Legislature(1993 - 1994)
02/22/1994 02:35 PM Senate L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE
February 22, 1994
2:35 p.m.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator Steve Rieger, Vice-Chairman
Senator Bert Sharp
Senator Georgianna Lincoln
Senator Judy Salo
MEMBERS ABSENT
NONE
COMMITTEE CALENDAR
SENATE BILL NO. 70
"An Act establishing a loan guarantee and interest rate subsidy
program for assistive technology."
SENATE BILL NO. 212
"An Act relating to publications produced by state agencies and to
the procurement of property, property interests, and services by
state agencies."
SCHEDULED BUT NOT HEARD THIS DATE.
SENATE JOINT RESOLUTION NO. 45
Relating to bilateral trade talks with Japan regarding Alaska
seafood products.
SCHEDULED BUT NOT HEARD THIS DATE.
PREVIOUS SENATE COMMITTEE ACTION
SB 70 - See HESS minutes dated 3/22/93. See Labor
& Commerce minutes dated 1/25/94.
SB 215 - See Resources minutes dated 11/19/93, 1/19/94,
2/7/94, and 2/16/94.
SJR 45 - NO PREVIOUS ACTION.
WITNESS REGISTER
Stan Ridgeway, Deputy Director
Division of Vocational Rehabilitation
Department of Education
8800 Glacier Highway, Suite 236
Juneau, Alaska 99801
POSITION STATEMENT: Supports SB 70.
ACTION NARRATIVE
TAPE 94-10, SIDE A
Number 001
CHAIRMAN TIM KELLY called the Labor and Commerce Committee meeting g
to order at 2:35 p.m.
SENATOR KELLY returned SB 70 (ASSISTIVE TECHNOLOGY LOAN GUARANTEES)
sponsored by SENATOR JIM DUNCAN to committee, and asked his aide,
JOSH FINK, to explain the proposed committee substitute.
MR. FINK first explained the committee substitute was written with
the assistance of STAN RIDGEWAY, Deputy Director for the Division
of Vocational Rehabilitation, and SENATOR DUNCAN'S staff.
MR. FINK also stressed, on page 1 of the committee substitute,
LAUTERBACH, 2/18/94, lines 4 through 6, language was added to make
it clear it is the intent of the legislature that this program be
established with the use of federal and private sources, only.
There would be no general fund money used in the future.
MR. FINK directed attention to line 10 of the first page, after the
second sentence of the first subdivision (a), the following was
added: The agency may solicit and accept available federal and
private money for distribution from the fund. The agency may not
solicit money from the state's general fund.
On line 13 of page 1, MR. FINK explained the addition of (d) would d
relate to page 2, lines 21 through line 1 of page 3, which would
establish a loan committee, inserted at the division's request.
Also on page 2, the words employer or prospective employer were
deleted so loans would not be made available to employers, only
individuals. In the original bill on page 2, paragraph (2), which
talked about the term of the loan and maximum loan amounts was
deleted, and MR. FINK said it would be discussed further in the
bill.
On lines 12 and 13 of page 2, MR. FINK also explained in paragraph
(3) were added the words: before a loan guarantee or subsidy is
requested from a lending institution, and on line 15, paragraph (4) )
lending institution had been substituted for agency. He discussed sed
the loan committee as to the membership and responsibilities of the
committee.
MR. FINK explained on page 3, lines 4 through 11, included the
sunset provision of one year after the repeal of the federal grant
program, unless there is a successor program, in which case, sunset
would occur one year after the end of the successor program sunsets
at the federal level.
Number 067
MR. FINK said MR. RIDGEWAY would address some of the other concerns
raised by the committee.
SENATOR KELLY asked if the committee substitute was acceptable to
the sponsor, and MR. FINK replied it was. SENATOR KELLY asked MR.
FINK to review provisions in the new CLINTON budget, and MR. FINK
said would be explained by MR. RIDGEWAY, but he thought it had been
increased for vocational rehabilitation.
MR. FINK advised a new fiscal note had been distributed showing the
$100 thousand a year, over the next three years.
MR. RIDGEWAY quoted the CLINTON Administration as announcing today
they are going to increase the Community Reinvestment Act program,
because banks are not performing as well as they should. He said
this would help the bill because banks would be forced to put more
money back into the community.
MR. RIDGEWAY, in reviewing the federal budget, said that under the
Institute for Disabilities and Rehabilitation Research there is a
separate fund for technology. The funding has jumped from $37.7
million to $44.7 million with an increase in rehabilitation
funding.
Number 107
MR. RIDGEWAY reviewed a thirteen year breakdown of federal funds
from the REAGAN years to the present showing there has been an
increase of between 11% and a minimum of 1% in rehabilitation
funding. He addressed some specific questions from the previous
meeting as to whether the limits of the loan and the amounts should
be in statute v. regulation. He reviewed the three states where
the program is funded strictly from federal funds, and all have
limits established in regulation. The study showed the regulations
were established to make it friendlier to adjustment for market
trends and the size of the loans. He also explained most states
have a cap of $5 thousand on their technology loans.
SENATOR KELLY said he was reminded by staff, on page 2, line 18, in
paragraph (5) that the division had requested the deletion of
purchase or leaving "modify a vehicle ...." MR. RIDGEWAY confirmed ed
that was true, and referred to an example in the previous hearing
about a person buying a boat. He explained the main emphasis on
the technology is to enable a person to adapt various living and
working by allowing them to modify a vehicle, which is the intent
of the program.
SENATOR KELLY asked if he wanted the loans capped legislatively at
$5 thousand, and MR. RIDGEWAY requested it be allowed in regulation
by the committee.
Number 155
SENATOR SALO questioned the fiscal note of $100 thousand for each
of the three years and asking whether the fiscal note would limit
the program in any way with benefactor money or accepting increased
federal funding. Both SENATOR KELLY and SENATOR SHARP agreed there
was a provision to accept additional funds.
SENATOR SALO moved to amend the committee substitute on page 2,
line 18, in paragraph (5) with the deletion of purchase or leaving g
"modify a vehicle ...." Without objections, the amendment was
incorporated into the proposed committee substitute for SB 70.
SENATOR LINCOLN moved to adopt the new committee substitute for SB
70 as amended. Without objections, so ordered.
SENATOR LINCOLN moved to pass CS FOR SENATE BILL NO. 70(L&C)
(ASSISTIVE TECHNOLOGY LOAN GUARANTEES) from committee with
individual recommendations. Without objections, so ordered.
There being no further business to come before the committee, the
meeting was adjourned at 2:45 p.m. by SENATOR KELLY.
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