HOUSE FINANCE COMMITTEE May 06, 2001 11:34 AM TAPE HFC 01 - 117, Side A CALL TO ORDER Co-Chair Williams called the House Finance Committee meeting to order at 11:34 AM. MEMBERS PRESENT Representative Eldon Mulder, Co-Chair Representative Bill Williams, Co-Chair Representative Con Bunde, Vice-Chair Representative Eric Croft Representative John Davies Representative Carl Moses Representative Richard Foster Representative John Harris Representative Bill Hudson Representative Ken Lancaster Representative Jim Whitaker MEMBERS ABSENT None ALSO PRESENT Senator Rick Halford, Sponsor; Mike Tibbles, Staff, Representative Williams; Mary Jackson, Staff, Senator Torgerson; Chris Knauss, Staff, Senator Kelly. SUMMARY HB 185 "An Act relating to fees for certain uses of state water and the accounting and appropriation of those fees; relating to authorizations for the temporary use of state water; making other amendments to the Alaska Water Use Act; and providing for an effective date." CSHB 185 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with a previously published fiscal note (#1) by the Department of Revenue. CSSB 105(FIN) "An Act relating to victims' rights; relating to establishing an office of victims' rights; relating to the authority of litigants and the court to comment on the crime victim's choice to appear or testify in a criminal case; relating to compensation of victims of violent crimes; relating to eligibility for a permanent fund dividend for persons convicted of and incarcerated for certain offenses; relating to notice of appropriations concerning victims' rights; amending Rules 16 and 30, Alaska Rules of Criminal Procedure, Rule 9, Alaska Delinquency Rules, and Rule 501, Alaska Rules of Evidence; and providing for an effective date." HCS CSSB 105 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with five previously published fiscal notes: #1 - COR, #2 - LAW, #3 - REV, #4 - LAA, #5 - LAW. CSSB 137 (FIN) "An Act relating to the allocation of money appropriated to the Alaska Human Resource Investment Council; and providing for an effective date." HCS CSSB 137 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with two previously published fiscal notes: #1 - LDF and #2 - SFC. CSSB 145(FIN) "An Act relating to regional and village public safety officers; relating to the expansion of the village public safety officer program to include the provision of probation and parole supervision services; and relating to retirement benefits for village public safety officers." HCS CSSB 145 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with three previously published fiscal notes (#4 - ADM, #5 - DPS, and # 6 - COR). CSSB 193 (FIN) "An Act relating to a study of the economic and social effects of the permanent fund dividend on the state." CSSB 193 (FIN) was REPORTED out of Committee with "no recommendation" and a previously published fiscal note (#1 - LAA). HCR 18 Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of the Alaska State Legislature, concerning Senate Bill No. 105, relating to crime victims. HCR 18 was REPORTED out of Committee with a "do pass" recommendation. CSSB 198 (HES) "An Act establishing the Statewide Suicide Prevention Council; and providing for an effective date." CSSB 198 (HES) was REPORTED out of Committee with a "do pass" recommendation and with a previously published fiscal note (#2 - HSS). HOUSE BILL NO. 185 "An Act relating to fees for certain uses of state water and the accounting and appropriation of those fees; relating to authorizations for the temporary use of state water; making other amendments to the Alaska Water Use Act; and providing for an effective date." Co-Chair Williams noted that the drafter had concerns with a previously adopted amendment to HB 185. MIKE TIBBLES, STAFF, REPRESENTATIVE WILLIAMS explained that the drafter was concerned with the constitutionality of tying together the administrative fee and the water conservation fee. He noted that the work draft GH1087\S, dated 5/5/01 would correct the problem. Representative Foster MOVED to Rescind passage of CSHB 185 (FIN) from Committee. There being NO OBJECTION, it was so ordered. Representative Foster MOVED to ADOPT proposed committee substitute work draft GH1087\S, 5/5/01. There being NO OBJECTION, it was so ordered. Mr. Tibbles noted that the paragraph on page 4, lines 9 - 13 was restructured so that the purpose of the annual $50 administrative service fee was to maintain the water management program. The water conservation fee would not be tied to maintenance of the program. Representative Foster MOVED to report CSHB 185 (FIN) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. Co-Chair Williams MOVED to ADOPT the committee report passed with CSHB 185 (FIN) on 5/05/01 as the committee report. There being NO OBJECTION, it was so ordered. CSHB 185 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with a previously published fiscal note (#1) by the Department of Revenue. SENATE BILL NO. 137 "An Act relating to the allocation of money appropriated to the Alaska Human Resource Investment Council; and providing for an effective date." MARY JACKSON, STAFF, SENATOR TORGERSON, explained the legislation. She observed that HB 239 was passed by the previous Legislature. House Bill 239 established a new technical and vocational education program. In lieu of regulations, the first year funding went directly to the three public institutions. Regulations still have not been adopted. House Bill 137 would extend funding financial provisions for three years to the same institutions. Co-Chair Mulder MOVED to ADOPT proposed committee substitute work draft, LS0719\F, Cramer 5/3/01. There being NO OBJECTION, it was so ordered. Vice-Chair Bunde noted that the funding distributions were changed. Co-Chair Mulder explained that there is now a vocational center in Galena. Four percent of the proceeds were transferred from the Kotzebue Technical Center to the Galena Project Education Vocation Training Center. Representative John Davies questioned the impact of a 4 percent reduction for the Kotzebue Technical Center. Co- Chair Mulder noted that Kotzebue Technical Center would still receive $318 thousand dollars. Galena would receive approximately $182 thousand dollars. The University of Alaska would receive $3.51 million dollars. The Alaska Vocational Technical Center would receive $1.2 million dollars. Vice-Chair Bunde questioned the rationale of taking the funding from the Kotzebue Technical Center. Representative Davies MOVED to ADOPT Amendment 1: University of Alaska 63 percent, Kotzebue Technical Center - 11 percent, and Galena Project Education Vocational Training Center at 4%. Ms. Jackson noted that the Kotzebue Technical Center received slightly more than 11 percent in the previous year. There being NO OBJECTION, Amendment 1 was adopted. HCS CSSB 137 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with two previously published fiscal note s (#1 and #2) by the Department of Labor and Workforce Development and the Senate Finance Committee. SENATE BILL NO. 193 "An Act relating to a study of the economic and social effects of the permanent fund dividend on the state." CHRIS KNAUSS, STAFF, SENATOR KELLY testified in support of the legislation and stated that he was available for questions. Representative Davies questioned how the information would be used. Mr. Knass responded that the information would provide building blocks. Representative Davies questioned if there is expectation that the court would allow a two-year residency. Mr. Knass noted that there is not an expectation that the court would allow a two-year residency. The intent is to see how dependent people who move to the state of Alaska are upon state services, particularly the permanent fund dividend. Representative Croft questioned if the court would reconsider a two-year residency if it could be demonstrated that the permanent fund dividend was a magnet. Mr. Knass affirmed. Vice-Chair Bunde felt that the chances of a two- year residency requirement would be slim. Representative Hudson MOVED to report CSSB 193 (FIN) out of Committee with the accompanying fiscal note. CSSB 193 (FIN) was REPORTED out of Committee with "no recommendation" and a previously published fiscal note (#1) by the Legislative Affairs Agency. CS FOR SENATE BILL NO. 145(FIN) "An Act relating to regional and village public safety officers; relating to the expansion of the village public safety officer program to include the provision of probation and parole supervision services; and relating to retirement benefits for village public safety officers." Representative Croft summarized that the legislation supports four new village public safety officers and four new constables. He observed that the original intent was to add six of each. Members were provided with Amendment 1 and Amendment 2 (copies on file). Co-Chair Williams MOVED to ADOPT Amendment 1. [Amendment 1 would provide for a ruling from the United States Internal Revenue Service permitting the retirement system to include village public safety officers.] SENATOR RICK HALFORD, SPONSOR testified in support of the legislation. He explained that Amendment 1 was requested by the Administration. The amendment would not take affect until the ruling. There being NO OBJECTION, Amendment 1 was adopted. Senator Halford explained that Amendment 2 would add the regional public safety officer in the category of peace officer and clarify that they are a new category. There would be three tiers. Two would be in the direct state system. One would be in the contracted system. These would be statewide public safety officer, regional public safety officer and the village public safety officer. This is the career track for the VPSO system. He clarified that the amendment addresses regional public safety officers. There are only four. The regional public safety officer title replaces the title of constable. The positions would be tied to the village public safety officers instead of to the state troopers. They would go into the public safety list. They would have the same training provisions as envisioned under the constable system. There being NO OBJECTION, Amendment 2 was adopted. In response to a question by Vice-Chair Bunde, Senator Halford explained that there were concerns with the involvement by the IRS regarding the addition of non-profit employees in the state retirement system. An opinion from the IRS will be obtained under the provisions of Amendment 1. Vice-Chair Bunde observed that the [regional public safety officer] positions would allow upward movement on the VPSO career track. He expressed concern that the positions could be filled with by persons who were not village public safety officers. Senator Halford expressed confidence that the four positions would come from the VPSO list. He stated that he wanted to prevent an open testing situation, where the highest score without the experience or commitment to the local community would receive the position. The intent is that the positions come from the ranks of the village public safety officers. HCS CSSB 145 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with three previously published fiscal notes (#4 - ADM, #5 - DPS, and # 6 - COR). CS FOR SENATE BILL NO. 105(FIN) "An Act relating to victims' rights; relating to establishing an office of victims' rights; relating to the authority of litigants and the court to comment on the crime victim's choice to appear or testify in a criminal case; relating to compensation of victims of violent crimes; relating to eligibility for a permanent fund dividend for persons convicted of and incarcerated for certain offenses; relating to notice of appropriations concerning victims' rights; amending Rules 16 and 30, Alaska Rules of Criminal Procedure, Rule 9, Alaska Delinquency Rules, and Rule 501, Alaska Rules of Evidence; and providing for an effective date." SENATOR HALFORD, SPONSOR, noted that there was an amendment drafted by the Department of Law to address the restitution collection question. Vice-Chair Bunde MOVED to ADOPT Amendment 1 (copy on file.) Amendment 1 would insert new language on page 4, line 29. Vice-Chair Bunde WITHDREW Amendment 1. Representative Foster MOVED to ADOPT Amendment 3. Senator Halford spoke in support of Amendment 3. He explained that it was drafted by the Administration on a part of the bill that they originated. Representative Hudson MOVED to report HCS CSSB 105 (FIN) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HCS CSSB 105 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with five previously published fiscal notes (#1 - COR, #2 - LAW, #3 - REV, #4 - LAA, #5 - LAW). HOUSE CONCURRENT RESOLUTION NO. 18 Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of the Alaska State Legislature, concerning Senate Bill No. 105, relating to crime victims. Vice-Chair Bunde MOVED to report HCR 18 out of Committee. He explained that the resolution supports a title change for SB 105. Senator Halford clarified that the title change allows the inclusion of restitution language that came from the Administration. There being NO OBJECTION, HCR 18 was adopted. HCR 18 was REPORTED out of Committee with a "do pass" recommendation. CS FOR SENATE BILL NO. 198(HES) "An Act establishing the Statewide Suicide Prevention Council; and providing for an effective date." SENATOR HALFORD, SPONSOR, testified in support of the legislation. He explained that the resolution is an effort to increase awareness, coordination and efforts in suicide prevention. Suicide is the most unreported cause of the loss of life and is in epidemic proportions in rural Alaska and the Matsu Valley. He observed that the last coordinated effort was in 1988. Vice-Chair Bunde acknowledged the problem and questioned what would be done to "turn the corner" on the challenge. Senator Halford observed that there are serial suicides in rural areas. He noted that those that don't feel like they have options are lost. One of the problems is that the things that are done to make people feel better may elevate the individual so that someone else that feels lost may think that suicide may be the answer. He stressed the need for the collective will and wisdom of many people to address the problem. He emphasized that the solutions have to be home grown and that it will take a lot of listening. Representative Hudson spoke in support of the legislation. Representative Croft felt that the composition of the board provides a broad spectrum of requirements for different segments of the society outside of government. He noted that the Council would include young people, clergy, rural persons, and those that have experienced the death of a member of their family. Senator Halford noted that the Administration assisted` in the formation of the Council. Representative Foster MOVED to report CSSB 198 (HES) out of Committee with the accompanying fiscal note. CSSB 198 (HES) was REPORTED out of Committee with a "do pass" recommendation and with a previously published fiscal note (#2 - HSS). ADJOURNMENT The meeting was adjourned at 12:05 a.m.