Legislature(1995 - 1996)
04/19/1996 03:15 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 416 - OMNIBUS STATE FEES & COST ASSESSMENTS CHAIRMAN KOTT announced the committee would hear HB 416 "An Act relating to fees or assessment of costs for certain services provided by state government, including hearing costs related to the real estate surety fund; fees for authorization to operate a postsecondary educational institution or for an agent's permit to perform services for a postsecondary educational institution; administrative fees for self-insurers in workers' compensation; business license fees; fees for activities related to coastal zone management, training relating to emergency management response, regulation of pesticides and broadcast chemicals, and subdivision plans for sewage waste disposal or treatment; and providing for an effective date," introduced by the Governor. Chairman Kott noted there was a proposed committee substitute. He also informed the committee there is a Senate version of the Governor's fee bill in the Senate Rules Committee. Number 1894 GEORGE DOZIER, Legislative Assistant to Representative Pete Kott Alaska State Legislature, came forward to testify. He informed the committee that the proposed CS inserts into HB 416 several pages of material addressing vehicle registration fees and, accordingly, the title is changed in the proposed CS. Mr. Dozier explained the CS proposes across the board a $5 increase in motor vehicle registration fees. At the same time, it revokes the $10 penalty, which currently exists in law, for registration at motor vehicle offices. It rewards individuals that mail in their registration by deducting $5 from the registration fees. This is anticipated to generate approximately $700,000. The proposed CS has intent or purpose language contained in Section 1 which says, "The legislature intends to annually appropriate at least $700,000 of the amount the state receives from motor vehicle registration fees to the Department of Public Safety for state troopers. He said that concludes his summary. Number 1971 CHAIRMAN KOTT explained the CS essentially increases, across the board, registration fees which still is substantially below other states on the average. It repeals the $10 in-person charge that is currently in place. He said it is his understanding the Division of Motor Vehicles is the only division that charges for in-person contact. The $5 increase in registration fees would be reduced if, in fact, the person were to send their registration in through the mail. In essence, there would be no increase whatsoever. The anticipated revenue, based on this approach, would be about $700,000. It is the intent of the sponsor that the money that is generated would be used to support an increase of troopers on the street. Number 2021 REPRESENTATIVE ROKEBERG questioned whether the legislature just passed a Senate bill that made it biannual and it also spoke to the same fees. CHAIRMAN KOTT said there was a Senate bill that was passed. He said depending on whether or not the Senate bill is signed into law, this will would.... REPRESENTATIVE ROKEBERG questioned whether or not HB 416 should be amended to reflect the bill that was just passed. Number 2071 JUANITA HENSLEY, Chief, Driver Services, Division of Motor Vehicles Department of Public Safety, informed the committee the Senate bill has been transmitted back to the Senate for concurrence. If the Senate concurs, it will go to the Governor for signature. The Department of Public Safety and the Administration supports that bill and also HB 416. Ms. Hensley said as far as how that will work with the biannual registration and increasing the fees, she couldn't tell the committee the technicalities whether HB 416 would override the Senate bill since this HB 416 would pass at a later date, or whether just the fee structure would increase the registration biannually by $10 and then give a biannual break of $10. Number 2116 REPRESENTATIVE PORTER said to make it all work, he thinks HB 416 should be amended to coincide with the biannual scheme. He said there could be a conflict. MS. HENSLEY said that is correct. CHAIRMAN KOTT said language could be adopted that would basically reflect that biannual registration would then increase the fee twofold. MS. HENSLEY asked the committee to keep in mind that the biannual registration bill reduces the registration fee by $2 per vehicle if they register for the two year period. She pointed out the fee for rental cars is not reduced and will still be an annual registration fee. Number 2143 REPRESENTATIVE ELTON said he would imagine the fiscal note would change. Number 2178 REPRESENTATIVE ROKEBERG made a motion to adopt CSHB 416, Version 9- GH2024\F, Cook, 4/19/96. CHAIRMAN KOTT said there is a motion to adopt CSHB 416, 4/19/96, Version F. He asked if there was an objection. Hearing none the CS was before the committee. Number 2208 NANCY SLAGLE, Director, Division of Budget Review, Office of Management and Budget, Office of the Governor, came before the committee. She explained she has a spreadsheet that will explain what the different sections of the State Affairs version of the bill does. Ms. Slagle referred to the first section and said it allows them to access the real estate surety fund to charge all the hearing costs. It simplifies the whole process. It is also a cost savings to the general fund. MS. SLAGLE referred to the Section 2 and said it relates to the Postsecondary Education Commission. She said it allows the commission to charge postsecondary education private institutions for the processing of their applications to operate. This hasn't ben done in the past and basically what has happened is the Student Loan Corporation has basically covered the cost of the processing of those applications. This gives the ability to charge on a sliding scale based on tuition revenues the institutions would receive. The charges would be anywhere from $200 to $2,500 depending on the amount of revenues they receive. MS. SLAGLE said the third section allows the Human Rights Commission to charge for items they provide in the way of education and training information materials. This would be a small amount, but with the tightening of budgets they have, their ability to provide this information has reduced substantially. This will give them the ability to make those charges. MS. SLAGLE explained the fourth section relates to the Department of Labor. It gives them the ability to require self insured employers to pay a 4 percent fee for the cost of processing disputed claims with the Workers' Compensation Board. The State Affairs Committee amended this section so that political subdivisions would be exempt from this requirement. The fee would cover the costs of processing and hearing claim disputes. MS. SLAGLE informed the committee members Section 5 deals with the Department of Natural Resources and is a fee for evaluating for auditing applications of exploration credits for mine development. She said they also have an amendment that goes hand in hand with their streamlining bill to simplify the processing of exploration credits for mine development. She said this is the fee portion of it. MS. SLAGLE referred to the sixth section which relates to the Department of Transportation and Public Facilities and said it allows the charging for the use of state marine and harbor facilities. The concern is mostly in the area of municipalities being required to charge fees to cover the costs of maintaining these facilities. There tended to be....[END OF TAPE] TAPE 96-38, SIDE B Number 0014 MS. SLAGLE explained Section 7 relates to the Department of Commerce and Economic Development. It changes the statutory setting of the business license fees. In the past those have been $25 per year and this would increase it to $75 every two years. Ms. Slagle said this hasn't been changed since statehood and is a revenue generator for the state. Number 038 REPRESENTATIVE ROKEBERG asked if the only reason the fees are being raised is because it is revenue generating. MS. SLAGLE indicated that is correct. REPRESENTATIVE ROKEBERG said as a business license holder, he isn't too happy about that. MS. SLAGLE pointed out it is an increase of $12.50 per year and is the first increase since statehood. Number 077 MS. SLAGLE explained Section 8 relates to the Division of Governmental Coordination. This would allow them to charge fees for federal consistency determinations under the Alaska Coastal Management Program. Currently, they basically have a process of providing a consolidated approach to reviewing permits. She said this would allow them to collect additional fees from industry to help in their processing to speed this permit review process along. Currently, they have no ability to do that and it requires statutory changes. Ms. Slagle said it is her understanding that the industry is supportive of this so they can get a quicker response from the state. MS. SLAGLE explained Section 9 allows the Department of Military and Veterans Affairs to charge fees for providing emergency management response training. Currently, they have the ability to charge for providing training for oil spill related types of response, but not for general emergency management response. This would expand their statutory authority so that they could provide the other types of response. This would cover basically just the travel and facility rental that's necessary to do training. MS. SLAGLE said the next section, Section 10, allows the Department of Environmental Conservation to charge for pesticide and broadcast chemical use and for review of subdivision plans for sewage waste disposal or treatment facilities. The amount charged for the pesticide and broadcast chemical use would basically be charged to chemical manufacturers located in the Lower 48 which produces the chemicals such as Dow, etc. Number 188 REPRESENTATIVE ROKEBERG said, "The changes in the fund appears to be any hearing that's held, the way the language reads to me, could be reimbursed from the fund. Then there is language down here, `If a party that's aggrieved is found not to have a meritorious action,' are they liable for collection of money or what?" Number 180 CATHERINE REARDON, Director, Central Office, Division of Occupational Licensing, Department of Commerce and Economic Development, explained the proposed change in the bill is to allow all hearing costs to be billed to the surety fund so they don't have to wait to find out whether they were meritorious or not before making that billing. If a claim is found to be meritorious, the claim is paid out of the fund and then they attempt to recover the payment from the licensee who was responsible for the injury. REPRESENTATIVE ROKEBERG referred to page 2, line 16, "or from other parties under AS 08.88.490," and asked who that would be. MS. REARDON said she isn't certain. She said that often times there are several licensees who are being charged in the same activity. She said that is current language and she said she would check on that. REPRESENTATIVE ROKEBERG said the issue is before any surety bond monies were paid, they were only paid upon an award. He asked if that is the difference here. MS. REARDON explained this does not change the pay out of awards. It simply changes the billing of the hearing costs. Currently, the costs of paying the hearing officer and any associated attorney general costs were being paid by real estate licensees out of their general fund program receipts operating budget, then if the injured party was successful in their claim, the actual claim was being paid out of the surety fund. All that will happen is the actual cost to the division of holding the hearing will be billed to the surety fund up front. REPRESENTATIVE ROKEBERG said the realty license fees were just raised substantially and now they're going to remove that burden from their general fund license fee and it will go to the fund for the reimbursement for all the costs, including attorney general's fees for the hearings. Representative Rokeberg asked Ms. Reardon when the new license fees were calculated, was this new policy change taken into consideration? MS. REARDON explained they didn't because they are in a "chicken and the egg" kind of situation. If they billed the fees assuming that the legislature is going to change the law and it doesn't happen, they won't have enough in the surety fund. If they wait to try and get the legal change until they set their fees, there won't be a way to get them in sync. However, if it turns out that they've over collected in the general fund program receipt part of the Real Estate Commission, they will end up lowering fees subsequently or perhaps they will be able to spend more money on the Real Estate Commission out of the general fund. There is no way to get the two activities in sync. Number 348 REPRESENTATIVE ROKEBERG asked where this recommendation came from. MS. REARDON explained the Real Estate Commission endorsed it and voted on the record to support it. She said it was a proposal that come from her and she asked Real Estate Commission and they agreed. She said they have for a long time wanted to be able to know how much is being spent on hearings and to have those hearings billed to the surety fund. It was the difficulty of having to wait to see if the injured person prevailed or not that kept the division from successfully transferring those costs. REPRESENTATIVE ROKEBERG questioned what the maximum statutory level of the surety fund. MS. REARDON explained the maximum is $500,000. When it goes above $500,000, the money lapses into the general fund of the state. If it goes below $250, then no money can be spent on educational purposes. She noted it is currently very close to $500,000. Number 423 REPRESENTATIVE ROKEBERG referred to page 8, line 6, and moved to delete "$75" and reinsert "$50". REPRESENTATIVE ELTON objected. Number 450 A roll call vote was taken. Representatives Porter, Elton and Kott voted against the amendment. Representative Rokeberg voted in favor of the amendment. So the amendment failed. Number 490 CHAIRMAN KOTT said the committee has lost a quorum so the bill would be held over. He then closed the public hearing on the bill.
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