Legislature(1999 - 2000)

04/18/2000 05:45 PM RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                SENATE RULES COMMITTEE                                                                                          
                    April 18, 2000                                                                                              
                     5:45 p.m.                                                                                                  
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Tim Kelly, Chair                                                                                                        
Senator Loren Leman, Vice Chair                                                                                                 
Senator Mike Miller                                                                                                             
Senator Drue Pearce                                                                                                             
Senator Johnny Ellis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
None                                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 331                                                                                                              
"An Act relating to payment, allowances, and benefits of members of                                                             
the Alaska National Guard and Alaska Naval Militia in active                                                                    
service; relating to computation of certain benefits for members of                                                             
the Alaska State Militia; and providing for an effective date."                                                                 
     -MOVED CSHB 331(RLS) OUT OF COMMITTEE                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 191(FIN)                                                                                                  
"An Act relating to charter schools."                                                                                           
     -MOVED CSHB 191(FIN) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 272                                                                                                              
"An Act relating to the tax assessment by a home rule or general                                                                
law municipality of housing that qualifies for the low-income                                                                   
housing credit under the Internal Revenue Code; and providing for                                                               
an effective date."                                                                                                             
     -MOVED HB 272 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 256                                                                                                             
"An Act relating to regulation of managed health care and allowing                                                              
physicians to collectively negotiate with a health care insurer                                                                 
that has substantial market power."                                                                                             
     -MOVED ALL VERSIONS OF SB 256 OUT OF COMMITTEE                                                                             
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
HB 331 - See Finance Report dated 4/18/00.                                                                                      
                                                                                                                                
HB 191 - See HESS minutes dated 3/27/00, 4/05/00 and 4/10/00 and                                                                
Finance Report dated 4/15/00.                                                                                                   
                                                                                                                                
HB 272 - See CRA minutes dated 3/1/00, Finance Report dated 4/16/00                                                             
and Rules minutes dated 4/16/00.                                                                                                
                                                                                                                                
SB 256 -  See HESS minutes dated 2/21/00 and 2/23/00, Finance                                                                   
Report dated 4/7/00 and Rules minutes dated 4/17/00.                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Carol Carroll                                                                                                                   
Administrative Services Division                                                                                                
Department of Military and Veterans Affairs                                                                                     
400 Willoughby Ave., Ste. 500                                                                                                   
Juneau, AK  99811                                                                                                               
POSITION STATEMENT:  Answered questions about HB 331                                                                            
                                                                                                                                
Representative Fred Dyson                                                                                                       
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Sponsor of HB 191                                                                                           
                                                                                                                                
Kathi Gillespie                                                                                                                 
Anchorage School Board                                                                                                          
Municipality of Anchorage                                                                                                       
PO Box 196650                                                                                                                   
Anchorage, AK  99519                                                                                                            
POSITION STATEMENT: Explained a proposed amendment to HB 191                                                                    
                                                                                                                                
Jonathon Lack                                                                                                                   
Legislative Aide to Representative Halcro                                                                                       
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Testified for the sponsor of HB 272                                                                        
                                                                                                                                
Julia Coster                                                                                                                    
Assistant Attorney General                                                                                                      
Department of Law                                                                                                               
1031 W 4th Ave., Suite 200                                                                                                      
Anchorage, AK  99501-1994                                                                                                       
POSITION STATEMENT: Explained a proposed amendment to SB 256                                                                    
                                                                                                                                
Senator Pete Kelly                                                                                                              
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Sponsor of SB 256                                                                                          
                                                                                                                                
Mike Ford                                                                                                                       
Division of Legal Services                                                                                                      
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Commented on a proposed amendment to SB 256                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-12, SIDE A                                                                                                              
                                                                                                                                
CHAIRMAN KELLY called the Senate Rules Committee meeting to order                                                               
at 5:45 p.m.  All members were present.  The first order of                                                                     
business to come before the committee was CSHB 331(MLV).                                                                        
        HB 331-AK NATL GUARD/NAVAL MILITIA/DEFENSE FORCE                                                                        
                                                                                                                                
CHAIRMAN KELLY noted that a technical amendment had been proposed.                                                              
That amendment reads as follows.                                                                                                
                                                                                                                                
                       A M E N D M E N T                                                                                        
                                                                                                                                
OFFERED IN THE SENATE                             BY SENATOR LEMAN                                                              
TO:  CSHB 331(MLV)                                                                                                              
                                                                                                                                
Page 3, Lines 15-27:                                                                                                            
     DELETE ALL MATERIAL                                                                                                        
                                                                                                                                
     INSERT:                                                                                                                    
     (B) Members of the Alaska National Guard and Alaska Naval                                                                  
     Militia are entitled to receive, for each day of active                                                                    
     service under AS 26.05.070, pay [AND ALLOWANCES] equal to 200                                                              
     percent of the minimum daily basic pay [THOSE] provided by                                                                 
     federal laws and regulations for members of equivalent grades                                                              
     of the United States armed forces.  However, a member may not                                                              
     receive less that $105 [$65] per day for active service                                                                    
     performed during the fiscal year ending June 30, 2000 [1982].                                                              
     For fiscal years beginning after June 30, 2000 [1982], the                                                                 
     minimum payment of [$65] $105 shall be increased one percent                                                               
     for each percent increase in the consumer price index for [of]                                                             
     Anchorage, Alaska, as determined by the United States                                                                      
     Department of Labor, Bureau of Labor Statistics, not to exceed                                                             
     an annual increase of 4 [10] percent.  The increase, if any,                                                               
     takes effect not more than 30 days after the release of the                                                                
     consumer price index.  The consumer price index that is                                                                    
     published immediately after July 1, 1999 [1981], is the                                                                    
     reference base index.                                                                                                      
                                                                                                                                
CHAIRMAN KELLY asked a DMVA representative to explain Senator                                                                   
Leman's amendment.                                                                                                              
                                                                                                                                
MS. CAROL CARROLL, Administrative Services Division, Department of                                                              
Military and Veterans Affairs (DMVA), explained Senator Leman's                                                                 
proposed amendment to HB 331 as follows.  The amendment changes the                                                             
existing statute provision that sets the minimum basic pay for                                                                  
Alaska National Guardsmen at $65 per day to $105 per day.  It also                                                              
changes the base year from June 30, 1982 to June 30, 2000.  In                                                                  
addition, it lowers the ceiling for the amount of the consumer                                                                  
price index (CPI) that the daily pay rate can be adjusted on from                                                               
10 to 4 percent.  Since 1960, the CPI has risen over 4 percent only                                                             
13 times.                                                                                                                       
                                                                                                                                
SENATOR LEMAN moved to adopt the amendment.                                                                                     
                                                                                                                                
CHAIRMAN KELLY objected and asked for further explanation.                                                                      
                                                                                                                                
SENATOR LEMAN commented that some of the provisions in the                                                                      
amendment were proposed by DMVA but he suggested updating the                                                                   
provisions that were 20 years old.  He also suggested that the                                                                  
ceiling be set at 4 percent the inflationary period that we was                                                                 
occuring when that provision first took effect in the early 1980's                                                              
no longer exists.  Since 1985, there have only been two years in                                                                
which the CPI increase was more than 4 percent.  This will only                                                                 
affect the pay rates of guardsmen at the very bottom of the scale                                                               
where the minimum amount kicks in.  Right now it is set at two                                                                  
times the federal pay or the minimum, whichever is more.                                                                        
                                                                                                                                
CHAIRMAN KELLY asked if the reason for this section is that                                                                     
calculating pay and allowances is a difficult computation that                                                                  
usually equals 200 percent.                                                                                                     
                                                                                                                                
MS. CARROLL said that is correct and explained that, essentially,                                                               
this bill attempts to eliminate a lot of complicated calculations.                                                              
                                                                                                                                
CHAIRMAN KELLY asked for examples of the types of allowances that                                                               
are paid.                                                                                                                       
                                                                                                                                
MS. CARROLL stated the guardsmen are given a housing allowance,                                                                 
food allowance, and a cost of living allowance which is changed by                                                              
the federal government about every two weeks.  This bill attempts                                                               
to get rid of that administrative burden while maintaining the same                                                             
amount the soldiers are making now, which equals about 200 percent.                                                             
A new calculation will be used that does not include any                                                                        
allowances.  The new system will allow DMVA to process pay checks                                                               
faster.                                                                                                                         
                                                                                                                                
MS. CARROLL replied that HB 331 is a streamlining bill.  DMVA is                                                                
trying to get rid of some administrative overhead caused by the                                                                 
burdensome calculations.                                                                                                        
                                                                                                                                
CHAIRMAN KELLY asked Ms. Carroll to explain the last line of the                                                                
amendment.                                                                                                                      
                                                                                                                                
MS. CARROLL replied that since 1981, DMVA has been using the dollar                                                             
amount that was set in statute at that time to calculate what the                                                               
pay would be with the CPI.  As of July 1, 1999, that amount was                                                                 
$105 which is what DMVA uses now, so that amount was included in                                                                
the amendment to be used as the new base amount.                                                                                
                                                                                                                                
CHAIRMAN KELLY asked whether the July 1, 2000 CPI will contain an                                                               
increase requiring the base amount to be increased beginning July                                                               
1, 2000.                                                                                                                        
                                                                                                                                
MS. CARROLL said yes, and when the CPI comes out in July, DMVA will                                                             
do another calculation depending upon the CPI for Anchorage.                                                                    
                                                                                                                                
CHAIRMAN KELLY asked if the increases should begin the next year                                                                
because the 200 percent is a little bit more than the basic pay and                                                             
allowances.                                                                                                                     
                                                                                                                                
MS. CARROLL stated that the 200 percent is a little bit less.                                                                   
                                                                                                                                
SENATOR LEMAN noted that for three of the grades it is a little bit                                                             
more but for most of the grades it is less.                                                                                     
                                                                                                                                
CHAIRMAN KELLY asked if there was objection to adopting the                                                                     
amendment.  There being none, the amendment was adopted.                                                                        
                                                                                                                                
SENATOR LEMAN moved to calendar, at the Chairman's discretion, all                                                              
Senate versions of HB 331 with accompanying fiscal notes and                                                                    
individual recommendations.  There being no objection, the motion                                                               
carried.                                                                                                                        
                                                                                                                                
                     HB 191-CHARTER SCHOOLS                                                                                     
                                                                                                                                
CHAIRMAN KELLY informed Representative Dyson that the Anchorage                                                                 
School District has prepared an amendment to SCS CSHB 191(FIN).                                                                 
                                                                                                                                
REPRESENTATIVE FRED DYSON, sponsor of HB 191, said that the charter                                                             
school law in Alaska is one of the weakest in the nation.  When it                                                              
was enacted in 1995, proponents believed it would have to be                                                                    
revisited.  This bill does four relatively uncontroversial things.                                                              
It extends the contract periods; it doubles the cap and removes the                                                             
geographic requirements; it removes the sunset provision; and it                                                                
allows for a waiver by the fire marshall of public school safety                                                                
requirements.  His original intent was to also open up the                                                                      
accounting process so that charter school negotiators could see                                                                 
where the money they get or do not get comes from.  That provision                                                              
was problematic because a number of school districts said they are                                                              
unable to provide that information.  The remaining noncontroversial                                                             
parts of the bill must pass this session to enable some charter                                                                 
schools to continue.  The Department of Education and Early                                                                     
Development and the State Board of Education recommended the                                                                    
version before the committee [SCS CSHB 191(FIN)] but there is a                                                                 
strong case to remove a portion of the bill.                                                                                    
                                                                                                                                
SENATOR LEMAN asked Representative Dyson what his recommendation                                                                
is.                                                                                                                             
                                                                                                                                
REPRESENTATIVE DYSON responded that he would "stand pat" but he                                                                 
admitted the Anchorage School District has a good argument.                                                                     
                                                                                                                                
CHAIRMAN KELLY asked if Representative Dyson would prefer to stand                                                              
pat on this bill and look at the argument at a future time.                                                                     
                                                                                                                                
REPRESENTATIVE DYSON replied, "I would, but they make a good case,                                                              
they may be right."                                                                                                             
                                                                                                                                
Number 181                                                                                                                      
                                                                                                                                
KATHI GILLESPIE, Co-Chair of the Legislative Subcommittee of the                                                                
Anchorage School District, expressed the school district's concerns                                                             
with SCS CSHB 191(FIN).  The school district recommends the                                                                     
deletion of Section 4(e) on page 3, lines 6-11.  Section 4(e)                                                                   
reads:                                                                                                                          
                                                                                                                                
     (e) In addition to the amount provided to an approved charter                                                              
     school in the annual program budget under (a) of this section,                                                             
     a charter school budget must include an allocation equal to                                                                
     the amount determined by dividing the amount of local revenues                                                             
     contributed under AS 14.17.410(c) by the average daily                                                                     
     membership of the district and multiplying that number by the                                                              
     average daily membership of the charter school.                                                                            
                                                                                                                                
The school district's concern with Section 4(e) is that it sets a                                                               
precedent for funding charter school students in a different manner                                                             
than funding for all other school district students.  This section                                                              
basically says that charter school students will not be held                                                                    
accountable for contributing to districtwide operations and                                                                     
services.  Currently, local funding is distributed in the following                                                             
manner:  the local funding is received and the four mills is                                                                    
contributed for all students, including charter school students, in                                                             
order to access foundation formula monies.  The school district has                                                             
some discretion with the remainder of those monies to address the                                                               
needs of students in specific schools.  It is true that an equal                                                                
amount is not spent on each student in the Anchorage School                                                                     
District.  The amount spent depends on the location, whether the                                                                
student is at risk, the income level of the family and other                                                                    
factors.  It does cost the district more to educate some students                                                               
than others.  The district is concerned that this bill will set a                                                               
precedent so that some students can say they get their portion                                                                  
first and that they do not have to contribute to the discretionary                                                              
amount that is distributed according to need.  That precedent will                                                              
allow neighborhood schools to demand the same treatment.  The                                                                   
district has never funded public education this way; it has always                                                              
had the discretion to spend the money to bring all students up to                                                               
a particular standard.  The district fears that if Section 4(e) is                                                              
left in the bill, it will negate the school district's ability to                                                               
do that.                                                                                                                        
                                                                                                                                
MS. GILLESPIE asked committee members to delete Section 4(e) and                                                                
noted the district has offered to work with Representative Dyson                                                                
over the summer on the issue of funding for charter school                                                                      
students.  She noted that the four charter schools in the Anchorage                                                             
School District are still functioning; three are thriving.  The one                                                             
school that is having significant problems is Walden, located in                                                                
the Dimond Mall.  That school's problems are rooted in the fact                                                                 
that it has not met the 200 student limit required for the                                                                      
foundation formula.  The Anchorage School District supports charter                                                             
schools and will continue to do so.                                                                                             
                                                                                                                                
SENATOR ELLIS moved the amendment to delete Section 4 on page 3,                                                                
lines 6 through 11.  The motion failed with Senators Leman, Pearce                                                              
and Kelly voting "nay," and Senators Ellis and Miller voting "yea."                                                             
                                                                                                                                
SENATOR LEMAN moved to calendar all Senate versions of HB 191 for                                                               
calendaring at the Chairman's discretion.  Without objection, the                                                               
motion carried.                                                                                                                 
                                                                                                                                
            HB 272-MUNICIPAL TAX: LOW INCOME HOUSING                                                                            
                                                                                                                                
CHAIRMAN KELLY announced that a proposed Senate Rules Committee                                                                 
substitute had been drafted labeled "Version T."                                                                                
                                                                                                                                
MR. JONATHAN LACK, legislative aide to Representative Halcro,                                                                   
sponsor of the measure, explained Version T as follows.  Version T                                                              
is Representative Halcro's preferred version.  It says that for                                                                 
IRS-qualified low income housing, the municipal assessment shall be                                                             
based on the actual income derived from the property recognizing                                                                
the deed restrictions on that property.  The second change says                                                                 
that the governing body of the local municipality shall determine                                                               
by ordinance whether the properties that qualify for the low income                                                             
housing tax credits after the date of the act shall be exempt from                                                              
the requirements of the assessment procedure in the first section.                                                              
For properties that have been exempted by ordinance, the governing                                                              
body may determine by parcel which method of assessment will be                                                                 
used and may not change the manner of assessment if there is                                                                    
outstanding original debt on that property.                                                                                     
                                                                                                                                
CHAIRMAN KELLY asked if "by parcel," Mr. Lack meant by project.                                                                 
                                                                                                                                
MR. LACK said yes.                                                                                                              
                                                                                                                                
CHAIRMAN KELLY stated that all of the old projects are grand                                                                    
fathered in and any new projects are local option - project by                                                                  
project.                                                                                                                        
                                                                                                                                
MR. LACK agreed.                                                                                                                
                                                                                                                                
SENATOR LEMAN clarified, for the record, that the term "actual                                                                  
income derived" pertains to that market.  It does not mean that                                                                 
someone can, through bad management, actually cause a depression of                                                             
the market value of that property.  It is actual income derived at                                                              
market and that the assessor assumed some type of vacancy factor                                                                
for income property that is applied for that particular unit.                                                                   
                                                                                                                                
MR. LACK agreed that is correct and noted that he spoke with the                                                                
state assessor, Steve VanZant.  The term "actual income derived                                                                 
from the property" means at market so if a property has a 60                                                                    
percent occupancy but the market provides for an 80 percent                                                                     
occupancy, it will be assessed at 80 percent.  That will provide no                                                             
incentive for an owner to underfill a unit to get a break on                                                                    
property taxes.  The amendment that came out of the Senate Finance                                                              
Committee added "at full occupancy."  The intent was to address a                                                               
situation in which someone might intentionally underfill a unit.                                                                
That amendment was problemative because "at full occupancy" ends up                                                             
meaning that if there is a significant downturn in the rental                                                                   
market, for example if Elmendorf Airforce Base closed, ten percent                                                              
would be the market occupancy rate and the unit would still have to                                                             
pay taxes on 100 percent occupancy.  Version T clears that problem                                                              
up.                                                                                                                             
                                                                                                                                
SENATOR ELLIS moved to adopt Version T as the Senate Rules                                                                      
Committee substitute.  There being no objection, the motion                                                                     
carried.                                                                                                                        
                                                                                                                                
SENATOR LEMAN moved to calendar all Senate versions of HB 272 for                                                               
calendaring at the Chairman's discretion.  There being no                                                                       
objection, the motion carried.                                                                                                  
                                                                                                                                
CHAIRMAN KELLY announced an at-ease.                                                                                            
                                                                                                                                
       SB 256-PHYSICIAN NEGOTIATIONS WITH HEALTH INSURER                                                                        
                                                                                                                                
CHAIRMAN KELLY announced that two proposed amendments are before                                                                
the committee; one sponsored by Senator Pete Kelly and the other by                                                             
the Department of Law (DOL).                                                                                                    
                                                                                                                                
SENATOR MILLER moved to adopt the amendment proposed by Senator                                                                 
Pete Kelly.  That amendment reads as follows.                                                                                   
                                                                                                                                
                        A M E N D M E N T                                                                                       
                                                                                                                                
OFFERED IN THE SENATE                       BY SENATOR PETE KELLY                                                               
     TO:  CSSB 256(FIN)                                                                                                         
                                                                                                                                
  Page 4, lines 10 - 11:                                                                                                        
     Delete ", or a particular physician type or specialty"                                                                     
  Page 4, line 15:                                                                                                              
     Delete "and"                                                                                                               
     Insert a new paragraph to read:                                                                                            
               "(7)  the attorney general may limit the percentage                                                              
     of practicing physicians represented by an authorized third                                                                
     party; however, the limitation may not be less than 30 percent                                                             
     of the market of practicing physicians in the geographic                                                                   
     service area or proposed geographic service area; when                                                                     
     determining whether to impose a limitation described under                                                                 
     this paragraph, the attorney general shall consider the                                                                    
     provisions described under (h), (i), and (j) of this section;                                                              
     this paragraph does not apply if the market of practicing                                                                  
     physicians in the geographic service area or proposed                                                                      
     geographic service area consists of 40 or fewer individuals;                                                               
     and"                                                                                                                       
                                                                                                                                
  Renumber the following paragraph accordingly.                                                                                 
                                                                                                                                
SENATOR ELLIS objected to the adoption of the amendment.                                                                        
                                                                                                                                
CHAIRMAN KELLY noted that unless the DOL amendment to Senator                                                                   
Kelly's amendment is offered at this time, the vote will only                                                                   
pertain to Senator Kelly's amendment.                                                                                           
                                                                                                                                
SENATOR ELLIS moved to adopt the DOL amendment which reads as                                                                   
follows.                                                                                                                        
                                                                                                                                
                  A M E N D M E N T - VERSION 2                                                                                 
                                                                                                                                
OFFERED IN THE SENATE                        BY DEPARTMENT OF LAW                                                               
     TO:  CSSB 256(FIN)                                                                                                         
                                                                                                                                
  [Page 4, lines 10-11:                                                                                                         
     Delete ", or a particular physician type or specialty"]                                                                    
                                                                                                                                
  Page 4, line 15:                                                                                                              
     Delete "and"                                                                                                               
     Insert a new paragraph to read:                                                                                            
          "(7)  the attorney general may limit the percentage of                                                                
          practicing physicians or a particular physician type or                                                               
          specialty represented by an authorized third party;                                                                   
          [however, the limitation may not be less than 30 percent                                                              
          of the market of practicing physicians in the geographic                                                              
          service area or proposed geographic service area;] when                                                               
          determining whether to impose a limitation described                                                                  
          under this paragraph, the attorney general shall consider                                                             
          the provisions described under (h), [(i), and (j)] of                                                                 
          this section;  [this paragraph does not apply if the                                                                  
          market of practicing physicians in the geographic service                                                             
          area or proposed geographic service area consists of 40                                                               
          or fewer individuals;] and"                                                                                           
                                                                                                                                
  Renumber the following paragraph accordingly."                                                                                
                                                                                                                                
SENATOR MILLER objected to the adoption of DOL's amendment.                                                                     
                                                                                                                                
SENATOR PEARCE asked for an explanation of the amendment.                                                                       
                                                                                                                                
SENATOR PETE KELLY, sponsor of SB 256, explained that the problem                                                               
with DOL's amendment is that it essentially guts the bill.  It                                                                  
turns policy decisions over to DOL.  The wording of the amendment                                                               
will allow DOL to declare that no one is eligible to participate in                                                             
the negotiations.  DOL's amendment gives DOL way too much authority                                                             
over the negotiations.                                                                                                          
                                                                                                                                
MS. JULIA COSTER, Assistant Attorney General, Department of Law,                                                                
responded that the first part of DOL's amendment actually returns                                                               
the bill to what it was originally.  On page 4, subsection (6), the                                                             
bill originally allowed the number of physicians to be limited to                                                               
30 percent, both in the general and specialty markets.  The second                                                              
part of the DOL amendment allows the physician group to be limited                                                              
not only on the entire market but also with the specialty market                                                                
which was in subsection (6) also.  She thought that Senator Pete                                                                
Kelly was referring to the deletion of the limit in DOL's                                                                       
amendment. She did not agree that it guts the bill; it allows the                                                               
Attorney General to have the percentage of physicians be less than                                                              
30 percent if it meets the criteria under subsection (h), which                                                                 
means the Attorney General would determine whether or not the anti-                                                             
competitive effects of a larger group of people outweigh the                                                                    
benefit.  It would allow the Attorney General to engage in a                                                                    
balancing test.  That same provision is required under the Texas                                                                
legislation.                                                                                                                    
                                                                                                                                
Number 357                                                                                                                      
                                                                                                                                
SENATOR PETE KELLY asked that Mike Ford, the legal drafter of SB
256, address DOL's amendment.  He noted that Mr. Ford provided                                                                  
committee members with his analysis of DOL's objections to the                                                                  
bill.                                                                                                                           
                                                                                                                                
MR. MIKE FORD, Division of Legal Services, Legislative Affairs                                                                  
Agency, stated that after reading DOL's amendment, he cannot see                                                                
how one can maintain that it does not allow the Attorney General to                                                             
go to a zero percentage.  It does not set up a mechanism that would                                                             
limit the Attorney General's authority.  It removes the bottom cap                                                              
that prevents the limitation from being less than 30 percent.  He                                                               
agreed that it leaves in the consideration of subsection (h) but                                                                
that does not preclude the Attorney General from determining that                                                               
a percentage may be one or two percent.                                                                                         
                                                                                                                                
SENATOR MILLER continued to object to DOL's amendment.  The motion                                                              
to adopt DOL's amendment failed with Senators Leman, Miller and                                                                 
Pearce voting "nay," and Senators Ellis and Kelly voting "yea."                                                                 
                                                                                                                                
SENATOR LEMAN moved to adopt Senator Pete Kelly's amendment.  There                                                             
being no objection, the motion carried.                                                                                         
                                                                                                                                
SENATOR LEMAN moved to calendar all Senate versions of SB 276 at                                                                
the Chairman's discretion.  SENATOR ELLIS objected.                                                                             
                                                                                                                                
The motion to calendar all versions of SB 276 carried with Senators                                                             
Miller, Pearce, Leman and Kelly voting "yea," and Senator Ellis                                                                 
voting "nay."                                                                                                                   
                                                                                                                                
There being no further business to come before the committee,                                                                   
CHAIRMAN KELLY adjourned the meeting at 6:18 p.m.                                                                               
                                                                                                                                
                                                                                                                                

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