Legislature(1993 - 1994)
05/09/1993 09:45 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 9, 1993
9:45 p.m.
TAPE HFC 93-136, Side 1, #000 - end.
TAPE HFC 93-136, Side 2, #000 - 125.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 9:45 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Cheryl Frasca, Director, Division of Budget Review, Office
of Management and Budget; Juanita Hensley, Chief Driver
Services, Division of Motor Vehicles, Department of Public
Safety.
SUMMARY INFORMATION
SB 99 "An Act relating to the improvement of state
finances through reduction of operating costs of
certain state agencies and establishment of
certain fees; and providing for an effective
date."
HCS CSSB 99 (FIN) was reported out of Committee
with "no recommendation" and with a fiscal impact
note by the Department of Environmental
Conservation; a fiscal impact note by the
Department of Fish and Game; two fiscal impact
notes by the Department of Public Safety; a fiscal
impact note by the Department of Administration,
dated 4/26/93; a fiscal impact note by the
Department of Natural Resources, dated 4/26/93;
two fiscal impact notes by the Alaska Commission
of Postsecondary Education, dated 4/26/93; three
fiscal impact notes by the Department of Labor,
dated 4/26/93; a zero fiscal note by the
Department of Labor, dated 4/26/93; and with three
zero fiscal notes by the Department of
Administration, dated 4/26/93.
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SENATE BILL NO. 99
"An Act relating to the improvement of state finances
through reduction of operating costs of certain state
agencies and establishment of certain fees; and
providing for an effective date."
Co-Chair Larson provided members with a work draft for HCS
CSSB 99 (FIN), 8-GS1020\D, dated 5/8/93 (copy on file).
Representative Brown referred to a memorandum by David
Dierdorff to Representative Mark Hanley, dated 3/8/93
(Attachment 1). She noted that Mr. Dierdorff had expressed
concern that HCS CSSB 99 (FIN) would not withstand a
constitutional challenge. Mr. Dierdorff points out that the
legislation does not conform to the single subject
requirement.
Representative Brown suggested that all sections that do not
fit within the single subject of the legislation be deleted.
She referred to page 2 of Attachment 2.
Co-Chair Larson provided members with sectional analysis of
HCS CSSB 99 (FIN) (Attachment 2). Co-Chair Larson reviewed
Attachment 2 section by section.
Co-Chair Larson MOVED that sections 1 - 32, Department of
Revenue be INCORPORATED into HCS CSSB 99 (FIN). He noted
that sections 1 - 32 are identical to sections contained in
CSHB 65 (FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that sections 33 - 35, Office of
Public Advocacy be INCORPORATED into HCS CSSB 99 (FIN). He
noted that sections 33 - 35 are identical to sections
contained in CSHB 65 (FIN). There being NO OBJECTION, it
was so ordered.
Co-Chair Larson MOVED that sections 36 - 38, Department of
Education be INCORPORATED into HCS CSSB 99 (FIN). He noted
that sections 36 - 38, Department of Education are identical
to sections contained in CSHB 65 (FIN). There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED that sections 39 - 43, Department of
Education be INCORPORATED into HCS CSSB 99 (FIN). He noted
that sections 39 - 43 are identical to sections contained in
CSHB 65 (FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that sections 44 - 45, Department of
Fish and Game be INCORPORATED into HCS CSSB 99 (FIN). He
noted that fees in sections 44 - 45 have been reduced from
fees contained in CSHB 65 (FIN). There being NO OBJECTION,
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it was so ordered.
Co-Chair Larson MOVED that section 46, Department of Fish
and Game be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 46 is identical to sections contained in CSHB
65 (FIN). Representative Brown pointed out that Mr.
Dierdorff argued that section 46 did not fit within the
single subject requirement. Co-Chair Larson noted that
section 46 is a funding source shift from general funds to
the Fish and Game Fund. There being NO OBJECTION, it was so
ordered.
Co-Chair Larson MOVED that section 47, Department of Labor
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 47 is identical to sections contained in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 48, Department of Labor
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 48 is identical to sections contained in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 49, Department of Labor
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 49 is identical to sections contained in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 50, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 50 establishes a fee to process applications
for certification of police, probation, parole and
correctional officers.
CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR explained that HCS CSSB 99
(FIN) sets the fee in statute. She added that CSHB 65 (FIN)
addressed the fee through regulation. There being NO
OBJECTION, section 50 was INCORPORATED into HCS CSSB 99
(FIN).
Co-Chair Larson MOVED that section 51, Department of Labor
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 51 is similar to language adopted in CSHB 65 (FIN).
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 52, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 52 has a constitutional concern.
Ms. Frasca stated that section 52 clarifies existing
statutory provisions regarding payment of moving expenses
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for legislators.
Representative Hanley noted that section 52 is in the title.
Representative Brown suggested that a concurrent resolution
could be introduced for a title change. Representative
Martin pointed out that constitutionality is based on the
substance of the legislation. He asserted that the title is
subject to rules placed by the legislature and can be
broken.
There being NO OBJECTION, section 52 was INCORPORATED into
HCS CSSB 99 (FIN).
Co-Chair Larson MOVED that section 53, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section incorporated HB 179 section 1 into HCS CSSB 99
(FIN). Representative Brown provided members with AMENDMENT
1, page 16, line 12 to delete "but only" (Attachment 3).
Representative Brown MOVED to ADOPT AMENDMENT 1. There
being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 54, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN).
Co-Chair MacLean MOVED to delete section 55, Department of
Public Safety. Representative Brown OBJECTED.
JUANITA HENSLEY, CHIEF, DRIVER SERVICES, DIVISION OF MOTOR
VEHICLES, explained that section 55 would not replace the
existing motor vehicle licence plate. Section 55 would
allow two special plates to be designed. The plates would
be issued at a special cost of $50 dollars. A roll call
vote was taken on the motion to delete section 55.
IN FAVOR: Grussendorf, Hoffman, Foster, Hanley, Martin,
Parnell, Therriault, MacLean, Larson
OPPOSED: Navarre, Brown
The MOTION PASSED (8-2).
Co-Chair Larson MOVED that section 56, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 56 was included in CSHB 179 (FIN), section 3.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 57, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 57 was included in CSHB 179 (FIN), section 4.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 58, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
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that section 58 was included in CSHB 179 (FIN), section 5.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 59, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 59 was included in CSHB 179 (FIN), section 6.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 60, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 60 was included in CSHB 179 (FIN), section 7.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 61, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 61 was included in CSHB 179 (FIN), section 8.
Ms. Hensley clarified that section 62 establishes a fee for
license plates that would have been designed under section
55. She noted that the deletion of section 55 makes section
62 unnecessary.
Co-Chair Larson MOVED that section 62 Department of Public
Safety be DELETED from HCS CSSB 99 (FIN). There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 63, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 63 was included in CSHB 179 (FIN), section 9.
There being NO OBJECTION, it was so ordered.
Representative Grussendorf expressed concern that section
64, Department of Public Safety could result in lawsuits
against municipalities. Representative Navarre suggested
that section 63 and 64 be combined into one section.
Representative Navarre MOVED to AMEND HCS CSSB 99 (FIN) by
combining sections 63 and 64 into one section. There being
NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 65, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 65 was included in CSHB 179 (FIN), section 11.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 66, Department of Public
Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 66 was included in CSHB 179 (FIN), section 12.
There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 67, Department of
Administration be INCORPORATED into HCS CSSB 99 (FIN). He
noted that section 67 is identical to language in CSHB 65
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(FIN). Co-Chair Larson pointed out that Mr. Dierdorff
indicated that section 67 did not fit within the single
subject requirement. Representative Therriault noted that
there are conflicting legal opinions concerning the
constitutionality of section 67 as included in HCS CSSB 99
(FIN). There being NO OBJECTION, section 67 was
INCORPORATED into HCS CSSB 99 (FIN).
Co-Chair Larson MOVED that sections 68 - 69, Department of
Administration be INCORPORATED into HCS CSSB 99 (FIN). He
noted that sections 68 - 69 are identical to sections in
CSHB 65 (FIN). There being NO OBJECTION, it was so ordered.
Representative Brown MOVED to DELETE section 70.
Representative Brown asserted that section 70 would give up
the legislature's power of appropriation. She noted that
the section allows the Governor to underfund appropriations
made by the legislature. There being NO OBJECTION, it was
so ordered.
Co-Chair Larson MOVED that sections 71 - 77, Department of
Administration be INCORPORATED into HCS CSSB 99 (FIN). He
noted that sections 71 -77 are identical to language adopted
in CSHB 65 (FIN). There being NO OBJECTION, it was so
ordered.
Co-Chair Larson MOVED that section 78, Department of Natural
Resources be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 78 is identical as language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 79, Department of Natural
Resources be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 79 is identical as language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson referred to section 80, Department of
Commerce. He noted that section 80 amends the Competitive
Intrastate Long Distance Telephone Service, Article.
Representative Brown maintained that section 80 does not
relate to cost savings measures to the state.
Representative Brown MOVED to DELETE section 80 from HCS
CSSB 99 (FIN). A roll call vote was taken on the motion.
IN FAVOR: Martin, Therriault, Brown, Grussendorf, Hanley
OPPOSED: Hoffman, Navarre, Parnell, Foster, Larson, MacLean
The MOTION FAILED (5-6).
Co-Chair Larson MOVED that section 81, Department of
Environmental Conservation be INCORPORATED into HCS CSSB 99
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(FIN). He noted that section 81 is identical as language
adopted in CSHB 65 (FIN). There being NO OBJECTION, it was
so ordered.
Co-Chair Larson MOVED that section 82, Department of
Environmental Conservation be INCORPORATED into HCS CSSB 99
(FIN). He noted that section 82 is identical to language
adopted in CSHB 65 (FIN). There being NO OBJECTION, it was
so ordered.
Co-Chair Larson MOVED that sections 83 - 84, Department of
Health and Social Services be INCORPORATED into HCS CSSB 99
(FIN). He noted that sections 83 - 84 are identical to
language adopted in CSHB 179 (FIN). He pointed out that
Mr. Dierdorff argued that sections 83 - 84 did not fit
within the single subject requirement. There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 85, Department of Revenue
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 85 is identical to language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 86, Department of
Administration, repealing AS 13.26.410 be INCORPORATED into
HCS CSSB 99 (FIN). He noted that section 86 is identical to
language adopted in CSHB 65 (FIN). There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 86, Department of Public
Safety, repealing AS 28.10.011 be INCORPORATED into HCS CSSB
99 (FIN). He noted this section is identical to language
adopted in CSHB 179 (FIN), section 13. There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 86, Department of Public
Safety, repealing AS 28.10.181(k) be INCORPORATED into HCS
CSSB 99 (FIN). He noted that section 86 is identical to
language adopted in CSHB 179 (FIN), section 13. There being
NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 86, Department of Public
Safety, repealing AS 28.10.421(d) be INCORPORATED into HCS
CSSB 99 (FIN). He noted that section 86 is identical to
language adopted in CSHB 179 (FIN), section 13. There being
NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 86, Department of Public
Safety, repealing AS 28.22.011(a)(3) be INCORPORATED into
HCS CSSB 99 (FIN). He noted that section 86 is identical to
language adopted in CSHB 179 (FIN), section 13. There being
NO OBJECTION, it was so ordered.
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Co-Chair Larson MOVED that section 86, Department of
Administration, repealing AS 37.05.210(1) be INCORPORATED
into HCS CSSB 99 (FIN). He noted that section 86 is
identical to language adopted in CSHB 65 (FIN). There being
NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 87, Department of
Environmental Conservation be INCORPORATED into HCS CSSB 99
(FIN). He noted that section 87 is identical to language
adopted in CSHB 65 (FIN). There being NO OBJECTION, it was
so ordered.
Co-Chair Larson MOVED that section 88, Department of Revenue
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 88 is identical to language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 89, Department of Labor
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 89 is identical to language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 90, Department of Natural
Resources be INCORPORATED into HCS CSSB 99 (FIN). He noted
that section 90 is identical to language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 91 be INCORPORATED into
HCS CSSB 99 (FIN). He noted that section 91 is identical to
language adopted in CSHB 65 (FIN). There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 92, Department of Revenue
be INCORPORATED into HCS CSSB 99 (FIN). He noted that
section 92 is identical to language adopted in CSHB 65
(FIN). There being NO OBJECTION, it was so ordered.
Ms. Frasca clarified that section 93 was included in
legislation which was passed by the Eighteenth Alaska
Legislature (SB 129). Co-Chair Larson MOVED to DELETE
section 93. There being NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED that section 94, Alaska Court System
and Department of Administration be INCORPORATED into HCS
CSSB 99 (FIN). He noted that section 94 is identical to
language adopted in CSHB 65 (FIN). There being NO
OBJECTION, it was so ordered.
Co-Chair MacLean noted that sections 95 and 96 pertain to
section 93 and are not needed. Co-Chair Larson MOVED to
DELETE sections 95 and 96 from HCS CSSB 99 (FIN). There
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being NO OBJECTION, it was so ordered.
Representative Brown asked if sections 83 and 84 would
result in a cost savings to the state. Ms. Frasca clarified
that sections 83 and 84 will allow the state to capture
federal funds. The additional federal funds would replace
state general funds.
Representative Brown argued that section 85 would also
result in a cost savings to the state. Representative
Therriault explained section 85. He agreed that section 85
would result in cost savings.
Ms. Hensley explained that section 64 should have a 1/1/94
effective date. She noted that the section affects
municipal taxes.
Representative Hanley noted that the effective dates for
sections 95 and 96 should be deleted. Co-Chair Larson MOVED
to ADOPT a conceptional amendment to conform the effective
dates to committee approved action. There being NO
OBJECTION, it was so ordered.
(Tape Change, HFC 93-136, Side 2)
Representative Brown noted that not all of the sections
indicated to have a constitutionality problem have been
removed. Ms. Frasca argued that the remaining sections can
be argued to have a cost savings to the state. She noted
that section 46 reduces general fund expenditures by
transferring the expenditures to the Fish and Game Fund.
She asserted that cost savings will result from sections 59,
63, 67 and 70 - 77.
Representative Brown MOVED to DELETE section 52. Co-Chair
MacLean OBJECTED. A roll call vote was taken on the motion.
IN FAVOR: Martin, Brown, Grussendorf
OPPOSED: Foster, Hanley, Hoffman, Parnell, Therriault,
MacLean, Larson
Representative Navarre was not present for the vote.
The MOTION FAILED (3-7).
Co-Chair MacLean MOVED to report HCS CSSB 99 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 99 (FIN) was reported out of Committee with "no
recommendation" and with a fiscal impact note by the
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Department of Environmental Conservation; a fiscal impact
note by the Department of Fish and Game; two fiscal impact
notes by the Department of Public Safety; a fiscal impact
note by the Department of Administration, dated 4/26/93; a
fiscal impact note by the Department of Natural Resources,
dated 4/26/93; two fiscal impact notes by the Alaska
Commission of Postsecondary Education, dated 4/26/93; three
fiscal impact notes by the Department of Labor, dated
4/26/93; a zero fiscal note by the Department of Labor,
dated 4/26/93; and with three zero fiscal notes by the
Department of Administration, dated 4/26/93.
ADJOURNMENT
The meeting adjourned at 10:45 p.m.
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