Legislature(2009 - 2010)SENATE FINANCE 532

04/17/2009 09:00 AM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 113 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
+= HB 121 MUNICIPAL AIR QUALITY PROPERTY TAX CREDIT TELECONFERENCED
Scheduled But Not Heard
+= HB 221 MORTGAGE LENDING REGULATION TELECONFERENCED
Moved CSHB 221(L&C) Out of Committee
+ HB 63 COUNCIL DOMESTIC VIOLENCE: MEMBERS, STAFF TELECONFERENCED
Moved SCS CSHB 63(FIN) Out of Committee
+ HB 123 SUICIDE PREVENTION COUNCIL TELECONFERENCED
Moved CSHB 123(FIN) AM Out of Committee
+ HB 78 EXTEND BOARD OF PUBLIC ACCOUNTANCY TELECONFERENCED
Moved HB 78 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 17, 2009                                                                                           
                         9:25 a.m.                                                                                              
                                                                                                                                
9:25:23 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee meeting                                                                    
to order at 9:25 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Konrad  Jackson,   Staff,  Representative  Kurt   Olson;  Pat                                                                   
Davidson,  Legislative Auditor,  Legislative Audit  Division,                                                                   
Legislative   Affairs   Agency;  Crystal   Koeneman,   Staff,                                                                   
Representative Fairclough;                                                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None.                                                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 63(FIN)                                                                                                                    
          "An Act relating to the Council on Domestic                                                                           
          Violence and Sexual Assault."                                                                                         
                                                                                                                                
          CSHB 63  was REPORTED out  of Committee with  a "do                                                                   
          pass"  recommendation   and  with   two  previously                                                                   
          published  zero  fiscal notes:  FN1  (COR) and  FN3                                                                   
          (DHS); and  one previously published  fiscal impact                                                                   
          note: FN2 (DPS).                                                                                                      
                                                                                                                                
                                                                                                                                
HB 78     "An Act extending the termination date of the                                                                         
          Board of Public Accountancy; and providing for an                                                                     
          effective date."                                                                                                      
                                                                                                                                
          HB  78 was  REPORTED out  of Committee  with a  "do                                                                   
          pass" recommendation  and with previously published                                                                   
          fiscal impact note: FN1 (CED).                                                                                        
                                                                                                                                
CSHB 113(FIN) am                                                                                                                
          "An   Act   making   supplemental   appropriations,                                                                   
          capital  appropriations, and other  appropriations;                                                                   
          amending  appropriations; making appropriations  to                                                                   
          capitalize  funds; and  providing for an  effective                                                                   
          date."                                                                                                                
                                                                                                                                
          CSHB 113(FIN)  was heard and HELD in  Committee for                                                                   
          further consideration.                                                                                                
                                                                                                                                
CSHB 121(FIN)                                                                                                                   
          "An  Act   relating  to  and  authorizing   certain                                                                   
          municipalities  to provide  a  property tax  credit                                                                   
          for  an  improvement  that aids  in  improving  air                                                                   
          quality."                                                                                                             
                                                                                                                                
          CSHB 121  was was heard  and HELD in  Committee for                                                                   
          further consideration.                                                                                                
                                                                                                                                
CSHB 123(FIN) am                                                                                                                
          "An  Act  relating  to the  membership  and  voting                                                                   
          privileges  of  members  of the  Statewide  Suicide                                                                   
          Prevention Council;  extending the termination date                                                                   
          of  the Statewide Suicide  Prevention Council;  and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                
          CSHB 123  was REPORTED out of Committee  with a "do                                                                   
          pass"  recommendation   and  with   two  previously                                                                   
          published  fiscal impact notes from  the Department                                                                   
          of Health and Social Services: FN1 and FN2.                                                                           
                                                                                                                                
CSHB 221(L&C)                                                                                                                   
          "An  Act relating to  the state's participation  in                                                                   
          the  federal Nationwide  Mortgage Licensing  System                                                                   
          and  Registry, and to  mortgage lending  regulation                                                                   
          and  licensing;  and  providing  for  an  effective                                                                   
          date."                                                                                                                
                                                                                                                                
          CSHB 221  (L&C) was REPORTED out of  Committee with                                                                   
          a "do  pass" recommendation  and with  a previously                                                                   
          published fiscal note: FN1 (CED).                                                                                     
                                                                                                                                
9:25:38 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 221(L&C)                                                                                                
                                                                                                                                
     "An Act relating to the state's participation in the                                                                       
     federal Nationwide Mortgage Licensing System and                                                                           
     Registry, and to mortgage lending regulation and                                                                           
     licensing; and providing for an effective date."                                                                           
                                                                                                                                
9:26:36 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman noted the Department  of Commerce, Community                                                                   
and Economic  Development's fiscal  note for $98  thousand in                                                                   
program receipts.                                                                                                               
                                                                                                                                
Co-Chair Hoffman  MOVED to report  CSHB 221 out  of Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CSHB  221 (L&C)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with a previously  published fiscal                                                                   
note: FN1 (CED).                                                                                                                
                                                                                                                                
HOUSE BILL NO. 78                                                                                                             
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Public Accountancy; and providing for an effective                                                                         
     date."                                                                                                                     
                                                                                                                                
9:27:59 AM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  STAFF, REPRESENTATIVE  KURT OLSON,  reviewed                                                                   
the  legislation.  He  stated   that  the  Legislative  Audit                                                                   
Division reviewed the actions  of the board and recommended a                                                                   
four  year extension.  In  the future,  some  of the  board's                                                                   
services  may  be  outsourced  and  changes  to  the  board's                                                                   
structure might be instituted.  The board may also pursue new                                                                   
statutes  and  regulations. Therefore,  a  shorter  extension                                                                   
period was chosen.                                                                                                              
                                                                                                                                
Co-Chair Stedman noted the Department  of Commerce, Community                                                                   
and Economic Development's fiscal note for $99.4 thousand.                                                                      
                                                                                                                                
9:29:18 AMAT EASE                                                                                                             
9:29:46 AMRECONVENED                                                                                                          
                                                                                                                                
Senator  Olson  asked  for  a   description  of  the  service                                                                   
agreement  or  to  briefly explain  what  services  might  be                                                                   
outsourced.                                                                                                                     
                                                                                                                                
PAT   DAVIDSON,  LEGISLATIVE   AUDITOR,   LEGISLATIVE   AUDIT                                                                   
DIVISION,  LEGISLATIVE  AFFAIRS  AGENCY,  responded  that  in                                                                   
order  to  achieve  efficiencies   the  board  is  discussing                                                                   
delegating  services such  as:  management of  the CPA  exam;                                                                   
evaluation of applicants; and  continuing education services.                                                                   
Senator  Olson asked  if investigations  concerning  criminal                                                                   
activity  or malpractice  will  be outsourced.  Ms.  Davidson                                                                   
explained  that   investigations  are   a  function   of  the                                                                   
division.   The   board   evaluates  the   results   of   the                                                                   
investigations and that function will not be outsourced.                                                                        
                                                                                                                                
9:32:27 AM                                                                                                                    
                                                                                                                                
Senator Thomas  cited correspondence  from the Department  of                                                                   
Commerce,   Community  and  Economic   Development   and  the                                                                   
Department  of Administration  regarding  the board's  vacant                                                                   
positions. He  asked if the  vacancies have been  filled. Ms.                                                                   
Davidson answered  that she did  not know the  current status                                                                   
of the board positions.                                                                                                         
                                                                                                                                
Senator Thomas noted the division's  second recommendation to                                                                   
reduce  professional licensing  fees.  He asked  if the  fees                                                                   
will  be reduced  since the  board is  carrying a  cumulative                                                                   
balance. Ms.  Davidson responded  that she  did not  know the                                                                   
board's response to the recommendation.                                                                                         
                                                                                                                                
Co-Chair Hoffman MOVED to report  HB 78 out of Committee with                                                                   
individual recommendations and  the accompanying fiscal note.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  78  was  REPORTED  out of  Committee  with  a  "do  pass"                                                                   
recommendation  and with previously  published fiscal  impact                                                                   
note from the Department of Commerce,  Community and Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 63(FIN)                                                                                                 
                                                                                                                                
     "An Act relating to the Council on Domestic Violence                                                                       
     and Sexual Assault."                                                                                                       
                                                                                                                                
9:34:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT work draft LS0138\M                                                                             
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
CRYSTAL   KOENEMAN,    STAFF,   REPRESENTATIVE    FAIRCLOUGH,                                                                   
explained  the changes  to the legislation  reflected  in the                                                                   
work  draft.   She  pointed  out  that  the   legislation  as                                                                   
transmitted to the  Senate, specified in Section  4, that the                                                                   
executive director of the council  will be an exempt position                                                                   
while the  director's staff  will be  part of the  classified                                                                   
service. The  Senate State Affairs Committee  changed Section                                                                   
4,  to include  the executive  director and  staff in  exempt                                                                   
service.  Version M  changes the  section back  to the  House                                                                   
version.                                                                                                                        
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION                                                                                         
                                                                                                                                
Ms.  Koeneman reviewed  the legislation.  She explained  that                                                                   
the legislation  changed the composition of the  council. The                                                                   
bill increases the public members  from three to four. One of                                                                   
the  public   members  must  be   from  a  rural   area.  The                                                                   
commissioner of  the Department of Corrections  or a designee                                                                   
from the department will be added  to the board. The member's                                                                   
term of  office is changed from  two to three years  in order                                                                   
to  preside over  a complete  budget  cycle. The  legislation                                                                   
allows but does not require the  governor to consult with the                                                                   
Alaska Network  on Domestic Violence and Sexual  Assault when                                                                   
appointing public  members. Employees of the  state of Alaska                                                                   
may not be  members of the council. The  legislation expanded                                                                   
the  definition  of  "rural area"  to  include  a  population                                                                   
between 3500  and 7500. The requirement  for a quorum  is now                                                                   
five members.  Finally, new members will be  appointed within                                                                   
thirty days of the effective date of the legislation.                                                                           
                                                                                                                                
9:39:37 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman pointed  out  the three  fiscal notes:  the                                                                   
zero fiscal notes from the Department  of Corrections and the                                                                   
Department  of Health  and Social  Services,  and the  fiscal                                                                   
note for  the Department  of Public Safety  in the  amount of                                                                   
$7.9 thousand.                                                                                                                  
                                                                                                                                
Co-Chair Hoffman  MOVED to  report CSHB  63 out of  Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
CSHB  63 was  REPORTED  out of  Committee  with  a "do  pass"                                                                   
recommendation and with two previously  zero fiscal notes and                                                                   
one  previously   published  fiscal  impact  note   from  the                                                                   
Department of Public Safety.                                                                                                    
                                                                                                                                
CSHB  63 was  REPORTED  out of  Committee  with  a "do  pass"                                                                   
recommendation and with two previously  published zero fiscal                                                                   
notes: FN1 (COR) and FN3 (DHS);  and one previously published                                                                   
fiscal impact note: FN2 (DPS).                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 123(FIN) am                                                                                             
                                                                                                                                
     "An   Act  relating   to  the   membership  and   voting                                                                   
     privileges   of  members   of   the  Statewide   Suicide                                                                   
     Prevention  Council; extending  the termination  date of                                                                   
     the Statewide Suicide Prevention  Council; and providing                                                                   
     for an effective date."                                                                                                    
                                                                                                                                
9:41:03 AM                                                                                                                    
                                                                                                                                
Co-Chair  Steadman spoke  to  the two  fiscal  notes for  the                                                                   
Department of Health  and Social Services: FN1  in the amount                                                                   
of $46.3  thousand to fund  a half position,  and FN2  in the                                                                   
amount of $82.8 thousand for travel and supply costs.                                                                           
                                                                                                                                
Representative  Fairclough  explained  that  the  legislation                                                                   
extends  the  Suicide  Prevention  Council.  She  added  that                                                                   
Alaska has  the worst rates of  suicide in the  nation. Rural                                                                   
Alaskans and  Alaska Natives  have a disproportionately  high                                                                   
suicide rate. The council is working  on a strategic plan for                                                                   
suicide prevention in the state.                                                                                                
                                                                                                                                
9:43:33 AM                                                                                                                    
                                                                                                                                
Senator Olson  questioned the  effectiveness of the  council.                                                                   
Representative  Fairclough  answered  that  the  council  has                                                                   
implemented  strategies  of public  outreach  to help  people                                                                   
identify  at risk populations.  She felt  that the  council's                                                                   
operation was dysfunctional solely  because of the structure.                                                                   
The   council  contained   four  voting   members  from   the                                                                   
legislature,  which created a  quorum challenge.  The council                                                                   
was  unable  to  take decisive  action  when  necessary.  She                                                                   
stated that  Senator Davis helped  implement changes  to make                                                                   
the  legislative  members  non-voting  so  a  quorum  can  be                                                                   
reached and solutions can be advanced.                                                                                          
                                                                                                                                
Co-Chair Hoffman  MOVED to report  CSHB 123 out  of Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CSHB  123 was  REPORTED out  of  Committee with  a "do  pass"                                                                   
recommendation  and  with  two  previously  published  fiscal                                                                   
impact  notes  from  the  Department  of  Health  and  Social                                                                   
Services: FN1 and FN2.                                                                                                          
                                                                                                                                
9:43:55 AMRECESSED                                                                                                            
3:19:38 PMRECONVENED                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:19 PM.                                                                                           

Document Name Date/Time Subjects
02_HB78_Sponsor_Statement.pdf SFIN 4/17/2009 9:00:00 AM
HB 78
04_HB78_LBA_Audit_Summary__08-20056-09.pdf SFIN 4/17/2009 9:00:00 AM
HB 78
ANDVSALETTER.pdf SFIN 4/17/2009 9:00:00 AM
HB 63
CDVSATASKFORCE.pdf SFIN 4/17/2009 9:00:00 AM
HB 63
CouncilDVSA LETTER.pdf SFIN 4/17/2009 9:00:00 AM
HB 63
CSHB63 Sectional Analysis - Electronic.doc SFIN 4/17/2009 9:00:00 AM
HB 63
CSHB63 Sponsor Statement - Electronic.doc SFIN 4/17/2009 9:00:00 AM
HB 63
CSHB123 Explanation of Changes - Electronic.doc SFIN 4/17/2009 9:00:00 AM
HB 123
HB123 Backup.pdf SFIN 4/17/2009 9:00:00 AM
HB 123
HB_123_Legislative_Audit_06-20055-08[1].pdf SFIN 4/17/2009 9:00:00 AM
HB 123
05_HB78_LBA_Full_Audit_Report__08-20056-09.pdf SFIN 4/17/2009 9:00:00 AM
HB 78
Hb 121 Amendment Work Draft SCS HB121 FIN.pdf SFIN 4/17/2009 9:00:00 AM
HB 121
HB123 Sponsor Statement - Electronic.doc SFIN 4/17/2009 9:00:00 AM
HB 123
House Bill 123 sectional - Electronic.doc SFIN 4/17/2009 9:00:00 AM
HB 123
SCS HB63 Version M.pdf SFIN 4/17/2009 9:00:00 AM
HB 63
SCSforCSHB121(FIN)TWORK DRAFT.pdf SFIN 4/17/2009 9:00:00 AM
HB 121