02/15/2005 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB64 | |
| HB47 | |
| SB93 | |
| SB52 | |
| SB100 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 100 | TELECONFERENCED | |
| + | HB 64 | TELECONFERENCED | |
| + | HB 47 | TELECONFERENCED | |
| *+ | SB 93 | TELECONFERENCED | |
| = | SB 52 | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 15, 2005
1:37 p.m.
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Johnny Ellis
MEMBERS ABSENT
Senator Ben Stevens
Senator Bettye Davis
COMMITTEE CALENDAR
HOUSE BILL NO. 64
"An Act extending the termination date for the Board of Public
Accountancy; and providing for an effective date."
MOVED HB 64 OUT OF COMMITTEE
SENATE BILL NO. 52
"An Act relating to the reorganization of certain functions of
the division of banking, securities, and corporations and the
division of occupational licensing in the Department of
Commerce, Community, and Economic Development; and providing for
an effective date."
MOVED CSSB 52(L&C) OUT OF COMMITTEE
SENATE BILL NO. 100
"An Act relating to enhanced 911 surcharges imposed by a
municipality."
HEARD AND HELD
CS FOR HOUSE BILL NO. 47(FIN)
"An Act extending the termination date of the Board of Certified
Real Estate Appraisers; and relating to the requirements for
membership on the Board of Certified Real Estate Appraisers."
MOVED CSHB 47(FIN) OUT OF COMMITTEE
SENATE BILL NO. 93
"An Act relating to commercial fishing permit and vessel license
fees; and providing for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 64
SHORT TITLE: EXTEND BOARD OF PUBLIC ACCOUNTANCY
SPONSOR(s): REPRESENTATIVE(s) HAWKER
01/12/05 (H) READ THE FIRST TIME - REFERRALS
01/12/05 (H) L&C, FIN
01/21/05 (H) L&C AT 3:15 PM CAPITOL 17
01/21/05 (H) Moved Out of Committee
01/21/05 (H) MINUTE(L&C)
01/24/05 (H) L&C RPT 5DP
01/24/05 (H) DP: LYNN, KOTT, LEDOUX, GUTTENBERG,
ANDERSON
02/01/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/01/05 (H) Moved Out of Committee
02/01/05 (H) MINUTE(FIN)
02/02/05 (H) FIN RPT 6DP 2NR
02/02/05 (H) DP: HAWKER, WEYHRAUCH, KELLY, FOSTER,
STOLTZE, MEYER;
02/02/05 (H) NR: MOSES, CHENAULT
02/02/05 (H) TRANSMITTED TO (S)
02/02/05 (H) VERSION: HB 64
02/04/05 (S) READ THE FIRST TIME - REFERRALS
02/04/05 (S) L&C, FIN
02/15/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 52
SHORT TITLE: OCCUPATIONS/CORPORATIONS/BANKS/SECURITIES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/12/05 (S) READ THE FIRST TIME - REFERRALS
01/12/05 (S) L&C
02/01/05 (S) L&C AT 1:30 PM BELTZ 211
02/01/05 (S) -- Meeting Rescheduled to 02/08/05 --
02/08/05 (S) L&C AT 1:30 PM BELTZ 211
02/08/05 (S) Moved CSSB 52(L&C) Out of Committee
02/08/05 (S) MINUTE(L&C)
02/15/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 100
SHORT TITLE: ENHANCED 911 SURCHARGES
SPONSOR(s): SENATOR(s) BUNDE
02/10/05 (S) READ THE FIRST TIME - REFERRALS
02/10/05 (S) L&C, CRA
02/15/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 47
SHORT TITLE: EXTEND BOARD OF REAL ESTATE APPRAISERS
SPONSOR(s): REPRESENTATIVE(s) SAMUELS
01/10/05 (H) PREFILE RELEASED 12/30/04
01/10/05 (H) READ THE FIRST TIME - REFERRALS
01/10/05 (H) L&C, FIN
01/21/05 (H) L&C AT 3:15 PM CAPITOL 17
01/21/05 (H) Moved Out of Committee
01/21/05 (H) MINUTE(L&C)
01/24/05 (H) L&C RPT 4DP 1NR
01/24/05 (H) DP: LYNN, KOTT, LEDOUX, ANDERSON;
01/24/05 (H) NR: GUTTENBERG
02/01/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/01/05 (H) Moved CSHB 47(FIN) Out of Committee
02/01/05 (H) MINUTE(FIN)
02/02/05 (H) FIN RPT CS(FIN) NT 5DP 3NR
02/02/05 (H) DP: HAWKER, KELLY, FOSTER, STOLTZE,
MEYER;
02/02/05 (H) NR: MOSES, CROFT, CHENAULT
02/02/05 (H) TRANSMITTED TO (S)
02/02/05 (H) VERSION: CSHB 47(FIN)
02/04/05 (S) READ THE FIRST TIME - REFERRALS
02/04/05 (S) L&C, FIN
02/15/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 93
SHORT TITLE: FISHING PERMIT AND VESSEL LICENSE FEES
SPONSOR(s): SENATOR(s) STEVENS B
02/04/05 (S) READ THE FIRST TIME - REFERRALS
02/04/05 (S) L&C, FIN
02/15/05 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
Representative Hawker
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SB 64.
Ms. Pat Davidson, Auditor
Division of Legislative Audit
PO Box 113300
Juneau AK 99811
POSITION STATEMENT: Commented on HB 64 and HB 47.
Ms. Lanaya Snyder
Staff to Representative Samuels
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 47 for the sponsor.
Frank Hohman, Commissioner
Commercial Fisheries Entry Commission (CFEC)
Department of Fish & Game
PO Box 25526
Juneau, AK 99802-5226
POSITION STATEMENT: Supported SB 93.
Mr. Al Burch
Alaska Draggers Association
Kodiak AK
POSITION STATEMENT: Supported SB 93.
Ms. Lauren Wickersham
Staff to Senator Bunde
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 100.
Craig Goodrich, Deputy Chief
Anchorage Police Department
Anchorage AK
POSITION STATEMENT: Supported SB 100.
Chief Walt Monegan
Anchorage Police Department
Anchorage AK
POSITION STATEMENT: Supported SB 100.
Ms. Erin Kalwara
Public Safety Assistance Coordinator
Juneau Police Department
Juneau AK
POSITION STATEMENT: Supported SB 100.
Mr. Tim Rogers
Alaska Municipal League (AMA)
POSITION STATEMENT: Supported SB 100.
Mr. David Tyler, President
Alaska Fire Chiefs Association
Fairbanks AK
POSITION STATEMENT: Supported SB 100.
Mr. Paul Harris, Director
Fairbanks Police Department
Fairbanks AK
POSITION STATEMENT: Supported SB 100.
Mr. Chuck Kopp, Chief of Police
Kenai Peninsula Borough
144 North Binkley Street
Soldotna, AK 99669
POSITION STATEMENT: Supported SB 100.
Mr. Jim Rowe, Executive Director
Alaska Telephone Association
Anchorage AK
POSITION STATEMENT: Supported SB 100.
Ms. Linda Freed, Manager
City of Kodiak AK
POSITION STATEMENT: Supported SB 100.
ACTION NARRATIVE
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:37:32 PM. Senator Ellis and
Chair Bunde were present. He said that Senator Seekins would
arrive shortly. Senators Ben Stevens and Davis were excused.
HB 64-EXTEND BOARD OF PUBLIC ACCOUNTANCY
CHAIR BUNDE announced HB 64 to be up for consideration.
REPRESENTATIVE HAWKER, sponsor of HB 64, said this is a
housekeeping bill and extends the board to June 30, 2009 in
accordance with the Auditor's recommendations.
1:38:54 PM
The audit identified one issue for attention. The process of
complying with changing national standards for testing resulted
in only one place for testing public accountants in the state.
The board is proactively dealing with that situation and has
established a testing facility in Fairbanks and is getting one
in Juneau.
1:39:27 PM
CHAIR BUNDE noted the delay in addressing complaints and if
there was a solution other than hiring more people.
REPRESENTATIVE HAWKER said that Steve Tarola, Chairman of the
Board of Accountancy, said there may be some remediation, but no
complaints had been referred to the ombudsman.
1:40:39 PM
MS. PAT DAVIDSON, Division of Legislative Audit, said she is
required to be a CPA and as such is not independent with respect
to this board. She is required by statute to perform the audit
and recommended a four-year extension and identified a problem
in going to the national computerized exam, which went from
being available twice a year to four times per year - but it
went from being in Juneau, Anchorage and Fairbanks down to being
in just Anchorage. However, the Board is working on establishing
additional testing sites.
1:41:48 PM
MS. DAVIDSON said there were problems in terms of getting
investigations done and taking action. Recommendations were made
to the department, which they have agreed with. Subsequent
reviews will look at how well recommendations are being
implemented.
CHAIR BUNDE held the bill until a quorum was present.
1:42:54 PM Recess 1:44:01 PM
CSHB 47(FIN)-EXTEND BOARD OF REAL ESTATE APPRAISERS
CHAIR CON BUNDE announced CSHB 47(FIN) to be up for
consideration.
MS. LANAYA SNYDER, staff to Representative Samuels, sponsor of
HB 47, explained this bill is also the result of a legislative
audit that recommends extending the Board of Certified Real
Estate Appraisers. She said the bill was amended to make
language more consistent throughout the statute by changing
"licensed" to "certified".
MS. PAT DAVIDSON, Division of Legislative Audit, said the use of
certified real estate appraisers will be a continuing
requirement for Alaska's financial institutions to qualify for
federal deposit insurance and to participate in selling mortgage
loans to federal government sponsored enterprises, such as
Fannie Mae and Freddie Mac. Her division recommends extending
the termination date of the board and had no further
recommendations for operational improvements.
CHAIR BUNDE noted that the board is breaking even. It doesn't
need to raise its fees and it is not costing the state money. He
set the bill aside for a quorum.
1:47:05 PM
SB 93-FISHING PERMIT AND VESSEL LICENSE FEES
CHAIR CON BUNDE announced SB 93 to be up for consideration.
CHERYL SUTTON, staff to Senator Ben Stevens, sponsor of SB 93,
explained that the Commercial Fisheries Entry Commission (CFEC)
receives no general funds, has been on a downward trend in
revenue and will continue like that under the current fee
structure. Some of the contributing factors are the Carlson v.
Alaska case, the decline in value of certain fisheries and the
consolidation of various fisheries.
SB 93 would bring the state into compliance with rulings in
Carlson v. State of Alaska, a class action brought against the
state by non-resident fishermen who claimed that the fee
structure was not lawful. The state had charged a 3 to 1 fee
differential for non-residents. The court agreed that the fees
could not be established in this manner and issued a mandated
formula that is now calculated by the Office of Management and
Budget (OMB).
CHAIR BUNDE asked for her indulgence to step aside for a moment.
SENATOR SEEKINS arrived at 1:49:57 PM.
HB 47-EXTEND BOARD OF REAL ESTATE APPRAISERS
CHAIR CON BUNDE announced HB 47 to be back up for consideration.
SENATOR RALPH SEEKINS moved HB 47 from committee with individual
recommendations and attached fiscal note. There were no
objections and it was so ordered.
HB 64-EXTEND BOARD OF PUBLIC ACCOUNTANCY
SENATOR SEEKINS moved HB 64 from committee with individual
recommendations and attached fiscal note. There were no
objections and it was so ordered.
1:50:02 PM
SB 52-OCCUPATIONS/CORPORATIONS/BANKS/SECURITIES
CHAIR CON BUNDE announced SB 52 to be up for consideration.
SENATOR RALPH SEEKINS moved to rescind the committee's previous
action in the meeting on 2/8/05 in adopting Amendment 1 to the
\F version CSSB 52(L&C). There were no objections and it was so
ordered.
SENATOR SEEKINS moved to adopt CSSB 52(L&C), version \F. There
were no objections and it was so ordered.
SENATOR SEEKINS moved to pass CSSB 52(L&C) from committee with
individual recommendations and attached fiscal note. There were
no objections and it was so ordered.
SB 93-FISHING PERMIT AND VESSEL LICENSE FEES
MS. SUTTON resumed her testimony on SB 93. The major component
of SB 93 is removal of the $300 cap for annual permit renewal
currently in statute. It is an artificial cap because the
statute states that the base fee must reasonably reflect the
different rates of economic return for different fisheries. The
cap results in fisheries with a very high economic return being
charged fees that are disproportionately low. She explained that
the CFEC would develop fees through a public hearing process.
Individuals who qualify for a poverty fee would still be
required to pay the full non-resident fee differential.
1:54:28 PM
She said that vessel license fees are also addressed in this
bill. A modest modification is proposed to the six vessel length
categories and the fees are raised by $15, $30, $45, $60, $75
and $90 respectively. She pointed out that the fee structure had
not been amended since 1995.
1:55:04 PM
MR. FRANK HOHMAN, Commissioner, CFEC, agreed with Ms. Sutton's
testimony. The Carlson case is a factor in CFEC's decline in
revenues and lower values of fishery permits along with
consolidation of fishing fleets in federal and state waters
lowering the values of fishery permits upon which the fees are
based. There is a reduction in the number of permits that are
purchased and the non-transferable permits, which are held until
the permit holder dies are retired. He estimated that in FY'06
the commission would not be able to cover its budget by
generating revenues alone. The new fee structure will help for a
few more years.
1:57:15 PM
The $300 cap for lesser value fisheries might have only a modest
increase, but higher value fisheries will fall into position on
the fee schedule. The formula is calculated as .04% of the value
of the permit, which won't be held down artificially.
1:58:12 PM
CHAIR BUNDE asked if the non-resident who qualified for the
poverty fee would still pay the non-resident differential, $115
this year.
1:58:51 PM
MR. HOHMAN replied that is correct, but it applies to only 20 or
so people. A resident also can claim a poverty fee, which is
half of the base fee, but his taxes have already paid for the
differential.
2:00:04 PM
CHAIR BUNDE mused that it seemed a contradiction of terms to
have a non-resident come to Alaska to fish, but then claim
poverty.
2:00:45 PM
MR. AL BURCH, Alaska Draggers Association, Kodiak, supported SB
93. His problem was with the proposed methodology for
implementing it. He represents 45 trawlers in the Gulf that also
do halibut long lining. As trawlers, their fees would go from
$300 to $3,975. As long liners, they would go from $300 up to
$1,500. His little trawlers that might gross $200,000 per year
are being lumped in with the super trawlers in the Bering Sea
that might do over $30 million per year. The fee structure is
not equitable as it is now; however he is not adverse to a
reasonable fee increase.
CHAIR BUNDE said he would hold the bill over for Senator Ben
Stevens' insights.
2:03:41 PM
MR. HOHMAN commented on the issue of small boats that get caught
up with large boats. If the bill passed with the fee cap
removed, CFEC regulation would establish fee classes through a
public hearing process. If classes were not proper for small
boats, he would be happy to make an amendment. It was never an
issue with a $300 cap, which is small enough to not matter.
CHAIR BUNDE said the bill would be held.
SB 100-ENHANCED 911 SURCHARGES
CHAIR BUNDE announced SB 100 to be up for consideration. He
asked if anyone objected to adopting CSSB 100(L&C), version Cook
2/11/05\Y. There were no objections.
CHAIR BUNDE explained that there have been instances in
Anchorage where life threatening and emergency situations could
have been addressed in a timely fashion with a 911 call. The
problem is increasing and local municipalities are required to
provide this service, but at this point don't have an option to
pay for it. SB 100 increases their ability to pay for the
service by charging $2. It could be surmounted by a vote of the
people in the effected area.
2:07:40 PM
MS. LAUREN WICKERSHAM, staff to Senator Bunde, explained where
the changes appear in the bill. The billing should be the same
for wireless and wire line companies.
2:10:14 PM
MR. GRAIG GOODRICH, Deputy Chief, Anchorage Police Department,
supported passing SB 100 this year. He related that 50% of
today's calls come through cell phones, but people are not often
cognizant of their surroundings when placing an emergency call.
When it's on a land line, the police can track it, but that is
not the case with cell phones. The bill talks about all the
surcharges going to the call-taking center and he suggested
language saying that at least a portion of those funds go to the
dispatch centers. In Anchorage the dispatch center is separate
from a law enforcement or call-taking center. That is also the
case in the Kenai Peninsula and other areas around the state, as
well.
2:13:23 PM
CHIEF WALT MONEGAN, Anchorage Police Department, supported SB
100 because it provides the flexibility for local government to
justify realistic surcharge rates to maintain and operate 911
centers. Anchorage currently has a 50-cent surcharge. However,
out of that 50-cents, 21-cents pays for addressing line fees for
every one of the customers they serve for 911, about 316,000
lines. The department needs more money to actually provide a
service. He said it receives about 250,000 calls per year and
58% of them are 911 calls. About half of those are coming from
cells phones and the department does not have the ability to
know the location on those. This amounts to about $800,000 a
year for data base management; add on about $260,000 per year
for infrastructure costs and the department has $3 million more
a year for additional operating costs. That all adds up to about
$4 million in enhanced operations and maintenance costs. The 50
cents generates about $2 million. The rest of the cost is borne
by taxpayers.
2:17:47 PM
CHAIR BUNDE asked if raising the cap to $2 will allow enough
flexibility to address the costs of enhanced 911 for a couple of
years.
CHIEF MONEGAN replied that is correct. He anticipated raising it
by $1 at first.
2:19:19 PM
MS. ERIN KALWARA, Public Safety Assistance Coordinator, Juneau
Police Department, said she administers the 911 program and
supports the changes. She doubted that $2 would hold the
department for more than five years. She had no idea what
technologies will develop in the future and thought a $3 fee
would be needed.
2:21:12 PM
MR. TIM ROGERS, Alaska Municipal League, supported SB 100. The
enhanced system would allow the call takers to see the address
of the originating caller. Passage of the increase in the
surcharge is needed to help the continual upgrade of the 911
system and help in the development of address databases to avoid
untimely response delays. Also, several of the funds for
upgrading 911 systems have disappeared in the last couple of
years.
MR. ROGERS suggested a couple of amendments. Existing statutes
have a differential rate for cities with a population under
100,000 and maintaining the differential will allow smaller
communities to charge in excess of $2. He also would prefer that
the election provision on page 2, lines 8-9, be eliminated for
two reasons.
One, if the authorized surcharge change is proposed,
municipalities don't anticipate the additional
authority needs in the foreseeable future and
secondly, and probably more important, is it would set
the possible precedent for elections on user fee
increases. That is of concern to us. It may also be a
poor precedent for a future state fee increase, as
well, and we think it's best to avoid that if at all
possible.
2:25:18 PM
MR. DAVID TYLER, supported SB 100. But the $2 limit would impact
Fairbanks, because it won't last long. Their local public
process allows them to govern themselves when setting fees. He
also has concerns with the time constraints and costs associated
with the voting requirements.
2:26:59 PM
MR. PAUL HARRIS, Director, Fairbanks Police Department,
supported SB 100, but he wanted other issues to be addressed. He
gave the committee an example of how cell phones enhance the 911
system. He also noted that the $2 would barely cover the
technology and maintenance since a good amount of the money goes
back to the telephone companies to pay for trunk lines. Often
people don't change their addresses when they change their phone
numbers and the master street address database needs to be
updated. On the receiving end of the call, someone who can deal
with an emergency experience must be trained to respond
properly. He supported a $3 cap as being more realistic.
2:31:07 PM
MR. CHUCK KOPP, Kenai Chief of Police, said he also represented
the Alaska Chapter of the National Emergency Numbers
Association. He saw this bill as an ongoing solution to a
growing problem. Public expectation is rising for emergency
services such as reduced response time. He thought the $2 cap
would give all municipalities more flexibility than they have
now. Technology is moving faster than the state department can
respond.
2:34:14 PM
CHAIR BUNDE asked if he thought the 100,000 population
differential would impact Kenai.
MR. KOPP replied that there are 50,000 people in the Kenai
Borough and it definitely would impact it.
2:35:14 PM
MR. JIM ROWE, Executive Director, Alaska Telephone Association
(ATA), supported a non-voter-approved cap of $2 - recognizing
the individual municipalities could exceed that cap through an
election. He was concerned that the surcharge would raise the
local phone bills that already have a number of surcharges. SB
100, however, is concise and addresses many needs. It's
important to ATA that there is parity between wireless and hard-
wired surcharges.
2:38:04 PM
MS. LINDA FREED, Manager, City of Kodiak, supported SB 100. Her
dispatch system is budgeted this year at about $600,000 and
about $50,000 will come in from the enhanced 911 surcharge.
Right now the gap is being made up from their general fund. She
supported the increased cap, but also strongly believed in local
control and local option and encouraged the committee to
consider that a little more strongly in the bill. Kodiak has a
strong public process and would like to see an expansion of the
use of the funds - lines 18 and 19. That has been interpreted to
mean just the 911 portion of their dispatch. Emergency 911 calls
are crisis calls that come into the center, but without
responders to send out, there is very little use for the
technology. She would like to use the funds to help pay for the
additional dispatch costs. For example, Kodiak operates a
regional dispatch service for the entire road system and
provides services for many agencies. This would give the city
the ability to raise the charge and provide funds that would
operate the entire dispatch system, which is not only city, fire
and police, but public works crews, the Coast Guard and State
Troopers. Right now the surcharge brings in less than 10% of its
annual operating cost, not including capital equipment,
replacement costs for E911 and the dispatch center.
2:41:57 PM
CHAIR BUNDE thanked her for her compromise and said he would
hold the bill for further work. He adjourned the meeting at
2:42:41 PM.
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