HOUSE FINANCE COMMITTEE April 5, 1993 8:35 a.m. TAPE HFC 93-93, Side 1, #000 - end. TAPE HFC 93-93, Side 2, #000 - 193. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 8:35 a.m. PRESENT Co-Chair Larson Representative Hoffman Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf Co-Chair MacLean was absent from the meeting. ALSO PRESENT Representative Mackie; Max Gifford, Staff, Senator Kelly; Juanita Hensely, Chief, Driver's Safety, Department of Public Safety; Geron Bruce, Legislative Liaison, Department of Fish and Game; Pat O'Brien, Division of Family of Youth Services, Department of Health and Social Services. SUMMARY INFORMATION HB 3 "An Act relating to public home care providers; and providing for an effective date." HB 3 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Administration, dated 3/10/93 and with a fiscal impact note by the Department of Health and Social Services and with a zero fiscal note by the Department of Health and Social Services. HB 172 "An Act relating to the wildlife conservation tag and to entry onto state game and wildlife sanctuaries, state game refuges, state range areas, and fish and game critical habitat areas; and providing for an effective date." CSHB 172 (FIN) was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Fish and Game, dated 3/5/93. SB 47 "An Act relating to equipment for and registration of custom collector vehicles; and providing for an effective date." SSSB 47 was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Public Safety, dated 1/27/93. HJR 9 Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. HJR 9 was HELD in Committee. HOUSE JOINT RESOLUTION NO. 9 Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. Representative Martin noted that the issue has been around about 10 years. He stressed that most other states require that taxes are approved by two-thirds of the legislative body. He asserted that voters generally allow new taxes for education and highways. He asserted that Alaska is the only state where a simple majority of the legislature can impose a tax on residents. Representative Martin clarified that "ad valorem" taxes are personal taxes in proportion to value. Representative Grussendorf spoke against HJR 9. He stressed the difficulty the legislative body has in making tough decisions regarding the increase of revenues. Representative Martin stated that HJR 9 does not affect local taxes. Representative Grussendorf asserted that revenue decisions by the State affects municipal fiscal policies. Representative Martin MOVED to report HJR 9 out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Grussendorf OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson OPPOSED: Foster, Grussendorf, Hoffman, Navarre Co-Chair MacLean and Representative Brown were absent from the vote. HJR 9 was HELD in Committee. SENATE BILL NO. 47 "An Act relating to equipment for and registration of custom collector vehicles; and providing for an effective date." MAX GIFFORD, STAFF, SENATOR KELLY explained that SSSB 47 provides that pre 1949 vehicles can be driven if they met safety and regulatory requirements. Cars must also be registered as a "custom classic vehicle" with the Department of Public Safety. There is a $50 dollar registration fee. Approximately 200 vehicles would be eligible. Cars without bumpers, fenders and hoods are not allowed on the street under current law. Sponsor Substitute for Senate Bill 47 would allow exceptions for registered custom classic vehicle. Representative Navarre noted that some older vehicles are considered classics. Mr. Gifford obsevered that 1948 was the last year that side boards were built. Representative Navarre suggested the date be changed to 1959. Mr. Gifford stressed that the legislation is based on programs developed in other states. He added that the Department of Public Safety supports the 1948 cut off date. Representative Navarre emphasized that the lack of safety elements; such as bumpers and hoods would place additional safety hazardous on roads. Mr. Gifford noted that classic cars are insured for less than regular vehicles due to their low incident of accidents. Representative Navarre asked if the sponsor considered basing eligibility on the age of the vehicle. For instance, cars over 35 years of age would be included. Mr. Gifford stated that the sponsor did consider this approach. He concluded that the statutes could be amended in the future to allow an age approach. JUANITA HENSLEY, CHIEF, DRIVER'S SAFETY, DEPARTMENT OF PUBLIC SAFETY stated that the Department's position is neutral in regards to SSSB 47. She noted that only 200 vehicles would be affected by SSSB 47. She observed that the average of age of classic car drivers is in the mid forties. She stressed that the average worth of a classic vehicle is $15,000 thousand dollars. Representative Grussendorf noted that he had received correspondence questioning SSSB 47. Ms. Hensley observed that an Anchorage police officer has expressed his concerns. Ms. Hensley pointed out that the Department would reconsider its position on SSSB 47 if the eligibility date is changed to 1959. She stressed that older vehicles containing hoods and bumpers could be modified under if the dated is extended. Representative Foster MOVED to report SSSB 47 out of Committee with individual recommendations and with the accompanying fiscal note. Representative Navarre OBJECTED. Representative Navarre MOVED to Amend SSSB 47 by deleting "1949" and inserting "1959". Representative Hanley OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Navarre, Hoffman OPPOSED: Grussendorf, Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean and Representative Brown were absent from the vote. The MOTION FAILED (2-7). Representative Foster MOVED to report SSSB 47 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SSSB 47 was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Public Safety, dated 1/27/93. HOUSE BILL NO. 3 "An Act relating to public home care providers; and providing for an effective date." REPRESENTATIVE MACKIE noted that HB 3, An Act relating to public home care providers, restricts the ability of a home care provider to assume power of attorney and requires criminal background checks on any individual providing home care services paid for by public funds for an elderly or disabled person. Representative Mackie stressed that HB 3 will provide some protection to elderly and disabled persons from those responsible for their care. He asserted that these groups are particularly vulnerable to abuse because of age, illness, disability and the isolation of being alone in their home with a care giver. Representative Mackie emphasized that it is important to take these steps now, while Alaska is on the brink of an explosion in home care services. He stressed that the state's senior citizen population is rapidly expanding and the state has just received approval for a Medicaid Waiver to provide home and community based services as an alternative to institutionalization. He maintained that once the Medicaid Waiver is effective, and there is a payment system available for expanded home based services, the home care services industry will see rapid growth. The bill also requires background checks on home care providers paid through Older Alaskans Commission grants, and respite care providers paid through the Division of Family and Youth Services. Representative Mackie noted that the Department of Health and Social Services is required to implement regulations identifying actions to be taken upon reports of harm by a home care provider; it also protects the due process rights of the provider. The companion bill, HB 4, provides that conviction of a person licensed, certified or regulated by a board or the Department of Commerce, for abuse of an elderly or disabled person may be considered ground for disciplinary proceedings or sanctions. Representative Mackie pointed out that 30 percent of back ground checks made by the Department of Public Safety have a criminal history. He provided members with a letter citing abuses of elderly nursing patients (Attachment 1). Representative Parnell asked if a family member can be a home care provider under state contract. PAT O'BRIEN, FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES clarified that it would be unusual for a family member to be a contract care provider. Representative Hanley asked if "held jointly" means that both powers of attorney would have to execute. Representative Mackie replied that they would. Representative Hanley noted that the spouse of the primary power of attorney could be the second power of attorney. He asserted that it would be easy for couples to abuse their charge. He suggested that the second power of attorney not be the spouse. Representative Martin expressed concern with the fiscal cost. Representative Mackie clarified that no new programs would be created. He pointed out that the current program is funded through federal Medicaid funds. He noted that the legislation only changes employment requirements. Representative Martin stresssed that background checks would be mandated. The funding source of background checks was not specified. Representative Parnell MOVED to report HB 3 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 3 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Administration, dated 3/10/93 and with a fiscal impact note by the Department of Health and Social Services and with a zero fiscal note by the Department of Health and Social Services. HOUSE BILL NO. 172 "An Act relating to the wildlife conservation tag and to entry onto state game and wildlife sanctuaries, state game refuges, state range areas, and fish and game critical habitat areas; and providing for an effective date." Representative Foster provided members with a Committee Substitute for HB 172, Work Draft 8-LS0650\K (Attachment 2). Representative Foster explained amendments to HB 172. The first amendment deletes the ability of the Commissioner of Department of Fish and Game to designate by regulation, areas of the state where the tag would be mandatory. The Commissioner may request the legislature to designate additional areas where the tag would be required. Representative Foster observed that the second amendment was requested by Co-Chair MacLean. The second amendment exempts Alaskan residents from the tag requirement. The tag would be required for nonresidents visiting, or applying for a permit to visit the McNeil river Sanctuary or the Walrus Island Sanctuary. Representative Foster MOVED to ADOPT, Committee Substitute for HB 172, Work Draft 8-LS0650\K. There being NO OBJECTION, it was so ordered. Representative Brown asked if all state game and wildlife sanctuaries are included. GERON BRUCE, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND GAME clarified that areas other than the McNeil river Sanctuary and Walrus Island Sanctuary would not be included. The Commissioner may request the legislature to include other areas through additional legislation. (Tape Change, HFC 93-93, Side 2) Representative Parnell expressed concerns regarding equal protection provisions. Representative Hanley assured him that Legal Counsel advised that equal protection should not create a problem with the legislation. Mr. Bruce commented that the second amendment would reduce revenues to support the program. He emphasized that the program may take longer to reach fruition with the reduced funding. Mr. Bruce clarified, in response to a question by Representative Martin, that a permit is needed to land on Walrus Island. Representative Hanley noted that tag purchases will not in all cases be voluntary. Representative Hanley MOVED to delete "voluntary" from page 2, line 5. There being NO OBJECTION, it was so ordered. Representative Martin expressed concern that out-of-state visitors will be treated differently. Representative Foster MOVED to report CSHB 172 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Parnell OBJECTED. He reiterated his concern that the legislation will be in conflict with equal protection requirements. Representative Grussendorf did felt that CSHB 172 (FIN) would be upheld. Representative Brown noted that a new fiscal note from the Department of Fish and Game will be needed. Co-Chair Larson noted that the bill will be transmitted with a new Department of Fish and Game fiscal note. A roll call vote was taken on the motion to move CSHB 172 (FIN) from committee. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Foster, Hanley, Therriault, Larson OPPOSED: Martin, Parnell Co-Chair MacLean was absent from the vote. The MOTION PASSED (8-2). CSHB 172 (FIN) was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Fish and Game, dated 3/5/93. ADJOURNMENT The meeting adjourned at 9:28 a.m.