Legislature(1995 - 1996)
03/18/1996 01:35 PM Senate CRA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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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