Legislature(1999 - 2000)
05/17/1999 09:40 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 17, 1999
9:40 A.M.
TAPE HFC 99 - 146, Side 1.
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 9:40 a.m.
PRESENT
Co-Chair Mulder Representative Foster
Vice-Chair Bunde Representative Grussendorf
Representative G. Davis Representative Kohring
Representative Austerman Representative Moses
Representative J. Davies Representative Williams
Representative G. Therriault was not present for the
meeting.
ALSO PRESENT
Annette Kreitzer, Staff, Senator Loren Leman; Barbara Frank,
Director, Division of Administrative Services, Department of
Environmental Conservation; Senator Robin Taylor.
SUMMARY
SB 128 An Act relating to the storage tank assistance
fund; eliminating the grant portion of a program
relating to risk assessment, containment,
corrective action, and cleanup of underground
petroleum storage tank systems and replacing the
grant portion with a loan program; relating to
discharges from underground petroleum storage tank
systems; and providing for an effective date.
HCS CSSB 128 (FIN) was reported out of Committee
with "no recommendations" and with fiscal note by
the Department of Law dated 5/15/99 and a new note
by the House Finance Committee.
SJR 3 Proposing an amendment to the Constitution of the
State of Alaska relating to the repeal of
regulations by the legislature.
SJR 3 was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Office of the Lt. Governor dated 2/11/99.
CS FOR SENATE BILL NO. 128(FIN)
An Act moving the termination date of the Board of
Storage Tank Assistance to June 30, 1999; relating to
the storage tank assistance fund, to financial
assistance for owners and operators of underground
petroleum storage tank systems, and to discharges from
underground petroleum storage tank systems; and
providing for an effective date.
ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, stated that it
was clarified during Conference Committee that the intent of
the fiscal note was to add back five positions. The $58.2
thousand dollars is the difference between what the
Conference Committee agreed upon and what would constitute
five positions.
Representative J. Davies pointed out that problems result
because only six positions now exist with work effort being
reduced next year and the total number of positions cut will
be ten. The Department of Environmental Conservation has
made the decision to de-emphasize that program because of
the lack of needed manpower.
BARBARA FRANK, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, noted
that there has been ten total positions cut out of the
program. With that size cut, the Department would not be
able to implement the bill. There is no point in the
Department funding the Board for the storage tank assistance
to write regulations in order to establish a program which
the Department will not be able to afford to implement.
Co-Chair Mulder questioned how many staff people remained in
that program. Ms. Frank replied that only twenty of the
thirty employed positions remained which the Department had
in FY99, leaving a 10-position cut. The Department has
chosen not to implement a Board with that cut. There would
be no staff to implement or issue clean up programs and
grants. Therefore, no need exists to write regulations for
a new program. Co-Chair Mulder offered that there possibly
no need for Department of Environmental Conservation then.
He emphasized his resentment that the Department could
indicate that there is "no need" for a program because of
staff cuts. Ms. Frank restated the Department's priority
for the twenty remaining positions:
* The prevention program; and
* The above ground storage tanks.
Ms. Frank continued, there are some federally funded staff
who can only work on federally approved clean-ups. All
State funded staff that could work on the clean up program
have been eliminated. Co-Chair Mulder countered that was
not the intent during budget discussion but instead a
decision made by the Department.
Representative J. Davies advised that the number of
positions funded for the clean up program was six and that
the budgetary level of effort has been reduced from $3
million dollars to $1 million dollars. Representative G.
Davis asked if the prevention program was more important
than the underground storage oil clean up. Ms. Frank
replied that the Department in not preventing leaks but
merely cleaning up leaks would create a never-ending cycle.
She believed that prevention investment program would help
to stabilize requests for additional clean up dollars.
Representative Bunde commented that if the Department has
decided not to implement the legislation, the fiscal notes
should be stripped out and the bill left in Committee.
Representative Grussendorf argued that this is not the
entirety of the work of the Department of Environmental
Conservation. They are responsible for monitoring air and
water quality and food protection. The bill addresses
providing grants and assistance to the small business
owners. The Department must be able make a choice as to
what is monitored and what will happen to this particular
program in the best interest of the public and the State.
Representative Bunde clarified that if the bill is passed,
the five positions added back would be funded, and if the
bill is not passed, they would not be added back into the
funding mechanism. Co-Chair Mulder agreed.
Representative Williams MOVED to report HCS CSSB 128 (FIN)
out of Committee with individual recommendations and with
the accompanying fiscal notes. Representative Bunde
OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Williams, Austerman, J. Davies, G.
Davis, Foster, Grussendorf, Kohring, Mulder
OPPOSED: Bunde
Co-Chair Therriault was not present for the vote.
The MOTION PASSED (9-1).
HCS CSSB 128(FIN) was reported out of Committee with "no
recommendations" and with a fiscal note by the Department of
Law dated 5/15/99 and a new note by the House Finance
Committee.
SENATE JOINT RESOLUTION NO. 3
Proposing an amendment to the Constitution of the State
of Alaska relating to the repeal of regulations by the
legislature.
SENATOR ROBIN TAYLOR advised that SJR 3 is a proposed
amendment to the Constitution of the State of Alaska which
would grant the Legislature the ability to repeal a
regulation adopted by a state department or agency that is
inconsistent with its enabling statute. The proposed
amendment would allow the repeal of a regulation by a
resolution passed by a majority of the members of each
house.
Senator Taylor mentioned that legislators did not create
numerous regulations contained in the Alaska Administrative
Code. The only recourse for the Legislature is to repeal
the law that enabled the regulation which wastes Alaska's
time and money in the process. The repeal of burdensome
regulations is vital to the progress of economic development
for all of Alaska. He noted that this issue has come before
the voters in the past and now time has come again for the
voters to reduce the amount of time and money spent in
legislation.
Representative J. Davies suggested that the legislation
would be establishing new state policy without the checks
and balances of the veto process. Senator Taylor argued
that a new State policy was not being established. Up until
the middle 1980's, the Legislature routinely did this. The
Supreme Court stated that it was essential to recognize the
separation of the powers between the branches of government.
It is the result of that case, the proposed resolution would
request the people of Alaska to reverse.
Representative Grussendorf spoke to the number of times that
the public has turned down the proposal.
Representative Austerman mentioned that he supported the
resolution. Representative J. Davies reported that he had a
chair on the regulation committee for two years and that not
one substantive issue came before that committee. The
question is whether we need to fundamentally change the
balance of power between the Executive and Legislative
Branches of government. Co-Chair Mulder suggested that
there should be a framework established to make it work.
Representative G. Davis recommended that the legislation be
given an effective date of 30 days after passage.
Senator Taylor replied that the Legislature had acted with
this authority for many years and that each time this
question is put back before the public, the vote has gotten
closer.
Representative Kohring voiced his support of the
legislation. He requested to be a cross sponsor noting that
as a small businessperson, too many regulations exist.
Representative Kohring MOVED to report SJR 3 out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative J. Davies OBJECTED
for the purpose of comment. He agreed that the regulation
codes had increased at the direction of the Legislature. If
people want fewer regulations, then the Legislature needs to
take appropriate action. He concluded:
"We've met the enemy, and it is us".
Representative J. Davies WITHDREW his OBJECTION to move the
bill from Committee. There being NO further OBJECTION, the
bill was moved from Committee.
SJR 3 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by the Office of the
Lt. Governor dated 2/11/99.
ADJOURNMENT
The meeting adjourned at 10:15 A.M.
H.F.C. 5 5/17/99 a.m.
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