04/14/2000 09:08 AM Senate FIN

     CS FOR HOUSE BILL NO. 361(FIN)                                                                                             
     "An  Act  relating  to   charges  for  state  services;                                                                    
     requiring  that fees  levied by  resource agencies  for                                                                    
     designated regulatory  services be based on  the actual                                                                    
     and reasonable  direct cost of providing  the services,                                                                    
     except  in  the case  of  certain  negotiated or  fixed                                                                    
     fees;  relating   to  negotiated  and  fixed   fees  of                                                                    
     resource agencies; relating  to invoices for designated                                                                    
     regulatory  services; establishing  a petition  process                                                                    
     regarding  fees   charged  by  resource   agencies  for                                                                    
     regulatory  services; and  providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
TWO AT EASES: 9:15 and 9:50 - both for five minutes.                                                                            
                                                                                                                                
DARWIN  PETERSON, Staff,  Senator John  Torgerson, explained                                                                    
the changes  between version  "K" and  the new  version "M",                                                                    
#1-LS1299\M, Kurtz, 4/13/00  of the bill.  On  Page 5, Lines                                                                    
11-18 of  version "K", the  language was deleted  in version                                                                    
"M"; Page  6 of version  "K", subsection "B" was  deleted in                                                                    
version "M".   He added that on Page 6,  subsections "C" and                                                                    
"D" would go  into effect July 1,  2001, however, subsection                                                                    
"A" would go into effect July 1, 2002.                                                                                          
                                                                                                                                
Mr. Peterson continued, Page 8,  subsection 3, Line 14, will                                                                    
not  include travel.    Mr. Peterson  commented  on how  the                                                                    
changes would decrease the fiscal note.                                                                                         
                                                                                                                                
Senator  Adams asked  why license  fee costs  were increased                                                                    
through the legislation.                                                                                                        
                                                                                                                                
KEN FREEMAN,  Director, Resource Development  Council (RDC),                                                                    
Anchorage,  noted  that  the   fiscal  note  incorporates  a                                                                    
permanent invoicing system necessary  for the agency to trim                                                                    
costs.   That would be  a one-time expenditure.   The fiscal                                                                    
note also  provides funding for Department  of Environmental                                                                    
Conservation to  write regulations  in conjunction  with the                                                                    
water  program.    Additionally,  there  will  be  a  slight                                                                    
reduction  in the  amount of  money  collected from  program                                                                    
receipts.                                                                                                                       
                                                                                                                                
Co-Chair  Torgerson asked  if  RDC  supported the  committee                                                                    
substitute.                                                                                                                     
                                                                                                                                
Mr.  Freeman replied  that they  did  support the  committee                                                                    
substitute.     He  interjected  that  the   elimination  of                                                                    
invoicing to the  Office of Management and  Budget (OMB) was                                                                    
a change  that RDC  "could live  with".   He added  that the                                                                    
"delayed implementation" would work  well for the agency, as                                                                    
it  would focus  them to  deal with  only one  program at  a                                                                    
time.                                                                                                                           
                                                                                                                                
Senator Adams MOVED  to adopt the work draft  version "M" as                                                                    
the  document   before  the  Committee.     There  being  NO                                                                    
OBJECTION, it was adopted.                                                                                                      
                                                                                                                                
JANICE  ADAIR,  (Testified  via  Teleconference),  Director,                                                                    
Division    of   Environmental    Health,   Department    of                                                                    
Environmental  Conservation,  Anchorage, offered  to  answer                                                                    
questions of the Committee.                                                                                                     
                                                                                                                                
Senator P.  Kelly MOVED  to report  CS HB  361 (FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying  fiscal notes.   There  being NO  OBJECTION, it                                                                    
was so ordered.                                                                                                                 
                                                                                                                                
CS HB  361 (FIN) was  reported out  of Committee with  a "no                                                                    
recommendation"  and with  a fiscal  note  by Department  of                                                                    
Environmental Conservation.