Legislature(1999 - 2000)

05/04/1999 01:55 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HOUSE FINANCE COMMITTEE                                                                                                         
May 4, 1999                                                                                                                     
1:55 P.M.                                                                                                                       
                                                                                                                                
TAPE HFC 99 - 117, Side 1.                                                                                                      
TAPE HFC 99 - 117, Side 2.                                                                                                      
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Mulder called the House Finance Committee meeting                                                                      
to order at 1:55 P.M.                                                                                                           
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Therriault   Representative Foster                                                                                     
Co-Chair Mulder    Representative Grussendorf                                                                                   
Representative G. Davis  Representative Kohring                                                                                 
Representative Austerman  Representative Moses                                                                                  
Representative J. Davies  Representative Williams                                                                               
                                                                                                                                
Representative Con Bunde was not present for the meeting.                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Annalee McConnell, Director, Office of Management and                                                                           
Budget, Office of the Governor; Jack Kreinheder, Senior                                                                         
Policy Analyst, Office of Management and Budget; Mike                                                                           
Tibbles, Staff, Co-Chair Therriault; John Cyr, President,                                                                       
NEA-Alaska, Juneau; Teresa Williams, (Testified via                                                                             
Teleconference), Assistant Attorney General, Fair Business                                                                      
Practices Section, Department of Law, Anchorage; Sanna                                                                          
Green, (Testified via Teleconference), Executive Director,                                                                      
Professional Teaching Practices Commission, (PTPC),                                                                             
Department of Education, Anchorage.                                                                                             
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
HB 40 An Act combining parts of the Department of                                                                               
Commerce and Economic Development and parts of the                                                                              
Department of Community and Regional Affairs by                                                                                 
transferring some of their duties to a new                                                                                      
Department of Commerce and Rural Development;                                                                                   
transferring some of the duties of the Department                                                                               
of Commerce and Economic Development and the                                                                                    
Department of Community and Regional Affairs to                                                                                 
other existing agencies; eliminating the                                                                                        
Department of Commerce and Economic Development                                                                                 
and the Department of Community and Regional                                                                                    
Affairs; relating to the Department of Commerce                                                                                 
and Rural Development and the commissioner of                                                                                   
commerce and rural development; adjusting the                                                                                   
membership of certain multi- member bodies to                                                                                   
reflect the transfer of duties among departments                                                                                
and the elimination of departments; creating the                                                                                
office of international trade and relating to its                                                                               
duties; and providing for an effective date.                                                                                    
                                                                                                                                
 CS HB 40 (FIN) was reported out of Committee with                                                                              
"no recommendation" and with a new fiscal note by                                                                               
Office of Management and Budget.                                                                                                
                                                                                                                                
HB 85 An Act relating to licensure and professional                                                                             
discipline of members of the teaching profession                                                                                
and providing for related penalties; relating to                                                                                
grounds for dismissal of a teacher; relating to                                                                                 
the Professional Teaching Practices Commission;                                                                                 
relating to limited immunity for procedures under                                                                               
the Educator Ethics Act; making conforming                                                                                      
amendments; and providing for an effective date.                                                                                
                                                                                                                                
 HB 85 was HELD in Committee for further                                                                                        
discussion.                                                                                                                     
                                                                                                                                
HB 95 An Act making and amending appropriations under                                                                           
art. IX, sec. 17c, Constitution of the State of                                                                                 
Alaska, from the constitutional budget reserve                                                                                  
fund; and providing for an effective date.                                                                                      
                                                                                                                                
 CS HB 95 (FIN) was reported out of Committee with                                                                              
a "do pass" recommendation.                                                                                                     
HOUSE BILL NO. 95                                                                                                               
                                                                                                                                
An Act making and amending appropriations under art.                                                                            
IX, sec. 17c, Constitution of the State of Alaska, from                                                                         
the constitutional budget reserve fund; and providing                                                                           
for an effective date.                                                                                                          
                                                                                                                                
Co-Chair Mulder advised Committee members that by taking                                                                        
action on the bill would remove the cap on the Capital                                                                          
Budget Reserve (CBR) fund.                                                                                                      
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,                                                                    
OFFICE OF THE GOVERNOR, stated that the increase to the                                                                         
Capital Budget Reserve (CBR) would have nothing to do with                                                                      
the proposed expenditure level.  She pointed out that oil                                                                       
prices are rapidly shifting and these expenditures would be                                                                     
left open-ended.                                                                                                                
                                                                                                                                
Co-Chair Mulder noted that passage of the bill would provide                                                                    
that the Administration would not have to distribute "pink                                                                      
slips".  Ms. McConnell agreed, noting that it would assure                                                                      
proper access authority to the CBR be available.  She added                                                                     
that funds borrowed from the CBR and not used would be                                                                          
returned at the end of the fiscal year.                                                                                         
                                                                                                                                
Representative Williams MOVED to adopt work draft, 1-                                                                           
GH1051\P, Cramer, 5/3/99, as the version before the                                                                             
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
Co-Chair Mulder MOVED a conceptual amendment which would                                                                        
appropriate $500 thousand dollars to the Department of Law                                                                      
for negotiating costs associated with the BP/Amoco-ARCO                                                                         
merger.  Additionally, there would be a $100 thousand dollar                                                                    
appropriation to the Legislative Council for costs                                                                              
associated with that merger.                                                                                                    
                                                                                                                                
Representative J. Davies inquired if there consideration had                                                                    
been made to add an appropriation for Y2K efforts.  Co-Chair                                                                    
Mulder noted that issue is being addressed on the Senate                                                                        
Floor.                                                                                                                          
                                                                                                                                
There being NO OBJECTION to the conceptual amendment, it was                                                                    
adopted.                                                                                                                        
                                                                                                                                
Representative Foster MOVED to report CS HB 95 (FIN) out of                                                                     
Committee with individual recommendations.  There being NO                                                                      
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CS HB 95 (FIN) was reported out of Committee with a "do                                                                         
pass" recommendation.                                                                                                           
HOUSE BILL NO. 85                                                                                                               
                                                                                                                                
An Act relating to licensure and professional                                                                                   
discipline of members of the teaching profession and                                                                            
providing for related penalties; relating to grounds                                                                            
for dismissal of a teacher; relating to the                                                                                     
Professional Teaching Practices Commission; relating to                                                                         
limited immunity for procedures under the Educator                                                                              
Ethics Act; making conforming amendments; and providing                                                                         
for an effective date.                                                                                                          
                                                                                                                                
SANNA GREEN, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE                                                                          
DIRECTOR, PROFESSIONAL TEACHING PRACTICES COMMISSION (PTPC),                                                                    
DEPARTMENT OF EDUCATION, ANCHORAGE, stated that the bill                                                                        
would enhance the State's ability to protect students and                                                                       
the integrity of educators by strengthening, streamlining,                                                                      
and consolidating licensure and discipline provisions for                                                                       
members of the teaching profession.                                                                                             
                                                                                                                                
The bill incorporates direction from the Board of Education                                                                     
to change a teacher "certificate" to a "license".  It would                                                                     
streamline current law by consolidating regulatory grounds                                                                      
for discipline into one statutory provision; allowing                                                                           
reciprocal action of an educator who had been disciplined in                                                                    
another jurisdiction, and clarifying the procedure for                                                                          
revoking the license of a person convicted of certain sex                                                                       
crimes.  In addition, the bill would add misrepresentation                                                                      
of material facts on an employment application as grounds                                                                       
for discipline.                                                                                                                 
                                                                                                                                
TERESA WILLIAMS, (TESTIFIED VIA TELECONFERENCE), ASSISTANT                                                                      
ATTORNEY GENERAL, FAIR BUSINESS PRACTICES SECTION,                                                                              
DEPARTMENT OF LAW, provided a sectional analysis of the                                                                         
proposed legislation.  She directed her remarks to the                                                                          
handout included in member's packets dealing with changes                                                                       
and deletions to the bill.  [Copy on File].                                                                                     
                                                                                                                                
 *Section 1 - Technical conforming change.                                                                                      
*Section 2 - New section creating statutory authority                                                                           
for mandatory criminal records check.                                                                                           
*Section 3 - New section addressing the compilation                                                                             
base for denial.                                                                                                                
                                                                                                                                
Representative J. Davies asked the statutory sights                                                                             
referenced in #1 & #2.  Ms. Williams replied that #1 - AS                                                                       
14.20.020 and that #2 is currently in existing law which                                                                        
would be moved to another place.                                                                                                
                                                                                                                                
Representative J. Davies asked what the Educator Ethics                                                                         
Commission was.  Ms. Williams explained that commission                                                                         
previously was referred to as the Professional Teaching                                                                         
Practices Commission.                                                                                                           
                                                                                                                                
Representative Foster questioned who paid for the "checks                                                                       
and balances" provided by the commission.  Ms. Williams                                                                         
explained that teachers pay for there own criminal record                                                                       
check.                                                                                                                          
                                                                                                                                
*Section 4 - New section which makes Administrative                                                                             
Procedures Act (APA) applicable to                                                                                              
review of denial.                                                                                                               
*Section 5 - Addresses clean up language.                                                                                       
*Section 6 - Speaks to the grounds for discipline.                                                                              
*Section 7 - Provides for the creation of the                                                                                   
Commission.                                                                                                                     
*Section 8 - Grants an executive director for the                                                                               
commission.                                                                                                                     
*Section 9 - Outlines the duties of the commission.                                                                             
*Section 10 - Speaks to the powers of the commission.                                                                           
*Section 11 - Addresses the applicability of the                                                                                
Administrative Procedure Act.                                                                                                   
*Section 12 - Allows increased or changed discipline                                                                            
as an option, based on hearing officers                                                                                         
factual findings.                                                                                                               
*Section 13 - A new section on confidentiality of                                                                               
investigative file.                                                                                                             
*Section 14 - Technical conforming changes.                                                                                     
*Section 15 - A new section containing penalties for                                                                            
teaching w/o required license and                                                                                               
unauthorized employment in the teaching                                                                                         
profession.                                                                                                                     
*Sections 16 - 25                                                                                                               
 These sections provide conforming                                                                                              
 language changes.                                                                                                              
                                                                                                                                
Representative Foster asked if there was a penalty for those                                                                    
person not licensed, claiming that they were and then                                                                           
teaching.  Ms. Williams replied that person could be charged                                                                    
with forgery, however, there is no specific provision                                                                           
addressing that concern.                                                                                                        
                                                                                                                                
Co-Chair Therriault questioned if there would be action                                                                         
taken against that individual by the school district for                                                                        
misrepresenting ownership of a license.  Ms. Williams                                                                           
suggested that the school district could create a civil                                                                         
action suit, however, they usually would not pursue that                                                                        
course of action because the guilty person probably would                                                                       
not have any income.  Additionally, they would need to prove                                                                    
"harm".  Representative J. Davies commented that the                                                                            
consequence would be that the person would lose their job.                                                                      
                                                                                                                                
JOHN CYR, PRESIDENT, NATIOANL EDUCATION ASSOCIATION (NEA-                                                                       
ALASKA), JUNEAU, asked Ms. Williams how many revocations                                                                        
there had been this year.  Ms. Williams commented that there                                                                    
had been five or six this year.  She noted that many                                                                            
revocations are to those people who leave their post without                                                                    
giving notice; also, there are the ones requested to leave                                                                      
for matters of sexual misconduct.                                                                                               
                                                                                                                                
Mr. Cyr stated that contrary to the opinion of the employees                                                                    
of PTPC, NEA-Alaska does not believe that the legislation is                                                                    
a clear rewrite of existing statute.  NEA-Alaska does not                                                                       
endorse the legislation in its present form. He spoke to                                                                        
sections which are problematic.  The first concern is on                                                                        
Page 7, Section 14.20.375 - Disciplinary actions.  NEA-                                                                         
Alaska believes that if there is going to be a commission,                                                                      
the burden of license revocation should fall upon the                                                                           
commission and not the commissioner. The other concern is                                                                       
listed on Page 9, Section (f).  Again, the playing field                                                                        
should be level and the commissioner should not need to be                                                                      
in concurrence with the teacher.  He pointed out that there                                                                     
is conflict throughout the bill and that NEA-Alaska does not                                                                    
believe that it is fair.                                                                                                        
                                                                                                                                
HB 85 was HELD in Committee for further consideration.                                                                          
HOUSE BILL NO. 40                                                                                                               
                                                                                                                                
An Act combining parts of the Department of Commerce                                                                            
and Economic Development and parts of the Department of                                                                         
Community and Regional Affairs by transferring some of                                                                          
their duties to a new Department of Commerce and Rural                                                                          
Development; transferring some of the duties of the                                                                             
Department of Commerce and Economic Development and the                                                                         
Department of Community and Regional Affairs to other                                                                           
existing agencies; eliminating the Department of                                                                                
Commerce and Economic Development and the Department of                                                                         
Community and Regional Affairs; relating to the                                                                                 
Department of Commerce and Rural Development and the                                                                            
commissioner of commerce and rural development;                                                                                 
adjusting the membership of certain multi- member                                                                               
bodies to reflect the transfer of duties among                                                                                  
departments and the elimination of departments;                                                                                 
creating the office of international trade and relating                                                                         
to its duties; and providing for an effective date.                                                                             
                                                                                                                                
MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, spoke                                                                      
to Amendment #11.  [Copy on File].  He explained that the                                                                       
amendment would change a section of the bill which indicates                                                                    
that the commissioner of the board may designate and                                                                            
additional person.                                                                                                              
                                                                                                                                
(Tape Change HFC 99 - 117, Side 2).                                                                                             
                                                                                                                                
Mr. Tibbles continued that if the commissioner is not able                                                                      
to sit in on a meeting, he must designate someone else from                                                                     
the Department to be present, and that person can not be a                                                                      
public member.                                                                                                                  
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #11.  There                                                                        
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #12.  [Copy on                                                                     
File].  Mr. Tibbles explained that the amendment would add a                                                                    
new subsection to the duties of the new department.  The                                                                        
amendment would insure that there is clear statutory                                                                            
authority for the CDQ program as authorized by the federal                                                                      
government.  There being NO OBJECTION, it was adopted.                                                                          
                                                                                                                                
JACK KREINHEDER, SENIOR POLICY ANALYST, OFFICE OF MANAGEMENT                                                                    
AND BUDGET, advised that the Administration does support the                                                                    
adopted amendments.                                                                                                             
                                                                                                                                
Ms. McConnell spoke to the new fiscal note by the Office of                                                                     
Management and Budget.  She pointed out that the primary                                                                        
savings would be to the out years.  The note shows the known                                                                    
personnel cost reductions during the initial implementation                                                                     
year.  Further reductions are anticipated after all                                                                             
organizational changes are completed, which will be                                                                             
reflected in the FY2001 operating budget.                                                                                       
                                                                                                                                
The fiscal note indicates initial capital implementation                                                                        
cost of $200 thousand dollars, a minimal amount for some                                                                        
employee movement to bring units together and necessary                                                                         
changes to computer/telephone configurations.  She added                                                                        
that additional funds will be needed in the second year.                                                                        
Also included is a $200 thousand general fund replacement of                                                                    
federal receipts in Rural Energy component.                                                                                     
                                                                                                                                
Ms. McConnell stated that Sec. 78(e) specifies that                                                                             
appropriations are to be transferred with the programs being                                                                    
relocated; all program funding is currently contained within                                                                    
the operating budget.  The cost savings indicated above are                                                                     
based on the following:                                                                                                         
                                                                                                                                
* There will be one less Commissioner and Executive                                                                             
Secretary;                                                                                                                      
* The vacant Administrative Services Director                                                                                   
position (DCRA) will be deleted; and                                                                                            
* Other administrative support costs will be reduced                                                                            
by downgrading or eliminating other positions.                                                                                  
                                                                                                                                
Co-Chair Therriault voiced concern that the fiscal costs had                                                                    
increased to $200 thousand dollars.  He requested a further                                                                     
breakdown from the Administration regarding the increased                                                                       
costs.  He noted that there would be plenty of time to make                                                                     
adjustments to the fiscal note; he did not want to hold the                                                                     
bill in Committee.                                                                                                              
                                                                                                                                
Representative Kohring MOVED to report CS HB 40 (FIN) out of                                                                    
Committee with individual recommendations and with the                                                                          
accompanying new fiscal note.  Representative J. Davies                                                                         
OBJECTED for the purpose of making a comment.                                                                                   
                                                                                                                                
Representative J. Davies advised that many of the changes                                                                       
incorporated into the bill make sense, however, if the                                                                          
primary savings is the elimination of a Commissioner, that                                                                      
should not be regarded as "efficiency in government", but                                                                       
rather a reduction in government services.  He stated that                                                                      
all the commissioners perform great services to the people                                                                      
of the State and that some services will be lost with this                                                                      
consolidation effort.  There will be less emphasis on some                                                                      
of the elements that the Department of Commerce and Economic                                                                    
Development and the Department of Community and Regional                                                                        
Affairs had before.  He reiterated that this is a "reduction                                                                    
in government but not greater efficiency within the system".                                                                    
                                                                                                                                
Representative J. Davies WITHDREW his OBJECTION to the                                                                          
motion to move the bill.  There being NO further OBJECTIONS,                                                                    
it was so ordered.                                                                                                              
                                                                                                                                
CS HB 40 (FIN) was reported out of Committee with "no                                                                           
recommendation" and with a fiscal note by the Office of                                                                         
Management and Budget,                                                                                                          
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 2:50 P.M.                                                                                              
                                                                                                                                
                                                                                                                                
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H.F.C. 8 5/04/99 pm                                                                                                             

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