Legislature(1993 - 1994)
04/21/1994 10:00 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 21, 1994
10:00 a.m.
TAPES
SFC-94, #77, Side 1 (000-end)
SFC-94, #77, Side 2 (end-250)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 10:00 a.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Rieger,
and Kerttula were present. Senators Sharp, Jacko, and Kelly
joined the meeting after it was in progress.
ALSO ATTENDING: John Bitney, aide to Representative Ron
Larson; Juanita Hensley, Chief, Driver Services, Division of
Motor Vehicles, Department of Public Safety; Ron King,
Project Manager for Mobile Sources, Environmental
Specialist, Air Quality Management Section, Division of
Environmental Quality, Department of Environmental
Conservation; Randy Welker, Legislative Auditor, Legislative
Audit Division; Jetta Whittaker, fiscal analyst, Mike
Greany, Director, Legislative Finance Division;
representatives of the media, aides to committee members and
other members of the legislature.
SUMMARY INFORMATION
SCSCSHB 370(FIN): An Act making appropriations for the
operating and loan program expenses of
state government and to capitalize
funds; making appropriations under art.
IX, sec. 17(c), Constitution of the
State of Alaska, from the constitutional
budget reserve fund; and providing for
an effective date.
The committee rescinded its action of
March 20, 1994 and returned SCSCSHB
370(FIN) to committee for a further
amendment. Amendment 1 was ADOPTED.
SCSCSHB 370(FIN) was REPORTED out of
committee with a "do pass."
SB 357: An Act relating to certain study,
publication, and reporting requirements
by and to state agencies; relating to
certain fees for reports; and providing
for an effective date.
Amendments 1, 2, and 3 were ADOPTED.
CSSB 357(FIN) was REPORTED out of
committee with a "do pass," and zero
fiscal notes for the following
departments: Department of Revenue;
Department of Commerce & Economic
Development -(AIDEA), Occupational
Licensing, & Banking, Sec. & Corps.;
Department of Natural Resources;
Department of Education - Community
Schools & Postsecondary; Department of
Administration -Computer Services;
Department of Administration - APOC,
Pioneers' Homes, Finance, & Telecommun-
ications Services; Department of Public
Safety - Violent Crimes & All;
Department of Military & Veteran
Affairs; and Office of the Governor.
CSSB 365(STA): An Act relating to the improvement of
state finances and fiscal accountability
by increasing fees, by collecting
additional revenue, by reducing certain
program expenditures by changing
services or eligibility requirements for
programs, by changing certain statutory
limitation periods, by providing for use
of certain electronic records, by making
changes to state agency functions or
procedures including certain reporting
and planning procedures, and by
authorizing extensions for state leases
for real property if certain savings can
be achieved; and providing for an
effective date.
Amendments 1 and 6 were ADOPTED.
Amendments 2 and 3 were HELD. Amendment
4 was ADOPTED and then the committee
rescinded its action. Juanita Hensley
spoke to amendment 4. Amendment 7
FAILED. CSSB 365(FIN) was REPORTED out
of committee with a "do pass," zero
fiscal notes for the Department of
Public Safety - Fire Suppression, and
Driver Services; Depart-ment of
Administration - Leasing; Office of the
Governor; Department of Transportation &
Public Facilities; Department of
Environmental Conservation - Water &
Waste; Department of Labor - Workers'
Compensation; Department of Corrections
- Inmate Health Care; Department of Law;
and two fiscal notes for the Department
of Public Safety - Troopers, Admin. for
$253.1 and Troopers, Detachments for
$1,687.5.
SB 376: An Act relating to fees charged by state
agencies for certain services and to
reimbursement for expenses incurred by
the state in providing certain services;
and providing for an effective date.
Ron King, Project Manager for Mobile
Sources, Environmental Specialist, Air
Quality Management Section, Division of
Environmental Quality, Department of
Environmental Conservation, spoke to Co-
chair Frank's concerns. Amendments 1,
2, and 3 were ADOPTED. CSSB 376(FIN)
was REPORTED out of committee with a "do
pass," zero fiscal notes for the
Department of Public Safety-Fire, the
Department of Corrections and the
Department of Revenue (0.4 revenue), a
fiscal note for the Department of
Environmental Conservation for $128.0
($670.2 revenue) and a fiscal note for
the Department of Public Safety for
$1.5.
SB 377: An Act relating to state agency fiscal
procedures; and providing for an
effective date.
Amendment 1, 3, 4, and 5 were ADOPTED.
John Bitney, aide to Representative
Larson, spoke to amendment 2. Amendment
2 was HELD. CSSB 377(FIN) was REPORTED
out of committee with a "do pass," a
zero fiscal note for the Department of
Revenue, and a revenue fiscal note for
the Department of Administration -
Statewide for $(147.7).
Senate CS FOR CS FOR House Bill 370(FIN):
An Act making appropriations for the operating and loan
program expenses of state government and to capitalize
funds; making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date.
CO-CHAIR PEARCE announced that SCSCSHB 370(FIN) was before
the committee.
CO-CHAIR FRANK MOVED to rescind the committee's action in
passing out SCSCSHB 370(FIN) for the purposes of a further
amendment. No objection being heard, SCSCSHB 370(FIN) was
again before the committee.
Co-chair Frank MOVED amendment 1 regarding senior citizens
disabled veterans' tax relief program and renter's
equivalency rebate. He said it would be funded at $2M, the
same level as last year. No objection being heard,
amendment 1 was ADOPTED for incorporation into SCSCSHB
370(FIN).
Co-chair Frank MOVED for passage of SCSCSHB 370(FIN) as
amended from committee with individual recommendations. No
objection being heard, SCSCSHB 370(FIN) as amended was
REPORTED out of committee with a "do pass." Co-chairs
Pearce and Frank, Senators Kelly, Rieger and Sharp signed
"do pass." Senator Kerttula signed "no recommendation."
CS FOR SENATE BILL NO. 365(STA):
An Act relating to the improvement of state finances
and fiscal accountability by increasing fees, by
collecting additional revenue, by reducing certain
program expenditures by changing services or
eligibility requirements for programs, by changing
certain statutory limitation periods, by providing for
use of certain electronic records, by making changes to
state agency functions or procedures including certain
reporting and planning procedures, and by authorizing
extensions for state leases for real property if
certain savings can be achieved; and providing for an
effective date.
Co-chair Pearce announced that CSSB 365(FIN) version "K" had
been adopted on April 14 and was before the committee.
SENATOR RIEGER MOVED amendment 1. No objection being heard,
amendment 1 was ADOPTED.
Co-chair Pearce announced, with concurrence from Senator
Sharp, that amendment 2 would not be offered.
Co-chair Pearce announced amendment 3 by Senator Jacko would
not fit under the present title. Senator Jacko was not
present at the time this amendment was discussed. Amendment
3 was HELD.
Co-chair Pearce announced that amendment 4 was proposed by
the Department of Public Safety relating to farm vehicles.
Senator Rieger MOVED amendment 4. No objection being heard,
amendment 4 was ADOPTED.
SENATOR KERTTULA asked for clarification of amendment 4.
JUANITA HENSLEY, Chief, Driver Services, Division of Motor
Vehicles, Department of Public Safety, said amendment 4
brought state statutes in compliance with the federal Motor
Vehicle Safety Act. One section of the statue said farm
vehicles can move within a 300-mile radius of the farm and
another set said it can move within a 150-mile radius.
Federal law mandated a 150-mile radius so that to be in
compliance, there cannot be any more allowances over the
150-mile radius. Senator Kerttula said the 150-mile radius
did not fit Delta to Anchorage or Delta to Homer but the 300
mile radius did. He opposed changing the statutes.
Senator Kerttula MOVED to rescind the adoption of amendment
4. Co-chair Frank raised questions about federal
compliance. Ms. Hensley said one of the problems was the
statute related to commercial-sized vehicles and there were
safety concerns. She went on to say that if the state did
not come into federal compliance, which was tied to ISTEA,
it jeopardized federal highway funds. This non-compliance
needed to be cleared up so Department of Transportation &
Public Facilities did not lose 10 percent of its highway
funds. She said the federal government had put the state on
notice that it was in non-compliance in this area. She did
not know when the funds would be withheld.
In answer to Co-chair Frank, Ms. Hensley said the federal
government had looked at all statutes and discovered the
discrepancy in two different statutes.
Co-chair Pearce called for a show of hands on the motion to
rescind the adoption of amendment 4. No objection being
heard, the committee RESCINDED its action on adopting
amendment 4.
Senator Rieger proposed amendment 5. Co-chair Pearce
OBJECTED for discussion purposes. She invited Randy Welker,
Legislative Auditor, Legislative Audit Division, to join the
committee at the table. Senator Rieger said he was prepared
to withdraw the amendment since progress had been made with
the Department of Transportation & Public Facilities
regarding construction lists.
Co-chair Pearce, however, asked Mr. Welker if he wanted to
speak to Section 25. RANDY WELKER said he had been asked to
look at two sections. One that dealt with extending leases
to achieve savings, and the other allowing a small
procurement code to apply to leases under $5,000 month. He
felt both provisions were reasonable.
Co-chair Pearce confirmed that amendment 5 was withdrawn.
Senator Rieger agreed.
Co-chair Pearce explained the provisions of amendment 6
which would require the Department of Transportation &
Public Facilities to provide the legislature a construction
forecast and proposed projects list rather than a single
appropriation.
Senator Rieger MOVED amendment 6. No objection being heard,
amendment 6 was ADOPTED.
CSSB 365(FIN) as amended was HELD until later in the meeting
and the following action was taken.
Co-chair Pearce announced that amendment 7 would be before
the committee. Senator Kelly MOVED amendment 7. Co-chair
Pearce OBJECTED for discussion purposes. Senator Kelly said
amendment 7 insured that Hillside residents in Anchorage
would pay something for police protection. Senator Rieger
said he was opposed to the language in amendment 7. He
asked for a few minutes to consider the amendment since it
was the first time he had seen it.
Recess 10:42am
Reconvene 10:45am
Senator Rieger OBJECTED to amendment 7. Co-chair Frank said
he did not understand the whole concept of the problem but
he had supported amendment 1 with assurance that those
troopers would be paid for by the Hillside residents.
Senator Kelly maintained that it was not clear that the
service areas would vote to pay for troopers. This
amendment would force them to pay for police protection even
if they did not vote to pay for troopers.
End SFC-93 #77, Side 1
Begin SFC-93 #77, Side 2
Co-chair Pearce called for a show of hands and amendment 7
FAILED to be ADOPTED.
Co-chair Frank MOVED for passage of SB 365 as amended from
committee. Senators Kelly and Kerttula OBJECTED. Senator
Kelly spoke to his objections regarding amendment 1. Co-
chair Pearce called for a show of hands and the motion
carried on a vote of 5 to 2 (Co-chairs Pearce and Frank,
Senators Sharp, Jacko, Rieger, were in favor, Senators Kelly
and Kerttula were opposed). CSSB 365(FIN) was REPORTED out
of committee with a "do pass," zero fiscal notes for the
Department of Public Safety - Fire Suppression, and Driver
Services; Department of Administration - Leasing; Office of
the Governor; Department of Transportation & Public
Facilities; Department of Environmental Conservation - Water
& Waste; Department of Labor - Workers' Compensation;
Department of Corrections - Inmate Health Care; Department
of Law; and two fiscal notes for the Department of Public
Safety - Troopers, Admin. for $253.1 and Troopers,
Detachments for $1,687.5. Co-chairs Pearce and Frank,
Senators Rieger and Jacko signed "do pass," Senators Kelly
and Kerttula signed "no not pass," and Senator Sharp signed
"no recommendation."
SENATE BILL NO. 376:
An Act relating to fees charged by state agencies for
certain services and to reimbursement for expenses
incurred by the state in providing certain services;
and providing for an effective date.
Co-chair Pearce announced that SB 376 was before the
committee. She explained that SB 215 repealed the
department's ability to prescribe fees for oil discharge
financial responsibility or oil discharge contingency plans.
To be consistent with SB 215, subsections (4) and (5) needed
to be deleted from SB 376 on page 4, lines 19-20.
Co-chair Frank MOVED for amendment 1 deleting (4) and (5).
No objection being heard, amendment 1 was ADOPTED.
Co-chair Frank said he was under the impression that the
Department of Environmental Conservation was going to supply
language that would be more specific on their regulation of
motor fuels to control omissions, and also on the analysis
of the public water system samples authorized for submission
to the department.
RON KING, Project Manager for Mobile Sources, Environmental
Specialist, Air Quality Management Section, Division of
Environmental Quality, Department of Environmental
Conservation, said he believed Section 8 was rather specific
as it was. He provided the committee with a handout (copy
on file, Attachment A). He said the Department could not
charge for just anything, it would have to be a program
designed to regulate or control omissions from mobile
sources.
In answer to Co-chair Frank, Mr. King said the place this
regulation would be used was for the low sulphur diesel
petition. There was currently federal law to require low
sulphur diesel fuel. In order to prepare a petition to be
exempt from that law, the department would utilize this
regulation. The only other program this regulation applied
to was the oxygenated fuels program. It would not be under
the vehicle inspection program. Those were recovered by
fees in another area.
In answer to Senator Rieger, Mr. King said that the fee
would be paid by the distributors of the fuel or refiners of
the fuel, not directly by the citizen. He pointed out
though, in reality, those fees would be passed on to the
consumer.
Co-chair Frank reiterated that he would like the language
narrowed so it was clear this was specific to those programs
and done in consultation with the distributors. Mr. King
said he would work on the language and assured the committee
that the Department had worked with the distributors. Co-
chair Frank said he did not want this provision to look like
a blanket authority for the department.
Co-chair Pearce announced that SB 376 would be HELD until
language could be drafted by the Department on Sections 13
and 14.
Later in the meeting, the committee returned to SB 376 and
the following action was taken.
Co-chair Frank MOVED amendment 2, amending page 5, line 6.
No objection being heard, amendment 2 was ADOPTED.
Co-chair Frank MOVED amendment 3, to clarify programs under
this provision. No objection being heard, amendment 3 was
ADOPTED.
Recess 10:55am
Reconvene 10:57am
At the end of the meeting, the committee returned to SB 376.
Co-chair Frank MOVED for passage of SB 376 as amended from
committee with individual recommendations. No objection
being heard, CSSB 376 was REPORTED out of committee with a
"do pass," zero fiscal notes for the Department of Public
Safety-Fire, the Department of Corrections and the
Department of Revenue (0.4 revenue), a fiscal note for the
Department of Environmental Conservation for $128.0 ($670.2
revenue) and a fiscal note for the Department of Public
Safety for $1.5. Co-chairs Pearce and Frank, Senator Kelly,
Rieger, Jacko and Sharp signed "do pass," and Senator
Kerttula signed "do not pass."
SENATE BILL NO. 377:
An Act relating to state agency fiscal procedures; and
providing for an effective date.
Co-chair Pearce announced that SB 377 was before the
committee. She said there were five suggested amendments.
Co-chair Frank MOVED amendment 1 regarding prorating
language consistent with language in last year's fee bill.
No objection being heard, it was ADOPTED.
JOHN BITNEY, aide to Representative Larson, said that
amendment 2 would delete provisions within the statute that
were currently being used to fund the catastrophic insurance
functions of the state. He understood that currently what
the state did was use lapsing general fund balances at the
end of each fiscal year to fund the catastrophic insurance
account. This language was drafted with the help of the
Office of Management & Budget. This year the House Finance
Committee budgeted it from the Constitutional Reserve Fund
rather than from lapsing balances. He pointed out that
section did fall out of the front section when it failed to
get a three-quarters vote on the house floor. The House
Finance Committee felt that these types of provisions that
the administration had been using to sweep lapsing balances
should be deleted in order to apply that lapsed money
towards the deficit situation.
Co-chair Pearce said amendment 2 would be HELD until Legal
Services could be questioned.
Mr. Bitney said that amendment 3 was another provision where
House Finance Committee was looking to delete sections
within the Executive Budget Act that authorized the
Department of Administration to sweep lapsing balance
accounts at the end of the FY. They would prefer these
funds lapse back into the general fund each year.
Co-chair Frank MOVED amendment 3. Senator Kerttula
OBJECTED. Senator Kerttula WITHDREW his objection. No
further objection being heard, amendment 3 was ADOPTED.
Co-chair Pearce announced amendment 4 was before the
committee. Mr. Bitney said the intention of amendment 4 was
that when the Governor submitted his initial budget proposal
to the legislature, under the repayment section, if an
appropriation had been made as part of his budget
recommendation to the legislature, the Governor shall
propose the amounts that were available and what the payback
provisions should be.
Co-chair Frank MOVED amendment 4. No objection being heard,
amendment 4 was ADOPTED.
Co-chair Pearce said that amendment 5 was proposed by the
Department of Health & Social Services in relation to the
Infant Learning Program. Co-chair Frank MOVED amendment 5.
No objection being heard, amendment 5 was ADOPTED.
Co-chair Pearce announced that SB 377 as amended would be
HELD until Legislative Legal Services spoke to amendment 2.
At this time, the committee returned to SB 365 (see the
section of meetings pertaining to SB 365).
Co-chair Pearce announced that Legislative Legal Services
had recommended that amendment 2 be withdrawn.
Co-chair Frank MOVED for the passage of SB 377 as amended
from committee with individual recommendations. No
objection being heard, CSSB 377(FIN) was REPORTED out of
committee with a "do pass," zero fiscal notes for the
Department of Revenue, and the Department of Administration-
Statewide also showing a revenue of $(147.7). Co-chairs
Pearce and Frank, Senators Rieger, Jacko, Kelly and Sharp
signed "do pass," and Senator Kerttula signed "do not pass."
At this time the committee returned to SB 376 (see portion
of minutes pertaining to SB 376).
SENATE BILL NO. 357:
An Act relating to certain study, publication, and
reporting requirements by and to state agencies;
relating to certain fees for reports; and providing for
an effective date.
Co-chair Pearce announced that SB 357 was before the
committee and she proposed a packet of amendments given to
members which included the additional repeal of certain
annual reports.
Senator Kelly MOVED amendment 1. No objection being heard,
amendment 1 was ADOPTED.
Senator Jacko MOVED amendment 2. No objection being heard,
amendment 2 was ADOPTED.
Senator Sharp MOVED amendment 3. No objection being heard,
amendment 3 was ADOPTED.
Senator Jacko MOVED for passage of SB 357 as amended from
committee with individual recommendations. No objection
being heard, CSSB 357(FIN) was REPORTED out of committee
with a "do pass," and zero fiscal notes for the following
departments: Department of Revenue; Department of Commerce
& Economic Development - (AIDEA), Occupational Licensing, &
Banking, Sec. & Corps.; Department of Natural Resources;
Department of Education - Community Schools & Postsecondary;
Department of Administration - Computer Services; Department
of Administration - APOC, Pioneers' Homes, Finance, &
Telecommun-ications Services; Department of Public Safety -
Violent Crimes & All; Department of Military & Veteran
Affairs; and Office of the Governor. Co-chairs Pearce and
Frank, Senators Kelly, Jacko, Rieger, and Sharp signed "do
pass," and Senator Kerttula signed "no recommendation."
Co-chair Pearce noted that HB 421 and HJR 34 had been
withdrawn from the agenda.
ADJOURNMENT
The meeting was recessed at approximately 11:15 a.m.
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