Legislature(1999 - 2000)
04/30/1999 02:00 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
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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