03/23/1993 08:00 AM House STA

  HB 65:  FINANCIAL ADMINISTRATION OF STATE GOVT.                              
                                                                               
  Number 140                                                                   
                                                                               
  CHAIRMAN VEZEY noted CSHB 65 (STA) had been proposed to                      
  replace CSHB 65 (L&C), and invited comment on both versions.                 
                                                                               
  Number 155                                                                   
                                                                               
  DONALD G. STUDY, ACTING DIRECTOR, DIVISION OF LABOR                          
  STANDARDS AND SAFETY, DEPARTMENT OF LABOR (DOL), told the                    
  committee it would be a mistake to delete section 44 of HB
, which would allow the DOL to regulate user fees in                       
  accordance with their budget needs.                                          
                                                                               
  Number 170                                                                   
                                                                               
  REPRESENTATIVE ULMER asked if the tentative budget before                    
  the finance committee had been based on the fees being                       
  allowed.                                                                     
                                                                               
  MR. STUDY replied in the affirmative.                                        
                                                                               
  REPRESENTATIVE ULMER then asked what might be the effect on                  
  the DOL if the budget was not accurate, and the fees not                     
  allowed.                                                                     
                                                                               
  Number 178                                                                   
                                                                               
  MR. STUDY alleged the DOL would lose the $93,500 the fees                    
  would have generated, and unless general fund monies were                    
  substituted for those fees, the DOL would have to lay off                    
  workers and cut service levels.  He stated the DOL would                     
  also cut back on travel, and probably see electrical                         
  inspection service cut by at least 25%.                                      
                                                                               
  Number 207                                                                   
                                                                               
  CHAIRMAN VEZEY noted the latest CSHB 65 would cut those                      
  fees, which he advocated, since the increasing fees, he                      
  deemed, constituted a direct tax on the working men and                      
  women of Alaska.  He went on to note later sections of the                   
  bill also deletes regulatory rights for fees by both the                     
  Department of Natural Resources and the DEC.  In both cases,                 
  many of the fees are taken away from regulatory language and                 
  put back into statute.  He also noted the DEC anticipated                    
  getting $750,000 from the fee structure, but in CSHB 65,                     
  that had been greatly reduced.                                               
                                                                               
  Number 262                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS expressed concern CSHB 65 might be                 
  making too many drastic changes after being submitted in the                 
  budget process.  He stated many of the fee changes had been                  
  mandated by the previous legislature, and he was concerned                   
  about the movement toward more user fees.  While he saw an                   
  opportunity to put the brakes on a direct tax, he did not                    
  see how the departments could carry out their constitutional                 
  duties without the fees, and preferred CSHB 65 (L&C) to                      
  CSHB 65 (STA).                                                               
                                                                               
  Number 315                                                                   
                                                                               
  REPRESENTATIVE BETTYE DAVIS asked if Mr. Study could support                 
  CSHB 65 (STA) if the fees were eliminated.                                   
                                                                               
  MR. STUDY explained the DOL had taken budget cuts in the                     
  previous three years, and he could not support the DOL                       
  without the fees.                                                            
                                                                               
  Number 339                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED ADOPTION of CSHB 65 (STA).                              
                                                                               
  REPRESENTATIVE ULMER opposed CSHB 65 (STA) and favored                       
  CSHB 65 (L&C).  She stated the basic philosophy behind                       
  CSHB 65 (L&C) is that users must eventually pay for the                      
  services they use, or the state will eventually have to                      
  subsidize the service.                                                       
                                                                               
  Number 358                                                                   
                                                                               
  CSHB 65 (STA) was ADOPTED by a 4-3 vote; Representatives                     
  Vezey, Kott, Sanders, and Olberg voting YES; Representatives                 
  Ulmer, B. Davis and G. Davis voting NO.                                      
                                                                               
  Number 362                                                                   
                                                                               
  CHAIRMAN VEZEY MOVED passage of CSHB 65 (STA) from                           
  committee.                                                                   
                                                                               
  Number 383                                                                   
                                                                               
  CSHB 65 (STA) passed from committee by a 7-0 vote.