Legislature(1999 - 2000)

04/17/2000 06:21 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 418(RLS)                                                                                
"An Act designating certain receipts as program                                                                                 
receipts, appropriations of which are not made from                                                                             
the unrestricted general fund; relating to the                                                                                  
establishment of an administrative cost charge for the                                                                          
state's role in the community development quota                                                                                 
program; and providing for an effective date."                                                                                  
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate                                                                          
Finance Committee.                                                                                                              
                                                                                                                                
Co-Chair Torgerson directed member's attention to a                                                                             
proposed committee substitute, SCS CS HB 418, 1-LS1500\V.                                                                       
He noted that the language on page two of this committee                                                                        
substitute, relating to use of program receipts, is new. He                                                                     
added that a proposed amendment makes technical corrections                                                                     
and adds more programs to the list.                                                                                             
                                                                                                                                
REPRESENTATIVE NORM ROKEBERG, Chair, House Labor and                                                                            
Commerce Committee, testified to the bill. He stated that                                                                       
the bill is a result of his and other members of the House                                                                      
committee's frustrations with occupational licensing. He                                                                        
explained that many of the state's licensing boards and                                                                         
commissions want broader authority. However, he said the                                                                        
finance committees of both houses prohibit this because of                                                                      
the impact of any increase in activities of these boards                                                                        
and commissions would have on the state's fiscal gap.  This                                                                     
he shared is because increased costs would have to be paid                                                                      
for from the general fund.                                                                                                      
                                                                                                                                
Representative Rokeberg gave an example of the Board of                                                                         
Nursing that received a $150,000 federal grant to establish                                                                     
an outreach program for children. This grant expired, he                                                                        
said because the state was unable to provide additional                                                                         
necessary funds.                                                                                                                
                                                                                                                                
Representative Rokeberg gave another example of the members                                                                     
of the Board of Architects who wish to participate in                                                                           
committees on the national level. However, he said that                                                                         
because of the inability for the board to raise its fees,                                                                       
the board is unable to secure funds for travel costs.                                                                           
                                                                                                                                
Representative Rokeberg stressed that the legislature's                                                                         
attempts to reduce general fund spending should not reflect                                                                     
on the boards and commissions and those professional                                                                            
licensees that operate in the state. He asserted that the                                                                       
boards and commissions must be self-supported by the                                                                            
licensing fees. Therefore, he said, they need the ability                                                                       
to increase the fees as necessary.                                                                                              
                                                                                                                                
Representative Rokeberg noted the House Finance Committee                                                                       
added provisions to the bill to include the Alaska Seafood                                                                      
Marketing Institute (ASMI), the dive fishery and Department                                                                     
of Community and Economic Development programs. He stated                                                                       
he supported these additions.                                                                                                   
                                                                                                                                
Representative Rokeberg pointed out that this bill passed                                                                       
through the House of Representatives with no objection.                                                                         
                                                                                                                                
Representative Rokeberg assured that fee support services                                                                       
(FSS) are not removed from the budget, but just relocated                                                                       
to another category.                                                                                                            
                                                                                                                                
Senator P. Kelly moved to adopt SCS CS HB 418, 1-LS1500\V                                                                       
as a workdraft.                                                                                                                 
                                                                                                                                
There was no objection and the committee substitute was                                                                         
ADOPTED.                                                                                                                        
                                                                                                                                
Amendment #1: This amendment inserts "receipts of" on page                                                                      
2, lines 6 and 19 of the committee substitute. The amended                                                                      
language reads as follows.                                                                                                      
                                                                                                                                
 "(DD) receipts of the Alaska Vocational                                                                                        
Technical Center;                                                                                                               
 .                                                                                                                              
 (KK) receipts of the Alaska Police Standards                                                                                   
Council;"                                                                                                                       
                                                                                                                                
The amendment also adds two subsections to Section 1.                                                                           
                                                                                                                                
 "(QQ) receipts of the Department of                                                                                            
Corrections from the inmate telephone system;                                                                                   
 (RR) receipts of the Department of Public                                                                                      
Safety from the Alaska automated fingerprint                                                                                    
system under AS 44.41.025(b);"                                                                                                  
                                                                                                                                
Co-Chair Parnell moved for adoption.                                                                                            
                                                                                                                                
Co-Chair Torgerson explained the first two changes are                                                                          
technical and proposed at the recommendation of the                                                                             
Division of Legislative Finance.                                                                                                
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Senator Phillips asked if the Division of Lands program                                                                         
receipts were considered for inclusion on this list.                                                                            
                                                                                                                                
Co-Chair Torgerson responded that program was addressed in                                                                      
SB 283. He noted the proposed Amendments #2 and #3 were                                                                         
addressed in other legislation.                                                                                                 
                                                                                                                                
Co-Chair Torgerson stressed that this committee substitute                                                                      
has nothing to do with the Majority's goal to reduce $30                                                                        
million in general fund spending and is just a fund source                                                                      
change. He assured that this is not a "smoke and mirrors                                                                        
change".                                                                                                                        
                                                                                                                                
Senator Phillips asked if a representative from Department                                                                      
of Transportation and Public Facilities was present to tell                                                                     
him if any highway facilities other than the soon to be                                                                         
completed, Whittier tunnel charge tolls.                                                                                        
                                                                                                                                
Co-Chair Torgerson replied that the Whittier Tunnel is the                                                                      
only toll-operated facility in the state and that this                                                                          
passage is expected to be self-sustained.                                                                                       
                                                                                                                                
[Note: The following amendment was considered out of                                                                            
numerical order.]                                                                                                               
                                                                                                                                
Amendment #4: This amendment deletes the language on page 1                                                                     
lines 9-11. The language reads as follows.                                                                                      
                                                                                                                                
  "(Y) receipts from the seafood marketing                                                                                      
assessment under AS 16.51.120 - 16.51.170, the salmon                                                                           
marketing tax under AS 43.76.110 - 43.76.130, and                                                                               
other receipts of the Alaska Seafood Marketing                                                                                  
Institute;"                                                                                                                     
                                                                                                                                
Senator Donley moved for adoption and expressed concern                                                                         
about Outside interests governing ASMI that have not been                                                                       
sufficiently responsive or forthcoming with the                                                                                 
legislature. He wanted the legislature to maintain scrutiny                                                                     
over this board's operations especially because so much of                                                                      
the board's activities occur out of state.                                                                                      
                                                                                                                                
Co-Chair Torgerson pointed out that each of the boards and                                                                      
commissions are subject to annual appropriation and                                                                             
therefore, the appropriation process is not circumvented by                                                                     
this legislation.                                                                                                               
                                                                                                                                
Senator Leman objected to the amendment, saying ASMI is                                                                         
fully supported by a tax that the fishermen agreed upon for                                                                     
the purpose of marketing their product. He stressed that                                                                        
whether or not the legislature is convinced the board's                                                                         
actions are entirely appropriate, is a matter that should                                                                       
be addressed separately.                                                                                                        
                                                                                                                                
Co-Chair Torgerson added that he has seen ASMI's budget                                                                         
jump from $3 million to $10 million, but noted this is due                                                                      
primarily to federal funds. He said he also opposes the                                                                         
amendment.                                                                                                                      
                                                                                                                                
Senator P. Kelly expressed that he did not think the                                                                            
legislature could force ASMI to be any more responsive by                                                                       
removing it from this legislation. The only result, he said                                                                     
is the state is "still punished by their success" since the                                                                     
legislature is faced with increased general fund spending                                                                       
to support the board's growth.                                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Green, Senator Phillips and Senator                                                                           
Donley                                                                                                                          
                                                                                                                                
OPPOSED: Senator Adams, Senator Wilken, Senator P. Kelly,                                                                       
Senator Leman, Co-Chair Parnell and Co-Chair Torgerson                                                                          
                                                                                                                                
The motion FAILED (3-6)                                                                                                         
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Amendment #2: This amendment inserts a new subsection to                                                                        
Section 1 of the House Rules committee substitute as                                                                            
follows.                                                                                                                        
                                                                                                                                
 "(BB) receipts of the Department of Public                                                                                     
Safety under AS 44.41.025(b);"                                                                                                  
                                                                                                                                
This amendment was NOT OFFERED since the changes were                                                                           
contained in the committee substitute.                                                                                          
                                                                                                                                
Amendment #3: This amendment inserts a new subsection to                                                                        
Section 4 of the House Rules committee substitute as                                                                            
follows.                                                                                                                        
                                                                                                                                
 (f) The department shall not assess nor collect                                                                                
administrative charges under this section from new CDQ                                                                          
groups, representing communities not eligible for the                                                                           
CDQ program as of the effective date of this Act, for                                                                           
a period of two years from the actual award of fishery                                                                          
quota to that newly formed CDQ group."                                                                                          
                                                                                                                                
Senator Adams moved for adoption. Co-Chair Torgerson                                                                            
objected for an explanation.                                                                                                    
                                                                                                                                
Senator Adams stated that this amendment incurs no cost to                                                                      
the state. He spoke of attempts to establish a CDQ in the                                                                       
area from Kotzebue to Point Hope, which this amendment                                                                          
addresses, but that federal approval is still required.                                                                         
                                                                                                                                
Co-Chair Torgerson asked if this provision was adopted in                                                                       
earlier Committee action.                                                                                                       
                                                                                                                                
Senator Adams replied that he presented the issue but no                                                                        
action was yet taken.                                                                                                           
                                                                                                                                
Representative Rokeberg shared that the House Labor and                                                                         
Commerce Committee had adopted a similar amendment but the                                                                      
House Finance Committee removed the language. He thought                                                                        
the matter has merit and saw no reason to oppose this                                                                           
amendment.                                                                                                                      
                                                                                                                                
KEVIN BROOKS, Director, Division of Administrative                                                                              
Services, Department of Fish and Game stated the department                                                                     
does not oppose the amendment. [Statement was made out of                                                                       
the range of the recording equipment.]                                                                                          
                                                                                                                                
JEFF BUSH, Deputy Commissioner, Department of Community and                                                                     
Economic Development testified that the department's                                                                            
position on the amendment is neutral. He clarified that the                                                                     
Department of Community and Economic Development oversees                                                                       
the CDQ program rather than the Department of Fish and                                                                          
Game.                                                                                                                           
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Co-Chair Parnell offered a motion to move from Committee,                                                                       
SCS CS HB 418, 1-LS1500\V as amended with accompanying zero                                                                     
fiscal notes from the Department of Revenue and the                                                                             
Department of Health and Social Services.                                                                                       
                                                                                                                                
AT EASE 8:49 PM / 8:50 PM                                                                                                       
                                                                                                                                
Co-Chair Parnell moved to withdraw his motion to report the                                                                     
bill from Committee.                                                                                                            
                                                                                                                                
By unanimous consent, the motion was WITHDRAWN.                                                                                 
                                                                                                                                
Co-Chair Parnell moved to give the Division of Legal and                                                                        
Research Services technical direction to insert the                                                                             
appropriate department names to "(QQ)" and "(RR)" as added                                                                      
to the bill by Amendment #1. [Amendment language shown                                                                          
above contains these changes.]                                                                                                  
                                                                                                                                
There was no objection and the motion was ADOPTED.                                                                              
                                                                                                                                
Co-Chair Parnell re-offered his motion to move from                                                                             
Committee, SCS CS HB 418, 1-LS1500\V as amended with                                                                            
accompanying zero fiscal notes from the Department of                                                                           
Community and Economic Development, Occupational Licensing                                                                      
component and ASMI plus new zero fiscal note from the                                                                           
Department of Fish and Game.                                                                                                    
                                                                                                                                
Without objection the bill MOVED from Committee.                                                                                
                                                                                                                                

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