Legislature(1997 - 1998)
04/22/1998 04:50 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES SENATE FINANCE COMMITTEE 22 April, 1998 4:50 p.m. TAPES SFC 98 # 136, Side A (000-301) CALL TO ORDER Senator Bert Sharp, Co-chair, reconvened the meeting at approximately 4:50 p.m. PRESENT In addition to Co-chairman Sharp, Senators Pearce, Donley, Torgerson, Adams, Parnell and Phillips were present when the meeting was convened. Also Attending: MARK O'BRIEN, Chief Contracts Officer, Office of the Commissioner, Department of Transportation and Public Facilities; MIKE GREANY, Director, Division of Legislative Finance and aides to committee members and other members of the Legislature. SUMMARY INFORMATION Co-Chair Pearce announced that the Department of Transportation and Public Facilities Subcommittee had just closed out the DOT&PF operating budget. There would be a meeting the next morning at 8:30 to do the closeout at full committee level. That would give the Legislative Finance Division time to get the documentation run and verified by DOT&PF. She continued announcing that the committee would not hear closeouts for the University of Alaska, the Legislature or the Governor's Office at that meeting. Those topics would be noticed as to when they would be heard. Senator Adams asked when copies of the financial forms for the DOT&PF budget would be available. Senator Torgerson estimated they would be ready at about 5:30 p.m. For the committee's information, Senator Torgerson shared that the budget did not include funds for the operation of the Malaspina ferry's day boat service on the Lynn Canal. He did not have enough information by the deadline for the subcommittee report. He said he had been working with the department and told them if they got adequate information to him within the next couple of days, the committee would try to incorporate the program into the budget. He summed up by saying that it was his intent to include that item in the budget, but couldn't put it into the subcommittee report without the necessary information. Senator Adams wanted assurance that there would be an alternative for the Malaspina if the day boat program didn't proceed. Senator Torgerson responded that the plan was for the day boat or nothing. He believed however, that the department would be able to draft an acceptable plan for the committee's consideration. He would offer that plan as an amendment to the full committee when it was ready. Senator Pearce directed MIKE GREANY to have the fiscal analyst, Jim Hauck, fax the budget spreadsheets to Senator Adams' office as soon as they were complete. Mr. Greany suggested that Mr. Hauck first bring the spreadsheets to Senator Torgerson for his approval before distributing any copies. After Senator Torgerson verified the report, Mr. Hauck would provide copies to other committee members, including Senator Adams. Senator Torgerson agreed and offered to fax a copy directly to Senator Adams from his office. Senator Adams expressed his appreciation. Co-Chair Sharp announced that of the four bills scheduled for this meeting, HB 11 would not be heard. The committee was expecting a CS work draft from the Division of Motor Vehicles and the primary sponsor. Also scheduled for a hearing at this meeting was HB 197. According to Co-Chair Sharp, the committee was waiting for a CS on that bill also, which should address Senator Donley's concerns. If the CS arrived before the end of the meeting, Co-Chair Sharp said the committee would address it. Otherwise, it would be rescheduled. SENATE BILL NO. 192 am "An Act relating to maintenance of state marine vessels; and providing for an effective date." Senator Torgerson moved for adoption, as a working document, CS SB 192, Version "E". Without objection, Co-Chair Sharp so ordered. Senator Adams started speaking to amendments. Co-Chair Sharp interrupted offering the sponsor's representative the choice of testifying before or after the amendments. MEL KROGSENG, staff to Senator Robin Taylor, spoke as follows: "Mr. Chairman, probably before and I'll try to be very brief if I may and then I can speak to the amendments as well as I go through it. I just wanted to give you - for the record, I'm Mel Krogseng, staff to Senator Taylor. He's tied up down in the Judiciary Committee meeting and couldn't be here." "The bill before you - or SB 192, just to give you a little refresher, was on the floor in second reading on May 8, 1997. An amendment at that time was offered by Senator Torgerson and was adopted unanimously. On that date, a fiscal note appeared from the Department of Transportation. Senator Pearce, I believe, asked that the bill [be] referred to the Finance Committee. That was done. Late this year, HB 480 was introduced in the other body, which reflects several changes in the bill. We worked with - I was in that meeting on - representing Senator Taylor and we worked with the department to make changes, which have resulted in a zero fiscal noted from the DOT&PF." "The blank CS before you that was just moved, pretty well parallels HB 480, which the department did issue the zero fiscal note on. And just to give you a quick little run down, SB 192 creates a level playing field between bidders for state marine vessel maintenance and repair work. A level playing field helps Alaska's shipyards draw new marine support contractors, vendors and support industries to Alaska and ultimately helps diversify the state's economy and bolster winter employment in our state." "There was a provision in law with AS 36.90.050 and that statute did go off the books last year. This bill will put back some of that language in addition to some additional language, which will give Alaska's shipyards a competitive and equal playing field with outside interests." "And with that Mr. Chairman, the department did have some amendments they asked to be made to the CS. And I believe Senator Torgerson has a copy of those - everybody has a copy of those. Assuming that the impact of those amendments is what we've been told is that they would not any fiscal impact on this legislation, Senator Taylor would concur in their adoption." Senator Adams reminded the committee that at the morning meeting, he had presented Amendment #1. His concerns were related to the State Marine Vessels. He thought that it was bordering on interference with the Department of Public Safety, Division of Fish and Wildlife Protection. Another concern of his had to do with the effective date of August 31, 1998, so regulations could be drafted to comply with the new statute. He had since been assured that the proposals in his amendment would be addressed in Amendments #2 and #3. Because of this, he said he would not be offering Amendment the bill. Senator Torgerson moved for adoption of Amendment #2 and explained the amendment. He said it would cover a lot of Senator Adams' concerns with the exception of the effective date portion. He showed that the amendment would delete the words "Alaska Marine Highway System" and inserted the "the commissioner of the department that operates a marine vessel". He said that was to cover the fish and game portion, explaining that there were other vessels operating in the state system besides those in the Marine Highway System. There was no discussion or objection to Amendment #2 and Co- Chair Sharp ordered it adopted. Senator Torgerson moved for adoption of Amendment #3 and spoke to the changes on page 2, lines 12 and 14. The amendment would change the language to read, 'Primarily serving that portion of the state east of the latitude of Icy Cape...and Seward for those vessels primarily serving the remainder of the state". That would identify the two shipyards, he explained. Co-Chair Sharp clarified the language would mark the territories served by Ketchikan and Seward. Senator Torgerson noted the ferries that serviced Southeast Alaska, were not designed to cross the Gulf of Alaska and therefore should be maintained in Ketchikan. The ferries servicing northern ports were designed as ocean-going vessels and could make the passage to Seward. For that reason, he explained the two shipyards had an unwritten agreement to split the service in that manner. While this bill didn't necessarily do that, it gave the primary location for the work to be performed, he concluded. Without objection Amendment #3 was adopted. Senator Torgerson requested a representative of DOT&PF comment on the bill in its present form. MARK O'BRIEN the department Planning Contracts Officer came to the table and spoke as follows" "We're familiar with the bill as amended and support that version and believe it has no effect on the fiscal notes that were submitted." Senator Torgerson pointed out that the previous fiscal note was $325,000 and the fiscal note for this version would be zero, so he felt there would be some impact. Mr. O'Brien stated that he had been unaware of the earlier $325,000 fiscal note, but his comments pertained to the zero fiscal note. Senator Torgerson asked if he was satisfied with the effective date of the bill. Senator Adams responded the date was fine and that the regulations could be written in time. Senator Torgerson offered a motion to move CS SB 192 (FIN), Version "E" as amended, from committee with a zero fiscal note. Co-Chair Sharp so ordered, as there were no objections. CS FOR SENATE BILL NO. 219(JUD) "An Act relating to establishing an office of crime victims' rights; and amending Rule 16, Alaska Rules of Criminal Procedure, Rule 9, Alaska Delinquency Rules, and Rule 501, Alaska Rules of Evidence." CS FOR SENATE BILL NO. 219(FIN) "An Act relating to establishing an office of victims' rights; relating to eligibility for a permanent fund dividend for persons convicted of and incarcerated for certain offenses; and amending Rule 16, Alaska Rules of Criminal Procedure, Rule 9, Alaska Delinquency Rules, and Rule 501, Alaska Rules of Evidence." Co-Chair Sharp noted this bill was carried over from the morning meeting. He pointed out that a new CS had been prepared, which he felt would accomplish what was discussed regarding the inclusion of the funding source into the bill. He also offered that a representative of the sponsor was present to answer questions, if necessary. Senator Pearce moved the CS, Version "H", as a working document for SB 219. Senator Adams objected for the purpose of asking a question. He asked if the CS took into consideration the amendments. Senator Donley answered that the committee had already adopted the amendments and that they had been incorporated into the CS. Senator Adams removed his objection. Co-Chair Sharp ordered CS SB 219, Version "H" adopted as a working document. Co-Chair Sharp told members a new fiscal note would be provided from the Legislative Affairs Agency to show a funding source change and the $4 million revenue. He told members that if the bill moved out of the committee, it would be subject to the new fiscal note accompanying it prior to being read across on the Senate floor. With that understanding, Senator Donley offered a motion to move CS SB 219 (FIN), Version "H" with accompanying fiscal notes and the forthcoming fiscal note from LAA. Senator Adams objected, saying this bill was tied to another piece of legislation the committee reported out this morning. He wanted to know if this bill was still dependant on the other, which had the funding source. Senator Donley assured him that this bill was now self-contained and could go on its own. Even if SB 274 did not pass, this bill could still accomplish its intention. Co-Chair Sharp asked if there was objection to moving CS SB 219(FIN) from committee and hearing none, so ordered. Co-Chair Sharp noted that the committee had not received the expected new CS for HB 197 during the meeting so it would not be taken up. HB 11 would have a new CS in the next two days, after the Division of Motor Vehicles and the sponsor had an opportunity to review and comment. He voiced concerns with the federal funding and stressed he didn't want to make changes to the bill that would jeopardize those funds. That was the reason for submitting the CS to the department first for consideration. He would announce the next hearing dates for the two bills. Senator Pearce repeated her announcement for the DOT&PF Subcommittee closeout meeting to be held the next morning at 8:30. At 9:00 a.m., the committee would begin hearing public testimony on the operating budget. Senator Pearce announced she had a very excited four-year old daughter in her office, who wished to invite everyone to share her birthday cake as soon as this meeting adjourned. Co-Chair Sharp announced the committee would not be taking up bills during the remainder of the week because of the time needed to be spent on the operating budget. He said bill hearings could be scheduled during the next week, depending on the progress of the operating budget. There was further discussion on the schedule for the weekend and the next week. Senator Adams had a question regarding the public testimony hearing the next morning. He wanted to know if, after the 9:00 a.m. meeting, would the committee resume taking testimony at 4:30 p.m. Senator Pearce said testimony would be taken from 9:00-11:00 a.m. for people attending the meeting in-person, and starting at 4:30 p.m. for those wishing to testify via teleconference. She added that because Senator Parnell would be unavailable on Saturday, her intention was to begin working on amendments to the operating budget on Friday morning and continue on Sunday afternoon, if necessary. Unless the committee became bogged down, she was not planning operating budget closeouts on Saturday. ADJOURNMENT Co-Chair Sharp adjourned the meeting at approximately 5:05 p.m. SFC-98 (7) 4/22/98 p.m.
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