Legislature(1993 - 1994)

01/18/1994 01:39 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                        January 18, 1994                                       
                            1:39 p.m.                                          
                                                                               
  TAPE HFC 94-5, Side 1, #000 - end.                                           
  TAPE HFC 94-5, Side 2, #000 - end.                                           
  TAPE HFC 94-6, Side 1, #000 - 431.                                           
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:39 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson             Representative Hoffman                           
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Senator Rick  Halford; Representative Tom  Brice; Arthur  H.                 
  Snowden, II,  Administrative Director, Alaska  Court System;                 
  Richard  L.  Burton,   Commissioner,  Department  of  Public                 
  Safety;  Edward  McNally, District  Attorney,  Department of                 
  Law;  Dean  Guaneli,  Chief,  Assistant  Attorney   General,                 
  Department   of  Law;   Margot  Knuth,   Criminal  Division,                 
  Department  of  Law;  Diane   Schenker,  Special  Assistant,                 
  Department  of Corrections;  John  Salemi, Director,  Public                 
  Defender Agency, Department  of Administration; Brant McGee,                 
  Director,   Office   of  Public   Advocacy,   Department  of                 
  Administration; David  Stone, Alaska  Council of  Producers;                 
  Anthony   Williams,   Alaska  Miners   Association;  Patrick                 
  Conheady,  Private  Attorney;  Jerry Luckhaupt,  Legislative                 
  Legal Counsel, Legislative Affairs Agency;                                   
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 132    "An Act extending  the time period of  all permits                 
            issued by the state relating  to the extraction or                 
            removal of resources if the  holder of the permits                 
            is involved in  litigation concerning the issuance                 
            or  validity   of  any  permit   related  to   the                 
            extraction or removal."                                            
                                                                               
            CSHB 132 (JUD)  was HELD in Committee  for further                 
            discussion.                                                        
                                                                               
  SB 19     "An Act relating to the crime of conspiracy."                      
                                                                               
                                1                                              
                                                                               
                                                                               
            CSSB 19 (FIN)am was HELD  in Committee for further                 
            discussion.                                                        
                                                                               
  SENATE BILL NO. 19                                                           
                                                                               
       "An Act relating to the crime of conspiracy."                           
                                                                               
  Co-Chair Larson observed  that CSSB 19 (FIN)am  was assigned                 
  to a subcommittee consisting  of Chair Representative Hanley                 
  and Representatives Parnell and Hoffman, on 3/23/93.                         
                                                                               
  Representative  Hanley noted  that the subcommittee  did not                 
  alter CSSB 19 (FIN)am.                                                       
                                                                               
  Representative  Brown OBJECTED to  consideration of  CSSB 19                 
  (FIN)am, by the House Finance Committee.  By point of order,                 
  she noted  that CSSB  19 (FIN)am  had been  considered by  a                 
  committee not constituted correctly under the uniform rules.                 
                                                                               
                                                                               
  SENATOR RICK HALFORD noted that CSSB 19 (FIN)am would create                 
  a separate crime of conspiracy.  He  spoke in support of the                 
  Department of Corrections' fiscal note.                                      
                                                                               
  Representative Brown referred  to page 1, line  6, "agrees".                 
  She   suggested  that   "agrees"  be  augmented   with  "and                 
  communicates the agreement to the  other person or persons".                 
  Senator Halford did  not think that the  additional phrasing                 
  was necessary.    Representative Brown  argued that  further                 
  clarification is necessary.  She noted that the person being                 
  charged did not have to be involved in the overt act.                        
                                                                               
  ARTHUR H. SNOWDEN, II, ADMINISTRATIVE DIRECTOR, ALASKA COURT                 
  SYSTEM expressed concern  that the legislation would  have a                 
  fiscal impact on the Alaska Court System.  He estimated that                 
  court workloads  would increase  due to  longer trials.   He                 
  asked that the  Alaska Court System fiscal  note be adopted.                 
  He  suggested that intent  language could be  added to lapse                 
  funding if no  more than 6  trials pertaining to  conspiracy                 
  charges are  tried in  the fiscal  year.   He observed  that                 
  there  are  only three  court rooms  in  the state  that can                 
  accommodate trials with multiple defendants.                                 
                                                                               
  BRANT MCGEE, DIRECTOR, OFFICE OF PUBLIC ADVOCACY, DEPARTMENT                 
  OF ADMINISTRATION noted  that the Office of  Public Advocacy                 
  will defend conspiracy  cases if the Public  Defender Agency                 
  has a conflict of interest.  He estimated that the Office of                 
  Public  Advocacy  would represent  75 percent  of conspiracy                 
  cases.  He assumed that the  majority of defendants would be                 
  indigent.    He  emphasized  that  conspiracy  trials  would                 
  involve multiple  defendants and be intensely  litigated and                 
                                                                               
                                2                                              
                                                                               
                                                                               
  expensive.  He disagreed with assumptions, by the Department                 
  of Law,  that multiple  defendant cases  would reduce  court                 
  costs.  He pointed out that lawyers  representing one client                 
  would have to be in attendance  for the entire trial length.                 
  He maintained  that costs to  the Office of  Public Advocacy                 
  will triple.                                                                 
                                                                               
  PAT CONHEADY, PRIVATE ATTORNEY asserted that the legislation                 
  is  not necessary.   He maintained that  it is substantially                 
  more expensive  to defend  a conspiracy  charge.  He  stated                 
  that  the bill  to government  agencies from  the Office  of                 
  Public  Advocacy  in conspiracy  cases  has been  four times                 
  greater than in other cases.  He stressed the  need for plea                 
  bargaining and a process for screening cases.  He noted that                 
  the Attorney General banned plea bargaining in the 1970's.                   
                                                                               
  EDWARD MCNALLY, DISTRICT ATTORNEY, ANCHORAGE, DEPARTMENT  OF                 
  LAW emphasized that  the State of  Alaska is the only  state                 
  that does not  have a conspiracy  law.  He pointed  out that                 
  conspiracy  laws are  not  new.   He  maintained that  cases                 
  involving conspiracies in the State of Alaska would continue                 
  to be tried by the federal  government if the legislation is                 
  not  adopted.   He  stressed  that multiple  defender trials                 
  provide the jury  and judge  with a clearer  picture of  the                 
  crime.  He discussed a case  consisting of multiple narcotic                 
  defendants to demonstrate how separate trials would not tell                 
  the whole story.   He estimated that a conspiracy  law would                 
  primarily be used in cases involving narcotics.                              
                                                                               
  Mr. McNally acknowledged that the federal government can try                 
  conspiracy cases in  Alaska, but pointed  out that only  the                 
  most serious  cases would  be tried  in federal  court.   He                 
  emphasized that  rural areas  of the  State of  Alaska would                 
  benefit  from  the  legislation   against  smaller  narcotic                 
  operations.                                                                  
                                                                               
  Mr.  McNally disputed previous statements  by Mr. McGee.  He                 
  stated that most conspiracy trials would only involve 2 to 3                 
  defendants.    He disagreed  that  trial time  in conspiracy                 
  cases would be longer than the sum of separate trials.                       
                                                                               
  Mr. McNally asserted that many conspiracy cases do not go to                 
  trial.  He  maintained that  conspiracy trials increase  the                 
  probability that defendants will be convicted.                               
                                                                               
  Mr. McNally  referred to  Representative Brown's  suggestion                 
  that  "agrees"  be  augmented  with  "and  communicates  the                 
  agreement to the other person or persons".  He felt that the                 
  language would weaken the legislation.  He pointed out  that                 
  the prosecution must  prove that  the defendant intended  to                 
  agree,  actually  did  agree  and  that  an  overt  act  was                 
  committed in furtherance of the agreement.                                   
                                                                               
                                3                                              
                                                                               
                                                                               
  Representative Navarre asked if there would be fracturing of                 
  cases  when  the  charge  of conspiracy  is  employed.   Mr.                 
  McNally  replied  that it  would  be extremely  difficult to                 
  fracture cases involving  conspiracy.   He noted that  cases                 
  containing overlapping confessions would still be fractured.                 
                                                                               
                                                                               
  (Tape Change, HFC 94-5, Side 2)                                              
                                                                               
  Representative Brown  questioned how  the prosecution  would                 
  demonstrate agreement if it was not communicated.  Mr. Nally                 
  answered that inference would be used.  Representative Brown                 
  asked how agreement  would be  demonstrated if both  parties                 
  were not involved in the overt  act.  Mr. McNally emphasized                 
  that enough evidence must  be present to convince  the jury.                 
  He pointed out that federal law uses "conspires"  instead of                 
  "agrees".   He maintained that the jury process will prevent                 
  misuse of the law.                                                           
                                                                               
  In  response  to  a question  by  Representative  Brown, Mr.                 
  McNally discussed "entrapment".   He stated that  initiation                 
  of the offense can not come from law enforcement officers.                   
                                                                               
  Mr. McNally observed that conspiracy charges are not used to                 
  charge  someone involved in a different  type of crime, such                 
  as  soliciting laws.   He  emphasized  that conspiracy  is a                 
  separate crime.   Conspiracy law would allow  prosecutors to                 
  charge offenders not otherwise charged.                                      
                                                                               
  Mr.  McNally  pointed out  that  conspiracy charges  carry a                 
  slightly  less serious  penalty than  the actual crime.   He                 
  explained that in exchange for  a lesser penalty prosecutors                 
  may obtain evidence  concerning others  not involved in  the                 
  overt action.                                                                
                                                                               
  Mr. McNally acknowledged that state prosecutors will need to                 
  confer in order  to determine how  a conspiracy law will  be                 
  utilized, after legislation is passed.                                       
                                                                               
  In  response  to  a question  by  Representative  Brown, Mr.                 
  McNally  stated  that  he  expected that  the  ban  on  plea                 
  bargaining will be lifted by the Attorney General.                           
                                                                               
  JOHN SALEMI, DIRECTOR, PUBLIC DEFENDER AGENCY, DEPARTMENT OF                 
  ADMINISTRATION testified via the teleconference network from                 
  Anchorage.  He emphasized that the legislation will create a                 
  new and distinct category of crime.   He suggested that more                 
  conspiracy cases will  come to trial  than estimated by  Mr.                 
  McNally.  He pointed out that a conspiracy law could be used                 
  for prosecution of gang activities.   He maintained that the                 
  legislation will result in an increase in prosecution.                       
                                                                               
                                4                                              
                                                                               
                                                                               
  Mr. Salemi accentuated  that conspiracy trials will  be long                 
  and costly.  He  disagreed that a conspiracy trial  would be                 
  more  effective  in demonstrating  the  entire picture  of a                 
  crime  than  separate  trials  of  multiple defenders.    He                 
  questioned the  credibility of  defendants  involved in  the                 
  lessening  of  their  charges  in exchange  for  information                 
  regarding another party.                                                     
                                                                               
  Mr.  Salemi  referred  to the  Office  of  Public Advocacy's                 
  fiscal note.   He  suggested that  the estimation  of fiscal                 
  impact is conservative.                                                      
                                                                               
  Representative Brown expressed concern that the  legislation                 
  would be passed without the  accompanying fiscal notes.  Mr.                 
  Salemi replied  that if  the legislation  is passed  without                 
  increased  fiscal   support  postponement  of   cases  would                 
  probably  result.  The  postponement of cases  would be more                 
  detrimental to the prosecution than to the defense.                          
                                                                               
  (Tape Change, HFC 94-6, Side 1)                                              
                                                                               
  RICHARD L. BURTON, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY                 
  testified on behalf of the  legislation.  He envisioned that                 
  conspiracy  laws  would  be  used  to  pursue  crimes  under                 
  contemplation.     He  felt  the  legislation   would  allow                 
  proactive or  preventative law  enforcement.   He  disagreed                 
  with the previous  statement that  most defendants would  be                 
  indigent.                                                                    
                                                                               
  DIANE SCHENKER, SPECIAL ASSISTANT, DEPARTMENT OF CORRECTIONS                 
  discussed the Department's fiscal note.  She stated that the                 
  fiscal note estimates a 1  percent increase in incarceration                 
  due to cases  involving conspiracy for unclassified  class A                 
  or B  crimes against persons.   She added that  the cost per                 
  day for incarceration will be higher in FY 95 than in FY 94.                 
  She emphasized that the State  of Alaska's correction system                 
  is at full capacity.                                                         
                                                                               
  CSSB  19  (FIN)am   was  HELD   in  Committee  for   further                 
  discussion.                                                                  
                                                                               
  HOUSE BILL NO. 132                                                           
                                                                               
       "An Act extending the time period of all permits issued                 
       by  the state relating to  the extraction or removal of                 
       resources if the  holder of the permits  is involved in                 
       litigation concerning the  issuance or validity  of any                 
       permit related to the extraction or removal."                           
                                                                               
  REPRESENTATIVE BRICE  explained  that CSHB  132 (JUD)  would                 
  allow state resource permits to be extended while the holder                 
                                                                               
                                5                                              
                                                                               
                                                                               
  is under litigation.   The permit  would be extended by  the                 
  amount of time spent in litigation.  The extension would not                 
  be  issued  unless  the  permit  holder was  prevented  from                 
  operating by a court  order from the lawsuit and  the holder                 
  won the suit.                                                                
                                                                               
  ANTHONY WILLIAMS, ALASKA MINERS ASSOCIATION spoke in support                 
  of CSHB 132 (JUD).                                                           
                                                                               
  Representative Therriault  asked if the extension  should be                 
  tied to a  court ordered  injunction.  He  pointed out  that                 
  litigation  could   cause  the  developers  to   lose  their                 
  financial backing.   He  asserted  that the  simple fact  of                 
  litigation   can   prevent   development   of   a   project.                 
  Representatives  Brice  and  Therriault agreed  to  research                 
  legal  wording  of  an  amendment  which would  address  the                 
  permits under  litigation when  a court  injunction has  not                 
  been issued.                                                                 
                                                                               
  Representative Brown  asked  how  the  property  rights  and                 
  contract provisions of Oil and Gas leases would be effected.                 
                                                                               
                                                                               
  JERRY  LUCKHAUPT,  LEGISLATIVE  LEGAL  COUNSEL,  LEGISLATIVE                 
  AFFAIRS  AGENCY  discussed  the  validity  of the  state  or                 
  federal permit.  The legislation is limited to suits against                 
  issuance and validity of permits.                                            
                                                                               
  DAVID STONE, PRESIDENT, COUNCIL OF ALASKA PRODUCERS spoke in                 
  support of CSHB 132 (JUD).  He emphasized that litigation of                 
  permits is one of the major issues involving the development                 
  and operation of mining projects.                                            
                                                                               
  CSHB 132 (JUD) was HELD in Committee for further discussion.                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:31 p.m.                                           
                                                                               
                                                                               
                                6                                              

Document Name Date/Time Subjects