SENATE BILL NO. 99 "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." Co-Chair Larson provided members with a work draft for HCS CSSB 99 (FIN), 8-GS1020\D, dated 5/8/93 (copy on file). Representative Brown referred to a memorandum by David Dierdorff to Representative Mark Hanley, dated 3/8/93 (Attachment 1). She noted that Mr. Dierdorff had expressed concern that HCS CSSB 99 (FIN) would not withstand a constitutional challenge. Mr. Dierdorff points out that the legislation does not conform to the single subject requirement. Representative Brown suggested that all sections that do not fit within the single subject of the legislation be deleted. She referred to page 2 of Attachment 2. Co-Chair Larson provided members with sectional analysis of HCS CSSB 99 (FIN) (Attachment 2). Co-Chair Larson reviewed Attachment 2 section by section. Co-Chair Larson MOVED that sections 1 - 32, Department of Revenue be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 1 - 32 are identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that sections 33 - 35, Office of Public Advocacy be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 33 - 35 are identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that sections 36 - 38, Department of Education be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 36 - 38, Department of Education are identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that sections 39 - 43, Department of Education be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 39 - 43 are identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that sections 44 - 45, Department of Fish and Game be INCORPORATED into HCS CSSB 99 (FIN). He noted that fees in sections 44 - 45 have been reduced from fees contained in CSHB 65 (FIN). There being NO OBJECTION, 2 it was so ordered. Co-Chair Larson MOVED that section 46, Department of Fish and Game be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 46 is identical to sections contained in CSHB 65 (FIN). Representative Brown pointed out that Mr. Dierdorff argued that section 46 did not fit within the single subject requirement. Co-Chair Larson noted that section 46 is a funding source shift from general funds to the Fish and Game Fund. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 47, Department of Labor be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 47 is identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 48, Department of Labor be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 48 is identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 49, Department of Labor be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 49 is identical to sections contained in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 50, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 50 establishes a fee to process applications for certification of police, probation, parole and correctional officers. CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR explained that HCS CSSB 99 (FIN) sets the fee in statute. She added that CSHB 65 (FIN) addressed the fee through regulation. There being NO OBJECTION, section 50 was INCORPORATED into HCS CSSB 99 (FIN). Co-Chair Larson MOVED that section 51, Department of Labor be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 51 is similar to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 52, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 52 has a constitutional concern. Ms. Frasca stated that section 52 clarifies existing statutory provisions regarding payment of moving expenses 3 for legislators. Representative Hanley noted that section 52 is in the title. Representative Brown suggested that a concurrent resolution could be introduced for a title change. Representative Martin pointed out that constitutionality is based on the substance of the legislation. He asserted that the title is subject to rules placed by the legislature and can be broken. There being NO OBJECTION, section 52 was INCORPORATED into HCS CSSB 99 (FIN). Co-Chair Larson MOVED that section 53, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section incorporated HB 179 section 1 into HCS CSSB 99 (FIN). Representative Brown provided members with AMENDMENT 1, page 16, line 12 to delete "but only" (Attachment 3). Representative Brown MOVED to ADOPT AMENDMENT 1. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 54, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). Co-Chair MacLean MOVED to delete section 55, Department of Public Safety. Representative Brown OBJECTED. JUANITA HENSLEY, CHIEF, DRIVER SERVICES, DIVISION OF MOTOR VEHICLES, explained that section 55 would not replace the existing motor vehicle licence plate. Section 55 would allow two special plates to be designed. The plates would be issued at a special cost of $50 dollars. A roll call vote was taken on the motion to delete section 55. IN FAVOR: Grussendorf, Hoffman, Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Navarre, Brown The MOTION PASSED (8-2). Co-Chair Larson MOVED that section 56, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 56 was included in CSHB 179 (FIN), section 3. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 57, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 57 was included in CSHB 179 (FIN), section 4. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 58, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted 4 that section 58 was included in CSHB 179 (FIN), section 5. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 59, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 59 was included in CSHB 179 (FIN), section 6. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 60, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 60 was included in CSHB 179 (FIN), section 7. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 61, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 61 was included in CSHB 179 (FIN), section 8. Ms. Hensley clarified that section 62 establishes a fee for license plates that would have been designed under section 55. She noted that the deletion of section 55 makes section 62 unnecessary. Co-Chair Larson MOVED that section 62 Department of Public Safety be DELETED from HCS CSSB 99 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 63, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 63 was included in CSHB 179 (FIN), section 9. There being NO OBJECTION, it was so ordered. Representative Grussendorf expressed concern that section 64, Department of Public Safety could result in lawsuits against municipalities. Representative Navarre suggested that section 63 and 64 be combined into one section. Representative Navarre MOVED to AMEND HCS CSSB 99 (FIN) by combining sections 63 and 64 into one section. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 65, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 65 was included in CSHB 179 (FIN), section 11. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 66, Department of Public Safety be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 66 was included in CSHB 179 (FIN), section 12. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 67, Department of Administration be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 67 is identical to language in CSHB 65 5 (FIN). Co-Chair Larson pointed out that Mr. Dierdorff indicated that section 67 did not fit within the single subject requirement. Representative Therriault noted that there are conflicting legal opinions concerning the constitutionality of section 67 as included in HCS CSSB 99 (FIN). There being NO OBJECTION, section 67 was INCORPORATED into HCS CSSB 99 (FIN). Co-Chair Larson MOVED that sections 68 - 69, Department of Administration be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 68 - 69 are identical to sections in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Representative Brown MOVED to DELETE section 70. Representative Brown asserted that section 70 would give up the legislature's power of appropriation. She noted that the section allows the Governor to underfund appropriations made by the legislature. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that sections 71 - 77, Department of Administration be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 71 -77 are identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 78, Department of Natural Resources be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 78 is identical as language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 79, Department of Natural Resources be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 79 is identical as language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson referred to section 80, Department of Commerce. He noted that section 80 amends the Competitive Intrastate Long Distance Telephone Service, Article. Representative Brown maintained that section 80 does not relate to cost savings measures to the state. Representative Brown MOVED to DELETE section 80 from HCS CSSB 99 (FIN). A roll call vote was taken on the motion. IN FAVOR: Martin, Therriault, Brown, Grussendorf, Hanley OPPOSED: Hoffman, Navarre, Parnell, Foster, Larson, MacLean The MOTION FAILED (5-6). Co-Chair Larson MOVED that section 81, Department of Environmental Conservation be INCORPORATED into HCS CSSB 99 6 (FIN). He noted that section 81 is identical as language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 82, Department of Environmental Conservation be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 82 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that sections 83 - 84, Department of Health and Social Services be INCORPORATED into HCS CSSB 99 (FIN). He noted that sections 83 - 84 are identical to language adopted in CSHB 179 (FIN). He pointed out that Mr. Dierdorff argued that sections 83 - 84 did not fit within the single subject requirement. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 85, Department of Revenue be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 85 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 86, Department of Administration, repealing AS 13.26.410 be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 86 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 86, Department of Public Safety, repealing AS 28.10.011 be INCORPORATED into HCS CSSB 99 (FIN). He noted this section is identical to language adopted in CSHB 179 (FIN), section 13. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 86, Department of Public Safety, repealing AS 28.10.181(k) be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 86 is identical to language adopted in CSHB 179 (FIN), section 13. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 86, Department of Public Safety, repealing AS 28.10.421(d) be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 86 is identical to language adopted in CSHB 179 (FIN), section 13. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 86, Department of Public Safety, repealing AS 28.22.011(a)(3) be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 86 is identical to language adopted in CSHB 179 (FIN), section 13. There being NO OBJECTION, it was so ordered. 7 Co-Chair Larson MOVED that section 86, Department of Administration, repealing AS 37.05.210(1) be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 86 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 87, Department of Environmental Conservation be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 87 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 88, Department of Revenue be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 88 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 89, Department of Labor be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 89 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 90, Department of Natural Resources be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 90 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 91 be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 91 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 92, Department of Revenue be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 92 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Ms. Frasca clarified that section 93 was included in legislation which was passed by the Eighteenth Alaska Legislature (SB 129). Co-Chair Larson MOVED to DELETE section 93. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED that section 94, Alaska Court System and Department of Administration be INCORPORATED into HCS CSSB 99 (FIN). He noted that section 94 is identical to language adopted in CSHB 65 (FIN). There being NO OBJECTION, it was so ordered. Co-Chair MacLean noted that sections 95 and 96 pertain to section 93 and are not needed. Co-Chair Larson MOVED to DELETE sections 95 and 96 from HCS CSSB 99 (FIN). There 8 being NO OBJECTION, it was so ordered. Representative Brown asked if sections 83 and 84 would result in a cost savings to the state. Ms. Frasca clarified that sections 83 and 84 will allow the state to capture federal funds. The additional federal funds would replace state general funds. Representative Brown argued that section 85 would also result in a cost savings to the state. Representative Therriault explained section 85. He agreed that section 85 would result in cost savings. Ms. Hensley explained that section 64 should have a 1/1/94 effective date. She noted that the section affects municipal taxes. Representative Hanley noted that the effective dates for sections 95 and 96 should be deleted. Co-Chair Larson MOVED to ADOPT a conceptional amendment to conform the effective dates to committee approved action. There being NO OBJECTION, it was so ordered. (Tape Change, HFC 93-136, Side 2) Representative Brown noted that not all of the sections indicated to have a constitutionality problem have been removed. Ms. Frasca argued that the remaining sections can be argued to have a cost savings to the state. She noted that section 46 reduces general fund expenditures by transferring the expenditures to the Fish and Game Fund. She asserted that cost savings will result from sections 59, 63, 67 and 70 - 77. Representative Brown MOVED to DELETE section 52. Co-Chair MacLean OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Martin, Brown, Grussendorf OPPOSED: Foster, Hanley, Hoffman, Parnell, Therriault, MacLean, Larson Representative Navarre was not present for the vote. The MOTION FAILED (3-7). Co-Chair MacLean MOVED to report HCS CSSB 99 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CSSB 99 (FIN) was reported out of Committee with "no recommendation" and with a fiscal impact note by the 9 Department of Environmental Conservation; a fiscal impact note by the Department of Fish and Game; two fiscal impact notes by the Department of Public Safety; a fiscal impact note by the Department of Administration, dated 4/26/93; a fiscal impact note by the Department of Natural Resources, dated 4/26/93; two fiscal impact notes by the Alaska Commission of Postsecondary Education, dated 4/26/93; three fiscal impact notes by the Department of Labor, dated 4/26/93; a zero fiscal note by the Department of Labor, dated 4/26/93; and with three zero fiscal notes by the Department of Administration, dated 4/26/93.