Legislature(1993 - 1994)
02/23/1993 03:00 PM House L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE
STANDING COMMITTEE
February 23, 1993
3:00 p.m.
MEMBERS PRESENT
Rep. Bill Hudson, Chairman
Rep. Joe Green, Vice Chairman
Rep. Brian Porter
Rep. Bill Williams
Rep. Joe Sitton
Rep. Jerry Mackie
MEMBERS ABSENT
Rep. Eldon Mulder
COMMITTEE CALENDAR
HB 65: "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."
CS MOVED FROM COMMITTEE
HB 39: "An Act relating to prevention, abatement, and
control of air pollution; and providing for an
effective date."
NOT HEARD - POSTPONED
WITNESS REGISTER
BRANT McGEE, Director
Office of Public Advocacy
Department of Administration
900 W. 5th, Suite 525
Anchorage, Alaska 99501-2090
274-1684
Position Statement: Answered questions re: OPA changes
(Spoke via teleconference)
CHERYL FRASCA, Director
Division of Budget Review
Office of Management and Budget
Office of the Governor
P.O. Box 110020
Juneau, Alaska 99811-0020
465-4681
Position Statement: Spoke on behalf of administration
concerning HB 65
DAVID DIERDORF, Revisor of Statutes
Division of Legal Services
Legislative Affairs Agency
130 Seward St.
Juneau, Alaska 99801-2105
465-2450
Position Statement: Spoke to revisions in HB 65
DOUG HANON, Finance Officer
Postsecondary Education Commission
Department of Education
P.O. Box 110505
Juneau, Alaska 99811-0505
465-2854
Position Statement: Answered questions on HB 65
DON HITCHCOCK, Director
Division of Risk Management
Department of Administration
P.O. Box 110218
Juneau, Alaska 99811-0218
465-2180
Position Statement: Answered questions on HB 65
JANICE ADAIR, Assistant Commissioner
Department of Environmental Conservation
410 Willoughby Ave., Suite 105
Juneau, Alaska 99801-1795
465-5010
Position Statement: Testified on HB 65
PREVIOUS ACTION
BILL: HB 65
SHORT TITLE: FINANCIAL ADMINISTRATION OF STATE GOVT.
BILL VERSION:
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
TITLE: "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."
JRN-DATE JRN-PG ACTION
01/15/93 75 (H) READ THE FIRST TIME/REFERRAL(S)
01/15/93 75 (H) L&C, STATE AFFAIRS, JUDICIARY,
FINANCE
01/15/93 75 (H) -8 FNS(2-DEC, 2-DHSS, LABOR,
DNR, DPS
01/15/93 75 (H) ADM) PUBLISHED 1/15/93
01/15/93 75 (H) -5 REVENUE FNS(DPS, 2-LABOR,
2-DOE)1/15
01/15/93 75 (H) -5 ZERO FNS (3-ADM,LABOR,REV)
1/15/93
01/15/93 75 (H) GOVERNOR'S TRANSMITTAL LETTER
02/01/93 201 (H) -REVISED FN (DNR) 2/1/93
02/08/93 251 (H) -CORRECTED FN (DNR) 2/8/93
02/09/93 (H) L&C AT 03:00 PM CAPITOL 17
02/11/93 (H) L&C AT 03:00 PM CAPITOL 17
02/23/93 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 39
SHORT TITLE: CLEAN AIR ACT AMENDMENTS
BILL VERSION: SSHB 39
SPONSOR(S): REPRESENTATIVE(S) BROWN,B.Davis,Finkelstein
TITLE: "An Act relating to prevention, abatement, and
control of air pollution and providing for an effective
date."
JRN-DATE JRN-PG ACTION
01/11/93 34 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 34 (H) LABOR & COMMERCE, RESOURCES,
FINANCE
01/13/93 54 (H) COSPONSOR(S): FINKELSTEIN
01/20/93 (H) MINUTE(RES)
02/03/93 213 (H) SPONSOR SUBSTITUTE
INTRODUCED-NEW TITLE
02/03/93 213 (H) REFERRED TO L&C, RESOURCES,
FINANCE
02/16/93 (H) L&C AT 03:00 PM CAPITOL 17
02/23/93 (H) L&C AT 03:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 93-15, SIDE A
Number 000
CHAIRMAN BILL HUDSON called the House Labor and Commerce
Committee to order at 3:10 p.m. on February 23, 1993.
Members present were Reps. Hudson, Green, Porter, Williams,
Sitton and Mackie. Rep. Mulder was absent due to illness.
HB 65: IMPROVEMENT OF STATE FINANCES
CHAIRMAN HUDSON outlined the material contained in the
members' bill packets. Chairman Hudson explained that it
was his intention to ask the committee to review and move
out a committee substitute (CS) covering the treatment of
fees by the state and to ask the committee to approve the
introduction of two other bills covering most of the rest of
HB 65.
CHAIRMAN HUDSON further explained there were serious
problems with the content of the bill violating the single
subject rule. It was therefore decided to divide it up into
the following:
1) the CS will cover the biannual treatment of the various
licenses and fees;
2) a new bill for introduction to cover changes to
Medicaid; and
3) a new bill for introduction for the changes to the
Division of Motor Vehicles.
Number 211
CHERYL FRASCA, DIRECTOR, BUDGET REVIEW, OFFICE OF MANAGEMENT
AND BUDGET, outlined section by section the new committee
substitute.
SECTIONS 1 THROUGH 32
MS. FRASCA testified that Sections 1 through 32 concerned
the Alcohol Beverage Control Board (ABC Board), and by
changing the payment of fees from an annual to biennial
basis, the board would be able to spread out the workload.
SECTIONS 33 THROUGH 35
BRANT McGEE, DIRECTOR, OFFICE OF PUBLIC ADVOCACY, DEPARTMENT
OF ADMINISTRATION, testified that this section would allow
his agency to charge fees for public guardians to people who
are incapacitated but can afford to pay for the services.
Number 278
REP. MACKIE inquired why the word `may' replaced the word
`shall' in Section 34.
MR. MCGEE explained that the OPA does not have the resources
to investigate every case where a public guardian is
appointed or requested, so this language change would give
the agency some discretion.
SECTIONS 36 THROUGH 43
MS. FRASCA explained that these sections give the
postsecondary education department the right to charge a one
percent loan guarantee fee.
Number 300
DAVID DIERDORF, REVISOR OF STATUTES, LEGISLATIVE AFFAIRS
AGENCY, suggested the committee amend the language in
Section 38, page 12, line 1: after the word `and' insert
"subject to appropriation,".
MR. DIERDORF suggested the same language change to Section
40, page 12, line 20.
CHAIRMAN HUDSON asked what happens to the money collected
through this one percent loan guarantee fund.
MS. FRASCA explained that this fund would be used to help
defray costs of defaults, deaths and disability.
CHAIRMAN HUDSON noted that the statutes already provide for
these types of problems.
Number 350
DOUG HANON, FINANCE OFFICER, POSTSECONDARY EDUCATION
COMMISSION, testified that the one percent fee was a one
time only fee and comes off the top of the loan. The
commission views this money as an insurance policy against
defaults.
REP. PORTER asked if this one percent fee was like points a
person would pay at the bank for a mortgage loan.
REP. PORTER also inquired if this fee would be retroactive.
MR. HANON said no, the one percent would only apply to new
applications.
Number 365
The committee asked for further clarification on how the one
percent fee would be handled within the department.
MR. HANON responded with examples.
SECTIONS 44 THROUGH 48
Number 465
MS. FRASCA stated that Sections 44 through 48 address some
fee increases and changes in which certificates are issued
in the Department of Labor.
REP. PORTER told the committee for their information that he
had an amendment to Section 47.
Number 483
REP. MACKIE asked why, in Sections 44 and 45, the fees
weren't spelled out.
MS. FRASCA explained that the trend in recent years has been
to allow the departments to set the fees and not spell them
out in statute. It was felt it was more difficult to set
fees in statute because the process is more political.
MS. FRASCA stated that Section 48 raised the fees paid by
approximately eight agencies in the state from $10 to $100,
for a net benefit to the state of $700.
REP. SITTON suggested the committee delete this section
completely since the revenue generated was so small and the
number of businesses affected was low.
CHAIRMAN HUDSON stated he believed that to remain consistent
in the in fee structure this one would have to be increased
too.
REP. MACKIE commented that it seemed strange to be in the
business of charging people who help others get jobs.
SECTIONS 49 AND 50
Number 533
MS. FRASCA outlined these sections as dealing with the
definition of program receipts. She said AETNA currently
pays the state of Alaska to administer the health benefits
program, and the new language would change the account the
money would be deposited to.
SECTIONS 50 AND 51
Number 550
MS. FRASCA explained that this section related to the
catastrophe reserve account and was amended to allow
deposits of proceeds from state insurance settlements. Ms.
Frasca further stated that it was the federal government
that noted that since there were federal monies involved,
the money should not be deposited in the general fund but
into the catastrophe reserve account.
CHAIRMAN HUDSON asked for the amount in this account.
Number 565
DON HITCHCOCK, DIRECTOR, DIVISION OF RISK MANAGEMENT,
testified that the catastrophe reserve account was capped at
$5,000,000. Mr. Hitchcock further stated that if the state
collected more than $5,000,000 the balance would go into the
general fund.
SECTIONS 52 AND 53
MS. FRASCA testified that these sections would provide a
vehicle for the state to charge for use of park facilities.
CHAIRMAN HUDSON noted that this idea had been before the
legislature last year and was not a popular one.
SECTIONS 54 AND 55
MS. FRASCA explained that Section 54 allowed the Department
of Environmental Conservation to charge for inspections that
under current statutes it was mandated to perform. Section
55 requires the department to charge for both direct and
indirect costs of air quality permit programs.
TAPE 93-15, SIDE B
Number 000
JANICE ADAIR, ASSISTANT COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, testified that Section 55 would
broaden the department's authority to charge fees to all the
health related public facility inspections that the
department performs.
SECTION 56
MS. FRASCA explained that this section repeals AS
13.26.410(b) and AS 37.05.210(1). The first repealed
statute would eliminate the court's responsibility to
determine the ability to pay by persons needing services
from the OPA under this section. The second statute to be
repealed would make a change in the uniform accounting
procedure that was no longer needed since the state
implemented its new accounting system eight years ago.
SECTION 57
MS. FRASCA stated this section allows the Department of
Natural Resources to establish temporary fees until the
permanent fee structure is in place.
Number 089
CHAIRMAN HUDSON inquired if there were any public hearing
processes to establish temporary fees.
MS. FRASCA answered no.
SECTION 58
MS. FRASCA testified that Section 58 allows for a transition
period for implementation of the biennial licenses issued by
the ABC Board.
SECTION 59
MR. DIERDORF explained that this section gives the authority
to the state agencies to proceed on the regulation process.
SECTION 60
MR. DIERDORF stated this section would allow the Department
of Administration to charge for guardian's services without
a court order. It would have the effect of amending the
Alaska Rule of Probate Procedure.
CHAIRMAN HUDSON noted that this section would require a 2/3
vote since it changes a court order.
SECTIONS 61 THROUGH 64
MS. FRASCA stated these sections provided for effective
dates.
Number 152
REP. MACKIE moved that CSHB 65(L&C) be adopted by the
committee and asked for unanimous consent. There being no
objections, it was so ordered.
Number 159
REP. MACKIE moved Amendment 1 as suggested by the revisor of
statutes, that on page 12, line 1, and page 12, line 20,
following the word `and' insert ", subject to
appropriation". No objections were heard and it was so
ordered.
REP. PORTER moved Amendment 2: on page 14 delete lines 13
through 17 and replace it with the following:
(7) charge and collect reasonable fees, established by the
council by regulation, for processing applications for basic
certification of police, probation, parole, and correctional
officers under 13 AAC 85.040 and 230.
No objections were heard; it was so ordered.
Number 258
REP. MACKIE asked to be excused from committee as he had
other business.
Number 260
REP. SITTON moved Amendment 3: on page 14 delete lines 18
through 22. An objection was noted. Discussion ensued.
REP. SITTON noted that this section only affects eight
businesses and brings in a minimal amount of money to the
state. Rep. Sitton further stated that the section was more
bothersome than it was worth.
CHAIRMAN HUDSON again noted his belief that if the state was
going to charge fees for services, then they should be
consistent.
REP. SITTON withdrew his amendment.
Number 360
REP. GREEN moved Amendment 4: housekeeping amendments. No
objections were heard; it was so ordered.
REP. PORTER moved CSHB 65(L&C)am with fiscal notes and asked
unanimous consent. No objections were heard; it was so
ordered.
Number 370
CHAIRMAN HUDSON asked if the committee had any objections to
introducing the two work drafts noted earlier covering
Medicaid and motor vehicle issues as Labor and Commerce
bills. No objections were heard; it was so ordered.
CHAIRMAN HUDSON adjourned the meeting at 4:27 p.m.
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