Legislature(1993 - 1994)
04/12/1993 02:23 PM Senate HES
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SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE
April 12, 1993
2:23 p.m.
MEMBERS PRESENT
Senator Steve Rieger, Chairman
Senator Bert Sharp, Vice-Chairman
Senator Loren Leman
Senator Mike Miller
Senator Jim Duncan
Senator Johnny Ellis
MEMBERS ABSENT
Senator Judy Salo
COMMITTEE CALENDAR
SENATE BILL NO. 145
"An Act establishing the position of state medical examiner;
and relating to preparation of death certificates."
SENATE BILL NO. 180
"An Act relating to reimbursement of school construction debt;
and providing for an effective date."
SENATE BILL NO. 181
"An Act relating to grants for school construction; and
providing for an effective date."
SENATE JOINT RESOLUTION NO. 30
Proposing amendments to the Constitution of the State of
Alaska creating a school construction and maintenance fund.
SENATE BILL NO. 59
"An Act relating to school construction grants and major
maintenance grants to school districts; providing for school
district participation in the cost of school construction and
major maintenance; creating a major maintenance grant fund;
and providing for an effective date."
SENATE BILL NO. 60
"An Act making appropriations for construction and major
maintenance of schools; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 145 - See State Affairs minutes dated 4/5/93 and
4/7/93.
SB 180 - No previous action to record.
SB 181 - No previous action to record.
SJR 30 - No previous action to record.
SB 59 - See HESS minutes dated 2/3/93, 2/10/93.
SB 60 - See HESS minutes dated 2/3/93, 2/10/93.
WITNESS REGISTER
Dr. Peter Nakamura, Director
Division of Public Health
Department of Health & Social Services
P.O. Box 110610
Juneau, AK 99811-0610
POSITION STATEMENT: Testified in support of SB 145
Bob Poe, Staff to Senator Drue Pearce
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on SB 180, SB 181
and SJR 30
Duane Guiley, Director
School Finance
Department of Education
801 W. 10th St., Suite 200
Juneau, AK 99801-1894
POSITION STATEMENT: Offered information on SB 180, SB 181,
SB 59 and SB 60
ACTION NARRATIVE
TAPE 93-34, SIDE A
Number 001
CHAIRMAN RIEGER called the Senate Health, Education and Social
Services (HESS) Committee to order at 2:23 p.m. and introduced
SB 145 (POSITION OF STATE MEDICAL EXAMINER) as the first order
of business.
DR. PETER NAKAMURA, Director, Division of Public Health,
Department of Health and Social Services, explained that SB
145 would allow the state to establish a medical examiner
system.
Currently, the state assumes the costs of post mortem
examinations for deaths that are unattended. Approximately
53 percent of the funds go towards paying for the post mortem
physician cost, 33 percent of the expenses go towards the
mortuary service cost, and approximately 14 percent goes
towards travel. For the past several years the program has
been underfunded, and the department has had to request
supplemental funding up to an amount of $350,000 to pick up
these services when the funding was short and the demand was
high.
Dr. Nakamura said that by establishing a medical examiner
system in the state, the department hopes to contain their
costs in the future. The medical examiner will be able to
perform from 125 to 150 autopsies by himself, however, they
will continue to buy additional autopsy services from the
existing pathologists in the state.
Dr. Nakamura also said the department believes it can
eliminate a fair number of examinations that they are now
doing by having someone who is employed by the state
overseeing the program. Currently, the Department of Health
and Social Services just pays the bills and has no ability
to control the costs, and it is hoped to have the medical
examiner system located in their department.
Number 075
CHAIRMAN RIEGER stated SB 145 would be held until later in the
meeting when a quorum was established.
Number 078
CHAIRMAN RIEGER introduced SB 180 (SCHOOL CONSTRUCTION DEBT
REIMBURSEMENT), SB 181 (SCHOOL CONSTRUCTION GRANTS) and SJR
30 (SCHOOL CONSTRUCTION & MAINTENANCE FUND) as the next order
of business.
BOB POE, staff to Senator Drue Pearce, Co-chair of the Senate
Finance Committee, said the three pieces of legislation
comprise a complete package of an approach to deal with the
problems of school construction, school repair and school
maintenance in the state.
SB 180 reestablishes reimbursement of school construction debt
and provides for an effective date. It accomplishes some key
things in terms of reimbursement of debt that have not been
seen in the past. It changes the portion that the state would
pay of any debt to 70 percent. Also, it establishes a debt
limit for how much debt a community could incur. Further, it
places a sunset on the bill of March 31, 1997.
SB 181 relates to grants for school construction, and there
are some key changes to the way school construction projects
are identified right now. It sets a grant review committee,
and the committee is designed to make sure that people
knowledgeable about construction and facility management are
involved in reviewing school construction projects to assure
that they are a cost-effective reasonable solution to the
problem that the school project is trying to address. It also
advises the committee that they shall evaluate each grant
request based on five factors. The bill further provides that
there shall be four basic types of school designs to assure
that the school infrastructure that is built through state
dollars around the state is uniform in its quality, that it
guarantees an equivalent kind of facility for any student in
the state.
Number 198
SENATOR LEMAN directed attention to a letter he received from
an Anchorage engineer suggesting an amendment to Section 4,
which relates to the four basic school designs, that he
believes goes directly to the point of the intent of the
legislation, but is less onerous than the existing wording.
Number 212
CHAIRMAN RIEGER referred to page 3, line 2 of SB 181, which
speaks to the factors that the grant review committee must
evaluate. He said the last time a list like that was put in
statute it was interpreted to mean that all of number one
would have to be satisfied before they commenced with number
two. He said he does not think that was the sponsor's intent,
and suggested that it should be reworded. BOB POE agreed that
was not the sponsor's intent.
Number 230
DUANE GUILEY, Department of Education, stated that the
department has reviewed the two bills and has worked together
with the Department of Transportation & Public Facilities in
developing the fiscal note and analyzing the legislation. The
department has some concerns about the bills in that some
specific portions are not clear to them as to what the intent
is.
Mr. Guiley said in establishing the cap in SB 180 on how much
debt a community can incur, the department reads the cap as
to apply to other nonreimbursed debt. He referred to language
on page 4, line 5, which sets the limit based upon population
size, and he pointed out that some of the smallest communities
in the state are, in fact, the wealthiest communities in the
state in relation to ability to pay, and they have the lowest
limit of debt in this language.
In Section 3 of SB 180, which requires the department to
evaluate the projects, the department has some concern as to
whether or not that evaluation would be concurrent with the
existing process evaluation, or if this would establish a
separate evaluation.
Turning to SB 181 and the establishing of a grant review
committee, Mr. Guiley said the department has concern as to
whether or not they can find members of this background in the
state that do not, in fact, have a conflict of interest in
that they are not participating contractors for school
districts that would be scheduled to be applying for projects,
as well as whether or not the individuals would serve on the
committee at no compensation. Addressing the prototypical
type of school design required in the legislation, the
department looked at grant projects that have been recently
awarded by the state and the architectural fees associated
with those projects, as well as the need for schools of
varying sizes at all three levels, and they arrived at a
fiscal note in excess of $30 million.
Number 267
CHAIRMAN RIEGER questioned the architectural fees if what is
being called for in the bill is generic projects rather than
custom projects. DUANE GUILEY answered that it is the
department's understanding that these would be more or less
generic projects within the different regions of the state,
but also, within those different regions, there would be
facilities of varying sizes. SENATOR LEMAN commented that
there are some things that can't be done generically and they
have to be unique for where that building is located. He said
there is going to be a certain amount of design that is going
to have to be custom for any specific site.
Number 297
CHAIRMAN RIEGER brought SB 59 (SCHOOL CONSTRUCTION &
MAINTENANCE GRANTS) and SB 60 (APPROP:SCHOOL CONSTRUCTION
GRANT FUND) before the committee. He directed attention to
a draft CSSB 59(HES) which makes two major changes. The first
change limits the maximum matching grant that could be
required for a district to 30 percent. For REAA's the maximum
match is 3.8 percent. The second change is that it suspends
these grant provisions for appropriations made in calendar
year 1993.
Addressing SB 60, CHAIRMAN RIEGER said the bill, as introduced
by the Governor, had $150 million appropriated from the
earnings reserve account. He said it was his intention to
create a work draft which does not appropriate that amount
from the earnings reserve account, but appropriates it from
the general fund and leaves the source of funding question up
to the Senate Finance Committee. Also, allocate that $150
million to each area of the state at the rate of $7.5 million
per Senate district, totaling $150 million.
SENATOR ELLIS asked if there had been any discussions with the
Governor on these suggested changes, and he raised concern of
a possible veto by the Governor whereby school projects would
go by the wayside. CHAIRMAN RIEGER responded that he wants
to have all of the possible modes of getting school
construction funded up to the Finance Committee as soon as
possible so they can make the final decision. As he perceives
it, there are two basic approaches: one is a debt
reimbursement and the other is a straight grant approach. He
doesn't think it is really within the purview of the HESS
Committee to decide which way to finance the schools, but
rather a Finance Committee decision.
Number 404
DUANE GUILEY, Department of Education, said in discussing the
capital legislation with the commissioner, the state board and
representatives from the Governor's office, one of the primary
goals of all parties concerned was establishing a local match
for projects, so it is something that is important to all
parties concerned in relation to this bill. Also, the
Governor's office has expressed a desire to have a multi-
year plan.
CHAIRMAN RIEGER stated SB 59 and SB 60 would be held over
until the following day at which time they would be back
before the committee along with SB 180, SB 181 and SJR 30.
Number 425
CHAIRMAN RIEGER brought SB 145 back before the committee and
asked for the pleasure of the committee.
SENATOR MILLER moved that SB 145, along with the accompanying
fiscal notes, be passed out of committee with individual
recommendations. Hearing no objection, it was so ordered.
SENATOR LEMAN commented that he wasn't convinced that this
approach would save any costs and that it will probably add
another two people to the state payroll when the existing
contracting system in place right now works fairly well.
There being no further business to come before the committee,
the meeting was adjourned at 2:57 p.m.
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