Legislature(1997 - 1998)
05/10/1997 10:00 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
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HOUSE FINANCE COMMITTEE
May 10, 1997
10:00 A.M.
TAPE HFC 97-135, Side 1, #000 - end.
TAPE HFC 97-135, Side 2, #000 - end.
TAPE HFC 97-136, Side 1, #000 - end.
CALL TO ORDER
Co-Chair Hanley called the House Finance Committee meeting to order
at 10:00 a.m.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Kohring
Representative Davies Representative Martin
Representative Davis Representative Moses
Representative Foster Representative Mulder
Representative Grussendorf
ALSO PRESENT
Nico Bus, Acting Director, Support Services Division, Department of
Natural Resources; Kurt Parkan, Deputy Commissioner, Department of
Transportation and Public Facilities; Glenda Straube, Director,
Child Support Enforcement Division, Department of Health & Social
Services; John Bitney, Alaska Housing Finance Corporation; Myrna
Maynard, Staff, Senator Pearce; Ed Flanagan, Deputy Commissioner,
Department of Labor; Art Chance, Contract, Senate Finance
Committee.
SUMMARY
SB 107 "An Act making and amending capital and other
appropriations and to capitalize funds; and providing for
an effective date."
SB 107 was HELD in Committee for further consideration.
SB 151 "An Act relating to public employment labor relations;
relating to the protection of the rights of public
employees under the Public Employment Relations Act;
establishing ethical standards for union representatives
of public employees; and establishing disclosure
requirements for public employee labor organizations."
SB 151 was HELD in Committee for further consideration.
SB 154 "An Act relating to paternity determination and child
support; relating to reporting of and access to financial
or other information for child support purposes; making
changes to laws relating to occupational, recreational,
or other licenses, permits, certificates, or other
authorizations issued by the state to facilitate
administration of child support laws; relating to the
interest rate on judgments or decrees for child support;
relating to immunity from civil liability for good faith
compliance with reporting or other requirements for child
support purposes; relating to voiding fraudulent
transfers and to penalties for noncompliance with orders
for child support purposes; amending Rules 4, 5, 35, 52,
58, 60(b), 78, 90.1, and 90.3, Alaska Rules of Civil
Procedure; amending Rule 901, Alaska Rules of Evidence;
amending Rules 3 and 5, Alaska Bar Association Rules;
repealing the effective date of sec. 45, ch. 107, SLA
1996; and providing for an effective date."
CSSB 154 (FIN)am was reported out of Committee with "no
recommendation" and with a new fiscal impact note by the
Alaska Court System, and with six zero fiscal notes,
three by the Department of Health & Social Services, one
by the Department of Administration, one by the
Department of Revenue, and one by the Department of
Revenue, all dated 4/29/97.
SENATE BILL NO. 107
"An Act making and amending capital and other appropriations
and to capitalize funds; and providing for an effective date."
Representative Grussendorf Held Amendment 25.
Representative Davies MOVED to adopt Amendment 26 (copy on file).
Representative Kohring OBJECTED. Representative Davies explained
that Amendment 26 would appropriate $1.5 million dollars from the
Investment Loss Trust Fund for a ice arena in the North Pole area.
He spoke in support of the amendment. He noted that the Fairbanks
North Star Borough has already spent $200 thousand dollars for
planning. The Fairbanks North Star Borough has pledged another $2
million dollars for the facility.
Co-Chair Therriault noted that Amendment 1 appropriates $210
thousand dollars to complete design of the project. He expressed
support for the project.
A roll call vote was taken on the MOTION to adopt Amendment 26.
IN FAVOR: Moses, Davies, Grussendorf, Therriault
OPPOSED: Mulder, Davis, Foster, Kelly, Kohring, Martin, Hanley
The MOTION FAILED (4-7).
Representative Davies MOVED to adopt Amendment 27 (copy on file).
He explained that the amendment would add $500 thousand dollars in
the Department of Environmental Conservation, Operation and
Maintenance Capacity Development.
A roll call vote was taken on the MOTION to adopt Amendment 27.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Mulder, Therriault,
Hanley
Representative Martin was absent for the vote.
The MOTION FAILED (3-7).
Representative Grussendorf Held Amendment 28.
Representative Davies MOVED to adopt Amendment 29 (copy on file).
He noted that the amendment would appropriate $1 million dollars
for at risk programs. He stressed that the success rate of the
program is 85 percent. He pointed out that it is cheaper to
support the At Risk Program than to pay for incarceration.
Co-Chair Hanley noted that $250 thousand dollars is contained in
the budget for the program. He observed that federal funding is in
question. He noted that discussion will be needed to determine if
the State will fund the program without the addition of federal
funds.
A roll call vote was taken on the MOTION to adopt Amendment 29.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Mulder, Therriault,
Hanley
Representative Martin was absent for the vote.
The MOTION FAILED (3-7).
Representative Grussendorf MOVED to adopt Amendment 30 (copy on
file). Representative Kohring objected. Representative
Grussendorf explained that the amendment would appropriate $120
thousand dollars for design of a Juneau Armory and Organizational
Maintenance Shop. He noted that there will be $6.3 million dollars
in federal funds in the next year. He noted that the current
armory is on Mental Health Trust land.
Co-Chair Hanley questioned if federal funding is available.
Representative Grussendorf noted that a three-way land swap is
under consideration.
NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES explained that a site has been
identified at seven mile, Glacier Highway. He stressed that design
funding is needed to obtain federal funding.
Representative Mulder expressed support for the project. He
suggested that funding would be available in the supplemental
budget.
A roll call vote was taken on the MOTION to adopt Amendment 30.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder
Co-Chair Hanley and Co-Chair Therriault were absent for the vote.
The MOTION FAILED (3-6).
Representative Davies MOVED to adopt Amendment 31 (copy on file).
He explained that the amendment would restore funding for the
Aviation Program. He pointed out that the operators approved the
development plan. He emphasized that the amendment would restore
a number of terminal rehabilitation projects to the level proposed
by the operators. He stressed that life and safety issues are
involved. He noted that the appropriation would be from airport
funds approved by the operators.
Representative Martin expressed concern with the impact of feeder
lines. He suggested that the Legislative Budget and Audit
Committee look at the issue.
Representative Davies noted that the amendment would rehabilitate
existing terminals. He maintained that there is no justification
for legislative action.
KURT PARKAN, DEPUTY COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES noted that the proposed projects are consistent
with the operating agreement between the state and the airlines.
Projects are discussed and voted on by the carriers. He stressed
that this item is an on-going appropriation to address life and
safety needs. He noted that automatic doors at the Anchorage
Airport have a tendency to shut on passengers. He maintained that
there are problems with fire doors and sprinkler systems.
In response to a question by Representative Mulder, Mr. Parkan
observed that a technical subcommittee group reviews projects and
makes recommendations. He acknowledged that not all of the
projects were supported by a majority of the members. A project
must be opposed by two-thirds of the members to be vetoed.
Representative Mulder noted that some of the proposals are
controversial and at least one project was passed by a minimum of
votes.
In response to a question by Representative Davis, Mr. Parkan
explained that there is an extensive public process. He added that
there are life and safety issues that need to be addressed.
Representative Martin maintained that Amendment 31 is a duplicate
of Amendment 7.
Representative Davies clarified that Amendment 31 would restore the
plan adopted by the operators.
Co-Chair Hanley summarized that projects are proposed by the
airport management. Projects are adopted unless two-thirds of the
signatories oppose the project.
Mr. Parkan clarified that Amendment 31 pertains to rehabilitation
projects. He noted that Amendment 7 addressed the concourse C
expansion. He agreed that the interim would be a good time to
discuss needs for a new terminal with the Legislative Budget and
Audit Committee.
(Tape Change, HFC 97-135, Side 2)
Representative Davies referred to a letter by FedEx dated May 8,
1997 (copy on file). Mr. Wheeler, Vice President, Global Trade
Services, FedEx expressed concern that legislative activity
threatens the "integrity of the long-standing and well-accepted
process set forth in the Airline Operating Agreement and Terminal
Building Lease for developing these capital plans." He urged that
adequate funding be authorized to maintain critical economic
development elements at the Anchorage and Fairbanks airports.
A roll call vote was taken on the MOTION to adopt Amendment 31.
IN FAVOR: Davies, Grussendorf, Kelly, Moses
OPPOSED: Davis, Foster, Kohring, Martin, Mulder, Therriault,
Hanley
The MOTION FAILED (4-7).
Representative Grussendorf MOVED to adopt Amendment 32 (copy on
file). He explained that the amendment would fund $600 thousand
dollars for a coal bed methane drilling test project in ED 36. He
spoke in support of the amendment. He emphasized that the project
could benefit economic development in rural Alaska. He noted that
the project would be in the Fort Yukon area.
Representative Davies noted that the Division of Geology and
Geological Survey has locate a test site.
Representative Kohring spoke in support of the project, but
expressed concern with the funding source.
A roll call vote was taken on the MOTION to adopt Amendment 32.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault,
Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-7).
Representative Davies MOVED to adopt Amendment 33 (copy on file).
Representative Martin objected. He maintained that the subject is
out of order. Representative Davies noted that a previous
amendment addressed the Alaska Craftsman Home Program. Amendment
33 would address low income housing weatherization. He spoke in
support of the amendment. He emphasized that the program has been
in operation for many years. He noted that money spent on
weatherization can reduce heating costs.
A roll call vote was taken on the MOTION to adopt 33.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault,
Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-7).
Amendment 34 was not moved.
Representative Davies MOVED to adopt Amendment 35 (copy on file).
Co-Chair Hanley OBJECTED. Representative Davies explained that
Amendment 35 would restore funding for the Senior Citizens' Housing
Development Program as proposed by the Governor by deleting grants
to named recipients.
JOHN BITNEY, ALASKA HOUSING FINANCE CORPORATION explained that non-
profit organizations apply each and every year. Projects are
scored individually each year. He noted that the Senate added four
designated grants to fund projects that applied but would not have
been funded in FY 97. Projects not funded in FY 97 would compete
in FY 98.
Co-Chair Hanley noted that the projects would have been supported
if additional funding was appropriated.
Mr. Bitney noted that there is a question about the viability of
some of the projects. He stressed that there are no funds for any
competitive programs in FY 98 to develop new applications for on-
going years.
Representative Martin spoke in support of Amendment 35.
A roll call vote was taken on the MOTION to adopt Amendment 35.
IN FAVOR: Davies, Grussendorf, Kohring, Martin, Moses
OPPOSED: Davis, Foster, Kelly, Mulder, Therriault, Hanley
The MOTION FAILED (5-6).
Representative Grussendorf MOVED to adopt Amendment 36 (copy on
file). Co-Chair Hanley OBJECTED. Representative Grussendorf spoke
in support of Amendment 36. Amendment 36 would allocated $1.2
million dollars for modifications on the Malaspina ferry. He noted
that new funding is anticipated. He emphasized that other projects
would not be affected.
Co-Chair Hanley spoke against the amendment. He maintained that
the new ferry has taken $80 million dollars in federal funds away
from other areas of the state. He noted that the new ferry was
presented as a replacement vessel. He stated that more discussion
is needed.
A roll call vote was taken on the MOTION to adopt Amendment 36.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Hanley
The MOTION FAILED (3-7).
SB 107 was HELD in Committee for further consideration.
SENATE BILL NO. 154
"An Act relating to paternity determination and child support;
relating to reporting of and access to financial or other
information for child support purposes; making changes to laws
relating to occupational, recreational, or other licenses,
permits, certificates, or other authorizations issued by the
state to facilitate administration of child support laws;
relating to the interest rate on judgments or decrees for
child support; relating to immunity from civil liability for
good faith compliance with reporting or other requirements for
child support purposes; relating to voiding fraudulent
transfers and to penalties for noncompliance with orders for
child support purposes; amending Rules 4, 5, 35, 52, 58,
60(b), 78, 90.1, and 90.3, Alaska Rules of Civil Procedure;
amending Rule 901, Alaska Rules of Evidence; amending Rules 3
and 5, Alaska Bar Association Rules; repealing the effective
date of sec. 45, ch. 107, SLA 1996; and providing for an
effective date."
GLENDA STRAUBE, DIRECTOR, DIVISION OF CHILD SUPPORT ENFORCEMENT
(CSED), DEPARTMENT OF HEALTH AND SOCIAL SERVICES explained that SB
154 represents the minimal change needed to comply with federal
mandates for welfare reform. She emphasized that the Child Support
Enforcement Division could lose all of its federal funding if the
legislation is not enacted. She added that the state Public
Assistance Block Grant could be reduced by $3.2 million dollars if
the legislation is not passed.
Representative Martin suggested that the state allow the federal
government to run the program.
Ms. Straube noted that the program is funded primarily by the
federal government.
Representative Mulder summarized that the legislation is the lowest
common denominator to match federal requirements. He questioned if
federal requirements are reasonable. Ms. Straube stated that
federal requirements aimed at getting children off welfare are
reasonable. She explained that Congress and the President agreed
on child support provisions of the welfare reform act.
In response to a question by Co-Chair Therriault, Ms. Straube
testified that the Division should be able to work with the federal
government and avoid penalties.
Representative Davies noted that the legislation would sunset in
two years. Ms. Straube clarified that sunset provisions were
inserted as a result of concerns regarding constitutionality. She
noted that there was concern with the additional use of social
security numbers on documents. She noted that there will not be an
issue unless the legislation is repealed in two years.
In response to a question by Representative Davies, Ms. Straube
expressed the opinion that the legislation will work to improve
collections.
Ms. Straube noted that the federal government has mandated that:
* Employers report money withheld from employees checks in
7 days;
* Financial institutions and other entities match data
quarterly with CSED;
* Existing licensing statutes be are amended to: include
commercial fishing crew members, and be revocable for
noncompliance with subpoena or warrant;
* Disbursed payments will go to Aid to Families with
Dependent Children (AFDC) recipients for past child
support payments before the state can collect to
reimburse itself;
* Social security numbers be identified on state licenses,
permits and other documents, such as divorce decrees and
death certificates. Social security numbers must be
shared with all other state child support agencies;
* Any entity that is providing information or honoring CSED
actions are immune from prosecution as long as they are
acting in good faith;
* Paternity establishment requirements are expanded;
* Parents must be informed of their rights and consequences
of signing an acknowledgement of paternity;
* Paternity establishments of other states must be
accepted;
* The putative father can request blood tests and establish
paternity;
* Paternity parties must provide employer information, so
that the support order can be established and a
withholding order can be sent quickly;
* The location of the custodial parent or child can be
withheld if there is a risk to health, safety or liberty;
* The legislation must conform with all provisions of the
Uniform Family Support Act;
* Fraudulent transfers can be voided when used to evade
child support collections;
* The state has the authority to require delinquent
obligers in AFDC to participate in appropriate work
activities; and
* There is no "statute of limitations" on reporting arrears
to credit bureaus.
Representative Foster MOVED to report CSSB 154 (FIN)am out of
Committee with individual recommendations and the accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
(Tape Change, HFC 97-136, Side 1)
SENATE BILL NO. 151
"An Act relating to public employment labor relations;
relating to the protection of the rights of public employees
under the Public Employment Relations Act; establishing
ethical standards for union representatives of public
employees; and establishing disclosure requirements for public
employee labor organizations."
Work draft # 0-LS0675\P, 5/8/97 was adopted by the House Finance
Committee on 5/8/97.
ART CHANCE, CONTRACT, SENATE FINANCE COMMITTEE noted that the
proposed amendment by Representative Davies, O-LS0675\P.2 dated
5/8/97 would delete section 4 of the bill (copy on file). In
response to a question by Representative Mulder, Mr. Chance
reviewed Amendment 1, by Representative Mulder (copy on file). He
clarified that Amendment 1 addresses the fragmentation issue. The
amendment eradicates a potential source of fragmentation by
eliminating the requirement that employees that are prohibited from
striking be segregated from employees that are not so prohibited.
The non-affiliation requirement for peace officers, subsection (d),
page 3, would be deleted. Peace officers would still be required
to be in units comprised only of peace officers. However, they
could be affiliated with any organization. Representative Mulder
stressed that this is the current practice in regards to peace
officers.
Representative Davies stressed that efficiencies of scale can allow
one management unit to deal with several bargaining units in terms
of accounting and reporting functions. He noted that duplication
of functions would exist if they were required to have a separate
union.
Mr. Chance explained that a "bargaining unit" is the description of
the groups of employees that can be placed together based on a
determination by the Alaska Labor Relations Agency of their sharing
a community of interest. He noted that a union is a organization
that represents a bargaining unit or units. The Alaska Labor
Relations Agency has already decided that correctional officers,
who are peace officers, share a separate and distinct community of
interest. Amendment 1 would allow them to be represented by anyone
they choose. If the Alaska State Employees Association (ASEA) wins
the election this group would be one more bargaining unit within
ASEA. There will not be a duplication of the actual organizational
structure of the unit.
Co-Chair Therriault noted that supervisors are required to be in a
separate bargaining unit.
Representative Mulder noted that the Teamsters represent a number
of police officers in a particular city. The amendment would allow
the Teamsters to continue to represent these officers. Mr. Chance
observed that correctional officers have been a separate unit
inside the General Governmental Unit (GGU) since the mid 1980's.
They have had specific contract provisions.
Representative Mulder referred to section 4 (c), page 3, line 11.
He stressed that a unit does not necessitate a separate union. He
emphasized that separate units can exist within a union. Mr.
Chance agreed and cited examples.
In response to a question by Representative Davies, Representative
Mulder stressed that the legislation will codify current practice.
Representative Davies questioned why the language is needed.
Mr. Chance observed that there could be a conflict between groups,
such as between supervisors and non-supervisors in the same unit.
He noted that it has taken years for the Alaska Labor Relations
Agency to arrive at definitive doctrine through their decisions on
separations. He emphasized that the legislation will incorporate
the evolved standards of the Alaska Labor Relations Agency and
eliminate lawsuits.
Representative Mulder MOVED to adopt Amendment 1. Representative
Davies OBJECTED. Representative Mulder WITHDREW Amendment 1.
Representative Davies MOVED to adopt Amendment 3. Amendment 3
would delete section 4. Representative Mulder OBJECTED for
purposes of discussion.
ED FLANIGAN, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR stressed that
the legislation has not been requested by a labor organization,
employee or the state. The Department prefers that the
supervisory definition be left to regulation.
Mr. Flanigan stated that Amendment 1 would obligate the
Department's primary objection to section 4.
Representative Mulder maintained that Amendment 1 would diminish
the cost of appeals.
Mr. Flanigan acknowledged that the definition of "supervisor" may
not be the best. He stated that the definition "catches too broad
a net". He noted that 200 proposals to transfer positions between
bargaining units have occurred in the first year of the definition
change. He questioned if the definition should be codified.
Mr. Chance stated that the issue is partly technical and partly
economic. He noted that a person who is moved from one bargaining
unit to another due to redesignation or a change in duties, takes
with them the dues that they were paying from one organization to
another organization. He explained that employees fill out a
position description questionnaire. The questionnaire is reviewed
by the commissioner, the department's human resource manager and
their supervisor. The questionnaire is reviewed by the Department
of Administration for bargaining unit placement. If the union
disputes the determination it can petition the agency to make a
decision on what is the appropriate bargaining unit. The employee
cannot petition the agency to make a determination as to whether
the position is in the appropriate unit.
A roll call vote was taken on the MOTION to adopt Amendment 3.
IN FAVOR: Moses, Davies, Grussendorf
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault
Co-Chair Hanley was absent from the vote.
The MOTION FAILED (3-7).
SB 151 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 12:50 p.m.
**FIN131AM
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