Legislature(2007 - 2008)SENATE FINANCE 532
03/15/2008 10:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB120 | |
| SB209 | |
| SB243 | |
| SB254 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 120 | TELECONFERENCED | |
| += | SB 209 | TELECONFERENCED | |
| += | SB 243 | TELECONFERENCED | |
| += | SB 254 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 15, 2008
10:05 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 10:05:26 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Darwin Peterson, Staff, Senator Bert Stedman; Dana Owen,
Staff, Senator Johnny Ellis; Paula Scavera, Legislative
Liaison, Department of Labor and Workforce Development; Pat
Davidson, Legislative Auditor, Legislative Audit Division,
Legislative Affairs Agency; Tom Obermeyer, Staff, Senator
Bettye Davis; Senator Bettye Davis, Pat Davidson,
Legislative Auditor, Legislative Audit Division, Legislative
Affairs Agency; Denise Daniello, Executive Director, Alaska
Commission on Aging; Joanne Gibbons, Program Manager,
Department of Health and Social Services; Jodi Simpson,
Staff, Senator Charlie Huggins; Sally Saddler, Legislative
Liaison, Commerce Community and Economic Development
PRESENT VIA TELECONFERENCE
Michael Hanzuk, Development Specialist, Ardor Program,
Department of Commerce, Community and Economic Development;
Mike Catsi, Southwest Alaska Municipal Conference
SUMMARY
SB 120 "An Act relating to the calculation and payment of
unemployment compensation benefits; and providing
for an effective date."
CSSB 120 (FIN) was REPORTED out of Committee with
"no recommendation" and a new fiscal note from the
Department of Labor and Workforce Development.
SB 209 "An Act extending the termination date of the
Alaska Commission on Aging; and providing for an
effective
date."
SB 209 was REPORTED out of Committee with a "do
pass" recommendation and a new fiscal note from
the Department of Health and Social Services.
SB 243 "An Act relating to the duties and powers of the
Alaska Commission on Aging and the Department of
Health and Social Services."
CSSB 243(HES) was REPORTED out of Committee with a
"do pass" recommendation and fiscal note #1 & #2
from Department of Commerce, Community and
Economic Development.
SB 254 "An Act extending the termination date of the
Alaska regional economic assistance program; and
providing for an effective date."
SB 254 was REPORTED out of Committee with a "do
pass" recommendation and fiscal note #1 & #2 from
Department of Commerce, Community and Economic
Development.
10:05:36 AM
SENATE BILL NO. 120
"An Act relating to the calculation and payment of
unemployment compensation benefits; and providing for
an effective date."
Co-Chair Hoffman MOVED to ADOPT Work Draft for SB 120, 25-
LSO622/N, Wayne, 3/14/08.
Co-Chair Stedman OBJECTED.
DARWIN PETERSON, STAFF, SENATOR STEDMAN, explained that
there are three main changes:
· Sec. 9, line 7, changed to 2 year phase in for the
decreased contribution rate paid by the employer.
Instead of going from 80% to 73% in one year, the
phase in would be 76% beginning January 1, 2009 and
73% beginning January 1, 2010.
· Page 6, line 13, Sec. 10 creates the two year phase
in for the increased contribution rate paid by the
employee. The rate would change to 24% beginning
January 1, 2009 and 27 % beginning January 1, 2010.
· Sec. 13, 14 and 15 have been deleted. He explained
that section 13 was a conforming amendment that is no
longer needed with the deletion of section 14.
Section 14 is the automatic annual recalculation of
the benefit amount (escalator clause). Sec. 15 was
deleted as it conflicted with federal law. He
referenced the handout of federal tax code Chapter 23
- Federal Unemployment Tax Act (On File).
Co-Chair Stedman WITHDREW his OBJECTION.
There being NO OBJECTION, CSSB120 (FIN) 25-LSO622/N, Wayne,
3/14/08 was adopted.
10:10:03 AM
DANA OWEN, STAFF, SENATOR ELLIS, presented SB 120. He
informed the Committee that for the last 11 years the
maximum weekly benefit amount for unemployment insurance has
remained at $248. He explained that the intent of SB 120 is
to raise unemployment insurance to $370.
Senator Olson asked if the Sponsor agreed with the changes
in the Committee Substitute.
Mr. Owen said the Sponsor is fine with the change and
believes it is an improvement to the bill.
Senator Olson asked if those effected by the changes in the
CS have commented on the change.
10:12:37 AM
Mr. Owen acknowledged that the escalator clause may not stay
in the bill. He explained that members of both houses have
discussed the automatic adjustment to benefit amounts
(escalator clause, Sec. 15). There are many who oppose
these adjustments and Senator Ellis had anticipated this and
discussed the issue with others, but there is no public
testimony on record regarding the changes.
Senator Thomas said he is pleased to see the increase in the
amount. He would prefer to see the escalator clause in the
bill, but is not concerned with its removal.
10:14:26 AM
Co-Chair Hoffman MOVED to REPORT CSSB 120(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
Co-Chair Stedman OBJECTED and asked if the Administration
had an opinion on the bill.
10:15:24 AM
PAULA SCAVERA, LEGISLATIVE LIAISON, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, said there was no comment from the
Department.
Co-Chair Stedman WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
AT EASE: 10:16:20 AM
RESUME: 10:17:17 AM
SENATE BILL NO. 209
"An Act extending the termination date of the Alaska
Commission on Aging; and providing for an effective
date."
}Senator Bettye Davis, Sponsor, explained that SB 209 is
simply an extension of the termination date of the Alaska
Commission on Aging. She said the legislative audit
suggests the extension of the Commission.
10:17:37 AM
Senator Dyson asked what the recommendation of the audit
was. Senator Davis said the audit recommended that the
Commission be extended by five years. Additional changes
were recommended and are addressed in SB 243. The audit
recommended that some duties of the Commission be given to
the Department.
Senator Dyson asked if there was any analysis of what the
commission had accomplished. Senator Davis said the Alaska
State Plan, Senior Services FY 08-FY 2011 report, provides
that information and is in the bill packet.
Co-Chair Stedman asked if the eight-year extension is a
standard extension time. Senator Davis said that was the
recommended time for extending the Board.
10:19:46 AM
PAT DAVIDSON, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT
DIVISION, LEGISLATIVE AFFAIRS AGENCY, summarized the audit.
She said that the eight-year extension is the standard
extension for commissions that are currently under the
sunset clause. The division recommends that the termination
date be extended. "The commission meets all the federal
requirements to have an advisory council consisting of older
individuals who are eligible to participate in federally
funded programs under the Older Americans Act." The audit
recommended that the administration of grants be moved to a
division within the Department of Health and Social Services
(DHSS) due to its experience as a granting agency. In 2003
the commission moved from Department of Administration to
DHSS. Legislative audit suggested the statute be changed to
reflect the shift in function and roles. At the time of the
move, the focus and intent changed from being a granting
agency to limiting the focus to advocacy, issues. She said
the audit also found that staff turnovers and vacancies
hampered the functions of the commission. She noted that
with the refocus on advocacy the commission is more
effective.
10:22:31 AM
Co-Chair Stedman addressed the fiscal note from the
Department of Health and Social Services for $482.8
thousand.
Senator Dyson commented on the quote from the analysis
"helping older Alaskans lead dignified, independent, and
productive lives." He said the wording provides no specifics
and no tools to measure effectiveness. He expressed
concerned about lack of goals and objectives that can be
measured.
Senator Thomas noted that the older population is
increasing, hence the need for greater funds.
10:25:54 AM
Senator Olson shared Senator Dyson's view, in general,
regarding the importance of quantifying needs for funds. He
underlined that the aging population is growing and the
importance of taking care of that segment of the population.
Co-Chair Hoffman MOVED to REPORT SB 209 out of Committee
with individual recommendations and the accompanying fiscal
note.
There being NO OBJECTION, it was so ordered.
SENATE BILL NO. 243
"An Act relating to the duties and powers of the Alaska
Commission on Aging and the Department of Health and
Social Services."
10:29:24 AM
TOM OBERMEYER, STAFF, SENATOR DAVIS, read from the sponsor
statement:
The CS for Senate Bill 243(HES), 25-LS1351\E, has a
zero fiscal note. As required by a 2007 Legislative
Audit, this "clean-up" bill brings into alignment grant
duties and responsibilities that were previously given
to the Department of Health and Social Services (DHSS),
when the Commission on Aging (ACoA) and Division of
Senior Services became part of DHSS. For this reason,
statutory changes repeatedly replace "Commission"
(ACoA) with "Department" (DHSS) to properly recognize
the duties and responsibilities of each. This bill,
which mirrors CSHB 279(HES), 25-LS1106\E, assigns
authority for establishing state policy related to the
Older Americans Act federal programs and state programs
for Older Alaskans to the Department of Health and
Social Services. DHSS is recognized as the state "Unit
on Aging."
The bill also transfers grant authority related to
senior service grants, adult day care, and family
respite care grants from the Alaska Commission on Aging
to DHSS. DHSS has assigned these grant administrative
duties to Senior and Disabilities Services. As
background to the importance of the duties and
responsibilities recognized in this bill, the Alaska
Commission on Aging is responsible for planning,
advocacy, and community education activities related to
the health and welfare of older Alaskans. It has
relationships with state departments and agencies
across the state, including the governor's office, the
Alaska Mental Health Trust Authority, the Alaska
Housing and Finance Corporation, and non-governmental
organizations.
The need for senior programs and services is rapidly
increasing, Per the State plan for Senior Services FY
2008-FY 2011, Alaska already has the highest proportion
of baby boomers (32%) in the nation, and its senior
population is growing faster than almost any other
state. By 2030 seniors 60+ will comprise 17% of the
Alaska population, with a doubling of the number of
those 65+.
10:32:33 AM
Co-Chair Stedman asked if the bill was created as a response
to the audit. Mr. Obermeyer confirmed and added that the
language in the statute did not reflect the changes in
responsibilities when the transfer took place.
Co-Chair Stedman asked if the provision complies with
federal requirements of the Older Americans Act. Mr.
Obermeyer informed the Committee that "Alaska's state plan
for senior services" was signed by the state and federal
Departments of Health and Social Services, as well as the
Department of Commerce, Community and Economic Development.
He noted "the importance of the federal government signing
off on the plan is that a significant portion of the
financial aspects are paid for by the federal government."
The federal government reviews every plan before it
authorizes the release of funds.
10:35:42 AM
Senator Dyson questioned the language on page 6 line 10;
"contract for necessary services". He asked if the language
is for the commission to contract services for the
commission.
Mr. Obermeyer deferred to Ms. Daniello.
10:36:53 AM
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, said the language allows the commission to contract
for services with other entities. She provided an example:
The commission contracted with DHSS, the Mental Health Trust
Authority and the University of Alaska to produce Report on
Economic Wellbeing of Alaska Seniors.
10:38:06 AM
Senator Dyson commented that the commission has no authority
under the provision to contract for services for seniors.
The services they have authority to contract are those that
serve the mission and execute the duties of the commission.
He would have preferred clarity in the law outlining that
the commission is to encourage independence, not dependence
on government.
Ms. Daniello reported that currently there are 81,000
seniors in Alaska that make significant contributions to the
state. This population contributes significantly to the
state economically through retirement incomes and social
security. She added that seniors also contribute thousands
of volunteer hours to organizations throughout the state.
She underlined that the commission is helping people to lead
independent lives. The commission was established in 1982.
The average age of a Pioneer home resident was late 60s; now
the average age is 82. This illustrates that seniors are
entering nursing homes at a later age, which saves the state
money.
10:41:40 AM
JOANNE GIBBONS, PROGRAM MANAGER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, testified in support of the bill. She
explained that the current structure is a collaborative
effort between the department and the commission and is
working very well.
Co-Chair Hoffman MOVED to Report CSSB 243(HES) out of
Committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, CSSB 243(HES) was REPORTED out of
Committee with a "do pass" recommendation and fiscal note #1
& #2 from Department of Commerce, Community and Economic
Development.
10:43:27 AM
SENATE BILL NO. 254
"An Act extending the termination date of the
Alaska regional economic assistance program;
and providing for an effective date."
JODI SIMPSON, STAFF, SENATOR HUGGINS, presented SB 254 and
read from the sponsor statement:
The Alaska Regional Economic Assistance Program was
created by the Legislature in 1988 to promote the
economic development of Alaska's urban and rural areas.
This program enables the creation of Alaska Regional
Development Organizations (ARDORs). Each ARDOR is
guided and directed by a board of directors composed of
the economic development interests in the region. To
carry out their mission, the State provides funding in
the form of grants for the ARDOR program. In turn, the
ARDORs use that money to leverage, on average, eight
times the State's investment in private, federal, and
other funds. Currently, there are 11 ARDORs across the
state. These ARDORs:
• Enable local officials and businesses to pool
their limited resources and work together on
economic development;
• Develop partnerships among public, private and
other organizations; and
• Provide technical assistance via direct links
with local citizens.
SB 254 is a companion bill to House Bill 272, which is
sponsored by Representative Bill Stoltze. The Alaska
Regional Economic Assistance Program and its ARDORs are
an important part of the economic development of their
regions. I ask your support in extending this program
to 2013.
10:46:32 AM
Senator Dyson noted that Ms. Pat Davidson, Legislative
Auditor testified that the standard extension is eight
years. He questioned why the provision extends to only five
years.
Ms. Simpson explained that there was some discussion on
decreasing the standard five year extension to three years.
The extension remained at five years and she was uncertain
if the eight year extension was considered.
10:47:37 AM
Senator Huggins explained the standard of eight years
relates to boards and commissions which is a different
category from programs.
Ms. Simpson said there are two fiscal notes from Department
of Commerce, Community and Economic Development.
Senator Huggins noted there is a considerable amount of
nongovernmental funds that come into play with the
organization.
Co-Chair Stedman asked if Legislative Budget and Audit
(LB&A) reviewed any of the activities of the AIEDEA.
Ms. Simpson explained that each ARDOR is responsible for
conducting an internal audit. She said Ms. Davidson
reported there has not been a Legislative audit in the last
10 years.
Co-Chair Stedman asked Ms. Simpson to explain the role of
ARDORS as collaborator with other organizations to improve
economic conditions.
10:49:41 AM
Ms. Simpson deferred to Michael Hanzuk and Mike Catsi who
could better explain their relationship with other
organizations.
10:50:29 AM
MICHAEL HANZUK, DEVELOPMENT SPECIALIST, ARDOR PROGRAM,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
(testified via teleconference) in support of SB 254. Mr.
Hanzuk said there has been a great deal of collaboration
within the 11 groups, as well as at the local level with
economic development groups. Each region works with all
entities to determine the regions goals and objectives.
10:52:56 AM
MIKE CATSI, SOUTHWEST ALASKA MUNICIPAL CONFERENCE (testified
via teleconference), in support of SB 254. He explained
that his organization works with a wide range of
organizations. He said he was available for any questions.
Senator Thomas commented that ARDORS are good coordinators
for collaboration on economic development issues.
SALLY SADDLER, LEGISLATIVE LIAISON, COMMERCE COMMUNITY AND
ECONOMIC DEVELOPMENT, addressed the fiscal note. She
explained the fiscal note adds $13.1 thousand of AIDEA
receipts to be transferred to the Office of Economic
Development via inter-agency receipts for keeping the
position funded at 50 percent.
Senator Olson emphasized the value of the work done by
ARDORS in his district and voiced strong support of SB 254.
10:56:28 AM
Senator Huggins emphasized the importance of economic
development across the state and the significance of the
ARDORS role in assisting communities in that endeavor.
Senator Huggins MOVED to Report out of Committee SB 254
with individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
AT EASE: 10:57:38 AM
RECONVENE:10:58:18 AM
ADJOURNMENT
The meeting was adjourned at 10:58 AM
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