Legislature(2005 - 2006)SENATE FINANCE 532
02/22/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| SJR6 | |
| Start |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 6 | TELECONFERENCED | |
| + | HB 47 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
February 22, 2005
9:04 a.m.
CALL TO ORDER
Co-Chair Green convened the meeting at approximately 9:04:45 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Lyman Hoffman
Also Attending: LALANYA SNYDER, Staff to Senator Ralph Samuels; PAT
DAVIDSON, Legislative Auditor, Legislative Audit Division
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SJR 6-FEDERAL MEDICAL ASSISTANCE REDUCTION
The resolution reported from Committee.
HB 47-EXTEND BOARD OF REAL ESTATE APPRAISERS
The Committee heard from the bill's sponsor and the Legislative
Audit Division. The bill was held in Committee.
SENATE JOINT RESOLUTION NO. 6
Relating to a reduction in the Federal Medical Assistance
Percentage for Alaskans, and urging the United States Congress
to take action to prevent the reduction.
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Green noted that this bill had been held in Committee in
order to receive updated fiscal note information.
Co-Chair Wilken informed the Committee that four new Department of
Health and Social Services fiscal notes have been provided that
more accurately depict the impact to the State were the FFY 06
Federal Medical Assistance Payment (FMAP) to decrease from the
current 57.58 percent level to the proposed 50.16 percent level. He
specified that these new fiscal notes, rather than the Legislative
Affairs Agency's zero fiscal note dated February 16, 2005, should
advance with the bill. The analysis located on page two of each of
the four new fiscal notes provides the detailed effect on each
component.
Co-Chair Wilken mentioned that the Department of Health and Social
Services' handout titled "Impact of FMAP Reduction on State Match"
[copy on file] would provide Members additional information
regarding the impact of the federal percentage match changes over
time.
Senator Hoffman voiced that while he supports the Joint Resolution,
he is concerned about how the projected financial impact to the
State would be addressed in the FY 06 budgetary process;
specifically whether Governor Frank Murkowski or this Committee's
Department of Health and Social Services (H&SS) subcommittee would
be providing direction in its regard.
Co-Chair Wilken commented that the projected $52 million impact to
the State is not included in Governor's FY 06 budget. The decision
regarding whether to include this issue in this year's budget has
not, of yet, been finalized. The situation could be easily resolved
"structurally" but not easily resolved "financially".
Co-Chair Green noted that the federal government might not address
this issue by the time that the Alaska Legislature finalizes its FY
06 budget. Either zero or $52 million could be required. She asked
Senator Hoffman whether he had any suggestions as to how the H&SS
subcommittee could address this situation in the budget.
Senator Hoffman replied that, "we are a very rich State."
Co-Chair Wilken moved to report SJR 6 from Committee with
individual recommendations and four new fiscal notes.
There being no objections, SJR 6 was REPORTED from Committee with
four new zero fiscal notes, dated February 18, 2005, from the
Division of Behavioral Health, The Office of Children's Services,
the Division of Senior and Disabilities Medicaid Services, and the
Division of Health Care Services, Department of Health and Social
Services.
CS FOR HOUSE BILL NO. 47(FIN)
"An Act extending the termination date of the Board of
Certified Real Estate Appraisers; and relating to the
requirements for membership on the Board of Certified Real
Estate Appraisers."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Green stated that this bill would extend the life of the
Board of Certified Real Estate Appraisers.
LALANYA SNYDER, Staff to Representative Ralph Samuels, the bill's
sponsor, expressed that this "simple bill" would extend the Board,
which is responsible for setting professional standards for the
real estate appraisal profession, developing exam standards for the
certification of real estate appraisers, and adopting regulations
to satisfy state and federal regulations until June 30, 2010. She
also noted that the Division of Legislative Audit supports the
extension of the Board and that the language changes proposed in
the bill would make it "more consistent." The sponsor would
appreciate the Members' support of this legislation
Co-Chair Green asked for further information regarding the proposal
to amend language in Sec 08.87.010 to require that general and
residential real estate appraiser Board members should be
"certified" rather than "licensed."
Ms. Snyder stated that while the terms are used interchangeably;
the proposed change would align language in Sec. 08.87.010. Board
Created. with the State Statute that utilizes the term "certified."
Co-Chair Green pointed out that the Department of Commerce,
Community and Economic Development Fiscal Note #1, dated February
20, 2005 would be revised to "more properly" reflect the Board's FY
06 expenses. It was noted that the Board was terminated on June 30,
2004, and, as routine for terminated boards, was allowed one-year
to conclude its affairs.
PAT DAVIDSON, Legislative Auditor, Division of Legislative Audit,
informed that, in order to quality for federal deposit insurance
and to participate in selling federal mortgage loan programs such
as Fannie Mae and Freddie Mac, financial institutions in the State
must utilize State certified real estate appraisers. While Audit
Control Number: 08-20024-03, dated July 17, 2003 did not include
any recommendations other than supporting the extension of the
Board, it should be noted that the Board's financial deficit had
been addressed last year via such things as increasing fees and
reducing costs. No financial concerns are reflected in the Audit.
Co-Chair Green understood therefore that any areas of concern have
been addressed. She also noted that this Board serves an important
role.
Senator Hoffman asked for further information regarding language on
page eight of the Audit in the section titled "Recent federal study
determined oversight of real estate appraisers should be enhanced"
that specifies that the Board's "scope should be expanded."
Ms. Davidson replied that, included in the Audit is reference to a
prior General Accounting Office (GAO) report that reviewed the
entire federal Title XI program and whether qualifications of real
estate appraisers should be expanded or enhanced. The State Statute
includes language to the effect that certified real estate
appraisers in the State "maintain their performance in accordance
with the federal requirements for their profession." Therefore,
were any changes to occur at the federal level, these professionals
would be required to conform to the point at which further State
action might be required. She noted that GAO's name has now been
changed to the General Accountability Office.
Co-Chair Green understood that page seven of the Audit addresses
items pertinent to State oversight of these professions and page
eight addresses the federal oversight.
Co-Chair Green ordered the bill HELD in order to acquire the
aforementioned revised fiscal note.
ADJOURNMENT
Co-Chair Green adjourned the meeting at 09:17 AM.
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