Legislature(2005 - 2006)SENATE FINANCE 532

03/27/2006 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 310 EMPLOYMENT OF PRISONERS TELECONFERENCED
Moved SB 310 Out of Committee
+= SB 289 INSURANCE TELECONFERENCED
<Above Bill Hearing Canceled>
+ SB 189 REQUIREMENTS FOR DRIVER'S LICENSE/I.D. TELECONFERENCED
Moved CSSB 189(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                            MINUTES                                                                                           
                    SENATE FINANCE COMMITTEE                                                                                  
                         March 27, 2006                                                                                       
                           9:04 a.m.                                                                                          
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair  Lyda  Green  convened   the  meeting  at  approximately                                                               
9:04:20 AM.                                                                                                                   
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Bert Stedman                                                                                                            
                                                                                                                                
Also Attending:  SENATOR CHARLIE  HUGGINS; DARWIN PETERSON, Staff                                                             
to  Co-Chair  Green;  SHARLEEN  GRIFFIN,  Director,  Division  of                                                               
Administrative   Services,   Department   of   Corrections,   DON                                                               
ETHERIDGE,  Alaska State  AFL-CIO;  DEBORAH  GRUNDMANN, Staff  to                                                               
Senator Huggins;                                                                                                                
                                                                                                                                
Attending  via Teleconference:   From  Anchorage: DUANE  BANNOCK,                                                             
Director,   Division    of   Motor   Vehicles,    Department   of                                                               
Administration; From an offnet location: MATTHEW KERR                                                                           
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 310-EMPLOYMENT OF PRISONERS                                                                                                  
                                                                                                                                
The  Committee   heard  from  the  sponsor,   the  Department  of                                                               
Corrections  and  a  labor  union. The  bill  was  reported  from                                                               
Committee.                                                                                                                      
                                                                                                                                
SB 189-REQUIREMENTS FOR DRIVER'S LICENSE/I.D.                                                                                   
                                                                                                                                
The  Committee   heard  from  the  sponsor,   the  Department  of                                                               
Administration and a member of  the public. The bill was reported                                                               
from Committee.                                                                                                                 
                                                                                                                                
SB 289-INSURANCE                                                                                                                
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
9:04:56 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 310                                                                                                        
     "An  Act  relating  to  the  employment  of  prisoners;  and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate Finance                                                                  
Committee.                                                                                                                      
                                                                                                                                
DARWIN PETERSON, Staff to Co-Chair Green, presented this bill                                                                   
sponsored by the Senate Finance Committee. He overviewed the                                                                    
sponsor statement, which reads as follows.                                                                                      
                                                                                                                                
     The  legislation   that  created  the   Alaska  Correctional                                                               
     Industries program  and commission  was repealed on  July 1,                                                               
     2005.  The primary  purpose  of  SB 310  is  to provide  the                                                               
     necessary   statutory  authority   so   the  Department   of                                                               
     Corrections can continue providing  inmate work and training                                                               
     programs without interruption.                                                                                             
                                                                                                                                
     SB  310  is  needed  to provide  for  employment  of  prison                                                               
     inmates  under AS  33.30. This  employment  program will  be                                                               
     funded  from  Receipt  Support   Services  funds.  The  bill                                                               
     provides  the necessary  statutory authority  to participate                                                               
     in  critical  federal   Prison  Industry  Enhancement  (PIE)                                                               
     programs.  It   also  grants   the  authority   to  actively                                                               
     participate  and  partner  with  private  enterprise.  These                                                               
     partnerships  will  provide  realistic work  experience  and                                                               
     vocational training  for prisoners under  conditions similar                                                               
     to those  that prevail  in the private  sector. SB  310 will                                                               
     allow  the   department  to  make   a  deduction   from  the                                                               
     offenders' wages to apply to  the cost of confinement. These                                                               
     receipts will support the prison employment program.                                                                       
                                                                                                                                
     In  addition,  the  prison  employment  program  will  allow                                                               
     inmates to  work toward  financial responsibility  by taking                                                               
     deductions  from  wages to  pay  for  child support,  victim                                                               
     restitution,  criminal  fines,  civil  judgments,  fees  for                                                               
     utilities, as well as other obligations.                                                                                   
                                                                                                                                
     SB 310 is a vital piece of legislation if we are to                                                                        
     continue inmate work and vocational training programs in                                                                   
     our correctional facilities.                                                                                               
                                                                                                                                
9:07:15 AM                                                                                                                    
                                                                                                                                
Senator  Dyson recalled  several years  prior that  limited space                                                               
acerbated  a problem  with  classifying  long-term prisoners  and                                                               
housing them in  one location where investments  in training them                                                               
would be feasible. He asked if  progress has been made to address                                                               
this.                                                                                                                           
                                                                                                                                
9:07:54 AM                                                                                                                    
                                                                                                                                
SHARLEEN GRIFFIN, Director,  Division of Administrative Services,                                                               
Department of  Corrections, testified  that the problem  has been                                                               
somewhat  abated. She  told of  the  women's sewing  shop at  the                                                               
Hiland  Mountain Correctional  Center,  and  the recently  opened                                                               
men's  sewing  shop  located  at  the  Meadow  Creek  site.  That                                                               
facility  has a  large  labor force  despite  the rotations.  The                                                               
inmates who are  working and the production managers  are able to                                                               
train other  inmates. The wood  furniture shop is located  at the                                                               
Seward facility, which houses a  long-term stable work force. The                                                               
Lemon Creek  Correctional Center houses the  laundry industry and                                                               
a  sterile laundry  program. No  problems with  the workforce  or                                                               
training exist at the Juneau location.                                                                                          
                                                                                                                                
9:08:45 AM                                                                                                                    
                                                                                                                                
Senator Dyson  was encouraged. He  reminded that the  Division of                                                               
Parks   and   Outdoor   Recreation    and   the   Department   of                                                               
Transportation and Public  Facilities considered utilizing prison                                                               
labor  for  trail  work  and  brush  clearing.  This  was  deemed                                                               
unfeasible  because the  agencies would  not know  the number  of                                                               
qualified workers  would be available.  He asked if a  program in                                                               
which inmates participate as day laborers would be possible.                                                                    
                                                                                                                                
9:09:34 AM                                                                                                                    
                                                                                                                                
Ms. Griffin  replied that such activities  are possible, although                                                               
notice would  be required, as institutions  are "very scheduled".                                                               
Staff  availability and  classification of  inmates suitable  for                                                               
travel outside the facility must be accommodated in advance.                                                                    
                                                                                                                                
9:10:03 AM                                                                                                                    
                                                                                                                                
Senator Dyson requested an update on these efforts.                                                                             
                                                                                                                                
9:10:19 AM                                                                                                                    
                                                                                                                                
Ms.  Griffin assured  she would  report future  progress to  him.                                                               
Over the  past few years,  inmates have done brush  clearing work                                                               
for the  Alaska Railroad Corporation,  as well as  community work                                                               
near the  Point Mackenzie Correctional Farm.  Offenders housed at                                                               
the  Lemon Creek  Correctional Center  have painted  some of  the                                                               
Department's central administration offices.                                                                                    
                                                                                                                                
9:10:46 AM                                                                                                                    
                                                                                                                                
Senator Dyson appreciated these efforts.                                                                                        
                                                                                                                                
9:10:52 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green  noted that  the  ability  to provide  day  labor                                                               
services  would be  dependant upon  the level  of confinement  of                                                               
inmates, whether minimum, medium or maximum security.                                                                           
                                                                                                                                
9:11:14 AM                                                                                                                    
                                                                                                                                
Senator Stedman asked the percentage  of inmates who participated                                                               
in  a work  training  program who  furthered  employment in  that                                                               
field upon  release from prison. He  asked if the results  of the                                                               
programs are to occupy inmates' time or train them for jobs.                                                                    
                                                                                                                                
9:11:50 AM                                                                                                                    
                                                                                                                                
Ms. Griffin  was unsure  the percentages.  However, participation                                                               
in  these programs  teaches general  responsibility and  prepares                                                               
inmates  for work  environments.  It also  provides a  management                                                               
tool.                                                                                                                           
                                                                                                                                
9:12:56 AM                                                                                                                    
                                                                                                                                
Senator Stedman understood the general  benefits. He relayed that                                                               
as a  college student in the  state of Oregon, he  recalled other                                                               
students  in   the  vocational   technical  programs,   who  were                                                               
furthering  their training  received while  they were  in prison.                                                               
The training they got while  incarcerated assisted them in having                                                               
a career,  the ability to  earn a  good income and  support their                                                               
families if they decided to remain law abiding.                                                                                 
                                                                                                                                
9:13:46 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  surmised this  is the goal.  She was  unsure that                                                               
"you  can always  inspire others  with  your own  dream in  these                                                               
settings."                                                                                                                      
                                                                                                                                
Co-Chair Green  understood that  the legislature  had incorrectly                                                               
allowed a program to lapse.  This legislation would allow funding                                                               
appropriated to the program to be transferred to that program.                                                                  
                                                                                                                                
9:14:13 AM                                                                                                                    
                                                                                                                                
Ms.  Griffin  affirmed. She  also  stressed  this legislation  is                                                               
necessary  to   allow  continuation  of  the   inmate  employment                                                               
program. The statutes  that had lapsed included  a provision that                                                               
this program  would have no  obligation to  workers' compensation                                                               
insurance. Without this legislation,  the program is questionable                                                               
because  the   State  would  be  required   to  provide  workers'                                                               
compensation insurance for inmate labor.                                                                                        
                                                                                                                                
Ms. Griffin continued  that this bill would  allow the Department                                                               
to participate in prison  industry enhancement programs certified                                                               
through  the   Correctional  Industries  Association,   which  is                                                               
supported  by the  Bureau of  Justice Assistance.  These programs                                                               
allow the  State to enter  relationships with  private businesses                                                               
to  sell  products  across  state lines.  They  are  governed  by                                                               
several requirements  to ensure  against unfair  competition with                                                               
private  vendors; that  the State  pays the  prevailing wage  for                                                               
those  jobs, that  studies are  done to  determine the  impact of                                                               
these industries;  and allowances for  the cost of care  to allow                                                               
the offender to help support the cost of the program.                                                                           
                                                                                                                                
9:15:52 AM                                                                                                                    
                                                                                                                                
DON ETHERIDGE, Alaska State AFL-CIO,  testified in support of the                                                               
prison  industry  program. However,  he  was  concerned with  the                                                               
provision of  this bill making  one person the determiner  of the                                                               
minimal  effects on  the current  workforce. Incorrect  decisions                                                               
could  put people  out  of  work. He  supported  the inmate  work                                                               
program  and  has hired  inmates  of  the  halfway house  as  day                                                               
laborers.                                                                                                                       
                                                                                                                                
9:17:11 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  asked if other  statutes address  the competition                                                               
issue.                                                                                                                          
                                                                                                                                
9:17:21 AM                                                                                                                    
                                                                                                                                
Mr. Etheridge was unsure.                                                                                                       
                                                                                                                                
9:17:25 AM                                                                                                                    
                                                                                                                                
Ms.   Griffin   informed   that   the   Correctional   Industries                                                               
Association,  which administers  the Prison  Industry Enhancement                                                               
Act  for  the federal  government,  has  mandatory criteria.  One                                                               
requires that  a prison industry  program could not  impact labor                                                               
unions or existing workers.                                                                                                     
                                                                                                                                
9:18:00 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  requested a copy  of those requirements  [copy on                                                               
file].                                                                                                                          
                                                                                                                                
9:18:11 AM                                                                                                                    
                                                                                                                                
Mr. Etheridge  was not  aware of this  criterion. He  pointed out                                                               
that prison industry has replaced union labor in brush cutting.                                                                 
                                                                                                                                
9:18:46 AM                                                                                                                    
                                                                                                                                
Co-Chair Green surmised that union  workers could return to brush                                                               
cutting activities,  as inmate  labor would  be reduced  for this                                                               
task.                                                                                                                           
                                                                                                                                
9:18:59 AM                                                                                                                    
                                                                                                                                
Mr.   Etheridge  responded   that   at-risk   youth  groups   are                                                               
undertaking brush-cutting  projects across  the state.  The labor                                                               
source for this activity is not fair competition.                                                                               
                                                                                                                                
9:19:23 AM                                                                                                                    
                                                                                                                                
Senator Stedman  noted the  legislative appropriations  for large                                                               
capital projects are  increasing the needs for  workers. He asked                                                               
the  labor pool  available  for these  new construction  projects                                                               
versus  smaller projects,  including  brush  cutting and  license                                                               
plate manufacturing. He asked if a worker shortage exists.                                                                      
                                                                                                                                
9:20:16 AM                                                                                                                    
                                                                                                                                
Mr. Etheridge replied that some  fields are experiencing a worker                                                               
shortage. The unions are making  significant efforts statewide in                                                               
training  more workers  through  apprenticeship  programs in  all                                                               
fields of labor.                                                                                                                
                                                                                                                                
9:21:19 AM                                                                                                                    
                                                                                                                                
Senator  Stedman  commented  on  the  difficulty  of  the  issue.                                                               
Incarcerated inmates need  to be occupied and  need job training.                                                               
Also, workers must have employment.                                                                                             
                                                                                                                                
9:22:03 AM                                                                                                                    
                                                                                                                                
Mr. Etheridge agreed.  The union's concern is the  use of workers                                                               
earning minimum  wage to replace  other workers who would  be out                                                               
of a good  job. This could result in the  displaced workers being                                                               
incarcerated when they are out  of work and "do something stupid"                                                               
to try to pay their bills.                                                                                                      
                                                                                                                                
9:22:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  offered  a  motion  to  report  the  bill  from                                                               
Committee with individual recommendations and new fiscal notes.                                                                 
                                                                                                                                
There was  no objection and  SB 310  MOVED from Committee  with a                                                               
zero fiscal note  dated 3/24/06 from the Department  of Labor and                                                               
Workforce Development and  a zero fiscal note  dated 3/24/06 from                                                               
the Department of Corrections.                                                                                                  
                                                                                                                                
9:23:13 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 189(STA)                                                                                            
     "An Act relating to issuance of identification cards and to                                                                
     issuance of driver's licenses; and providing for an                                                                        
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
9:23:42 AM                                                                                                                    
                                                                                                                                
SENATOR CHARLIE  HUGGINS, sponsor  of this  bill testified  it is                                                               
important  to the  country and  to  the state.  It provides  that                                                               
Alaska "does  its part."  In May 2005,  President George  W. Bush                                                               
signed the Real  ID Act into law,  which establishes requirements                                                               
that states must comply with.                                                                                                   
                                                                                                                                
Senator  Huggins  stated that  legal  residents  and US  citizens                                                               
would  not  be  impacted  by this  legislation.  It  would  cause                                                               
difficulty  for people  in the  country  illegally by  preventing                                                               
them from obtaining a drivers license.                                                                                          
                                                                                                                                
Senator  Huggins informed  that  the Division  of Motor  Vehicles                                                               
accepts  15  to  20  types  of  documents  for  drivers'  license                                                               
issuance. The drivers' license of a  person residing in the US as                                                               
a college  student, or residents  "on an indefinite visit  to the                                                               
United States  of America  from outside"  would expire  after one                                                               
year.                                                                                                                           
                                                                                                                                
Senator Huggins concluded that this  legislation would provide it                                                               
very difficult  or impossible for  a person in the  United States                                                               
illegally to obtain a drivers license in the state of Alaska.                                                                   
                                                                                                                                
9:25:29 AM                                                                                                                    
                                                                                                                                
Co-Chair Green noted the large  demonstration held in Washington,                                                               
DC on US immigration policy that where recently held.                                                                           
                                                                                                                                
Co-Chair   Green  asked   if  this   legislation  would   require                                                               
additional identification from US citizens.                                                                                     
                                                                                                                                
9:26:02 AM                                                                                                                    
                                                                                                                                
Senator  Huggins replied  that  this bill  would  not change  the                                                               
status of those people.                                                                                                         
                                                                                                                                
9:26:10 AM                                                                                                                    
                                                                                                                                
Senator Stedman  shared that he  had unsuccessfully  attempted to                                                               
use his State-issued Senate ID card to board an airline.                                                                        
                                                                                                                                
9:26:36 AM                                                                                                                    
                                                                                                                                
Senator  Huggins told  of a  possible argument  in opposition  to                                                               
this bill  is a  claim that  it is an  attempt at  implementing a                                                               
national  identification system.  However,  this  bill would  not                                                               
accomplish this.                                                                                                                
                                                                                                                                
9:27:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken noted  the  reference  to "conditional  resident                                                               
alien" on page 1, line 8 of  the bill, and asked if this pertains                                                               
to a person with a "green card".                                                                                                
                                                                                                                                
9:27:20 AM                                                                                                                    
                                                                                                                                
DEBORAH  GRUNDMANN, Staff  to Senator  Huggins, read  the federal                                                               
definition of conditional resident alien as follows.                                                                            
                                                                                                                                
     A conditional resident alien is  any alien granted permanent                                                               
     resident status  on a conditional  basis. Example:  a spouse                                                               
     of a  US citizen, an  immigrant investor who is  required to                                                               
     petition for  the removal  of the  set of  conditions before                                                               
     the   second  anniversary   of  approval   of  his   or  her                                                               
     conditional status.                                                                                                        
                                                                                                                                
Ms. Grundmann was  unsure if this included  individuals holding a                                                               
green card.                                                                                                                     
                                                                                                                                
9:28:39 AM                                                                                                                    
                                                                                                                                
DUANE BANNOCK,  Director, Division of Motor  Vehicles, Department                                                               
of  Administration, testified  via teleconference  from Anchorage                                                               
that Senator  Huggins adeptly explained  why this  legislation is                                                               
important. It would make the  Division compliant with the federal                                                               
Real ID Act.                                                                                                                    
                                                                                                                                
Mr. Bannock  stated that  under the provisions  of this  bill, to                                                               
obtain an Alaska  drivers' license a person must be  a US citizen                                                               
or prove  that they are residing  in the country legally.  In the                                                               
case of  legal residents who  are not US citizens  the expiration                                                               
date of the drivers' license would be different.                                                                                
                                                                                                                                
Mr. Bannock  spoke to misinformation  regarding the Real  ID Act,                                                               
of which this  legislation is one component. As a  result of past                                                               
administration  policies  of  the  Division,  Alaska  is  already                                                               
nearly  compliant  with the  federal  law.  The majority  of  the                                                               
Division's  policies have  been established  in regulation.  This                                                               
bill would make much of the regulation statutory.                                                                               
                                                                                                                                
9:30:49 AM                                                                                                                    
                                                                                                                                
MATTHEW  KERR   testified  via  teleconference  from   an  offnet                                                               
location that he  opposed this bill and the federal  Real ID Act.                                                               
He   predicted  significant   financial  costs   associated  with                                                               
frequent license  renewals. A foreign  student would  be required                                                               
to visit  the Division  up to five  times during  their four-year                                                               
education,  which  would  be  inconvenient  to  the  student  and                                                               
cumbersome for  the Division. If  he were a student  from another                                                               
country attending college in the  US and this legislation were in                                                               
effect, he  would ignore its  provisions and continue  to utilize                                                               
his drivers' license from his  home country. This would result in                                                               
increased  public   safety  expenses.  Drivers   operating  motor                                                               
vehicles  in the  US should  receive  training to  drive in  this                                                               
country.  The  driving  laws and  requirements  for  obtaining  a                                                               
license in Russia are considerably different.                                                                                   
                                                                                                                                
9:36:55 AM                                                                                                                    
                                                                                                                                
Co-Chair Green indicated  she would distribute a  written copy of                                                               
the Mr. Kerr's testimony if he provided it to her office.                                                                       
                                                                                                                                
9:37:03 AM                                                                                                                    
                                                                                                                                
Senator Huggins  asserted that Mr.  Kerr just explained  why this                                                               
legislation   is   necessary.   Protection   against   foreigners                                                               
intending harm  to the US  is not the  sole task of  each state's                                                               
Division  of  Motor  Vehicles,  or  state  law  enforcement,  the                                                               
Federal  Bureau of  Investigation,  or  the Central  Intelligence                                                               
Agency. It is the responsibility of all these agencies.                                                                         
                                                                                                                                
Senator  Huggins  was  not   concerned  that  a  foreign-national                                                               
college  student attending  the University  of Alaska,  Anchorage                                                               
must  renew his  or her  drivers'  license each  year. A  college                                                               
student   in  North   Carolina  recently   "rammed  through   the                                                               
population",  giving his  reason as  "he didn't  like the  people                                                               
there [be]cause he thought that  they were… killing people of his                                                               
religious  group." Senator  Huggins  stressed,  "That's the  real                                                               
world."  If   the  Alaska  Division   of  Motor   Vehicles  could                                                               
discourage such  occurrences, or contribute  in the capture  of a                                                               
non-citizen with  similar intentions,  this legislation  would be                                                               
successful.                                                                                                                     
                                                                                                                                
9:38:33 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken offered a motion to report the bill from                                                                        
Committee with individual recommendations and accompanying                                                                      
fiscal note.                                                                                                                    
                                                                                                                                
Without objection CS SB 189(STA) was MOVED from Committee with                                                                  
fiscal note #1 of $20,000 from the Department of Administration.                                                                
                                                                                                                                
9:38:54 AM AT EASE                                                                                                            
                                                                                                                                
9:39:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken announced  that the  budget subcommittees  would                                                               
conclude  and  the  full  Committee  would  consider  the  FY  07                                                               
operating budget during the following  weeks. A schedule would be                                                               
published soon.                                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Lyda Green adjourned the meeting at 9:39:44 AM                                                                       

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