Legislature(1995 - 1996)
02/12/1996 08:04 AM Senate RLS
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* first hearing in first committee of referral
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+ teleconferenced
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SENATE RULES COMMITTEE
February 12, 1996
8:04 a.m.
MEMBERS PRESENT
Senator Mike Miller, Chair
Senator Drue Pearce, Vice Chair
Senator Bert Sharp
Senator Jim Duncan
Senator Judy Salo
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE CONCURRENT RESOLUTION NO. 23(STA)
Relating to long range financial planning.
SENATE BILL NO. 69
"An Act relating to hazardous chemicals, hazardous materials, and
hazardous waste."
SENATE BILL NO. 178
"An Act relating to small employer health insurance."
SENATE BILL NO. 240
"An Act relating to the statewide bonding pool for the reclamation
activities imposed on mining operations, and extending the pool's
use to surface coal mining projects."
CS FOR HOUSE BILL NO. 292(JUD)
"An Act relating to searches by peace officers who enforce fish and
game laws, to false statements and omissions in regard to
application for fish and game licenses, tags, and permits, and to
nonresident hunters."
PREVIOUS SENATE COMMITTEE ACTION
SCR 23 - See State Affairs minutes dated 2/8/96.
Judiciary & Finance referrals waived 2/7/96.
SB 69 - See Resources minutes dated 2/22/95 and 3/27/95.
Finance report 2/7/96.
SB 178 - See Labor and Commerce minutes dated 1/9/96.
Finance report 2/9/96.
SB 240 - See Resources minutes dated 2/5/96.
HB 292 - See Judiciary minutes dated 5/10/95 and 5/11/95.
Rules minutes dated 5/13/95.
WITNESS REGISTER
Ann Marie Holen
Alaska Native Health Board
11241 Latta Circle
Anchorage, AK 99516
POSITION STATEMENT: Testified in support of tobacco tax
legislation
Glen Ray
Division of Public Health
Department of Health & Social Services
P.O. Box 110610
Juneau, AK 99811-0610
POSITION STATEMENT: Testified in support of tobacco tax
legislation
Kathy Webb
Fairbanks Education Association
1244 Viewpointe
Fairbanks, AK 99709
POSITION STATEMENT: Has concerns with CSSCR 23(STA)
Rob Pfisterer
123210 Spendlove Drive
Anchorage, AK 99508
POSITION STATEMENT: Opposes CSSCR 23(STA)
Karla Feeley
1840 S. Bragaw
Anchorage, AK 99508
POSITION STATEMENT: Has concerns with CSSCR 23(STA)
Jim Simeroth, President
Kenai Peninsula Education Association
811 Auk St., No. 5
Kenai, AK 99611
POSITION STATEMENT: Opposes CSSCR 23(STA)
Jean Krause
2050 Finger Cove Drive
Palmer, AK 99645
POSITION STATEMENT: Opposes CSSCR 23(STA)
Steven Wright
Kenai Peninsula Education Support Association
P.O. Box 44645
Soldotna, AK 99669
POSITION STATEMENT: Opposes CSSCR 23(STA)
Jeannie Monk
Juneau Tobacco Prevention Network
638 Seward St.
Juneau, AK 99801
POSITION STATEMENT: Suggested changes be made to CSSCR 23(STA)
Vernon Marshall, Executive Director
NEA-Alaska
114 2nd St.
Juneau, AK 99801
POSITION STATEMENT: Testified in opposition to CSSCR 23(STA)
ACTION NARRATIVE
TAPE 96-2, SIDE A
Number 001
CHAIRMAN MILLER called the Senate Rules Committee meeting to order
at 8:04 a.m.
CHAIRMAN MILLER brought CSSCR 23(STA) (LONG RANGE FINANCIAL
PLANNING) before the committee as the first order of business and
announced the meeting was being teleconferenced to the Fairbanks,
Anchorage and Kenai Peninsula LIOs. He then opened the hearing to
public testimony.
Number 017
ANNE MARIE HOLEN , representing the Alaska Native Health Board, as
well as Citizens To Protect Kids From Tobacco, a group formed to
specifically campaign for a major increase in state tobacco tax
rates as a way to reduce the leading cause of death in Alaska,
testified in support of tobacco tax legislation.
Ms. Holen quoted statistics from a statewide survey conducted to
assess public support in Alaska for a dollar-per-pack increase in
the state cigarette tax, and she noted Alaska has one of the
highest rates of smoking and smoking-related deaths in the country;
however, the cigarette tax is below the national average and has
not begun to keep pace with inflation over the years. The result
is a drain on the Alaska economy amounting to $300 million a year,
according to most recent figures.
Ms. Holen requested as representatives of the people of the state,
the Legislature makes sure the tobacco tax legislation has a full
and fair hearing this legislative session and to not let it get
sidelined because of resolutions such as CSSCR 23(STA).
SENATOR SHARP related the State Affairs Committee, which he chairs,
has two tobacco tax bills and an alcohol tax bill in committee. A
hearing on those pieces of legislation will be scheduled within the
next two to three weeks.
Number 098
GLEN RAY , Division of Public Health, Department of Health & Social
Services, requested the tobacco tax be considered as a method to
reduce tobacco use among children in the state. The Director of
Public Health has said given the data on the high prevalence of
rates of tobacco use in Alaska, it would be negligent for health
professionals to do anything else but to become involved in trying
to eliminate tobacco use from the most vulnerable of our
population. He also quoted statistics on deaths in the state
attributed to smoking diseases, as well as statistics on tobacco
use among young children, especially in the rural areas of the
state.
Concluding his comments, Mr. Ray pointed out that the Department of
Health & Social Services, the Division of Public Health,
anticipates increasing the excise tax can be implemented at no
additional cost to the state, that the reduction of tobacco by
children will be significant, and long range health care costs will
be reduced due to a decrease in smoking-related diseases in future
years.
SENATOR SHARP expressed his appreciation for the testimony and said
he didn't want to dissuade people from talking about the tobacco
tax, but the purpose of this hearing was not on those specific
bills. He added that he hoped the testimony would be presented at
the hearings on the tobacco bills when they come before the State
Affairs Committee.
SENATOR DUNCAN commented he thought the testimony was very
appropriate for the resolution because the original resolution did
speak about a plan to close the fiscal gap, and although it is not
in the committee substitute, it should be at least a consideration
of revenue raising measures.
Number 200
KATHY WEBB , representing the Fairbanks Education Association,
stated she is pleased that the Legislature is working towards
implementing a long range financial plan, but she is distressed
that there has not been adequate hearings on CSSCR 23(STA). She
voiced her opposition to language in the resolution which calls for
institution of a Tier 3 state pension, wage, and benefit package
without consulting or working with the people involved.
CHAIRMAN MILLER pointed out the State Affairs Committee did hold a
hearing on the resolution on February 8, at the request of Senator
Duncan. Also, there was no objection by any member when the
Judiciary Committee and Finance Committee referrals were waived on
the Senate floor.
SENATOR SALO noted that Minority members did try to get a Finance
referral added back on once they realized the resolution was rushed
through the State Affairs Committee, however, that motion failed to
pass on the Senate floor.
Number 235
ROB PFISTERER , representing the Anchorage Education Association,
expressed his concern that the resolution was given little time for
discussion and input by the public. Outlining his concerns, he
said the resolution speaks to reducing the size and scope of state
government to decrease the gap, but the Legislature should
determine if the needs of the citizens have decreased. It also
speaks to significantly reducing entitlement reform, but it does
not address the fact that the funding formula for schools has only
gone up one percent since 1988; this at a time when inflation has
risen 24 to 27 percent. Further, he said there is nothing in the
resolution that addresses revenue enhancement, and for a state that
has no income tax, no sales tax, and gives each man, woman and
child a dividend, to not address revenue is ridiculous. He
believes the resolution is short sighted, as well as a hasty and
wasted effort.
Number 280
KARLA FEELEY of Anchorage agrees that there is a need for a long
range plan, but she said the State Affairs CS focuses on reductions
only. She believes revenue increases are going to be necessary in
order to close the fiscal gap. She pointed out that education has
lost almost 25 percent against inflation since 1987, and suggested
funding education and other public services to the level necessary
to do the job.
Number 299
JIM SIMEROTH , President, Kenai Peninsula Education Association,
voiced his opposition to CSSCR 32(STA) because it is not in the
best interest of Alaskans, especially the children. He believes
the resolution would worsen the economic situation rather than
improve it. He questioned the wisdom of locking up $1.1 billion in
the permanent fund when school children in the state are already
suffering from a lack of appropriate funding for school programs.
He said the only sure way to provide for the future is to invest in
education now.
Number 337
JEAN KRAUSE , a retired teacher from Palmer, agreed with the
comments made by Mr. Pfisterer and Mr. Simeroth, and she urged the
committee take the time to redraft the resolution to address the
concerns articulated out of Juneau and Anchorage.
Number 344
STEVEN WRIGHT , representing the Kenai Peninsula Education Support
Association, stated his disagreement with the resolution is because
it states the only means to close the financial gap, real or
imagined, is to decrease funding for vital social services. He
said if the Legislature pledges to work with all parties to
implement a long range financial plan that meets the needs and
desires of the Alaskan people, then it will make every effort to
increase the funding for the real infrastructure of our society,
which is our children and our public schools.
Number 357
JEANNIE MONK , representing the Juneau Tobacco Prevention Network,
said she agreed that in considering ways to reduce Alaska's budget
deficit, it is important to look at budget cuts, but simply cutting
the budget without raising revenue will not meet the needs of
people in the state. The tobacco tax proposal is an opportunity
that cannot be ignored. Tobacco tax increases result in increased
revenue and decreased consumption. She asserted a tobacco tax will
generate revenue for the state of Alaska, raising over $40 million
annually. She said the resolution will limit the ability to
responsibly solve the budget gap, and she suggested the resolution
be changed and that public hearings be held on each of the
proposals in the long range financial plan.
Number 388
VERNON MARSHALL , Executive Director, NEA-Alaska, stated that CSSCR
23(STA) offers no vision for what Alaska's economy is or will be
for those who make Alaska their home. The resolution focuses its
resolve on reducing the size and scope of government in making
significant spending reductions. NEA-Alaska believes the
resolution is one sided since it proposes reductions in spending
with no commitment to revenue replacement or identification of
other sources of revenue. The resolution doesn't define how the
economy will expand by spending reductions, no plan is offered that
suggests new revenues streams, and the plan offers no support for
any tax measures, etc. He asserted now is the time to address
better ways to ensure a strong, viable Alaska in years to come, and
he pointed out Alaska is the only state where the general
population generally pays little or nothing to support government.
Number 400
CHAIRMAN MILLER announced that there were no further witnesses
wishing to testify on CSSCR 23(STA) and that the committee would
address proposed amendments to the resolution.
SENATOR SALO moved the following amendment to CSSCR 23(STA):
Amendment No. 1
Page 2, lines 26 through 28: Delete all material and insert:
"Further Resolved that the Nineteenth Legislature pledges to work
with all parties to implement new taxes on alcohol and tobacco
products in accordance with the Long Range Fiscal Plan; and be it"
CHAIRMAN MILLER objected to the amendment for the purpose of
discussion. SENATOR SALO explained her intention with the
amendment is the Legislature at least consider this as a revenue
raising measure when working on a long range fiscal plan. SENATOR
SHARP stated his objection, noting the State Affairs Committee has
legislation relating to seven proposed tax increases, which
includes tobacco, and he believes the proper place to address
individual revenue bills is through the hearing process in
committees.
SENATOR DUNCAN offered an amendment to Amendment No. 1 which would
read:
"Further Resolved that the Nineteenth Legislature pledges to with
all parties to consider new revenue sources in accordance with the
Long Range Fiscal Plan; and be it"
SENATOR SHARP objected and then withdrew his objection to the
amendment to the amendment. There being no further objection, the
Chairman stated the amendment to Amendment No. 1 was adopted.
CHAIRMAN MILLER continued his objection to Amendment No. 1, as
amended, and called for a roll call vote. Senators Pearce, Sharp
and Miller voted "Nay" and Senators Duncan and Salo voted "Yea."
The Chairman stated the amendment failed on a 3-2 vote.
Number 475
SENATOR SALO moved the following Amendment No. 2:
Amendment No. 2
Page 2, line 24: After "services" delete "and the institution of
a Tier 3 state pension, wage, and benefit package"
CHAIRMAN MILLER objected. SENATOR SALO explained that there is
separate legislation dealing with this issue and that legislation
could have the focus it deserves without being included in the
resolution. She also believes that it is one of the most negative
pieces of the financial plan.
After brief discussion on the amendment, the Chairman stated there
would be a roll call vote. Senators Pearce, Sharp and Miller voted
"Nay" and Senators Duncan and Salo voted "Yea." The Chairman
stated the amendment failed on a 3-2 vote.
Number 560
SENATOR DUNCAN stated he believes it is important to have a plan to
close the fiscal gap and the original resolution very clearly laid
out components of a plan to close the fiscal gap, however, he
questioned the presence of a plan in the committee substitute.
TAPE 96-2, SIDE B
Number 001
CHAIRMAN MILLER pointed out that later in the morning the Senate
House Majorities would be unveiling plans for a five-year strategy
to close the budget gap.
Number 035
SENATOR SHARP moved and asked unanimous consent that CSSCR 23(STA)
be approved for calendaring. SENATOR DUNCAN objected. The roll
was taken with the following result: Senators Pearce, Sharp and
Miller voted "Yea" and Senators Salo and Duncan voted "Nay." The
Chairman stated the motion passed on a 3-2 vote.
CHAIRMAN MILLER brought SB 69 (REPORTING OF HAZARDOUS SUBSTANCE)
before the committee. Hearing no discussion, he asked for the
pleasure of the committee.
SENATOR PEARCE moved and asked unanimous consent that SB 69 be
approved for calendaring. Hearing no objection, it was so ordered.
CHAIRMAN MILLER brought SB 178 (SMALL EMPLOYER HEALTH INSURANCE)
before the committee. Hearing no discussion, he asked for the
pleasure of the committee.
SENATOR PEARCE moved and asked unanimous consent that SB 178 be
approved for calendaring. Hearing no objection, it was so ordered.
CHAIRMAN MILLER brought SB 240 (MINING BONDING POOL) before the
committee. Hearing no discussion, he asked for the pleasure of the
committee.
SENATOR PEARCE moved and asked unanimous consent that SB 240 be
approved for calendaring. Hearing no objection, it was so ordered.
CHAIRMAN MILLER brought CS HB 292(JUD) (FISH & GAME ENFORCEMENT)
before the committee as the final order of business. However, he
stated the bill would be held for any committee action until the
next meeting in order to resolve a problem with the legislation.
There being no further business to come before the committee, the
meeting was adjourned at 8:58 a.m.
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