Legislature(1993 - 1994)
05/03/1994 09:10 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
May 3, 1994
9:10 a.m.
TAPES
SFC-94, #80, Side 2 (238-028)
CALL TO ORDER
Co-chair Drue Pearce convened the meeting at approximately
9:10 a.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Kelly,
Kerttula, and Sharp were present when the meeting commenced.
Senator Jacko arrived soon after it began. Senator Rieger
arrived as it was in progress.
ALSO ATTENDING: Representative Con Bunde; Representative
Peter Kott; Dave Kellyhouse, Director, Division of Wildlife
Conservation, Dept. of Fish and Game; Juanita Hensley,
Chief, Driver Services, Dept. of Public Safety; Patti
Swenson, aide to Representative Bunde; Jeanne Larson, aide
to Representative Martin; and aides to committee members and
other members of the legislature.
SUMMARY INFORMATION
HB 128 - EARLY ACKNOWLEDGEMENT OF PATERNITY
CS SSHB 128 (Fin) was REPORTED OUT of committee
with a $43.3 fiscal note from the Dept. of Health
and Social Services (Vital Statistics) and a zero
note for AFDC.
HB 232 - BOW HUNTING STAMP & BOW HUNTING SAFETY
SCS HB 232 (Res) was REPORTED OUT of committee
with a fiscal note from the Dept. of Fish and Game
showing operating costs of $5.0 and revenues of
$9.1.
HB 239 - RAFFLE OR AUCTION OF BIG GAME PERMITS
SCS CSHB 239 (Res) was REPORTED OUT of committee
with a fiscal note from the Dept. of Fish and Game
showing operating costs of $1.0 and revenues of
$25.0.
HB 328 - PAY MOTOR VEHICLE FEES BY CREDIT CARD
SCS CSHB 328 (Fin) was REPORTED OUT of committee
with a fiscal note from the Dept. of Public Safety
showing $225.0 in operating costs and $322.5 in
revenues.
HB 342 - TOURISM MARKET.COUNCIL/CRUISE SHIP PROMOS
SCS CSHB 342 (Fin) was REPORTED OUT of committee
with a zero fiscal note from the Dept. of Commerce
and Economic Development.
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 128(FIN)
Act relating to paternity determinations and
acknowledgements.
Co-chair Pearce directed that CS SSHB 128 (Fin) be brought
back before committee. She noted that questions were raised
when the bill was previously heard and advised of her
understanding that those questions have now been satisfied.
The Co-chair then queried members, asking if anyone wished
to offer an amendment. Senator Kelly acknowledged that, as
a result of receipt of additional information, he was
satisfied with the bill. Co-chair Pearce called for further
discussion. None was forthcoming.
Senator Kerttula MOVED that CS SSHB 128 (Finance) pass from
committee with individual recommendations. No objection
having been raised, CS SSHB 128 (Finance) was REPORTED OUT
of committee with a zero fiscal note from the Dept. of
Health and Social Services (AFDC) and a $34.3 note from
Dept. of Health and Social Services (Vital Statistics). Co-
chairs Pearce and Frank and Senators Kelly and Jacko signed
the committee report with a "do pass" recommendation.
Senators Kerttula, Rieger, and Sharp signed "no
recommendation."
HOUSE BILL NO. 232
An Act relating to a bow hunting tag and bow hunting
safety; and providing for an effective date.
Co-chair Pearce directed that HB 232 be brought on for
discussion and referenced the Senate Resources version, a
memorandum and sponsor statement from Representative Bunde,
a sectional analysis from Legislative Legal Services,
correspondence in support of the legislation, and
accompanying fiscal notes.
Senator Kelly raised questions concerning the budgeting of
$45.0 for the bow hunting education program. Senator
Kerttula voiced support for the program but stressed that it
should be self- supporting and also cover protection
efforts. PATTI SWENSON, aide to Representative Bunde, came
before committee. She deferred questions relating to the
fiscal note to the department. DAVE KELLYHOUSE, Director,
Division of Wildlife and Conservation, Dept. of Fish and
Game, explained that the department's hunter education
program is supported by Pittman/Robertson and fish and game
funds. The department attempts to refrain from charging for
the course to encourage greater firearm safety and hunter
education. An excise tax on bows and arrows provides a
portion of the funding. The proposed bill would help defray
the cost.
Co-chair Pearce inquired regarding the cost of developing
the safety program. Mr. Kellyhouse advised that he could
not speak to the actual cost since the program relies
heavily upon certified volunteer instructors through the
International Bow Hunter Association. A full-time range 18
position and a clerk typist run the program. The cost of
salaries is $100.0 plus a small operating budget of about
$30.0. With that funding, the program trains approximately
1,000 general hunter education students and qualifies close
to 1,000 bow hunters. In response to further questions from
Senator Kelly, Mr. Kellyhouse explained that bow hunter
safety is only a portion of the much broader hunter
education program. The majority of those enrolled in the
education course are rifle hunters.
Senator Kerttula asked if it would cost more to implement
the program than it is likely to generate in revenues. Mr.
Kellyhouse responded that he did not believe so. He said
that the department would not upscale the program in excess
of revenues.
Senator Kerttula MOVED for passage of SCS HB 232 (Res) with
individual recommendations. No objection having been
raised, SCS HB 232 (Res) was REPORTED OUT of committee with
a fiscal note from the Dept. of Fish and Game showing
operating costs of $5.0 and revenues of $9.1. Co-chair
Pearce and Senators Jacko and Sharp signed the committee
report with a "do pass" recommendation. Senators Kelly,
Kerttula, and Rieger signed "no recommendation." Co-chair
Frank was temporarily absent from the meeting and did not
sign.
HB 239
CS FOR HOUSE BILL NO. 239(RES) am
Act relating to raffles and auctions of certain permits
to take big game; and providing for an effective date.
Co-chair Pearce directed that CSHB 239 (Res)am be brought on
for discussion. REPRESENTATIVE CON BUNDE, sponsor of the
legislation, came before committee. He observed that the
proposed bill is anticipated to generate revenues as high as
$250.0, annually, for the fish and game fund. The program
mirrors those in eleven western states. Outdoorsmen
purchase "these memorial kinds of tags" with the "notion of
giving something back to the sport that they have enjoyed."
The thrust of the bill is to provide a positive revenue flow
in the face of declining budgets.
Co-chair Pearce inquired concerning changes effected in the
Senate Resources bill. Representative Bunde advised that
they address concerns raised by both the department and
outdoor groups. Changes are minor. One would allow the
existing safeguard program, which deals with fish and game
violations, to retain a larger percentage of the proceeds of
a raffle the program presently conducts. A provision was
also added allowing an in-state organization to "get one of
the tags." The department will select the organization
based on ability to generate a positive cash flow. Other
changes are technical.
Senator Sharp MOVED that SCS CSHB 239 (Resources) pass from
committee with individual recommendation. No objection
having been raised, SCS CSHB 239 (Res) was REPORTED OUT of
committee with a fiscal note from the Dept. of Fish and Game
showing a cost of $1.0 and $25.0 in revenue. All members
signed the committee report with a "do pass" recommendation,
with the exception of Senator Kerttula who signed "no
recommendation."
CS FOR HOUSE BILL NO. 328(FIN)
An Act allowing motor vehicle registration and
licensing fees to be paid by credit card.
Co-chair Pearce directed that CSHB 328 (Fin) be brought on
for discussion and advised that it would allow for payment
of motor vehicle fees via credit card. Senator Kelly asked
why the bill would incur a cost. Co-chair Pearce responded
"because the credit card company would get 1-1/2%."
JEANNE LARSON, aide to Representative Martin, came before
committee. She explained that the bill allows individuals
to pay driver license and motor vehicle registration fees by
credit card and authorize use of the credit card via
telephone. She deferred further comment to department
staff.
Co-chair Pearce asked if consideration had been given to
allowing the department to charge the extra percentage so
that the bill would be revenue neutral. Ms. Larson observed
that it was mentioned in passing but not dealt with in
substantial detail.
Senator Rieger pointed to new language within the bill and
asked that the department comment. JUANITA HENSELY, Chief,
Driver Services, Dept. of Public Safety, said that the
department is comfortable with the mandate to establish the
procedures and fees prescribed for credit card payment by
telephone.
Speaking to questions relating to raising the fee to cover
the credit card cost, Ms. Hensley referenced discussion of
the issue in the House. The House was adamant in its
decision not to increase motor vehicle fees to cover credit
card charges.
Co-chair Pearce asked if it was necessary to provide
statutory authority to allow for use of credit cards. Ms.
Hensley said that aside from the Marine Highway System, no
other agency accepts credit cards. The reason for the
proposed legislation is to receive the $225.0 appropriation
for credit card costs. It represents a means of fixing the
funding in the budget.
In response to a question from Senator Rieger, Ms. Hensley
explained that the department has been in contact and
negotiations with banks. The Alaska Bankcard Center is the
clearing house for all credit cards. It is the entity that
has offered the 1-1/2%. It is the department's intent to
allow for use of more than one credit card if the 1-1/2% can
be negotiated. Senator Rieger voiced a preference for use
of "may" rather than "shall" in new language. He expressed
concern that controversy would arise over which credit cards
are allowed and which are not.
Senator Kelly inquired regarding the net result of levying a
$1.00 credit card transaction fee. Ms. Hensely advised of
estimates that 40 to 50% of those renewing licenses would
use credit cards in lieu of cash. The state registers
approximately 605,000 vehicles annually and issues 200,000
identification cards and driver licenses each year. The
$1.00 fee would more than cover the cost. Senator Kelly
asked if it would be possible to register an automobile by
telephone. Ms. Hensley responded affirmatively and spoke to
the workings of a dial-in system in Wisconsin. Senator
Kelly voiced support for that approach.
Pointing to language in the bill, Senator Rieger noted that
it appears individuals will pay an additional $10 unless
registration is conducted by mail. Ms. Hensley advised that
the $10 fee was intended to cut down on the number of people
actually coming to registration offices. Payment by credit
card via telephone would accomplish the same end. Co-chair
Pearce advised that bill language stating "that additional
fees shall be added for registration not conducted by mail"
does not exempt telephone transactions from the $10 fee.
Senator Sharp pointed to language at lines 8 through 9 and
noted that the department may waive the $10.00 fee, by
regulation, and suggested that an exception could be made
for payment by telephone. Ms. Hensely voiced department
intent to waive the $10.00 for credit card renewals
conducted via telephone. Senator Kelly proposed that a
$1.00 fee be levied for credit card transactions. Co-chair
Frank voiced his understanding that an individual who renews
a registration or license at a motor vehicle office and
utilizes a credit card for payment would pay a fee of
$11.00. He then suggested that payment by credit card could
save processing costs.
Discussion of the existing $10.00 fee and proposed fees for
credit card use followed. A number of alternative
approaches were proposed. Co-chair Pearce raised concern
that changes in the $10.00 fee could not be made under the
existing bill title. Senator Kelly MOVED to levy a $5.00
fee on transactions by credit card via telephone. He
advised that the fee would cover the $225.0 cost shown on
the fiscal note. In response to a question from Senator
Sharp asking if the $10.00 fee would apply in addition to
the $5.00 charge, Senator Kelly commented that the $5.00 fee
would encourage individuals to use the phone for renewal
rather than stand in line at a registration office. He
reiterated earlier comments that the department would waive
the $10.00 charge for telephone transactions. Ms. Hensley
concurred. Co-chair Pearce called for a show of hands on
the motion. The amendment was ADOPTED on a vote of 4 to 2.
The department was requested to provide a new fiscal note
for the bill, including an estimate of revenues to be
generated by the $5.00 fee.
Senator Kelly MOVED that SCS CSHB 328 (Finance) pass from
committee with individual recommendations. No objection
having been raised, SCS CSHB 328 (Finance) was REPORTED OUT
of committee with a fiscal note from the Dept. of Public
Safety showing a cost of $225.0 and revenue of $322.5. All
members signed the committee report with a "do pass"
recommendation with the exception of Senator Kerttula who
signed "no rec."
CS FOR HOUSE BILL NO. 342(FIN) am
An Act relating to the Alaska Tourism Marketing
Council; increasing to at least 25 percent the share of
the council's expenses that must be paid through
contributions by an association that contracts to
jointly manage the council; required disclosures in
promotions on board tourism cruise ships; and providing
for an effective date.
Co-chair Pearce directed that CSHB 342 (Finance)am be
brought on for discussion and noted that the Senate version,
SB 341, was reported out of committee last week. The House
bill contains provisions from Senate "gaming on cruise
ships" legislation (SB 370), and it also extends the Alaska
Tourism Marketing Council to December 30, 1998. SB 341
extended the Council to 1996 to conform with SB 370.
REPRESENTATIVE PETE KOTT, sponsor of the legislation, came
before committee. He voiced need for the 1998 sunset date
for the Council since it is more efficient for the
legislature to extend the date as long as possible. The
four-year period is also well established as a sunset date
for numerous boards and commissions. It would also send a
stronger message to ATMC supporters and those involved in
marketing and sales programs. The Dept. of Commerce and
Economic Development is supportive of the bill as currently
written.
Senator Rieger referenced language relating to disclosure of
promotions and advised of his understanding that dollar
amounts would not have to be provided. Representative Kott
concurred. Disclosure would merely have to indicate that
one is paying someone to "promote your business in port."
Senator Rieger asked if that type of promotion would include
a "kickback" on the fee charged by the shoreside operator or
merely an advertising payment. Representative Kott voiced
his recollection that it includes the "kickback."
Senator Sharp noted an ongoing problem with ATMC in that,
over a six-year period, the Council has been unable to reach
agreement and come forward with a method of offsetting
general funds. He suggested that the sunset date should be
"kept as short as possible" to force a decision by the
Council which cannot continue to be funded from state
general funds. Senator Sharp then MOVED to change the
sunset date from December 30, 1998, to December 30, 1996.
Senator Rieger noted that statutory sunset dates include a
grace year. A sunset date of 1996 would allow the Council
to operate into 1997. Co-chair Pearce called for a show of
hands on the motion. The motion carried on a vote of 3 to
2, and the amendment was ADOPTED.
Co-chair Frank MOVED that SCS CSHB 342 (Finance) pass from
committee with individual recommendations. No objection
having been raised, SCS CSHB 342 (Finance) was REPORTED OUT
of committee with a zero fiscal note from the Dept. of
Commerce and Economic Development. Co-chairs Pearce and
Frank signed the committee report with a "do pass"
recommendation. Senators Kelly, Kerttula, Rieger, and Sharp
signed "no recommendation." Senator Jacko was absent from
the meeting and did not sign.
ADJOURNMENT
The meeting was adjourned at approximately 10:05 a.m.
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