Legislature(2005 - 2006)HOUSE FINANCE 519

05/07/2006 12:00 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
= HB 316 EXTEND BOARD OF GOVERNORS ABA
Moved CSHB 316(JUD) Out of Committee
SB 48 PSYCH. EVALUATION/TREATMENT FOR STUDENTS
Moved HCS CSSB 48(HES) Out of Committee
= SB 206 DETENTION /I.D. OF PERSONS;CONTEMPT OF CT
Moved HCS CSSB 206(FIN) Out of Committee
= SB 160 STATE PROCUREMENT ELECTRONIC TOOLS
<Pending Referral>
= SB 231 BUDGET: CAPITAL & OTHER APPROPRIATIONS
Heard & Held
Bills Previously Heard/Scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 7, 2006                                                                                             
                         12:31 p.m.                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 12:31:59 PM.                                                                                                         
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Reggie Joule                                                                                                     
Representative Beth Kerttula                                                                                                    
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Kelly                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Betty  Davis; Senator  Con Bunde; Richard  Benavides,                                                                   
Staff, Senator Davis; Barbara  Thompson Director, Division of                                                                   
Teaching and  Learning support,  Department of Education  and                                                                   
Early  Development;  Tom  Swanson,  Anchorage;  Lauren  Rice,                                                                   
Staff, Senator Bunde; Dean Guaneli,  Chief Assistant Attorney                                                                   
General,   Department   of   Law;    Pete   Ecklund,   Staff,                                                                   
Representative  Kevin  Meyer;   Rich  Poor,  Juneau;  Merrill                                                                   
Sanford,   Juneau;  Jim   Becker,   Juneau;  Kevin   Ritchie,                                                                   
Executive Director,  Alaska Municipal League;  Richard Knapp,                                                                   
Juneau; Paul Fuhs, Kuskokwim Association;  Emily Ferr, Alaska                                                                   
Transportation  Priorities,  Juneau;   Tom  Brice,  Laborers,                                                                   
Juneau.                                                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Richard Warner, President, Seattle  Chapter of the Commission                                                                   
on  Human Rights;  Teresa  Obermeyer, Anchorage;  Art  Weeks,                                                                   
Anchorage  Libraries,  Anchorage;   Lynn  McNamera,  Girdwood                                                                   
Community  Center, Anchorage;  Orin Seybert, Alaska  Aviation                                                                   
Museum, Anchorage.                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 316    An Act extending the termination date for the                                                                         
          Board of  Governors of the Alaska  Bar Association;                                                                   
          and providing for an effective date.                                                                                  
                                                                                                                                
          CSHB316 (JUD) was REPORTED OUT of Committee with                                                                      
          one  previously published  zero  fiscal note  (JUD)                                                                   
          and individual recommendations.                                                                                       
                                                                                                                                
CS SB 48(HES)                                                                                                                   
          An  Act   relating  to  recommending   or  refusing                                                                   
          psychotropic drugs or  certain types of evaluations                                                                   
          or treatments for children.                                                                                           
                                                                                                                                
          SB 48  was REPORTED OUT of Committee  with One New,                                                                   
          Zero   Fiscal  Note   (EED)   and  one   Previously                                                                   
          Published   Zero   Fiscal   Note  (#2,   HSS)   and                                                                   
          individual recommendations.                                                                                           
                                                                                                                                
CS SB 206(FIN)                                                                                                                  
          An  Act  relating  to  contempt  of  court  and  to                                                                   
          temporary detention  and identification of persons.                                                                   
                                                                                                                                
          HCS CSSB  206 (FIN)  was REPORTED OUT  of Committee                                                                   
          with three Previously  Published Zero Fiscal Notes:                                                                   
          #5  (ADM); #6 (COR);  #7 (LAW); #8  (ADM) and  a Do                                                                   
          Pass Recommendation.                                                                                                  
                                                                                                                                
CS SB 231(FIN) am                                                                                                               
                                                                                                                                
     An   Act  making   appropriations,   including   capital                                                                   
     appropriations,       supplemental       appropriations,                                                                   
     reappropriations,   and  appropriations   to  capitalize                                                                   
     funds; making appropriations  under art. IX, sec. 17(c),                                                                   
     Constitution   of  the   State  of   Alaska,  from   the                                                                   
     constitutional  budget reserve  fund; and providing  for                                                                   
     an effective date.                                                                                                         
                                                                                                                                
     SB  231 was  HEARD  AND HELD  in  Committee for  Further                                                                   
     Consideration.                                                                                                             
                                                                                                                                
     An Act relating to recommending or refusing                                                                                
     psychotropic  drugs or certain  types of evaluations  or                                                                   
     treatments for children.                                                                                                   
#d 48                                                                                                                           
CS FOR SENATE BILL NO. 48(HES)                                                                                                
                                                                                                                                
     "An   Act   relating   to   recommending   or   refusing                                                                 
     psychotropic  drugs or certain  types of evaluations  or                                                                 
     treatments for children."                                                                                                
                                                                                                                                
SENATOR  BETTY  DAVIS,  SPONSOR,  spoke  in  support  of  the                                                                   
legislation.  She  observed that  a  zero fiscal  note  would                                                                   
replace  the  previous  indeterminate   fiscal  note  by  the                                                                   
Department of Education and Early Development.                                                                                  
                                                                                                                                
RICHARD BENAVIDES,  STAFF, SENATOR  DAVIS explained  that the                                                                   
bill in it's  simplest terms states that a  public school may                                                                   
not deny  any student access  to programs or  services simply                                                                   
because the  parent of the student  has refused to  place the                                                                   
student  on  psychotropic  medications,   get  a  psychiatric                                                                   
evaluation  or seek  psychiatric  or psychological  treatment                                                                   
for  a   child.  The   legislation  also   spells  out   what                                                                   
communications  are allowed, who  can do evaluations  and the                                                                   
protections a  parent or guardian has against  being reported                                                                   
to the Office of Child Services  simply because they disagree                                                                   
with psychotropic  medications.  The 2004 reauthorization  of                                                                   
the IEDA  law requires  that each  state must prohibit  state                                                                   
and  school district  personnel  from  requiring  a child  to                                                                   
obtain a  prescription covered  by the Controlled  Substances                                                                   
Act as  a condition of  attending school, receiving  services                                                                   
or an evaluation  for a disability. The prohibition  does not                                                                   
prevent teachers  or other  school personnel from  consulting                                                                   
or  sharing  classroom  based observations  with  parents  or                                                                   
guardians  about a  student academic  or functional  behavior                                                                   
performance  or  the  need  for   an  evaluation  of  special                                                                   
education  or  related  services. Senate  Bill  48  clarifies                                                                   
that,  while  school  district   personnel  may  share  those                                                                   
observations with  parents and may offer program  options and                                                                   
other  assistant  to the  parents,  but  may not  compel  any                                                                   
specific action  by the  parent or  require that the  student                                                                   
take  medication. He  observed  that Senator  Davis  believes                                                                   
that any  such decisions made  to address the  students needs                                                                   
is a matter between the student,  the student's parents and a                                                                   
competent health care professional chosen by the parent.                                                                        
                                                                                                                                
BARBARA THOMPSON DIRECTOR, DIVISION  OF TEACHING AND LEARNING                                                                   
SUPPORT, DEPARTMENT OF EDUCATION  AND EARLY DEVELOPMENT spoke                                                                   
to the fiscal note,  which has been revised to  a zero fiscal                                                                   
note by  the Department of  Education and Early  Development.                                                                   
She explained  that at  the time  the indeterminate  note was                                                                   
issued, they  did not  know if the  legislation would  have a                                                                   
cost impact  on the school  districts. She observed  that the                                                                   
note was  always intended to be  zero for the  department. At                                                                   
the time  the legislation was  introduced, the  Department of                                                                   
Education  and  Early  Development was  uncertain  if  school                                                                   
districts  would  have to  change  any policies  or  staffing                                                                   
patterns to comply  with the legislation. The  department has                                                                   
not heard anything  that indicates a need to  change staffing                                                                   
or policy.                                                                                                                      
                                                                                                                                
In response to a question by Representative  Stoltze, Senator                                                                   
Davis did  not know of any  litigation surrounding  the issue                                                                   
in the  state of Alaska.  Senator Davis  noted that  the bill                                                                   
had  been  around for  two  years,  and maintained  that  all                                                                   
States  would  eventually  need  a  statute  to  cover  these                                                                   
issues.                                                                                                                         
                                                                                                                                
Representative  Hawker referred  to the indeterminate  fiscal                                                                   
note, and observed  that perhaps the bill would  have a small                                                                   
effect  on school  districts.  Ms. Thompson  reiterated  that                                                                   
they  did not  believe there  would be  any impact,  although                                                                   
they were uncertain when the bill was introduced.                                                                               
                                                                                                                                
12:39:38 PM                                                                                                                   
                                                                                                                                
Representative Chenault  asked  if they had been contacted by                                                                   
any school  districts regarding  concerns of endangerment  to                                                                   
other  children  from a  child  taken  off of  a  medication.                                                                   
Senator Davis did not know of any cases.                                                                                        
                                                                                                                                
12:40:15 PM                                                                                                                   
                                                                                                                                
Representative Kerttula  referred  AS  14.30.172 (1)(a).  She                                                                   
observed   that   the   language    is   somewhat   circular.                                                                   
Observations  cannot  be shared  if  they violate  the  first                                                                   
prohibition. She summarized that  the intent is that if there                                                                   
is some other reason it is allowed. Mr. Benavides agreed.                                                                       
                                                                                                                                
12:41:18 PM                                                                                                                   
                                                                                                                                
RICHARD WARNER, PRESIDENT, SEATTLE  CHAPTER OF THE COMMISSION                                                                   
ON HUMAN RIGHTS,  testified via teleconference.  He commended                                                                   
the work  of Senator Davis in  her staff in crafting  a bill,                                                                   
which he  felt meets  the needs of  all the stakeholders.  He                                                                   
noted  that psychiatric  conditions  are  disorders, and  not                                                                   
diseases, and  explained the  difference. Diseases  require a                                                                   
group  of symptoms  and  a cause  or understanding  of  their                                                                   
physiology must be  proven or established. In  the absence of                                                                   
a known physical cause, a group  of symptoms might comprise a                                                                   
disorder or syndrome. He noted  that a Harvard Medical School                                                                   
Psychiatrist  has  said  that  in  psychiatry  all  of  their                                                                   
diagnoses are  merely syndromes.  He stated that  claims that                                                                   
these disorders are akin to diseases  was incorrect, making a                                                                   
comparison to  treatment for a  life threatening  disease was                                                                   
not  accurate.  He maintained  that  these disorders  were  a                                                                   
matter of  opinion, and  that psychiatrists often  disagreed.                                                                   
He concluded that  the focus should be on  protecting parents                                                                   
who  are  informed,  from  having  a  school  district  force                                                                   
children to take a drug for a  condition that is speculative.                                                                   
He  observed  that  there  is  no  medical  test,  which  can                                                                   
demonstrate  that there  is something  wrong  with a  child's                                                                   
brain. He  also noted recent warnings  by the FDA  that these                                                                   
drugs can double  the risks of a child becoming  suicidal and                                                                   
that the  risk of  cardiovascular problems  is increased.  He                                                                   
pointed out that parents or doctors  might have valid reasons                                                                   
for asking that their child not take a certain drug.                                                                            
                                                                                                                                
12:46:20 PM                                                                                                                   
                                                                                                                                
TOM  SWANSON,  ANCHORAGE, testified  via  teleconference.  He                                                                   
observed that  teachers have job  security due to  tenure. He                                                                   
maintained that teachers sometimes  wish to bypass practicing                                                                   
care  and  understanding  for  the sake  of  convenience.  He                                                                   
advocated the  bill as a  means to require responsibility  by                                                                   
teachers  without   allowing  them   to  "hide  behind   some                                                                   
psychiatric drug".                                                                                                              
                                                                                                                                
Representative Chenault  MOVED  to replace the  indeterminate                                                                   
fiscal  note from  the DEED with  a zero  fiscal note.  There                                                                   
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
Representative  Foster  MOVED  to REPORT  CSSB48  (HES)  from                                                                   
Committee    with   two   fiscal    notes   and    individual                                                                   
recommendations.  There  being   NO  OBJECTIONS,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
SB 48 was  REPORTED OUT of  Committee with a new  zero fiscal                                                                   
note (EED)  and previously  published  zero fiscal note  (#2,                                                                   
HSS) and with "no recommendations".                                                                                             
                                                                                                                                
12:51:00 PM                                                                                                                   
CS FOR SENATE BILL NO. 206(FIN)                                                                                               
                                                                                                                                
     An Act relating to contempt of court and to temporary                                                                      
     detention and identification of persons.                                                                                   
                                                                                                                                
Representative  Stoltze  MOVED   to  ADOPT  Work  Draft  #24-                                                                   
LS1197\N,  Luckhaupt, 5/6/06.  NO  OBJECTIONS, the  Committee                                                                   
Substitute was ADOPTED. NO OBJECTIONS.                                                                                          
                                                                                                                                
SENATOR CON BUNDE, SPONSOR, testified  regarding the bill. He                                                                   
noted  that the  bill was  an  attempt to  address a  growing                                                                   
inner city  problem regarding  material witnesses. He  gave a                                                                   
recent  example of  a circumstance  when a  group engaged  in                                                                   
violent criminal behaviors refused  to provide identification                                                                   
in Anchorage.  He proposed that  it was a balance  to protect                                                                   
the freedoms  of regular  citizens, while  giving the  police                                                                   
the  ability to  prosecute criminals.  He  noted attempts  to                                                                   
maintain  constitutionality,  and stated  that  the chief  of                                                                   
police in Anchorage supported the bill.                                                                                         
                                                                                                                                
12:54:09 PM                                                                                                                   
                                                                                                                                
Senator  Bunde gave  an example  of the  importance of  being                                                                   
able to identify  individuals even if they are  not an active                                                                   
participant  in a  crime. He  referred to  a group  shooting,                                                                   
which occurred in  the Anchorage area. An individual  who was                                                                   
in the area at  the time, but was not involved  in the crime,                                                                   
lead to the  identification and location of  the murderer. He                                                                   
stated  that  the  bill  protected  people  from  unnecessary                                                                   
questioning,  but would aid  police by requiring  individuals                                                                   
to  identify  themselves.  These  witnesses  would  be  given                                                                   
protection.                                                                                                                     
                                                                                                                                
12:57:29 PM                                                                                                                   
                                                                                                                                
Representative Hawker asked if  the Sponsor supported the CS.                                                                   
The Sponsor does support this version.                                                                                          
                                                                                                                                
12:57:55 PM                                                                                                                   
                                                                                                                                
Representative Kerttula  asked  regarding the  ability  of an                                                                   
individual to quash  a subpoena was removed  in the committee                                                                   
substitute.                                                                                                                     
                                                                                                                                
LAUREN RICE, STAFF, SENATOR BUNDE  explained that the section                                                                   
was removed since it implied that  if a person provided their                                                                   
identification,  the   police  could  not  ask   for  further                                                                   
testimony. She explained that  if identification was offered,                                                                   
and the  police decided that  more information was  needed, a                                                                   
subpoena could be issued.                                                                                                       
                                                                                                                                
Representative Kerttula  noted   that  normally   the  courts                                                                   
would decide.                                                                                                                   
                                                                                                                                
DEAN GUANELI,  CHIEF ASSISTANT  ATTORNEY GENERAL,  DEPARTMENT                                                                   
OF LAW explained  that it is the obligation  of every citizen                                                                   
to  provide  testimony in  court  if  they are  required  to,                                                                   
unless  they   would  incriminate  themselves;   there  is  a                                                                   
statutory  scheme that  covers  fifth amendment  claims.  The                                                                   
legislation  attempts  to  provide a  mechanism  to  identify                                                                   
persons    that   witness   crime.    Persons   without    of                                                                   
identification could be given a subpoena.                                                                                       
                                                                                                                                
12:59:28 PM                                                                                                                   
                                                                                                                                
Mr.  Guaneli added  that they  may  be other  reasons that  a                                                                   
prosecutor  would need  their testimony  before a grand  jury                                                                   
beyond  the  need  to  identify  themselves.  This  provision                                                                   
allows that  if a  prosecutor had a  need for testimony,  the                                                                   
individual could  no longer quash  a subpoena.  He maintained                                                                   
that  a  person   should  not  be  allowed   to  avoid  their                                                                   
obligation to  appear before a  grand jury by  simply showing                                                                   
identification. They  can still move to quash  a subpoena for                                                                   
other reasons.                                                                                                                  
                                                                                                                                
Representative Kerttula  maintained  her  concern  that  this                                                                   
could be  used more  broadly and  committed to speaking  with                                                                   
the department of Law.                                                                                                          
                                                                                                                                
Representative Kerttula  also  referred to  the language  "in                                                                   
the vicinity"  of a crime. She  asked how broad  the language                                                                   
was  intended   to  be.  Mr.  Guaneli  suggested   that  this                                                                   
provision must  be read in  context with other  requirements,                                                                   
such  as  the  officer  must  suspect  that  the  person  has                                                                   
material evidence  that applies to the situation,  as well as                                                                   
having  witnessed the  situation.  He concluded  that  police                                                                   
often  must  make  a quick  determination  of  who  might  be                                                                   
involved for  the sake of public  safety. He noted  that they                                                                   
would be unlikely to go far from  the scene of the crime, and                                                                   
contended that the language limited that location.                                                                              
                                                                                                                                
1:05:03 PM                                                                                                                    
                                                                                                                                
Senator Bunde  noted that a  similar discussion  had occurred                                                                   
in the House  Judiciary Committee, and a suggestion  had been                                                                   
made  to change  the  language  to "immediate  vicinity".  He                                                                   
pointed out however,  as in the earlier example  he gave, the                                                                   
information  had been obtained  in an  area removed  from the                                                                   
crime  scene.  He noted  that  this  should  be left  to  the                                                                   
discretion of the police officer.                                                                                               
                                                                                                                                
1:06:09 PM                                                                                                                    
                                                                                                                                
Representative Stoltze  referred to section 2,  pertaining to                                                                   
the protection  of potential  crime victims,  and asked  if a                                                                   
person that  might have been involved  in a group, such  as a                                                                   
gang, might by extension become  a victim in a gang activity.                                                                   
He asked if a  witness in a gang activity  might be protected                                                                   
under the bill.                                                                                                                 
                                                                                                                                
1:07:25 PM                                                                                                                    
                                                                                                                                
Senator Bunde  confirmed that by requiring  identification, a                                                                   
person may  appear to  have been  required to cooperate  with                                                                   
police, which may protect them from ramifications.                                                                              
                                                                                                                                
1:07:57 PM                                                                                                                    
                                                                                                                                
Representative Stoltze  asked for clarification  on temporary                                                                   
detention for the protection of  a witness. Mr. Guaneli noted                                                                   
that there is a general a definition  of victim of a crime in                                                                   
Title 12. the officer did not  have to know that a person was                                                                   
a  victim,  for   this  statute  to  apply,   but  only  have                                                                   
reasonable  suspicion. He  gave  an example  of  report of  a                                                                   
beating,  not witnessed  by police, and  a subsequent  belief                                                                   
that a woman and  man driving away might be  involved in this                                                                   
incident.  He added  that the  statute proposed  a scheme  in                                                                   
which police officers could then request identification.                                                                        
                                                                                                                                
1:10:31 PM                                                                                                                    
                                                                                                                                
Representative Holm asked if there  was a difference provided                                                                   
between adults  and juveniles.  Senator Bunde did  not recall                                                                   
the difference in how this identification  would be obtained.                                                                   
                                                                                                                                
1:11:17 PM                                                                                                                    
                                                                                                                                
Representative Foster    MOVED  to REPORT HCS CSSB  206 (JUD)                                                                   
out of  Committee with attached  fiscal notes  and individual                                                                   
recommendations.  There  being   NO  OBJECTIONS,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
HCS CSSB 206  (FIN) was REPORTED OUT of Committee  with three                                                                   
Previously Published Zero Fiscal  Notes:  #5 (ADM); #6 (COR);                                                                   
#7 (LAW); #8 (ADM) and a Do Pass Recommendation.                                                                                
HOUSE BILL NO. 316                                                                                                            
                                                                                                                                
     An Act extending the termination date for the Board of                                                                     
     Governors of the Alaska Bar Association; and providing                                                                     
     for an effective date.                                                                                                     
                                                                                                                                
Representative Stoltze, Sponsor,  testified in support of the                                                                   
bill.  He explained  that the  legislation  would extend  the                                                                   
termination  date for the  Board of  Governors of the  Alaska                                                                   
Bar  Association. He  observed  that the  previous  committee                                                                   
decided to  extend the Board for  one year in order  to allow                                                                   
review of issues brought forth by a recent audit.                                                                               
                                                                                                                                
1:13:41 PM                                                                                                                    
                                                                                                                                
There are no  special provisions, simply a  time extension to                                                                   
a previous sunset.                                                                                                              
                                                                                                                                
MOVED to  ADOPT the New  Zero Fiscal Note, 5/6/06,  Education                                                                   
and Early Development.                                                                                                          
                                                                                                                                
Representative Kerttula  asked  if the Board  spoke to  a one                                                                   
year extend. Representative Stoltze  responded that the Board                                                                   
would  like  eight years.  He  agreed  with the  Chairman  of                                                                   
Judiciary that it would be best  to address issues in a joint                                                                   
session of both bodies.                                                                                                         
                                                                                                                                
TERESA OBERMEYER, ANCHORAGE, testified  via teleconference in                                                                   
support  of the  legislation.  She stressed  personal  issues                                                                   
with the Board.                                                                                                                 
                                                                                                                                
1:18:47 PM                                                                                                                    
                                                                                                                                
Ms. Obermeyer  attempted to  navigate through charges  toward                                                                   
her.  She urged  that the  legislation  be reconsidered.  She                                                                   
commended   legislators  who   have  showed  leadership   and                                                                   
communication  with the  legislature. She  pledged to  do the                                                                   
work  that needs  to be  done for  the State  of Alaska.  The                                                                   
Alaska  Bar Association  has over 20%  licensed attorneys  in                                                                   
the State. She stated that she supports the bill.                                                                               
                                                                                                                                
1:21:48 PM                                                                                                                    
                                                                                                                                
Representative Hawker  commented on the zero  fiscal note and                                                                   
observed  that  the Board  of  Governors  of the  Alaska  Bar                                                                   
Association  considers itself  exempt from the  appropriation                                                                   
powers of  the legislature and  pointed out that  these types                                                                   
of fiscal  notes  are generally  receipt supported  services.                                                                   
Representative Stoltze acknowledged  that the fiscal note was                                                                   
one of the issues of concern.                                                                                                   
                                                                                                                                
Representative Foster  MOVED to REPORT CSHB 316  (JUD) out of                                                                   
Committee   with   attached  fiscal   note   and   individual                                                                   
recommendations.  There  being   NO  OBJECTIONS,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
CSHB316  (JUD)  was  REPORTED   OUT  of  Committee  with  one                                                                   
previously published  zero fiscal  note (JUD) and  individual                                                                   
recommendations.                                                                                                                
                                                                                                                                
1:24:18 PM                                                                                                                    
CS FOR SENATE BILL NO. 231(FIN) am                                                                                            
                                                                                                                                
     An   Act  making   appropriations,   including   capital                                                                   
     appropriations,       supplemental       appropriations,                                                                   
     reappropriations,   and  appropriations   to  capitalize                                                                   
     funds; making appropriations  under art. IX, sec. 17(c),                                                                   
     Constitution   of  the   State  of   Alaska,  from   the                                                                   
     constitutional  budget reserve  fund; and providing  for                                                                   
     an effective date.                                                                                                         
                                                                                                                                
1:25:11 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  MOVED   to  ADOPT  work  draft  #24-                                                                   
GS2034\X, Kane, 5/7/06, as the  version before the Committee.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
PETE ECKLUND, STAFF, REPRESENTATIVE  KEVIN MEYER, highlighted                                                                   
items in the committee substitute.  The Senate added language                                                                   
to incorporate $182 million for  Power Cost Equalization; the                                                                   
House CS appropriates  $73 million for the top  three schools                                                                   
on the construction list in FY  07; another $90 million would                                                                   
be  appropriated in  FY 08  for schools  number four  through                                                                   
eight. Passage of HB 13 would  add funding for urban schools.                                                                   
There  is approximately  $66.6 million  for municipal  energy                                                                   
assistance, which would be spread  based on population. There                                                                   
is  a $40  thousand  minimum  payment to  each  municipality.                                                                   
There  are  payments  for  the   increased  costs  of  Public                                                                   
Employees  Retirement  System  / Teachers  Retirement  System                                                                   
(PERS/TRS) of  $8.8 million; payments would be  deducted from                                                                   
a  community   would  expect  under  energy   assistance  and                                                                   
deposited  into their  retirement  accounts.  There are  also                                                                   
appropriations for $170 million  of tobacco bond projects (HB
381). The total capital budget is $2.3 billion                                                                                  
                                                                                                                                
1:28:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer pointed  out  the top  three  schools on  the                                                                   
priority list were in Representatives  Moses', Krasner's, and                                                                   
Joule's  districts.  Schools in Representatives  Foster's and                                                                   
Salmon's district would be picked up in the next year                                                                           
                                                                                                                                
1:29:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  encouraged  member's to  read  the  language                                                                   
section of  the budget. Mr.  Ecklund added that  staff should                                                                   
look for technical corrections.                                                                                                 
                                                                                                                                
1:30:27 PM                                                                                                                    
                                                                                                                                
ART   WEEKS,   TESTIFIED   VIA    TELECONFERENCE,   ANCHORAGE                                                                   
LIBRARIES, ANCHORAGE,  spoke in  support for greater  funding                                                                   
for  the  Anchorage   libraries.  He  provided   examples  of                                                                   
efficiencies  and needs.  He observed  that Girdwood  project                                                                   
has received  strong community  support; it has  received, as                                                                   
much  as,  70  percent  in local  elections.  The  people  of                                                                   
Girdwood have  committed $1 million for the  project. Another                                                                   
$1.5 million  is being requested  in the current  year, which                                                                   
should be sufficient to fund the project.                                                                                       
                                                                                                                                
1:33:24 PM                                                                                                                    
                                                                                                                                
Representative Hawker  pointed out that the  Girdwood portion                                                                   
was included in the proposed bill.                                                                                              
                                                                                                                                
1:34:00 PM                                                                                                                    
                                                                                                                                
LYNN   MCNAMERA,  TESTIFIED   VIA  TELECONFERENCE,   GIRDWOOD                                                                   
COMMUNITY  CENTER,   ANCHORAGE,  spoke  in  support   of  the                                                                   
Girdwood library project.                                                                                                       
                                                                                                                                
1:35:12 PM                                                                                                                    
                                                                                                                                
RICH  POOR, JUNEAU,  spoke in  support of  retaining the  $45                                                                   
million  appropriation for  Juneau Access.  He felt  that the                                                                   
appropriation would  not result in  more costs to  the Alaska                                                                   
Marine Highway  System. He maintained that ferry  service was                                                                   
not cost effective  and that its elimination  would result in                                                                   
a savings  to the state. He  asserted that the  Juneau Access                                                                   
Road would eliminate wait time.  The total cost for the State                                                                   
would be  $88 million dollars  and includes a state  match in                                                                   
federal dollars. He emphasized  that are no replacement costs                                                                   
for replacement of  the existing ferries. He  did not believe                                                                   
the  project would  result  in  be at  the  expense of  other                                                                   
projects. He  urged to  keep the $45  million dollars  in the                                                                   
bill.                                                                                                                           
                                                                                                                                
1:39:40 PM                                                                                                                    
                                                                                                                                
MERRILL  SANFORD, JUNEAU,  offered  to answer  questions  and                                                                   
stated support for the Juneau Road Access.                                                                                      
                                                                                                                                
JIM BECKER,  JUNEAU, offered to  answer questions  and stated                                                                   
support for the Juneau Road Access                                                                                              
                                                                                                                                
RICHARD  KNAPP,  JUNEAU,  offered  to  answer  questions  and                                                                   
stated support for the Juneau Road Access                                                                                       
                                                                                                                                
1:40:48 PM                                                                                                                    
                                                                                                                                
KEVIN RITCHIE,  EXECUTIVE DIRECTOR, ALASKA  MUNICIPAL LEAGUE,                                                                   
testified  in   support  of  the  committee   substitute  and                                                                   
emphasized  that it  would help  communities on  a number  of                                                                   
issues.                                                                                                                         
                                                                                                                                
1:41:39 PM                                                                                                                    
                                                                                                                                
ORIN SEYBERT,  TESTIFIED VIA TELECONFERENCE,  ALASKA AVIATION                                                                   
MUSEUM,  ANCHORAGE,  asked reconsideration  of  the  original                                                                   
request  for museum  support  in  order to  preserve  Alaskan                                                                   
aviation  heritage.  Co-Chair  Meyer  pointed  out  that  the                                                                   
funding had been restored to the  $750 thousand dollar level.                                                                   
                                                                                                                                
1:43:38 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch asked  about restoration of Governor                                                                   
Hammond's  airplane.  Mr.  Seybert  felt  that  the  cost  to                                                                   
restore the  airplane would  be more  than $235 thousand.  He                                                                   
felt that the airplane belongs in Anchorage.                                                                                    
                                                                                                                                
1:45:06 PM                                                                                                                    
                                                                                                                                
PAUL FUHS, KUSKOKWIM ASSOCIATION,  commented on consideration                                                                   
of a formation  of a borough in the middle  Kuskokwim area in                                                                   
order to  support the mine. They  need a local  government to                                                                   
form  a tax  arrangement  with  the  mine proposal.  A  draft                                                                   
borough  plan  and  request has  been  developed.  A  borough                                                                   
feasibility  study is needed  to move forward,  at a  cost of                                                                   
$60 thousand.  The Association  is working  closely with  the                                                                   
department.                                                                                                                     
                                                                                                                                
1:47:55 PM                                                                                                                    
                                                                                                                                
EMILY   FERR,  ALASKA   TRANSPORTATION  PRIORITIES   PROJECT,                                                                   
JUNEAU, testified  on the  road access.  She referred  to the                                                                   
record of decision  from the federal Highway  Administration.                                                                   
Based on  the current funding  proposal, alternative  2b (the                                                                   
road/shuttle  ferry option) would  have a  net state  cost of                                                                   
$122 million dollars  over $35 years; double the  cost of the                                                                   
no action  alternative.  The higher  net cost  is due to  the                                                                   
state  match required  for  federal construction  funds.  The                                                                   
state of Alaska's  decided to use $57 million  in state funds                                                                   
to supplement  federal  funds, rather  than maximum  possible                                                                   
federal  assistance; the  State's  cost would  have been  $88                                                                   
million if  federal funds were  maximized. She  asserted that                                                                   
the State would  not be saved by the Juneau  Access road. The                                                                   
move would double the amount required by the State.                                                                             
                                                                                                                                
1:50:27 PM                                                                                                                    
                                                                                                                                
TOM BRICE, LABORERS,  JUNEAU, spoke in support  of the Juneau                                                                   
Access   Road.  He  maintained   the   project  would   be  a                                                                   
significant addition to the State's  transportation portfolio                                                                   
and would help the economy of Southeast Alaska.                                                                                 
                                                                                                                                
1:51:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer urged consideration of the bill and                                                                              
amendments submitted by 5 PM.                                                                                                   
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 1:52 P.M.                                                                                          

Document Name Date/Time Subjects