HOUSE FINANCE COMMITTEE May 4, 1999 1:55 P.M. TAPE HFC 99 - 117, Side 1. TAPE HFC 99 - 117, Side 2. CALL TO ORDER Co-Chair Mulder called the House Finance Committee meeting to order at 1:55 P.M. PRESENT Co-Chair Therriault Representative Foster Co-Chair Mulder Representative Grussendorf Representative G. Davis Representative Kohring Representative Austerman Representative Moses Representative J. Davies Representative Williams Representative Con Bunde was not present for the meeting. ALSO PRESENT Annalee McConnell, Director, Office of Management and Budget, Office of the Governor; Jack Kreinheder, Senior Policy Analyst, Office of Management and Budget; Mike Tibbles, Staff, Co-Chair Therriault; John Cyr, President, NEA-Alaska, Juneau; Teresa Williams, (Testified via Teleconference), Assistant Attorney General, Fair Business Practices Section, Department of Law, Anchorage; Sanna Green, (Testified via Teleconference), Executive Director, Professional Teaching Practices Commission, (PTPC), Department of Education, Anchorage. SUMMARY HB 40 An Act combining parts of the Department of Commerce and Economic Development and parts of the Department of Community and Regional Affairs by transferring some of their duties to a new Department of Commerce and Rural Development; transferring some of the duties of the Department of Commerce and Economic Development and the Department of Community and Regional Affairs to other existing agencies; eliminating the Department of Commerce and Economic Development and the Department of Community and Regional Affairs; relating to the Department of Commerce and Rural Development and the commissioner of commerce and rural development; adjusting the membership of certain multi- member bodies to reflect the transfer of duties among departments and the elimination of departments; creating the office of international trade and relating to its duties; and providing for an effective date. CS HB 40 (FIN) was reported out of Committee with "no recommendation" and with a new fiscal note by Office of Management and Budget. HB 85 An Act relating to licensure and professional discipline of members of the teaching profession and providing for related penalties; relating to grounds for dismissal of a teacher; relating to the Professional Teaching Practices Commission; relating to limited immunity for procedures under the Educator Ethics Act; making conforming amendments; and providing for an effective date. HB 85 was HELD in Committee for further discussion. HB 95 An Act making and amending appropriations under art. IX, sec. 17c, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. CS HB 95 (FIN) was reported out of Committee with a "do pass" recommendation. HOUSE BILL NO. 95 An Act making and amending appropriations under art. IX, sec. 17c, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. Co-Chair Mulder advised Committee members that by taking action on the bill would remove the cap on the Capital Budget Reserve (CBR) fund. ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET, OFFICE OF THE GOVERNOR, stated that the increase to the Capital Budget Reserve (CBR) would have nothing to do with the proposed expenditure level. She pointed out that oil prices are rapidly shifting and these expenditures would be left open-ended. Co-Chair Mulder noted that passage of the bill would provide that the Administration would not have to distribute "pink slips". Ms. McConnell agreed, noting that it would assure proper access authority to the CBR be available. She added that funds borrowed from the CBR and not used would be returned at the end of the fiscal year. Representative Williams MOVED to adopt work draft, 1- GH1051\P, Cramer, 5/3/99, as the version before the Committee. There being NO OBJECTION, it was adopted. Co-Chair Mulder MOVED a conceptual amendment which would appropriate $500 thousand dollars to the Department of Law for negotiating costs associated with the BP/Amoco-ARCO merger. Additionally, there would be a $100 thousand dollar appropriation to the Legislative Council for costs associated with that merger. Representative J. Davies inquired if there consideration had been made to add an appropriation for Y2K efforts. Co-Chair Mulder noted that issue is being addressed on the Senate Floor. There being NO OBJECTION to the conceptual amendment, it was adopted. Representative Foster MOVED to report CS HB 95 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. CS HB 95 (FIN) was reported out of Committee with a "do pass" recommendation. HOUSE BILL NO. 85 An Act relating to licensure and professional discipline of members of the teaching profession and providing for related penalties; relating to grounds for dismissal of a teacher; relating to the Professional Teaching Practices Commission; relating to limited immunity for procedures under the Educator Ethics Act; making conforming amendments; and providing for an effective date. SANNA GREEN, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRECTOR, PROFESSIONAL TEACHING PRACTICES COMMISSION (PTPC), DEPARTMENT OF EDUCATION, ANCHORAGE, stated that the bill would enhance the State's ability to protect students and the integrity of educators by strengthening, streamlining, and consolidating licensure and discipline provisions for members of the teaching profession. The bill incorporates direction from the Board of Education to change a teacher "certificate" to a "license". It would streamline current law by consolidating regulatory grounds for discipline into one statutory provision; allowing reciprocal action of an educator who had been disciplined in another jurisdiction, and clarifying the procedure for revoking the license of a person convicted of certain sex crimes. In addition, the bill would add misrepresentation of material facts on an employment application as grounds for discipline. TERESA WILLIAMS, (TESTIFIED VIA TELECONFERENCE), ASSISTANT ATTORNEY GENERAL, FAIR BUSINESS PRACTICES SECTION, DEPARTMENT OF LAW, provided a sectional analysis of the proposed legislation. She directed her remarks to the handout included in member's packets dealing with changes and deletions to the bill. [Copy on File]. *Section 1 - Technical conforming change. *Section 2 - New section creating statutory authority for mandatory criminal records check. *Section 3 - New section addressing the compilation base for denial. Representative J. Davies asked the statutory sights referenced in #1 & #2. Ms. Williams replied that #1 - AS 14.20.020 and that #2 is currently in existing law which would be moved to another place. Representative J. Davies asked what the Educator Ethics Commission was. Ms. Williams explained that commission previously was referred to as the Professional Teaching Practices Commission. Representative Foster questioned who paid for the "checks and balances" provided by the commission. Ms. Williams explained that teachers pay for there own criminal record check. *Section 4 - New section which makes Administrative Procedures Act (APA) applicable to review of denial. *Section 5 - Addresses clean up language. *Section 6 - Speaks to the grounds for discipline. *Section 7 - Provides for the creation of the Commission. *Section 8 - Grants an executive director for the commission. *Section 9 - Outlines the duties of the commission. *Section 10 - Speaks to the powers of the commission. *Section 11 - Addresses the applicability of the Administrative Procedure Act. *Section 12 - Allows increased or changed discipline as an option, based on hearing officers factual findings. *Section 13 - A new section on confidentiality of investigative file. *Section 14 - Technical conforming changes. *Section 15 - A new section containing penalties for teaching w/o required license and unauthorized employment in the teaching profession. *Sections 16 - 25 These sections provide conforming language changes. Representative Foster asked if there was a penalty for those person not licensed, claiming that they were and then teaching. Ms. Williams replied that person could be charged with forgery, however, there is no specific provision addressing that concern. Co-Chair Therriault questioned if there would be action taken against that individual by the school district for misrepresenting ownership of a license. Ms. Williams suggested that the school district could create a civil action suit, however, they usually would not pursue that course of action because the guilty person probably would not have any income. Additionally, they would need to prove "harm". Representative J. Davies commented that the consequence would be that the person would lose their job. JOHN CYR, PRESIDENT, NATIOANL EDUCATION ASSOCIATION (NEA- ALASKA), JUNEAU, asked Ms. Williams how many revocations there had been this year. Ms. Williams commented that there had been five or six this year. She noted that many revocations are to those people who leave their post without giving notice; also, there are the ones requested to leave for matters of sexual misconduct. Mr. Cyr stated that contrary to the opinion of the employees of PTPC, NEA-Alaska does not believe that the legislation is a clear rewrite of existing statute. NEA-Alaska does not endorse the legislation in its present form. He spoke to sections which are problematic. The first concern is on Page 7, Section 14.20.375 - Disciplinary actions. NEA- Alaska believes that if there is going to be a commission, the burden of license revocation should fall upon the commission and not the commissioner. The other concern is listed on Page 9, Section (f). Again, the playing field should be level and the commissioner should not need to be in concurrence with the teacher. He pointed out that there is conflict throughout the bill and that NEA-Alaska does not believe that it is fair. HB 85 was HELD in Committee for further consideration. HOUSE BILL NO. 40 An Act combining parts of the Department of Commerce and Economic Development and parts of the Department of Community and Regional Affairs by transferring some of their duties to a new Department of Commerce and Rural Development; transferring some of the duties of the Department of Commerce and Economic Development and the Department of Community and Regional Affairs to other existing agencies; eliminating the Department of Commerce and Economic Development and the Department of Community and Regional Affairs; relating to the Department of Commerce and Rural Development and the commissioner of commerce and rural development; adjusting the membership of certain multi- member bodies to reflect the transfer of duties among departments and the elimination of departments; creating the office of international trade and relating to its duties; and providing for an effective date. MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, spoke to Amendment #11. [Copy on File]. He explained that the amendment would change a section of the bill which indicates that the commissioner of the board may designate and additional person. (Tape Change HFC 99 - 117, Side 2). Mr. Tibbles continued that if the commissioner is not able to sit in on a meeting, he must designate someone else from the Department to be present, and that person can not be a public member. Co-Chair Therriault MOVED to adopt Amendment #11. There being NO OBJECTION, it was so ordered. Co-Chair Therriault MOVED to adopt Amendment #12. [Copy on File]. Mr. Tibbles explained that the amendment would add a new subsection to the duties of the new department. The amendment would insure that there is clear statutory authority for the CDQ program as authorized by the federal government. There being NO OBJECTION, it was adopted. JACK KREINHEDER, SENIOR POLICY ANALYST, OFFICE OF MANAGEMENT AND BUDGET, advised that the Administration does support the adopted amendments. Ms. McConnell spoke to the new fiscal note by the Office of Management and Budget. She pointed out that the primary savings would be to the out years. The note shows the known personnel cost reductions during the initial implementation year. Further reductions are anticipated after all organizational changes are completed, which will be reflected in the FY2001 operating budget. The fiscal note indicates initial capital implementation cost of $200 thousand dollars, a minimal amount for some employee movement to bring units together and necessary changes to computer/telephone configurations. She added that additional funds will be needed in the second year. Also included is a $200 thousand general fund replacement of federal receipts in Rural Energy component. Ms. McConnell stated that Sec. 78(e) specifies that appropriations are to be transferred with the programs being relocated; all program funding is currently contained within the operating budget. The cost savings indicated above are based on the following: * There will be one less Commissioner and Executive Secretary; * The vacant Administrative Services Director position (DCRA) will be deleted; and * Other administrative support costs will be reduced by downgrading or eliminating other positions. Co-Chair Therriault voiced concern that the fiscal costs had increased to $200 thousand dollars. He requested a further breakdown from the Administration regarding the increased costs. He noted that there would be plenty of time to make adjustments to the fiscal note; he did not want to hold the bill in Committee. Representative Kohring MOVED to report CS HB 40 (FIN) out of Committee with individual recommendations and with the accompanying new fiscal note. Representative J. Davies OBJECTED for the purpose of making a comment. Representative J. Davies advised that many of the changes incorporated into the bill make sense, however, if the primary savings is the elimination of a Commissioner, that should not be regarded as "efficiency in government", but rather a reduction in government services. He stated that all the commissioners perform great services to the people of the State and that some services will be lost with this consolidation effort. There will be less emphasis on some of the elements that the Department of Commerce and Economic Development and the Department of Community and Regional Affairs had before. He reiterated that this is a "reduction in government but not greater efficiency within the system". Representative J. Davies WITHDREW his OBJECTION to the motion to move the bill. There being NO further OBJECTIONS, it was so ordered. CS HB 40 (FIN) was reported out of Committee with "no recommendation" and with a fiscal note by the Office of Management and Budget, ADJOURNMENT The meeting adjourned at 2:50 P.M. - H.F.C. 8 5/04/99 pm