Legislature(1995 - 1996)
04/26/1996 01:50 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 26, 1996
1:50 P.M.
TAPE HFC 96-142, Side 1, #000 - end.
TAPE HFC 96-142, Side 2, #000 - end.
TAPE HFC 96-143, Side 1, #000 - end.
TAPE HFC 96-143, Side 2, #000 - #283.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:50 p.m.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
ALSO PRESENT
Senator Dave Donley; Jerry Shriner, Special Assistant,
Department of Corrections; Dean Guaneli, Chief Assistant
Attorney General, Department of Law; Dwight Perkins, Special
Assistant, Department of Labor; Diane Barrans, Executive
Director, Postsecondary Education Commission, Department of
Education; Ron Torgenson, Department of Labor; Karen
Rehfeld, Director, Administrative Services, Department of
Education; Mike Tibbels, Staff, Senator Green; Mark
Mickelson, Job Training Partnership Office, Department of
Community and Regional Affairs; Kathleen Strasbaugh,
Assitant Attorney General, Department of Law.
SUMMARY
SB 148 An Act relating to a defined contribution
retirement plan for state employees.
SB 148 was rescheduled to another time.
SB 175 An Act relating to correctional institutions and
their administration; providing the Department of
Corrections with the authority to require
prisoners to assist in paying for medical
treatment; relating to the authority of a law
enforcement agency to charge a prisoner for
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medical costs for a preexisting condition; and
relating to service of criminal sentences.
HCS CSSB 175 (FIN) was reported out of Committee
with a "do pass" recommendation and with three
zero fiscal notes; one by the Department of Health
& Social Services, dated 2/14/96; one by the
Department of Public Safety, dated 4/1/96; and one
by the Department of Corrections, dated 4/1/96.
SB 229 An Act relating to employment contributions and to
making the state training and employment program a
permanent state program; and providing for an
effective date.
CSSB 229 (L&C) was reported out of Committee with
a "do pass" recommendation and with four fiscal
impact notes; two by the Department of Community
and Regional Affairs, dated 3/20/96; two by the
Department of Labor, dated 3/22/96; and with a
zero fiscal note by the Office of the Governor,
dated 3/20/96.
SB 301 An Act relating to postsecondary education.
SB 301 was HELD in Committee for further
consideration.
SENATE BILL NO. 175
"An Act relating to correctional institutions and their
administration; providing the Department of Corrections
with the authority to require prisoners to assist in
paying for medical treatment; relating to the authority
of a law enforcement agency to charge a prisoner for
medical costs for a preexisting condition; and relating
to service of criminal sentences."
SENATOR DAVE DONLEY, SPONSOR, spoke on behalf of SB 175. He
maintained that SB 175 is a follow-up for the constitutional
amendment that was approved by the voters in 1994. The
constitutional amendment passed in 1994, dealt with victims
rights and penal administration. The Constitutional
amendment added rights for victims of crime, restitution
from the offender, and community of condemnation to the
criminal administration provisions of the principal of
reformation and protection of the public.
Senator Donley asserted that SB 175 seeks to fill these new
constitutional mandates. According to Senator Donley SB 175
protects the public safety by prohibiting participation or
instruction in martial arts or any other activity that would
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facilitate violent behavior. He maintained that such
activities serve no rehabilitation purpose and can make
prisoners more dangerous. He stated that the prohibition
against body building and weight lifting equipment would
also serve the public safety goal. He noted that these
provisions were removed and asked that they be restored. He
added that SB 175 enhances rehabilitation opportunities for
prisoners by increasing vocational training opportunities in
an effort to increase both the productivity and the number
of inmates in the Correctional Industries Program. He
stated that the community condemnation mandate would be
fulfilled by the removal of "frills" which are currently
available in some Alaskan prisons, such as premium cable
television, compact disc players and possession of
pornographic materials. He noted that the original version
included a ban on video cassette recorders (VCRs) and
personal computers in inmate's individual rooms. He stated
that computers were available in common areas where they can
be used for educational purposes.
Senator Donley emphasized that SB 175 will reduce costs for
prisoner medical expenses. He discussed health care costs
for inmates with catastrophic illness. Senate Bill 175
would allow the Department greater flexibility in granting
"special medical paroles". He observed that the savings
from this provision is impossible to predict. He maintained
that a lot of money could be saved if a few inmates became
seriously ill.
Senator Donley reiterated that he supports computers in
common areas for educational or vocational use.
Senator Donley noted that CSSS SB 175 (FIN)am would provide
for individual televisions in inmate cells as an incentive.
Inmates would have to make restitution to victims, achieve a
high school equivalency diploma and comply with court orders
for drug, alcohol or sex counseling.
In response to a question by Co-Chair Hanley, Senator Donley
clarified that under HCS CSSS SB 175 (JUD), CD players are
banned, VCRs and personal computers are allowed in rooms.
Tape players are allowed under both versions of the bill.
In the House version computers are allowed in cells if they
are only for educational or vocational purposes. The Senate
version bans them in individual cells.
In response to a question by Representative Mulder, Senator
Donley explained that the Department requested that "special
medical paroles" be expanded to cover inmates that would be
restricted to wheel chairs.
Representative Brown MOVED to adopt Amendment 1, 9-LS958\H.6
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(copy on file). Amendment 1 is a technical amendment to
clarify that the commissioner of the Department of
Corrections shall use Alaska farm products and salmon.
Representative Martin asked why prisoners need food as good
as the armed services. Senator Donley noted that the bill
requires that prisoners not receive food better than the
quality or quantity of the army.
Representative Mulder noted that halibut can sometimes be
bought for as little as .49 cents a pound. He noted that
prison officials could not purchase halibut even though it
was the cheapest protein available because it exceed the
guidelines. He recommended that halibut be included.
Representative Martin suggested that "Alaskan seafood" be
used. Senator Donely cautioned that king crab would be
included under Alaskan seafood.
Representative Brown MOVED to amend Amendment 1, insert
"fish" and delete "salmon". There being NO OBJECTION, it
was so ordered. There being NO OBJECTION to the main
amendment, Amendment 1 as amended was adopted.
Representative Brown MOVED to adopt Amendment 2, 9-LS095\H.7
(copy on file). She explained that Amendment 2 would insert
"apparel" on page 4, line 11. There being NO OBJECTION, it
was so ordered.
Representative Brown discussed Amendment 3, 9-LS095\H.8
(copy on file). She noted that Amendment 3 would ban
smoking in prisons by prisoners. She noted that private
facilities would determine whether or not they allow
smoking. Smoking in state facilities could be allowed for
employees in designated areas that are not accessible to
prisoners. She amended the amendment to have an effective
date of July 1, 1997. The effective date change was
recommended by the Department.
Representative Martin noted that the best way to calm a
prisoner down may be to let them smoke. He stated that if a
prisoner kills himself, from smoking, it is cheaper than
capital punishment.
Representative Brown stated that smoking could be considered
a frill. She maintained that smoking is a drug.
Representative Martin suggested that the amendment would be
cruel and unusual punishment. He stressed that there would
be problems with inmates that are forced to stop smoking.
Senator Donley noted that smoking has been banned in Oregon,
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Texas, Kansas and Utah. Four other states have restricted
smoking to designated areas. The legislation would ban
smoking to designated areas without Amendment 3.
Representative Grussendorf spoke against Amendment 3.
A roll call vote was taken on the MOTION to adopt Amendment
3.
IN FAVOR: Navarre, Therriault, Brown, Kohring
OPPOSED: Mulder, Parnell, Grussendorf, Martin, Foster
Co-Chair Hanley and Representative Kelly were absent from
the vote.
The MOTION FAILED (4-5).
Representative Mulder MOVED to adopt Amendment 4, 9-
LS0958\H.1 on behalf of Senator Donley (copy on file).
Senator Donley explained that Amendment 4 would give the
Correctional Industries a say in the additional vocational
training.
Representative Martin expressed support for vocational
training.
JERRY SHRINER, SPECIAL ASSISTANT, DEPARTMENT OF CORRECTIONS
explained that anytime a product or service is produced by
the correctional industries there is an impact on the
community. He noted that the amendment is designed to
address this issue. The Correctional Industries Commission
can determine if there is significant impact to existing
private industry. He noted that there are some federal
programs which require a rehabilitative element. He
stressed that the legislation can provide the rehabilitative
element needed for federal funding. He emphasized that the
Correctional Industries Commission can assure that there are
no negative impacts.
Representative Martin noted that the amendment states that
there will be no impact from vocational training. Senator
Donley observed that there is a difference between offering
vocational training and having the industry in the prison.
Representative Martin expressed concern that the amendment
would limit vocational training opportunities. Discussion
ensued regarding the difference of vocational training and
correctional industries in relation to impacts on
communities. Mr. Shriner stated that he did not think that
the "free venture" laundry service would be prohibited by
the legislation.
Representative Brown agreed with Representative Martin that
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the amendment would limit what vocational training
opportunities would be available. She pointed out that the
amendment requires vocational training to be under the
Correctional Industries Program. She observed that the
Correctional Industries Program can not serve current inmate
demands. She emphasized that there may be self study
programs.
Representative Parnell asked if all vocational training
occurs within Correctional Industries Program. Mr. Shriner
noted that the commissioner of the Department of Corrections
may also provide vocational training under AS 33.30. He
stated that the amendment would not limit the commissioner's
ability to provide vocational training under AS 33.30.
A roll call vote was taken on the MOTION to adopt Amendment
4.
IN FAVOR: Parnell, Mulder, Foster
OPPOSED: Therriault, Brown, Grussendorf, Kohring, Martin
Co-Chair Hanley and Representatives Kelly and Navarre were
absent from the vote.
The MOTION FAILED (3-5).
Representative Mulder MOVED to adopt Amendment 5, 9-
LS0958\H.2, on behalf of the Sponsor (copy on file).
Senator Donley noted that the amendment would prohibit a VCR
or computer in prisoners' cells.
Representative Brown OBJECTED. She stressed the benefit of
computers. She maintained that computers are an important
part of rehabilitation.
Representative Parnell ascertained that there are no state
owned computers in individual cells.
In response to a question by Representative Martin, Mr.
Shriner noted that computers can be used as a reward for
positive behavior. He noted that there are very few
personal computers in individual cells. He observed that
the Department supports the allowance of personal computers
in individual rooms for purposes of education and training.
He stressed that computers are not viewed as a "frill".
A roll call vote was taken on the MOTION to adopt Amendment
5.
IN FAVOR: Therriault, Martin
OPPOSED: Brown, Grussendorf, Navarre, Kohring, Mulder,
Parnell, Foster
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Co-Chair Hanley and Amendment Kelly were absent from the
vote.
The MOTION FAILED (2-7).
(Tape Change, HFC 96-142, Side 2)
Representative Mulder MOVED to adopt Amendment 6, 9-
LS0958\H.3, on behalf of Senator Donley (copy on file).
Representatives Brown and Navarre OBJECTED. Amendment 6
would prohibit body building and weight lifting equipment.
Senator Donley maintained that the public is concerned about
the presence of body building and weight lifting equipment
in prisons. He acknowledged that the majority of this
equipment is paid for by the prisoners. He noted that
aerobic equipment would not be prohibited. He maintained
that inmates coming out of prison are "bulked up and look
mean and nasty." He alleged that these people get out of
prison and intimidate people.
Mr. Shriner stated that the Department supports the
elimination of free weights. He stated that the Department
thinks that inmates tend to do a reasonable amount of
exercise on other Nautilus type equipment. He emphasized
that a reasonable amount of exercise is healthy, mentally
and physically.
Representative Navarre maintained that the use of free
weights and other body building equipment is good. He
emphasized the amount of discipline needed to stick with a
routine. He stressed the benefit to inmate self esteem and
mental and physical discipline. He noted that exercise can
occupy a lot of the inmate's time.
Representative Martin spoke in opposition to Amendment 6.
He echoed remarks regarding the benefit to self esteem and
discipline.
Representative Kelly expressed concern for the safety of
guards from prisoners using body and weight building
equipment. He noted that aerobic training would still be
available.
In response to a question by Representative Therriault, Mr.
Shriner explained that space requirement for the equipment
varies. Representative Therriault pointed out that some
body building equipment monopolizes needed correctional
space.
Senator Donely expressed support for an amendment to
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Amendment 6 to restrict the prohibition to free weights.
Representative Navarre pointed out that free weights can be
used outdoors. He disputed the Sponsor's characterization
that inmates use this equipment to become more intimidating.
Representative Kohring spoke in support of Amendment 6. He
did not think that body building and weight lifting
equipment is appropriate in the prison environment. He
stated that he meant to vote yes on Amendment 5.
Representative Parnell noted constituent concern that
prisons are not health spas. He questioned the state's
contribution. Mr. Shriner stressed that most of the
equipment belongs to inmates or inmate councils.
Representative Therriault spoke in support of the multiple
use of space.
Representative Navarre noted that the commissioner can limit
the use of body building and weight lifting equipment.
A roll call vote was taken on the MOTION to adopt Amendment
6.
IN FAVOR: Therriault, Kelly, Kohring
OPPOSED: Brown, Grussendorf, Navarre, Martin, Mulder,
Parnell, Foster
Co-Chair Hanley was absent from the vote.
The MOTION FAILED (3-7).
Representative Mulder discussed Amendment 7, 9-LS0958\H.5
(copy on file). He referred to Kerr vs. state of Alaska.
He explained that Amendment 7 would provide that the
commissioner shall monitor or record conversations of
prisoners in pretrial status.
DEAN GUANELI, CHIEF ASSISTANT ATTORNEY, DEPARTMENT OF LAW
observed that there has been abuse of the telephone system
by individuals in pretrial status. Calls have been used to
intimidate victims and witnesses. He noted that a new
computerized phone system was suppose to eliminate these
problems by limiting where prisoners can call. The phone
system is not operational. He observed that the Cleary
settlement provides that the State will not monitor phone
calls of pretrial prisoners. Amendment 7 would be contrary
to that court order. If it passes it would provide grounds
for the State to move to set aside this provision of the
Cleary order.
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Representative Parnell questioned how the attorney/client
privilege would be protected. Mr. Guaneli noted that
inmates can call attorneys after cleared. Mr. Shriner noted
that in some facilities recorders are turned off during
calls with attorneys. In others, there are phones without
recorders that are used only for calls to attorneys or the
ombudsman.
Mr. Guaneli stated that it would be rare for an
attorney/client conversation to be monitored. He noted that
a warrant or wirer taping order would be required.
In response to a question by Representative Martin, Mr.
Guaneli noted that courts have absolute immunity for any of
their judicial acts or the consequences of their actions.
He noted prisoners involved in a mail bombing case in Alaska
were not pretrial prisoners. Discussion ensued regarding
the mail bombing case.
Mr. Guaneli noted that the amendment removes the prohibition
against monitoring of pretrial prisoners.
Representative Mulder MOVED to adopt Amendment 7. There
being NO OBJECTION, it was so ordered.
Representative Mulder discussed Amendment 8, 9-LS0958\H.4
(copy on file). He observed that the Department of
Corrections is currently paying for the cost of post
secondary education. The State spends $94.0 thousand
dollars annually for the entire system. There are currently
17 individuals involved. He noted that the State has a
contract with the University of Alaska. The cost would be
the same for additional students.
Representative Therriault asked if for statistical
information regarding recidivism rates as related to
education. Representative Brown noted a study from Texas
which showed a decrease in recidivism the higher the
education level of the prisoner. She maintained that
individuals with a higher education are less likely to
offend again. She spoke against the amendment.
Representative Kelly stressed that there are a lot of
factors involved in recidivism.
Representative Mulder pointed out that the amendment does
not prevent post secondary education from being offered. It
would only prohibit the expenditure of state funds.
Mr. Shriner clarified that the $94.0 thousand dollars paid
to the University of Alaska only gets the service inside the
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prison. Prisoners pay for their own tuition fees, books,
lab fees and other expenses. They must also meet the same
qualifications as other students.
Representative Martin spoke in support of the amendment. He
maintained that the program is being used by those that are
already educated.
Mr. Shriner noted that the expense was the same when 50
persons participated. He added that the Department is
looking at ways to provide the same level of service at a
reduced cost. He noted that not all courses are available
through correspondence.
In response to a question by Representative Therriault, Mr
Shriner clarified that the State spends $94.0 thousand
general fund dollars annually for the service. The per unit
class cost is the same as for other students.
Representative Kohring spoke in support of Amendment 8. He
maintained that the program is a subsidy to inmates.
(Tape Change, HFC 96-143, Side 1)
Mr. Shriner noted that there are more inmates taking
correspondence courses than are taking classes through the
University of Alaska.
Representative Brown spoke against an absolute spending ban.
She stressed that spending can be monitored through the
budget. She stressed that correspondence classes could be
effected by the amendment's prohibition against state
expenditures.
Representative Therriault emphasized that a less costly
delivery of the service should be sought.
Mr. Shriner noted that the drop in participation occurred in
the past two years. He stated that the drop in
participation is a result of a lack of funding for tuition
fees.
Representative Parnell echoed concern that a literal
interpretation of the amendment could restrict the State
from providing a room or VCRs for educational use.
Mr. Guaneli agreed that a literal interpretation could be
limiting. He observed that the amendment is for general
administrative cost and not tuition. He observed that some
inmates taking college courses have been transferred to
Arizona.
Representative Mulder clarified that the contract is
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annually awarded. He WITHDREW Amendment 8.
Representative Martin MOVED to report HCS CSSB 175 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 175 (FIN) was reported out of Committee with a "do
pass" recommendation and with three zero fiscal notes; one
by the Department of Health & Social Services, dated
2/14/96; one by the Department of Public Safety, dated
4/1/96; and one by the Department of Corrections, dated
4/1/96.
SENATE BILL NO. 229
"An Act relating to employment contributions and to
making the state training and employment program a
permanent state program; and providing for an effective
date."
DWIGHT PERKINS, SPECIAL ASSISTANT, DEPARTMENT OF LABOR
testified in support of SB 229. He explained that the
legislation extends the life of the State Training and
Employment Program (STEP) for an additional two years and
raises the maximum weekly benefit amount for unemployment
insurance (UI) from $212 to $248. The STEP program was
originally enacted as a pilot program to provide training
for Alaska workers. It diverts part of the employee share
of the unemployment insurance tax to a training fund from
which training grants are awarded. Covered employees pay
one-tenth of one percent of their taxable wages into the
training fund. The program will expire on June 30 of this
year without legislative action.
Mr. Perkins observed that the bill as originally submitted
by the Governor would have made STEP permanent in the same
form as the current temporary program, with the exception
that the Alaska Human Resource Investment Council would
serve as the coordinating entity, in place of the defunct
Alaska Job Training Council. The Senate, Community and
Regional Affairs Committee made three changes to the bill.
First, it provided for a sunset date of June 30, 1998, at
which time the efficiency of service delivery and program
goals can again be evaluated. Second, it inserted a
provision requiring the Alaska Human Resource Investment
Council to impose accounting and grant administration
standards on all entities and their grantees participating
in the program. Third, it imposed a 20 percent cap on
administrative overhead.
Mr. Perkins noted that in the Senate Labor and Commerce
11
Committee the UI weekly benefit amount provisions in SB 276
were added to the bill, with changes. This was the version
passed and transmitted to the House.
Mr. Perkins emphasized that except for the above-noted
changes, the provisions of the bill follow the original
pilot program closely. He maintained that the STEP Program
is an integral component of Alaska's job training program
and has enabled participants to increase their average
quarterly earnings from nine to 12 percent. Since its
inception, STEP has trained 4,890 Alaska workers at an
average cost of $2,000 per participant. The program is
financed entirely by employee payroll contributions with no
employer contributions or general fund monies.
Mr. Perkins stressed that STEP serves workers who would
often be ineligible for employment training assistance
through other programs. It offers workers the opportunity
to acquire skills by investing in themselves, and helps
those workers who have been displaced from their jobs to
learn more skills. Nearly 60 percent of those entering the
program are receiving unemployment benefits, and over 80
percent of the participants successful complete the training
and increase their employment opportunities.
Mr. Perkins maintained that as federal training money
decreases from year to year, continuing the STEP Program
will help Alaskans receive the training they need to respond
to the changing needs of business and industry.
Mr. Perkins observed that the Governor's original UI benefit
increase proposal was introduced as SB 276. It proposed a
flexible maximum weekly benefit amount, computed from the
wage base, defined by statute as 75 percent of the average
annual wage, in effect for the calendar year. The bill was
combined with SB 229 in the Labor and Commerce Committee,
with the following changes:
1. The benefit cap was set at a maximum of $248
dollars. The flexible schedule was
discarded.
2. The respective employer/employee shares of
the benefit cost rate were changed from 82/18
to 80/20.
3. The resulting employee tax rate was rounded
to the nearest one/hundredth of one percent
(from one/tenth of one percent).
Mr. Perkins observed that these changes will result in
additional costs to the fund over time, but the respective
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employer and employee shares of those costs will change.
Employees will be contributing a full one-fifth of the
benefit cost rate, and the employer share will decrease to
four-fifths. He noted that the schedule of benefits for
unemployment insurance has not been adjusted to increase the
maximum weekly benefit amount since 1990. Alaska currently
ranks 49th in the nation in unemployment insurance wage
replacement, with the average weekly benefit amount only
slightly more than 27 percent of the average weekly wage for
the state. In terms of the maximum weekly benefit amount,
Alaska ranks 35th in the nation, notwithstanding the higher
cost of living. Alaska currently has the lowest regular
maximum benefit amount of all western states except Arizona.
Mr. Perkins stated that this increase will provide a modest
improvement in wage replacement, coupled with an increase in
the employee share of UI costs. He noted that the employee
will share in the increase of costs. The additional cost to
the employer is a savings of $15 dollars per employee per
year. The additional cost to the employee will be $20
dollars more per year or an additional cost per week of .38
cents.
In response to a question by Representative Brown, Mr.
Perkins stated that Alaska's rating will not be changed by
the legislation. Employees will get a modest increase
during times of unemployment.
Representative Mulder maintained that there was no effort to
try to shift state costs. The effort was to increase the
employment benefit.
Representative Brown noted that the employer as a whole is
contributing less and employees are contributing more. She
asserted that the burden is being shifted from the employers
to the workers.
Mr Perkins emphasized that lower scale individuals will pay
less than $20 dollars.
RON TORGENSON, DEPARTMENT OF LABOR explained that the
current unemployment schedule is bottom heavy. He stated
that the benefit is proportional to the burden. He stated
that the change will cause the people making less and not
benefiting from the increase to pay only pennies a year
more. The only people that will be paying $25 dollars a
year are the people at the top end of the scale.
Representative Martin expressed concern with a lack of jobs
for individuals that attend training programs.
MARK MICKELSON, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
stressed that the identification of appropriate training
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only happens when there is an identifiable career or
employment goal. He stressed that if there is no evidence
of employment money will not be spent on training.
Individual involvement in the program varies. The success
rate of training entities are taken into account. He
estimated a 60 percent employment rate for those that have
successfully completed training.
Representative Brown MOVED to report CSSB 229 (L&C) out of
Committee with individual recommendations and with the
accompanying fiscal notes.
CSSB 229 (L&C) was reported out of Committee with a "do
pass" recommendation and with four fiscal impact notes; two
by the Department of Community and Regional Affairs, dated
3/20/96; two by the Department of Labor, dated 3/22/96; and
with a zero fiscal note by the Office of the Governor, dated
3/20/96.
SENATE BILL NO. 301
"An Act relating to postsecondary education."
DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
discussed SB 301. Senate Bill 301 would move the Alaska
Student Loan Corporation from the Department of Education to
the Department of Revenue and transfer the administrative
functions of the Alaska Commission on Postsecondary
Education to the Alaska Student Loan Corporation. She
stressed that the Commission is committed to making changes
necessary for the financial success and long term viability
of the loan program. She observed that SB 301 would
consolidate some agency functions under one board with the
clear and distinct focus on the welfare of the program. She
noted that there would be some positive changes from the
removal of institutional authorization or regulation of
postsecondary institutions and the move of loan fund
administration to the Corporation in the Department of
Revenue. She questioned why two boards would be necessary
in the future. She suggested that the regulation function
could be transferred as a function of the Department with
oversight from the State Board of Education. She noted that
the legislation leaves inefficiencies and expenses of a
state agency having to administer two separate boards.
Ms. Barrans discussed potential benefits from SB 301. The
Board membership is reduced from 17 to 10. Quorums will be
easier to achieve and there will be some reduction in cost.
The legislation will clean up unnecessary language. She
noted that Ken Vassar, Bond Counsel wrote a memorandum to
her on April 4, 1996, articulating concerns regarding the
constitutional existence of the public Corporation Board in
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SB 301 (copy on file).
Ms. Barrans noted that the Legislature wishes to keep close
ties to the Program. She stressed that if the Commission is
eliminated that legislative ties would remain through the
budget and loan terms.
MIKE TIBBLES, STAFF, SENATOR GREEN noted that the Sponsor
worked with the Legislative Legal Services Agency to address
the constitutional question raised by the Department of Law.
In response to a question by Representative Mulder, Mr.
Tibbles noted that many of the provisions of Executive Order
97 were adopted. He observed that EO 97 had some out dated
federal laws that needed to be cleaned up. The are repealed
in SB 301. He added that legislative involvement and
confirmation were retained in SB 301.
In response to a question by Representative Kohring, Ms.
Barrans discussed the fiscal note accompanying SB 301. She
observed that the only new cost that is not currently being
born, is the cost to the Department of Education to
administer the functions of AS 14.48. The cost of this
function is currently being absorbed by the Student Loan
Corporation. There is a provision in SB 301 that would
allow the assessment of fees on institutions that are
regulated. She noted that the fiscal notes are the same as
for EO 97 with the exception that the institutional
authorization was not moved.
KATHLEEN STRASBAUGH, ASSISTANT ATTORNEY GENERAL, DEPARTMENT
OF LAW spoke regarding constitutional problems with SB 301.
She referred to a memorandum she sent to Senator Judy Salo
on April 23, 1996 (copy on file). She noted that the Board
of the Alaska Commission on Postsecondary Education has
never been subject to legislative confirmation. She argued
that the Board's functions have not changed sufficient to
warrant the need for confirmation. She discussed the
position of legislators on the Board. She noted that non-
voting legislative members remain on the Board. She stated
that under the legislation, legislative members are not
needed for a quorum. The Corporation would no longer pay
per diem to legislative members. She noted that Bond
Counsel has expressed concern that legislators are closer to
the bond issuance process than they were previously.
Members of the Postsecondary Education Commission become the
members of the Corporation under the legislation. She noted
that corporations are not subject to confirmation.
(Tape Change, HFC 96-143, Side 2)
15
Ms. Strasbaugh noted that legislators will not vote under
the legislation. They currently vote and are part of a
quorum. She reiterated that legislators will not receive
per diem or be part of the quorum.
Ms. Strasbaugh maintained that the whole Board is being kept
on in order to require legislative confirmation for the
Corporation. She asserted that this is expensive and
unnecessary. She added that the regulatory function
predominates. She stressed that the argument against
confirmation remains.
Mr. Tibbles noted that under SB 301 legislators will not
serve on the Commission, but they will serve on the
Corporation as non-voting members.
Ms. Strasbaugh acknowledged that legislators are not on the
Commission. She emphasize that concern remains that the
presences of non-voting legislative members on the
Corporation would be closer to the bonding process.
Ms. Strasbaugh noted that by itself, the Alaska Student Loan
Corporation is not subject to confirmation under the
Constitution. The only way the Legislature can require
confirmation is to claim that the Postsecondary Commission
is subject to confirmation and then have the members of the
Student Loan Corporation the same as the Commission through
statute.
KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF EDUCATION expressed concern with SB 301. She noted that
the Department would receive another responsibility at a
time when the Department is trying to focus energy on the
quality education initiative. She observed that the
Department of Education does not have staffing or expertise
in these areas. She observed that the Department of
Education has requested a part time position to assist in
coordinating and scheduling meetings. The authorization
function would be new to the Department. The legislation
also contemplates implementation of regulations for a fee
structure. She emphasized that the Department's limited
resources would be diluted.
Representative Brown questioned the need for two separate
entities.
REPRESENTATIVE CON BUNDE responded that the Alaska
Commission on Postsecondary Education's function is as a
quasi judicial board, warranting legislative confirmation.
The Commission used to decide appeals on student loans.
Currently, staff decides appeals. He maintained that
appeals should go to the Commission. He stressed that the
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Commission can preside over appeals by schools.
Ms. Barrans clarified that under the legislation all loan
related issues are moved away from the Commission. The only
appeals the Commission could hear, under SB 301, would be an
appeal of withdrawal or termination of authorization to
operate an institution in Alaska. She could not recall such
an appeal before the Commission in the past 14 years.
Ms. Barrans noted that the Commission administers the Alaska
Student Loan Program and student aid programs. The
Commission also regulates postsecondary education in Alaska
under AS 14.48. This function would move to the Department
of Education under SB 301.
Ms. Strasbaugh maintained that the basic function of the
Corporation would not be changed. She stressed that the
only function that could be used to base arguments for
confirmation would be the adjudication of institutional
authorization that has been rarely invoked.
SB 301 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:15 p.m.
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