Legislature(1999 - 2000)
04/17/2000 06:21 PM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 418(RLS)
"An Act designating certain receipts as program
receipts, appropriations of which are not made from
the unrestricted general fund; relating to the
establishment of an administrative cost charge for the
state's role in the community development quota
program; and providing for an effective date."
This was the first hearing for this bill in the Senate
Finance Committee.
Co-Chair Torgerson directed member's attention to a
proposed committee substitute, SCS CS HB 418, 1-LS1500\V.
He noted that the language on page two of this committee
substitute, relating to use of program receipts, is new. He
added that a proposed amendment makes technical corrections
and adds more programs to the list.
REPRESENTATIVE NORM ROKEBERG, Chair, House Labor and
Commerce Committee, testified to the bill. He stated that
the bill is a result of his and other members of the House
committee's frustrations with occupational licensing. He
explained that many of the state's licensing boards and
commissions want broader authority. However, he said the
finance committees of both houses prohibit this because of
the impact of any increase in activities of these boards
and commissions would have on the state's fiscal gap. This
he shared is because increased costs would have to be paid
for from the general fund.
Representative Rokeberg gave an example of the Board of
Nursing that received a $150,000 federal grant to establish
an outreach program for children. This grant expired, he
said because the state was unable to provide additional
necessary funds.
Representative Rokeberg gave another example of the members
of the Board of Architects who wish to participate in
committees on the national level. However, he said that
because of the inability for the board to raise its fees,
the board is unable to secure funds for travel costs.
Representative Rokeberg stressed that the legislature's
attempts to reduce general fund spending should not reflect
on the boards and commissions and those professional
licensees that operate in the state. He asserted that the
boards and commissions must be self-supported by the
licensing fees. Therefore, he said, they need the ability
to increase the fees as necessary.
Representative Rokeberg noted the House Finance Committee
added provisions to the bill to include the Alaska Seafood
Marketing Institute (ASMI), the dive fishery and Department
of Community and Economic Development programs. He stated
he supported these additions.
Representative Rokeberg pointed out that this bill passed
through the House of Representatives with no objection.
Representative Rokeberg assured that fee support services
(FSS) are not removed from the budget, but just relocated
to another category.
Senator P. Kelly moved to adopt SCS CS HB 418, 1-LS1500\V
as a workdraft.
There was no objection and the committee substitute was
ADOPTED.
Amendment #1: This amendment inserts "receipts of" on page
2, lines 6 and 19 of the committee substitute. The amended
language reads as follows.
"(DD) receipts of the Alaska Vocational
Technical Center;
.
(KK) receipts of the Alaska Police Standards
Council;"
The amendment also adds two subsections to Section 1.
"(QQ) receipts of the Department of
Corrections from the inmate telephone system;
(RR) receipts of the Department of Public
Safety from the Alaska automated fingerprint
system under AS 44.41.025(b);"
Co-Chair Parnell moved for adoption.
Co-Chair Torgerson explained the first two changes are
technical and proposed at the recommendation of the
Division of Legislative Finance.
Without objection the amendment was ADOPTED.
Senator Phillips asked if the Division of Lands program
receipts were considered for inclusion on this list.
Co-Chair Torgerson responded that program was addressed in
SB 283. He noted the proposed Amendments #2 and #3 were
addressed in other legislation.
Co-Chair Torgerson stressed that this committee substitute
has nothing to do with the Majority's goal to reduce $30
million in general fund spending and is just a fund source
change. He assured that this is not a "smoke and mirrors
change".
Senator Phillips asked if a representative from Department
of Transportation and Public Facilities was present to tell
him if any highway facilities other than the soon to be
completed, Whittier tunnel charge tolls.
Co-Chair Torgerson replied that the Whittier Tunnel is the
only toll-operated facility in the state and that this
passage is expected to be self-sustained.
[Note: The following amendment was considered out of
numerical order.]
Amendment #4: This amendment deletes the language on page 1
lines 9-11. The language reads as follows.
"(Y) receipts from the seafood marketing
assessment under AS 16.51.120 - 16.51.170, the salmon
marketing tax under AS 43.76.110 - 43.76.130, and
other receipts of the Alaska Seafood Marketing
Institute;"
Senator Donley moved for adoption and expressed concern
about Outside interests governing ASMI that have not been
sufficiently responsive or forthcoming with the
legislature. He wanted the legislature to maintain scrutiny
over this board's operations especially because so much of
the board's activities occur out of state.
Co-Chair Torgerson pointed out that each of the boards and
commissions are subject to annual appropriation and
therefore, the appropriation process is not circumvented by
this legislation.
Senator Leman objected to the amendment, saying ASMI is
fully supported by a tax that the fishermen agreed upon for
the purpose of marketing their product. He stressed that
whether or not the legislature is convinced the board's
actions are entirely appropriate, is a matter that should
be addressed separately.
Co-Chair Torgerson added that he has seen ASMI's budget
jump from $3 million to $10 million, but noted this is due
primarily to federal funds. He said he also opposes the
amendment.
Senator P. Kelly expressed that he did not think the
legislature could force ASMI to be any more responsive by
removing it from this legislation. The only result, he said
is the state is "still punished by their success" since the
legislature is faced with increased general fund spending
to support the board's growth.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Phillips and Senator
Donley
OPPOSED: Senator Adams, Senator Wilken, Senator P. Kelly,
Senator Leman, Co-Chair Parnell and Co-Chair Torgerson
The motion FAILED (3-6)
The amendment FAILED to be adopted.
Amendment #2: This amendment inserts a new subsection to
Section 1 of the House Rules committee substitute as
follows.
"(BB) receipts of the Department of Public
Safety under AS 44.41.025(b);"
This amendment was NOT OFFERED since the changes were
contained in the committee substitute.
Amendment #3: This amendment inserts a new subsection to
Section 4 of the House Rules committee substitute as
follows.
(f) The department shall not assess nor collect
administrative charges under this section from new CDQ
groups, representing communities not eligible for the
CDQ program as of the effective date of this Act, for
a period of two years from the actual award of fishery
quota to that newly formed CDQ group."
Senator Adams moved for adoption. Co-Chair Torgerson
objected for an explanation.
Senator Adams stated that this amendment incurs no cost to
the state. He spoke of attempts to establish a CDQ in the
area from Kotzebue to Point Hope, which this amendment
addresses, but that federal approval is still required.
Co-Chair Torgerson asked if this provision was adopted in
earlier Committee action.
Senator Adams replied that he presented the issue but no
action was yet taken.
Representative Rokeberg shared that the House Labor and
Commerce Committee had adopted a similar amendment but the
House Finance Committee removed the language. He thought
the matter has merit and saw no reason to oppose this
amendment.
KEVIN BROOKS, Director, Division of Administrative
Services, Department of Fish and Game stated the department
does not oppose the amendment. [Statement was made out of
the range of the recording equipment.]
JEFF BUSH, Deputy Commissioner, Department of Community and
Economic Development testified that the department's
position on the amendment is neutral. He clarified that the
Department of Community and Economic Development oversees
the CDQ program rather than the Department of Fish and
Game.
There was no objection and the amendment was ADOPTED.
Co-Chair Parnell offered a motion to move from Committee,
SCS CS HB 418, 1-LS1500\V as amended with accompanying zero
fiscal notes from the Department of Revenue and the
Department of Health and Social Services.
AT EASE 8:49 PM / 8:50 PM
Co-Chair Parnell moved to withdraw his motion to report the
bill from Committee.
By unanimous consent, the motion was WITHDRAWN.
Co-Chair Parnell moved to give the Division of Legal and
Research Services technical direction to insert the
appropriate department names to "(QQ)" and "(RR)" as added
to the bill by Amendment #1. [Amendment language shown
above contains these changes.]
There was no objection and the motion was ADOPTED.
Co-Chair Parnell re-offered his motion to move from
Committee, SCS CS HB 418, 1-LS1500\V as amended with
accompanying zero fiscal notes from the Department of
Community and Economic Development, Occupational Licensing
component and ASMI plus new zero fiscal note from the
Department of Fish and Game.
Without objection the bill MOVED from Committee.
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