HOUSE FINANCE COMMITTEE May 8, 1994 1:10 P.M. TAPE HFC 94 - 166, Side 2, #000 - end. TAPE HFC 94 - 167, Side 1, #000 - #210. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 1:10 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Col. William Valentine, Director, Fish and Wildlife Protection, Department of Public Safety; Dean Paddock, Executive Director, Bristol Bay Drift Netters Association, Juneau; Nancy Slagle, Director, Division of Budget Review, Office of Management and Budget; Linda Rexwinkel, Division of Budget Review, Office of Management and Budget. SUMMARY SB 316 An Act relating to commercial fishing penalties. HCS CS SB 316 (FIN) was reported out of Committee with "no recommendations" and with fiscal notes by the Alaska Court System, the Department of Law dated 3/03/94 and the Department of Public Safety dated 3/16/94, and with a House Judiciary Letter of Intent. SB 357 An Act relating to certain study, publication, and reporting requirements by and to state agencies; relating to certain fees for reports; and providing for an effective date. HCS CS SB 357 (FIN) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Education dated 3/14/94, the Department of Commerce and Economic Development dated 3/14/94, 4/07/94, the Department 1 of Public Safety dated 3/14/94, the Department of Administration dated 4/21/94, 4/07/94, 3/14/94, the Department of Transportation and Public Facilities dated 4/21/94, the Department of Natural Resources dated 3/14/94, the Office of the Governor dated 4/07/94, the Department of Environmental Conservation dated 3/14/94, the Department of Military and Veterans and Affairs dated 3/14/94 and the Department of Revenue dated 4/07/94. SENATE BILL 316 "An Act relating to commercial fishing penalties." DEAN PADDOCK, EXECUTIVE DIRECTOR, BRISTOL BAY DRIFT NETTERS' ASSOCIATION, INC.(BBDA), JUNEAU, briefed the Committee that BBDA's top priority is to seek a solution to the situation existing at the North Egegik line. He added that the record of the Alaska Board of Fisheries, twice has shown that within the last seven years there have been proposals submitted which could have reduced violations at the existing boundary. Such proposals will be before the Board at their next meeting for reconsideration of regulations in the Bristol Bay area. Mr. Paddock stated that BBDA does not support the current proposal for the following reasons: 1. The penalties are proposed as a remedy to a unique and unusual situation, yet they would affect fishermen statewide; 2. The proposed penalties will not remedy the cause of the problem, which may be described as the regulatory confining of a great number of fishermen into an extremely limited space, into which large numbers of valuable fish migrate rapidly, especially at certain stages of the tide; 3. The line in question is not visible but is defined by the use of Loran C. Loran C is admitted by all, including the Department of Public Safety, to have a variation of at least plus or minus 100 feet or more in either direction. Thus there is an invisible electronic line with a built-in error of at least 200 feet. In the competitive world of salmon fishing today, the fact creates the existing situation. More stringent penalties will do little to correct this. 2 4. DDBA believes that the problem has now achieved a profile which is bringing attention to the legislation. He asked for more meaningful consideration from the Board of Fisheries, the Department of Fish and Game and the Department of Public Safety; and 5. DDBA submits that no other industry of comparable value and importance to the State would be subject to a proposal of similar impact without being provided a better opportunity for process involvement. Representative Grussendorf pointed out that the regulations would negatively impact other small fisheries which do not generate as much value as those in Bristol Bay. COL. WILLIAM VALENTINE, DIRECTOR, FISH AND WILDLIFE PROTECTION, DEPARTMENT OF PUBLIC SAFETY, emphasized that the problem is with the greed of the fishermen. They push the line hard to make the most money. The legislation would provide the Department a tool to provide a larger deterrent. Representative Navarre provided the Committee with a copy of AS 16.05.722 which clarifies the strict liability of commercial fishing penalties. [Copy on file]. He suggested changing the burden of proof which would make the penalty more stringent. He added that the legislation will not impact the Bristol Bay area as intended, but instead impact the low value fishery areas. Col. Valentine commented that the Department does not want to be in the position to be the judge, jury and enforcement officer. Representative Navarre felt that DPS should have the authority to provide all those services. He understood that seizure of a vessel is allowable by current law and should be implemented more often creating a deterrent that would keep fishermen "towing the lawful line". The monetary fine does not prohibit the fisherman from moving over the line and catching the greater yield of fish. Representative Hanley MOVED to report HCS CS SB 316 (JUD) out of Committee with individual recommendations. Representative Navarre OBJECTED asking for further discussion of the Senate Resource version of the bill which would change the burden to provide "clear and convincing evidence". A roll call vote was taken on the MOTION. IN FAVOR: Therriault, Hanley, Hoffman, Martin, 3 Parnell, Larson. OPPOSED: Grussendorf, Navarre. Representatives Brown, Foster and MacLean were not present for the vote. The MOTION PASSED (6-2). Representative Navarre recommended adding an additional fiscal note to allocate money to adequately fund enforcement. Representative Parnell advised that additional funds were added last year for fish and wildlife protection with no additional work load. There being NO OBJECTIONS to the Letter of Intent, it was adopted. Representative Hanley MOVED to adopt the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 316 (JUD) was reported out of Committee with "no recommendations" and with a House Judiciary Letter of Intent and with fiscal notes by the Alaska Court System, the Department of Law dated 3/03/94 and the Department of Public Safety dated 3/16/94. SENATE BILL 357 "An Act relating to certain study, publication, and reporting requirements by and to state agencies; relating to certain fees for reports; and providing for an effective date." (Tape Change, HFC 94-167, Side 1). NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, explained that SB 357 was a "housekeeping" bill which will benefit the State by creating more efficiency in record keeping. LINDA REXWINKEL, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, responded to a question regarding the University. She noted that most of the items listed within the University's report are included in normal budgetary books. An additional report is provided to the Legislature in the Fall, prepared in detail. That report is provided at the beginning of the Legislative session. Representative Navarre requested that those reports submitted by the University make the "budget requesting consistent". Representative Brown provided the Committee with a copy of a memorandum written by Paul Arnoldt, Director, Workers' 4 Compensation Division, Department of Labor. [Copy on file]. The memo requests a change in the Rehab Administration's report from a fiscal year base to a calendar base, which would bring it in line with other insurance reports. She added that OMB supports the proposed change. Representative Brown MOVED to adopt the amendment as proposed by the Department of Labor. There being NO OBJECTIONS, it was adopted. Representative Navarre MOVED to report HCS CS SB 357 (FIN) out of Committee with individual recommendations and with the accompanying zero fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS CS SB 357 (FIN) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Education dated 3/14/94, the Department of Commerce and Economic Development dated 3/14/94, 4/07/94, the Department of Public Safety dated 3/14/94, the Department of Administration dated 4/21/94, 4/07/94, 3/14/94, the Department of Transportation and Public Facilities dated 4/21/94, the Department of Natural Resources dated 3/14/94, the Office of the Governor dated 4/07/94, the Department of Environmental Conservation dated 3/14/94, the Department of Military and Veterans and Affairs dated 3/14/94 and the Department of Revenue dated 4/07/94. ADJOURNMENT The meeting adjourned at 2:00 P.M. HOUSE FINANCE COMMITTEE May 10, 1994 10:05 A.M. TAPE HFC 94 - 168, Side 1, #000 - #622. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 10:05 A.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster 5 ALSO PRESENT Jerry Burnett, Staff, Senator Randy Phillips; Nancy Slagle, Director, Division of Budget Review, Office of Management and Budget; Juanita Hensley, Chief, Driver Services, Department of Public Safety; M. Clyde Stolzfus, Special Assistant, Commissioner's Office, Department of Transportation and Public Facilities. SUMMARY SB 56 An Act relating to the budget reserve fund established under art. IX, sec. 17, Constitution of the State of Alaska. CS SB 56 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Senate State Affairs Committee. SB 365 An Act relating to the improvement of state finances and fiscal accountability by increasing fees, by collecting additional revenue, by reducing certain program expenditures by changing services or eligibility requirements for programs, by changing certain statutory limitation periods, by providing for use of certain electronic records, by making changes to state agency functions or procedures including certain reporting and planning procedures, and by authorizing extensions for state leases for real property if certain savings can be achieved; and providing for an effective date. HCS SB 365 (FIN) was reported out of Committee with "no recommendations" and with fiscal notes by the Department of Public Safety dated 3/24/94, the Office of the Governor dated 4/21/94, the Department of Transportation and Public Facilities dated 4/21/94, the Department of Environmental Conservation dated 4/21/94, the Department of Labor dated 4/21/94, the Department of Corrections dated 4/21/94, the Department of Administration dated 4/21/94 and the Department of Law dated 4/21/94. SENATE BILL 56 "An Act relating to the budget reserve fund established under art. IX, sec. 17, Constitution of the State of Alaska." JERRY BURNETT, STAFF, SENATOR RANDY PHILLIPS, explained SB 6 56 which would implement repayment provisions made from appropriations within the constitutional budget reserve fund. The legislation would allow a carry forward as of June, 30, 1994, or as much as necessary to complete the repayment. The repayment would be transferred to that fund by the Department of Administration after the annual financial report was filed. Representative Brown asked what the definition of an unreserved balance, undesignated general fund balance. Mr. Burnett replied that balance would be the money which had not been restricted by law for specific use and which would accrue to the general fund under accepted accounting principles. Mr. Burnett added that the provisions provided by SB 56 were similar to those contained in HB 58, although that bill had been found unconstitutional. SB 56 was written to be consistent with the State's constitutional position. He added that when the judge ruled on HB 58, he advised that the legislation was unduly restricting funds available for repayment. The State continues to argue that case to the Supreme Court. The section in question of the constitution, specifically requires that the Legislature implement it by law and that money be taken from the general fund. Representative Hanley MOVED to report CS SB 56 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTIONS, it was so ordered. CS SB 56 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Senate State Affairs Committee. SENATE BILL 365 "An Act relating to the improvement of state finances and fiscal accountability by increasing fees, by collecting additional revenue, by reducing certain program expenditures by changing services or eligibility requirements for programs, by changing certain statutory limitation periods, by providing for use of certain electronic records, by making changes to state agency functions or procedures including certain reporting and planning procedures, and by authorizing extensions for state leases for real property if certain savings can be achieved; and providing for an effective date." JUANITA HENSLEY, CHIEF, DRIVER SERVICES, DEPARTMENT OF PUBLIC SAFETY, explained Sections 7-22, Department of Public 7 Safety amendments, from a handout provided by the Office of Management and Budget. NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, provided a sectional analysis of the handout "Reducing State Government Expenditures-Sectional". [Copy on file]. Representative Martin questioned the deletion to maintenance for the Department of Transportation and Public Facilities (DOTPF) in Section #1. M. CLYDE STOLZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, commented that Section #1 would be a deletion for a transportation plan. Representative Brown provided the Committee with Amendment [Copy on file]. She felt that to include these items would create a less comprehensive planning process and that less detail would be provided by the Department of Transportation and Public Facilities. Mr. Stolzfus agreed that the maintenance level has been less than adequate within the Department. However, a problem arises when a certain level of maintenance is promised in a plan and then the Department can not provide the service due to a lack of funds. Representative Brown asked if a prioritized maintenance program had been established. Mr. Stolzfus replied one had not been because it would result in a liability problem for the Department. He continued, by stating that Section #2 had been added by the Senate Finance Committee. Section #1 addresses the six year program, Section #2 addresses the construction report of projects for the next construction season. Discussion followed between Representative Brown and Mr. Stolzfus regarding Sections #1 & #2 and the reductions to the level of detail which the legislation would provide. Representative Brown asked the difference between the six year plans proposed in Section #1 and Section #26. Mr. Stolzfus advised that Section #26 was the report which the Governor submits to the Legislature. Representative Brown understood that Section #27 would exempt DOTPF from providing the full reporting requirements due to the Legislature on the construction of projects. Mr. Stolzfus agreed. He added that Section #27 would eliminate in the six year plan, the estimated cost of that project. 8 Representative Brown MOVED TO AMEND Amendment #1 which would now delete only Sections #1, #2, #27 & #28. There being NO OBJECTIONS, it was adopted. Representative Navarre MOVED to report HCS SB 364 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. HCS SB 365 (FIN) was reported out of Committee with "no recommendations" and with fiscal notes by the Department of Public Safety dated 3/24/94, the Office of the Governor dated 4/21/94, the Department of Transportation and Public Facilities dated 4/21/94, the Department of Environmental Conservation dated 4/21/94, the Department of Labor dated 4/21/94, the Department of Corrections dated 4/21/94, the Department of Administration dated 4/21/94 and the Department of Law dated 4/21/94. ADJOURNMENT The meeting adjourned at 10:50 A.M. 9