Legislature(1993 - 1994)

03/23/1993 03:00 PM HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
           HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                         
                       STANDING COMMITTEE                                      
                         March 23, 1993                                        
                            3:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Cynthia Toohey, Co-Chair                                                
  Rep. Con Bunde, Co-Chair                                                     
  Rep. Gary Davis, Vice Chair                                                  
  Rep. Al Vezey                                                                
  Rep. Pete Kott                                                               
  Rep. Harley Olberg                                                           
  Rep. Bettye Davis                                                            
  Rep. Irene Nicholia                                                          
  Rep. Tom Brice                                                               
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 82:    "An Act relating to school construction grants and                 
            major maintenance grants to school districts;                      
            providing for school district participation in the                 
            cost of school construction and major maintenance;                 
            creating a major maintenance grant fund; and                       
            providing for an effective date."                                  
                                                                               
            HEARD AND HELD TO TIME CERTAIN                                     
                                                                               
  HB 83:    "An Act making appropriations for construction and                 
            major maintenance of schools; and providing for an                 
            effective date."                                                   
                                                                               
            HEARD AND HELD TO TIME CERTAIN                                     
                                                                               
  *HB 12:   "An Act relating to health insurance for small                     
            employers; and providing for an effective date."                   
                                                                               
            NOT HEARD - POSTPONED AT SPONSOR'S REQUEST                         
                                                                               
  (* First public hearing.)                                                    
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  None                                                                         
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB  82                                                                
  SHORT TITLE: SCHOOL CONSTRUCTION & MAINTENANCE GRANTS                        
  BILL VERSION:                                                                
  SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                 
                                                                               
  TITLE: "An Act relating to school construction grants and                    
  major maintenance grants to school districts; providing for                  
  school district participation in the cost of school                          
  construction and major maintenance; creating a major                         
  maintenance grant fund; and providing for an effective                       
  date."                                                                       
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  01/22/93       131    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/22/93       132    (H)   HES, FINANCE                                     
  01/22/93       132    (H)   -FISCAL NOTE  (DOE) 1/22/93                      
  01/22/93       132    (H)   -2 ZERO FNS (DOT, REV) 1/22/93                   
  01/22/93       132    (H)   GOVERNOR'S TRANSMITTAL LETTER                    
  02/09/93              (H)   HES AT 03:00 PM CAPITOL 106                      
  02/09/93              (H)   MINUTE(HES)                                      
  03/09/93              (H)   HES AT 03:00 PM CAPITOL 106                      
  03/09/93              (H)   MINUTE(HES)                                      
  03/16/93              (H)   HES AT 03:30 PM CAPITOL 106                      
  03/16/93              (H)   MINUTE(HES)                                      
  03/23/93              (H)   HES AT 03:00 PM CAPITOL 106                      
                                                                               
                                                                               
  BILL:  HB  83                                                                
  SHORT TITLE: APPROP:SCHOOL CONSTRUCTION GRANT FUND                           
  BILL VERSION:                                                                
  SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                 
                                                                               
  TITLE: "An Act making appropriations for construction and                    
  major maintenance of schools; and providing for an effective                 
  date."                                                                       
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  01/22/93       134    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/22/93       134    (H)   HES, FINANCE                                     
  01/22/93       134    (H)   -REVENUE FN (REV)  1/22/93                       
  01/22/93       134    (H)   -ZERO FISCAL NOTE (DOT) 1/22/93                  
  01/22/93       134    (H)   GOVERNOR'S TRANSMITTAL LETTER                    
  02/09/93              (H)   HES AT 03:00 PM CAPITOL 106                      
  02/09/93              (H)   MINUTE(HES)                                      
  03/09/93              (H)   HES AT 03:00 PM CAPITOL 106                      
  03/09/93              (H)   MINUTE(HES)                                      
  03/16/93              (H)   HES AT 03:30 PM CAPITOL 106                      
  03/16/93              (H)   MINUTE(HES)                                      
  03/23/93              (H)   HES AT 03:00 PM CAPITOL 106                      
                                                                               
                                                                               
  BILL:  HB  12                                                                
  SHORT TITLE: GROUP HEALTH INS. FOR SMALL EMPLOYERS                           
  BILL VERSION: SSHB 12                                                        
  SPONSOR(S): REPRESENTATIVE(S) B.DAVIS,Ulmer,Nordlund,Brice                   
                                                                               
  TITLE: "An Act relating to health insurance for small                        
  employers; and providing for an effective date."                             
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  01/04/93        27    (H)   PREFILE RELEASED                                 
  01/11/93        27    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        27    (H)   HES, L&C, JUDICIARY, FINANCE                     
  01/27/93       167    (H)   COSPONSOR(S): NORDLUND                           
  02/10/93       312    (H)   COSPONSOR(S): BRICE                              
  02/18/93       380    (H)   SPONSOR SUBSTITUTE                               
                              INTRODUCED-REFERRALS                             
  02/18/93       380    (H)   HES, L&C, JUDICIARY, FINANCE                     
  03/23/93              (H)   HES AT 03:00 PM CAPITOL 106                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
  TAPE 93-43, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIR BUNDE called the meeting to order at 3:03 p.m.  He                     
  announced that the meeting would adjourn at 3:30 p.m., when                  
  a meeting of the House majority caucus was due to begin.  He                 
  then noted members present and brought HB 82 and HB 83 to                    
  the table.  He announced the meeting was being                               
  teleconferenced.                                                             
                                                                               
  HB 82 - SCHOOL CONSTRUCTION AND MAINTENANCE GRANTS                           
                                                                               
  HB 83 - APPROP: SCHOOL CONSTRUCTION GRANT FUND                               
                                                                               
  Number 041                                                                   
                                                                               
  CHAIR BUNDE invited testimony from those attending the                       
  meeting in Juneau, or by teleconference at remote sites.                     
  Hearing none, he closed public testimony and began committee                 
  discussion.  He asked Rep. Vezey, chairman of a subcommittee                 
  appointed March 16, 1993, to give a report on the                            
  subcommittee's work.                                                         
                                                                               
  REP. VEZEY said the subcommittee met April 16 and 17, and                    
  while he could not say they reached a consensus or decision,                 
  he said they did review a draft committee substitute he had                  
  presented.  He stated he believed the subcommittee was at                    
  the point of addressing the formula for local funding.  The                  
  subcommittee unanimously supported the idea of matching                      
  local grants as a way to police the demand on limited state                  
  funds, and discussed the maximum and minimum amounts for                     
  contribution by local school districts or REAAs.  He asked                   
  Rep. G. Davis if he had made a fair assessment of the                        
  meeting.                                                                     
                                                                               
  Number 078                                                                   
                                                                               
  REP. G. DAVIS answered yes.                                                  
                                                                               
  REP. NICHOLIA said she had not received a copy of the                        
  subcommittee's working draft.                                                
                                                                               
  Number 090                                                                   
                                                                               
  REP. VEZEY offered to have copies made for distribution.                     
                                                                               
  CHAIR BUNDE asked Rep. Vezey whether the subcommittee                        
  developed a majority opinion, if not a consensus, on any of                  
  the several options he said the subcommittee had agreed                      
  upon.                                                                        
                                                                               
  REP. VEZEY said the subcommittee had more than a consensus.                  
  He stated they had a representative from an REAA (Rural                      
  Education Attendance Area) who expressed the concerns of the                 
  REAAs, but the subcommittee had not come up with a solution.                 
  While all members agreed on the need for matching grants,                    
  they did not agree on the formula; three of four votes might                 
  have gone the same way.  He said the subcommittee was unable                 
  to find common ground between the matching grant levels in                   
  HB 82 and the working draft of the bill considered by the                    
  subcommittee.                                                                
                                                                               
  Number 117                                                                   
                                                                               
  REP. G. DAVIS said the subcommittee had come to a consensus                  
  on eliminating the sliding scale of increasing percentages                   
  of local matching grants levels.  He suggested the committee                 
  consider the issue.                                                          
                                                                               
  CHAIR BUNDE, as a long-time speech teacher, noted that                       
  "consensus" meant that all members agreed, and if the                        
  subcommittee did not have consensus, then it did not have                    
  total agreement.  He asked Rep. G. Davis if he would                         
  introduce an amendment concerning sliding scales.                            
                                                                               
  Number 140                                                                   
                                                                               
  REP. G. DAVIS moved deletion of language in HB 82 on page 2,                 
  lines 27-31.                                                                 
                                                                               
  CHAIR BUNDE stated, "As I read that, that's for the ADM                      
  (Average Daily Membership) of over $100,000.  We do have a                   
  percentage district participation share of $1 to $100,000."                  
                                                                               
  REP. G. DAVIS said, "Yes, it creates some additional cost to                 
  the district for those ADMs over $100,000."                                  
                                                                               
  (Rep. B. Davis arrived at 3:12 p.m.)                                         
                                                                               
  Number 168                                                                   
                                                                               
  CHAIR BUNDE notified Rep. B. Davis that the committee would                  
  adjourn at 3:30 p.m. for the majority caucus.  He asked for                  
  a motion to accept the committee substitute considered by                    
  Rep. Vezey's subcommittee as a working document.                             
                                                                               
  REP. VEZEY made the motion.                                                  
                                                                               
  REP. NICHOLIA asked for time to consider the committee                       
  substitute, as it was the first time she and other committee                 
  members had seen the document.                                               
                                                                               
  CHAIR BUNDE said it would be a working document for                          
  discussion purposes and he would not ask members to make                     
  decisions on it in a half hour.  He asked for objections to                  
  the motion.                                                                  
                                                                               
  Number 185                                                                   
                                                                               
  REP. BRICE objected for purposes of discussion.  He said, as                 
  a member of part of the subcommittee, he believed there was                  
  not a consensus on the sliding scale issue, but he believed                  
  the issue deserved discussion.  He asked whether Rep. Olberg                 
  had been present during discussion of that issue.                            
                                                                               
  Number 196                                                                   
                                                                               
  REP. VEZEY said he recalled that there was consensus on                      
  having a flat rate that would not vary over time.  He said                   
  he recalled that Rep. Olberg's concerns were not with the                    
  flat rate, but with the ability of REAAs to come up with                     
  money for their local contribution.                                          
                                                                               
  REP. BRICE recalled his objection.                                           
                                                                               
  Number 206                                                                   
                                                                               
  CHAIR BUNDE declared the motion passed upon hearing no                       
  objection to the motion to adopt the subcommittee committee                  
  substitute as a working committee document.                                  
                                                                               
  Number 210                                                                   
                                                                               
  REP. G. DAVIS announced, for the sake of the teleconference                  
  audience which did not have copies of the work draft, that                   
  the sliding scale provision was not included in the working                  
  draft, and the motion he had made to cut those provisions                    
  from the original HB 82, but which had not been voted upon,                  
  had taken effect.                                                            
                                                                               
  Number 219                                                                   
                                                                               
  CHAIR BUNDE announced that he did not intend to move the                     
  bill out of committee that day and the public would have a                   
  chance to study the bill and any adjustments the committee                   
  made to it.                                                                  
                                                                               
  (Rep. Olberg arrived at 3:15 p.m.)                                           
                                                                               
  (Rep. Kott arrived at approximately 3:15 p.m.)                               
                                                                               
  REP. B. DAVIS asked whether it was the chair's intention                     
  merely to walk through the working draft.                                    
                                                                               
  CHAIR BUNDE answered that was correct.  He asked the sponsor                 
  of the committee substitute to begin such a discussion.                      
                                                                               
  Number 229                                                                   
                                                                               
  REP. VEZEY said he was not completely ready to do a                          
  comparison of the two bills.  He said there was no change to                 
  sections 1 and 2.  In section 3, he removed the words "city                  
  or borough" from line 15 to eliminate the distinction                        
  between types of school districts.  The committee substitute                 
  deleted the sliding scale for local contributions for                        
  construction grants.                                                         
                                                                               
  Number 248                                                                   
                                                                               
  REP. OLBERG asked if the committee members could discuss the                 
  changes.                                                                     
                                                                               
  CHAIR BUNDE answered that Rep. Vezey was presenting an                       
  overview and that discussion would be possible at any time.                  
  However, Rep. Bunde said that given the time limitations, it                 
  might be better to let Rep. Vezey finish his presentation at                 
  the meeting and hold discussion at a later meeting.                          
                                                                               
  Number 256                                                                   
                                                                               
  REP. VEZEY said that Rep. Olberg's objections to the                         
  provisions contained in lines 22-25 had been noted.                          
  He noted the changes in the classification of school                         
  districts, changing the first classification to $0 to                        
  $100,000, instead of $1 to $100,000, to include areas with                   
  no local property value.                                                     
                                                                               
  Number 266                                                                   
                                                                               
  CHAIR BUNDE interrupted Rep. Vezey to comment on the changes                 
  in percentages.                                                              
                                                                               
  Number 268                                                                   
                                                                               
  REP. VEZEY noted the percentage shares had been changed in                   
  the committee substitute to the following categories and                     
  percentage shares:  the category of $0 - $100,000 (which                     
  included REAAs with no local property value) was changed to                  
  20 percent from 5 percent; the category of $100,001 -                        
  $300,000, which included most state schools, including the                   
  Railbelt schools, was changed to 30 percent from 15 percent;                 
  the category of $300,001 - $600,000, which included about                    
  nine schools, was changed to 40 percent from 30 percent; and                 
  the category of $600,000, which included four districts and                  
  above was changed from 40 percent to 50 percent.  He said                    
  the changes were an attempt to develop a reasonable range.                   
                                                                               
  Number 300                                                                   
                                                                               
  REP. VEZEY noted that the escalating clause had been deleted                 
  in the committee substitute.  He said the district's                         
  matching funds could come from any source, including local                   
  taxes and private, state or federal money, but the money                     
  could not come from construction of maintenance funds                        
  established by HB 82.                                                        
                                                                               
  REP. NICHOLIA said, "I'd just like to put this on record                     
  that the rewritten part of section C is totally out of line                  
  from what we had hoped it would have been.  We liked the                     
  original form in the original bill, number 82.  And I think                  
  that it was very much in our favor.  We really liked what                    
  was written there, and don't really concur what has been                     
  rewritten here."                                                             
                                                                               
  Number 321                                                                   
                                                                               
  REP. VEZEY said he was just highlighting the differences in                  
  the two bills and that change was indeed a major difference.                 
  He said he did not believe there were no changes in sections                 
  4, 5, 6 or 7.  He said it was pointed out in the                             
  subcommittee that those were important sections and did                      
  warrant further attention because they established                           
  procedures to establish priorities, involving the                            
  legislature, local communities and school boards and the                     
  Department of Education.  He offered to entertain questions.                 
                                                                               
  CHAIR BUNDE asked the committee members to examine closely                   
  the working draft of HB 82 and to return ready to discuss it                 
  in detail.  He declared his intention to hear HB 82 on                       
  Monday, April 29, and to take action on it.  He also                         
  declared his hope to move HB 83 at that meeting as well, if                  
  possible.                                                                    
                                                                               
  Number 248                                                                   
                                                                               
  REP. VEZEY announced that the subcommittee would meet                        
  Friday, March 26, at 1 p.m.                                                  
                                                                               
  CHAIR BUNDE invited all committee members interested to                      
  attend the subcommittee meeting, and all interested members                  
  of the public to send in written testimony.                                  
                                                                               
  Number 357                                                                   
                                                                               
  REP. B. DAVIS asked if the subcommittee would consider HB 83                 
  as well as HB 82.                                                            
                                                                               
  REP. VEZEY answered that the subcommittee would address both                 
  bills, as it had become clear at previous meetings that the                  
  two needed joint consideration.                                              
                                                                               
  REP. B. DAVIS asked if the subcommittee had finished its                     
  major modifications to HB 82.                                                
                                                                               
  REP. VEZEY said he was inclined to say no, but Rep. B. Davis                 
  would be a better judge of whether the subcommittee had                      
  finished its major revisions.                                                
                                                                               
  CHAIR BUNDE noted again that he expected that there would be                 
  changes and adjustments to the working document, and that                    
  nothing was cast in concrete at that time.                                   
                                                                               
  There being no further business before the committee, CHAIR                  
  BUNDE apologized for the swift adjournment and ADJOURNED the                 
  meeting at 3:27 p.m.                                                         
  House Bill 12 was not heard during this meeting.  It was                     
  postponed at the request of the sponsor.                                     

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