MINUTES SENATE FINANCE COMMITTEE 9 February 1998 9:15 a.m. TAPES SFC-98, #24, Sides 1 and 2 CALL TO ORDER Senator Bert Sharp, Co-chair, convened the meeting at approximately 9:15 a.m. PRESENT In addition to Co-chairman Sharp, Senators Pearce, Phillips, Donley, Torgerson and Adams were present when the meeting was convened. Senator Parnell arrived shortly thereafter. Also Attending: Senator Robin Taylor; Representative Pete Kott; Representative Eldon Mulder; Danny DeWitt, chief of staff to Representative Mulder; Geron Bruce, Legislative Liaison, Office of the Commissioner, Department of Fish and Game; Irvin Brock, Deputy Director, Division of Sport Fish, Department of Fish and Game; Deborah Vogt, Deputy Commissioner, Department of Revenue; Nanci A. Jones, Director, Permanent Fund Dividend Division, Department of Revenue; John Cyr, President, NEA-Alaska; and aides to committee members and other legislative members. Via Teleconference: listen only. SUMMARY INFORMATION SENATE BILL NO. 16 "An Act restricting the use of certain funds deposited in the fish and game fund; and relating to the powers and duties of the commissioner of fish and game." Senator Robin Taylor, sponsor of the bill was invited to join the committee. He outlined the changes made in the new draft CS. Senator Torgerson moved CSSB 16 work draft. Senator Adams objected asking how the fiscal notes would be affected. Co-chair Sharp indicated that new fiscal notes would be requested today. Senator Adams withdrew his objection and CSSB 16 work draft was adopted. Senator Donley and Senator Taylor discussed language changes for stricter utilization of funds for specific purposes rather that the department being able to use funds in general. Mr. Geron Bruce and Mr. Irvin Brock were invited to join the committee. Senator Adams stated he hoped the bill would not put undue burden on State or Federal funds. Mr. Steve White, Assistant Attorney General was invited to join the committee. He explained section 4. There was further discussion with Senator Parnell regarding the fiscal note from the Department of Law. Mr. White explained that the higher fiscal notes would be due to possible lawsuits or injunctions. Senator Taylor also explained that Federal law defines how monies are allocated. Senator Donley also asked Mr. White to look into his request to the Attorney General's Office and Mr. White indicated he would check it out. Co-chair Sharp held CSSB 16 in committee. HOUSE BILL NO. 2 "An Act allowing, for the purposes of permanent fund dividend eligibility, an individual to accompany, as the spouse or minor or disabled dependent, another eligible resident who is absent for any of the following reasons: vocational, professional, or other specific education for which a comparable program is not reasonably available in the state; secondary or postsecondary education; military service; medical treatment; service in the Congress or in the peace corps; to care for the individual's terminally ill parent, spouse, sibling, child, or stepchild; for up to 220 days to settle the estate of the individual's deceased parent, spouse, sibling, child, or stepchild; to care for a parent, spouse, sibling, child, or stepchild with a critical life-threatening illness whose treatment plan, as recommended by the attending physician, requires travel outside of the state for treatment at a medical specialty complex; or other reasons that the commissioner of revenue may establish by regulation; requiring, for the purposes of permanent fund dividend eligibility, a state resident to have the intent to remain indefinitely; relating to the eligibility for 1992, 1993, 1994, 1995, 1996, and 1997 permanent fund dividends of certain spouses and dependents of eligible applicants; and providing for an effective date." Representative Pete Kott, sponsor of the bill was invited to join the committee. Tom Williams, staff to Co-chair Sharp was also invited to join the committee. He noted for the committee that his comments were to the "R" version of the work draft and explained that amendments #1 and #2 to the work draft were technical in nature and were requested by the department. Representative Kott said he had nothing to offer to Mr. Williams discussion of the proposed CS, specifically sections 2, 3, 5 and 7 because his office had worked closely with Co-chair Sharp's office and the department. He further noted that the amendments suggested by the department were acceptable. Senator Adams referred to section 4, page 5, line 14 and Mr. Williams responded saying that in order to fulfill the residency requirement one must be a resident for six months. Senator Phillips moved SCS CSHB 2(FIN). Senator Adams objected and asked for an explanation of the piggyback provision for spouses. Mr. Williams clarified the provision and Senator Adams withdrew his objection. SCS CSHB 2(FIN) work draft was adopted. Senator Donley noted there was no sponsor for amendments #1 and #2 and Senator Pearce advised him that these were technical amendments and Co-chair Sharp could not move them. Therefore Senator Pearce moved amendments #1 and #2 and without objection they were adopted. Senator Torgerson moved amendment #3 and Senator Adams objected. Representative Kott explained that the amendment would not change the intent of the allowable absences. Both Senators Torgerson and Pearce discussed outside volunteers and others being just as worthy of being included under the volunteer opportunity. By a vote of five yeas (Parnell, Phillips, Donley, Torgerson, Pearce) and two nays (Adams, Sharp) amendment #3 was adopted. Co-chair Sharp indicated that there would be a title change and Mr. Williams commented to this change. (Tape #24 switched to Side B.) Deborah Vogt, Deputy Commissioner, Department of Revenue was invited to join the committee. She explained the allowable absence provision. There followed brief discussion between committee members and Ms. Vogt on availability of regulations to the department regarding allowable absences. In response to a question from Co-chair Sharp, Ms. Vogt said she would personally rather see no allowable absences. She noted, however, that this legislation was not retroactive, the number of technical changes was acceptable to the department, and the seventy-two hour rule would take effect immediately. She explained that an advertising campaign for the seventy-two hour rule, if necessary, would have a fiscal impact to an otherwise zero fiscal note. Ms. Nanci Jones, Director, Permanent Fund Dividend Division, Department of Revenue, was invited to join the committee. She concurred with the statements of Ms. Vogt. In response to a question by Senator Adams, Ms. Vogt related difficulties regarding the seventy-two hour rule under section nine, but noted that the effective date for the remaining sections was acceptable. Senator Donley asked if the ten-year cut-off could be made effective now and Ms. Vogt said she did not foresee any legal problem. Vincent Uscera, Assistant Attorney General, Civil Division (Juneau), Department of Law was invited to join the committee. He said there would be no problem with the ten- year cut-off date becoming immediately effective. Senator Adams asked what the sponsor thought. Representative Kott said he opposed the proposed amendment. Senator Donley requested an at ease. Co-chair Sharp called the committee to an at ease at approximately 10:25 a.m. and reconvened the meeting at approximately 10:30 a.m. Senator Donley advised that he would offer no amendments at this time. Senator Pearce offered conceptual amendment #4, which would provide allowable absences for teachers in approved school exchange programs. Senators Parnell and Phillips objected. By a vote of 2 yeas (Torgerson, Pearce) and 5 nays (Parnell, Adams, Phillips, Donley, Sharp) amendment #4 failed. Senator Parnell offered conceptual amendment #5 to pull out peace corp and FEMA from the bill. Senator Torgerson objected. By a vote of 5 yeas (Phillips, Parnell, Adams, Pearce, Sharp) and 2 nays (Donley, Torgerson) amendment #5 was adopted. Senator Phillips moved SCS CSHB 2(FIN) the "R" version and without objection it was reported out with accompanying zero fiscal note from the Department of Revenue, Permanent Fund Dividend Division. SENATE CONCURRENT RESOLUTION NO. 19 Relating to the use of prototype designs in public school construction projects. CS FOR SENATE CONCURRENT RESOLUTION NO. 19(HES) Relating to the use of prototype designs in public school construction projects. Representative Eldon Mulder, sponsor of the bill was invited to join the committee. He commented specifically on page 2, lines 15 - 18, noting there were unique needs in the Arctic and sub-Arctic districts. Lines 19 - 23 referred to prototype schools and design and he said that one size does not fit all in Alaska. Alaska has unique traits. Senator Pearce asked if this meant that a district could build as big a school as they wanted. Denny Dewitt, staff to Representative Eldon Mulder replied that there were limitations as to square footage. Senator Torgerson stated that there was a school engineer with the department but no architect. He asked how this would impact borough schools. (Tape change to #25, Side A.) Mr. DeWitt referred to page 1, line 15 and said it would lean heavy to non-urban districts. Senator Adams felt the language on page 2, line 15 was to restrictive and was limited to elementary schools only. Representative Mulder concurred citing the Kiana elementary and upper grade schools saying there were being consolidated. Senator Adams moved amendment #1 to strike "elementary" and insert "K-12" on page 2 at line 15. Mr. DeWitt advised the word "elementary" need only be stricken. Co-chair Sharp at this time said he would hold SCR 19 in committee. Senator Phillips moved title change to HB 2. Senator Adams objected stating that the removal of FEMA did not need a title change. Co-chair Sharp explained that the matter involved dates. Therefore, without objection the title change was adopted and Mr. Williams said he would order the resolution. Senator Pearce reviewed the schedule for tomorrow with the committee. She said Mr. Craig Holt would be presenting a work session on Child Care Programs. ADJOURNMENT Co-chair Sharp adjourned the meeting at 11:00 a.m. until 9:00 a.m. tomorrow. SFC-98 5 2/9/98