Legislature(2001 - 2002)

02/21/2001 01:32 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 21, 2001                                                                                          
                          1:32 PM                                                                                               
                                                                                                                                
TAPE HFC 01 - 32, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House  Finance Committee meeting                                                                   
to order at 1:32 PM.                                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Bill Williams, Co-Chair                                                                                          
Representative Con Bunde, Vice-Chair                                                                                            
Representative John Davies                                                                                                      
Representative Carl Moses                                                                                                       
Representative Richard Foster                                                                                                   
Representative John Harris                                                                                                      
Representative Bill Hudson                                                                                                      
Representative Ken Lancaster                                                                                                    
Representative Jim Whitaker                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Eric Croft                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Dave  Donley; Eddy Jeans,  Manager, School  Finance &                                                                   
Facilities  Section,   Department  of  Education   and  Early                                                                   
Development;   Catherine  Reardon,   Director,  Division   of                                                                   
Occupational Licensing, Department  of Community and Economic                                                                   
Development;  Pat Davidson,  Executive Director,  Legislative                                                                   
Budget   and   Audit   Division;   Heather   Brakes,   Staff,                                                                   
Legislative Budget and Audit Committee.                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 90     "An  Act  relating to  reimbursement  of  municipal                                                                   
          bonds for school construction; and providing for                                                                      
          an effective date."                                                                                                   
                                                                                                                                
          CSHB 90 (FIN) was REPORTED out of Committee with a                                                                    
          "do pass" recommendation and with a new zero                                                                          
          fiscal note by the Department of Education and                                                                        
          Early Development.                                                                                                    
                                                                                                                                
SB 53     "An Act extending the termination date of the                                                                         
          Board of Barbers and Hairdressers."                                                                                   
                                                                                                                                
          SB 53 was REPORTED out of Committee with a "do                                                                        
          pass" recommendation and with a new zero fiscal                                                                       
          note by the Department of Community and Economic                                                                      
          Development.                                                                                                          
                                                                                                                                
CSSJR 6(FIN)                                                                                                                    
          Urging the Congress of the United States to                                                                           
          provide federal education funds as a block grant                                                                      
          to the state.                                                                                                         
                                                                                                                                
          HCS  CSSJR 6  (FIN) was REPORTED  out of  Committee                                                                   
          with  a   "do  pass"  recommendation   and  with  a                                                                   
          previously  passed zero fiscal  note by  the Senate                                                                   
          Finance Committee.                                                                                                    
HOUSE BILL NO. 90                                                                                                             
                                                                                                                                
     "An Act relating to reimbursement of municipal bonds                                                                       
     for school construction; and providing for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
Co-Chair  Mulder  noted that  they  had looked  at  potential                                                                   
amendments.  They were not able to come to a compromise.                                                                        
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT  a technical amendment on page                                                                   
4, line 19: change  (p) to (o). There being  NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
Co-Chair  Mulder  noted  that   the  legislation  corrects  a                                                                   
technical  error in  HB 281,  Chapter 130,  SLA 2000,  school                                                                   
capital  funding and bond  debt reimbursement.  The  bill was                                                                   
prospective as  opposed to retroactive. The  Northwest Arctic                                                                   
Borough and  Anchorage School  District had already  approved                                                                   
the  bonds  by vote.  House  Bill  90 reauthorizes  what  was                                                                   
already authorized.                                                                                                             
                                                                                                                                
Representative Foster  MOVED to report  CSHB 90 (FIN)  out of                                                                   
Committee with  the accompanying fiscal note.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB 90 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation  and  with  a  new zero  fiscal  note  by  the                                                                   
Department of Education and Early Development.                                                                                  
CS FOR SENATE JOINT RESOLUTION NO. 6(FIN)                                                                                     
                                                                                                                                
     Urging the Congress of the United States to provide                                                                        
     federal education funds as a block grant to the state.                                                                     
                                                                                                                                
SENATOR DAVE DONLEY,  sponsor, spoke in support  of the bill.                                                                   
He observed that the legislation  would encourage Congress to                                                                   
provide federal education funds  as block grants. States have                                                                   
been successful  in reducing the cost and  improving delivery                                                                   
of welfare  to their  citizens since  the federal  government                                                                   
began  distribution  of  welfare  through  block  grants.  He                                                                   
stressed  that  there  are  high   the  administrative  costs                                                                   
associated with the various federal  education programs. This                                                                   
money  could be  used in  the classrooms.  Many local  school                                                                   
districts  have complained  about  the administrative  burden                                                                   
for  federal   programs,  which  go  through   three  levels:                                                                   
federal, state and local.                                                                                                       
                                                                                                                                
In  response  to  a question  by  Vice-Chair  Bunde,  Senator                                                                   
Donley stressed  that any movement toward block  grants would                                                                   
allow flexibility and lower administrative costs.                                                                               
                                                                                                                                
Representative   John  Davies   expressed  support   for  the                                                                   
legislation. He pointed out that  language on line 4 could be                                                                   
misunderstood  to   indicate  that  the   federal  government                                                                   
provides  all of the  funding for  education. He  recommended                                                                   
the addition of "categorical."                                                                                                  
                                                                                                                                
Representative John Davies MOVED  to amend the legislation on                                                                   
line 4:  insert "categorical"  before "funding".  There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
HCS CSSJR  6 (FIN) was REPORTED  out of Committee with  a "do                                                                   
pass"  recommendation  and  with  a  previously  passed  zero                                                                   
fiscal note by the Senate Finance Committee.                                                                                    
SENATE BILL NO. 53                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Barbers and Hairdressers."                                                                                                 
                                                                                                                                
HEATHER   BRAKES,  STAFF,   LEGISLATIVE   BUDGET  AND   AUDIT                                                                   
COMMITTEE noted that SB 53 amends  title 8 Chapter 3, Section                                                                   
10 to  extend the  board an additional  four years  from June                                                                   
30, 2001  to June 30, 2005.  She observed that  a legislative                                                                   
audit was released  on Dec 6, 2000. The audit  concluded that                                                                   
the   Board   of   Barbers   and   Hairdressers   should   be                                                                   
reestablished  and  that  the  regulation  and  licensing  of                                                                   
qualified  barbers,  hairdressers   and  estheticians  is  of                                                                   
benefit  to the  public's health,  safety,  and welfare.  The                                                                   
board   benefits   the   public   by   establishing   minimum                                                                   
educational   and   experience  requirements   that   provide                                                                   
reasonable  assurance that  persons  licensed are  qualified.                                                                   
Assurances that those  licensed act in a competent  manner is                                                                   
provided by  active investigation of complaints  conducted by                                                                   
the Division  of Occupational Licensing's  investigative unit                                                                   
within the Department of Community  and Economic Development.                                                                   
                                                                                                                                
Alaska  Statute  08.03.010(c)   (4)  requires  the  Board  of                                                                   
Barbers  and Hairdressers  be  terminated on  June 30,  2001.                                                                   
Under  AS  08.03.020, the  board  has  a one-year  period  to                                                                   
administratively conclude its  affairs. The audit recommended                                                                   
that the  board's termination  date be  extended to  June 30,                                                                   
2005.                                                                                                                           
                                                                                                                                
CATHERINE   REARDON,  DIRECTOR,   DIVISION  OF   OCCUPATIONAL                                                                   
LICENSING, DEPARTMENT  OF COMMUNITY AND ECONOMIC  DEVELOPMENT                                                                   
provided information  on the legislation. She  explained that                                                                   
licenses are valid  for two years. They expire at  the end of                                                                   
August on even  fiscal years. She explained  that there would                                                                   
always  be  a high  and  low  year.  On the  years  when  the                                                                   
licenses  are not renewed  revenues come  from new  licenses.                                                                   
There are no general funds in  the component. The legislature                                                                   
generally  rolls forward  the excess  revenue collections  to                                                                   
allow the boards to cover their  two-year costs with two-year                                                                   
revenues.                                                                                                                       
                                                                                                                                
Representative  Foster noted that  the number of  commissions                                                                   
has increased.  He suggested that  the four-year  sunset date                                                                   
is a waste of time.                                                                                                             
                                                                                                                                
PAT  DAVIDSON,  EXECUTIVE DIRECTOR,  LEGISLATIVE  BUDGET  AND                                                                   
AUDIT DIVISION explained that  they recommended that that the                                                                   
Board be extended  for four years because tattooist  is a new                                                                   
occupation under  the Board.  The normal four-year  extension                                                                   
would allow the profession to establish regulations.                                                                            
                                                                                                                                
Vice-Chair Bunde MOVED to report  SB 53 out of Committee with                                                                   
the accompanying new fiscal note.  Representative John Davies                                                                   
observed that  the fiscal note  would reflect the  new. There                                                                   
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
SB  53  was  REPORTED  out of  Committee  with  a  "do  pass"                                                                   
recommendation  and  with  a  new zero  fiscal  note  by  the                                                                   
Department of Community and Economic Development.                                                                               
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 1:55 p.m.                                                                                          

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