Legislature(1995 - 1996)
03/02/1995 09:15 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 1
An Act relating to state implementation of federal
statutes.
Co-chairman Halford directed that SB 1 be brought on for
discussion. SENATOR TAYLOR, sponsor of the legislation,
noted that the bill was not originally referred to Finance.
Referral was made when the legislation picked up additional
fiscal notes. The bill was introduced as companion
legislation to SJR 7--the Tenth Amendment resolution which
has already passed the legislature and been transmitted to
the Governor. That resolution demands that Congress stop
passing federal mandates which exceed Congressional
authority under the Tenth Amendment. SB 1 represents an
attempt to identify federal mandates, both statutory and
regulatory, which conflict with state policy or exceed state
constitutional limitations. Similar legislation, passed in
Colorado last year, declares that state government has an
obligation to the public to do what is necessary to protect
the right of citizens of the state while minimizing or
eliminating additional cost or regulatory burden.
To accomplish the foregoing goal, SB 1 requires annual
review of each Congressionally mandated program by the
executive branch. An annual report to the Governor and
Legislative Budget and Audit Committee would set forth
conclusions and make recommendations for changes in federal
law to make programs more cost effective and consistent with
state policy. A determination could also be made by the
Dept. of Law concerning whether the mandate exceeds federal
authority.
Sec. 1 of the bill contains findings of urgent need to
modify certain mandates because implementation of the
mandates wastes the financial resources of the state,
municipalities, and residents, and federal regulators often
do not understand the needs and priorities of Alaskans. The
bill provides for legislative review of federal mandates.
The Legislative Budget and Audit Committee would be charged
with making recommendations to the Governor on the need to
seek a change in federal statutes, regulations or policies
suited to state needs, suggest changes in the impacted state
program to implement the mandate more efficiently, or to
pursue legal challenge to the validity of the mandate.
Passage of SB 1 will add credence to passage of SJR 7.
Senator Taylor next referenced fiscal notes submitted by
departments, noting the Dept. of Health and Social Services'
claim it will need a $77.0 a year special assistant to
review federal mandates. The Dept. of Public Safety
requests $6.0 to establish a format and time table, seek
field input, compile responses, draw conclusions, and issue
a report. The Senator voiced his belief that the type of
review envisioned by SB 1 is already part of the budget
process. It is difficult to believe that departments do not
review mandated programs with an eye toward cost
effectiveness and inconsistency with state policy.
Senator Taylor acknowledged that departments do not
presently review programs to determine if they exceed
constitutional authority. The intent of SB 1 is to flag a
program for later review at the will of the Legislative
Budget and Audit Committee rather than to make a
determination at the department level. In that respect, SB
1 may need to be amended to strengthen legislative review.
Senator Taylor voiced his belief that much of the work the
proposed bill would generate at the department level is
already being done.
Co-chairman Halford asked the sponsor for a recommendation
on fiscal notes to accompany the bill. Senator Taylor
recommended a zero note. He reiterated that work
contemplated by the bill should be ongoing at the present
time, particularly in light of passage of SJR 7.
Senator Zharoff directed attention to page 2, line 13, and
noted language referencing "head of another agency."
Senator Taylor suggested that the legislature would want to
know if the Alaska Housing Finance Corporation, AIDEA, the
railroad, etc. are adversely impacted by federal
legislation. As an example, he cited the Americans with
Disabilities Act.
Senator Zharoff referenced a substantial fiscal note from
the Dept. of Health and Social Services and suggested that a
number of federal mandates impact the department and
necessitate substantial review. Senator Taylor concurred.
Senator Rieger asked if mandatory quarterly tax withholdings
or social security payments would be included within the
definition of federal mandates. Senator Taylor responded
that the definition is generic and would include areas
mentioned by Senator Rieger. The sponsor advised that those
items would likely be included in reports to the
legislature.
Senator Sharp voiced support for the legislation. He noted
concern that the state is often attracted to federal money,
and it provides the necessary match without knowing what the
overall economic impact will be, either long or short term.
The proposed bill would force an economic evaluation, a
determination of whether the program is necessary, and
evaluation of future impact.
Senator Taylor pointed to over $200 million in federal
mandates, grants, and incentive programs within the Dept. of
Education and noted that the department did not request
additional moneys for review and evaluation.
Senator Phillips MOVED that SB 1 pass from committee with
individual recommendations and the zero fiscal notes.
Senator Zharoff OBJECTED, voicing concern regarding the
burden that would be placed upon the Dept. of Health and
Social Services. He then REMOVED his OBJECTION.
ELMER LINDSTROM, Special Assistant, Dept. of Health and
Social Services, came before committee. He noted the wide
variation in fiscal notes submitted by departments and
suggested that it reflects a wide variation in assumptions
of what the bill would entail. He explained that since work
within the Dept. of Health and Social Services involves a
great deal of federal activity, the department assumes it
would be reviewing each federal dollar and each discrete
program as a federal mandate and reporting new and
additional information beyond historical analysis. If it is
the intent of the sponsor and the legislature that the bill
will merely entail a "recapitulation" of existing
information and efforts, there will be no cost.
Senator Donley voiced concern that passage of the proposed
bill would impose a mandate on state departments without
providing the necessary resources to do the work. He voiced
support for the bill but not for zeroing of fiscal notes.
The legislature may not get the results it seeks without
making some accommodation or providing some resources.
Co-chairman Halford voiced his belief that departments are
already doing what the proposed legislation requests. The
Dept. of Health and Social Service, in particular, must
analyze federal programs to maximize federal share, etc.
Co-chairman Halford called for objections to passage of the
bill. None were forthcoming. SB 1 was REPORTED OUT of
committee with a zero Senate Finance Committee fiscal note
covering all departments. Co-chairmen Halford and Frank and
Senators Phillips and Sharp signed the committee report with
a "do pass" recommendation. Senators Donley, Rieger, and
Zharoff signed "no recommendation."
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