HOUSE STATE AFFAIRS STANDING COMMITTEE January 19, 1993 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chair Representative Pete Kott, Vice Chair Representative Harley Olberg Representative Jerry Sanders Representative Gary Davis Representative Fran Ulmer MEMBERS ABSENT Representative Bettye Davis (excused) OTHER HOUSE MEMBERS PRESENT Representative Terry Martin COMMITTEE CALENDAR *EO 81: Moving the Alaska Science and Technology Foundation from the Department of Revenue to the Department of Commerce and Economic Development. HELD IN COMMITTEE FOR FURTHER CONSIDERATION *EO 82: Transferring administration of the charitable gaming program from the Department of Commerce and Economic Development to the Department of Revenue. MOVED OUT OF COMMITTEE WITH DO PASS RECOMMENDATION *EO 83: Merging the State Geographic Board and the Historic Sites Advisory Committee into the Alaska Historical Commission in the Department of Natural Resources. MOVED OUT OF COMMITTEE WITH DO PASS RECOMMENDATION *EO 84: Consolidating the duties and functions of the Alaska Women's Commission and the Alaska Commission on Children and Youth into a new Alaska Human Relations Commission in the Governor's Office. MOVED OUT OF COMMITTEE WITH DO PASS RECOMMENDATION *EO 85: Moving the bonding program that serves as security for the collection of wages and payment for raw fish from the Department of Labor to the Department of Revenue. MOVED OUT OF COMMITTEE WITH DO PASS RECOMMENDATION *EO 86: Transferring the functions and duties of the division of fisheries rehabilitation, enhancement and development to the Department of Fish and Game. MOVED OUT OF COMMITTEE WITH DO PASS RECOMMENDATION *EO 87: Moving state facility leasing and management functions from the Department of Administration and other agencies to the Department of Transportation and Public Facilities. MOVED OUT OF COMMITTEE WITH DO PASS RECOMMENDATION *HJR 1: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska by approval of two-thirds of the votes cast on the proposed amendment. HELD IN COMMITTEE FOR FURTHER CONSIDERATION *HJR 8: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska. HELD IN COMMITTEE FOR FURTHER CONSIDERATION *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. SCHEDULED BUT NOT HEARD (* first public hearing) WITNESS REGISTER John Sibert, Executive Director Alaska Science & Technology Foundation (ASTF) 550 West 7th Ave. Anchorage, AK 99501 272-4333 Position Statement: Supported EO 81 Darrel Rexwinkel, Commissioner Department of Revenue P.O. Box 110400 Juneau, AK 99811-0400 465-2300 Position Statement: Supported EO 81 and EO 85 Rod Mourant, Assistant Commissioner Department of Revenue P.O. Box 110400 Juneau, AK 99811-0400 465-2300 Position Statement: Supported EO 81 Vincent Usera, Assistant Attorney General Department of Law P.O. Box 110300 Juneau, AK 99811-0300 465-2398 Position Statement: Supported EO 81 Karl Luck, Director Department of Commerce & Economic Development, Division of Occupational Licensing P.O. Box 110806 Juneau, AK 99811-0806 465-2638 Position Statement: Supported EO 82 John Hansen, Gaming Manager Department of Commerce & Economic Development Division of Occupational Licensing P.O. Box 110806 Juneau, AK 99811-0806 465-2581 Position Statement: Supported EO 82 Kristie Leaf Deputy Director of Boards & Commissions Office of the Governor P.O. Box 110001 Juneau, AK 99811-0001 465-3500 Position Statement: Supported EO 84 and EO 83 Jenny Bell AWARE P.O. Box 20809 Juneau, AK 99802 789-4175 and 586-6623 Position Statement: Opposed EO 84 Carla Timpone P.O. Box 240086 Douglas, AK 99824 364-3581 and 789-5523 Position Statement: Opposed EO 84 Cindy Smith Network on Domestic Violence 419 6th St. Juneau, AK 99801 586-3650 Position Statement: Opposed EO 84 Caren Robinson P.O. Box 33702 Juneau, AK 99801 586-1107 and 789-4305 Position Statement: Opposed EO 84 Freda Westman AWARE P.O. Box 20809 Juneau, AK 99802 586-6623 and 789-3004 Position Statement: Opposed EO 84 Marcia McKenzie Alaska Auxiliary of University Women (AAUW) P.O. Box 33977 Juneau, AK 99803 Position Statement: Opposed EO 84 Sherrie Goll Alaska Women's Lobby/KIDPAC P.O. Box 22156 Juneau, AK 99802 463-6744 Position Statement: Opposed EO 84 Geron Bruce, Special Assistant Department of Fish & Game P.O. Box 25526 Juneau, AK 99802-5526 465-6143 Position Statement: Supported EO 86 Keith Gerken, Deputy Commissioner Department of Transportation and Public Facilities 3132 Channel Drive Juneau, AK 99801-7898 465-3903 Position Statement: Supported EO 87 Kit Duke, Assistant Commissioner Department of Transportation and Public Facilities 3901 C Street, Suite 724 Anchorage, AK 99503 465-3903 and 562-2728 Position Statement: Supported EO 87 Representative Gail Phillips Room 216, Capitol Juneau, AK 99811 465-2689 Position Statement: Sponsor of HJR 1 PREVIOUS ACTION BILL: HJR 1 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Bunde TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska by approval of two-thirds of the votes cast on the proposed amendment. JRN-DATE JRN-PG ACTION 01/04/93 21 (H) PREFILE RELEASED 01/11/93 21 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 21 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 8 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott,Green,Olberg TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/12/93 49 (H) COSPONSOR(S): OLBERG 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 9 SHORT TITLE: VOTER APPROVAL FOR NEW TAXES BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN TITLE: 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. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 ACTION NARRATIVE TAPE 93-1, SIDE A Number 000 The first meeting of the House State Affairs Committee was called to order at 8:00 a.m. on January 19, 1993, by Chairman Al Vezey. Members present were Representatives Kott, Olberg, Sanders, G. Davis, and Ulmer, representing a quorum. Representative B. Davis was absent. Representative Terry Martin was also present. EO 81: AK SCIENCE & TECHNOLOGY FOUNDATION CHAIRMAN VEZEY read the title of EO 81. He reminded the committee that the authority of the governor to issue this executive order stems from Alaska statute 24.08.210. He said there may be some question if this authority allows the governor to transfer personnel from a partially exempt status to a classified or totally exempt position. He invited comments or questions from the committee and then from public agencies. Number 093 JOHN SIBERT, Executive Director, Alaska Science & Technology Foundation (ASTF), commented that EO 81 would not significantly impact ASTF. Combining science and advisory commission duties would make sense. He stated that he was in support of the changes. Number 162 REPRESENTATIVE TERRY MARTIN asked funding question to Mr. Sibert who answered that it would be internal. CHAIRMAN VEZEY asked Mr. Sibert what was the reasoning for changing the partially exempt status to a classified position. MR. SIBERT responded that he was not aware of that change. Number 176 REPRESENTATIVE GARY DAVIS asked Mr. Sibert about title change and duties. MR. SIBERT responded that with current staff he was the only technical position and would be stretched. Number 194 DARREL REXWINKEL, Commissioner, Department of Revenue, spoke in support of transferring the ASTF to the Department of Commerce. He read testimony of the reasons for supporting EO 81. His testimony included the history and purpose of the foundation. Number 239 REPRESENTATIVE FRAN ULMER brought up questions from the Department of Legal Services memo. The concerns were that EO 81 possibly goes too far by making substantive changes. Number 265 ROD MOURANT, Assistant Commissioner, Department of Revenue, stated that it was the opinion of Deborah Behr in the Department of Law that the points raised by Legal Services could be done by the revisor of statutes in technical corrections to clean up legislation. He said he would present a new draft to correct technical concerns to the committee within five days. Number 295 VINCENT USERA, Assistant Attorney General, Office of the Alaska Attorney General, stated the he drafted the executive order that omitted substance. A new draft would be introduced to correct the mistakes that were made. Number 323 REPRESENTATIVE ULMER explained the restrictions of executive orders. Number 350 REPRESENTATIVE HARLEY OLBERG said he would like exempt status to classified to be clarified. Number 381 CHAIRMAN VEZEY reminded the committee that executive orders would pass within 60 days unless vetoed and that time started ticking on January 11. Number 478 REPRESENTATIVE ULMER clarified that there must be action in the form of a resolution to reject an executive order or a request that the governor make a change to the executive order. EO 82: CHARITABLE GAMING PROGRAM Number 496 CHAIRMAN VEZEY read the title of EO 82. He invited comments or questions from the committee and then from public agencies. COMMISSIONER REXWINKEL spoke in support of EO 82. His testimony included the history of the 1988 statute change. He stated that the function of gaming was to collect enough money to carry out it's functions only. Number 544 KARL LUCK, Director, Department of Commerce & Economic Development, Division of Occupational Licensing, stated that gaming was not a function of Occupational Licensing and should be in the Department of Revenue. He expressed his support of EO 82. Number 572 JOHN HANSEN, Manager of the Gaming Program, Department of Commerce & Economic Development, stated that there was an enforcement duplication by the Department of Commerce and by the Department of Revenue. He said financial statements need to be audited and the Department of Revenue has that expertise. Number 590 REPRESENTATIVE JERRY SANDERS asked Mr. Hansen how the transfer would work. MR. HANSEN answered that the same people would do the same job only they would be with the Department of Revenue. Number 629 REPRESENTATIVE G. DAVIS requested that EO 82 pass to the House Labor and Commerce Committee. There being no objection, EO 82 passed unanimously. EO 83: GEOGRAPHIC BOARD & HISTORIC SITES ADV COMM Number 636 CHAIRMAN VEZEY read the title of EO 83. He invited comments or questions from the committee and then from public agencies. Number 649 REPRESENTATIVE OLBERG asked if the budget would be the same or if it would decrease. Number 658 REPRESENTATIVE PETE KOTT assumed that the budget of all three commissions would be reduced. Number 660 REPRESENTATIVE MARTIN stated that a negative fiscal note would be possible. Number 665 KRISTIE LEAF, Deputy Director, Boards and Commissions, Office of the Governor, spoke in support of EO 83. She submitted a fact sheet on consolidation, which outlined her testimony. She also stated that a decrease in budget was expected. TAPE 93-1, SIDE B Number 041 REPRESENTATIVE OLBERG requested that EO 83 pass out of committee and on to the House Resources Committee. Without objection, EO 83 was passed unanimously. EO 84: WOMEN'S & CHILDREN'S & YOUTH COMMISSIONS Number 062 CHAIRMAN VEZEY read the title of EO 84. He invited comments or questions from the committee and then from public agencies. Number 078 KRISTIE LEAF, Deputy Director, Boards and Commissions, Office of the Governor, spoke in support of EO 84. (A copy of her testimony is outlined in the facts sheet on consolidation contained in the committee bill file.) Number 147 REPRESENTATIVE ULMER asked Ms. Leaf about the budget. Number 150 MS. LEAF reviewed the budget history. Number 175 REPRESENTATIVE ULMER asked Ms. Leaf why there was a change in title. MS. LEAF responded that it would be more inclusive. Number 190 REPRESENTATIVE ULMER shared that the title could mean anything. She then asked if the duties of the women's and children's commissions would stay the same. Number 210 MS. LEAF responded that EO 84 would not change or add duties, responsibilities, or any change of focus. Number 216 REPRESENTATIVE ULMER stated that there was not enough time to address children's and women's issues that face each commission because the need was so great. Number 238 REPRESENTATIVE KOTT was interested in the frequency of commission meetings. Number 262 MS. LEAF responded that she did not know how often they met, but she believed that it would be better coordinated when merged together. MARSH McKENZIE with the Alaska Auxiliary of University Women (AAUW), spoke in opposition to EO 84. She believed it was a step backwards to merge the commissions because each stands on its own and has individual focuses. Number 355 REPRESENTATIVE MARTIN responded on the values of a unified title. MS. McKENZIE responded that equality and equity must come first. Number 436 SHERRIE GOLL, representing the Alaska Women's Lobby and KIDPAC, spoke in opposition to EO 84. She submitted for the committee packet the "Goals of the Alaska Women's Commission FY92." She explained the benefits from each group and the defined goals of each. Number 520 CHAIRMAN VEZEY requested that testimony be kept brief and encouraged written testimony to be added to committee packets. Number 525 REPRESENTATIVE ULMER requested that the chairman not limit testimony. Number 542 JENNY BELL, Executive Director of the Juneau Aware Shelter, spoke against EO 84 and noted some educational benefits from the Women's Commission. Number 550 CINDY SMITH, representing the Network on Domestic Violence, opposed EO 84. Number 559 CAREN ROBINSON spoke in opposition to EO 84. She requested that committee members look at reports before voting to combine the commissions. Number 585 FREDA WESTMAN, with the Juneau Aware Shelter, said she opposed EO 84 because women and children issues should be addressed separately. Number 599 REPRESENTATIVE ULMER encouraged the committee to disapprove EO 84. A roll call vote was taken. Number 618 REPRESENTATIVE OLBERG requested that the committee pass EO 84. Executive Order 84 was passed to the House Health, Education and Social Services Committee with one "do not pass" recommendation by Representative Ulmer. EO 85: BONDING PROGRAM Number 629 CHAIRMAN VEZEY read the title of EO 85. He invited comments or questions from the committee and then from public agencies. Number 638 DARREL REXWINKEL, Commissioner for the Department of Revenue, spoke in support of EO 85. Number 663 REPRESENTATIVE G. DAVIS requested that the committee pass EO 85 to the House Resources Committee. Executive Order 85 passed with one "do not pass" recommendation by Representative Ulmer. EO 86: DIV OF FISHERIES REHAB, ENHANCEMENT & DEVELOPMENT Number 669 CHAIRMAN VEZEY read the title of EO 86. He invited comments or questions from the committee and then from public agencies. Number 678 GERON BRUCE, with the Department of Fish & Game, spoke in support of EO 86. He explained why the department would better utilize personnel with the change. TAPE 93-2, SIDE A Number 044 REPRESENTATIVE ULMER questioned how the merge would affect the status and enhancement of hatcheries. Number 064 MR. BRUCE responded that it would be more efficient as a section of the division within the department. Number 098 REPRESENTATIVE ULMER encouraged having an advisory committee. Number 104 REPRESENTATIVE OLBERG shared his concern that the goals should not disappear because of the FRED (Fisheries Rehabilitation, Enhancement and Development) merger. Number 114 MR. BRUCE stated that the quality would not change. He also stated that he would include written testimony to the committee packet. Number 122 REPRESENTATIVE SANDERS requested that EO 86 move to the House Resources Committee. Hearing no objections, EO 86 moved out of committee. EO 87: STATE FACILITY LEASING & MANAGEMENT Number 129 CHAIRMAN VEZEY read the title of EO 87. He invited comments or questions from the committee and then from public agencies. Number 147 KEITH GERKINS, Deputy Commissioner, Department of Transportation and Public Facilities (DOT/PF), spoke in support of EO 87. He stated that maintenance and inventory needed to be in one place. Number 222 CHAIRMAN VEZEY had a question regarding the EO 87 zero fiscal note. Number 225 MR. GERKINS responded that moneys would be needed in the capital budget for maintenance and to bring buildings up to standards, but no moneys would be needed for EO 87. Number 245 REPRESENTATIVE asked Mr. Gerkins to clarify what the $250,000 in associated personnel costs to be transferred in the Division of General Services to the DOT/PF meant. Number 253 MR. GERKINS responded that it was simply a budget transfer to be shown in a budget amendment for the governor to submit later on. Number 261 KIT DUKE, Assistant Commissioner, Department of Transportation and Public Facilities (DOT/PF), spoke in support of EO 87 because it was the department's fiscal responsibility. Number 283 REPRESENTATIVE ULMER asked Ms. Duke if this was supported by upper management or lower management. Number 290 MR. DUKE replied that all levels, upper, lower, and people throughout the agencies, supported this concept. Number 319 REPRESENTATIVE OLBERG asked Ms. Duke what Charles Bettisworth did in the department's inventory and what was the cost. (Representative Ulmer left the meeting at 10:00 a.m.) MR. DUKE replied that the cost was approximately $100,000 to code and do an energy survey to show the condition of buildings. He stated inventory would be completed by February. Number 353 REPRESENTATIVE G. DAVIS asked if all state owned and leased buildings were included under the DOT/PF. Number 361 MR. DUKE replied that the university buildings were exempt and so were schools and corporations. Number 368 REPRESENTATIVE KOTT asked if the consolidation would save money and be more efficient. Number 374 MR. DUKE replied that EO 87 would save money. He said the department would also improve the effectiveness of state government and not be forced to spend as much money as it would have to otherwise to maintain and replace facilities. Number 395 REPRESENTATIVE KOTT requested passage of EO 87 to the House Transportation Committee. The roll was taken and EO 87 passed with a unanimous vote from all committee members. HJR 1: USE OF INITIATIVE TO AMEND CONSTITUTION Number 407 CHAIRMAN VEZEY read the title of HJR 1. He invited comments or questions from the committee and then from public agencies. Number 429 REPRESENTATIVE GAIL PHILLIPS, sponsor of HJR 1, spoke of the need for the legislation. (A summary of her testimony has been included in the committee bill file.) Rep. Phillips requested that HJR 1 be held until the fiscal note was available. Number 458 CHAIRMAN VEZEY asked if HJR 1 would change statutes also. Number 460 REPRESENTATIVE PHILLIPS replied that it would amend the constitution only and not statutes. Number 466 REPRESENTATIVE SANDERS asked if it would require two-thirds of the registered voters who vote. Number 470 REPRESENTATIVE G. DAVIS stated that the constitutional convention question was asked at the last election and the response was not to have one. He asked why this was different. Number 476 REPRESENTATIVE PHILLIPS responded that the question was to not open up the total constitution, yet the people wanted changes, such as term limits. She said it takes a major effort and a drive was difficult to put an initiative on the ballot. Number 492 REPRESENTATIVE G. DAVIS asked if debate should be a concern in the initiative process. Number 501 REPRESENTATIVE PHILLIPS responded that the more the debate the better. Number 505 REPRESENTATIVE SANDERS shared a concern about the newspaper's power of persuasion. Number 509 REPRESENTATIVE PHILLIPS said that it would be a responsibility of the legislature to make sure that they get their side out as well. Number 518 REPRESENTATIVE G. DAVIS asked for clarification of Representative Martin's bills, HJR 8 and HJR 1. Number 539 CHAIRMAN VEZEY stated that public hearings for HJR 1 would be done this month through teleconference. HJR 8: USE OF INITIATIVE TO AMEND CONSTITUTION Number 574 REPRESENTATIVE TERRY MARTIN, sponsor of HJR 8, spoke in support of the initiative process. (The sponsor summary can be found in the committee bill file.) TAPE 93-2, SIDE B Number 000 REPRESENTATIVE MARTIN continued his points on HJR 8. ADJOURNMENT Number 088 CHAIRMAN VEZEY adjourned the meeting at 10:42 a.m.