Legislature(1997 - 1998)

02/18/1997 01:43 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                        February 18, 1997                                      
                            1:43 P.M.                                          
                                                                               
  TAPE HFC 97-31, Side 1, #000 - end.                                          
  TAPE HFC 97-31, Side 2, #000 - end.                                          
  TAPE HFC 97-32, Side 1, #000 - end.                                          
  TAPE HFC 97-32, Side 2, #000 - 298.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Therriault  called  the  House  Finance  Committee                 
  meeting to order at 1:43 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kelly                           
  Co-Chair Therriault           Representative Kohring                         
  Representative Davies         Representative Martin                          
  Representative Davis          Representative Moses                           
  Representative Foster         Representative Mulder                          
  Representative Grussendorf                                                   
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative Brian Porter; Representative  Alan Austerman;                 
  Representative   Norman   Rokeberg;   Dean  Guaneli,   Chief                 
  Assistant  Attorney  General,   Department  of  Law;   Jayne                 
  Andreen, Council  on Domestic Violence  and Sexual  Assault;                 
  Paul Fuhs, Alaska ARDOR Association; Mary Stadum, Anchorage;                 
  Patricia  Demarco,  Anchorage; Ike  Waits,  Anchorage; Alice                 
  Ruby, Dillingham;  Donna Tollman,  Glennallen; James  Elson,                 
  Kenai; Sherry Biggs, Kenai; James Winchester, Prince William                 
  Sound Economic Development Council;  Berne Miller, Southeast                 
  Conference; Barbara Brink, Director, Public Defender Agency,                 
  Department of Administration;                                                
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 9      "An Act relating to the right of crime victims and                 
            victims of  juvenile  offenses to  be  present  at                 
            court proceedings;  and amending Rule  615, Alaska                 
            Rules of Evidence."                                                
                                                                               
            CSHB 9 (FIN) was reported out of  Committee with a                 
            "do pass" recommendation and with  a fiscal impact                 
            note by the Department of Administration; and with                 
            five zero fiscal  notes, one by the  Department of                 
            Law, one by the  Department of Administration, one                 
                                                                               
                                1                                              
                                                                               
                                                                               
            by  the   Department  of   Public  Safety   (dated                 
            1/27/97),  one by the  Alaska Court  System (dated                 
            1/27/97), and one  by the  Department of Health  &                 
            Social Services (dated 1/27/97).                                   
                                                                               
  HB 35     "An  Act  extending the  termination  date of  the                 
            Alaska regional economic  assistance program;  and                 
            providing for an effective date."                                  
                                                                               
            HB 35  was reported  out of  Committee with a  "do                 
            pass" recommendation and with a fiscal impact note                 
            by  the  Department   of  Community  and  Regional                 
            Affairs, dated 2/5/97.                                             
                                                                               
  HB 51     "An   Act   relating    to   the   Department   of                 
            Environmental Conservation."                                       
                                                                               
            HB   51  was   HELD   in  Committee   for  further                 
            consideration.                                                     
  HOUSE BILL NO. 9                                                             
                                                                               
       "An Act  relating to  the right  of  crime victims  and                 
       victims of  juvenile offenses  to be  present at  court                 
       proceedings;  and amending  Rule  615, Alaska  Rules of                 
       Evidence."                                                              
                                                                               
  BARBARA BRINK, DIRECTOR,  PUBLIC DEFENDER'S AGENCY  observed                 
  that the bill  has metamorphosed  since she last  testified.                 
  She stated that current rules operate to  assure an accurate                 
  fact finding  process.   She  emphasized that  the reason  a                 
  witness is excluded  from a  trial is to  assure that  their                 
  testimony  or  recollection  of events  is  not  modified or                 
  tainted  by  something they  subsequently  learn during  the                 
  proceedings.  Under current rules, the crime victim  that is                 
  not actually a witness to a case would not be excluded.  She                 
  asserted that, if a victim  is also a witness, the  judge is                 
  in the best position  to balance the interest of  the victim                 
  against  assuring that the  jury has  the true  facts before                 
  them.   She emphasized  that the human  brain is  not a true                 
  recorder of events and  can be influenced by other  factors.                 
  She  stated  that a  prosecutor  can  solve the  problem  by                 
  calling the victim as the first  witness.  She spoke against                 
  removal of the Exclusionary Rule from  a criminal case.  She                 
  reiterated that if the victim is not a witness they will not                 
  be excluded from proceedings.                                                
                                                                               
  Ms.  Brink expressed concern  with section  13.   Section 13                 
  limits  the court's  ability to grant  an order  requiring a                 
  victim to undergo a psychiatric or psychological examination                 
  to  cases  where the  victim's  psychiatric condition  is an                 
  element of the offense  charged.  She alleged that  the bill                 
                                                                               
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  ignores the  fact that  people do  not have perfect  recall.                 
  She stated that  witnesses may  have conditions relating  to                 
  their  mental health that  affect their ability  to tell the                 
  truth or remember  accurately.  She  stressed that there  is                 
  already  a  burden  on a  criminal  defendant  to  obtain an                 
  evaluation.  She  maintained that psychological examinations                 
  are  rarely  granted.    She  emphasized  that  due  process                 
  requires that  the jury  be informed  if there  is a  mental                 
  condition  that affects the  credibility of a  witness.  She                 
  stressed that the jury is the finder of fact.                                
                                                                               
  In  response  to a  question  by Representative  Davies, Ms.                 
  Brink  discussed  section  18.    Section 18  amends  Alaska                 
  Evidence Rule 404(b) to allow, in the prosecution of a crime                 
  involving domestic violence or interfering  with a report of                 
  domestic  violence,  evidence  to  be  introduced  that  the                 
  defendant has  committed  other  crimes  involving  domestic                 
  violence or interfering with the report of a crime involving                 
  domestic  violence against the same  or another victim.  She                 
  emphasized that a  person cannot  be convicted because  they                 
  are unlikable or have been bad in the past.  The prosecution                 
  is required to prove that the person actually committed  the                 
  crime in which they are charged.   She noted that a person's                 
  prior misdeeds  can be admissable  under a broad  variety of                 
  circumstances.  If the  misdeed is relative to  prove intent                 
  or motive,  opportunity, common plan  or scheme, or  lack of                 
  mistake or accident  it is admissible.  She  maintained that                 
  this  section   has  constitutional   concerns.     Co-Chair                 
  Therriault  observed  that  section  18  is not  limited  to                 
  previous convictions.                                                        
                                                                               
  Co-Chair Therriault referred to section 8.  Section 8 adds a                 
  new  provision  to the  criminal code  making  it a  class A                 
  misdemeanor to interfere with  a person who is  reporting or                 
  attempting  to  report  a  domestic  violence crime  to  the                 
  police.  These kinds of instances happen when someone who is                 
  a victim of domestic violence decides  to report.  Ms. Brink                 
  asserted that "interfere" is  a broad word.  She  noted that                 
  there is no legal connotation.                                               
                                                                               
  JAYNE  ANDREEN,  EXECUTIVE  DIRECTOR,  COUNCIL  ON  DOMESTIC                 
  VIOLENCE  AND  SEXUAL ASSAULT  testified  in support  of the                 
  committee  substitute.    She observed  that  Alaskan voters                 
  passed a constitutional amendment supporting victims  access                 
  to criminal proceedings.  She  stressed that the legislation                 
  goes  a  long way  in ensuring  that  victims will  have the                 
  access that they are granted by the state constitution.                      
                                                                               
  Ms. Andreen referred  to section  7.  Section  7 amends  the                 
  definition  of   "incapacitated"  in   the  sexual   assault                 
  statutes.     "Incapacitated"  means   that  a   victim  was                 
  temporarily  unable  to appraise  the nature  of his  or her                 
                                                                               
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  conduct,  or  that  the  victim  was temporarily  unable  to                 
  express unwillingness to  act.   She expressed concern  that                 
  the level of proof can be damaging to victims.  She observed                 
  that someone who is developmentally delayed and may not know                 
  or be able to appraise the nature of the act, but is able to                 
  communicate  a willingness  or unwillingness, would  not fit                 
  under the definition.   Victims under  the influence of  the                 
  rape drug, rohypnol, would not fit the definition.                           
                                                                               
  Ms. Andreen discussed  section 8,  the crime of  interfering                 
  with a person  who is  reporting or attempting  to report  a                 
  domestic violence crime to the  police.  She recounted  that                 
  numerous victims have reported that they were prevented from                 
  making a report when the perpetrator ripped the phone out of                 
  the wall.   She expressed  concern that this  relays a  long                 
  term message that it  is futile for the victim to  try to do                 
  anything to protect themselves.                                              
                                                                               
  Ms. Andreen observed  that it is  now mandatory in  domestic                 
  violence cases for the court and corrections systems to look                 
  at and  incorporate the  safety needs  of the  victim.   She                 
  emphasized that the legislation expands  this to all victims                 
  of violent crimes.                                                           
                                                                               
  Ms.   Andreen   referred   to   section  13,   psychological                 
  examinations of a victim.  She observed that a psychological                 
  examination  of the victim indicates to the victim that they                 
  are responsible or  at fault, or  could be held  accountable                 
  for the fact that the crime occurred.                                        
                                                                               
  Ms. Andreen observed  that domestic  violence is a  cyclical                 
  offense.   Domestic violence continues over a period of time                 
  and gradually  escalates.   She stressed  that the  State is                 
  working  to  develop a  policy and  process  that is  not as                 
  dependent on victims, to make or break a criminal case.                      
                                                                               
  Representative G.  Davis suggested  that in  a case where  a                 
  phone is pulled out  of the wall that  "it appears that  the                 
  anger  level is  so high,  would be  so high,  that this  is                 
  really a small thing.  It's like going  into a jewelry store                 
  and robbing  a whole  box  of watches,  and on  the way  out                 
  grabbing a $.25 cent  candy bar."  Ms. Andreen  replied that                 
  it  is  difficult to  comprehend  that domestic  violence is                 
  unlike other  crimes,  in  that  you cannot  take  a  single                 
  episode or incident and break it down.  The on-going erosion                 
  of a person's  ability to be responsible for themselves must                 
  be considered.                                                               
                                                                               
  Co-Chair Therriault  referred to  section 8.   He  expressed                 
  concern that "interfering" is a little "wide open".                          
                                                                               
  Representative Kelly  noted that  AS 18.66.990  is cited  on                 
                                                                               
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  page 3, line  20.   He expressed concern  that federal  laws                 
  that remove the right to keep  and bear arms if a person  is                 
  associated with the crime of  domestic violence could apply.                 
  He  stated  that  "some  of  the  definitions  they  have on                 
  domestic  violence   are  pretty   absurd  to   give  up   a                 
  constitutional   right."     He   maintained  that   because                 
  definitions  of  "domestic  violence"   under  AS  18.66.990                 
  collaterally  references "harassment"  that  a person  could                 
  lose  the  right to  keep and  bear  arms because  they have                 
  insulted,  taunted  or  challenged  someone  to  provoke  an                 
  immediate,  violent response.    He did  not  feel that  the                 
  provision  should  be  in  the  legislation.   He  expressed                 
  concern that the provision is too broad.                                     
                                                                               
  Representative  Grussendorf questioned  if  there have  been                 
  situations where an  in-law, trying to promote  harmony, has                 
  prevented a woman from  filing a report.  Ms.  Andreen noted                 
  that in-laws may provide emotional pressure to the victim to                 
  not  report.  She recounted  two instances where brothers of                 
  the alleged perpetrator applied physical pressure to prevent                 
  a victim from reporting.                                                     
                                                                               
  Representative  Kelly  reiterated  his  questions  regarding                 
  references  to  the definition  of  domestic violence  in AS                 
  18.66.990.  He maintained that this  "is a fairly weak crime                 
  to  go ahead  and include in  this list, which  could end up                 
  causing one to  lose their constitutional right to  keep and                 
  bear arms."  He pointed out  that police and military forces                 
  are  going to  have family  problems, and  that they  aren't                 
  going to have  to do physical harm.   All they are  going to                 
  have to do, is insult, taunt or challenge in a manner likely                 
  to provoke an immediate violent response to be out of a job.                 
  He reiterated that it is a low threshold.                                    
                                                                               
  DEAN GUANELI, CHIEF  ASSISTANT ATTORNEY,  DEPARTMENT OF  LAW                 
  clarified that the portions of  the state harassment statute                 
  that are  incorporated  within the  definition  of  domestic                 
  violence are fairly narrow.  References include telephoning,                 
  making  repeated  telephone   calls,  and  making  anonymous                 
  obscene calls.   He  stressed that  the federal  prohibition                 
  from carrying a fire arm would not automatically be invoked.                 
  He stated that  the federal  prohibition refers to  domestic                 
  violence  that  involves using  physical  force or  a weapon                 
  against a person.   The federal law would only  be triggered                 
  if the state conviction contains those elements.                             
                                                                               
  Representative  Davies  reiterated  that a  person  must  be                 
  convicted under the  state statute for  federal prohibitions                 
  to  take effect.   Mr. Guaneli  clarified that  the physical                 
  restraint of a  person could form  the basis for an  assault                 
  charge  under  state  statute.     He  acknowledged  that  a                 
  conviction  pertaining  to  a single  instance  of  physical                 
                                                                               
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  restraint is rare.                                                           
                                                                               
  Representative Grussendorf noted that the legislation refers                 
  to the  "alleged victim".    Mr. Guaneli  observed that  the                 
  language  acknowledges  that  there   is  an  assumption  of                 
  innocence until guilt is proven.                                             
                                                                               
  Co-Chair  Hanley  referred  to  section  8.    He asked  the                 
  definition of "interfering".   Mr. Guaneli pointed  out that                 
  the  perpetrator has to know  that they are interfering with                 
  someone that is reporting or attempting to report a crime to                 
  a law enforcement agency.    He emphasized that the  jury is                 
  left to decide if there is actual interference.  He observed                 
  that  the  provision is  similar  to statutes  pertaining to                 
  interfering with or resisting an arrest by a law enforcement                 
  agency.    He noted  that this  law  has been  on  the books                 
  without specific definition of "interference".  He clarified                 
  that the perpetrator must know that they are interfering and                 
  that they  must  have  some suspicion  that  the  woman  was                 
  attempting  to report  to  a law  enforcement  agency for  a                 
  conviction  to occur.   He emphasized  that the  most common                 
  occurrence is  the phone  being  removed while  a victim  is                 
  attempting to call  911 or telling a  child to call 911,  or                 
  during an actual  call to 911.   He summarized that it  is a                 
  more aggravated offense  that is reflected by  an additional                 
  charge.                                                                      
                                                                               
  In response to  a question by  Co-Chair Hanley, Mr.  Guaneli                 
  discussed section 18.  He agreed that "the law, as expressed                 
  in this rule  of court, wants  to base a  conviction on  the                 
  conduct that occurred at that particular instance".    There                 
  are exceptions  where prior bad  conduct can also  come into                 
  evidence as a way of explaining or putting into context what                 
  happen on  that particular  instance.   The change  reflects                 
  that domestic  violence is the  type of  thing that  happens                 
  over and over again, and tends to escalate in violence.   He                 
  observed that the  Legislature has  amended this statute  to                 
  allow into evidence prior child sexual abuse.  He noted that                 
  there is  a  similarity in  the  offense patterns  of  child                 
  sexual abuse and domestic  violence.  He did not  think that                 
  the provision would be found unconstitutional.                               
                                                                               
  Representative Davies asked  why the back pattern  cannot be                 
  allowed under existing law.                                                  
                                                                               
  (Tape Change, HFC 97-31, Side 2)                                             
                                                                               
  Mr.  Guaneli noted that  different judges apply  the rule in                 
  different ways.  The specific exceptions under this rule  to                 
  allow in prior bad  acts are applied very literally  by some                 
  judges.                                                                      
                                                                               
                                                                               
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  Representative  Grussendorf  summarized  that  a pattern  of                 
  physical abuse as  demonstrated by  doctor records would  be                 
  admissable.  Mr. Guaneli agreed and added that evidence from                 
  the victim that the abuse has happened on previous occasions                 
  could be admissible.                                                         
                                                                               
  Co-Chair Therriault observed  that prior evidence, not  just                 
  convictions, would  be admissible.   He  suggested that  the                 
  evidence is  being presented  as fact.   Mr. Guaneli  agreed                 
  that the evidence is brought in  as fact.  He stressed  that                 
  the jury must  decide how  the evidence relates  to the  new                 
  event.   Judges generally  instruct juries  to consider  the                 
  prior evidence, not merely for the fact that the person is a                 
  bad  person, but  in  order to  help  explain why  something                 
  occurred  on  another  occasion.    He maintained  that  the                 
  restriction to  prior convictions  would defeat  one of  the                 
  purposes of the provision.  He noted that  domestic violence                 
  often is not reported until well into the cycle of violence.                 
  The action  of the  abuser has  discouraged the victim  from                 
  reporting to the police.                                                     
                                                                               
  In response to  a question by  Co-Chair Hanley, Mr.  Guaneli                 
  discussed the Exclusionary Rule.  He agreed that actual fact                 
  finding is  needed in  any judicial  system.   He maintained                 
  that the current  practice of  automatic exclusion of  every                 
  witness,  including  every  victim,   goes  beyond  what  is                 
  necessary to assure accurate fact finding.  He stressed that                 
  there must be  a balance between  the rights of the  accused                 
  and  the  victim.     He  observed  that  there  is   now  a                 
  constitutional right that gives victims  the right to be  in                 
  the courtroom every time that the  defendant is present.  He                 
  stressed that victims of  certain types of crimes feel  that                 
  they are  victimized by the  proceedings in the  court room.                 
  They feel that they are being attacked by the arguments that                 
  are being  made.  Their  conduct and  credibility are  being                 
  attacked.  Most victims  feel that they  have a right to  be                 
  present when they  are being attacked.   He emphasized  that                 
  the judge  continues to  have the  right to  exclude someone                 
  from  the court room  if their  presence will  prejudice the                 
  jury or  the accused's  rights.   He  maintained that  there                 
  ought to be a factual basis for the exclusion.                               
                                                                               
  Representative Kelly expressed  concern that defendants  may                 
  accept  the charge of domestic violence  because they do not                 
  have  money to  fight the  charge.   He  reiterated concerns                 
  relating to the collateral reference to "harassment".                        
                                                                               
  Representative  Porter pointed  out that all  defendants are                 
  provided counsel by the State if they cannot afford  private                 
  representation.  He spoke  against changing the  fundamental                 
  definition of  domestic violence.   He  emphasized that  the                 
  scope of "harassment"  is a  very narrow application  within                 
                                                                               
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  the domestic violence definition.                                            
                                                                               
  Representative Davies referred  to section 13.   Mr. Guaneli                 
  disagreed  that  section  13  would  present  constitutional                 
  concerns.  He observed that  the defense commonly challenges                 
  the  victim's credibility  through the use  of psychological                 
  examinations by expert witnesses.   He agreed that  a mental                 
  exam would be  appropriate if the victim's  mental condition                 
  is  a  direct element  of  the  defense.   He  observed that                 
  polygraph evidence is not allowed.                                           
                                                                               
  Representative  Davies questioned  if instructions  from the                 
  court that mental examinations cannot be for the purpose  of                 
  harassment   or  embarrassment   have   been  effective   in                 
  preventing abuse.  Mr. Guaneli replied that the standard has                 
  been  low.  He did not think  that the current standards are                 
  adequate to protect against abuse.                                           
                                                                               
  Representative Davies quoted  Ms. Brink  as saying that  the                 
  Court of Appeals has cautioned that,  "care must be taken to                 
  assure  that  requests  for evaluation  will  in  fact yield                 
  relevant evidence."   Mr.  Guaneli expressed  belief that  a                 
  number of judges have  found it easier to approve  the order                 
  for an exam.  When the case goes to trial the  judge decides                 
  if  the evidence will  be allowed.   He pointed out  that by                 
  trial  time the  harm has been  done.  "The  victim has been                 
  revictimized."                                                               
                                                                               
  Co-Chair Hanley MOVED to adopt  Work Draft #O-LS008\H, dated                 
  2/12/97 (copy on file).  There being NO OBJECTION, it was so                 
  ordered.                                                                     
                                                                               
  Representative  Davies  provided  members with  Amendment  1                 
  (copy  on  file).    OBJECTED  for purposes  of  discussion.                 
  Representative Davies explained that Amendment 1 would amend                 
  the Exclusionary  Rule.   He maintained  that the  amendment                 
  would balance the  rights of the  victim and the  defendant.                 
  The amendment would  allow the victim to  be present unless;                 
  "(i)  the  testimony concerns  the  subject about  which the                 
  victim is expected to testify; and (ii) the victim is likely                 
  to be called  as a witness and  has not, at the  time of the                 
  testimony, testified."  He spoke in support of Amendment 1.                  
                                                                               
  Representative  Porter  spoke  against  the  amendment.   He                 
  disagreed that the amendment would balance the rights of the                 
  victim and defendant.   He observed  that the defendant  may                 
  stay  throughout the  trial even  though they  are about  to                 
  testify, but the victim cannot.  He  reiterated that victims                 
  should receive the same rights as defendants.                                
                                                                               
  In response  to  a question  by Representative  Grussendorf,                 
  Representative  Porter   noted  that  the  wording   of  the                 
                                                                               
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  constitutional  amendment  states  that  "crime  victims  as                 
  defined by law, shall have  the following rights as provided                 
  by law".  Some judges have interpreted this to mean that  if                 
  the specific  enumeration is not provided in  the statute it                 
  is  not  provided  by  law.    Mr. Guaneli  added  that  the                 
  Exclusionary Rule has been a court  rule for a long time and                 
  a lot of  judges are use to  operating in this manner.   The                 
  legislation   will  implement   changes   provided  by   the                 
  constitutional amendment.                                                    
                                                                               
  In  response  to a  question  by Representative  Davies, Mr.                 
  Guaneli emphasized that the judge  always has the power  and                 
  obligation to take whatever steps are necessary to assure  a                 
  fair trial.                                                                  
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Davies, Grussendorf, Moses                                         
  OPPOSED:  Davis,  Kelly,  Kohring,  Martin, Mulder,  Hanley,                 
  Therriault                                                                   
                                                                               
  Representative Foster was absent from the vote.                              
                                                                               
  Representative Mulder  MOVED to report  CSHB 9 (FIN)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB 9 (FIN) was reported out of Committee  with a "do pass"                 
  recommendation  and  with  a  fiscal   impact  note  by  the                 
  Department  of Administration;  and  with  five zero  fiscal                 
  notes, one by the  Department of Law, one by  the Department                 
  of Administration, one  by the  Department of Public  Safety                 
  (dated  1/27/97),  one  by the  Alaska  Court  System (dated                 
  1/27/97),  and one  by  the Department  of  Health &  Social                 
  Services (dated 1/27/97).                                                    
  HOUSE BILL NO. 35                                                            
                                                                               
       "An Act extending  the termination  date of the  Alaska                 
       regional economic assistance program; and providing for                 
       an effective date."                                                     
                                                                               
  Representative  Austerman provided  members  with a  sponsor                 
  statement.  He observed that the Alaska Regional Development                 
  Organizations  program  was  created  in  statute  in  1988.                 
  Commonly referred to as ARDOR's, they are private, nonprofit                 
  corporations formed by  local initiative to  promote private                 
  sector economic development within their designated regions.                 
                                                                               
  The ARDOR program  has led to  the formation of 11  regional                 
  development  organizations  such  as  the  Southwest  Alaska                 
                                                                               
                                9                                              
                                                                               
                                                                               
  Municipal Conference,  the Southeast  Conference, the  Lower                 
  Kuskokwim  Economic Development  Council  and the  Anchorage                 
  Economic Development  Corporation.   He maintained  that the                 
  nearly  two  hundred  representatives  of  local  political,                 
  social and  economic interests, who serve on ARDOR boards of                 
  directors, are  working together  to lead  their regions  to                 
  greater economic self-sufficiency.                                           
                                                                               
  The  original legislation had a sunset clause that ended the                 
  program in 1993,  but was extended  until the end of  fiscal                 
  year 1997.  He stated that it is in the best interest of the                 
  State of Alaska to continue the  ARDOR program to ensure the                 
  ongoing economic viability of Alaska's various regions.                      
                                                                               
  Representative  Austerman provided  members with  the Alaska                 
  Regional  Development  Organizations'  Annual Report,  March                 
  1996 (copy  on file).   He  noted that  the last  page shows                 
  funding sources generated  by program.  State funding  was a                 
  little  more  than $600  thousand  dollars  in FY  97.   The                 
  addition  of private  funds resulted  in a  total budget  of                 
  $6,585 million dollars in FY 97.                                             
                                                                               
  PAUL FUHS,  ALASKA ARDOR ASSOCIATION  spoke in behalf  of HB
  35.   He pointed  to the ARDOR  program as  an example  of a                 
  successful private/public  partnership.   He emphasized  the                 
  importance  of  local  implementation  and  coordination  of                 
  projects.    He observed  that  state funding  comes through                 
  Alaska Industrial Development  and Export Authority  (AIDEA)                 
  program receipts.   The Governor has proposed  $620 thousand                 
  dollars for the ARDOR program in FY 98.  He observed  that a                 
  local match is required.                                                     
                                                                               
  Representative Martin expressed his opposition to HB 35.  He                 
  questioned what the ARDOR's do that  cannot be done by local                 
  Chambers of Commerce and Rotary Clubs.                                       
                                                                               
  Mr.  Fuhs emphasized that  ARDOR's provide  a private/public                 
  cooperative effort to look for  infrastructure on a regional                 
  level.  He gave  examples of ARDOR programs.   He maintained                 
  that  Chambers of  Commerce  would  not provide  coordinated                 
  services.  He stated that the Alaska ARDOR Association would                 
  welcome a legislative audit.                                                 
                                                                               
  MARY STADUM, EXECUTIVE DIRECTOR, SOUTHWEST ALASKA  MUNICIPAL                 
  CONFERENCE  testified  via  the  teleconference  network  in                 
  support of  HB 35.   She  observed that  the Conference  was                 
  founded  before  the  ARDOR program  was  established.   She                 
  reviewed services provided by the  Conference.  She stressed                 
  that ARDOR's bring local Chambers  of Commerce together with                 
  other organizations.                                                         
                                                                               
  (Tape Change, HFC 97-32, Side 1)                                             
                                                                               
                               10                                              
                                                                               
                                                                               
  Ms.  Stadum  emphasized that  ARDOR's  allow people  to work                 
  together  and share resources.   She  noted that  leaders in                 
  small  communities wear  many  hats.    She noted  that  the                 
  Conference passed two resolutions  in expressing support for                 
  the ARDOR program.                                                           
                                                                               
  ALICE RUBY, COUNCIL MEMBER, CITY OF DILLINGHAM testified via                 
  the teleconference  network  in  support  of  HB  35.    She                 
  maintained that the  program has allowed  them to work on  a                 
  grass  roots  level  to  provide  information,   networking,                 
  technical assistance and to serve as a catalyst for economic                 
  development and diversification.  She gave examples of ARDOR                 
  activities.                                                                  
                                                                               
  DONNA TOLLMAN,  EXECUTIVE DIRECTOR,  COPPER VALLEY  ECONOMIC                 
  DEVELOPMENT   COUNCIL,   GLENNALLEN   testified    via   the                 
  teleconference network.   She urged support  of HB 35.   She                 
  observed the  affects of  reductions to  the ARDOR  program.                 
  She  stressed  that  the  Council,  through a  contract  for                 
  welfare to work  programs, helps to develop  self efficiency                 
  plans  for  residents.     The  Council  also   helps  small                 
  businesses to  create development plans.  She noted that the                 
  Council is involved in tourism and child care.                               
                                                                               
  Representative Martin maintained  that activities  performed                 
  by the Council  should be done  by government.  Ms.  Tollman                 
  emphasized  the  distance  of  the  region from  the  Palmer                 
  office.                                                                      
                                                                               
  In response to  a question by  Co-Chair Hanley, Ms.  Tollman                 
  noted that the Council received its contract for the welfare                 
  to  work  program through  the  Department of  Community and                 
  Regional Affairs.                                                            
                                                                               
  JAMES  ELSON,  CHAIRMAN,  KENAI PENINSULA  BOROUGH  ECONOMIC                 
  DEVELOPMENT DISTRICT, KENAI testified via the teleconference                 
  network.  He spoke in support of HB 35.  He observed that he                 
  has served as a volunteer  of the local ARDOR  organization.                 
  He stressed that  state funding has  allowed them to  obtain                 
  good professional staff.   He pointed out that ARDOR's  also                 
  receive private  funding.  He  stressed that jobs  have been                 
  created through  economic development efforts.  He recounted                 
  accomplishments of  the  Kenai  Peninsula  Borough  Economic                 
  Development District.                                                        
                                                                               
  SHERRY BIGGS,  KENAI PENINSULA BOROUGH  ECONOMIC DEVELOPMENT                 
  DISTRICT,  KENAI testified via the teleconference network in                 
  support of  HB 35.   She  emphasized that  Kenai has a  very                 
  diversified economy.  She stressed that  there needs to be a                 
  regional approach.   She  maintained that  ARDOR provides  a                 
  bridge between government and private enterprise.                            
                                                                               
                               11                                              
                                                                               
                                                                               
  Mr. Elson observed  that ARDOR's can contract  directly with                 
  the State without going through the competitive bid process.                 
                                                                               
                                                                               
  JAMES WINCHESTER,  EXECUTIVE DIRECTOR, PRINCE  WILLIAM SOUND                 
  ECONOMIC    DEVELOPMENT    COUNCIL,   testified    via   the                 
  teleconference  network in support of HB  35.  He maintained                 
  that the Council is  about providing jobs.  The  Council has                 
  three main areas of  activities, small business development,                 
  infrastructure development projects,  and economic  recovery                 
  projects.   The Council has a $3.0 million dollar budget and                 
  2 and half full time staff positions.                                        
                                                                               
  PATRICIA DEMARCO, PRESIDENT, ANCHORAGE  ECONOMIC DEVELOPMENT                 
  CORPORATION  testified  via  the  teleconference network  in                 
  support of  HB 35.   She  emphasized the  importance of  the                 
  ARDOR program  as an   integrating force  across the  State.                 
  She stressed efforts  to provide year-round jobs.  She noted                 
  that planning  functions are  not easily  funded by  private                 
  sector initiatives.  She reviewed ARDOR projects implemented                 
  by the Anchorage Economic Development Corporation.                           
                                                                               
  IKE  WAITS,  ARDOR  PROGRAM,  DEPARTMENT  OF  COMMUNITY  AND                 
  REGIONAL  AFFAIRS  observed that  the  program is  a  way to                 
  stretch state funds  for regional economic development.   He                 
  spoke in support of the ARDOR Program.                                       
                                                                               
  BERNE  MILLER,  EXECUTIVE  DIRECTOR,   SOUTHEAST  CONFERENCE                 
  testified in support  of HB  35.  He  provided members  with                 
  written testimony  (copy on  file).   He  stressed that  the                 
  program relies on  local and regional decision  making about                 
  what is important.   In response  to a question by  Co-Chair                 
  Hanley,  Mr. Miller acknowledged that the Conference existed                 
  before  it  received  state ARDOR  funding.    The Southeast                 
  Conference's  total  FY  97  budget  is  approximately  $225                 
  thousand dollars.                                                            
                                                                               
  Representative  Kohring expressed  concern with  the State's                 
  participation.                                                               
                                                                               
  Mr.   Miller   stated  that   the   Conference   helps  show                 
  organizations  how   to  execute  projects  as  quickly  and                 
  economically as possible.                                                    
                                                                               
  Co-Chair  Hanley  clarified  that   ARDOR's  are  non-profit                 
  groups.   Individual regional  organizations administer  the                 
  program.                                                                     
                                                                               
  Co-Chair  Hanley  acknowledged  the  benefit  of  the  ARDOR                 
  program.    He  pointed  out   that  many  of  the  regional                 
  organizations would continue to exist without state funding.                 
                                                                               
                               12                                              
                                                                               
                                                                               
  He emphasized  that funding  may be  reduced.  He  clarified                 
  that each ARDOR  receives $55.0 thousand dollars.   He asked                 
  why all ARDOR's receive the same funding.                                    
                                                                               
  Mr. Fuhs  noted that the original appropriation to the ARDOR                 
  program  was $1.6  million dollars.   The  Governor's FY  98                 
  request is $620 thousand dollars.   He maintained that equal                 
  funding is the most  fair.  The required local  match varies                 
  based on capability.                                                         
  Representative  Martin  pointed  out   that  $55.0  thousand                 
  dollars pays for one  position per ARDOR.  He  spoke against                 
  continuing the program.                                                      
                                                                               
  Mr. Fuhs observed that private business  does not want to be                 
  over  regulated.    He added  that  government  working with                 
  business for economic development "makes all  the difference                 
  in the world."                                                               
                                                                               
  Representative Foster MOVED to report HB 35 out of Committee                 
  with individual  recommendations and  with the  accompanying                 
  fiscal note.   Representative  Martin OBJECTED.   He  stated                 
  that the ARDOR program should undergo an audit to  determine                 
  if all eleven  ARDOR's should be funded.   A roll call  vote                 
  was taken on the MOTION.                                                     
                                                                               
  IN FAVOR: Davies,  Davis,   Foster,  Grussendorf,   Kohring,                 
  Mulder,        Therriault,  Hanley                                           
  OPPOSED:  Martin                                                             
                                                                               
  Representative Kelly was absent from the vote.                               
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  HB  35  was  reported out  of  Committee  with  a "do  pass"                 
  recommendation  and  with  a  fiscal   impact  note  by  the                 
  Department of Community and Regional Affairs, dated 2/5/97.                  
  HOUSE BILL NO. 51                                                            
                                                                               
       "An  Act relating  to the  Department of  Environmental                 
       Conservation."                                                          
                                                                               
  REPRESENTATIVE ROKEBERG  provided members  with a  committee                 
  substitute,  Work Draft #O-LS0091\T,  dated 2/17/97 (copy on                 
  file).   Representative Foster MOVED to adopt Work Draft #O-                 
  LS0091\T,  dated 2/17/97.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  Representative  Rokeberg  maintained   that  the   committee                 
  substitute simplifies  the legislation.   He explained  that                 
  the committee substitute  more closely follows HB  342 which                 
  was  passed  by  the Nineteenth  Alaska  State  Legislature.                 
                                                                               
                               13                                              
                                                                               
                                                                               
  House Bill 342 was vetoed by the Governor.                                   
                                                                               
  (Tape Change, HFC 97-32, Side 2)                                             
                                                                               
  Representative Rokeberg reviewed changes incorporated in the                 
  committee  substitute.  The committee substitute revises the                 
  title.  It  also adds  a findings and  intent section  which                 
  states:   "The people of  Alaska express their  will through                 
  the  legislature  and   regulations  implement   legislative                 
  action."   He  maintained that  it is  the  legislature that                 
  determines  the  policy  of  state  government.   Section  2                 
  deletes language  relating to  the definition  of background                 
  conditions, page  1, lines 10  - 12, version  T.   Section 3                 
  deletes  "shall" and inserts  "may" on page  2, line 7.   He                 
  observed that the prior language  resulted in a $3.2 million                 
  dollar fiscal note.  This language relates to state takeover                 
  of  the  National  Pollutant  Discharge  Elimination  System                 
  (NPDES).  The  original legislation added authority  for the                 
  state takeover  of  this  program, at  the  request  of  the                 
  Department  of Environmental  Conservation.   "Natural"  was                 
  changed to "background" on page 2, lines 27, 28, 30 and 31.                  
  New language was added on page 3,  lines 10 - 15, to clarify                 
  that an applicant  is allowed to  request a change in  state                 
  regulation  for  water  quality standards  when  there  is a                 
  deviation from federal Environmental Protection Agency (EPA)                 
  standards.  New regulations would be promulgated as required                 
  by the  statute.   This statutory language  does accept  the                 
  petitioning  language   as  found   in  the   Administrative                 
  Procedures Act.   "Hydrologic"  was changed to  "biological,                 
  chemical, and physical".                                                     
                                                                               
  HB 51 was HELD in Committee for further consideration.                       
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:06 p.m.                                           
                                                                               
                                                                               
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