized by the
participant. The participant can use this money for books as well
as room and board.
MS. REDMAN stated that there were some time constraints involved.
The university received the federal requirements in February and
the changes to the program must be made by August of 1997.
Number 1370
CHAIRMAN BUNDE commented that this program locks tuition in at
today's rates. He asked, if this program exceeded beyond what was
expected, then would it cause a situation in future years where the
university system was having to produce outstanding education at
discount prices.
Number 1400
MS. REDMAN answered that this was a program created for the
university system by the legislature.
Number 1411
JIM LYNCH, Associate Vice President for Finance and Planning,
University of Alaska, testified next via teleconference from
Fairbanks. The major problem of the program, since its initiation,
has been the tax issues related to it. The Internal Revenue
Service (IRS) considered the program to be a taxable entity. The
federal (indisc.) really changed that for state prepaid tuition
programs as long as certain qualifications are met. This bill
ensures that the current program meets all the federal requirements
which will ensure that the university is tax-exempt.
Number 1446
CHAIRMAN BUNDE clarified that he was testifying that this bill
would allow the program to meet all the federal requirements.
Number 1454
REPRESENTATIVE GREEN explained that credits can be prepaid. As
inflation raises other universities' tuition, more students might
stay in the state university system. He understood that if you
prepay, based on current tuition, and the benefactor decides to go
to some other university, then there is a credit, but it is credit
on money rather than on units that they could take.
Number 1500
MS. REDMAN answered that this scenario was correct. The
participant's invested money would be returned. She explained that
this is not a good savings program. If people are not going to go
to the University of Alaska, then there are clearly better ways to
save money. She suggested that even if you are planning to go to
the University of Alaska, you would make more money by other
mechanisms. The attractiveness of this program is that it is
listed on the Permanent Fund check-off, so it is easy to do. This
has created a high participation rate in the program. Program
delays were implemented when some of the more astute students
realized that they could buy credits one year and then cash them in
the next. Currently there is a built-in delay in the program.
MS. REDMAN referred to a question by the chair and said there has
been difficulty in some states, specifically Michigan, where this
type of program has effectively forced the state university to hold
their tuition rates down to prevent bankruptcy. Hopefully, the
University of Alaska has instituted a program which should level
the tuition rate. She stated that the market has been good,
allowing the investments to keep up with the rate of tuition.
There will always be a financial pressure with this type of
program.
Number 1582
REPRESENTATIVE PORTER asked if the only way to take advantage of
this program was through the permanent fund.
Number 1591
MS. REDMAN answered that you can also purchase the credits.
REPRESENTATIVE PORTER asked if the university was happy with this
scheme. He commented that the last few years were a great
investment period, but the future investments are uncertain.
Number 1622
MS. REDMAN answered that the university is not unhappy with the
program. The university is happy in the sense that this program
has provided some good public relations. There is always a danger
with this type of program that it could hurt the university
financially in the future. Currently the Department of Revenue
(DOR) invests this money for the university and as long as a good
investment strategy can be continued then everything is fine.
Number 1654
REPRESENTATIVE PORTER clarified that whatever the current tuition
rate is, the same rate will be available whenever the participant
decides to enter the program. He asked if it would be better to
put a fail-safe on this program.
Number 1674
MR. LYNCH explained that there are some fail-safe clauses in this
program. The program can be discontinued if the situation gets to
a point where it is intolerable and the increase in the redemption
values can be limited. The long term future will depend on the
investment markets as to how good the program will be for the
participants.
Number 1701
REPRESENTATIVE VEZEY asked for information on the financial risk to
the university.
Number 1706
MR. LYNCH stated that essentially there is a guarantee associated
with the program that if you come to the University of Alaska, you
will receive a future education based on the price of today's
tuition. This program invests that money with the hope that the
investment earnings, between now and whenever you attend the
university, will be great enough to pay the current tuition. If
the investment earnings are not enough, then the university is at
risk for the difference of the redemption value of those credits
and whatever the current tuition is.
Number 1742
REPRESENTATIVE PORTER stated that he could start one of these funds
for his grandson, who is a one-year-old, and pay into it every
year. In 18 years his grandson could decide to go to the
University of Alaska for the cost of a 1997 tuition.
Number 1760
MR. LYNCH explained that the university will have invested those
monies today and 18 years from now, they expect that the money put
in will be great enough to pay the tuition. An actuarial analysis
was done about a year ago on this program. This analysis concluded
that if you can assume that tuition and inflation will be 7 percent
a year and you can invest the money at 7 percent a year, then you
can sell those tuition credits at today's price. The program will
be viable and you can refund that money in the future. If those
assumptions are wrong, then the price of the credits has to be
adjusted.
Number 1790
CHAIRMAN BUNDE commented that when he began teaching in the
university system, a credit hour cost $20, and now an hour is $100.
Number 1820
REPRESENTATIVE VEZEY said that it sounds as if the university is
treating this program as if it were a trust. When the credits are
redeemed, a certain amount is taken out of the trust. If what is
in the trust doesn't cover the current rates, then the university
loses money. He felt the university was still gaining from what
that student paid. The university might not get as much as it
might have. He referred to studies which say that the cost of
education is rising faster than the rate of inflation in the long
term. He did not know if this program was a good idea in terms of
total cash flow, but the university does get the money as well as
getting the student when it comes time for them to go to college.
Number 1862
MR. LYNCH answered that this was correct.
Number 1869
CHAIRMAN BUNDE stated that the volume of students was very
important.
Number 1878
REPRESENTATIVE GREEN noted that you could check off the untaxed
portion of the PFD. He asked what would happen if you wanted to
put in taxed dollars.
Number 1902
MR. LYNCH stated that all money entering this program is taxed.
Even though you check off your PFD to be put into this program,
that money is still taxed to the original recipient. If the PFD is
$1,000, you will pay taxes on that income on the year the dividend
is declared. All money coming into the program is after tax
dollars.
MS. REDMAN explained that he meant taxed to the purchaser.
MR. LYNCH referred to the savings account. The increase in value
of the earnings is tax deferred until it is used by the student and
is taxed to the student. There is no tax deduction at this point.
Number 1939
MS. REDMAN stated that there is talk of allowing a tax deduction at
the federal level.
Number 1946
MS. REDMAN said that even if you check off the PFD to put money
into this fund, you will still be taxed on the amount of the
dividend.
Number 1999
REPRESENTATIVE PORTER made a motion to move HB 254 with individual
recommendations and zero fiscal notes. There being no objection,
HB 254 moved from the House Health, Education and Social Services
Standing Committee.
HB 194 - TAX CREDITS: CONTRIBUTIONS TO EDUCATION
Number 2016
CHAIRMAN BUNDE announced the next item on the agenda was HB 194,
"An Act relating to credits against certain taxes for contributions
for educational purposes; and providing for an effective date."
Number 2028
RICHARD S. CROSS, Deputy Commissioner, Office of the Commissioner,
Department of Education, said this bill expands the opportunity for
corporations in Alaska, who pay taxes, to get an additional tax
credit for contributions to elementary and secondary schools.
There is a current tax credit mechanism for contributions to the
University of Alaska system. The Department of Education (DOE)
feels that this opportunity will create relationships between
corporations and school districts in the state, creating
possibilities for students. The department hopes that the
corporation's donation will be more than monetary, that it will
create an opportunity to establish a working relationship.
Educational possibilities ensue when people become involved in a
child's education. He was here in support of this bill.
Number 2089
CHAIRMAN BUNDE asked if the contributions have to be monetary or if
they could be material with a monetary value.
Number 2093
MR. CROSS answered that the contributions have to be monetary.
Number 2096
REPRESENTATIVE VEZEY commented that this bill was similar to
Representative Kott's bill regarding education technology.
Number 2116
REPRESENTATIVE FRED DYSON referred to page 8, line 14, the mining
business school district contribution tax credit.
Number 2154
BOB BARTHOLOMEW, Deputy Director, Income and Excise Audit Division,
Department of Revenue, said the state currently has a mining
license tax. Mining operations pay on the income of their mining
operations in Alaska. Section 21 allows a tax credit for
contributions to school districts from anyone who is subject to the
mine tax. This bill affects seven state taxes including; corporate
income tax, fisheries, mining and oil severance.
Number 2191
REPRESENTATIVE PORTER clarified that it was a fifty percent credit
across the board. If you gave a dollar, then you would get a 50
cent credit.
MR. BARTHOLOMEW explained that the current law for the education
credit has two tiers in the education credit. Tier 1 is a 50
percent credit for the first $100,000. Tier 2 is a 100 percent
credit for the next $100,000. This legislation proposes a tier 3
which is 50 percent of the next $150,000. The intent is to try to
create a private/state match where new dollars other than state
money are being put in the pie.
MR. BARTHOLOMEW felt the fiscal note explained the DOR position.
The advantage of HB 194 is that it brings in new dollars, even
though the state will have to contribute.
TAPE 97-37, SIDE B
Number 0000
LARRY WIGET, Director of Government Relations, Anchorage School
District, stated that the district supports extending the tax
credit for cash contributions to public schools. He referred to a
resolution by the Anchorage Chamber of Commerce. The chamber of
commerce, in concept, supports building stronger school/business
partnerships as does the Anchorage school district. Currently,
there is a strong working relationship with the chamber of commerce
in building additional school partnerships. There are
approximately 200 school/business partnerships. The district hopes
that this opportunity of providing cash contribution/tax credits
would not only lead to cash contributions but a more formal
engagement between businesses and the school district.
MR. WIGET anticipated that no one would be making a cash
contribution to be used anywhere the school district chose. He
felt the money would be directed for a specific use. He commented
that there was no history with this type of legislation and the
school district was not sure how much money would ultimately be
generated. He hoped other school districts within the state who
have access to business, including schools in rural areas, will
benefit from this bill.
Number 0195
CHAIRMAN BUNDE mentioned that BP (Alaska) Inc. is donating
truckloads of computers to school districts throughout Alaska. The
first load leaves for Fairbanks tomorrow. This company has
purchased $600,000 worth of software that will also be donated. He
felt the business community was trying to provide support for the
public schools. If the state could encourage and support
businesses through some tax credits, then the state should do it.
Number 0268
MR. WIGET said the Anchorage School District was appreciative of
businesses within the Anchorage community who have stepped forward
with their resources and made an investment. He mentioned that the
Alaska Railroad takes the students on a train ride as well as
having their personnel going into the schools to read to the
students. He wanted the students to have a greater appreciation
and understanding of what it is to be a member of the business
community. Hopefully the students will aspire to careers and job
opportunities which exist in fields other than those that they
would normally be exposed to by their family or through the limited
orientation that they would get in the classroom.
Number 0332
REPRESENTATIVE GREEN referred to the fact that tier 1 and tier 2
encompass a lot of money and asked what currently happened with
such donations.
Number 0350
MR. WIGET believed that these donations only involved the
university system.
Number 0364
CHAIRMAN BUNDE explained that HB 194 would expand the program to
kindergarten through twelfth grade.
Number 0400
REPRESENTATIVE VEZEY referred to page 4, line 5, Section 7, and
asked for an explanation of 26 U.S.C. 170.
Number 0425
MR. BARTHOLOMEW answered that this language states that if you are
going to make a contribution to a school and get a tax credit for
it, you can't also take a business deduction. In tax language this
is referred to as a double dip; taking both a deduction and a
credit. The business would have to decide up front whether they
wanted the tax credit, usually much more valuable, or a straight
business deduction. The language in HB 194 would limit businesses
to one or the other.
Number 0460
REPRESENTATIVE VEZEY asked what authority was involved to tell
anyone what their relationship with the IRS could be.
Number 0467
MR. BARTHOLOMEW explained that this language would only be as it
relates to the state tax. When the state sets up the corporate
income tax, the state mirrors the federal IRS. It would still be
a federal business deduction, but when the state calculates the
tax, the state would make the business chose between the deduction
or the credit. This language only affects the calculation of the
state corporate income tax, not the federal tax.
Number 0518
REPRESENTATIVE DYSON made a motion to move HB 194 with individual
recommendations and attached fiscal notes. There being no
objection, HB 194 was moved from the House Health, Education and
Social Services Standing Committee.
HCR 18 - 80 YEAR ANNIV OF UNIV. ALASKA FAIRBANKS
Number 0551
CHAIRMAN BUNDE announced the next item on the agenda was HCR 18,
Declaring 1997 to be observed as the 80th Anniversary of the
University of Alaska Fairbanks and recognizing the vital role
played by the University of Alaska Fairbanks.
Number 0577
REPRESENTATIVE JOHN DAVIES, Sponsor of HCR 18, said the resolution
asks the legislature to recognize the 80th anniversary of the
University of Alaska Fairbanks as it is important to celebrate good
things. The legislature spends a lot of their time focused on
problems and how to resolve them, but every once in a while there
needs to be recognition for those things which are going well. He
felt the University of Alaska Fairbanks has done a lot of good
things in its 80 years of existence.
REPRESENTATIVE DAVIES also thought the resolution would assure
university students, faculty and staff that the legislature
continues to value the mission of higher education. While it might
be necessary to reduce budgets, there shouldn't be the perception
that there is a reduced appreciation of higher education.
REPRESENTATIVE DAVIES stated that this resolution recalls the
actions that the territorial legislature took 80 years ago, on May
3, 1917, in establishing the university. He felt the legislature
should honor the efforts of many Alaskans who have contributed to
the creation of a strong university and that we recognize the
contributions that the university has made to Alaska. He cited
various accomplishments; educating teachers and leaders of Alaska,
developing new markets in resource areas such as fisheries, finding
new uses for Sitka spruce trees, allowing safe commerce in the hub
area of the state around Anchorage in the presence of volcanos and
developing engineering solutions to deal with permafrost and other
cold regions challenges. This is the only northern university in
the United States that has meet that unique challenge.
Number 0745
REPRESENTATIVE GREEN made a motion to move HCR 18 with individual
recommendations. There being no objection, HCR 18 moved from the
House Health, Education and Social Services Standing Committee.
HB 155 - HUMAN RIGHTS COMMISSION FEES & HEARINGS
Number 0757
CHAIRMAN BUNDE announced the next item on the agenda was HB 155,
"An Act relating to hearings before and authorizing fees for the
State Commission for Human Rights; and providing for an effective
date."
Number 0808
PAULA HALEY, Executive Director, Human Rights Commission, testified
next via teleconference from Anchorage. She said HB 155 is part of
a comprehensive approach to increased demand for the agency's
services in the wake of diminishing resources. The commissioner
and staff have determined that seeking additional resources in
these times is not enough and that an effort has to be made to meet
the demands. In addition to budget requests, the commission has
revised their internal procedures, amended their regulations last
spring, are seeking to re-amend their regulations this spring and
are proposing this legislation. All these things are being done in
the hopes that the commission can become more effective and cost
efficient in the business of enforcing civil rights.
MS. HALEY said that HB 155 allows the commission to charge fees for
educational services and allows it to hold its hearings out of the
commission office, either in person or through teleconference
participation. It would also allow meetings to be recorded rather
than having them transcribed. The savings and fees which might be
generated would be used for investigator overtime. The Department
of Law determined that investigators were eligible for overtime and
this money is currently not budgeted. The savings could allow some
temporary staff to assist in the case processing.
MS. HALEY explained that HB 155 is part of the commission's efforts
to grapple with investigative delays resulting from the increased
demand on services and to save money and streamline the process.
Number 0908
CHAIRMAN BUNDE asked if there would be problems in the legal
community with the change from transcription to recording.
Number 0925
MS. HALEY stated that transcription is very expensive. A
transcript can make things easier as people can read more quickly
than they can listen. A court reporter can cost anywhere from $800
to $1,000 a day. She has not heard of any concerns about cutting
the transcription. The commission would not be proceeding to
criminal charges because their process is an administrative civil
process.
Number 0983
CHAIRMAN BUNDE described the possible inaccuracies of transcription
and cited the tape of the Constitutional Convention.
Number 1009
CHAIRMAN BUNDE commended the attempt to reduce travel costs.
Number 1026
REPRESENTATIVE PORTER made a motion to move HB 155 with individual
recommendations and zero fiscal note. There being no objection, HB
155 was moved from the House Health, Education and Social Services
Standing Committee.
REPRESENTATIVE DYSON stated that he had served on the Human Rights
Commission up until the end of 1996. He was part of the decision-
making process which brought this legislation forward, and it was
his idea to include subsection 4 on page 1.
CHAIRMAN BUNDE encouraged him to declare his conflict when this
bill came to the floor.
HB 16 - JUVENILE DELINQUENCY PROCEDURES
Number 1093
CHAIRMAN BUNDE announced the next item on the agenda was HB 16, "An
Act relating to delinquent minors, to the taking of action based on
the alleged criminal misconduct of certain minors, to the services
to be provided to the victims of criminal misconduct of minors, and
to agency records involving minors alleged to be delinquent based
on their criminal misconduct; and amending Rule 19 and repealing
Rules 6, 7, 11(a), 12(a), and 21(f), Alaska Delinquency Rules." He
referred to the seven fiscal notes.
Number 1107
BRUCE CAMPBELL, Legislative Assistant for Representative Kelly,
referred to the fiscal notes. He said the Department of Law is
estimating that approximately 20 cases might occur through the dual
sentencing provision. The Alaska Court System has used that number
to create their fiscal note comprised of what it would cost the
court system to handle 20 additional cases. The Department of
Corrections would be receiving children from dual sentencing.
These juveniles would be coming out of youth corrections and if
they receive an adult sentence, they would then be forwarded to
adult corrections which would cause a future fiscal note. If the
Department of Law has additional work, then the Office of Public
Advocacy and the Public Defender Agency would be involved in some
fashion.
REPRESENTATIVE PETE KELLY, sponsor of HB 16, stated that his first
reaction to the fiscal note, which predicted the number of cases,
was that it seemed reasonable.
Number 1238
REPRESENTATIVE PORTER did not have any reason to believe that the
estimate of cases is not reasonable, but he questioned the
deduction which would result if the function occurred somewhere
else. He stated that the juvenile procedure, in some instances,
can be just as expensive as the adult procedure. He felt there was
some room for adjustment.
Number 1270
CHAIRMAN BUNDE described dual sentencing. There is a juvenile
sentence, with a kicker of an adult sentence if the juvenile
sentence does not encourage the juvenile to behave more like a
juvenile instead of an adult.
Number 1318
REPRESENTATIVE PORTER mentioned that HB 16 could be viewed as
giving juveniles, who are in the position of making a significant
decision about their life, some additional impetus to make the
right kind of decision. This could ultimately cut down on the
amount of cases seen by the Division of Family and Youth Services
and the Alaska Court System. This bill creates a reality. It says
that the state will allow you to be in the juvenile system, but if
you don't play by the rules then you will go to the adult system.
He has seen some success with waiving kids to adult court and he
felt that HB 16 would also be effective.
Number 1371
REPRESENTATIVE KELLY felt HB 16 was the perfect augment to the
juvenile waiver bill. There will be fewer cases where trouble will
arise from having an artificial line drawn at a specific age. A
line is drawn at the age of 13, but it is still far better than
just having an adult waiver without a companion bill.
Number 1395
REPRESENTATIVE PORTER made a motion to move HB 16 with individual
recommendations and the attached fiscal notes. There being no
objection, HB 16 was moved from the House Health, Education and
Social Services Standing Committee.
REPRESENTATIVE KELLY said he would pursue the fiscal notes in the
House Finance Committee.
Number 1422
ADJOURNMENT
There being no further business to conduct, CHAIRMAN BUNDE
adjourned the meeting of the House Health, Education and Social
Services Standing Committee at 4:25 p.m.
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