Legislature(2001 - 2002)
05/02/2002 04:22 PM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 02, 2002
4:22 PM
TAPES
SFC-02 # 86, Side A
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 4:22 PM.
PRESENT
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Loren Leman
Senator Gary Wilken
Senator Alan Austerman
Senator Lyman Hoffman
Senator Donald Olson
Senator Lyda Green
Also Attending: RON SOMMERVILLE, Resource Consultant, House of
Representatives and Senate Majority; JENNIFER YUHAS, Staff to
Representative Masek, Chair of the House Resources Committee;
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 54-ALASKA VETERANS ADVISORY COUNCIL
The Committee rescinded its earlier action to report the bill from
Committee. A committee substitute was adopted and the bill moved
from Committee.
SB 252-EMPLOYMENT AND TRAINING PROGRAM/BOARD
The bill moved from Committee.
SB 267-ALASKA VETERANS' MEM.ENDOWMENT FUND
The Committee considered three amendments and adopted two. The bill
moved from Committee.
HB 421-WATER USE ACT PROCEDURES & RECORDS
The Committee heard from a consultant and the sponsor, adopted an
amendment and a new fiscal note. The bill moved from Committee.
HB 128-APPROVAL FOR EMPLOYMENT OF MINORS
The Committee adopted an amendment and the bill moved from
Committee.
SENATE BILL NO. 54
"An Act establishing the Alaska Veterans Advisory Council; and
providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee. The bill was reported from Committee at the previous
hearing.
Co-Chair Kelly noted the amendments adopted to this legislation at
the last meeting are unconstitutional.
Senator Leman moved to rescind the Committee's action of reporting
the bill from Committee.
The Committee's action to move the bill from Committee was
RESCINDED without objection.
Co-Chair Donley moved for adoption of CS SB 54, 22-GS1080\F as a
working draft.
Without objection the committee substitute was ADOPTED as a working
draft.
Co-Chair Kelly informed that this committee substitute clarifies
that members of the Veterans Advisory Council, whose terms have not
expired as of the effective date of this bill, may remain in their
position until their terms expire, with the exception that they
serve at the pleasure of the governor. He noted this is consistent
with the provisions governing other appointed positions during
changes in gubernatorial administrations.
Senator Leman "moved to report committee substitute for Senate Bill
54 Finance from Committee with individual recommendations and the
accompanying small fiscal note."
There was no objection and CS SB 54 (FIN) with accompanying $3,500
fiscal note #2 from the Department of Military and Veterans
Affairs, dated 2/9/02, MOVED from Committee.
CS FOR SENATE BILL NO. 252(L&C)
"An Act renaming the Alaska Human Resource Investment Council
as the Alaska Workforce Investment Board and relating to its
membership; relating to repayment on promissory notes for
work-related items paid for by grant programs; extending the
termination date of the state training and employment program;
relating to employment and training activities; and providing
for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Senator Wilken "moved to report Senate Bill 252 from Committee as
amended with individual recommendations and attached fiscal notes."
Without objection, SB 252 (FIN) MOVED from Committee with four new
fiscal notes from the Department of Labor and Workforce
Development, Employment Security BRU: $4,785,200, Job Training
Programs component, 5/1/02 8:44 AM; $91,200, Job Training Programs
component, 5/1/02 8:45 AM; $125,000, Unemployment Insurance
component, 5/1/02; $255,300, Employment Services component, 5/1/02.
[Note: The $4,785,200 Job Training Programs fiscal note reflects
funds included in the governor's proposed FY 02 operating budget,
while the $91,200 Job Training Programs fiscal note funds are not
included.]
Senator Wilken reminded that at the previous hearing on this bill
he had requested certain information from the Denali Commission. He
informed although he has received this information, which includes
details of different training programs, the information contained
no reference to the results of those training programs and whether
they are productive. He commented that the level of success should
be measured and he indicated he would make efforts to ensure
complete reporting in the future.
SENATE BILL NO. 267
"An Act establishing the Alaska veterans' memorial endowment
fund and providing for credits against certain taxes for
contributions to that fund; relating to other tax credits for
certain contributions; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Amendment #1: This amendment inserts, "relating to a tax credit
program for postsecondary colleges of universities;" on page 1,
line 1. The amended title of the bill reads as follows.
An Act relating to a tax credit program for postsecondary
colleges or universities; establishing the Alaska veterans'
memorial endowment fund and providing for credits against
certain taxes for contributions to that fund; relating to
other tax credits for certain contributions; and providing for
an effective date.
This amendment also changes the qualifications of educational
facilities eligible to receive tax-deductible contributions in AS
21.87.070(a), 43.20.014(a), 43.55.019(a), 43.56.018(a),
43.65.018(a), 43.75.018(a), and 43.77.045(a), to include those
accredited by a national accreditation association.
Senator Leman moved for adoption.
Co-Chair Kelly objected for an explanation.
Senator Leman commented this legislation reminded him of a topic he
discussed with the late Elmer Rasmuson, who had expressed concern
that Alaska statute is inconsistent in governing tax credits.
Senator Leman explained that tax credits are extended to
contributions made to regionally accredited institutions only and
pointed out that some nationally accredited institutions operate in
the State. He relayed the Alaska Commission on Postsecondary
Education (ACPE) determination that national accreditation is
equivalent to regional accreditation.
Senator Wilken objected to adoption of the amendment, expressing it
changes the intent of the tax credit program. He explained the
current program includes the University of Alaska, Alaska Pacific
University and Sheldon Jackson College. If this amendment were
adopted, he observed, the program would be expanded to provide tax
credits to "church schools", for-profit schools: including Career
Academy and Charter College, and trade schools: including truck
driving schools, massage therapy schools, cosmetology schools, etc.
He predicted this expansion of the tax credit program would have
"far ranging implications" and stressed that if this is the intent,
the matter should receive further consideration. He furthered that
ACPE has concerns about this amendment and should be given an
opportunity to speak to those concerns.
Senator Leman countered, "This is not a new idea," noting he has
raised the issue on several occasions over the past ten years. He
added that the ACPE has not indicated any concerns to him. He
surmised if the concerns were serious, he would have been
contacted.
Co-Chair Kelly objected to adoption of the amendment for similar
reasons as those voiced by Senator Wilken.
Senator Wilken directed attention to written testimony submitted
for this bill by the ACPE whereby the concerns are detailed.
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Ward, Senator Green, and Senator
Leman
OPPOSED: Senator Wilken, Senator Austerman, Senator Hoffman, Co-
Chair Donley and Co-Chair Kelly
The motion FAILED (4-5)
The amendment FAILED to be adopted.
Amendment #2: This conceptual amendment reduces the amount of tax
credit eligible for the second $100,000 of contributions, from 100
percent to 75 percent.
Co-Chair Donley moved for adoption at the request of Co-Chair
Kelly.
The amendment was ADOPTED without objection.
Amendment #3: This conceptual amendment changes the language in the
title of the bill to specifically reflect the tax credit structure
adopted in Amendment #2.
Co-Chair Donley moved for adoption.
There was no objection and the amendment was ADOPTED.
Senator Wilken relayed "hearsay" observation of the activities of
the veterans' organizations to secure funding for services. He
noted the result is this legislation to provide tax credits for
private donations. While he did not oppose this method, he surmised
the motive for introducing and encouraging passage of this
legislation was political.
Senator Ward shared that the topic of establishing an endowment
fund was discussed at his local Veterans of Foreign Wars (VFW) and
American Legion chapters.
Co-Chair Donley pointed out the difference between this proposed
endowment fund with others discussed during the legislative session
that have been created entirely with public funds. He asserted the
proposed veterans' fund "appears to have the more appropriate
intent for an endowment than those other so-called endowments". He
remarked he supports this legislation.
Senator Green asked the potential impact of funds diverted from the
"State coffers" to the proposed veterans' endowment fund and
whether the amount is unlimited.
Senator Ward replied, " It is subject to appropriations." He could
not guarantee the Veterans Advisory Council would not request
additional funds in the future, but expressed that the intent is
private contributions and grants would comprise the majority of the
fund.
Co-Chair Kelly clarified Senator Green's question was to the impact
of the tax credit on the State's general fund.
Co-Chair Donley replied the donation amount eligible for a tax
credit is limited to $200,000 annually, which he characterized as
the "control" limiting the impact on the general fund.
Senator Green "moved Senate Bill 267 out of Committee with
individual recommendations and accompanying fiscal notes."
There was no objection and SB 267 (FIN) MOVED from Committee with
accompanying $125,000 fiscal noted #1 from the Department of
Military and Veterans Affairs, zero fiscal note #2 from the
Department of Revenue and indeterminate fiscal note #3 from the
Department of Community and Economic Development.
SENATE CS FOR CS FOR HOUSE BILL NO. 421(RES)
"An Act relating to requiring the Department of Natural
Resources to develop and maintain a standardized procedure for
processing applications and issuing permits, authorizations,
and certifications under the Alaska Water Use Act and to make
a record of those items and amendments and orders affecting
them available on the Internet."
This was the second hearing for this bill in the Senate Finance
Committee.
Senator Leman spoke to a draft amendment [not on file]. He reminded
the Committee that in May 2001, during the final days of the first
session of the Twenty-Second Alaska State Legislature, HB 185 was
passed, which amended the Alaska Water Use Act. He recalled
concerns were raised during debate on that legislation relating to
"major public policy questions" about the operation of the Water
Management Program within the Department of Natural Resources.
Because of these concerns, he continued, HB 185 included a one-year
sunset provision on the Department's authorization for temporary
water use activities. In addition, he noted the Legislature
provided additional funding to the Department to expedite the water
appropriations process and "clean up the incredibly long backlog of
applications".
Senator Leman informed that one year later, the application backlog
remains and that "very few of the public interest policy questions
have been addressed." He shared that a finding issued by the
Division of Legislative Legal and Research Services cautions that
in the absence of addressing the public policy issues, the programs
are "treading on thin ice". As a result, he stated he sponsored an
amendment to HB 421, although he did not intend for the suggested
changes to place a burden on industry and cause delay in the
issuance of temporary water use permits. He suggested a
misunderstanding could be the cause of the opposition to his
proposal.
Senator Leman asserted, "The Department's approach to temporary
water use must be legally defensible, avoid unnecessary delays and
the public interest must be protected." He expressed concern that
without an amendment to the Alaska Water Use Act, the possibility
of "legitimate" legal challenges remains.
Senator Leman stated that because of the limited time remaining in
the current legislative session and because of opposition from the
Department of Natural Resources and private parties that would be
adversely impacted, he would not offer the amendment.
Amendment #1: This amendment deletes the following language from
page 1, line 13, through page 2, line 5 of the Senate Resources
committee substitute.
…shall ensure that all permits for water withdrawal are
invalid unless the applicant complies with applicable
requirements of AS 16.05.870; and shall make the record of
applications, including temporary water use applications under
AS 46.15.155 that have been accepted as complete,
authorizations, permits, certificates, amendments, and orders
affecting them available to the public on the Internet;
This amendment also replaces the deleted language with the
following.
…shall require that temporary water use authorizations are
valid only to the extent that the water withdrawal and use
complies with applicable requirements of AS 16.05.870; and
shall make the record of applications, including temporary
water use applications under AS 16.15.155 that have been
accepted them available to the public on the Internet;
Senator Leman moved for adoption, noting that Senator Rick Halford
and the Department support this amendment, and that Co-Chair Kelly
discussed the implications with potential applicants for temporary
water use permits.
Co-Chair Kelly objected for the purpose of discussion.
RON SOMMERVILLE, Resource Consultant to the House of
Representatives and the Senate Majorities, explained this amendment
was drafted as a result of concerns raised by the Legislature's
legal advisors and by temporary water use permit applicants. He
stated that language adopted by the Senate Resources Committee
would require the Department to "enforce another agency's law"
related to the Anadromous Fish Act [this agency is not specified].
He recalled comments made by Senator Hoffman about parties
receiving water use authorization, assuming they had no further
regulatory obligation, and utilizing the water without knowledge
they were violating requirements of the Anadromous Fish Act. As a
result, he said, Amendment #1 directs the two departments to work
closely on this matter to ensure that applicants are aware of their
responsibilities.
Senator Olson asked if this amendment would assist in reducing the
application backlog.
Mr. Sommerville responded it would not affect the backlog.
Co-Chair Kelly removed his objection to adoption of the amendment.
Without objection the amendment was ADOPTED.
Co-Chair Kelly reminded there was discussion about amending the
fiscal note during the previous hearing on this bill.
JENNIFER YUHAS, Staff to Representative Masek, Chair of the House
Resources Committee, relayed the sponsor's assertion that the
$200,000 appropriated for the current fiscal year is sufficient to
implement this legislation.
Co-Chair Donley moved to adopt a replacement zero fiscal note for
the Department of Natural Resources.
Senator Hoffman directed attention to the contractual services
component of the fiscal note and asked if services were to be
contracted out or how the functions would be performed if
additional positions were not funded.
Co-Chair Kelly responded that $300,000 was appropriated to the
Department the previous session for the purpose of addressing the
application backlog.
Senator Hoffman asked if that appropriation was for contractual
services.
Ms. Yuhas informed the $300,000 appropriation was made to the
Department with the intent it would be used to hire additional
staff to address the backlog. She reiterated the sponsor's opinion
that that this amount is adequate.
Senator Hoffman suggested that if the Department does not have the
necessary expertise to implement this legislation, it would be
necessary to contract for outside assistance, which would decrease
the amount of funds available to hire staff to address the backlog.
Ms. Yuhas stated the Department has made this argument, although
the hiring of additional staff to address the backlog is not
complete and thus the funds appropriated for the current fiscal
year have not been utilized.
Senator Hoffman asserted that if the amount of the backlog is not
reduced to the Legislature's expectation, the Legislature is to
blame for imposing additional expenditure requirements.
Senator Leman informed that $50,000 of the original appropriation
remains, which could lapse. He expressed intent that the Department
"hire aggressively" to fill the positions.
Co-Chair Kelly suggested the FY 03 Operating Budget Conference
Committee could reappropriate the lapsing funds to contractual
services.
Senator Hoffman clarified he did not object to adoption of the
amendment, but emphasized it could adversely impact the reduction
to the backlog.
There was no objection and the Committee ADOPTED a new zero fiscal
note for the Department of Natural Resources.
Senator Leman "moved to report House Bill 421 as amended from
Committee with individual recommendations and the accompanying
Senate Finance fiscal note."
Without objection CS SB 421 (FIN) MOVED from Committee with zero
fiscal note written by the Senate Finance Committee for the
Department of Natural Resources.
CS FOR HOUSE BILL NO. 128(L&C)(efd add)
"An Act relating to the required approval of the commissioner
of labor and workforce development for the employment of
certain minors; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Amendment #1: This amendment provides that a written consent must
be signed before a minor begins work. The amended language to
Section 2, on page 2 lines 16 and 17 of the committee substitute
reads as follows.
(5) must be signed by a parent or legal guardian of
the minor before the date the minor begins working the job
specified in the consent.
Senator Austerman reminded the Committee of a concern he voiced
during the previous hearing on this bill that this legislation
would allow a minor of a certain age to work without the permission
of a parent. He noted this amendment addresses this concern and he
moved for adoption.
Senator Green relayed a conversation she had "with the person who
requested this legislation" where she learned the issue is not
minors attempting to gain employment against their parents'
direction. She stated that the farmer she spoke with informed her
that he has had to deny employment to minors because of legal
restrictions.
Senator Green suggested allowing a grace period between when
employment begins and when a parental consent is required. She
explained this would be beneficial in the event a parent is out of
town.
Senator Ward commented that many businesses do not hire people
under the age of 14, which he asserted is wrong. However, he
understood the "hassle" involved in hiring young workers. He
surmised this amendment and this legislation would eliminate some
of the difficulties. He noted this amendment allows a seven-day
grace period between the start of employment and submission of the
necessary documents to the Department of Labor and Workforce
Development.
AT EASE 4:56 PM / 5:01 PM
The amendment was ADOPTED without objection.
Senator Ward "moved House Bill number 128 as amended out of
Committee with individual recommendations and accompanying note."
There was no objection and SCS CS HB 128 (FIN) with accompanying
$22,500 fiscal note #1 from the Department of Labor and Workforce
Development MOVED from Committee.
Co-Chair Kelly announced the Committee would limit consideration of
Senate Bills for the remainder of the legislative session.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 05:03 PM
| Document Name | Date/Time | Subjects |
|---|