Legislature(1993 - 1994)

03/29/1993 09:35 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         March 29, 1993                                        
                            9:35 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-93, #43, Side 2 (349-end)                                                
  SFC-93, #45, Side 1 (000-end)                                                
  SFC-93, #45, Side 2 (575-291)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Steve  Frank,  Co-chair,  convened the  meeting  at                 
  approximately 9:35 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition to  Co-chairman Frank,  Senators Jacko,  Kelly,                 
  Kerttula, Rieger,  and Sharp  were present.   Co-chair  Drue                 
  Pearce did not attend.                                                       
                                                                               
  ALSO   ATTENDING:    Commissioner   Nancy  Usera,  Dept.  of                 
  Administration;  Commissioner  Darrel  Rexwinkel,  Dept.  of                 
  Revenue;   Commissioner   Glenn  Olds,   Dept.   of  Natural                 
  Resources; Bruce Botelho, Deputy  Attorney General, Dept. of                 
  Law;  Dean  Guaneli,   Chief,  Assistant  Attorney  General,                 
  Criminal  Division,  Dept.  of  Law;  Keith  Gerken,  Deputy                 
  Commissioner, Dept. of Transportation and Public Facilities;                 
  C. E.  Swackhammer,  Deputy Commissioner,  Dept.  of  Public                 
  Safety; Cheryl Frasca, Director of  Budget Review, Office of                 
  Management and  Budget; Ken Bischoff,  Director, Division of                 
  Administrative  Services,  Dept.  of Public  Safety;  Janice                 
  Adair,  Assistant  Commissioner,   Dept.  of   Environmental                 
  Conservation;   Janet   Clarke,   Director,    Division   of                 
  Administrative   Services,  Dept.   of  Health   and  Social                 
  Services;  Kit  Ballentine,  Acting  Director,  Division  of                 
  Environmental Health, Dept.  of Environmental  Conservation;                 
  John  Walsh,  Deputy  Director/Juneau, Community  and  Rural                 
  Development  Division,  Dept.  of   Community  and  Regional                 
  Affairs; Bill  Miles, aide  to Senator  Pearce; Rick  Solie,                 
  aide to  Senator Frank; and  aides to committee  members and                 
  other members of the legislature.                                            
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SCR 2     -    Relating to certification of the Alaska State                 
                 Legislature's    opposition   to    requiring                 
                 suspension  of  a driver's  license  for drug                 
                 offenses.                                                     
                                                                               
                 CSSCR  2  (Finance)   was  REPORTED  OUT   of                 
                 committee  with a  SFC  letter of  intent and                 
                 zero fiscal  notes from  the Dept.  of Public                 
                                                                               
                                                                               
                 Safety and Dept. of Transportation and Public                 
                 Facilities.                                                   
                                                                               
  SB 100    -    Act   making    supplemental   and    special                 
  appropriations                for  the  expenses   of  state                 
                                government;  making, amending,                 
                                and   repealing   capital  and                 
                                operating  appropriations; and                 
                                providing  for   an  effective                 
                                date.                                          
                                                                               
                 A draft CSSB 100 (Fin) was distributed, and a                 
                 sectional   review   of   funding   for   the                 
                 following departments was had:                                
                                                                               
                 Dept. of Administration                                       
                 Dept. of Law                                                  
                 Dept. of Revenue                                              
                 Dept. of Health and Social Services                           
                 Dept. of Military and Veterans' Affairs                       
                 Dept. of Natural Resources                                    
                 Dept. of Public Safety                                        
                 Dept. of Environmental Conservation                           
                 Dept. of Community and Regional Affairs                       
                 Dept. of Corrections                                          
                 University of Alaska                                          
                                                                               
                 (Log notes were  taken of SB 100  discussion.                 
  See                                                                          
                 page 4 of these minutes for availability.)                    
                                                                               
                                                                               
  SENATE CONCURRENT RESOLUTION NO. 2                                           
                                                                               
       Relating  to  certification  of the  Alaska  State                      
       Legislature's opposition  to requiring  suspension                      
       of a driver's license for drug offenses.                                
                                                                               
  Upon convening the meeting,  Co-chairman Frank directed that                 
  SCR  2   be  brought  on  for  discussion.    SENATOR  SHARP                 
  referenced a draft  Senate Finance Committee Substitute  (8-                 
  LS0631\J) and  MOVED for  adoption for discussion  purposes.                 
  No objection having been raised, IT WAS SO ORDERED.                          
                                                                               
  Senator Sharp explained  that the Senate Finance  version is                 
  intended to "take care of the problem of the federal mandate                 
  on highway funds."  The  state was faced with the  option of                 
  passing either a bill or a  resolution.  The Finance version                 
  cleans up and eliminates objectional phrases in the original                 
  resolution.  A resolution containing the same wording as the                 
  Finance  version  is presently  making  its way  through the                 
  House.                                                                       
                                                                               
                                                                               
  There  is  an April  1  deadline  on passage.    Federal law                 
  requires that  states must have  enacted and be  enforcing a                 
  law  that  provides  for  revocation  or  suspension  of  an                 
  individual's driving license  upon conviction of  possession                 
  of  a  controlled substance  or any  drug  offense.   SB 133                 
  (REVOCATION OF DRIVER'S LICENSE) was introduced to meet that                 
  requirement.  The  proposed resolution is an  alternative to                 
  passage of  SB 133.   The alternative  provides that  states                 
  submit  to the Secretary  of Transportation  a certification                 
  stating  that  the  Governor  is  opposed  to  enactment  or                 
  enforcement of the required revocation, and the  legislature                 
  has adopted a resolution expressing  its opposition as well.                 
  The  administration  has indicated  it  will support  either                 
  approach.                                                                    
                                                                               
  Penalties  are  severe  if  the  state  does  not  meet  the                 
  statutory  requirement.   Approximately  5%  of its  federal                 
  highway  apportionment for  FY 94  will  be withheld.   That                 
  percentage would  also be  withheld in  FY 95.   Thereafter,                 
  commencing with FY  96, 10% would  be withheld.  The  fiscal                 
  note demonstrates what would be lost if  the federal mandate                 
  is not met.                                                                  
                                                                               
  Many states have opted to  proceed with a similar resolution                 
  because  they  resent  federal  government intervention  and                 
  philosophically   disagree   with  proposed   enactment  and                 
  enforcement of law.   Sixteen  states have passed  statutes,                 
  but only three have met the federal mandate.                                 
                                                                               
  The fiscal note evidences the cost of a 5% reduction for the                 
  first  two  years of  ISTEA  based on  the  anticipated $212                 
  million Alaska is likely to receive.                                         
                                                                               
  Senator  Sharp  next   directed  attention  to   a  proposed                 
  amendment and  explained that  it would  change October  31,                 
  1993, to October 1, 1993, at page 1, line 10.  The change is                 
  needed  to  meet  the federal  mandate.    Co-chairman Frank                 
  called for objections  to adoption.  None  were forthcoming,                 
  and AMENDMENT NO. 1 WAS ADOPTED.                                             
                                                                               
  Senator Sharp  then  directed  attention  to  the  following                 
  intent language:                                                             
                                                                               
       It is the intent of  the Alaska State Legislature,                      
       in  enacting  SCR  2,  that  the State  of  Alaska                      
       continue  to  vigorously enforce  laws prohibiting                      
       illegal  drug  use,  while   avoiding  unnecessary                      
       entanglement  with  the  federal  government  over                      
       which method is most effective  to prevent illegal                      
       drug  use.    It   is  also  the  intent  of   the                      
       Legislature that the  State maintain its sovereign                      
       right to enact legislation  punishing illegal drug                      
       use  and  that  the  enactment  of  criminal  laws                      
       applicable to  illegal drug  use in  the state  be                      
                                                                               
                                                                               
       reserved to the legislature.                                            
                                                                               
  Co-chairman Frank called  for objections to adoption  of the                 
  intent.   No objection  having  been raised,  the LETTER  OF                 
  INTENT WAS ADOPTED.                                                          
                                                                               
  Senator  Kelly  MOVED  that  CSSCR  2  (Finance)  pass  from                 
  committee   with   individual   recommendations    and   the                 
  accompanying letter  of intent.   No  objection having  been                 
  raised, CSSCR 2 (Finance) was REPORTED OUT of committee with                 
  the Senate  Finance letter of  intent and zero  fiscal notes                 
  from the Dept. of Public Safety and  Dept. of Transportation                 
  and Public  Facilities.   All members  signed the  committee                 
  report with a "do pass" recommendation with the exception of                 
  Co-chair Pearce who was not present at the meeting.                          
                                                                               
                                                                               
  SENATE BILL NO. 100                                                          
                                                                               
       An Act  making supplemental and  special appropriations                 
       for the expenses of state government; making, amending,                 
       and repealing capital and operating appropriations; and                 
       providing for an effective date.                                        
                                                                               
                                                                               
  (Cross Reference to CCS SB 165 which ultimately incorporated                 
  supplemental,  reappropriations,   and  Alyeska   Settlement                 
  expenditures.)                                                               
                                                                               
  Co-chairman Frank distributed a draft CSSB 100 (Finance) for                 
  members'  review.    He then  commenced  a  sectional review                 
  covering      supplemental   funding   for   the   following                 
  departments:                                                                 
                                                                               
                 Dept. of Administration                                       
                 Dept. of Law                                                  
                 Dept. of Revenue                                              
                 Dept. of Health and Social Services                           
                 Dept. of Military and Veterans' Affairs                       
                 Dept. of Natural Resources                                    
                 Dept. of Public Safety                                        
                 Dept. of Environmental Conservation                           
                 Dept. of Community and Regional Affairs                       
                 Dept. of Corrections                                          
                 University of Alaska                                          
                                                                               
  (Log notes were  taken for this  portion of the meeting  and                 
  are appended  to these  minutes.   Copies of  the log  notes                 
  and/or  tape  may  be obtained  through  the  Senate Finance                 
  Committee secretary's  office, Room  520, Capitol  Building,                 
  Juneau,  Alaska, (907)  465-2618,  or from  the  Legislative                 
  Finance  Division, P.O.  Box 113200,  Juneau, Alaska  99811-                 
                                                                               
                                                                               
  3200, (907) 465-3795.)                                                       
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 11:15 a.m.                        
                                                                               

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