Legislature(1995 - 1996)
05/06/1996 12:25 PM House 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
SENATE BILL NO. 215
"An Act streamlining the functions of state
government, including authorizing the commissioner
of fish and game to award grants for certain
resource activities; allowing agents selling fish
and game licenses and tags to retain certain
compensation; authorizing the Department of Health
and Social Services to award grants for certain
services for developmentally delayed or disabled
children; relating to rabies control and
administration of flour and bread standards by the
Department of Environmental Conservation;
repealing the Athletic Commission, the regulation
of boxing and wrestling, the certification of
professional geologists, and the Water Resources
Board; repealing certain filing statements and
bonds for enforcement and collection of certain
taxes; and providing for an effective date."
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR noted that there are some
legal concerns regarding portions of the legislation.
Ms. Slagle provided members with a sectional analysis of
CSSB 216 (FIN) am (copy on file). She review the sectional
analysis.
* Sections 1 & 2. Allows school districts to submit
reports for their six year plans for capital
maintenance and construction requirements to the
Department of Education on a biennial basis.
* Section 2. Allows the University of Alaska to
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require employees to deposit paychecks directly
into a bank, savings and loan or credit union.
Processing cuts will be reduced.
* Section 4. Allows the Department of Fish and Game
to award grants for Kenai River drainage projects
specifically appropriated for FY 94 and FY 96.
Without this section the grants would have to be
passed through another state organization with
granting authority.
* Sections 5, 6, and 8. Allows agents of sport
fishing and hunting licenses and tags to retain
the full 5 percent allowed for compensation for
their services. Without these sections money
would be paid to the State and then transferred
back.
* Section 7. Allows agents of sport fishing and
hunting licenses and tags to assign a portion of
their compensation to an in-state nonprofit fish
or game association. This section was added in
the Senate.
* Sections 9 - 13. Allows the Department of
Commerce and Economic Development to collect taxes
on insurance premiums more frequently than on an
annual basis and to be collected electronically.
Representative Parnell asked if this change would effect
insurance companies. Ms. Slagle stated that insurance
industry representatives testified that they could accept
quarterly collection, but did not want collections to be
more frequent.
* Section 14. Reduces the requirements for filing
of credits for certain mining exploration costs.
This would eliminated the annual filing and
certification process and substitute a threshold
of when a credit reaches $250.0 thousand dollars
or the holder is ready to take the credit.
* Section 15. Requires the Alaska Railroad
Corporation to use competitive bidding on
construction contracts over $25.0 thousand
dollars, that the Department of Transportation and
Public Facilities authorizes. This section was
added in the Senate.
* Section 16. Shortens the time limit on payment of
warrants to 1 year. The current statute is for 2
years. This would be consistent with the
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unclaimed property statutes.
* Section 17. Calculates terminal leave payments
based on annualized rate of pay.
* Section 18. Is in conjunction with a repealer in
Section 24 which eliminated the non-resident tax
affidavit tax bond program.
* Sections 19 & 20. Allows the Department of Health
& Social Services granting authority for the
Infant Learning Program.
* Section 21. This section would restrict certain
state corporations to contract for lobbying
activities. This section is a duplication.
* Section 22. Repeals the requirement that the
Department of Environmental Conservation report
and care for animals suspected of rabies and
handle the disposal of rabid animals. Eliminates
the requirement that the Department regulate the
vitamin and mineral content of flour and bread
sold in the State. This requirement is a
duplication of federal regulations. Eliminates
the requirement that employees that have separated
from state government employment and rehired must
repay leave received in cash at the time of
separation.
* Section 23. Eliminates the Athletic Commission,
Boxing and Wrestling Commission. They have not
been active in the past several years. Eliminates
the requirement that professional geologists be
certified by the Department of Commerce and
Economic Development. Eliminates the Water
Resources Board.
* Section 24. Eliminates the calculation required
to transmit remainder of vendor compensation for
issuance of sport fishing and hinging licenses.
Eliminates non-resident affidavit tax bond
program.
* Sections 25 and 26. These sections are
transitional language.
* Section 27. This section deals with the
applicability of warrants issued on or after the
effective date of Section 16.
* Section 28. Restricts the payment of state money
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to entities that are not incorporated under the
laws of the State.
* Sections 29 - 31. These sections implement
effective dates
Representative Brown referred to Section 5. She asked if
there are provisions for auditing of vendors.
KEVIN BROOKS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF FISH AND GAME explained that there is a monthly reporting
system with vendors. He stated that the Department is
comfortable with the shift to a retained fee. He emphasized
that the current system is redundant.
Representative Brown referred to Section 14. She expressed
concern that the certification be contemporaneous with when
the money and records are available. She emphasized that it
would not be sensible to allow records to be collected for
20 years before they are turned in.
CAROL CAROLL, SPECIAL ASSISTANT, DEPARTMENT OF NATURAL
RESOURCES pointed out that CPA certification would be
required when credits reach $250.0 thousand dollars.
Representative Brown noted that credits could be collected
for a number of years. Ms. Caroll reiterated that credits
would be turned in when they reach at least $250.0 thousand
dollars or when production begins. She agreed that the
language could be tightened. She explained that the
Department did not want to require annual certification due
to the amount of additional paperwork. Representative Brown
noted that the credits are direct credits against
obligations owed to the State. She noted that there is no
requirement for the CPA to certify that credits are correct
or that the expenditures actually took place. Ms. Caroll
suggested a three year limit.
Representative Brown referred to Sections 19 and 20.
ELMER LINDSTROM, SPECIAL ASSISTANT, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES explained that these sections will allow the
Department to continue the status quo. He noted that the
addition of federal aid required regulations. The
Department of Law reviewed the regulations and concluded
that the Department of Health & Social Services did not have
sufficient grant making authority.
Representative Therriault provided members with Amendment 1
(copy on file).
KEN BOYD, DIRECTOR, DIVISION OF OIL AND GAS, DEPARTMENT OF
NATURAL RESOURCES discussed Amendment 1. He stressed that
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the amendment should be considered a conceptional amendment.
He explained that Section 17 clarifies under and over
payment of royalties and how they are calculated. Section
18 sets up a period of time during which interest will
accrue on overpayments. He observed royalty payments are
for the preceding month. He noted that there are generally
metering errors. He added that smaller royalty payers base
their payments on the larger royalty payers. If the larger
payer is wrong then the smaller companies are wrong. He
noted that errors are generally cleared up in 60 days. He
stressed that small adjustments are not worth the
administrative overhead. The amendment would allow the
Department to dismiss small over or under payments. The set
interest rate is 11 percent. He maintained that "may"
should be changed to "shall".
Representative Parnell questioned the interest rate.
Representative Therriault noted that the existing statutory
language sets the interest rate.
Amendment 1 was HELD.
Representative Mulder MOVED to report CSSB 215 (FIN) am out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS SB 215 (FIN) am was reported out of Committee with "no
recommendation" and with three fiscal impact notes, one by
the Department of Fish and Game, one by the Department of
Revenue, dated 5/1/96, and one by the Department of Commerce
and Economic Development, dated 1/12/96; and with four zero
fiscal notes, one by the Department of Revenue, dated
5/1/96, one by the Department of Environmental Conservation,
dated 1/12/96, one by the Department of Health & Social
Services, dated 1/12/96, and one by the Department of
Natural Resources, dated 5/1/96.
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