Legislature(1993 - 1994)
03/27/1993 10:00 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 24, 1993
8:30 a.m.
TAPE HFC 93 - 56, Side 1, #000 - end.
TAPE HFC 93 - 56, Side 2, #000 - #481.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Brown was not present for the meeting.
ALSO PRESENT
Deborah Wing, Director, Family and Youth Services,
Department of Health and Social Services; John Peterson, Aid
to Representative Gail Phillips; Gary Bader, Director,
Administrative Services, Department of Education; Bruce
Garrett, Kodiak, Alaska; Laura Fleming, Aid to
Representative Bill Williams; Kate Tesar, Association of
Independent Tour Operators, Juneau, Alaska; Irene Morris,
Alaska Environmental Lobby, Juneau, Alaska; Romaine Careen,
People Safety Coordinator, Department of Education; Geron
Bruce, Special Assistant, Department of Fish and Game.
SUMMARY INFORMATION
HB 2 An Act requiring drug and alcohol tests for school
bus drivers.
CS HB 2 (FIN) was reported out of Committee with
"no recommendation" with a Letter of Intent by the
House Judiciary Committee and with a new fiscal
note by the Department of Education.
HB 97 An Act clarifying the responsibilities of the
Department of Health and Social Services and
parents for children who are committed to the
custody of the department and are placed by the
department with the parents; and providing for an
1
effective date.
HB 97 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Health and Social Services.
HB 172 An Act relating to the wildlife conservation tag
and to entry onto state game and wildlife
sanctuaries, state game refuges, state range
areas, and fish and game critical habitat areas;
and providing for an effective date.
HB 172 was held in Committee for further
discussion.
HOUSE BILL 97
"An Act clarifying the responsibilities of the
Department of Health and Social Services and parents
for children who are committed to the custody of the
department and are placed by the department with the
parents; and providing for an effective date."
DEBORAH WING, DIRECTOR, FAMILY AND YOUTH SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the
Department of Health and Social Services strongly supports
HB 97, which clarifies the responsibilities of the
Department for children committed to its legal custody and
who continue to reside with the parent or parents. The bill
amends AS 47.10.084 to require a parent or parents to
provide for the day to day care of their children if these
children are residing with them when the State has legal
custody as a result of child protection services.
Representative Parnell inquired if medical care would
include the cost of counseling. Ms. Winger stated it would.
Representative Martin discussed medical care costs of foster
children. Ms. Wing noted that children in foster care would
continue to remain a responsibility of the State.
Representative Parnell inquired if parents would be asked to
pay for counseling services of abused children. Ms. Wing
noted, that if the child is qualified under Medicaid, the
parents are able to utilize that resource.
Representative Martin MOVED to report HB 97 out of Committee
with individual recommendations and with the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
HB 97 was reported out of Committee with a "do pass"
2
recommendation and with a zero fiscal note by the Department
of Health and Social Services.
HOUSE BILL 2
"An Act requiring drug and alcohol tests for school bus
drivers."
JOHN PETERSON, AID TO REPRESENTATIVE GAIL PHILLIPS, noted
that current Alaska law makes no provision for the routine
testing of school bus drivers for drug and alcohol use.
This bill would provide for such testing. The federal
government is in the process of preparing regulations that
will mandate testing for those who are required to have
commercial drivers licenses for the operation of school
buses. HB 2 is needed at this time as the effective date of
the federal regulations is uncertain. The federal
regulations will not apply to school buses with fewer that
fifteen passengers, which does not require a commercial
license for operation.
Representative Grussendorf requested testimony from the
Department of Law regarding the legal definition of
"improper" use of drugs and alcohol. Representative Parnell
questioned the constitutionality of mandating random
testing. Mr. Peterson pointed out previous concerns
regarding privacy was addressed in the House Judiciary
Committee Letter of Intent.
Representative Foster asked how the legislation's cost would
be handled for the small village areas.
GARY BADER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION, responded that the cost is
determined by a statewide average. Most of the services
would be contracted out. He added that the testing is
legitimate for the safety of students.
ROMAINE CAREEN, PEOPLE SAFETY TRANSFORATION COORDINATOR,
DEPARTMENT OF EDUCATION, noted there is a company in
Anchorage which performs most of the state's testing, and
added that drug testing is required by the federal
government. Representative Parnell questioned if the
federal regulations mandated the proposed testing.
Representative Hoffman recommended that the legislation
clarify the coverage of costs for this testing.
BRUCE GARRETT, KODIAK SCHOOL DISTRICT, KODIAK, ALASKA,
stated that under federal law, the school district must be a
"drug-free" work place. He voiced his concern with who
would have the burden of paying the costs for testing. Mr.
Garrett noted that testing would show any drugs or alcohol
3
in the persons system taken within a 72-hour period.
Representative Hoffman felt that the testing would be a
violation of the privacy act. Discussion followed regarding
an employee who consumes on their "off" hours.
Representative Parnell pointed out that the "drug free" zone
was created by federal law.
Co-Chair MacLean MOVED to report HB 2 out of Committee with
individual recommendations and the new Department of
Education fiscal note. Representative Parnell OBJECTED in
order to make an amendment. He MOVED deleting the word
"improper" from Page 1, Line 7 and Line 8.
(Tape Change, HFC 93-56, Side 2).
Representative Hanley recommended adding "illegal" on Page
1, Line 8 and deleting the word "improper". Representative
Parnell WITHDREW his motion to delete "improper" and MOVED
to delete the word "improper" on Line 7 and on Line 8 delete
"improper" and replace with "illegal". There being NO
OBJECTION, it was so ordered.
Representative Hoffman offered a technical amendment which
would explain that the Department of Education would be
responsible for payments of all testing. Mr. Bader pointed
out that it was the intent of the Department to pay for the
testing. Representative Hoffman asked for approval of the
conceptual amendment which would legally clarify that
information. Representative Martin noted that the fiscal
note states that the money is allocated to the Department of
Education for specifically paying for testing.
Representative Hoffman objected and asked that detailed
clarification be contained in the bill. Representative
Foster OBJECTED to moving the bill from Committee.
A roll call was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
MacLean, Larson.
OPPOSED: Hoffman, Navarre, Foster.
Representative Brown and Representative Grussendorf were not
present for the vote.
The MOTION PASSED, (6 - 3).
CS HB 2 (FIN) was reported out of Committee with "no
recommendation" and with a House Judiciary Committee Letter
of Intent and a fiscal note by the Department of Education.
4
HOUSE BILL 172
"An Act relating to the wildlife conservation tag and
to entry onto state game and wildlife sanctuaries,
state game refuges, state range areas, and fish and
game critical habitat areas; and providing for an
effective date."
LAURA FLEMING, AID FOR REPRESENTATIVE BILL WILLIAMS, stated
that HB 172 would create a wildlife conservation tag program
aimed at encouraging non-consumptive users of Alaska's
wildlife to help pay for wildlife programs and facilities
they use.
Wildlife viewing is a fast-growing form of recreation in the
world, and a major factor in attracting visitors to Alaska.
Careful management and development of viewing areas is
important to protect the wildlife while enhancing visitor
opportunities. The bill is a "user pays" approach to
generating funds to support this growing area of wildlife
use.
The primary thrust of HB 172 is a voluntary program.
Participants would pay a fairly small price for the tag.
The price of the tag is left to the Department but will be
kept low since the goal is to sell large numbers of the tags
to those who voluntarily purchase them.
Ms. Fleming explained the amendments submitted by
Representative Williams which will make three small
technical changes to CS HB 172 (RES) version.
Co-Chair MacLean presented her concerns with the legislation
and the limitations created in the McNeil River area which
she felt would restrict individual freedom to explore
certain parts of that area.
GERON BRUCE, SPECIAL ASSISTANT, DEPARTMENT OF FISH AND GAME,
noted the legislation would not restrict people from going
into areas to pursue exempted activities. He added that
McNeil is a small area sanctuary which is exclusively a
brown bear viewing area. This area can be used by permit
only and is already existing in law. The function of the
permit system is to protect the intrinsic quality of the
environment for the animals of those areas and for those who
come to view the animals.
Co-Chair MacLean voiced her concern with the potential
expansion of areas added to the conservation tag entry
system. Mr. Bruce advised that the Department will be
working closely with tourism, the visitor industry and the
5
public.
KATE TESAR, ASSOCIATION OF INDEPENDENT TOUR OPERATORS,
JUNEAU, ALASKA, noted support of the legislation. She
stated that her group has been assured by the Department of
Fish and Game that the tourism industry will be included in
changes in the current regulations. There will be no
arbitrary designation of tagged areas without good reason.
She spoke of the profit which could be generated from the
pins.
IRENE MORRIS, ALASKA ENVIRONMENTAL LOBBY (AEL), JUNEAU,
ALASKA, spoke in support of HB 172. She recommended that
non consumptive users pay a portion of the management costs
for specified areas.
Representative Foster interjected his many concerns with the
proposed legislation. He felt HB 172 would be detrimental
to Western and Arctic Alaska. Mr. Bruce noted that the
Department would be willing to substitute language which
would help clarify the legislation. The legislation is not
directed at establishing additional fees for subsistence
users, but rather allowing users to contribute to programs.
Representative Hanley recommended limiting the law to the
two designated areas. If additional areas should be added,
then the Legislature would determine if they would be
advantageous.
Co-Chair Larson advised that the legislation should be
returned to Subcommittee for further considerations. The
bill was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 9:45 a.m.
HOUSE FINANCE COMMITTEE
MARCH 27, 1993
10:00 A.M.
TAPE HFC 93 - 70, Side 1, #000 - end.
TAPE HFC 93 - 70, Side 2, #000 - end.
TAPE HFC 93 - 71, Side 1, #000 - #123.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 10:00 A.M.
PRESENT
6
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Representative Gail Phillips; Representative Jim Nordlund;
Representative Tom Brice; Ron Garzini, Executive Director,
Alaska Energy Authority (AEA, Department of Commerce and
Economic Development; Glona Manni, Director, Accounting and
Administration, Alaska Energy Authority, Department of
Commerce and Economic Development; Jan Hansen, Director,
Division of Public Assistance, Department of Health and
Social Services.
SUMMARY INFORMATION
HB 67 An Act relating to eligibility for and payments of
public assistance; and providing for an effective
date.
CS HB 67 (FIN) was reported out of Committee with
"individual recommendations" and with fiscal notes
by the Department of Health and Social Services,
three from AFDC Division, three from the APA
Division, and three from PFD Hold Harmless and the
Medicaid Non-Facilities.
HB 126 An Act relating to payment of prevailing wage
rates on public construction projects.
HB 126 was reported out of Committee with a "do
pass" recommendation and with two zero fiscal
notes by the Department of Transportation and
Public Facilities dated 3/12/93 and the Department
of Labor dated 3/12/93.
HB 216 An Act relating to power cost equalization; and
providing for an effective date.
HB 216 was held in Committee for further
discussion.
HOUSE BILL 126
An Act relating to payment of prevailing wage rates on
public construction projects.
7
REPRESENTATIVE GAIL PHILLIPS said current law provides that
a construction contractor or subcontractor who performs work
on public construction in the State shall pay not less than
the current prevailing wage for work of a similar nature.
However, an increase in the prevailing wage in the middle of
a contract creates a financial hardship on the contractor;
and anticipation of interim increases may also serve to
inflate the cost of construction projects because the
contractor or subcontractor must absorb the costs of any
wage rate change.
The prevailing rate of wages is determined by the Department
of Labor based on a periodic survey of public and private
commercial heavy and highway construction projects in the
State. If the union rate is prevailed from the survey
results, interim wage and benefit increases are currently
prevailed.
Representative Phillips stated that HB 126 was introduced to
amend AS 36.05.010 so that the prevailing wage as determined
by the Department of Labor will no longer apply immediately
to contracts in progress. The wage in effect at least ten
days before final bid submission will remain in effect for
24 months from the date the contract is awarded. Wages will
remain the same for the life of most construction projects.
In the case of contracts that are longer than 24 months, the
bill provides for stable wages for a subsequent 24 month
period, and so forth for the life of the contract.
Representative Parnell MOVED to report SS HB 126 out of
Committee with individual recommendations and with the
accompanying two zero fiscal notes. There being NO
OBJECTION, it was so ordered.
SS HB 126 was reported out of Committee with a "do pass"
recommendation and with zero fiscal notes by the Department
of Transportation and Public Facilities dated 3/12/93 and
the Department of Labor dated 3/12/93
HOUSE BILL 67
"An Act relating to eligibility for and payments of
public assistance; and providing for an effective
date."
JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, explained that HB 67 (HESS)
would amend the Governor's welfare reduction bill by
permanently repealing the authority to automatically award
cost-of-living allowances (COLA's) in benefits paid under
the Aid to Families with Dependent Children (AFDC) and Adult
Public Assistance (APA) programs. The Governor's bill
8
proposed a one-year suspension of the COLA's and would have
denied the three percent COLA's expected to be awarded in
January 1994 while retaining the authority to award COLA's
in future years.
She added, the Governor's bill has the dual goals of
producing immediate savings in program costs and curbing the
rate of increase in the welfare caseload. Suspending rather
than repealing the COLA's was a strategy calculated to
achieve the necessary savings in program costs while
maintaining the protection against rising living costs
afforded by the statutory COLA provision. CS HB 67 (HESS)
removes the protection. The benefit reductions imposed by
the Governor's bill are substantial. The Department of
Health and Social Services does not support the assistance
reductions which would result from the permanent repeal of
the AFDC and APA COLA's.
Representative Hoffman noted that the cost-of-living and the
earning power in Alaska is higher than all the other states.
His comments preceded a discussion regarding the high ratio
of payments distributed to Alaskans on public assistance and
welfare. Ms. Hansen stated that the poverty level in Alaska
is twenty-five percent higher than the federally established
poverty level guideline.
Representative Brown MOVED Amendments #1 - #4 [Attachment #1
- #4]. She proceeded to withdraw Amendment #3 and #4. She
added Amendments #1 and #2 would restore the proposed
legislation to the Governor's recommended level of funding.
The Amendment [Attachment #2] would not change the reduction
level and would continue to have the three year roll-back
for the Adult Public Assistance and a two year roll-back for
AFDC. Co-Chair Larson asked how many states currently have
a COLA. Ms. Hansen stated that Alaska was the only state
with an automatic COLA. Representative Parnell OBJECTED to
Amendment #1.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, Brown,
MacLean, Navarre.
OPPOSED: Therriault, Hanley, Martin, Parnell,
Larson.
The MOTION PASSED, ( 6 - 5).
Representative Brown MOVED Amendment #2 [Attachment #3].
She explained that the amendment would make a less severe
reduction to the level of the FY 92 roll-back.
Representative Hoffman indicated his support of the
9
amendment explaining that energy, food and rent costs in
Alaska are more expensive. Representative Martin OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman,
MacLean, Navarre.
OPPOSED: Therriault, Hanley, Martin, Parnell,
Larson.
The MOTION PASSED, (6 - 5).
(Tape Change, HFC 93-70, Side 2).
Representative Navarre MOVED to report CS HB 67 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. Representative Hoffman OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hanley, Martin,
Navarre, Parnell, Therriault, MacLean.
OPPOSED: Larson, Brown, Hoffman.
The MOTION PASSED (8 - 3).
CS HB 67 (FIN) was reported out of Committee with
"individual recommendations" and with fiscal notes by the
Department of Health and Social Services, three from AFDC
Division, three from the APA Division, PFD Hold Harmless and
the Medicaid Non-Facilities.
HOUSE BILL 216
"An Act relating to power cost equalization; and
providing for an effective date."
Co-Chair Larson noted that HB 216 was sponsored by the House
Finance Committee. The legislation would affect Power Cost
Equalization, a formula program reducing the consumers cost
of electricity generated and sold by eligible utilities in
rural Alaska.
RAY GARZINI, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, stated that
the Alaska Energy Authority (AEA) does support the approach
taken in HB 216. He referenced SB 124 and explained the
differences between the two pieces of legislation. Mr.
Garzini advised that the cost savings due to the removal of
state and federal facilities from the program would be $1
10
million dollars. The schools continued cost for
participation in the program would be about $570 thousand
dollars.
Based on the FY 91 PCE program statistics report issued in
December, 1992, the average monthly consumption of
residential and commercial customers eligible for PCE is 374
kwh per month. Community facilities are excluded from the
computation.
Co-Chair MacLean felt that APUC should decide the kilowatt
hour average, not AEA. She stated her concern with the cost
of the fiscal note. She pointed out historically fiscal
concerns have been funded at eighty percent. Mr. Garzini
stated that the legislation could accommodate the budget
level.
Discussion followed regarding the funding request level in
the proposed legislation. Mr. Garzini stated last year
because of the funding cut, AEA and PCE had a difficult time
determining the cost allocations. A program did not exist
from which to allocate the reductions. Consequently,
attention was focused on the residential customers and
reductions to the benefit of the commercial customers users.
Co-Chair Larson understood that PCE's function was to
balance the electrical cost to consumers between the urban
and the rural consumption. His concern was the system used
in determining the 750 kilowatt hour average usage cost in
Anchorage, Fairbanks and Juneau. Mr. Garzini responded, the
average monthly residential consumption residential kilowatt
use was 367 kwh/hrs. Co-Chair Larson thought that it was
placed artificially high to encourage consumption. Mr.
Garzini noted the 750 kwh/hrs per month originated in the
urban areas.
Representative Parnell questioned if cost savings could come
from accepting federal facilities to the program. Mr.
Garzini replied they currently include federal and state
facilities and schools, amounting to $1 million dollars.
Co-Chair MacLean offered a "friendly amendment" to Page 2,
Line 9, deleting the language "rate of change in fuel cost
and power demand" and inserting "average cost of kilowatt
hour in Anchorage, Juneau and Fairbanks". She pointed out
that APUC should be the authority addressing the
legislation. Mr. Garzini agreed that APUC should have the
final say on such matters, since APUC is a reviewing agency.
He recommended that AEA prepare the rates and then APUC
review it.
11
Representative Brown noted for the record that her husband
is one of the APUC Commissioners. She pointed out that APUC
reviews regulated utilities which have a monopoly, to assure
that the monopolies are not over charging people for
services and costs. Mr. Garzini elaborated, there are
currently one hundred thirty utilities which are not
regulated. He reiterated that the operational and
administrative procedures of the program should be handled
by AEA.
(Tape Change, HFC 93-71, Side 1).
Representative Brown asked the average cost per kilowatt
hour for residential and commercial uses in Juneau,
Anchorage and Fairbanks. She pointed out that the
comparisons are currently based on non-compatible
information.
HB 216 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 11:55 a.m.
HOUSE FINANCE COMMITTEE
March 24, 1993
8:30 a.m.
TAPE HFC 93 - 56, Side 1, #000 - end.
TAPE HFC 93 - 56, Side 2, #000 - #481.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Therriault
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Brown was not present for the meeting.
ALSO PRESENT
Deborah Wing, Director, Family and Youth Services,
Department of Health and Social Services; John Peterson, Aid
to Representative Gail Phillips; Gary Bader, Director,
Administrative Services, Department of Education; Bruce
12
Garrett, Kodiak, Alaska; Laura Fleming, Aid to
Representative Bill Williams; Kate Tesar, Association of
Independent Tour Operators, Juneau, Alaska; Irene Morris,
Alaska Environmental Lobby, Juneau, Alaska; Romaine Careen,
People Safety Coordinator, Department of Education; Geron
Bruce, Special Assistant, Department of Fish and Game.
SUMMARY INFORMATION
HB 2 An Act requiring drug and alcohol tests for school
bus drivers.
CS HB 2 (FIN) was reported out of Committee with
"no recommendation" with a Letter of Intent by the
House Judiciary Committee and with a new fiscal
note by the Department of Education.
HB 97 An Act clarifying the responsibilities of the
Department of Health and Social Services and
parents for children who are committed to the
custody of the department and are placed by the
department with the parents; and providing for an
effective date.
HB 97 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Health and Social Services.
HB 172 An Act relating to the wildlife conservation tag
and to entry onto state game and wildlife
sanctuaries, state game refuges, state range
areas, and fish and game critical habitat areas;
and providing for an effective date.
HB 172 was held in Committee for further
discussion.
HOUSE BILL 97
"An Act clarifying the responsibilities of the
Department of Health and Social Services and parents
for children who are committed to the custody of the
department and are placed by the department with the
parents; and providing for an effective date."
DEBORAH WING, DIRECTOR, FAMILY AND YOUTH SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the
Department of Health and Social Services strongly supports
HB 97, which clarifies the responsibilities of the
Department for children committed to its legal custody and
who continue to reside with the parent or parents. The bill
amends AS 47.10.084 to require a parent or parents to
13
provide for the day to day care of their children if these
children are residing with them when the State has legal
custody as a result of child protection services.
Representative Parnell inquired if medical care would
include the cost of counseling. Ms. Winger stated it would.
Representative Martin discussed medical care costs of foster
children. Ms. Wing noted that children in foster care would
continue to remain a responsibility of the State.
Representative Parnell inquired if parents would be asked to
pay for counseling services of abused children. Ms. Wing
noted, that if the child is qualified under Medicaid, the
parents are able to utilize that resource.
Representative Martin MOVED to report HB 97 out of Committee
with individual recommendations and with the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
HB 97 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Health and Social Services.
HOUSE BILL 2
"An Act requiring drug and alcohol tests for school bus
drivers."
JOHN PETERSON, AID TO REPRESENTATIVE GAIL PHILLIPS, noted
that current Alaska law makes no provision for the routine
testing of school bus drivers for drug and alcohol use.
This bill would provide for such testing. The federal
government is in the process of preparing regulations that
will mandate testing for those who are required to have
commercial drivers licenses for the operation of school
buses. HB 2 is needed at this time as the effective date of
the federal regulations is uncertain. The federal
regulations will not apply to school buses with fewer that
fifteen passengers, which does not require a commercial
license for operation.
Representative Grussendorf requested testimony from the
Department of Law regarding the legal definition of
"improper" use of drugs and alcohol. Representative Parnell
questioned the constitutionality of mandating random
testing. Mr. Peterson pointed out previous concerns
regarding privacy was addressed in the House Judiciary
Committee Letter of Intent.
Representative Foster asked how the legislation's cost would
14
be handled for the small village areas.
GARY BADER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION, responded that the cost is
determined by a statewide average. Most of the services
would be contracted out. He added that the testing is
legitimate for the safety of students.
ROMAINE CAREEN, PEOPLE SAFETY TRANSFORATION COORDINATOR,
DEPARTMENT OF EDUCATION, noted there is a company in
Anchorage which performs most of the state's testing, and
added that drug testing is required by the federal
government. Representative Parnell questioned if the
federal regulations mandated the proposed testing.
Representative Hoffman recommended that the legislation
clarify the coverage of costs for this testing.
BRUCE GARRETT, KODIAK SCHOOL DISTRICT, KODIAK, ALASKA,
stated that under federal law, the school district must be a
"drug-free" work place. He voiced his concern with who
would have the burden of paying the costs for testing. Mr.
Garrett noted that testing would show any drugs or alcohol
in the persons system taken within a 72-hour period.
Representative Hoffman felt that the testing would be a
violation of the privacy act. Discussion followed regarding
an employee who consumes on their "off" hours.
Representative Parnell pointed out that the "drug free" zone
was created by federal law.
Co-Chair MacLean MOVED to report HB 2 out of Committee with
individual recommendations and the new Department of
Education fiscal note. Representative Parnell OBJECTED in
order to make an amendment. He MOVED deleting the word
"improper" from Page 1, Line 7 and Line 8.
(Tape Change, HFC 93-56, Side 2).
Representative Hanley recommended adding "illegal" on Page
1, Line 8 and deleting the word "improper". Representative
Parnell WITHDREW his motion to delete "improper" and MOVED
to delete the word "improper" on Line 7 and on Line 8 delete
"improper" and replace with "illegal". There being NO
OBJECTION, it was so ordered.
Representative Hoffman offered a technical amendment which
would explain that the Department of Education would be
responsible for payments of all testing. Mr. Bader pointed
out that it was the intent of the Department to pay for the
testing. Representative Hoffman asked for approval of the
conceptual amendment which would legally clarify that
information. Representative Martin noted that the fiscal
15
note states that the money is allocated to the Department of
Education for specifically paying for testing.
Representative Hoffman objected and asked that detailed
clarification be contained in the bill. Representative
Foster OBJECTED to moving the bill from Committee.
A roll call was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
MacLean, Larson.
OPPOSED: Hoffman, Navarre, Foster.
Representative Brown and Representative Grussendorf were not
present for the vote.
The MOTION PASSED, (6 - 3).
CS HB 2 (FIN) was reported out of Committee with "no
recommendation" and with a House Judiciary Committee Letter
of Intent and a fiscal note by the Department of Education.
HOUSE BILL 172
"An Act relating to the wildlife conservation tag and
to entry onto state game and wildlife sanctuaries,
state game refuges, state range areas, and fish and
game critical habitat areas; and providing for an
effective date."
LAURA FLEMING, AID FOR REPRESENTATIVE BILL WILLIAMS, stated
that HB 172 would create a wildlife conservation tag program
aimed at encouraging non-consumptive users of Alaska's
wildlife to help pay for wildlife programs and facilities
they use.
Wildlife viewing is a fast-growing form of recreation in the
world, and a major factor in attracting visitors to Alaska.
Careful management and development of viewing areas is
important to protect the wildlife while enhancing visitor
opportunities. The bill is a "user pays" approach to
generating funds to support this growing area of wildlife
use.
The primary thrust of HB 172 is a voluntary program.
Participants would pay a fairly small price for the tag.
The price of the tag is left to the Department but will be
kept low since the goal is to sell large numbers of the tags
to those who voluntarily purchase them.
Ms. Fleming explained the amendments submitted by
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Representative Williams which will make three small
technical changes to CS HB 172 (RES) version.
Co-Chair MacLean presented her concerns with the legislation
and the limitations created in the McNeil River area which
she felt would restrict individual freedom to explore
certain parts of that area.
GERON BRUCE, SPECIAL ASSISTANT, DEPARTMENT OF FISH AND GAME,
noted the legislation would not restrict people from going
into areas to pursue exempted activities. He added that
McNeil is a small area sanctuary which is exclusively a
brown bear viewing area. This area can be used by permit
only and is already existing in law. The function of the
permit system is to protect the intrinsic quality of the
environment for the animals of those areas and for those who
come to view the animals.
Co-Chair MacLean voiced her concern with the potential
expansion of areas added to the conservation tag entry
system. Mr. Bruce advised that the Department will be
working closely with tourism, the visitor industry and the
public.
KATE TESAR, ASSOCIATION OF INDEPENDENT TOUR OPERATORS,
JUNEAU, ALASKA, noted support of the legislation. She
stated that her group has been assured by the Department of
Fish and Game that the tourism industry will be included in
changes in the current regulations. There will be no
arbitrary designation of tagged areas without good reason.
She spoke of the profit which could be generated from the
pins.
IRENE MORRIS, ALASKA ENVIRONMENTAL LOBBY (AEL), JUNEAU,
ALASKA, spoke in support of HB 172. She recommended that
non consumptive users pay a portion of the management costs
for specified areas.
Representative Foster interjected his many concerns with the
proposed legislation. He felt HB 172 would be detrimental
to Western and Arctic Alaska. Mr. Bruce noted that the
Department would be willing to substitute language which
would help clarify the legislation. The legislation is not
directed at establishing additional fees for subsistence
users, but rather allowing users to contribute to programs.
Representative Hanley recommended limiting the law to the
two designated areas. If additional areas should be added,
then the Legislature would determine if they would be
advantageous.
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Co-Chair Larson advised that the legislation should be
returned to Subcommittee for further considerations. The
bill was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 9:45 a.m.
HOUSE FINANCE COMMITTEE
MARCH 27, 1993
10:00 A.M.
TAPE HFC 93 - 70, Side 1, #000 - end.
TAPE HFC 93 - 70, Side 2, #000 - end.
TAPE HFC 93 - 71, Side 1, #000 - #123.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 10:00 A.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Representative Gail Phillips; Representative Jim Nordlund;
Representative Tom Brice; Ron Garzini, Executive Director,
Alaska Energy Authority (AEA, Department of Commerce and
Economic Development; Glona Manni, Director, Accounting and
Administration, Alaska Energy Authority, Department of
Commerce and Economic Development; Jan Hansen, Director,
Division of Public Assistance, Department of Health and
Social Services.
SUMMARY INFORMATION
HB 67 An Act relating to eligibility for and payments of
public assistance; and providing for an effective
date.
CS HB 67 (FIN) was reported out of Committee with
"individual recommendations" and with fiscal notes
by the Department of Health and Social Services,
three from AFDC Division, three from the APA
Division, and three from PFD Hold Harmless and the
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Medicaid Non-Facilities.
HB 126 An Act relating to payment of prevailing wage
rates on public construction projects.
HB 126 was reported out of Committee with a "do
pass" recommendation and with two zero fiscal
notes by the Department of Transportation and
Public Facilities dated 3/12/93 and the Department
of Labor dated 3/12/93.
HB 216 An Act relating to power cost equalization; and
providing for an effective date.
HB 216 was held in Committee for further
discussion.
HOUSE BILL 126
An Act relating to payment of prevailing wage rates on
public construction projects.
REPRESENTATIVE GAIL PHILLIPS said current law provides that
a construction contractor or subcontractor who performs work
on public construction in the State shall pay not less than
the current prevailing wage for work of a similar nature.
However, an increase in the prevailing wage in the middle of
a contract creates a financial hardship on the contractor;
and anticipation of interim increases may also serve to
inflate the cost of construction projects because the
contractor or subcontractor must absorb the costs of any
wage rate change.
The prevailing rate of wages is determined by the Department
of Labor based on a periodic survey of public and private
commercial heavy and highway construction projects in the
State. If the union rate is prevailed from the survey
results, interim wage and benefit increases are currently
prevailed.
Representative Phillips stated that HB 126 was introduced to
amend AS 36.05.010 so that the prevailing wage as determined
by the Department of Labor will no longer apply immediately
to contracts in progress. The wage in effect at least ten
days before final bid submission will remain in effect for
24 months from the date the contract is awarded. Wages will
remain the same for the life of most construction projects.
In the case of contracts that are longer than 24 months, the
bill provides for stable wages for a subsequent 24 month
period, and so forth for the life of the contract.
Representative Parnell MOVED to report SS HB 126 out of
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Committee with individual recommendations and with the
accompanying two zero fiscal notes. There being NO
OBJECTION, it was so ordered.
SS HB 126 was reported out of Committee with a "do pass"
recommendation and with zero fiscal notes by the Department
of Transportation and Public Facilities dated 3/12/93 and
the Department of Labor dated 3/12/93
HOUSE BILL 67
"An Act relating to eligibility for and payments of
public assistance; and providing for an effective
date."
JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, explained that HB 67 (HESS)
would amend the Governor's welfare reduction bill by
permanently repealing the authority to automatically award
cost-of-living allowances (COLA's) in benefits paid under
the Aid to Families with Dependent Children (AFDC) and Adult
Public Assistance (APA) programs. The Governor's bill
proposed a one-year suspension of the COLA's and would have
denied the three percent COLA's expected to be awarded in
January 1994 while retaining the authority to award COLA's
in future years.
She added, the Governor's bill has the dual goals of
producing immediate savings in program costs and curbing the
rate of increase in the welfare caseload. Suspending rather
than repealing the COLA's was a strategy calculated to
achieve the necessary savings in program costs while
maintaining the protection against rising living costs
afforded by the statutory COLA provision. CS HB 67 (HESS)
removes the protection. The benefit reductions imposed by
the Governor's bill are substantial. The Department of
Health and Social Services does not support the assistance
reductions which would result from the permanent repeal of
the AFDC and APA COLA's.
Representative Hoffman noted that the cost-of-living and the
earning power in Alaska is higher than all the other states.
His comments preceded a discussion regarding the high ratio
of payments distributed to Alaskans on public assistance and
welfare. Ms. Hansen stated that the poverty level in Alaska
is twenty-five percent higher than the federally established
poverty level guideline.
Representative Brown MOVED Amendments #1 - #4 [Attachment #1
- #4]. She proceeded to withdraw Amendment #3 and #4. She
added Amendments #1 and #2 would restore the proposed
legislation to the Governor's recommended level of funding.
20
The Amendment [Attachment #2] would not change the reduction
level and would continue to have the three year roll-back
for the Adult Public Assistance and a two year roll-back for
AFDC. Co-Chair Larson asked how many states currently have
a COLA. Ms. Hansen stated that Alaska was the only state
with an automatic COLA. Representative Parnell OBJECTED to
Amendment #1.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, Brown,
MacLean, Navarre.
OPPOSED: Therriault, Hanley, Martin, Parnell,
Larson.
The MOTION PASSED, ( 6 - 5).
Representative Brown MOVED Amendment #2 [Attachment #3].
She explained that the amendment would make a less severe
reduction to the level of the FY 92 roll-back.
Representative Hoffman indicated his support of the
amendment explaining that energy, food and rent costs in
Alaska are more expensive. Representative Martin OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman,
MacLean, Navarre.
OPPOSED: Therriault, Hanley, Martin, Parnell,
Larson.
The MOTION PASSED, (6 - 5).
(Tape Change, HFC 93-70, Side 2).
Representative Navarre MOVED to report CS HB 67 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. Representative Hoffman OBJECTED.
A roll call was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hanley, Martin,
Navarre, Parnell, Therriault, MacLean.
OPPOSED: Larson, Brown, Hoffman.
The MOTION PASSED (8 - 3).
CS HB 67 (FIN) was reported out of Committee with
"individual recommendations" and with fiscal notes by the
21
Department of Health and Social Services, three from AFDC
Division, three from the APA Division, PFD Hold Harmless and
the Medicaid Non-Facilities.
HOUSE BILL 216
"An Act relating to power cost equalization; and
providing for an effective date."
Co-Chair Larson noted that HB 216 was sponsored by the House
Finance Committee. The legislation would affect Power Cost
Equalization, a formula program reducing the consumers cost
of electricity generated and sold by eligible utilities in
rural Alaska.
RAY GARZINI, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, stated that
the Alaska Energy Authority (AEA) does support the approach
taken in HB 216. He referenced SB 124 and explained the
differences between the two pieces of legislation. Mr.
Garzini advised that the cost savings due to the removal of
state and federal facilities from the program would be $1
million dollars. The schools continued cost for
participation in the program would be about $570 thousand
dollars.
Based on the FY 91 PCE program statistics report issued in
December, 1992, the average monthly consumption of
residential and commercial customers eligible for PCE is 374
kwh per month. Community facilities are excluded from the
computation.
Co-Chair MacLean felt that APUC should decide the kilowatt
hour average, not AEA. She stated her concern with the cost
of the fiscal note. She pointed out historically fiscal
concerns have been funded at eighty percent. Mr. Garzini
stated that the legislation could accommodate the budget
level.
Discussion followed regarding the funding request level in
the proposed legislation. Mr. Garzini stated last year
because of the funding cut, AEA and PCE had a difficult time
determining the cost allocations. A program did not exist
from which to allocate the reductions. Consequently,
attention was focused on the residential customers and
reductions to the benefit of the commercial customers users.
Co-Chair Larson understood that PCE's function was to
balance the electrical cost to consumers between the urban
and the rural consumption. His concern was the system used
in determining the 750 kilowatt hour average usage cost in
22
Anchorage, Fairbanks and Juneau. Mr. Garzini responded, the
average monthly residential consumption residential kilowatt
use was 367 kwh/hrs. Co-Chair Larson thought that it was
placed artificially high to encourage consumption. Mr.
Garzini noted the 750 kwh/hrs per month originated in the
urban areas.
Representative Parnell questioned if cost savings could come
from accepting federal facilities to the program. Mr.
Garzini replied they currently include federal and state
facilities and schools, amounting to $1 million dollars.
Co-Chair MacLean offered a "friendly amendment" to Page 2,
Line 9, deleting the language "rate of change in fuel cost
and power demand" and inserting "average cost of kilowatt
hour in Anchorage, Juneau and Fairbanks". She pointed out
that APUC should be the authority addressing the
legislation. Mr. Garzini agreed that APUC should have the
final say on such matters, since APUC is a reviewing agency.
He recommended that AEA prepare the rates and then APUC
review it.
Representative Brown noted for the record that her husband
is one of the APUC Commissioners. She pointed out that APUC
reviews regulated utilities which have a monopoly, to assure
that the monopolies are not over charging people for
services and costs. Mr. Garzini elaborated, there are
currently one hundred thirty utilities which are not
regulated. He reiterated that the operational and
administrative procedures of the program should be handled
by AEA.
(Tape Change, HFC 93-71, Side 1).
Representative Brown asked the average cost per kilowatt
hour for residential and commercial uses in Juneau,
Anchorage and Fairbanks. She pointed out that the
comparisons are currently based on non-compatible
information.
HB 216 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 11:55 a.m.
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