Legislature(1999 - 2000)

04/30/1999 02:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HOUSE BILL NO. 40                                                                                                               
                                                                                                                                
An Act combining parts of the Department of Commerce                                                                            
and Economic Development and parts of the Department of                                                                         
Community and Regional Affairs by transferring some of                                                                          
their duties to a new Department of Commerce and Rural                                                                          
Development; transferring some of the duties of the                                                                             
Department of Commerce and Economic Development and the                                                                         
Department of Community and Regional Affairs to other                                                                           
existing agencies; eliminating the Department of                                                                                
Commerce and Economic Development and the Department of                                                                         
Community and Regional Affairs; relating to the                                                                                 
Department of Commerce and Rural Development and the                                                                            
commissioner of commerce and rural development;                                                                                 
adjusting the membership of certain multi- member                                                                               
bodies to reflect the transfer of duties among                                                                                  
departments and the elimination of departments;                                                                                 
creating the office of international trade and relating                                                                         
to its duties; and providing for an effective date.                                                                             
                                                                                                                                
JACK KREINHEDER, SENIOR POLICY ANALYST, OFFICE OF BUDGET AND                                                                    
MANAGEMENT, offered to answer questions on the technical                                                                        
placement of verbiage.  In response to Representative                                                                           
Austerman, Mr. Kreinheder advised that there are no new                                                                         
programs contained in the legislation.  Co-Chair Therriault                                                                     
added that the drafter had been requested to "keep a look                                                                       
out" for anything that appeared to be new.                                                                                      
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #1.  [Copy on                                                                      
File].  He advised that the Department of Education had                                                                         
requested the amendment.                                                                                                        
                                                                                                                                
MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIUALT,                                                                            
explained that Amendment #1 would move all the licensure of                                                                     
child care facilities from Title 47, Chapter 35, the                                                                            
Welfare, Social Services Institution chapter and would place                                                                    
them into Title 14, Chapter 37.  Mr. Tibbles noted that a                                                                       
request was made that an effective date of July 1, 2000 be                                                                      
added, which would provide the Department enough time.  Mr.                                                                     
Tibbles advised that the delayed effective date was not                                                                         
printed in the amendment.                                                                                                       
                                                                                                                                
Representative J. Davies MOVED to AMEND Amendment #1 by                                                                         
adding the effective date, July 1, 2000.                                                                                        
                                                                                                                                
Representative Kohring observed that the proposed change                                                                        
would be consistent with the work done by the Committee.  It                                                                    
was the subcommittee's intent that child care programs go                                                                       
into one department.  There being NO OBEJCTION, the                                                                             
amendment to the amendment was adopted.                                                                                         
                                                                                                                                
There being NO OBJECTION to the adoption of the new                                                                             
Amendment #1, it was adopted as amended.                                                                                        
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #2.  [Copy on                                                                      
File].  Mr. Tibbles explained that the amendment would                                                                          
provide another effective date change on all the provisions                                                                     
that relate to the transfer of the Alaska Human Resource                                                                        
Investment Council from the Office of the Governor to the                                                                       
Department of Labor and Workforce Development.  There being                                                                     
NO OBJECTION, it was adopted.                                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #3.  [Copy on                                                                      
File].  Mr. Tibbles commented that the amendment would                                                                          
provide a technical change from the Project Loan Committee                                                                      
commissioner, which would create a decline in public members                                                                    
from four to three.  The total membership of that Committee                                                                     
will be five.  There being NO OBJECTION, Amendment #3 was                                                                       
adopt.                                                                                                                          
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #4.  [Copy on                                                                      
File].  Mr. Tibbles pointed out that the amendment would be                                                                     
placed in the repealler section of the bill, therefore,                                                                         
deleting the existing statutory reference of the Manpower                                                                       
Training Program.  Mr. Kreinheder agreed that program no                                                                        
longer existed and that the statute was obsolete.  There                                                                        
being NO OBJECTION, Amendment #4 was adopted.                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #5.  [Copy on                                                                      
File].  Mr. Tibbles noted that Amendment #5 states that the                                                                     
Governor shall appoint the executive director of the Alaska                                                                     
Human Resource Investment Council.  Currently, statutes                                                                         
provide that it exist in the Governor's Office.  The bill is                                                                    
proposing to move that to the new Department of Labor &                                                                         
Workforce Development.  Mr. Kreinheder noted that the                                                                           
Administration did support the change.  There being NO                                                                          
OBJECTION, Amendment #5 was adopted.                                                                                            
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #6.  [Copy on                                                                      
File].  Mr. Tibbles explained that the amendment would add                                                                      
another section to the repealler statute thereby deleting                                                                       
the existing statutory reference to that advisory committee.                                                                    
He pointed out that money continues to be collected,                                                                            
however, there are no more loans.  Mr. Kreinheder spoke to                                                                      
the Administration's support of the amendment.  There being                                                                     
NO OBJECTION, it was adopted.                                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #7.  [Copy on                                                                      
File].  Mr. Tibbles advised that the amendment was a request                                                                    
from the Department of Labor.  They asked that the section                                                                      
dealing with the Business Incentive Training Program be                                                                         
moved from Title 23, Chapter 5, to Title 23, Chapter 15.                                                                        
There being NO OBJECTION, Amendment #7 was adopted.                                                                             
                                                                                                                                
Representative Austerman WITHDREW Amendment #8.  [Copy on                                                                       
File].                                                                                                                          
                                                                                                                                
Representative Austerman MOVED to adopt Amendment #9.  [Copy                                                                    
on File].  Co-Chair Therriault OBJECTED for the purpose of                                                                      
discussion.                                                                                                                     
                                                                                                                                
Representative Austerman explained that the amendment would                                                                     
delete material from Page 4, Line 21 through Page 5, Line                                                                       
23, which would remove funding for the child care facility                                                                      
assistance.  He recommended that funding be moved to the                                                                        
Childcare Assistance Program.  Representative J. Davies                                                                         
OBJECTED.  He stated that he would object on two grounds:                                                                       
                                                                                                                                
* The bill intends only to move things around and                                                                               
not make substantive changes.                                                                                                   
* Additionally, the grant program is different than                                                                             
day care assistance and it exists so as to insure                                                                               
that day care programs deliver developmentally                                                                                  
appropriate assistance, education and care of                                                                                   
children.                                                                                                                       
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,                                                                    
OFFICE OF THE GOVERNOR, noted that the Administration                                                                           
strongly objects to making a change of this magnitude.                                                                          
There has been no opportunity for the public to know what is                                                                    
under consideration.  She recommended that this could be                                                                        
discussed next year.  Passage of the amendment would put                                                                        
into jeopardy many facilities and families.                                                                                     
                                                                                                                                
In response to Representative Austerman, Representative J.                                                                      
Davies explained that the program was not used to help the                                                                      
facilities operate but rather it was used to add quality                                                                        
pieces to their operations.  It is based on $50 per month,                                                                      
per child, and must be applied for.  Representative G. Davis                                                                    
voiced concern with the issues and legal aspects which could                                                                    
result from the proposed change.  Representative Kohring                                                                        
suggested that this concern be addressed through next year's                                                                    
budget cycle.                                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:  Austerman, Bunde                                                                                                     
OPPOSED: J. Davies, G. Davis, Foster, Kohring, Moses,                                                                           
Therriault                                                                                                                      
                                                                                                                                
Representatives Williams, Grussendorf, and Mulder were not                                                                      
present for the vote.                                                                                                           
                                                                                                                                
The MOTION FAILED (2-6).                                                                                                        
                                                                                                                                
Co-Chair Therriault explained that his "no" vote should not                                                                     
be indicative that he will not consider elimination to that                                                                     
program in the future.  He noted that having worked with the                                                                    
Administration and the prime sponsor of the bill, the action                                                                    
could overturn the delicate balance currently achieved.                                                                         
                                                                                                                                
Representative J. Davies MOVED to adopt Amendment #10.                                                                          
[Copy on File].  Co-Chair Therriault OBJECTED for the                                                                           
purpose of discussion.                                                                                                          
                                                                                                                                
Representative J. Davies stated that consolidation effort                                                                       
has been the focus on economic development efforts in rural                                                                     
Alaska.  The amendment would add to the commissioner's                                                                          
responsibilities, advising on issues and making                                                                                 
recommendations.  Co-Chair Therriault WITHDREW his OBJECTION                                                                    
to the amendment. There being NO further OBJECTION, it was                                                                      
adopted.                                                                                                                        
                                                                                                                                
Ms. McConnell addressed the anticipated savings through the                                                                     
fiscal note.  She noted that there are several positions                                                                        
which will be eliminated, however, initially, a lot of work                                                                     
will be needed to address serious issues.  Co-Chair                                                                             
Therriault advised that fiscal notes would be ready for the                                                                     
Committee's preview at a forthcoming meeting.                                                                                   
                                                                                                                                
HB 40 was HELD in Committee for further consideration.                                                                          

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