Legislature(1999 - 2000)

04/17/2000 06:21 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
MINUTES                                                                                                                         
SENATE FINANCE COMMITTEE                                                                                                        
April 17, 2000                                                                                                                  
6:21 PM                                                                                                                         
                                                                                                                                
TAPES                                                                                                                           
                                                                                                                                
SFC-00 # 95, Side A and Side B                                                                                                  
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair John Torgerson convened the meeting at                                                                                 
approximately 6:21 PM.                                                                                                          
                                                                                                                                
PRESENT Co-Chair John Torgerson, Senator Al Adams, Senator                                                                      
Lyda Green, Senator Loren Leman, Senator Randy Phillips,                                                                        
Senator Gary Wilken                                                                                                             
                                                                                                                                
Also Attending: REPRESENTATIVE JOHN COGHILL, JR.;                                                                               
REPRESENTATIVE LISA MURKOWSKI; REPRESENTATIVE NORM                                                                              
ROKEBERG; REMOND HENDERSON, Director, Division of                                                                               
Administrative Services, Department of Labor and Workforce                                                                      
Development; PAUL GROSSI, Director, Division of Worker's                                                                        
Compensation, Department of Labor and Workforce                                                                                 
Development; BRAD THOMPSON, Director, Division of Risk                                                                          
Management, Department of Administration; JEFF BUSH, Deputy                                                                     
Commissioner, Department of Community and Economic                                                                              
Development; JIM NORDLAND, Director, Division of Public                                                                         
Assistance, Department of Health and Social Services;                                                                           
                                                                                                                                
Attending via Teleconference: From Seattle: JERRY KURTZ                                                                         
                                                                                                                                
SUMMARY INFORMATION                                                                                                             
                                                                                                                                
HB 105-LICENSING SPEECH PATHOLOGY/AUDIOLOGY                                                                                     
                                                                                                                                
The bill moved from Committee.                                                                                                  
                                                                                                                                
HB 378-FEES FOR WORKERS COMP AND WORKER SAFETY                                                                                  
                                                                                                                                
The Committee heard testimony from the Department of Labor                                                                      
and Workforce Development and the Department of                                                                                 
Administration. Two amendments were considered and adopted.                                                                     
The bill was held in Committee.                                                                                                 
                                                                                                                                
HB 259-PUBLIC DEFENDER CHILDREN'S PROCEEDINGS                                                                                   
                                                                                                                                
The Committee heard testimony from the sponsor and reported                                                                     
the bill from Committee.                                                                                                        
                                                                                                                                
HB 239-UCC SECURED TRANSACTIONS                                                                                                 
                                                                                                                                
The Committee heard testimony from the sponsor. An                                                                              
amendment was considered and adopted. The bill moved from                                                                       
Committee.                                                                                                                      
                                                                                                                                
HB 418-PROGRAM RECEIPTS/ADMIN COST CHARGE                                                                                       
                                                                                                                                
The Committee heard testimony from the sponsor, the                                                                             
Department of Fish and Game and the Department of Community                                                                     
and Economic Development. A committee substitute was                                                                            
adopted. Four amendments were considered and three were                                                                         
adopted. The bill moved from Committee.                                                                                         
                                                                                                                                
HB  98-PUB.ASSISTANCE:PROGRAMS/GRANTS/CONTRACTS                                                                                 
                                                                                                                                
The Committee heard testimony from the Department of Health                                                                     
and Social Services. A committee substitute was adopted and                                                                     
three amendments were considered and adopted. The bill                                                                          
moved from Committee.                                                                                                           
                                                                                                                                
SB 310-G.O.BONDS: SCHOOLS & UNIVERSITY                                                                                          
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
[Tape malfunction during introduction of meeting.]                                                                              
                                                                                                                                
SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE                                                                            
FOR HOUSE BILL NO. 105(L&C)                                                                                                     
"An Act providing for the licensing of speech-language                                                                          
pathologists; relating to fees paid by audiologists                                                                             
and speech-language pathologists; and providing for an                                                                          
effective date."                                                                                                                
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill in the Senate                                                                         
Finance Committee.                                                                                                              
                                                                                                                                
Co-Chair Torgerson noted he had questions during in the                                                                         
earlier hearing regarding contracts for school officials.                                                                       
He said that he read the applicable Department of Education                                                                     
and Early Development regulations, which answered those                                                                         
questions. [Copy on file.]                                                                                                      
                                                                                                                                
Senator Green offered a motion to from Committee, SCS CS HB
105 (L&C) and accompanying $7,500 fiscal note from the                                                                          
Department of Community and Economic Development.                                                                               
                                                                                                                                
There was no objection and the bill MOVED from Committee.                                                                       
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 378(RLS)                                                                                
"An Act relating to the establishment of, assessment                                                                            
of, collection of, and accounting for service fees for                                                                          
state administration of workers' compensation and                                                                               
workers' safety programs; establishing civil penalties                                                                          
and sanctions for late payment or nonpayment of the                                                                             
service fee; and providing for an effective date."                                                                              
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill in the Senate                                                                         
Finance Committee.                                                                                                              
                                                                                                                                
AT EASE 6:25 PM / 6:33 PM                                                                                                       
                                                                                                                                
Amendment #1: This amendment deletes "or interpret" from                                                                        
page 7, line 8 and line again on line 9. The amended                                                                            
language reads as follows.                                                                                                      
                                                                                                                                
 TRANSITION: REGULATIONS. The director of the                                                                                   
division of insurance in the Department of Community                                                                            
and Economic Development, and the Department of Labor                                                                           
and Workforce Development, may proceed to adopt                                                                                 
regulations necessary to implement this Act.                                                                                    
Regulations to implement a provision of this Act take                                                                           
effect under AS 44.62 (Administrative procedure Act),                                                                           
but not before the effective date of secs. 1 - 6 of                                                                             
this Act.                                                                                                                       
                                                                                                                                
Senator Leman moved for adoption.                                                                                               
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Amendment #2: This amendment reads as follows.                                                                                  
                                                                                                                                
CSHB 378 (RLS) Workers Compensation Safety Fee                                                                                  
Suggested Language Changes by                                                                                                   
Department of Community & Economic Development                                                                                  
                                                                                                                                
Change 1: Sec. 3. Sec. 23.05.067 (a) (2) (page 2, lines                                                                         
26 through page 3, line 8) is replaced by the                                                                                   
following:                                                                                                                      
                                                                                                                                
   (2) For each insurer, the director                                                                                           
of the division of insurance shall deposit                                                                                      
under (e) of this section from funds received                                                                                   
from the insurer under AS 21.09.210, the                                                                                        
service fee of 1.82 percent of the direct                                                                                       
premium income for workers compensation                                                                                         
insurance received by the insurer during the                                                                                    
year ending on the preceding December 31,                                                                                       
subject to all the deductions specified in AS                                                                                   
21.09.210(b).                                                                                                                   
                                                                                                                                
Current language requires the Division of Insurance to                                                                          
deposits a portion of premium tax collected as opposed                                                                          
to premium reported. Otherwise, deposits may be                                                                                 
required greater than the amounts collected.                                                                                    
                                                                                                                                
Change 2: Delete Section 2 and renumber Sections 3-11.                                                                          
                                                                                                                                
Unlike previous versions, the rules CS does not,                                                                                
contain the "in lieu of all taxes..." sentence found on                                                                         
page 2, lines 25-28 of the previous (CSHB 378 (L&C))                                                                            
version. The provision amending AS 21.09.270 should be                                                                          
removed. This change maintains the long-standing                                                                                
statutory status quo regarding retaliatory fees. This                                                                           
will keep Alaska's retaliatory calculation in line with                                                                         
other states and will promote a level playing field                                                                             
between companies from this state and other states.                                                                             
                                                                                                                                
Senator Leman moved for adoption and explained these were                                                                       
two technical changes suggested by the Division of                                                                              
Insurance. He referred to an April 14, 2000 letter on the                                                                       
subject by Bob Lohr the division's director. [Copy on                                                                           
file.]                                                                                                                          
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
REMOND HENDERSON, Director, Division of Administrative                                                                          
Services, Department of Labor and Workforce Development                                                                         
listed the four updated fiscal notes that accompany the                                                                         
committee substitute.                                                                                                           
                                                                                                                                
Mr. Henderson addressed the changes to the Occupational                                                                         
Health and Safety component fiscal note to reflect that in                                                                      
the second year of the program, it would still be reliant                                                                       
on some general funds. This, he explained is because the                                                                        
committee substitute increased the phase-in time of the                                                                         
program to three years. He noted that $1 million, of which                                                                      
$315,000 is from the Occupational Safety and Health                                                                             
Administration (OSHA) and the balance from the Workers                                                                          
Compensation component, would replace general funds in the                                                                      
second year.                                                                                                                    
                                                                                                                                
PAUL GROSSI, Director, Division of Worker's Compensation,                                                                       
Department of Labor and Workforce Development noted the                                                                         
amendment that lengthened the phase-in time by one year was                                                                     
done by the House Rules Committee so there would not be a                                                                       
"double charge" for those entities paying a tax then a                                                                          
service fee.                                                                                                                    
                                                                                                                                
Co-Chair Torgerson noted the current version of this fiscal                                                                     
note is $300,000 less than previous versions and asked if                                                                       
the program is losing money because of the phase-in change.                                                                     
                                                                                                                                
Mr. Grossi replied that the program would not lose money,                                                                       
however funds would not be available for deposit into the                                                                       
program's account until the following year. This was                                                                            
because of the collection period, he said.                                                                                      
                                                                                                                                
Mr. Grossi confirmed that the increased phase-in period of                                                                      
the program is the reason for the changes in the Workers                                                                        
Compensation component fiscal note dated April 17, 2000.                                                                        
                                                                                                                                
Mr. Henderson explained that the changes to the Department                                                                      
of Labor and Workforce Development, Office of Commissioner                                                                      
component April 17, 2000 fiscal note reflect the reduction                                                                      
of revenues received in the first year from $3.5 million to                                                                     
$2.5 million.                                                                                                                   
                                                                                                                                
BRAD THOMPSON, Director, Division of Risk Management,                                                                           
Department of Administration, explained the increased Risk                                                                      
Management component fiscal note. He stated that the State                                                                      
Of Alaska, as an authorized self-insured employer, would                                                                        
pay according to the fee assessment stipulated in the bill.                                                                     
He pointed out that the fiscal note reflects the increased                                                                      
costs estimated for all state agencies.                                                                                         
                                                                                                                                
The Division of Risk Management, Mr. Thompson noted                                                                             
allocates these costs based on experience and exposure of                                                                       
claims based on a historical five-year average. He                                                                              
continued that the accompanying Office of Management and                                                                        
Budget information shows the inter-agency funding source of                                                                     
the increased amounts.                                                                                                          
                                                                                                                                
Senator Green mentioned the potential impact of this                                                                            
legislation on local governments. She said she was                                                                              
uncomfortable tying worker's compensation to OSHA for                                                                           
budgeting purposes saying that any revenue shortfalls would                                                                     
require reductions to worker's compensation due to OSHA                                                                         
minimum funding requirements.                                                                                                   
                                                                                                                                
No motion to move the bill was offered by any member of the                                                                     
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Torgerson ordered the bill HELD in Committee.                                                                          
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 259(JUD)                                                                                
"An Act relating to a parent's eligibility to be                                                                                
represented by the public defender before and during                                                                            
the probable cause and temporary placement hearing                                                                              
that is held after the state takes emergency custody                                                                            
of a child."                                                                                                                    
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate                                                                          
Finance Committee.                                                                                                              
                                                                                                                                
REPRESENTATIVE JOHN COGHILL JR. shared that this                                                                                
legislation is borne out of a meeting held in Fairbanks                                                                         
with agency representatives and the Interior legislative                                                                        
delegation. He expressed that the need to have good                                                                             
information available to parents who find themselves in a                                                                       
situation where their children have been taken into                                                                             
protective custody and are facing a 48-hour hearing to                                                                          
determine temporary placement. He stated that this bill                                                                         
would give the Public Defender's Agency (PDA) the ability                                                                       
to represent these parents or to declare a conflict of                                                                          
interest if also representing another parent who may have                                                                       
been accused as the abuser in the same case.                                                                                    
                                                                                                                                
Representative Coghill continued the bill also provides for                                                                     
those parents to reimburse the PDA for services performed                                                                       
if indigence is not determined.                                                                                                 
                                                                                                                                
Representative Coghill shared that the PDA is already                                                                           
providing this service and that this legislation would put                                                                      
the practice into statute. He therefore did not anticipate                                                                      
an increased workload for the agency and noted the                                                                              
subsequent zero fiscal note.                                                                                                    
                                                                                                                                
Co-Chair Torgerson commented that he had heard the bill in                                                                      
the Senate Judiciary Committee and had his questions                                                                            
concerning this legislation answered at that time.                                                                              
                                                                                                                                
Senator Donley offered a motion to move CS HB 259 (JUD)                                                                         
from Committee with zero fiscal note from the Department of                                                                     
Administration, Public Defender's Agency.                                                                                       
                                                                                                                                
There was no objection and the bill MOVED from Committee.                                                                       
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 239(FIN)                                                                                
"An Act relating to the Uniform Commercial Code;                                                                                
relating to secured transactions; amending Rule 79,                                                                             
Alaska Rules of Civil Procedure; and providing for an                                                                           
effective date."                                                                                                                
                                                                                                                                
                                                                                                                                
This was the third hearing for this bill in the Senate                                                                          
Finance Committee. Co-Chair Torgerson noted earlier                                                                             
discussion about a letter from bond council expressing                                                                          
concerns on the impact this bill would have on outstanding                                                                      
and future revenue and bond issues, particularly relating                                                                       
to municipalities. [Copy on file.]                                                                                              
                                                                                                                                
REPRESENTATIVE LISA MURKOWSKI told the Committee she had                                                                        
recently spoken to experts on the matter and was not given                                                                      
a good reason to change the status quo, which is to provide                                                                     
an exemption for federal governments and governmental                                                                           
agencies. As a result of these conversations, she proposed                                                                      
an amendment that would provide the same exemptions. She                                                                        
believed this amendment addressed the concerns voiced by                                                                        
the bond council.                                                                                                               
                                                                                                                                
JERRY KURTZ testified via teleconference from Seattle that                                                                      
the problems have been taken care of with the proposed                                                                          
amendment.                                                                                                                      
                                                                                                                                
Amendment #1: This amendment makes the following changes to                                                                     
the committee substitute.                                                                                                       
                                                                                                                                
Page 14, lines 7 through 15:                                                                                                    
Delete:                                                                                                                         
 "(84) "public finance transaction" means a                                                                                     
secured transaction in connection with which                                                                                    
 (A) debt securities are issued;                                                                                                
 (B) all or a portion of the securities                                                                                         
issued have an initial stated maturity of at                                                                                    
least 20 years; and                                                                                                             
 (C) the debtor, obligor, secured party,                                                                                        
account debtor or other person obligated on                                                                                     
collateral, assignor or assignee of a secured                                                                                   
obligation, or assignor or assignee of a security                                                                               
interest is a state or a governmental unit of a                                                                                 
state;"                                                                                                                         
                                                                                                                                
Page 23, following line 8,                                                                                                      
Insert:                                                                                                                         
 "(14) not withstanding (c)(2) of this section,                                                                                 
does not apply to a transfer by a government or                                                                                 
governmental subdivision or agency"                                                                                             
                                                                                                                                
Page 82, line 13 and line 15:                                                                                                   
Delete: "public finance transaction or"                                                                                         
[Amended language reads as follows.]                                                                                            
                                                                                                                                
 "(b) Except as otherwise provided in (e) - (g) of                                                                              
this section, an initial financing statement filed in                                                                           
connection with a manufactured home transaction is                                                                              
effective for a period of 30 years after the date of                                                                            
filing if it indicates that is filed in connection                                                                              
with a manufactured home transaction."                                                                                          
                                                                                                                                
                                                                                                                                
Senator Donley moved for adoption.                                                                                              
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Senator Leman offered a motion to report from Committee, CS                                                                     
HB 239 (FIN) with accompanying zero fiscal note from the                                                                        
Department of Natural Resources.                                                                                                
                                                                                                                                
Without objection the bill MOVED from Committee.                                                                                
                                                                                                                                
AT EASE 6:50 PM / 8:32 PM                                                                                                       
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 418(RLS)                                                                                
"An Act designating certain receipts as program                                                                                 
receipts, appropriations of which are not made from                                                                             
the unrestricted general fund; relating to the                                                                                  
establishment of an administrative cost charge for the                                                                          
state's role in the community development quota                                                                                 
program; and providing for an effective date."                                                                                  
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate                                                                          
Finance Committee.                                                                                                              
                                                                                                                                
Co-Chair Torgerson directed member's attention to a                                                                             
proposed committee substitute, SCS CS HB 418, 1-LS1500\V.                                                                       
He noted that the language on page two of this committee                                                                        
substitute, relating to use of program receipts, is new. He                                                                     
added that a proposed amendment makes technical corrections                                                                     
and adds more programs to the list.                                                                                             
                                                                                                                                
REPRESENTATIVE NORM ROKEBERG, Chair, House Labor and                                                                            
Commerce Committee, testified to the bill. He stated that                                                                       
the bill is a result of his and other members of the House                                                                      
committee's frustrations with occupational licensing. He                                                                        
explained that many of the state's licensing boards and                                                                         
commissions want broader authority. However, he said the                                                                        
finance committees of both houses prohibit this because of                                                                      
the impact of any increase in activities of these boards                                                                        
and commissions would have on the state's fiscal gap.  This                                                                     
he shared is because increased costs would have to be paid                                                                      
for from the general fund.                                                                                                      
                                                                                                                                
Representative Rokeberg gave an example of the Board of                                                                         
Nursing that received a $150,000 federal grant to establish                                                                     
an outreach program for children. This grant expired, he                                                                        
said because the state was unable to provide additional                                                                         
necessary funds.                                                                                                                
                                                                                                                                
Representative Rokeberg gave another example of the members                                                                     
of the Board of Architects who wish to participate in                                                                           
committees on the national level. However, he said that                                                                         
because of the inability for the board to raise its fees,                                                                       
the board is unable to secure funds for travel costs.                                                                           
                                                                                                                                
Representative Rokeberg stressed that the legislature's                                                                         
attempts to reduce general fund spending should not reflect                                                                     
on the boards and commissions and those professional                                                                            
licensees that operate in the state. He asserted that the                                                                       
boards and commissions must be self-supported by the                                                                            
licensing fees. Therefore, he said, they need the ability                                                                       
to increase the fees as necessary.                                                                                              
                                                                                                                                
Representative Rokeberg noted the House Finance Committee                                                                       
added provisions to the bill to include the Alaska Seafood                                                                      
Marketing Institute (ASMI), the dive fishery and Department                                                                     
of Community and Economic Development programs. He stated                                                                       
he supported these additions.                                                                                                   
                                                                                                                                
Representative Rokeberg pointed out that this bill passed                                                                       
through the House of Representatives with no objection.                                                                         
                                                                                                                                
Representative Rokeberg assured that fee support services                                                                       
(FSS) are not removed from the budget, but just relocated                                                                       
to another category.                                                                                                            
                                                                                                                                
Senator P. Kelly moved to adopt SCS CS HB 418, 1-LS1500\V                                                                       
as a workdraft.                                                                                                                 
                                                                                                                                
There was no objection and the committee substitute was                                                                         
ADOPTED.                                                                                                                        
                                                                                                                                
Amendment #1: This amendment inserts "receipts of" on page                                                                      
2, lines 6 and 19 of the committee substitute. The amended                                                                      
language reads as follows.                                                                                                      
                                                                                                                                
 "(DD) receipts of the Alaska Vocational                                                                                        
Technical Center;                                                                                                               
 .                                                                                                                              
 (KK) receipts of the Alaska Police Standards                                                                                   
Council;"                                                                                                                       
                                                                                                                                
The amendment also adds two subsections to Section 1.                                                                           
                                                                                                                                
 "(QQ) receipts of the Department of                                                                                            
Corrections from the inmate telephone system;                                                                                   
 (RR) receipts of the Department of Public                                                                                      
Safety from the Alaska automated fingerprint                                                                                    
system under AS 44.41.025(b);"                                                                                                  
                                                                                                                                
Co-Chair Parnell moved for adoption.                                                                                            
                                                                                                                                
Co-Chair Torgerson explained the first two changes are                                                                          
technical and proposed at the recommendation of the                                                                             
Division of Legislative Finance.                                                                                                
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Senator Phillips asked if the Division of Lands program                                                                         
receipts were considered for inclusion on this list.                                                                            
                                                                                                                                
Co-Chair Torgerson responded that program was addressed in                                                                      
SB 283. He noted the proposed Amendments #2 and #3 were                                                                         
addressed in other legislation.                                                                                                 
                                                                                                                                
Co-Chair Torgerson stressed that this committee substitute                                                                      
has nothing to do with the Majority's goal to reduce $30                                                                        
million in general fund spending and is just a fund source                                                                      
change. He assured that this is not a "smoke and mirrors                                                                        
change".                                                                                                                        
                                                                                                                                
Senator Phillips asked if a representative from Department                                                                      
of Transportation and Public Facilities was present to tell                                                                     
him if any highway facilities other than the soon to be                                                                         
completed, Whittier tunnel charge tolls.                                                                                        
                                                                                                                                
Co-Chair Torgerson replied that the Whittier Tunnel is the                                                                      
only toll-operated facility in the state and that this                                                                          
passage is expected to be self-sustained.                                                                                       
                                                                                                                                
[Note: The following amendment was considered out of                                                                            
numerical order.]                                                                                                               
                                                                                                                                
Amendment #4: This amendment deletes the language on page 1                                                                     
lines 9-11. The language reads as follows.                                                                                      
                                                                                                                                
  "(Y) receipts from the seafood marketing                                                                                      
assessment under AS 16.51.120 - 16.51.170, the salmon                                                                           
marketing tax under AS 43.76.110 - 43.76.130, and                                                                               
other receipts of the Alaska Seafood Marketing                                                                                  
Institute;"                                                                                                                     
                                                                                                                                
Senator Donley moved for adoption and expressed concern                                                                         
about Outside interests governing ASMI that have not been                                                                       
sufficiently responsive or forthcoming with the                                                                                 
legislature. He wanted the legislature to maintain scrutiny                                                                     
over this board's operations especially because so much of                                                                      
the board's activities occur out of state.                                                                                      
                                                                                                                                
Co-Chair Torgerson pointed out that each of the boards and                                                                      
commissions are subject to annual appropriation and                                                                             
therefore, the appropriation process is not circumvented by                                                                     
this legislation.                                                                                                               
                                                                                                                                
Senator Leman objected to the amendment, saying ASMI is                                                                         
fully supported by a tax that the fishermen agreed upon for                                                                     
the purpose of marketing their product. He stressed that                                                                        
whether or not the legislature is convinced the board's                                                                         
actions are entirely appropriate, is a matter that should                                                                       
be addressed separately.                                                                                                        
                                                                                                                                
Co-Chair Torgerson added that he has seen ASMI's budget                                                                         
jump from $3 million to $10 million, but noted this is due                                                                      
primarily to federal funds. He said he also opposes the                                                                         
amendment.                                                                                                                      
                                                                                                                                
Senator P. Kelly expressed that he did not think the                                                                            
legislature could force ASMI to be any more responsive by                                                                       
removing it from this legislation. The only result, he said                                                                     
is the state is "still punished by their success" since the                                                                     
legislature is faced with increased general fund spending                                                                       
to support the board's growth.                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Green, Senator Phillips and Senator                                                                           
Donley                                                                                                                          
                                                                                                                                
OPPOSED: Senator Adams, Senator Wilken, Senator P. Kelly,                                                                       
Senator Leman, Co-Chair Parnell and Co-Chair Torgerson                                                                          
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Amendment #2: This amendment inserts a new subsection to                                                                        
Section 1 of the House Rules committee substitute as                                                                            
follows.                                                                                                                        
                                                                                                                                
 "(BB) receipts of the Department of Public                                                                                     
Safety under AS 44.41.025(b);"                                                                                                  
                                                                                                                                
This amendment was NOT OFFERED since the changes were                                                                           
contained in the committee substitute.                                                                                          
                                                                                                                                
Amendment #3: This amendment inserts a new subsection to                                                                        
Section 4 of the House Rules committee substitute as                                                                            
follows.                                                                                                                        
                                                                                                                                
 (f) The department shall not assess nor collect                                                                                
administrative charges under this section from new CDQ                                                                          
groups, representing communities not eligible for the                                                                           
CDQ program as of the effective date of this Act, for                                                                           
a period of two years from the actual award of fishery                                                                          
quota to that newly formed CDQ group."                                                                                          
                                                                                                                                
Senator Adams moved for adoption. Co-Chair Torgerson                                                                            
objected for an explanation.                                                                                                    
                                                                                                                                
Senator Adams stated that this amendment incurs no cost to                                                                      
the state. He spoke of attempts to establish a CDQ in the                                                                       
area from Kotzebue to Point Hope, which this amendment                                                                          
addresses, but that federal approval is still required.                                                                         
                                                                                                                                
Co-Chair Torgerson asked if this provision was adopted in                                                                       
earlier Committee action.                                                                                                       
                                                                                                                                
Senator Adams replied that he presented the issue but no                                                                        
action was yet taken.                                                                                                           
                                                                                                                                
Representative Rokeberg shared that the House Labor and                                                                         
Commerce Committee had adopted a similar amendment but the                                                                      
House Finance Committee removed the language. He thought                                                                        
the matter has merit and saw no reason to oppose this                                                                           
amendment.                                                                                                                      
                                                                                                                                
KEVIN BROOKS, Director, Division of Administrative                                                                              
Services, Department of Fish and Game stated the department                                                                     
does not oppose the amendment. [Statement was made out of                                                                       
the range of the recording equipment.]                                                                                          
                                                                                                                                
JEFF BUSH, Deputy Commissioner, Department of Community and                                                                     
Economic Development testified that the department's                                                                            
position on the amendment is neutral. He clarified that the                                                                     
Department of Community and Economic Development oversees                                                                       
the CDQ program rather than the Department of Fish and                                                                          
Game.                                                                                                                           
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Co-Chair Parnell offered a motion to move from Committee,                                                                       
SCS CS HB 418, 1-LS1500\V as amended with accompanying zero                                                                     
fiscal notes from the Department of Revenue and the                                                                             
Department of Health and Social Services.                                                                                       
                                                                                                                                
AT EASE 8:49 PM / 8:50 PM                                                                                                       
                                                                                                                                
Co-Chair Parnell moved to withdraw his motion to report the                                                                     
bill from Committee.                                                                                                            
                                                                                                                                
By unanimous consent, the motion was WITHDRAWN.                                                                                 
                                                                                                                                
Co-Chair Parnell moved to give the Division of Legal and                                                                        
Research Services technical direction to insert the                                                                             
appropriate department names to "(QQ)" and "(RR)" as added                                                                      
to the bill by Amendment #1. [Amendment language shown                                                                          
above contains these changes.]                                                                                                  
                                                                                                                                
There was no objection and the motion was ADOPTED.                                                                              
                                                                                                                                
Co-Chair Parnell re-offered his motion to move from                                                                             
Committee, SCS CS HB 418, 1-LS1500\V as amended with                                                                            
accompanying zero fiscal notes from the Department of                                                                           
Community and Economic Development, Occupational Licensing                                                                      
component and ASMI plus new zero fiscal note from the                                                                           
Department of Fish and Game.                                                                                                    
                                                                                                                                
Without objection the bill MOVED from Committee.                                                                                
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 98(HES) am                                                                              
"An Act relating to contracts for the provision of                                                                              
state public assistance to certain recipients in the                                                                            
state; providing for regional public assistance plans                                                                           
and programs in the state; relating to grants for                                                                               
Alaska Native family assistance programs; relating to                                                                           
assignment of child support by Alaska Native family                                                                             
assistance recipients; to paternity determinations and                                                                          
genetic testing involving recipients of assistance                                                                              
under Alaska Native family assistance programs; and                                                                             
providing for an effective date."                                                                                               
                                                                                                                                
                                                                                                                                
This was the second hearing for this bill in the Senate                                                                         
Finance Committee.                                                                                                              
                                                                                                                                
Co-Chair Torgerson noted the proposed SCS CS HB 98, 1-                                                                          
GH1011\I. He explained the committee substitute establishes                                                                     
a pilot program to accommodate the three Native                                                                                 
organizations that have shown interest in operating public                                                                      
assistance programs. He listed the Association of Village                                                                       
Council Presidents, the Tanana Chiefs Conference and the                                                                        
Tlingit-Haida Central Council as the aforementioned                                                                             
organizations.                                                                                                                  
                                                                                                                                
Co-Chair Torgerson drew the Committee's attention to                                                                            
language requiring status reports to the legislature and                                                                        
the governor, plus audits of the overseeing Native                                                                              
organizations' financial information.                                                                                           
                                                                                                                                
JIM NORDLAND, Director, Division of Public Assistance,                                                                          
Department of Health and Social Services, testified that                                                                        
although the department's staff has only had a short time                                                                       
to review the new language, there did not seem to be any                                                                        
conflict.                                                                                                                       
                                                                                                                                
Co-Chair Torgerson relayed conversations he had with the                                                                        
witness indicating that technical changes could be made to                                                                      
this committee substitute if any errors are discovered.                                                                         
                                                                                                                                
Mr. Nordland stated that the original intent of the                                                                             
legislation was to make it possible for all eligible Native                                                                     
organizations to participate in public assistance delivery.                                                                     
However, he understood that the legislature wants to move                                                                       
cautiously in the form of a pilot program.                                                                                      
                                                                                                                                
Co-Chair Torgerson added that this legislation does not                                                                         
sunset and that other organizations could be included later                                                                     
if interest were shown.                                                                                                         
                                                                                                                                
Senator P. Kelly clarified that the general funds currently                                                                     
used are not matching funds but are passed on to a non-                                                                         
profit organization that would carry out the same duties.                                                                       
                                                                                                                                
Mr. Nordland explained that TCC currently is required to                                                                        
provide the exact service as the state would provide. What                                                                      
the organization wants to do, he said is to run a slightly                                                                      
different program that is still comparable to the state's                                                                       
program. He stated that this legislation allows the                                                                             
organization to receive state funds and have more                                                                               
flexibility.                                                                                                                    
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #95, Side B    8:59 PM                                                                                           
                                                                                                                                
                                                                                                                                
Senator Adams moved to adopt SCS CS HB 98, 1-GH1011\I as a                                                                      
workdraft.                                                                                                                      
                                                                                                                                
There was no objection and the committee substitute was                                                                         
ADOPTED.                                                                                                                        
                                                                                                                                
Amendment #1: This amendment inserts a new subparagraph on                                                                      
page 5, lines 30 and 31 of the committee substitute to read                                                                     
as follows.                                                                                                                     
                                                                                                                                
"(4) establish the same maximum number of                                                                                       
months of benefits as is established for the                                                                                    
state program under AS 47.27.015 (a)(1); and"                                                                                   
                                                                                                                                
Senator Adams moved for adoption.                                                                                               
                                                                                                                                
Senator Donley objected.                                                                                                        
                                                                                                                                
Senator Adams explained this amendment provides that                                                                            
Native-operated programs could not apply to the federal                                                                         
government for extension of the 60-month maximum benefit                                                                        
provision. He said this applies uniform standards to all                                                                        
public assistance programs.                                                                                                     
                                                                                                                                
Mr. Nordland repeated his explanation of the amendment                                                                          
given at a previous meeting, saying this item was missed                                                                        
when the comparability standards were established. He                                                                           
shared that federal regulations allow Native-operated                                                                           
programs to negotiate to exempt that program from the 60-                                                                       
month limit.                                                                                                                    
                                                                                                                                
Co-Chair Torgerson clarified that this amendment keeps all                                                                      
participants of public assistance equal in the amount of                                                                        
months they may receive benefits.                                                                                               
                                                                                                                                
Senator Green remarked that this is not necessarily the                                                                         
case in other parts of Alaska where the public assistance                                                                       
program is not administered by a Native organization.                                                                           
                                                                                                                                
Mr. Nordland detailed that those exemptions are separate                                                                        
from the allowances offered to Native organizations. He                                                                         
explained that federal law also provides that anyone,                                                                           
Native or non-Native, living in a Native village with an                                                                        
unemployment rate higher than 50 percent is exempt from the                                                                     
60-month limit.                                                                                                                 
                                                                                                                                
Mr. Nordland cautioned that without this amendment, a                                                                           
recipient living in Fairbanks who receives benefits through                                                                     
a Native-operated program could potentially go beyond the                                                                       
60-month limit if that program had received the exemption.                                                                      
He expressed that it is not fair to allow a Native living                                                                       
in an urban area to receive benefits longer than a non-                                                                         
Native living in the same community does.                                                                                       
                                                                                                                                
Senator Green expressed concern with the comparability                                                                          
standard required of any Native-operated public assistance                                                                      
programs.                                                                                                                       
                                                                                                                                
Mr. Nordland referred to the legal opinion written by the                                                                       
Division of Legal and Research Services regarding the equal                                                                     
protection problem, which stated that there could be a                                                                          
conflict without this comparability standard.                                                                                   
                                                                                                                                
Senator Donley removed his objection and the amendment was                                                                      
ADOPTED.                                                                                                                        
                                                                                                                                
Co-Chair Torgerson is #2 still necessary                                                                                        
                                                                                                                                
Amendment #2: This amendment deletes, "a compelling                                                                             
interest" and inserts, "that special circumstances exist                                                                        
that support the request" from page 8, line 3 of the                                                                            
committee substitute. The amended language reads, "The                                                                          
department shall approve the application if the department                                                                      
finds that the applicant has shown that special                                                                                 
circumstances exist that support the request to use the                                                                         
state program."                                                                                                                 
                                                                                                                                
KRISTEN BOMENGEN, Assistant Attorney General, Human                                                                             
Services Section, Civil Division, Department of Law spoke                                                                       
to the concern about the "compelling interest requirement"                                                                      
being imposed on someone who is seeking services from                                                                           
either program. She stated the proposed language addresses                                                                      
this problem and is more appropriate.                                                                                           
                                                                                                                                
Senator Green moved for adoption and asked if "special                                                                          
circumstances" is a lesser standard than "compelling                                                                            
interest" in legal terms. It was determined to be so.                                                                           
                                                                                                                                
Senator Donley asked if this language applies to                                                                                
individuals or groups.                                                                                                          
                                                                                                                                
[Senator Leman explained to Senator Donley out of range of                                                                      
the recording equipment.]                                                                                                       
                                                                                                                                
Senator Green asked if the bill contained any language to                                                                       
specify that nothing in the legislation is to be construed                                                                      
as recognition of tribes' sovereign immunity. It was                                                                            
determined there is no such specific language.                                                                                  
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Amendment #3: This amendment deletes, "interpret," from                                                                         
page 3 line 20 of the committee substitute. The amended                                                                         
language reads as follows.                                                                                                      
                                                                                                                                
 "(8) adopt regulations and take action to                                                                                      
implement and administer the provisions of this                                                                                 
chapter."                                                                                                                       
                                                                                                                                
Senator Leman moved for adoption.                                                                                               
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Senator Adams offered a motion to report from Committee CS                                                                      
HB 98, 1-GH1011\K, as amended and with accompanying zero                                                                        
fiscal notes from the Department of Revenue and the                                                                             
Department of Health and Social Services.                                                                                       
                                                                                                                                
There was no objection and the bill MOVED from Committee.                                                                       
ADJOURNED                                                                                                                       
                                                                                                                                
Senator Torgerson adjourned the meeting at 9:12 PM.                                                                             
SFC-00 (1) 04/17/00                                                                                                             

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