Legislature(1999 - 2000)

04/10/2000 04:10 PM RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
           HOUSE RULES STANDING COMMITTEE                                                                                       
                   April 10, 2000                                                                                               
                     4:10 p.m.                                                                                                  
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative John Cowdery, Chairman                                                                                           
Representative Brian Porter                                                                                                     
Representative Joe Green                                                                                                        
Representative Gail Phillips                                                                                                    
Representative Ethan Berkowitz                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Representative Pete Kott                                                                                                        
Representative Reggie Joule                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 225                                                                                                              
"An Act relating to election campaigns and legislative ethics; and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
     - HOUSE RULES COMMITTEE DID NOT CONCUR WITH THE SENATE                                                                     
        AMENDMENTS                                                                                                              
                                                                                                                                
HOUSE BILL NO. 418                                                                                                              
"An Act relating to program receipts collected by the division of                                                               
insurance and to program receipts collected by the Department of                                                                
Community and Economic Development for occupational licenses; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 418(RLS)OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 378                                                                                                              
"An Act eliminating certain taxes under AS 21.09 on premiums from                                                               
the sale of workers' compensation insurance; relating to the                                                                    
establishment, assessment, collection, and accounting for service                                                               
fees for state administration of workers' compensation and worker                                                               
safety programs; establishing civil penalties and sanctions for                                                                 
late payment or nonpayment of the service fee; and providing for an                                                             
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 378(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 334                                                                                                              
"An Act relating to the establishment of and accounting for an                                                                  
administrative cost charge for the state's role in the community                                                                
development quota program and to the appropriation of receipts from                                                             
the charge; and providing for an effective date."                                                                               
                                                                                                                                
     - NO ACTION TAKEN                                                                                                          
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 225                                                                                                                    
SHORT TITLE: CAMPAIGN FINANCE AND LEGISLATIVE ETHICS                                                                            
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 5/05/99      1180     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 5/05/99      1180     (H)  JUD                                                                                                 
 5/06/99               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 5/06/99               (H)  HEARD AND HELD                                                                                      
 5/06/99               (H)  MINUTE(JUD)                                                                                         
 5/06/99               (H)  MINUTE(JUD)                                                                                         
 5/07/99               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 5/07/99               (H)  CSHB 225(JUD) OUT OF COMMITTEE                                                                      
 5/07/99               (H)  MINUTE(JUD)                                                                                         
 5/07/99      1247     (H)  COSPONSOR(S): KOHRING                                                                               
 5/08/99      1259     (H)  JUD RPT  CS(JUD) 2DP 4NR                                                                            
 5/08/99      1260     (H)  DP: JAMES, ROKEBERG; NR: CROFT,                                                                     
 5/08/99      1260     (H)  MURKOWSKI, GREEN, KERTTULA                                                                          
 5/08/99      1260     (H)  ZERO FISCAL NOTE (H.JUD)                                                                            
 5/08/99      1271     (H)  RULES TO CALENDAR  5/8/99                                                                           
 5/08/99      1271     (H)  HELD TO 5/10 CALENDAR                                                                               
 5/10/99      1289     (H)  READ THE SECOND TIME                                                                                
 5/10/99      1290     (H)  JUD  CS ADOPTED UNAN CONSENT                                                                        
 5/10/99      1290     (H)  AM NO  1     FAILED  Y16 N23 A1                                                                     
 5/10/99      1291     (H)  AM NO  2     FAILED  Y16 N19 A5                                                                     
 5/10/99      1291     (H)  AM NO  3     FAILED  Y16 N20 A4                                                                     
 5/10/99      1292     (H)  AM NO  4     FAILED  Y18 N22                                                                        
 5/10/99      1293     (H)  AM NO  5     FAILED  Y17 N21 A2                                                                     
 5/10/99      1294     (H)  ADVANCED TO THIRD READING UNAN                                                                      
                            CONSENT                                                                                             
 5/10/99      1294     (H)  READ THE THIRD TIME  CSHB 225(JUD)                                                                  
 5/10/99      1294     (H)  PASSED Y27 N12 A1                                                                                   
 5/10/99      1294     (H)  EFFECTIVE DATE(S) SAME AS PASSAGE                                                                   
 5/10/99      1295     (H)  KERTTULA  NOTICE OF RECONSIDERATION                                                                 
 5/11/99      1329     (H)  RECONSIDERATION NOT TAKEN UP                                                                        
 5/11/99      1329     (H)  TRANSMITTED TO (S)                                                                                  
 5/12/99      1385     (S)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 5/12/99      1385     (S)  JUD                                                                                                 
 5/14/99               (S)  JUD AT  2:30 PM BELTZ 211                                                                           
 5/14/99               (S)  HEARD AND HELD                                                                                      
 5/14/99               (S)  MINUTE(JUD)                                                                                         
 5/15/99               (S)  JUD AT 12:00 PM BELTZ 211                                                                           
 5/15/99               (S)  MOVED CS (JUD) OUT OF COMMITTEE                                                                     
 5/15/99               (S)  MINUTE(JUD)                                                                                         
 5/16/99      1514     (S)  JUD RPT SCS  1DP 2NR      SAME TITLE                                                                
 5/16/99      1514     (S)  NR: TAYLOR, HALFORD; DP: DONLEY                                                                     
 5/16/99      1514     (S)  (H) ZERO FN (H.JUD)                                                                                 
 5/17/99               (S)  RLS AT 10:30 AM FAHRENKAMP 203                                                                      
 5/17/99               (S)  MINUTE(RLS)                                                                                         
 5/17/99      1565     (S)  RULES TO CALENDAR AND 1DNP  5/17/99                                                                 
 5/17/99      1580     (S)  READ THE SECOND TIME                                                                                
 5/17/99      1580     (S)  JUD SCS ADOPTED UNAN CONSENT                                                                        
 5/17/99      1580     (S)  AM NO  1     ADOPTED UNAN CONSENT                                                                   
 5/17/99      1580     (S)  AM NO  2     FAILED Y6 N14                                                                          
 5/17/99      1581     (S)  AM NO  3     NOT OFFERED                                                                            
 5/17/99      1581     (S)  AM NO  4     FAILED  Y5 N15                                                                         
 5/17/99      1582     (S)  AM NO  5     ADOPTED UNAN CONSENT                                                                   
 5/17/99      1582     (S)  AM NO  6     FAILED  Y5 N15                                                                         
 5/17/99      1583     (S)  AM NO  7     ADOPTED Y12 N8                                                                         
 5/17/99      1584     (S)  ADVANCED TO THIRD READING UNAN                                                                      
                            CONSENT                                                                                             
 5/17/99      1584     (S)  READ THE 3RD TIME SCS CSHB 225(JUD)                                                                 
                            AM S                                                                                                
 5/17/99      1584     (S)  PASSED Y14 N6                                                                                       
 5/17/99      1585     (S)  EFFECTIVE DATE(S) SAME AS PASSAGE                                                                   
 5/17/99      1585     (S)  ELLIS  NOTICE OF RECONSIDERATION                                                                    
 5/18/99      1610     (S)  RECON TAKEN UP - IN THIRD READING                                                                   
 5/18/99      1610     (S)  RETURN TO SECOND FOR AM 9  UNAN                                                                     
                            CONSENT                                                                                             
 5/18/99      1610     (S)  AM NO  9     ADOPTED Y14 N4 A2                                                                      
 5/18/99      1614     (S)  AUTOMATICALLY IN THIRD READING                                                                      
 5/18/99      1615     (S)  RETURN TO SECOND FOR AM 10 UNAN                                                                     
                            CONSENT                                                                                             
 5/18/99      1615     (S)  AM NO 10     FAILED  Y7 N13                                                                         
 5/18/99      1617     (S)  AUTOMATICALLY IN THIRD READING                                                                      
 5/18/99      1617     (S)  PASSED ON RECONSIDERATION Y14 N6                                                                    
 5/18/99      1618     (S)  EFFECTIVE DATE(S) SAME AS PASSAGE                                                                   
 5/18/99      1658     (S)  TRANSMITTED TO (H) AS AMENDED                                                                       
 5/18/99      1590     (H)  HELD UNDER UNFINISHED BUSINESS                                                                      
 5/18/99      1635     (H)  RETAINED IN UNFINISHED BUSINESS                                                                     
 5/19/99      1672     (H)  RETURN TO RULES COMMITTEE                                                                           
 4/10/00               (H)  RLS AT  4:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 418                                                                                                                    
SHORT TITLE: INSURANCE AND OCCUPATIONAL LICENSE FEES                                                                            
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/23/00      2279     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/23/00      2279     (H)  L&C, FIN                                                                                            
 2/28/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 2/28/00               (H)  Moved CSHB 418(L&C) Out of Committee                                                                
 2/28/00               (H)  MINUTE(L&C)                                                                                         
 3/01/00      2356     (H)  L&C RPT CS(L&C) NT 3DP 3NR                                                                          
 3/01/00      2357     (H)  DP: HARRIS, CISSNA, ROKEBERG;                                                                       
 3/01/00      2357     (H)  NR: MURKOWSKI, SANDERS, HALCRO                                                                      
 3/01/00      2357     (H)  2 FISCAL NOTES (2-DCED)                                                                             
 3/24/00               (H)  FIN AT  1:30 PM HOUSE FINANCE 519                                                                   
 3/24/00               (H)  Moved CSHB 418(FIN) Out of Committee                                                                
 3/24/00               (H)  MINUTE(FIN)                                                                                         
 3/24/00               (H)  MINUTE(FIN)                                                                                         
 3/27/00      2710     (H)  FIN RPT CS(FIN) NT 5DP 1NR 1AM                                                                      
 3/27/00      2711     (H)  DP: THERRIAULT, MULDER, BUNDE, MOSES,                                                               
 3/27/00      2711     (H)  FOSTER; NR: DAVIS; AM: GRUSSENDORF                                                                  
 3/27/00      2711     (H)  FISCAL NOTE (DCED)                                                                                  
 3/27/00      2711     (H)  FISCAL NOTE (DCED-#1) 3/1/00                                                                        
 4/10/00               (H)  RLS AT  4:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 378                                                                                                                    
SHORT TITLE: WORKERS COMP AND WORKER SAFETY                                                                                     
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2211     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2212     (H)  L&C, JUD, FIN                                                                                       
 2/16/00      2212     (H)  4 FISCAL NOTES (ADM, DCED, 2-LABOR)                                                                 
 2/16/00      2212     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 2/28/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 2/28/00               (H)  Heard & Held                                                                                        
 2/28/00               (H)  MINUTE(L&C)                                                                                         
 3/03/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 3/03/00               (H)  <Bill Postponed to 3/6>                                                                             
 3/03/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/03/00               (H)  Moved CSHB 378(L&C) Out of Committee                                                                
 3/03/00               (H)  MINUTE(L&C)                                                                                         
 3/06/00               (H)  JUD AT  2:15 PM CAPITOL 120                                                                         
 3/06/00               (H)  Moved CSHB 378(L&C) Out of Committee                                                                
 3/06/00               (H)  MINUTE(L&C)                                                                                         
 3/06/00      2426     (H)  L&C RPT CS(L&C) NT 5DP 1NR                                                                          
 3/06/00      2426     (H)  DP: HARRIS, CISSNA, BRICE, HALCRO,                                                                  
 3/06/00      2426     (H)  ROKEBERG; NR: MURKOWSKI                                                                             
 3/06/00      2427     (H)  4 FNS (ADM, DCED, 2-LABOR) 2/16/00                                                                  
 3/08/00               (H)  FIN AT  2:00 PM HOUSE FINANCE 519                                                                   
 3/08/00               (H)  Moved CSHB 378(L&C) Out of Committee                                                                
 3/08/00               (H)  MINUTE(FIN)                                                                                         
 3/08/00      2451     (H)  JUD RPT CS(L&C) NT 5DP                                                                              
 3/08/00      2452     (H)  DP: CROFT, GREEN, ROKEBERG, KERTTULA,                                                               
 3/08/00      2452     (H)  KOTT                                                                                                
 3/08/00      2452     (H)  4 FNS (ADM, DCED, 2-LABOR) 2/16/00                                                                  
 3/09/00               (H)  FIN AT  9:00 AM HOUSE FINANCE 519                                                                   
 3/09/00               (H)  -- Meeting Canceled --                                                                              
 3/15/00      2491     (H)  FIN RPT CS(L&C) NT 3DP 5NR                                                                          
 3/15/00      2491     (H)  DP: MULDER, DAVIES, PHILLIPS;                                                                       
 3/15/00      2491     (H)  NR: THERRIAULT, BUNDE, FOSTER,                                                                      
 3/15/00      2491     (H)  WILLIAMS, DAVIS                                                                                     
 3/15/00      2491     (H)  2 FISCAL NOTES (GOV/ALL DEPTS, UA)                                                                  
 3/15/00      2491     (H)  3 FNS (DCED, 2-LABOR) 2/16/00                                                                       
 4/10/00               (H)  RLS AT  4:00 PM CAPITOL 120                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
CATHERINE REARDON, Director                                                                                                     
Division of Occupational Licensing                                                                                              
Department of Community & Economic Development                                                                                  
PO Box 110806                                                                                                                   
Juneau, Alaska 99811-0806                                                                                                       
POSITION STATEMENT:  Testified on HB 418.                                                                                       
                                                                                                                                
ANNALEE McCONNELL, Director                                                                                                     
Office of Management & Budget                                                                                                   
Office of the Governor                                                                                                          
PO Box 110020                                                                                                                   
Juneau, Alaska 99811-0020                                                                                                       
POSITION STATEMENT:  Testified on HB 418.                                                                                       
                                                                                                                                
REPRESENTATIVE MULDER, Chair                                                                                                    
House Finance Standing Committee                                                                                                
Alaska State Legislature                                                                                                        
Capitol Building, Room 507                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Provided clarification regarding HB 418.                                                                   
                                                                                                                                
MIKE TIBBLES, Staff                                                                                                             
     to the House Finance Standing Committee                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 511                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Provided clarification regarding HB 418.                                                                   
                                                                                                                                
TOM LAWSON, Director                                                                                                            
Division of Administrative Services                                                                                             
Department of Community & Economic Development                                                                                  
PO Box 110803                                                                                                                   
Juneau, Alaska 99811-0803                                                                                                       
POSITION STATEMENT:  Discussed ASMI funds.                                                                                      
                                                                                                                                
PAUL GROSSI, Director                                                                                                           
Division of Workers' Compensation                                                                                               
Department of Labor & Workforce Development                                                                                     
PO Box 25512                                                                                                                    
Juneau, Alaska 99802-5512                                                                                                       
POSITION STATEMENT:  Discussed an unintended consequence of HB 378,                                                             
which has been corrected in version G.                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-4, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN JOHN COWDERY called the House Rules Standing Committee                                                                 
meeting to order at 4:10 p.m.  Members present at the call to order                                                             
were Representatives Cowdery, Porter, Green, Phillips and                                                                       
Berkowitz.                                                                                                                      
                                                                                                                                
HB 225-CAMPAIGN FINANCE AND LEGISLATIVE ETHICS                                                                                  
                                                                                                                                
CHAIRMAN COWDERY announced that the first order of business would                                                               
be HOUSE BILL NO. 225, "An Act relating to election campaigns and                                                               
legislative ethics; and providing for an effective date."  [Before                                                              
the committee is SCS CSHB 225(JUD) am S.]  Chairman Cowdery                                                                     
recommended that the committee does not concur with the Senate                                                                  
amendments to HB 225.  He requested a motion as such.                                                                           
                                                                                                                                
Number 0119                                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS moved that the House Rules Standing                                                                     
Committee does not concur with SCS CSHB 225(JUD) am S.  There being                                                             
no objection, it was so ordered.                                                                                                
                                                                                                                                
The committee took an at-ease from 4:12 p.m. and was called back to                                                             
order at 4:13 p.m.                                                                                                              
                                                                                                                                
HB 418-INSURANCE AND OCCUPATIONAL LICENSE FEES                                                                                  
                                                                                                                                
CHAIRMAN COWDERY announced that the next order of business would be                                                             
HOUSE BILL NO. 418, "An Act relating to program receipts collected                                                              
by the division of insurance and to program receipts collected by                                                               
the Department of Community and Economic Development for                                                                        
occupational licenses; and providing for an effective date."                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed out that there is a committee                                                                   
substitute (CS), version M, for the committee's consideration.                                                                  
                                                                                                                                
Number 0259                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER moved to adopt CSHB 418, version LS1500\M,                                                                
Utermohle, 4/4/00, as the working document before the committee.                                                                
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG explained that this bill intends to correct                                                             
some of the problems with certain areas of the state government                                                                 
being included in the general fund (GF) category.  This bill                                                                    
provides for the inclusion as designated program receipts of                                                                    
occupational licensing, the Alaska Seafood Marketing Institute                                                                  
(ASMI) programs and adds the receipts from the dive fishery                                                                     
management and those charges and income from the community                                                                      
development quota program (CDQ).  [The bill] provides for a program                                                             
in which the costs of the administration under the CDQ program will                                                             
be reimbursed to the state.  Representative Rokeberg specified that                                                             
this would combine three bills into one: HB 333, the dive fishery                                                               
bill; HB 334, the CDQ program; [and HB 418].                                                                                    
                                                                                                                                
Number 0413                                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS noted that when this bill was heard in                                                                  
House Finance, it was very important to keep the language for the                                                               
dive fishery management assessment in the title in order to assure                                                              
that funding is protected.  She inquired as to why it was not                                                                   
included in this version.                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG remarked, "This particular piece of                                                                     
legislation is the brain child of the [House] Finance committee."                                                               
Therefore, he did not know how to respond.                                                                                      
                                                                                                                                
REPRESENTATIVE BERKOWITZ offered to make a conceptual amendment to                                                              
reinsert the [dive fishery management assessment] language.                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG suggested that the language was not left in                                                             
the title in order to provide flexibility for future "Christmas                                                                 
tree ornaments."                                                                                                                
                                                                                                                                
There was discussion regarding the need to have House Finance staff                                                             
before the committee for questions on HB 418.                                                                                   
                                                                                                                                
REPRESENTATIVE BERKOWITZ turned to the sections referring to the                                                                
receipts of the Department of Community & Economic Development                                                                  
(DCED) and mentioned making it effective immediately.                                                                           
                                                                                                                                
Number 0685                                                                                                                     
                                                                                                                                
CATHERINE REARDON, Director, Division of Occupational Licensing,                                                                
Department of Community & Economic Development, suggested that                                                                  
portion be effective immediately in order to provide latitude for                                                               
"our" budget for fiscal year 2000.                                                                                              
                                                                                                                                
REPRESENTATIVE PHILLIPS stated that she did not recall that being                                                               
presented in the House Finance Committee.  If it was not important                                                              
enough to be brought before House Finance Committee, why is it                                                                  
before the House Rules Committee?  The proper place to have put                                                                 
such an amendment in would have been the House Finance Committee.                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG related his understanding, "It's my                                                                     
particular understanding that this particular bill will ameliorate                                                              
the problems necessary to have additional appropriations in the                                                                 
supplemental budget to keep Occupational Licensing operating in                                                                 
this current fiscal year."  Therefore, making it effective                                                                      
immediately will eliminate that problem.  He noted that was [his                                                                
understanding] from the Chairman of the House Finance Committee.                                                                
                                                                                                                                
REPRESENTATIVE PHILLIPS reiterated the need for such to have been                                                               
raised in the House Finance Committee.                                                                                          
                                                                                                                                
REPRESENTATIVE PORTER indicated agreement, but pointed out that it                                                              
is not unusual for oversights to be brought before the House Rules                                                              
Committee for correction.                                                                                                       
                                                                                                                                
Number 0890                                                                                                                     
                                                                                                                                
ANNALEE McCONNELL, Director, Office of Management & Budget (OMB),                                                               
Office of the Governor, mentioned that she had discussed this issue                                                             
of an immediate effective date with Representatives Mulder and                                                                  
Therriault when the bill was in the House Finance Committee.  She                                                               
had thought there would be an amendment to deal with this issue at                                                              
that time.                                                                                                                      
                                                                                                                                
REPRESENTATIVE MULDER, Chair, House Finance Standing Committee,                                                                 
Alaska State Legislature, explained that a House Rules Committee                                                                
hearing was requested because HB 418 had already moved from the                                                                 
House Finance Committee.  The thought was that the opportunities                                                                
created by HB 333 and HB 334  could be addressed at another time.                                                               
However, there are some components in HB 333 and HB 334 that are                                                                
substantive and needed to be included in HB 418.  Therefore, it was                                                             
felt best to deal with this in committee.  He said, "I think that                                                               
they are consist with the intentions of [HB] 418 and that is to                                                                 
take programs that recognizably funded by users and as such are not                                                             
affecting the fiscal gap and are self-supporting and as such should                                                             
not be counted against a general fund allocation because they are                                                               
separate and they are unique."  Therefore, these are different than                                                             
a general fund program that is a straight draw.  He noted that this                                                             
[bill] would allow the dive fishery and CDQ program to go forward.                                                              
He indicated that in order for these programs to move forward                                                                   
without [this bill], there would have to be a reduction in                                                                      
commercial fishing or subsistence; that would be counterproductive.                                                             
Therefore, placing these programs in HB 418 as a designated program                                                             
receipt, it would allow these programs to continue without counting                                                             
against the general fund allocation.                                                                                            
                                                                                                                                
Number 1071                                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS reiterated the importance for including the                                                             
dive fishery in the title of the legislation that passed out of the                                                             
House Finance Committee.                                                                                                        
                                                                                                                                
REPRESENTATIVE MULDER commented that it is a potential problem;                                                                 
however, he did not fear [the funds not being] returned to those                                                                
receiving the services.  The intention of the designated program                                                                
receipt is that those funds go back towards those programs that pay                                                             
for it.  He acknowledged that it is a "loose fence" around funding.                                                             
                                                                                                                                
REPRESENTATIVE PHILLIPS commented, "That was specifically why we                                                                
included the language."                                                                                                         
                                                                                                                                
REPRESENTATIVE MULDER remarked that perhaps it is necessary to                                                                  
[review] the whole point of the SDBR [statutory designated budget                                                               
receipt].  He explained that they [SDBR programs] are part of the                                                               
general fund, but they are a separate category and do not work                                                                  
against the goal, specifically economic development in this case.                                                               
Therefore, a DBR (designated budget receipt) does return to the                                                                 
specific program.  He guessed that the reason it [the dive fishery                                                              
management assessment] is not in the title is because four very                                                                 
different programs with a common thread of being a designating                                                                  
program are being combined.                                                                                                     
                                                                                                                                
REPRESENTATIVE PHILLIPS inquired as to why, then, the                                                                           
appropriations for the CDQ program is left [in the title].  She                                                                 
reiterated that the dive fishery is not included in the title,                                                                  
although that was very important when heard in the House Finance                                                                
Committee.                                                                                                                      
                                                                                                                                
Number 1296                                                                                                                     
                                                                                                                                
MIKE TIBBLES, Staff to the House Finance Standing Committee, Alaska                                                             
State Legislature, informed the committee that in working with                                                                  
Legislative Legal Services, there was difficulty in satisfying the                                                              
single subject rule.  The reference in the title to the CDQ program                                                             
is relating to a section of the bill outside of the designated                                                                  
program receipts.  Since the dive fishery had to do only with the                                                               
statutory designated program receipts, it was not [inserted in the                                                              
title].  None of the programs that dealt only with the statutory                                                                
designated program receipts were mentioned [in the title] in order                                                              
to comply with the single subject rule and in order to allow                                                                    
flexibility to add something later.                                                                                             
                                                                                                                                
REPRESENTATIVE BERKOWITZ asked if placing the substance of the                                                                  
change in the bill, although not included in the title, would                                                                   
violate the single subject rule.                                                                                                
                                                                                                                                
REPRESENTATIVE MULDER reiterated that they [the programs] are tied                                                              
together with the common thread of program receipts.                                                                            
                                                                                                                                
MR. TIBBLES acknowledged that there is the single subject issue,                                                                
but noted there is also the issue of making the title such that                                                                 
things could not be added or deleted later on in the process.  He                                                               
indicated that by listing each [program] specifically, it would                                                                 
eliminate the possibility of adding something later on.                                                                         
                                                                                                                                
REPRESENTATIVE MULDER stated that he believes Representative                                                                    
Phillips' concerns are addressed in the bill because the receipts                                                               
for Occupational Licensing are specifically listed under                                                                        
subparagraph (X), those for ASMI are under subparagraph (Y), those                                                              
for CDQ are under subparagraph (Z) and the dive fishery program                                                                 
receipts are listed under subparagraph (AA).  The reason for the                                                                
inclusion of the language, "relating to the establishment of an                                                                 
administrative cost charge for the state's role in the community                                                                
development quota program" in the title is because it is a bit                                                                  
different than the other components and [preferable to] having two                                                              
bills.                                                                                                                          
                                                                                                                                
Number 1500                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked if these programs are all completely                                                                 
funded by program receipts.                                                                                                     
                                                                                                                                
REPRESENTATIVE MULDER replied yes.  He also indicated agreement                                                                 
with Representative Green's assessment that these programs are                                                                  
different than Parks, which has some [of both general funds and                                                                 
program receipts].                                                                                                              
                                                                                                                                
CHAIRMAN COWDERY asked if the program receipts return to the                                                                    
specific program [for which the receipts were collected].                                                                       
                                                                                                                                
REPRESENTATIVE MULDER replied yes.  The receipts collected for each                                                             
program return to the program for which it was collected.  In                                                                   
regards to whether the funds can be intermixed, he did not believe                                                              
so.  In the budget process, the legislature designates an                                                                       
allocation toward Occupational Licensing that is currently GFPR                                                                 
(general fund program receipts).  He noted, "Provided for the fact                                                              
that GFPR is a separate BRU within their allocation, they can only                                                              
go toward that function."  If Occupational Licensing had some SDPR                                                              
in it or if the division had more than just SDPR in it, he guessed                                                              
it would be possible, although highly improbable [that the funds                                                                
would intermingle].  Oftentimes, programs are fairly protective of                                                              
their fund sources and know how much has been raised and collected.                                                             
                                                                                                                                
MS. REARDON informed the committee that the division has a statute,                                                             
AS 08.010.065, saying that the department will set fees in order                                                                
that the revenue equals approximately the regulatory cost of each                                                               
profession.  Therefore, mingling of funds would be violating that                                                               
statute.  Furthermore, the frequent audits over fee setting would                                                               
probably quickly identify such a violation.                                                                                     
                                                                                                                                
REPRESENTATIVE MULDER commented that the legislature could actually                                                             
take the money [such program receipts] and place it in another                                                                  
area.  However, the legislature would be "more or less" in                                                                      
violation of statute.                                                                                                           
                                                                                                                                
Number 1696                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked, "Is it because the legislature does                                                                 
maintain the authority, if we wanted to even though we'd be going                                                               
against our own statute, or is it because it's not general fund, it                                                             
[they are] program receipts [which are] separate that we don't get                                                              
in trouble with violations."                                                                                                    
                                                                                                                                
REPRESENTATIVE MULDER answered that it is the former.                                                                           
                                                                                                                                
CHAIRMAN COWDERY inquired as to whether the ASMI dollars would be                                                               
subject to reprogramming or administrative fees.                                                                                
                                                                                                                                
MS. McCONNELL pointed out that a separate fund code is used for                                                                 
each program, and therefore they [the funds] would not be moved to                                                              
other programs.                                                                                                                 
                                                                                                                                
CHAIRMAN COWDERY inquired as to how the administrative fees are                                                                 
established.                                                                                                                    
                                                                                                                                
TOM LAWSON, Director, Division of Administrative Services,                                                                      
Department of Community & Economic Development, explained that ASMI                                                             
has to budget for its staff and travel expenses, which are part of                                                              
the budget presented to the legislature each year.  The ASMI funds                                                              
that come in under this bill cannot be used for anything except                                                                 
ASMI-related expenses.                                                                                                          
                                                                                                                                
REPRESENTATIVE PORTER stated that due to this statute and existing                                                              
law, these funds will be designated to the agencies that develop                                                                
the fees.  However, this should not be interpreted to mean that                                                                 
this is designating funds past what is required for an annual                                                                   
review and reappropriation by the legislature.                                                                                  
                                                                                                                                
MS. McCONNELL agreed.                                                                                                           
                                                                                                                                
Number 1888                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER moved to report CSHB 418, version M, out of                                                               
committee with individual recommendations.                                                                                      
                                                                                                                                
REPRESENTATIVE BERKOWITZ objected and noted that he had an                                                                      
amendment that he wanted to offer.                                                                                              
                                                                                                                                
REPRESENTATIVE PORTER rescinded his prior motion.                                                                               
                                                                                                                                
REPRESENTATIVE BERKOWITZ explained that his amendment addressed                                                                 
making DCED receipts, under subparagraph (X), effective                                                                         
immediately.                                                                                                                    
                                                                                                                                
REPRESENTATIVE PHILLIPS requested that the House Finance chairman                                                               
respond to that amendment as it did not come up in the House                                                                    
Finance Committee.                                                                                                              
                                                                                                                                
REPRESENTATIVE MULDER said that he concurred with that amendment.                                                               
                                                                                                                                
Number 1975                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ clarified that the amendment would read as                                                             
follows on page 5, insert "Section 10 Section 1(X) takes effect                                                                 
immediately under AS 01.10 (indisc.)"  There being no objection,                                                                
the amendment was adopted.                                                                                                      
                                                                                                                                
Number 1989                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER moved to report CSHB 418 as amended out of                                                                
committee with individual recommendations.  There being no                                                                      
objection, it was so ordered and CSHB 418(RLS) was reported from                                                                
the House Rules Standing Committee.                                                                                             
                                                                                                                                
HB 378-WORKERS COMP AND WORKER SAFETY                                                                                           
                                                                                                                                
CHAIRMAN COWDERY announced that the final order of business would                                                               
be HOUSE BILL NO. 378, "An Act eliminating certain taxes under AS                                                               
21.09 on premiums from the sale of workers' compensation insurance;                                                             
relating to the establishment, assessment, collection, and                                                                      
accounting for service fees for state administration of workers'                                                                
compensation and worker safety programs; establishing civil                                                                     
penalties and sanctions for late payment or nonpayment of the                                                                   
service fee; and providing for an effective date."                                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG informed the committee that subsequent to                                                               
passage of HB 378 from the House Labor & Commerce Committee it was                                                              
discovered that there was an unintended consequence.  He requested                                                              
that Mr. Grossi speak to that unintended consequence.                                                                           
                                                                                                                                
Number 2039                                                                                                                     
                                                                                                                                
PAUL GROSSI, Director, Division of Workers' Compensation,                                                                       
Department of Labor & Workforce Development, informed the committee                                                             
that the unintended consequence had to do with the annual fee being                                                             
charged on claims from injuries prior to the effective date in                                                                  
which a premium tax had been previously charged.  Therefore, the                                                                
insurance industry developed a way in which that fee could be                                                                   
repaid through the premium tax in order to prevent that "double                                                                 
charge."                                                                                                                        
                                                                                                                                
REPRESENTATIVE PORTER moved to adopt CSHB 378, version GH2072\G,                                                                
Ford, 4/10/00, as the working document before the committee.  There                                                             
being no objection, it was so ordered.                                                                                          
                                                                                                                                
CHAIRMAN COWDERY inquired as to the difference between the original                                                             
version and version G.                                                                                                          
                                                                                                                                
MR. GROSSI explained that the problem, as pointed out by the                                                                    
insurance industry, with the current language is that it would                                                                  
cause the fee to be charged on injuries prior to the effective date                                                             
in which a premium tax had been charged on the premium.  In order                                                               
to prevent that, the insurance industry offered language that would                                                             
allow the fee to come out of the premium tax and prevent "double                                                                
charging."  He agreed that version G fixes that problem.                                                                        
                                                                                                                                
Number 2209                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER moved to report CSHB 378, version G, out of                                                               
committee with individual recommendations.  There being no                                                                      
objection, it was so ordered and CSHB 378(RLS) was reported from                                                                
the House Rules Standing Committee.                                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Rules Standing Committee meeting was adjourned at 4:43 p.m.                                                                     

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