HOUSE STATE AFFAIRS STANDING COMMITTEE February 16, 1993 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chairman Representative Pete Kott, Vice Chairman Representative Harley Olberg Representative Gary Davis Representative Fran Ulmer Representative Bettye Davis Representative Jerry Sanders MEMBERS ABSENT None COMMITTEE CALENDAR *SCR 1: Relating to the twenty-seventh annual Boys' State. MOVED OUT OF COMMITTEE WITH A DO PASS RECOMMENDATION *HB 110: "An Act setting termination dates for various boards, commissions, councils, agencies, committees, and divisions of state government; repealing obsolete statutes relating to the State Fire Commission and the Board of Electrical Examiners; repealing obsolete statutes relating to termination of agency programs and activities; increasing to 10 years the normal maximum interval for review of boards, commissions, and other entities that are subject to sunset reviews; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION (* first public hearing) WITNESS REGISTER Randy Welker Legislative Auditor Legislative Audit Division P.O. Box 113300 Juneau, AK 99811-3300 465-3830 Position Statement: Discussed sunset provisions with regard to HB 110 Kristie Leaf, Deputy Director Boards & Commissions Office of the Governor P.O. Box 110001 Juneau, AK 99811-0001 465-3500 Position Statement: Discussed extension of licensing boards with regard to HB 110 Karl Luck, Director Division of Occupational Licensing Department of Commerce & Economic Development P.O. Box 110806 Juneau, AK 99811-0806 465-2638 Position Statement: Discussed licensing as related to HB 110 PREVIOUS ACTION BILL: SCR 1 SHORT TITLE: TWENTY-SEVENTH ANNUAL BOYS' STATE BILL VERSION: SPONSOR(S): SENATOR(S) LEMAN,Phillips,Kerttula,Rieger,Pearce,Duncan,Taylor,Miller, Salo,Sharp,Zharoff,Donley,Frank,Kelly,Lincoln,Ellis; REPRESENTATIVE(S) Phillips,Therriault,Willis,Navarre,Ulmer, TITLE: Relating to the twenty-seventh annual Boys' State. JRN-DATE JRN-PG ACTION 01/22/93 118 (S) READ THE FIRST TIME/REFERRAL(S) 01/22/93 118 (S) STATE AFFAIRS 02/03/93 219 (S) STA RPT 4DP 02/03/93 219 (S) ZERO FISCAL NOTE (S.STA) 02/03/93 (S) STA AT 09:00 AM BUTROVICH ROOM 205 02/03/93 (S) MINUTE(STA) 02/04/93 (S) RLS AT 11:00 AM FAHRENKAMP ROOM 203 02/04/93 (S) MINUTE(RLS) 02/08/93 283 (S) RULES TO CALENDAR 2/8/93 02/08/93 284 (S) READ THE SECOND TIME 02/08/93 284 (S) COSPONSOR(S): KERTTULA, RIEGER, PEARCE, 02/08/93 284 (S) DUNCAN, TAYLOR, MILLER, SALO, SHARP, 02/08/93 284 (S) ZHAROFF, DONLEY, FRANK, KELLY, 02/08/93 284 (S) LINCOLN, ELLIS 02/08/93 285 (S) PASSED Y18 N- A2 02/08/93 290 (S) TRANSMITTED TO (H) 02/10/93 281 (H) READ THE FIRST TIME/REFERRAL(S) 02/10/93 281 (H) STATE AFFAIRS 02/10/93 313 (H) CROSS SPONSOR(S): G.PHILLIPS, THERRIAULT 02/10/93 313 (H) CROSS SPONSOR(S): WILLIS, NAVARRE, ULMER 02/16/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 110 SHORT TITLE: BOARDS/COMMISSIONS/COUNCILS/AUTHORITIES BILL VERSION: SPONSOR(S): RULES BY REQUEST OF BUDGET AND AUDIT TITLE: "An Act setting termination dates for various boards, commissions, councils, agencies, committees, and divisions of state government; repealing obsolete statutes relating to the State Fire Commission and the Board of Electrical Examiners; repealing obsolete statutes relating to termination of agency programs and activities; increasing to 10 years the normal maximum interval for review of boards, commissions, and other entities that are subject to sunset reviews; and providing for an effective date." JRN-DATE JRN-PG ACTION 02/01/93 198 (H) READ THE FIRST TIME/REFERRAL(S) 02/01/93 198 (H) STATE AFFAIRS, LABOR & COMMERCE, FINANCE 02/16/93 (H) STA AT 08:00 AM CAPITOL 102 ACTION NARRATIVE TAPE 93-19, SIDE A Number 000 The House State Affairs Committee was called to order at 8:00 a.m. on Tuesday, February 16, 1993, by Chairman Vezey and he noted a quorum was present. SCR 1: TWENTY-SEVENTH ANNUAL BOYS' STATE CHAIRMAN AL VEZEY read the title of SCR 1 and asked if there were any comments, testimony or questions. Hearing none, he made a MOTION to pass SCR 1 with individual recommendations. Six members signed do pass. Representative Bettye Davis was absent at that time and did not vote. HB 110: BOARDS/COMMISSIONS/COUNCILS/AUTHORITIES Number 045 RANDY WELKER, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT DIVISION, discussed the sunset provisions and laws with the change to Alaska's law from four to ten years. Other states reviewed their boards and commissions every eight to thirteen years, he noted. Number 106 CHAIRMAN VEZEY discussed the termination of boards and commissions and agency programs with Mr. Welker. Number 202 MR. WELKER spoke on the provisions in AS 44.66.050 regarding sunsets of boards and commissions. Number 230 CHAIRMAN VEZEY discussed AS 44.66.050 in regards to the sunset law. He stated concerns with the steps needed to be performed and the failure to follow them. Number 242 MR. WELKER discussed AS 44.66.050 as it related to exemptions. Number 256 CHAIRMAN VEZEY asked about boards that would be eliminated by HB 110. Number 260 MR. WELKER said the purpose of HB 110 was not to eliminate boards or commissions but to clean up statutes. Number 270 CHAIRMAN VEZEY asked if AS 44.66.050 gave the legislature more authority or if it defined legislative authority. Number 274 MR. WELKER explained HB 110 simply defined what to expect in the sunset process. Number 281 CHAIRMAN VEZEY asked if there were further questions from the committee for Mr. Welker. He said HB 111 was similar to HB 110 with regard to the sunset of 13 or 14 boards. Number 298 KRISTIE LEAF, DEPUTY DIRECTOR OF BOARDS AND COMMISSIONS, OFFICE OF THE GOVERNOR, discussed the extension of licensing boards. Reference was made to sections 2 and 5 of HB 110, which changed the sunset program from four to ten years. The Governor's office did not support changing the review length, and believed four years were better than ten. She suggested the audits be done in the last year. Number 356 REPRESENTATIVE GARY DAVIS did not support a 10 year cycle. He asked if the purpose of changing terms was to simplify the process and amount of activity it took to review every four years. Number 366 MS. LEAF said the Governor was not proposing any legislation to change the four year cycle. Number 376 REPRESENTATIVE ULMER referenced the Audit Report of October 30, 1992, on boards and commissions which was included in the committee members packets. Page 11, paragraph 2 of that report stated the average for a review was eight years. Due to the work and cost involved, it would be more efficient to change, she believed. By having the terms staggered, less auditors would be needed to do the review, she said. Number 398 MS. LEAF discussed research comparing review terms of other states. Alaska had less boards because many were merged together, she alleged. Number 423 REPRESENTATIVE OLBERG stated reviews could be done at any time, and the legislature could eliminate Boards and Commissions whenever it chose to do so. Number 432 MS. LEAF said there were 150 boards in the state, 40 of which fell under the sunset. Many exist yet were not funded, she noted. The legislature could call for a review at any time but that was not something that had been used. The sunset process brought the board to the legislature's attention so that a conscious decision to keep it had to be made. Number 458 CHAIRMAN VEZEY said it was positive to confirm instead of bringing up a board due to dissatisfaction. HB 111: BOARDS/COMMISSIONS/COUNCILS/AUTHORITIES Number 465 REPRESENTATIVE ULMER asked about the elimination of boards in HB 111. MS. LEAF said HB 111 had been recommended by the governors' task force. Number 475 REPRESENTATIVE ULMER requested a list of those not active on page 13 of the Audit Report of October 30, 1992, compared with those in HB 111. Number 485 KARL LUCK, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING, DEPARTMENT OF COMMERCE & ECONOMIC DEVELOPMENT (DCED), said HB 110 would not have a large impact on the DCED. He discussed the Board of Electrical Examiners, which was allowed to sunset. This caused a chaos in the industry, and the DCED was unable to renew licenses, he disclosed. Number 525 CHAIRMAN VEZEY said the Department of Labor (DOL) and the DCED took no action, but instead, allowed the board to sunset. He also said there was an attorney general's opinion. Number 533 MR. LUCK said the licensing function was not transferred so no licensing function was able to take place. Number 548 REPRESENTATIVE G. DAVIS asked about legislation regarding examiners by the DOL. Number 554 MR. LUCK said there was a differing of opinion regarding whether licensing duties should reside in the DCED's Division of Occupational Licensing or the DOL. The use of electrical administrators as inspectors was debatable because if they were owners of electrical companies they would have to inspect themselves, he noted. Number 579 CHAIRMAN VEZEY asked for clarification regarding the legal authority of the DOL for inspection. Number 589 MR. LUCK said the DOL had authority to hire an individual to inspect and to charge a fee for the inspection, as well as authority to license electrical administrators. The DOL might also file a complaint against an electrical administrator's license. Reference was made to AS 08.40.175. This section would not be repealed, he said. ADJOURNMENT Number 621 CHAIRMAN VEZEY asked Mr. Luck for a position paper from the DOL on HB 110. He said the House State Affairs' committee aide would cross reference HB 111 with HB 110 and report back to the committee. He then adjourned the meeting at 8:43 a.m.