Legislature(1995 - 1996)

03/18/1996 01:35 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                         
                         March 18, 1996                                        
                           1:35 p.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator John Torgerson, Chairman                                              
 Senator Randy Phillips, Vice Chairman                                         
 Senator Tim Kelly                                                             
 Senator Fred Zharoff                                                          
 Senator Lyman Hoffman                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 SENATE BILL NO. 256                                                           
 "An Act relating to the offices of mayor and mayor pro tempore of             
 a second class city."                                                         
                                                                               
 SENATE BILL NO. 229                                                           
 "An Act relating to employment contributions and to making the                
 state training and employment program a permanent state program;              
 and providing for an effective date."                                         
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 SB 256 - No previous senate committee action.                                 
                                                                               
 SB 229 - See Community & Regional Affairs minutes dated 2/7/96,               
          2/12/96, and 2/21/96 and Labor & Commerce minutes dated              
      3/14/96.                                                                 
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Marla Berg, Aide                                                              
 Senator Al Adams                                                              
 State Capitol, Juneau, AK 99801-1182¶(907)465-3707                            
   POSITION STATEMENT: prime sponsor by request of SB 256                      
                                                                               
 Dwight Perkins, Special Assistant to the Commissioner                         
 Department of Labor                                                           
 P.O. Box 21149, Juneau, AK 99802-1149¶(907)465-2700                           
   POSITION STATEMENT: representing governor-prime sponsor of SB 229           
                                                                               
 Remond Henderson, Director                                                    
 Division of Administrative Services                                           
 Department of Community & Regional Affairs                                    
 P.O. Box 112100, Juneau, AK 99811-2100¶(907)465-4708                          
   POSITION STATEMENT: representing governor-prime sponsor of SB 229           
                                                                               
 Arbe Williams, Director                                                       
 Division of Administrative Services                                           
 Department of Labor                                                           
 P.O. Box 21149, Juneau, AK 99802-1149¶(907)465-2720                           
   POSITION STATEMENT: representing governor-prime sponsor of SB 229           
                                                                               
 David Dean, Director                                                          
 Fairbanks Private Industry Council                                            
 500 1st Ave., Ste. 3, Fairbanks, AK 99701¶(907)456-5189                       
   POSITION STATEMENT: testified on SB 229                                     
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
                SB 256 SECOND CLASS CITY MAYOR                               
                                                                               
 TAPE 96-16 , SIDE A                                                           
                                                                               
 Number 001                                                                    
                                                                               
  CHAIRMAN TORGERSON  called the Senate Community & Regional Affairs           
 Committee meeting to order at 1:35 p.m.  The chairman brought up SB           
 256 as the first order of business before the Senate Community &              
 Regional Affairs Committee.  The chairman called the sponsor's                
 representative to testify.                                                    
                                                                               
 Number 020                                                                    
                                                                               
 MARLA BERG, Aide to Senator Al Adams, prime sponsor of SB 256,                
 stated that under current law, the voters in second class cities              
 cannot elect the mayor.  Mayors of second class cities currently              
 must be elected by and from the council, and serve a one-year term,           
 unless a longer term is approved by ordinance.  SB 256 was                    
 introduced at the request of the City of Savoonga, and it would               
 amend the law so that second class cities would have the option of            
 passing an ordinance to allow election of the mayor by the voters             
 in the community, rather than by the council.  No changes are                 
 requested to the qualification for mayor or powers and duties of              
 the mayor.                                                                    
                                                                               
 Number 035                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asked why they want to do this; was there a            
 personality conflict, or something?                                           
                                                                               
 MS. BERG responded the Mayor of Savoonga has been the mayor for               
 years, so she is not sure exactly what the problem is.                        
                                                                               
 CHAIRMAN TORGERSON stated that Mr. Wongittilin has been mayor in              
 Savoonga for forty years, and he would just like to be elected by             
 the residents of the community, instead of just the members of the            
 council.                                                                      
                                                                               
 SENATOR RANDY PHILLIPS asked if Mayor Wongittilin was supposed to             
 be at the hearing.                                                            
 MS. BERG replied she thought he was going to be present, but                  
 perhaps the airplanes did not get in this morning.                            
                                                                               
 Number 058                                                                    
                                                                               
 SENATOR KELLY made a motion to discharge SB 256 from the Senate               
 Community & Regional Affairs Committee with individual                        
 recommendations.                                                              
                                                                               
 CHAIRMAN TORGERSON, hearing no objection, stated SB 256 was                   
 discharged from committee.                                                    
                                                                               
                                                                               
          SB 229 STATE TRAINING & EMPLOYMENT PROGRAM                         
                                                                               
 Number 070                                                                    
                                                                               
 CHAIRMAN TORGERSON brought up SB 229 as the next order of business            
 before the Senate Community & Regional Affairs Committee.  The                
 chairman called Mr. Perkins to testify.                                       
                                                                               
 Number 075                                                                    
                                                                               
 DWIGHT PERKINS, Special Assistant to the Commissioner, Department             
 of Labor, stated committee members should have in their bill                  
 packets a letter addressed to Senator Torgerson from Mr. Perkins.             
 Mr. Perkins asked if he should review the letter.                             
                                                                               
 CHAIRMAN TORGERSON asked Mr. Perkins to get to the money.  The                
 committee's main concern is to balance the fiscal note.                       
                                                                               
 MR. PERKINS responded, regarding the Municipality of Anchorage, and           
 Fairbanks, that the committee has information before it.  A                   
 representative of the Department of Community & Regional Affairs              
 could best answer questions regarding those numbers.                          
                                                                               
 REMOND HENDERSON, Director, Division of Administrative Services,              
 Department of Community & Regional Affairs, stated the committee              
 has a sheet that breaks down the cost by department.  That is the             
 summary document.  Mr. Henderson runs through the documents in                
 members' bill packets.  The next document in members' packets is              
 the estimated FY97 budget.  This is the FY97 request, but                     
 allocations are based on the budget.  The total amount on that                
 document matches the figure on the fiscal notes prepared for SB               
 229.  The next item in members' packets is the FY96 estimated                 
 budget by category.  Again, the allocation between various                    
 categories was based on estimates.  The next document is the FY95             
 actuals by category.  The next document in members' packets is a              
 description of the various categories.  It defines what is in the             
 employment assistance category.  The support service category is              
 not an administrative cost.  Those are support service costs, such            
 as health care, special services, temporary shelter, all kinds of             
 regional expenses related to the training.                                    
                                                                               
 MR. HENDERSON stated that the next document in members' bill                  
 packets is a summary of the FY95 actuals by category.  The next               
 document shows a summary of the totals for each category.                     
 Following the summary, it's broken down by sub-grant and individual           
 referrals.  Behind that document are all the grantees that receive            
 funds, and the total of that agrees with the summary.  Behind that            
 is a list of individual referrals.  That total also agrees with the           
 summary.  This is for the statewide service delivery area.  The               
 next document is further detail, and provides classification of               
 expenses by category and information by grantee.                              
                                                                               
 SENATOR RANDY PHILLIPS asked what one would buy from Bon Marche.              
 Senator Phillips acknowledged he is overly critical of the program.           
                                                                               
 MR. HENDERSON responded $96.00 was paid for support services, which           
 went for purchase of clothing.                                                
                                                                               
 Number 235                                                                    
                                                                               
 SENATOR KELLY asked, regarding a figure of $121,950.00 in the FY95            
 actuals document for the STEP pilot project, since the whole                  
 program is the STEP pilot project, what was that money for?                   
                                                                               
 MR. HENDERSON replied that figure was money the department RSA'd              
 back to the Department of Labor for a project.  He thinks Ms.                 
 Williams did some research on that project.                                   
                                                                               
 ARBE WILLIAMS, Director, Division of Administrative Services,                 
 Department of Labor, stated that information is outlined in the               
 packet previously supplied to the committee.  There were two small            
 RSAs.  One funded three positions - they were for vocational                  
 counselors for reemployment services in Ketchikan, Anchorage, and             
 Fairbanks.  The other RSA funded a total of 3/4 of vocational                 
 counselors to provide services specific to STEP recipients.                   
                                                                               
 CHAIRMAN TORGERSON asked if there were other questions.                       
                                                                               
 MS. WILLIAMS made a correction to her testimony: the second RSA               
 funded a full-time position in Juneau and Kenai, and a half-time              
 position in Ketchikan.                                                        
                                                                               
 SENATOR KELLY asked if that money is included in what we're looking           
 at as administrative expenses.                                                
                                                                               
 MS. WILLIAMS responded, no.                                                   
                                                                               
 SENATOR KELLY asked if they are planning to do that same thing next           
 year.                                                                         
 MS. WILLIAMS responded they haven't gotten as far as next fiscal              
 year.  They do have one in place for 1996.                                    
                                                                               
 Number 269                                                                    
                                                                               
 SENATOR KELLY asked if that is within or outside existing                     
 administrative expenses, as we have identified them.                          
                                                                               
 MS. WILLIAMS replied it is outside those administrative expenses.             
 Community & Regional Affairs would give that grant.  If they did              
 not want us to provide those services, we just wouldn't do it.  We            
 would stay with the employment services that are paid for by the              
 Federal Wegner-Piser Grant.                                                   
                                                                               
 Number 274                                                                    
                                                                               
 MR. HENDERSON asked Ms. Williams if those would be considered                 
 administrative fees or direct services.                                       
                                                                               
 MS. WILLIAMS responded those are direct services to STEP                      
 recipients, such as workshops on how to complete a resume, those              
 kinds of specialized services.                                                
                                                                               
 CHAIRMAN TORGERSON asked if there are any other questions.                    
                                                                               
 SENATOR RANDY PHILLIPS asked what the school of integrating shiatsu           
 is.                                                                           
                                                                               
 Number 290                                                                    
                                                                               
 DAVID DEAN, Director - Fairbanks Private Industry Council,                    
 testifying from Fairbanks, responded it is massage therapy                    
 training.  It's legitimate.  They have been able to get good jobs.            
                                                                               
 [Due to commentary by committee members, all of Mr. Dean's                    
 testimony is not understandable.]                                             
                                                                               
 SENATOR RANDY PHILLIPS asked if the school is in Fairbanks.                   
                                                                               
 MR. DEAN replied it is.  We also have a person who went through               
 this training and is now employed at the Fairbanks Hospital.                  
                                                                               
 Number 300                                                                    
                                                                               
 CHAIRMAN TORGERSON informed members that there are three amendments           
 before the committee for consideration.  The amendments have been             
 discussed with Mr. Perkins, not that he supports or opposes them,             
 but he does know of their existence.                                          
                                                                               
 CHAIRMAN TORGERSON introduced amendment #1.                                   
                                                                               
 Amendment #1:                                                                 
 Page 1, line 1:                                                               
  Delete " making "                                                            
                                                                               
 Page 1, line 2:                                                               
  Delete " a permanent state program "                                         
                                                                               
 Page 5, following line 25:                                                    
  Insert a new bill section to read:                                           
  " *Sec. 3.   AS 23.15.620, 23.15.625, 23.15.630, 23.15.635,                  
 23.15.640, 23.15.645, 23.15.651, and 23.15.660 are repealed June              
 30, 1998."                                                                    
                                                                               
 Renumber the following bill section accordingly.                              
                                                                               
 CHAIRMAN TORGERSON stated the amendment would put a sunset date in            
 the program.  The idea is to review the program again in two years            
 to see if the concerns of the committee have been met.  That is the           
 intent of amendment #1.                                                       
                                                                               
 Number 312                                                                    
                                                                               
 SENATOR KELLY made a motion to adopt amendment #1.                            
                                                                               
 SENATOR ZHAROFF asked if the committee could get the department's             
 reaction to amendment #1.                                                     
                                                                               
 MR. PERKINS responded the department does not have a problem with             
 the amendment.                                                                
                                                                               
 CHAIRMAN TORGERSON asked if there were other questions.  Hearing              
 none, the chairman asked if there was objection to the amendment.             
                                                                               
 CHAIRMAN TORGERSON, hearing no objection, stated amendment #1 was             
 adopted.                                                                      
                                                                               
 CHAIRMAN TORGERSON introduced amendment #2.                                   
                                                                               
 Amendment #2:                                                                 
                                                                               
 Page 1, line 1:                                                               
  Delete " making "                                                            
                                                                               
 Page 1, line 2:                                                               
  Delete " a permanent state program "                                         
                                                                               
 Page 4, following line 30:                                                    
  Insert a new subsection to read:                                             
   "(d) In making a grant under this section, the council                      
  must require that the qualified entity and grantees of the                   
  qualified entity limit the amount of the grant proceeds spent                
  on administration so that the total spent on administration                  
  from the proceeds of the employment assistance and training                  
  program account, including amounts spent by the council                      
  itself, does not exceed 20 percent."                                         
                                                                               
 CHAIRMAN TORGERSON stated amendment #2 would basically cap                    
 administrative expenses at 20%.  He asked Senator Kelly to move the           
 amendment.                                                                    
                                                                               
 SENATOR KELLY stated there is a line to add.                                  
                                                                               
 CHAIRMAN TORGERSON stated he has that line.  There will be an                 
 amendment to the amendment.                                                   
                                                                               
 SENATOR KELLY stated the idea is that there is about $250,000.00              
 that is required by a federal agreement, so we would exclude that             
 amount from the 20%.                                                          
                                                                               
 Amendment to Amendment #2:                                                    
                                                                               
  Insert: "Administrative expenses exclude the amount collected                
 in accordance with the shared cost requirements of the federal                
 government's OMB Circular A-87 'Cost Principles for State and Local           
 Governments'."                                                                
                                                                               
 SENATOR KELLY made a motion to adopt the amendment to amendment #2.           
 He stated it would increase the amount available for administrative           
 expenses.  They love it.                                                      
                                                                               
 MR. PERKINS replied, they do love it.  He wondered if that language           
 might not be best suited to go on page 2, in the language that                
 begins on line 22.                                                            
                                                                               
 CHAIRMAN TORGERSON stated he didn't really look at where to put the           
 amendment.  Legal Services put the amendment together.  He would              
 rather leave it where Legal Services had it.  But we can raise the            
 issue with them to see if it would be better there.  He doesn't               
 think it matters to the committee.                                            
                                                                               
 SENATOR KELLY made a motion to adopt amendment #2 as amended.                 
                                                                               
 CHAIRMAN TORGERSON asked if there was discussion.                             
                                                                               
 SENATOR ZHAROFF asked if the committee would work with Legal                  
 Services to make sure the amendment is in the appropriate place.              
                                                                               
 CHAIRMAN TORGERSON responded, yes.  He asked if there was any                 
 objection to amendment #2 as amended.                                         
                                                                               
 CHAIRMAN TORGERSON, hearing no objection, stated amendment #2 as              
 amended was adopted.                                                          
                                                                               
 CHAIRMAN TORGERSON introduced amendment #3.                                   
                                                                               
 Amendment #3:                                                                 
                                                                               
 Page 1, line  1:                                                              
  Delete " making "                                                            
                                                                               
 Page 1, line 2:                                                               
  Delete " a permanent state program "                                         
                                                                               
 Page 4, following line 30:                                                    
  Insert a new subsection to read:                                             
   "(d) The council shall establish grant administration                       
  requirements including uniform accounting procedures that                    
  apply to qualified entities and their grantees."                             
                                                                               
 CHAIRMAN TORGERSON stated this amendment is a direct result of the            
 paper-work shuffle we went through the last three weeks, trying to            
 get this information.  Some committee members believe that would              
 not have happened if the program had some type of uniform                     
 accounting system.                                                            
                                                                               
 Number 365                                                                    
                                                                               
 SENATOR KELLY made a motion to adopt amendment #3.                            
                                                                               
 CHAIRMAN TORGERSON asked if there was reaction from the department.           
 Is this another "Love It"?                                                    
                                                                               
 SENATOR ZHAROFF asked what this would call for, other than what is            
 being done now?  Isn't there some sort of standardized reporting              
 form already in place?                                                        
                                                                               
 Number 374                                                                    
                                                                               
 MR. HENDERSON thinks the intent of this section is to try to                  
 implement a system that all grantees and the state would follow.              
 There is a problem with that in that we are bound by the state                
 accounting system, and grantees are not.  He is sure that they                
 probably do not want to modify their systems to comply with the               
 state accounting system.  Nor does he think the state will be able            
 to modify their accounting system to comply with grantees'                    
 accounting systems.  Mr. Henderson stated the problem they ran in             
 to in gathering information was the level of detail they were asked           
 to provide.  We could provide the information by cost category, but           
 we could not tell you by grantee, who spent what on each program.             
 So that was information that had to be gathered by going through              
 individual files.  There are systems that could be set up to                  
 accumulate that information, but he doesn't know if it's something            
 that we necessarily need to collect.  He also does not know if they           
 could get all parties to agree on any one data-collecting system.             
                                                                               
 SENATOR KELLY stated, in that case, he would make a motion to                 
 strike the word "uniform".  Amendment #3 would then read, "The                
 council shall establish grant administration requirements including           
 accounting procedures that apply to qualified entities and their              
 grantees."  That will give some structure, without requiring it all           
 to be exactly the same.                                                       
                                                                               
 SENATOR KELLY moved the amendment to the amendment, striking the              
 word "uniform".                                                               
                                                                               
 CHAIRMAN TORGERSON asked if there was objection.  He asked if the             
 department loved it.                                                          
                                                                               
 MR. PERKINS responded they loved it.                                          
                                                                               
 SENATOR ZHAROFF thinks taking the word "uniform" out makes it a               
 little more acceptable, but he thinks if they are going to get the            
 message across that this is going to sunset in two years, a letter            
 of intent would have been acceptable to accomplish.                           
                                                                               
 MR. PERKINS responded to Senator Zharoff's comment that it may make           
 Senator Zharoff feel more comfortable to know that the department             
 has heard loud and clear the committee's message about wanting more           
 easily obtainable information.                                                
                                                                               
 MR. HENDERSON concurred with Mr. Perkins that DC&RA has also heard            
 the message loud and clear regarding the level of detailed                    
 information that's necessary.  They will have that information                
 prepared beforehand next time.  We won't wait for the request; we             
 now know what kind of information the committee wants to see, and             
 we will have it ready.                                                        
                                                                               
 Number 410                                                                    
                                                                               
 SENATOR KELLY doesn't think amendment #3 would hurt anything, and             
 he made a motion to adopt amendment #3.                                       
                                                                               
 CHAIRMAN TORGERSON asked if there is objection to adopting                    
 amendment #3 as amended.                                                      
                                                                               
 SENATOR ZHAROFF objected for the purpose of making a statement.  He           
 hopes that this doesn't become part of the focal point in trying to           
 get everything accomplished within the next two years, and that it            
 detracts to some degree from the rest of the program.  He knows               
 it's a major concern but he hopes it doesn't become a major                   
 priority of the program.                                                      
                                                                               
 SENATOR KELLY stated it hasn't been in the past, so he doubts if it           
 will be in future.                                                            
                                                                               
 CHAIRMAN TORGERSON imagines that the procedures used to gather this           
 information are the procedures that will be used from now on.                 
                                                                               
 CHAIRMAN TORGERSON, hearing no further objection, stated amendment            
                                                                               
 CHAIRMAN TORGERSON asked if there is discussion on SB 229 as                  
 amended.                                                                      
                                                                               
 Number 420                                                                    
                                                                               
 SENATOR KELLY made a motion to discharge CSSB 229(CRA) as amended             
 from the Senate Community & Regional Affairs Committee with                   
 individual recommendations.                                                   
                                                                               
 CHAIRMAN TORGERSON asked if there was objection.  Hearing none, he            
 stated that SB 229 was discharged from committee.                             
                                                                               
 CHAIRMAN TORGERSON adjourned the Senate Community & Regional                  
 Affairs Committee meeting at 2:07 p.m.                                        
                                                                               

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