Legislature(1993 - 1994)
04/03/1993 08:00 AM House STA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE April 3, 1993 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chairman Representative Pete Kott, Vice Chairman Representative Harley Olberg Representative Gary Davis Representative Fran Ulmer Representative Bettye Davis MEMBERS ABSENT Representative Jerry Sanders COMMITTEE CALENDAR *HB 226 "An Act relating to interest rates and calculation of interest under certain judgments and decrees and on refunds of certain taxes, royalties, or net profit shares; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 206 "An Act relating to the regulation of election campaigns, and providing for regulation by the Alaska Public Offices Commission of elections by electrical cooperatives." CSHB 206 (CRA) MOVED FROM COMMITTEE WITH DO PASS RECOMMENDATION *SSHB 192 "An Act relating to construction contractors." CSSSHB 192 (STA) MOVED FROM COMMITTEE WITH DO PASS RECOMMENDATION *HCR 18 Relating to Federal Public Land Week. MOVED FROM COMMITTEE WITH DO PASS RECOMMENDATION HB 46 "An Act relating to frequent traveler credit for state-paid travel." CSHB 46 (STA) MOVED FROM COMMITTEE WITH NO RECOMMENDATION (* first public hearing) WITNESS REGISTER Representative Eldon Mulder Room 116, State Capitol Juneau, Alaska 99801-1182 465-2647 Position Statement: Prime Sponsor, HB 206 and HB 192 Brooke Miles, Branch Administrator Alaska Public Offices Commission P.O. Box 110222 Juneau, Alaska 99811 465-4864 Position Statement: Neutral on HB 206 Joe Geldhof, Assistant Attorney General Department of Law P.O. Box 6728 Juneau, Alaska 99811 465-6728 Position Statement: Outlined HB 226 Larry Meyers, Director Income and Excise Audit Division Department of Revenue P.O. Box 110420 Juneau, Alaska 99811-0420 465-2320 Position Statement: Provided information on HB 226 Charles E. "Chris" Christensen, III, Staff Counsel Alaska Court System 303 K Street Anchorage, Alaska 99501 264-8228 Position Statement: Opposed HB 226 Ken Reither Exxon, USA 3301 C Street Anchorage, Alaska 99503 564-3776 Position Statement: Opposed HB 226 Karl Luck, Director Division of Occupational Licensing Department of Commerce and Economic Development P.O. Box 110806 Juneau, Alaska 99811-0806 465-2538 Position Statement: Supported HB 192 with suggested amendments PREVIOUS ACTION BILL: HB 226 SHORT TITLE: INTEREST RATES: JUDGMENTS/TAXES/ROYALTIES BILL VERSION: SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR TITLE: "An Act relating to interest rates and calculation of interest under certain judgments and decrees and on refunds of certain taxes, royalties, or net profit shares; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/12/93 620 (H) READ THE FIRST TIME/REFERRAL(S) 03/12/93 620 (H) STATE AFFAIRS, JUDICIARY, FINANCE 03/12/93 620 (H) -4 ZERO FNS(ADM, ADM, REV, DOT) 3/12/93 03/12/93 621 (H) GOVERNOR'S TRANSMITTAL LETTER 04/03/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 206 SHORT TITLE: ELECTIONS AND ELECTRIC COOP ELECTIONS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MULDER TITLE: "An Act relating to the regulation of election campaigns, and providing for regulation by the Alaska Public Offices Commission of elections by electrical cooperatives." JRN-DATE JRN-PG ACTION 03/05/93 553 (H) READ THE FIRST TIME/REFERRAL(S) 03/05/93 553 (H) CRA, STATE AFFAIRS 03/16/93 (H) CRA AT 01:00 PM CAPITOL 124 03/17/93 (H) CRA AT 01:00 PM CAPITOL 124 03/17/93 (H) MINUTE(CRA) 03/23/93 (H) MINUTE(CRA) 03/24/93 757 (H) CRA RPT CS(CRA) NEW TITLE 4DP 1DNP 1NR 03/24/93 757 (H) DP: SANDERS, BUNDE, WILLIAMS, TOOHEY 03/24/93 757 (H) DNP: DAVIES 03/24/93 757 (H) NR: OLBERG 03/24/93 758 (H) -FISCAL NOTE (ADM) 3/24/93 04/03/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 192 SHORT TITLE: ADVERTISING BY UNREGISTERED CONTRACTORS BILL VERSION: SSHB 192 SPONSOR(S): REPRESENTATIVE(S) MULDER TITLE: "An Act relating to construction contractors." JRN-DATE JRN-PG ACTION 03/02/93 505 (H) READ THE FIRST TIME/REFERRAL(S) 03/02/93 505 (H) STATE AFFAIRS, JUDICIARY, FINANCE 03/20/93 (H) STA AT 08:00 AM CAPITOL 102 03/24/93 760 (H) SPONSOR SUBSTITUTE INTRODUCED- REFERRALS 03/24/93 760 (H) STATE AFFAIRS, JUDICIARY, FINANCE 03/26/93 (H) JUD AT 01:30 PM CAPITOL 120 04/03/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HCR 18 SHORT TITLE: DECLARE FEDERAL PUBLIC LAND WEEK BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) GREEN TITLE: Relating to Federal Public Land Week. JRN-DATE JRN-PG ACTION 03/26/93 793 (H) READ THE FIRST TIME/REFERRAL(S) 03/26/93 793 (H) STATE AFFAIRS 04/03/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 46 SHORT TITLE: STATE-PAID TRAVEL MILEAGE CREDITS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN TITLE: "An Act relating to frequent traveler credit for state-paid travel." JRN-DATE JRN-PG ACTION 01/12/93 43 (H) READ THE FIRST TIME/REFERRAL(S) 01/12/93 43 (H) STATE AFFAIRS, TRANSPORTATION, FINANCE 03/20/93 (H) STA AT 08:00 AM CAPITOL 102 03/20/93 (H) MINUTE(STA) 03/30/93 (H) STA AT 08:00 AM CAPITOL 102 03/30/93 (H) MINUTE(STA) ACTION NARRATIVE TAPE 93-37, SIDE A Number 000 CHAIRMAN AL VEZEY called the House State Affairs Committee to order at 8:04 a.m., on April 3, 1993. Members present were Representatives Kott, Olberg, B. Davis, G. Davis, and Ulmer, representing a quorum. HCR 18: DECLARE FEDERAL PUBLIC LAND WEEK Number 016 CHAIRMAN VEZEY read the title to HCR 18 and called for a sponsor statement. After seeing no one present to present the statement, he read the resolution, outlined its contents and called for comments. Number 072 REPRESENTATIVE HARLEY OLBERG noted HCR 18's reference to 95% of the land in Alaska being controlled by the federal government, and asked rhetorically who decided that was such a good idea. Number 084 REPRESENTATIVE FRAN ULMER felt HCR 18 did not make much of a statement and asked if it was a national trend to adopt such a resolution. REPRESENTATIVE OLBERG stated it was a trend among Northwestern states to adopt the statements made in HCR 18. Number 107 CHAIRMAN VEZEY MOVED PASSAGE of HCR 18. There being no objections, IT SO MOVED. HB 206: ELECTIONS AND ELECTRIC COOP ELECTIONS Number 129 CHAIRMAN VEZEY read the title to HB 206 and called for its sponsor to deliver his statement. Number 135 REPRESENTATIVE ELDON MULDER, PRIME SPONSOR OF HB 206, summarized HB 206 and its intent to regulate utility cooperative board elections under the Alaska Public Offices Commission (APOC). He stated telephone and electric cooperative elections have changed dramatically in the past few years, from a time in which candidates spent money directly from their pockets, and in smaller amounts, to the present in which thousands of dollars are spent without accountability to the public. He noted the lack of a monitor or tracking mechanism for election to a board that controls policy for literally thousands of Alaskans. REPRESENTATIVE MULDER stated HB 206 would waive monitoring of cooperatives of ten thousand customers or less, and asked the committee to pass the bill. REPRESENTATIVE ULMER noted the existence of three versions of HB 206, including a State Affairs Committee Substitute, and asked the sponsor what the differences were. Number 182 REPRESENTATIVE MULDER stated the first version had no threshold for monitoring, where version 2, drawn up in the Community and Regional Affairs Committee, created the ten thousand customer threshold, and the latest version of HB 206 further tightened the qualifications of identifying a candidate for office. Number 208 CHAIRMAN VEZEY asked how the latest version of HB 206 was drawn up. Number 215 REPRESENTATIVE OLBERG stated the previous committee noted a lack of a provision for identifying a candidate, and asked that such a provision be drawn in. Number 228 CHAIRMAN VEZEY asked the sponsor for a clarification between versions "R" and "U" of HB 206. He noted the arrival of Representative Bettye Davis at 8:17 a.m., 13 minutes after the meeting was called to order. Number 232 REPRESENTATIVE MULDER outlined the qualifications for a candidate that included filing paperwork with APOC. Number 248 REPRESENTATIVE ULMER wanted to hear more from other witnesses. Number 262 BROOKE MILES, JUNEAU BRANCH ADMINISTRATOR, ALASKA PUBLIC OFFICES COMMISSION (APOC), stated the APOC is neutral on HB 206, but did provide information to the sponsor during its creation. She stated HB 206 provided an avenue to monitor contributions to co-op candidates by specifying how and where candidates would file campaign finance reports. Under current finance laws, candidates file statements with municipal clerks. House Bill 206 provides language for co- op candidates to provide their statements to APOC. Number 284 REPRESENTATIVE ULMER MOVED for ADOPTION of CSHB 206 (STA). There was no objection, and CSHB 206 WAS ADOPTED. Number 294 REPRESENTATIVE ULMER MOVED PASSAGE of CSHB 206 (STA) from committee and asked for unanimous consent. There was no objection, and IT SO MOVED. HB 226: INTEREST RATES: JUDGMENTS/TAXES/ROYALTIES CHAIRMAN VEZEY read the title to HB 226, noted its introduction at the request of the Governor, and invited a representative of the Attorney General's office to explain the intent of HB 226. Number 313 JOE GELDHOF, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, outlined HB 226. He noted Section one dealt with pre and post judgment interest rates prior to and after court cases involving either state funds or money owed the state, and Section two dealt with oil royalties and tax repayment and the interest to be paid on them. He stated the provisions of Section one would create a statutory interest rate as opposed to the arbitrary 10.5% rate now being paid. He stated the advantage to setting a statutory rate would be that it would not be at the mercy of the market, and that would in turn save the state money. MR. GELDHOF added the administration wished to set a market based rate, which in HB 226 would be dependant on the Treasury bill rate for each successive week. Number 400 CHAIRMAN VEZEY agreed the interest rate statutes must be rewritten, but felt HB 226, as written, was nothing more than giving the state license to steal. He noted the state payment of simple interest on overpaid taxes over a period of years was unfair, since the debt of the common person is compounded over that time. He also noted the rate would favor guilty parties who underpaid their taxes, and asked if anyone knew how to borrow money at the Treasury bill rate except for the government. Number 435 MR. GELDHOF replied the Treasury bill rate was chosen because it is used by the federal government. Number 440 CHAIRMAN VEZEY's experience was that the rate used is actually the cost of money to the government. Number 445 MR. GELDHOF stated the administration was not married to the Treasury bill rate, as long as the rate finally chosen was market based. Number 450 CHAIRMAN VEZEY stated under the scenario presented, the state could whittle away at a debt by applying simple interest to a compounded debt it owes while stalling a case in court. Number 460 MR. GELDHOF explained it would be difficult for clerks to deal with compound interest rates, and that was why the administration chose a simple interest solution. Number 470 CHAIRMAN VEZEY perceived the state was only asking for a change in the system because of a poor choice earlier. He noted under an old system, the state paid seven percent, then paid 10.8% when the rest of the market was at 12%, and now that the money market has dropped interest rates, the state wants to address compound interest debts with simple interest rates. Number 485 MR. GELDHOF advised people could build compounded interest rates into contracts with the state if they wished. Number 490 CHAIRMAN VEZEY had additional objections to HB 226 as drawn up, noting the state could condemn someone's property, then be taken to court, and while the case was pending, the debt on the property would outstrip the amount owed on the property even if the state lost its case. Number 499 REPRESENTATIVE OLBERG noted the two percent add-on to the Treasury bill rate in court and tax settlements under HB 226, and stated he would like that deal himself, since he was paying 12.5% on his land. He favored a market based rate. Number 524 CHAIRMAN VEZEY agreed with the concept of a market based interest rate that would be fair to both sides of any disagreement, but objected to the use of the 52-week Treasury bill rate as the base interest rate. He stated the Treasury bill rate was not consistent with what an average citizen could expect in the "real world." Number 534 MR. GELDHOF said if there was an objection to the Treasury bill rate, he felt the administration would not object to another market based rate instead. Number 540 CHAIRMAN VEZEY saw two options: Either the administration could come up with a new proposal, or work with the committee on a committee substitute version. MR. GELDHOF expressed a willingness to work on a new version of HB 226. Number 570 REPRESENTATIVE OLBERG volunteered for a subcommittee to work on the bill, saying he saw a need to find a fair interest base. CHAIRMAN VEZEY stated he would appoint a subcommittee later. Number 595 LARRY MEYERS, DIRECTOR OF INCOME AND EXCISE AUDIT DIVISION, DEPARTMENT OF REVENUE, testified on one section of HB 226, Section three. He said there was a great difference paid out by the state in case of overpayment under current law and that provided by HB 226, but there was actually no difference if such an overpayment was treated as a correction in the tax return. Number 636 CHAIRMAN VEZEY asked if under the old law it would be an advantage to overpay one's taxes because the government's interest rate was better than most banks. Number 650 MR. MEYERS thought that was a distinct possibility. Number 655 CHAIRMAN VEZEY asked the difference in the interest rates for under- and overpayments under current law. MR. MEYERS stated under current law, there was none. Number 663 CHAIRMAN VEZEY preferred to see a difference of some kind for those who underpaid their taxes, saying there should be some sort of penalty. He stated there should not be an incentive for anyone to overpay their taxes as well. Number 681 REPRESENTATIVE OLBERG inquired into the current rates being paid. Number 685 MR. MEYERS advised the rate for overpayments, corrections and earnings is currently the short-term discount rate plus three percent, or 11%, whichever is greater. Under HB 226, that would change to the discount rate plus two percent, or 11%, whichever was greater, he added. TAPE 93-37, SIDE B Number 004 REPRESENTATIVE OLBERG perceived the state was trying to build a spread for the interest rates, with the five percent add-on charged going for administrative costs. Number 030 CHAIRMAN VEZEY felt it would be at least a week before HB 226 would see any further discussion in committee, and asked Mr. Meyers if he could provide the figure the federal government used in over and underpayment of taxes. Number 048 MR. MEYERS stated the federal government charged a one percent penalty for those who underpaid their taxes. Number 069 CHARLES "CHRIS" CHRISTENSEN III, STAFF COUNSEL FOR THE ALASKA COURT SYSTEM, opposed HB 226, which he said was unusual for the court system to do, but necessary. He stated there was a series of technical problems with HB 226 and the court could not support the bill because it would place undue strain on the system's clerical staff with no increase in personnel. He stated the work load to track down and then distribute the interest rate to 58 court sites and 2,500 lawyers in the state would be enormous. He noted the court handles close to 15,000 cases a year, and stated providing the financial information for each case would be unfair to expect. Number 228 CHAIRMAN VEZEY perceived the creation of a miniature Federal Reserve in Alaska. Number 258 REPRESENTATIVE OLBERG thought the idea was good, and the interest rate itself was not the problem, but how it was created. MR. CHRISTENSEN stated it was the creation of the rate, and more importantly, how it was to be distributed through the system. Number 268 CHAIRMAN VEZEY called for testimony via teleconference. Number 278 KEN REITHER, AN EMPLOYEE OF EXXON USA, testified by teleconference from Anchorage in opposition to the disparity in the interest rates applied to the under- and overpayment of royalties. It appeared to him to be a six percent spread. Number 292 CHAIRMAN VEZEY expressed interest in hearing the business community's point of view, and announced the committee would defer action on HB 226. He then called a short at ease at 8:47 a.m. HB 192: ADVERTISING BY UNREGISTERED CONTRACTORS Number 319 CHAIRMAN VEZEY called the committee back to order at 8:54 a.m., read the title to SSHB 192, and called for its sponsor's statement. Number 325 REPRESENTATIVE ELDON MULDER, PRIME SPONSOR OF SSHB 192, stated past regulations prevented unregistered contractors from advertising their services unless they were certified tradesmen, but a subsequent court ruling struck those regulations down. He stated further that HB 192 would put the former regulations into statute, which would protect consumers from unscrupulous contractors. He advised SSHB 192 also tightens the "handyman" provisions in the regulation, which he said accounts for 50% of all unlicensed contractors' violations. REPRESENTATIVE MULDER explained the latest version also was amended to exclude publications from penalties because of periodicals like USA Today and the Wall Street Journal that are brought in from outside. Number 417 REPRESENTATIVE ULMER perceived the law would be unenforceable without the advertising restrictions. Number 440 CHAIRMAN VEZEY declared it did not matter if the state could penalize publishers, because the industry would police itself. He felt it would be in the best interest of licensed contractors to clean up the business, and that they would. He pointed out the latest version of SSHB 192 raised the maximum fine for violations from $1,000 to $10,000. Number 464 REPRESENTATIVE ULMER stated the industry might police itself better if the person turning in a violator was given part of the fine amount. Number 470 CHAIRMAN VEZEY was not adverse to that idea, but would not suggest it himself. Number 473 VICE CHAIRMAN PETE KOTT expressed concern about the $10,000 maximum fines, saying similar violations usually carried an average fine of $300. He was concerned such a high fine would constitute criminality and lead to full jury trials. Number 485 CHAIRMAN VEZEY pointed out it is standard procedure in most commercial law cases to impose large fines, often in the $10,000 range, and felt the state would be able to do so under HB 192. Number 503 REPRESENTATIVE GARY DAVIS had concerns about HB 192, but supported the larger fine. Number 505 CHAIRMAN VEZEY said the $10,000 level ought to be the minimum. Number 510 REPRESENTATIVE OLBERG MOVED ADOPTION of CSHB 192 (STA). There was no objection, and CSHB 192 (STA) WAS ADOPTED. Number 519 KARL LUCK, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT (DCED), said the DCED supported HB 192, but noted the need for several changes. He suggested changing Section one to include the possibility of municipal licenses being issued, and tightening the use of advertising in the yellow pages, since there was an exemption for directories in the latest version. Number 570 CHAIRMAN VEZEY had no problem with deleting lines five and six of section one. Number 587 REPRESENTATIVE OLBERG agreed with the deletion. He could envision the Yellow Pages with several listings after the exemption was given. Number 592 REPRESENTATIVE G. DAVIS concurred, saying the Yellow Pages would be a key area for small contractors to draw business from. Number 600 MR. LUCK also had concerns about the maximum fine amount, saying an opinion from state attorneys said any fine above the $3,000 amount might be determined as criminal instead of a misdemeanor. Number 620 CHAIRMAN VEZEY felt the legislature is moving toward stiffer penalties and incarceration standards of this magnitude, and the maximum fine is within the guidelines of that philosophy. Number 630 REPRESENTATIVE ULMER agreed with the Chairman, but asked for either a court opinion or an Attorney General's opinion to backup Mr. Luck's statements. Number 640 MR. LUCK stated there was no written opinion, but rather verbal comments from staff lawyers that led him to believe the large fine might be a problem. He went on to detail his concerns with Line 25 on page two of HB 192, in which the sale of non-permanent parts of a structure are permitted. He did not know what that meant. Number 657 CHAIRMAN VEZEY believed that referred to tools and equipment. Number 660 MR. LUCK asked the committee to define those terms in the final version of CSHB 192. He then took issue with paragraph eight of page two, saying the qualification of "handymen" would be hard to define without a contract. He asked for a definition of "minor, inconsequential, or casual" labor as mentioned in CSHB 192. Number 693 CHAIRMAN VEZEY felt it would be hard to legislate common sense of what "minor, inconsequential or casual" labor might be. He stated the idea was to allow small businessmen to get started while maintaining some control over the industry. Number 698 REPRESENTATIVE OLBERG stated if the department sought only minor changes, perhaps the committee should hold HB 192. TAPE 93-38, SIDE A Number 000 MR. LUCK felt the "handyman" work threshold of $2,500 to $5,000 would be hard for the state to enforce with current personnel levels. CHAIRMAN VEZEY felt the state should not be trying to enforce that anyway, because the industry would probably do the enforcement. Number 050 MR. LUCK stated it would still require more people even if the industry policed itself, because complaints would still have to be handled by state commerce officers. He estimated it would take at least 12 people statewide to handle the investigation of complaints. Number 092 CHAIRMAN VEZEY noted Mr. Luck's suggestions, summarized the amendments the committee might want to make, then entertained a motion to formalize the latest version of CSHB 192. (A copy of the amendments may be found in the House State Affairs Committee Room, Capitol Room 102, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) Number 111 REPRESENTATIVE OLBERG MOVED ADOPTION of the AMENDMENTS. Members took some moments to familiarize themselves with the language changes. Number 182 CHAIRMAN VEZEY MOVED the PROPOSED AMENDMENTS. There were no objections; the AMENDMENTS to CSHB 192 (STA) WERE ADOPTED. REPRESENTATIVE OLBERG MOVED PASSAGE of CSHB 192 (STA) from committee, and asked for unanimous consent. Without objections, THE MOTION CARRIED. HB 46: STATE-PAID TRAVEL MILEAGE CREDITS Number 205 CHAIRMAN VEZEY introduced a new CSHB 46, and asked its acceptance for purposes of discussion. REPRESENTATIVE OLBERG MOVED ADOPTION of CSHB 46 (STA). There was no objection, and CSHB 46 (STA) WAS ADOPTED. CHAIRMAN VEZEY explained the changes in CSHB 46 (STA), which included the deletion of jail terms for those who violate the law; the recognition that federal law codifies the airlines frequent flier programs as property of the airlines; and the deletion of section two and its subsequent replacement with a section that says state employees are no longer allowed to accept frequent flier mileage. Number 244 REPRESENTATIVE G. DAVIS noted the last time HB 46 was discussed, a union official claimed the mileage program was included in a formal labor agreement, and asked for verification that was true. Number 254 CHAIRMAN VEZEY noted the papers provided the committee were unsigned, and subsequent discussions with the Department of Administration led to the realization no such agreement occurred. Number 262 REPRESENTATIVE G. DAVIS was concerned about the unsigned document and wondered if other members were concerned about the veracity of the union official's testimony. CHAIRMAN VEZEY stated there was no evidence the agreement was ever made. Number 277 REPRESENTATIVE ULMER wanted the point clarified for the record, and wanted to know from the Department of Administration's Commissioner, Nancy Usera, if such an agreement ever existed, rather than depend on a single phone call. It seemed to her CSHB 46 (STA) simply ruled employees could not claim credit for mileage, with no provision for the state getting that credit, which seemed to contradict the original intent of HB 46. Number 312 CHAIRMAN VEZEY stated the committee staff requested any documentation that might prove the existence of frequent flier mileage being included in labor agreements with the state, and none was produced by the Department of Administration. He went on to state CSHB 46 (STA) simply paved the way for state agencies to collect frequent flier mileage because of the incentive provided the airlines. Number 340 REPRESENTATIVE OLBERG stated that since Juneau is down to one major airline serving the city, and if employees not getting the mileage would help that one airline economically, he would opt for helping the airline. Number 356 REPRESENTATIVE ULMER understood Representative Olberg's point, but says with the prices Alaska Airlines charges in Southeast Alaska, she feels the community has done enough economically for the airline. REPRESENTATIVE G. DAVIS shared Representative Ulmer's concerns, and stated CSHB 46 (STA) needed a statement of intent that the state should eventually collect the frequent flier mileage. Number 393 REPRESENTATIVE OLBERG stated it was appropriate to include a statement saying CSHB 46 (STA) was the first step for the state collecting the mileage. Number 400 CHAIRMAN VEZEY felt it would be a simple matter for the Department of Administration to find a way to collect the mileage, and was not opposed to an amendment for intent language. Number 416 REPRESENTATIVE G. DAVIS replied he would get another chance at CSHB 46 (STA) in the House Transportation Committee, and would address his concerns there. He then MOVED PASSAGE of CSHB 46 (STA). Number 423 VICE CHAIR KOTT hoped the House Transportation Committee would also look at ways to claim travel mileage from both hotel and car rentals during its deliberations. Number 448 The House State Affairs Committee Substitute to HB 46 was PASSED from committee by a 5-1 vote, with Representative Ulmer voting NO. ADJOURNMENT Number 460 CHAIRMAN VEZEY adjourned the committee at 10:05 a.m.