Legislature(1997 - 1998)

03/21/1997 09:03 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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       SENATOR  WARD  spoke  in  support of  proposed  changes                 
       regarding  the  make-up  of the  task  force.   SENATOR                 
       DONLEY MOVED Amendment #1.  SENATOR  TORGERSON objected                 
       for the purpose of discussion.  SENATOR DONLEY WITHDREW                 
       Amendment #1  and MOVED  Amendment #2.    There was  no                 
       objection and Amendment #2 was ADOPTED.  SENATOR DONLEY                 
       MOVED  CSSB  68(FIN)  from  committee  with  individual                 
       recommendations.   Without objection, CSSB  68(FIN) was                 
       REPORTED OUT with updated fiscal notes from Legislative                 
       Affairs Agency (17.9), Office of Management  and Budget                 
       (indeterminate)    and    Office   of    the   Governor                 
       (indeterminate).                                                        
  SENATE BILL NO. 68                                                           
  "An Act  relating to  the Task  Force on  Privatization; and                 
  providing for an effective date."                                            
                                                                               
  COCHAIR SHARP announced that  SB 68 would be taken  up next.                 
  He noted  there were two  proposed amendments and  asked for                 
  comment from the bill sponsor.                                               
                                                                               
  SENATOR JERRY WARD,  Sponsor, testified  that he had  worked                 
  with SENATOR DONLEY  and felt the concept of the legislation                 
  was improved.   The  concept originally  was taken  from the                 
  Alaska State Chamber  of Commerce.   He believed  amendments                 
  made in the  State Affairs Committee  as well the  currently                 
  proposed  amendments would improve  the legislation,  and he                 
  was in concurrence.  His intent with the legislation was not                 
  to  hurt  public service  by  taking a  hatchet  approach to                 
  privatization,  but to  look  at it  in  a businesslike  and                 
  professional manner.                                                         
                                                                               
  SENATOR DONLEY MOVED Amendment #1 which placed a fiscal note                 
  on  the bill  for one  staff  person in  FY 98  and  a half-                 
  position in FY 99.  He believed  the task force would have a                 
  major undertaking  and there  was no  provision  for how  it                 
  would be  staffed.  He  believed the legislative  budget had                 
  been dramatically reduced over the last several years to the                 
  extent  that  existing  staff levels  could  not  handle the                 
  workload of the task force.                                                  
                                                                               
  SENATOR TORGERSON  objected for  the purpose  of discussion.                 
  He called attention to another  fiscal note from Legislative                 
  Affairs Agency  (LAA) for $28,000 and asked  if Amendment #1                 
  would replace that  fiscal note.   SENATOR DONLEY  responded                 
  that  it  would  be in  addition  to  the  LAA fiscal  note.                 
  SENATOR  TORGERSON  summarized that  the  cost would  now be                 
  $120,000 and suggested the staff position be privatized.                     
                                                                               
  SENATOR WARD agreed  and stated his  original intent was  to                 
  use existing staff as much as possible.  He also agreed with                 
  SENATOR DONLEY that it was a major undertaking because there                 
  are many parts of  government, and none of the  other states                 
  he researched had tried to do it with existing staff.                        
                                                                               
  SENATOR PARNELL  stated he  would not  support Amendment  #1                 
  because he believed the sponsor was clear in prior testimony                 
  that it would not require additional  staff.  Also, based on                 
                                                                               
                                                                               
  his  experience  with  the   Long-Range  Financial  Planning                 
  Commission, OMB would bring whatever  resources to bear that                 
  needed to be brought, and the legislature could do the same,                 
  although they could  not match OMB's  resources.  Also,  the                 
  chair  would typically  have full  and exclusive use  of the                 
  staff person.  He reiterated that he opposed the amendment.                  
                                                                               
  SENATOR DONLEY asked if a full-time position had been funded                 
  for the  commission.   SENATOR PARNELL  confirmed and  cited                 
  that experience as  reason for  opposition to Amendment  #1.                 
  SENATOR DONLEY continued discussion about staff workload.                    
                                                                               
  SENATOR TORGERSON stated  his position that  full-time staff                 
  would not be needed,  but felt a fiscal adjustment  would be                 
  needed if the  next amendment was  adopted, and he would  be                 
  supportive of that.                                                          
                                                                               
  SENATOR DONLEY WITHDREW his motion to adopt Amendment #1 and                 
  stated  his hope  that  leadership  would devote  sufficient                 
  resources to the task force.   He didn't believe Legislative                 
  Finance had the capability to coordinate the  task force and                 
  if someone was not designated, it wouldn't get done right.                   
                                                                               
  SENATOR DONLEY MOVED  Amendment #2.  COCHAIR  SHARP objected                 
  for the purpose  of an explanation.   SENATOR DONLEY  stated                 
  there was extensive discussion at the last meeting about the                 
  make up of the  task force and previous experience  with the                 
  Long  Range  Fiscal  Planning Commission  led  them  to feel                 
  under-represented at the  table.   Just having one  majority                 
  member  from both the  House and  Senate would  continue the                 
  same problem.  Amendment #2 would add an additional majority                 
  member from  both the  House and  Senate  and an  additional                 
  person that the  governor could appoint.   Two of the  three                 
  positions the  governor would  be appointing  would be  from                 
  workers and one of those would be white collar and one would                 
  be blue collar.   That would be defined  as somebody who was                 
  active  in trades, representing trade  type work. He ran the                 
  language by several groups  of people and no one  could come                 
  up  with  anything  better  so  far,  so  it  seemed  to  be                 
  acceptable  to  most  people  out   there.    The  amendment                 
  increased the task force to  thirteen. COCHAIR SHARP removed                 
  his objection.                                                               
                                                                               
  SENATOR PARNELL stated  his earlier  concern that they  were                 
  guaranteeing  a place at the table for people with financial                 
  interests in  the outcome.   They  weren't guaranteeing  any                 
  private sector  seats, but labor and  legislative membership                 
  was guaranteed.   His understanding  was that by  increasing                 
  the number of  labor representatives  the governor would  be                 
  appointing, it  would free up the president and speaker from                 
  having that pressure exerted on  them and they could appoint                 
  some public members  with interest  on the other  side.   He                 
  reiterated his main concern that there was no  guarantee for                 
  private sector involvement even though the task force was to                 
                                                                               
                                                                               
  look at privatization.                                                       
                                                                               
  COCHAIR SHARP asked  if there  was additional discussion  or                 
  objection  to  adopting  Amendment #2.    There  being none,                 
  Amendment #2 was ADOPTED.  COCHAIR  SHARP asked that the LAA                 
  fiscal note be updated according to the amendment.                           
                                                                               
  SENATOR  DONLEY  MOVED  CSSB  68(FIN)  from  committee  with                 
  individual recommendations.  Without objection, CSSB 68(FIN)                 
  was REPORTED OUT with updated  fiscal notes from Legislative                 
  Affairs  Agency  (17.9),  Office  of  Management  and Budget                 
  (indeterminate) and Office of the Governor (indeterminate).                  

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