HOUSE FINANCE COMMITTEE May 7, 1998 8:15 P.M. TAPE HFC 98 - 162, Side 1. TAPE HFC 98 - 162, Side 2. CALL TO ORDER Representative Mulder called the House Finance Committee meeting to order at 8:15 P.M. PRESENT Co-Chair Hanley Representative Kelly Co-Chair Therriault Representative Kohring Representative J. Davies Representative Martin Representative G. Davis Representative Moses Representative Grussendorf Representative Mulder Representative Foster was not present for the meeting. ALSO PRESENT Pat Davidson, Acting Legislative Auditor, Legislative Audit Division; Mel Krogseng, Staff, Senator Robin Taylor; Portia Parker, Staff, Senator Mike Miller; Beth Hagevig, Staff, Senator Gary Wilken; Marilyn Wilson, Staff, Senator Bert Sharp; Mike Tibbles, Staff, Representative Gene Therriault. SUMMARY SB 11 An Act relating to state aid for school construction debt; and providing for an effective date. SB 11 was HELD in Committee for further consideration. SB 151 An Act relating to public employment labor relations; relating to the protection of the rights of public employees under the Public Employment Relations Act; establishing ethical standards for union representatives of public employees; and establishing disclosure requirements for public employee labor organizations. SB 151 was HELD in Committee for further consideration. SB 160 An Act relating to registration, inspection, and testing relating to radiological equipment in dentists' offices. HCS CS SB 160 (FIN) was reported out of Committee with "no recommendations" and with fiscal notes by the Department of Commerce and Economic Development dated 4/3/98 and the Department of Health and Social Services dated 4/14/98. SB 312 An Act relating to animals, to food, to pest control, and to the Alaska Food, Drug and Cosmetic Act; and providing for an effective date. SB 312 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Natural Resources. SB 313 An Act relating to sponsor certification of initiative petitions; relating to sponsor identification during petition circulation; relating to the violability of an initiated law; placing limitations on the compensation that may be paid to sponsors of initiative petitions; prohibiting payments to persons who sign or refrain from signing initiative petitions; and repealing procedures for filing a supplementary initiative petition. SB 313 was HELD in Committee for further consideration. SB 350 An Act relating to tourism; relating to grants for tourism marketing; eliminating the division of tourism and the Alaska Tourism Marketing Council; and providing for an effective date. CS SB 350 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Commerce and Economic Development dated 5/2/98. SB 356 An Act relating to treatment under legislative standards of conduct of campaign contributions to legislators during a legislative session; and providing for an effective date. SB 356 am was reported out of Committee with a "no recommendation" and with a zero fiscal note by the Legislative Affairs Agency dated 4/27/98. SB 358 An Act relating to disclosure of the use of state funds related to personnel records. HCS CS SB 358 (FIN) was reported out of Committee with a fiscal note by the Office of the Governor dated 4/30/98. SENATE BILL NO. 358 "An Act relating to disclosure of the use of state funds related to personnel records." Representative J. Davies MOVED to adopt Amendment #2, as recommended by Senator Pearce, and which would return the bill to the version before changes had been made in the Senate Finance Committee. [Copy on File]. PAT DAVIDSON, ACTING LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT DIVISION, LEGISLATIVE AFFAIRS AGENCY, explained that the amendment would indicate that the legislation address specific issues during the course of an audit. Representative Mulder noted that adopting the amendment would zero the fiscal note out. There being NO OBJECTION, the amendment was adopted. Co-Chair Therriault MOVED to report HCS CS SB 358 (FIN) out of Committee with individual recommendations and with the new zero fiscal note. There being NO OBJECTION, it was so ordered. HCS CS SB 358 (FIN) was reported out of Committee with "individual recommendations" and with a zero fiscal note by the Office of the Governor dated 4/30/98. SENATE BILL NO. 160 "An Act relating to registration, inspection, and testing relating to radiological equipment in dentists' offices." MEL KROGSENG, STAFF, SENATOR ROBIN TAYLOR, spoke to Amendments #1 & #2. [Copies on File]. She explained that the amendments addressed qualification concerns. Amendment technicians and would insert new language for State of Alaska class specifications. Amendment #2 speaks to possible problems in the transitional provision. Representative Kelly MOVED to adopt Amendment #1. Representative J. Davies questioned why language "on the effective day on this Act", had been included. Ms. Krogseng explained that from time to time, job titles are changed. There being NO OBJECTION, Amendment #1 was adopted. Representative Kelly MOVED to adopt Amendment #2, the revised effective date. There being NO OBJECTION, Amendment #2 was adopted. Representative Kelly MOVED to report HCS CS SB 160 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative J. Davies OBJECTED. Representative J. Davies advised that he would not support deleting the State's ability to monitor x-ray sources. He noted that he preferred maintaining the status quo. Representative Davies recommended redirecting the program from within the context of the Department of Health and Social Services. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Kelly, Kohring, Martin, Moses, Mulder, G. Davis, Therriault OPPOSED: J. Davies Representatives Hanley and Foster were not present for the vote. The MOTION PASSED (8-1). HCS CS SB 160 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of Commerce and Economic Development dated 4/3/98 and a zero note by the Department of Health and Social Services dated 4/14/98. SENATE BILL NO. 350 "An Act relating to tourism; relating to grants for tourism marketing; eliminating the division of tourism and the Alaska Tourism Marketing Council; and providing for an effective date." Co-Chair Therriault explained that Legislative drafters had informed the Leadership that an amendment passed at a previous Committee hearing would not achieve the intent of the Committee. Representative Mulder MOVED to RESCIND action on moving HCS CS SB 350 (FIN) from Committee. There being NO OBJECTION, the action was rescinded. Representative J. Davies MOVED to RESCIND action on adoption of Amendment #1. There being NO OBJECTION, action on the amendment was rescinded. Representative J. Davies WITHDREW Amendment #1. There being NO OBJECTION, Amendment Representative Mulder MOVED to report the revised HCS CS SB 350 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. Representative Martin OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Kelly, Moses, Mulder, J. Davies, G. Davis, Therriault OPPOSED: Kohring, Martin Representatives Hanley and Foster were not present for the vote. The MOTION PASSED (7-2). HCS CS SB 350 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Commerce and Economic Development dated 5/2/98. SENATE BILL NO. 356 "An Act relating to treatment under legislative standards of conduct of campaign contributions to legislators during a legislative session; and providing for an effective date." PORTIA PARKER, STAFF, SENATOR MIKE MILLER, explained that SB 356 would conform Alaska's legislative ethics statutes to recently enacted legislation that amended Alaska statutes regulating campaign fundraising activities. She continued, SB 356 would place additional fundraising restrictions on fundraising activities in the capital city during legislative sessions. All candidates for the Office of Governor or Lieutenant Governor may solicit and accept campaign funds during regular and special Legislative sessions, providing it does not occur in the capital city. Ms. Parker remarked that SB 356 contains an exemption from the fundraising restrictions during the 90 days immediately preceding an election in which the person is a candidate for the State legislature, except that in SB 356, the fundraising activity solicitation or acceptant may not occur in the capital city. Representative Mulder MOVED to report SB 356 am out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 356 am was reported out of Committee with "no recommendations" and with a zero fiscal note by the Legislative Affairs Agency dated 4/27/98. SENATE BILL NO. 312 "An Act relating to animals, to food, to pest control, and to the Alaska Food, Drug and Cosmetic Act; and providing for an effective date." BETH HAGEVIG, STAFF, SENATOR GARY WILKEN, explained that SB 312 was a good government bill designed to help those in the business of food production and service to better access the laws that apply to them. The legislation would clean up various statutes relating to food and animals under the purview of the Department of Environmental Conservation by either deleting them or consolidating them into AS 17.20, the Food, Drug and Cosmetic Act. The legislation makes no significant changes to DEC's current authority relative to food and animals. Ms. Hagevig continued, current statutory requirements for food production and service are scattered throughout Title 3, which covers agriculture and animals and Title 17, which covers food and drugs. Some of the provisions between these two titles conflict with one another, while others are obsolete. In present form, statutes relating to food production and service are often confusing and difficult to find for those who need them, such as the Alaska food servers and producers. By consolidating the statues under one act, and eliminating conflicting or obsolete statutes, the Legislature provides greater access to the Laws of Alaska for those most directly effected. The housekeeping measure is also a customer service issue that makes the system user-friendly to all Alaskans, saves time and provides for more efficient administration of food laws in Alaska. Representative J. Davies MOVED to report SB 312 out of Committee with individual recommendations and with the accompanying zero fiscal note. There being NO OBJECTION, it was so ordered. SB 312 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Natural Resources. SENATE BILL NO. 313 "An Act relating to sponsor certification of initiative petitions; relating to sponsor identification during petition circulation; relating to the violability of an initiated law; placing limitations on the compensation that may be paid to sponsors of initiative petitions; prohibiting payments to persons who sign or refrain from signing initiative petitions; and repealing procedures for filing a supplementary initiative petition." MARILYN WILSON, STAFF, SENATOR BERT SHARP, explained that SB 313 was an effort to bring the initiative process back to a more grassroots effort. SB 313 would require visual identification of name and a voter registration identification number of the petition circulators. The legislation would also prohibit payment per signature by the sponsor. Ms. Wilson continued, the legislation would prohibit paying a person to sign a petition. In addition, existing law grants a 30-day extension to a sponsor if they are unsuccessful in obtaining the required number of verified signatures within the allocated time frame. SB 313 would eliminate the 30-day extension. If the required number of signatures is not successfully obtained, the initiative simply does not appear on the ballot. She urged members to consider passage of the legislation. Representative Mulder MOVED to adopt Amendment #1. [Copy on File]. Representative Mulder explained that the amendment would create a new category of petition name collectors, from a contract employee to a regular employee, which would then require workman's compensation and other benefits. He acknowledged that he understood the intention of the sponsor was that these people are volunteers or receive a nominal fee for signature collection. The amendment would address the concern which keeps people on as contract employees. Representative Martin commented that the public should be informed if the ballot collector was being paid per signature. Representative Therriault responded that the bill does not require disclosure before promoting signatures. Representative J. Davies pointed out that in the Supreme Court case Myer versus Grant, a similar State ban was invalidated on payment to initiative gathers, referencing 1st Amendment grounds. He added that the Department of Law has stated that any strict limit on payment raises similar constitutional ground issues. Co-Chair Therriault questioned if that opinion had been drafted to the prohibition. Representative J. Davies replied that the case had been a ban on payment. Co-Chair Therriault inquired if previous Committee hearings had discussed the need for a ban. Ms. Wilson replied that no discussion pertaining to the ban had been heard in previous Committees of referral. Representative Grussendorf pointed out that paying people to collect signatures is counter to democracy. He noted his surprise that the issue had not been brought forward in the House Judiciary Committee. Co-Chair Therriault disagreed, stating that it should be allowed. Representative J. Davies remarked that a person paid by the hour would be less obtrusive than the person being paid by the signature. He thought that existing language would less likely be challenged. (Tape Change HFC 98- 162, Side 2). In response to Representative Mulder, Ms. Wilson noted that the bill would eliminate the 30-day extension. Representative Grussendorf asked if that would be for all petitions or only the ones, which there was a monetary wage assigned. Ms. Wilson stated that it would be for all. SB 313 was HELD in Committee for further consideration. SENATE BILL NO. 11 "An Act relating to state aid for school construction debt; and providing for an effective date." Co-Chair Hanley advised that the current version of SB 11 was similar to SB 7 from two years prior, and that it would address bond debt reimbursement for specific school districts. He noted that the total amount was $250 million dollars of State general funds, with a $357 million dollar total project cost, which would amount to a 70/30 match. School district costs would be retroactive to FY95. He added that the legislation proposes to return to the school districts, bonds which were not reimbursed. Co-Chair Hanley noted that the bill would be HELD in Committee for further consideration. SENATE BILL NO. 151 "An Act relating to public employment labor relations; relating to the protection of the rights of public employees under the Public Employment Relations Act; establishing ethical standards for union representatives of public employees; and establishing disclosure requirements for public employee labor organizations." Co-Chair Therriault distributed the committee substitute for SB 151, 0-LS0675\X, Cramer, 5/4/98. [Copy on File]. MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, highlighted the contents of the work draft. He noted that Section #2 would eliminate compulsory membership with a provision that service fees may be included for collective bargaining reimbursement in the adjustment of grievances. Mr. Tibbles continued, Section #3 would establish the ethical standards. Section #4 clarifies that if there is a modification of an agreement, it would be subject to approval and modification of the Legislature. Section #5 requires that if monetary terms have been disapproved, the parties "shall" resume negotiations. Co-Chair Hanley added that Section #6 would establish if it were a monetary term and if those were negotiated items that had not come before the Legislature for approval. Section #6 would establish that with a $10 thousand dollar expenditure during the life of the bargaining agreement, the Legislature shall be notified. Mr. Tibbles pointed out that Section #7 was the heart of the short title. It would establish the voluntary written authorization requirement for the collection of membership dues. An authorization under that section may not be irrevocable for a period longer than one year. Section #8 creates the provisions regarding those that are not members or pay dues. Section #9 would place a limit on the use of all money collected and determine how those funds should be spent. Co-Chair Therriault added that the proposed legislation applied to public employment labor groups. SB 151 was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 9:30 P.M. H.F.C. 10 5/07/98 eve