HOUSE FINANCE COMMITTEE May 2, 1995 8:30 A.M. TAPE HFC 95-109, Side 1, #000 - end. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 8:35 a.m. PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Grussendorf Representative Parnell Representative Kelly Representative Therriault Representative Kohring ALSO PRESENT Senator Mike Miller; Kelly Goode, Staff, Senator Halford; Major Buell Russel, Division of Fish and Wildlife Protection, Department of Public Safety; Bob Robadeau, Lieutenant Governor's Office. SUMMARY SB 21 An Act relating to penalties for violations of commercial fishing laws. CSSB 21 (RES) was reported out of Committee with a "do pass" recommendation and with three zero fiscal notes, one by the Department of Law dated 3/8/95, and one by the Alaska Court System dated 3/8/95, and one by the Department of Public Safety dated 3/8/95. SB 124 An Act relating to the human services community matching grant program; and providing for an effective date. SB 124 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Health & Social Services. SB 142 An Act establishing the Alaska Human Resource Investment Council and transferring certain functions of other entities to the council; 1 establishing a planning mechanism for employment training and other human resource investment needs; and providing for an effective date. HCS CSSB 142 (FIN) was reported out of Committee with a "do pass" recommendation and a House Finance Committee Letter of Intent, and with a fiscal impact note by the Office of the Governor dated 3/27/95, and with six zero fiscal notes all dated 3/27/95 by the University of Alaska, Department of Education, Department of Labor, Department of Health & Social Services, Department of Commerce and Economic Development, and Department of Community and Regional Affairs. SENATE BILL NO. 124 "An Act relating to the human services community matching grant program; and providing for an effective date." SENATE MIKE MILLER, SPONSOR testified in support of SB 124. He observed that the community match for the Human Services Community Matching Grants Program was set at 30 percent. He observed that the authorizing statute was structured to increase the community match to 50 percent in FY 96. He stressed that cities are facing declining revenues in municipal assistance and revenue sharing. He stated that 30 percent participation should be maintained. He noted that most matching grant programs only require a 30 percent match. He emphasized that the legislation will not cost additional state dollars. In response to a question by Representative Martin, Senator Miller clarified that communities will match $.30 cents on each state dollar. No additional state dollars will be required. He reiterated that cities currently match at the 30 percent level. He noted that the current general fund contribution to the program is $1.7 million dollars. Fairbanks and Anchorage contribute approximately $500.0 thousand dollars for a total of $2.3 million dollars. Representative Mulder noted that a similar bill was vetoed by the Governor in FY 95. Senator Miller could not elaborate on why the previous legislation was vetoed. Representative Kohring MOVED to report SB 124 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 124 was reported out of Committee with a "do pass" 2 recommendation and with a zero fiscal note by the Department of Health & Social Services. SENATE BILL NO. 21 "An Act relating to penalties for violations of commercial fishing laws." KELLY GOODE, STAFF, SENATOR HALFORD testified in support of SB 21. She noted that SB 21 increases the punishment for violations of commercial fishing laws. Senate Bill 21 increases the maximum fine allowable for third and subsequent violations of commercial fishing laws to $9.0 thousand dollars. She noted that similar legislation was passed by the Senate, but did not make it to the House floor for concurrence before adjournment. She observed that the previous legislation would have placed greater sanctions on first and second violations. Co-Chair Hanley noted that the prior legislation would have raised the maximum penalty for all fines. He reiterated that SB 21 only raises fines on the third offense. He observed that the legislation sets the maximum penalty allowed and is not mandatory. BUELL RUSSEL, MAJOR, ENFORCEMENT COMMANDER, DIVISION OF FISH AND WILDLIFE PROTECTION, DEPARTMENT OF PUBLIC SAFETY testified in support of SB 21, via the teleconference network. He stated that the legislation would provide a deterrent. Representative Parnell noted that he represents commercial fishermen. In response to a question by Representative Navarre, Ms. Goode stated that Senator Halford chose to introduce new legislation. Representative Mulder MOVED to report CSSB 21 (RES) out of Committee with individual recommendations and with the accompanying fiscal notes. CSSB 21 (RES) was reported out of Committee with a "do pass" recommendation and with three zero fiscal notes, one by the Department of Law dated 3/8/95, and one by the Alaska Court System dated 3/8/95, and one by the Department of Public Safety dated 3/8/95. SENATE BILL NO. 142 "An Act establishing the Alaska Human Resource Investment Council and transferring certain functions 3 of other entities to the council; establishing a planning mechanism for employment training and other human resource investment needs; and providing for an effective date." BOB ROBADEAU, OFFICE OF THE LIEUTENANT GOVERNOR testified in support of SB 142. He noted that similar legislation was vetoed by Governor Hickel. He stressed that SB 142 attempts to address concerns by agencies that were raised by the previous legislation. He observed that the legislation consolidates three federally mandated councils. The Governor's Council on Vocational Education, the Alaska Job Training Council and the Employment Security Advisory Council would be combined into the Alaska Human Resource Investment Council. He noted that the bill requires no new general fund dollars. He observed that federal funds are directly earmarked for the councils. He noted that the councils are needed to garner federal funds. He stated that the new Alaska Human Resource Investment Council will be housed in the Office of the Governor. He emphasized that the Council can be used as an economic development tool. Representative Therriault questioned the need for section 1, Legislative Findings and Purpose. Mr. Robadeau spoke in support of retaining section 1. Representative Parnell noted that there is a fiscal impact note for the Office of the Governor. Mr. Robadeau clarified that interagency transfer dollars would be used to consolidate oversight by the Office of the Governor. He emphasized that a savings will be realized by reducing members from 40 to 23. He added that the Council will also save money by reducing the number of meetings from 12 to 4 a year. Representative Brown queried how existing members will be transitioned. Mr. Robadeau explained that a six month sunset will allow private industry representatives to plan their own consolidation. The Governor hopes that consolidation can occur through attrition. He noted that specific seats are mandated by federal law. He stressed that the existing councils can recommend members of their own councils that meet the criteria outlined. He observed that the existing councils support the legislation. Representative Brown asked what can be done to increase resident hire. Mr. Robadeau emphasized that it makes economic sense to hire Alaskans if they are trained. He observed that the infrastructure to train Alaskans exists. He stressed that the Council will be represented by the private sector consumers. He emphasized that some of the largest employers in the State are involved. He stated that 4 employers want to identify jobs and develop a mechanism to train Alaskans. He pointed out that Congress approved the consolidation of councils in 1993. Since then, twenty one states have consolidated. Representative Therriault MOVED to delete section 1, Legislative Findings and Purpose. Representative Grussendorf OBJECTED. He emphasized that council members will be from the public and could benefit from legislative direction. Representative Therriault MOVED to amend his amendment to delete (a), page 1, line 7 through page 2, line 13. Representative Grussendorf OBJECTED. Representative Parnell noted that the purpose section could be included in a sponsor statement or other direction to the Council. A roll call vote was taken on the MOTION to amend the amendment. IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Kohring, Martin, Mulder, Parnell, Therriault OPPOSED: (none) Co-Chair Hanley and Co-Chair Foster were absent from the vote. The MOTION PASSED (9-0). A roll call vote was taken on the main MOTION to delete section 1 (a). IN FAVOR: Kelly, Kohring, Martin, Mulder, Parnell, Therriault OPPOSED: Brown, Grussendorf, Navarre Co-Chair Hanley and Co-Chair Foster were absent from the vote. The MOTION PASSED (6-3). Representative Navarre MOVED to incorporate section 1 (a) into a House Finance Committee Letter of Intent. There being NO OBJECTION, it was so ordered. Representative Parnell MOVED to report HCS CSSB 142 (FIN) out of Committee with individual recommendations, the accompanying fiscal notes, and the House Finance Committee Letter of Intent. There being NO OBJECTION, it was so ordered. HCS CSSB 142 (FIN) was reported out of Committee with a "do 5 pass" recommendation and a House Finance Committee Letter of Intent, and with a fiscal impact note by the Office of the Governor dated 3/27/95, and with six zero fiscal notes all dated 3/27/95 by the University of Alaska, Department of Education, Department of Labor, Department of Health & Social Services, Department of Commerce and Economic Development, and Department of Community and Regional Affairs. ADJOURNMENT The meeting adjourned at 9:15 a.m. 6