CSSB 365(STA): An Act relating to the improvement of state finances and fiscal accountability by increasing fees, by collecting additional revenue, by reducing certain program expenditures by changing services or eligibility requirements for programs, by changing certain statutory limitation periods, by providing for use of certain electronic records, by making changes to state agency functions or procedures including certain reporting and planning procedures, and by authorizing extensions for state leases for real property if certain savings can be achieved; and providing for an effective date. Amendments 1 and 6 were ADOPTED. Amendments 2 and 3 were HELD. Amendment 4 was ADOPTED and then the committee rescinded its action. Juanita Hensley spoke to amendment 4. Amendment 7 FAILED. CSSB 365(FIN) was REPORTED out of committee with a "do pass," zero fiscal notes for the Department of Public Safety - Fire Suppression, and Driver Services; Depart-ment of Administration - Leasing; Office of the Governor; Department of Transportation & Public Facilities; Department of Environmental Conservation - Water & Waste; Department of Labor - Workers' Compensation; Department of Corrections - Inmate Health Care; Department of Law; and two fiscal notes for the Department of Public Safety - Troopers, Admin. for $253.1 and Troopers, Detachments for $1,687.5. CS FOR SENATE BILL NO. 365(STA): An Act relating to the improvement of state finances and fiscal accountability by increasing fees, by collecting additional revenue, by reducing certain program expenditures by changing services or eligibility requirements for programs, by changing certain statutory limitation periods, by providing for use of certain electronic records, by making changes to state agency functions or procedures including certain reporting and planning procedures, and by authorizing extensions for state leases for real property if certain savings can be achieved; and providing for an effective date. Co-chair Pearce announced that CSSB 365(FIN) version "K" had been adopted on April 14 and was before the committee. SENATOR RIEGER MOVED amendment 1. No objection being heard, amendment 1 was ADOPTED. Co-chair Pearce announced, with concurrence from Senator Sharp, that amendment 2 would not be offered. Co-chair Pearce announced amendment 3 by Senator Jacko would not fit under the present title. Senator Jacko was not present at the time this amendment was discussed. Amendment 3 was HELD. Co-chair Pearce announced that amendment 4 was proposed by the Department of Public Safety relating to farm vehicles. Senator Rieger MOVED amendment 4. No objection being heard, amendment 4 was ADOPTED. SENATOR KERTTULA asked for clarification of amendment 4. JUANITA HENSLEY, Chief, Driver Services, Division of Motor Vehicles, Department of Public Safety, said amendment 4 brought state statutes in compliance with the federal Motor Vehicle Safety Act. One section of the statue said farm vehicles can move within a 300-mile radius of the farm and another set said it can move within a 150-mile radius. Federal law mandated a 150-mile radius so that to be in compliance, there cannot be any more allowances over the 150-mile radius. Senator Kerttula said the 150-mile radius did not fit Delta to Anchorage or Delta to Homer but the 300 mile radius did. He opposed changing the statutes. Senator Kerttula MOVED to rescind the adoption of amendment 4. Co-chair Frank raised questions about federal compliance. Ms. Hensley said one of the problems was the statute related to commercial-sized vehicles and there were safety concerns. She went on to say that if the state did not come into federal compliance, which was tied to ISTEA, it jeopardized federal highway funds. This non-compliance needed to be cleared up so Department of Transportation & Public Facilities did not lose 10 percent of its highway funds. She said the federal government had put the state on notice that it was in non-compliance in this area. She did not know when the funds would be withheld. In answer to Co-chair Frank, Ms. Hensley said the federal government had looked at all statutes and discovered the discrepancy in two different statutes. Co-chair Pearce called for a show of hands on the motion to rescind the adoption of amendment 4. No objection being heard, the committee RESCINDED its action on adopting amendment 4. Senator Rieger proposed amendment 5. Co-chair Pearce OBJECTED for discussion purposes. She invited Randy Welker, Legislative Auditor, Legislative Audit Division, to join the committee at the table. Senator Rieger said he was prepared to withdraw the amendment since progress had been made with the Department of Transportation & Public Facilities regarding construction lists. Co-chair Pearce, however, asked Mr. Welker if he wanted to speak to Section 25. RANDY WELKER said he had been asked to look at two sections. One that dealt with extending leases to achieve savings, and the other allowing a small procurement code to apply to leases under $5,000 month. He felt both provisions were reasonable. Co-chair Pearce confirmed that amendment 5 was withdrawn. Senator Rieger agreed. Co-chair Pearce explained the provisions of amendment 6 which would require the Department of Transportation & Public Facilities to provide the legislature a construction forecast and proposed projects list rather than a single appropriation. Senator Rieger MOVED amendment 6. No objection being heard, amendment 6 was ADOPTED. CSSB 365(FIN) as amended was HELD until later in the meeting and the following action was taken. Co-chair Pearce announced that amendment 7 would be before the committee. Senator Kelly MOVED amendment 7. Co-chair Pearce OBJECTED for discussion purposes. Senator Kelly said amendment 7 insured that Hillside residents in Anchorage would pay something for police protection. Senator Rieger said he was opposed to the language in amendment 7. He asked for a few minutes to consider the amendment since it was the first time he had seen it. Recess 10:42am Reconvene 10:45am Senator Rieger OBJECTED to amendment 7. Co-chair Frank said he did not understand the whole concept of the problem but he had supported amendment 1 with assurance that those troopers would be paid for by the Hillside residents. Senator Kelly maintained that it was not clear that the service areas would vote to pay for troopers. This amendment would force them to pay for police protection even if they did not vote to pay for troopers. End SFC-93 #77, Side 1 Begin SFC-93 #77, Side 2 Co-chair Pearce called for a show of hands and amendment 7 FAILED to be ADOPTED. Co-chair Frank MOVED for passage of SB 365 as amended from committee. Senators Kelly and Kerttula OBJECTED. Senator Kelly spoke to his objections regarding amendment 1. Co- chair Pearce called for a show of hands and the motion carried on a vote of 5 to 2 (Co-chairs Pearce and Frank, Senators Sharp, Jacko, Rieger, were in favor, Senators Kelly and Kerttula were opposed). CSSB 365(FIN) was REPORTED out of committee with a "do pass," zero fiscal notes for the Department of Public Safety - Fire Suppression, and Driver Services; Department of Administration - Leasing; Office of the Governor; Department of Transportation & Public Facilities; Department of Environmental Conservation - Water & Waste; Department of Labor - Workers' Compensation; Department of Corrections - Inmate Health Care; Department of Law; and two fiscal notes for the Department of Public Safety - Troopers, Admin. for $253.1 and Troopers, Detachments for $1,687.5. Co-chairs Pearce and Frank, Senators Rieger and Jacko signed "do pass," Senators Kelly and Kerttula signed "no not pass," and Senator Sharp signed "no recommendation."