HOUSE FINANCE COMMITTEE May 5, 1994 8:35 a.m. TAPE HFC 94-158, Side 2, #000 - end. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 8:35 a.m. PRESENT Co-Chair Larson Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf Representative Hoffman Co-Chair MacLean was not present for the meeting. ALSO PRESENT Teresa Sager-Stancliff, Senator Mike Miller; David Skidmore, Senator Steve Frank; Helvi Sandvic, Deputy Commissioner, Department of Transportation and Public Facilities. SUMMARY INFORMATION SB 46 "An Act authorizing moose farming." SB 46 was HELD in Committee for further discussion. SB 101 "An Act relating to eligibility for and payments of public assistance; and providing for an effective date." HCS CSSB 101 (FIN) was reported out of Committee with "no recommendation" and with two fiscal impact notes by the Department of Health and Social Services, dated 4/28/94. SB 135 "An Act making a special appropriation to the Department of Transportation and Public Facilities to determine the cost of acquiring real property within the right-of-way of the proposed extension of the Alaska Railroad from Eielson Air Force Base to the Alaska-Canada border; and providing for an effective date." CSSB 135 (FIN) was reported out of Committee with "no recommendation". SB 256 "An Act increasing the tax on transfers and consumption of aviation fuel." CSSB 256 (STA) was reported out of Committee with "individual recommendations" and with two fiscal impact notes, one by the Department of Revenue, dated 1/28/94, and one by the Department of Transportation and Public Facilities, dated 4/27/94. SENATE BILL NO. 135 "An Act making a special appropriation to the Department of Transportation and Public Facilities to determine the cost of acquiring real property within the right-of-way of the proposed extension of the Alaska Railroad from Eielson Air Force Base to the Alaska-Canada border; and providing for an effective date." Co-Chair Larson noted that SB 135 would appropriate $10.0 thousand dollars to the Department of Transportation and Public Facilities. Representative Martin MOVED to report CSSB 135 (FIN) out of Committee with individual recommendations. CSSB 135 (FIN) was reported out of Committee with "no recommendation". SENATE BILL NO. 256 "An Act increasing the tax on transfers and consumption of aviation fuel." HELVI SANDVIC, DEPUTY COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES spoke in support of SB 256. She noted that the court ruled against Department of Transportation and Public Facilities imposed airport landing fees. She explained that the legislation would institute an aviation fuel tax in an amount to equal the landing fee revenue lost by the Department of Transportation and Public Facilities. She emphasized that without the additional funding the department does not have the ability to meet its cost at rural airports. Representative Foster spoke in support of SB 256. He noted that the Air Carrier Association supports the legislation. Representative Foster MOVED to report CSSB 256 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Brown questioned if the revenue would be placed in a designated fund for accounting purposes. Ms. Sandvic clarified that the Department of Transportation and Public Facilities' budget includes the funding in their general fund request. There is no designated fund. Representative Brown stressed that the legislative intent in approving the increase is that the money be used to offset revenues lost with the termination of landing fees. There being NO OBJECTION, CSHB 256 (TRA) was moved from Committee. CSSB 256 (STA) was reported out of Committee with individual recommendations and with two fiscal impact notes, one by the Department of Revenue, dated 1/28/94, and one by the Department of Transportation and Public Facilities, dated 4/27/94. SENATE BILL NO. 101 "An Act relating to eligibility for and payments of public assistance; and providing for an effective date." DAVID SKIDMORE, STAFF, SENATOR STEVE FRANK explained that SB 101 would amend the Interim Assistance provision (IA). He pointed out that IPA pays individuals $280 dollars a month while they await determination of eligibility for Social Security Insurance (SSI) or Adult Public Assistance (APA). Mr. Skidmore emphasized that the legislation would allow the Division of Public Assistance to return to its practice of terminating interim assistance after an initial determination of SSI ineligibility. This was the department's practice prior to the 1986 Alaska Supreme Court ruling, Morre versus Beirne. The court mandated that the state make payments during the appeal process. Mr. Skidmore observed that individuals who are eligible for SSI repay the state for interim assistance received. The legislation would require that individuals who are determined ineligible for SSI also repay the state for interim assistance. The legislation would define interim assistance owed to the state as an overpayment of public assistance. Overpayment could be recouped through garnishment of permanent fund dividend payments. Mr. Skidmore noted that the legislation directs the Division of Public Assistance to work with the Division of Vocational Rehabilitation in establishing consistent standards to govern the disability determination process. In response to a question by Representative Brown, Mr. Skidmore observed the intent to clarify that payments are terminated after the first determination of ineligibility. He clarified that APA and IA payments are state funded, while SSI is federally funded. Mr. Skidmore provided members with AMENDMENT 1 (copy on file). He explained that the amendment would pertain to applicability. The amendment clarifies that the legislation applies to new applications, applications pending and appeals pending at the effective date. Co-Chair Larson MOVED to ADOPT AMENDMENT 1. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Foster, Hanley, Martin, Parnell, Grussendorf, Larson OPPOSED: Brown, Hoffman Representatives Navarre and Therriault were not present for the vote. The MOTION PASSED (6-2). Representative Brown provided members with AMENDMENT 2 (copy on file). She explained that the amendment would allow the Division to make an exception for hardship cases. JAN HANSEN, DIRECTOR, DIVISION OF MEDICAL ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES observed that individuals applying for SSI must have an income below $450.0 dollars a month. She stated that eligibility is based on a physician's opinion that the individual has a disability that is and will continue to be incapacitating to the degree that they are not able to work. Mr. Skidmore spoke in opposition to the amendment. Representative Martin OBJECTED. A roll call vote was taken on the MOTION to adopt AMENDMENT 2. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean was not present for the vote. The MOTION FAILED (4-6). Representative Brown provided members with AMENDMENT 3 (copy on file). She explained that the amendment would change "initial" to "final" in order to initiate the cut off after the final determination of SSI eligibility. She emphasized that the amendment would be consistent with the court's ruling. Representative Navarre spoke in support of Amendment 3. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean was not present for the vote. The MOTION FAILED (4-6). Representative Martin MOVED to report HCS CSSB 101 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Foster, Hanley, Martin, Parnell, Therriault, Larson OPPOSED: Brown, Hoffman, Navarre Co-Chair MacLean was not present for the vote. The MOTION PASSED (7-3). HCS CSSB 101 (FIN) was reported out of Committee with "no recommendation" and with two fiscal impact notes by the Department of Health and Social Services, dated 4/28/94. SENATE BILL NO. 46 "An Act authorizing moose farming." Co-Chair Larson provided members with a proposed committee substitute, work draft #8-LS0371\S, dated 5/3/94 (copy on file). TERESA SAGER-STANCLIFF, STAFF, SENATOR MILLER testified in support of SB 46. She explained that the legislation expands game farming statutes and transfers authority from the Department of Fish and Game to the Department of Natural Resources. She maintained that the legislation provides a better regulatory mechanism to assure a healthy game farm industry in Alaska. The bill also sets up an experimental animal husbandry permit, which can be issued for the farming of new species such as moose or caribou. The animals would remain the property of the state. Permits would be regulated by the Department of Fish and Game. If the permittee can demonstrate that breeding animals in captivity is successful they can apply for private ownership of the animals. Ms. Sager-Stancliff addressed the proposed committee substitute. She noted that the proposed committee substitute adds sections defining "moose and caribou" as game farm animals. She added that the sections would not take effect until the Department of Fish and Game determines that those species are game farm animals. The determination would be made through regulation. Representative Therriault MOVED to ADOPT work draft #8- LS0371\S, dated 5/3/94. He reiterated that the Department of Fish and Game will have complete control over the determination of the animals. There being NO OBJECTION, it was so ordered. In response to a question by Representative Parnell, Ms. Sager-Stancliff restated that the Department of Fish and Game has the authority and discretion to issue experimental permits and provide animals to the permittee. The permittee would petition to the Department of Fish and Game for private ownership after a five year trial period. The department will determine through regulation the criteria for an animal being identified as a game farm species. The permittee must demonstrate that they have cared properly for the animals and obtain a game farming license. Representative Therriault MOVED to report HCS CSSB 46 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. The motion remained pending due to a lack of minority members being present. ADJOURNMENT The meeting adjourned at 9:10 a.m.