Legislature(2001 - 2002)

04/28/2001 09:10 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 28, 2001                                                                                           
                         9:10 A.M.                                                                                              
                                                                                                                                
TAPE HFC 01 - 104, Side A                                                                                                       
TAPE HFC 01 - 104, Side B                                                                                                       
TAPE HFC 01 - 105, Side A                                                                                                       
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House  Finance Committee meeting                                                                   
to order at 9:10 A.M.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Williams, Co-Chair                                                                                          
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Con Bunde, Vice-Chair                                                                                            
Representative Eric Croft                                                                                                       
Representative John Davies                                                                                                      
Representative Carl Moses                                                                                                       
Representative Richard Foster                                                                                                   
Representative John Harris                                                                                                      
Representative Bill Hudson                                                                                                      
Representative Ken Lancaster                                                                                                    
Representative Jim Whitaker                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Norman Rokeberg;  Representative Gary Stevens;                                                                   
Representative  Beth  Kerttula;   Representative  Joe  Green;                                                                   
Janet  Seitz, Staff,  Representative  Norman Rokeberg;  Elmer                                                                   
Lindstrom, Special Assistant to  the Commissioner, Department                                                                   
of  Health   and  Social  Services;  Larry   LaBolle,  Staff,                                                                   
Representative Richard  Foster; Guy Bell,  Director, Division                                                                   
of  Retirement and  Benefits,  Department of  Administration;                                                                   
Melanie Lesh, Staff, Representative Bill Hudson.                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 4      An Act relating to offenses involving operating a                                                                     
          motor vehicle, aircraft,  or watercraft while under                                                                   
          the   influence  of   an   alcoholic  beverage   or                                                                   
          controlled  substance; relating to  implied consent                                                                   
          to take  a chemical test; relating  to registration                                                                   
          of   motor  vehicles;   relating  to   presumptions                                                                   
          arising  from the amount  of alcohol in  a person's                                                                   
          breath  or blood;  and providing  for an  effective                                                                   
          date.                                                                                                                 
                                                                                                                                
          CS HB  4 (FIN) was  reported out of  Committee with                                                                   
          "individual" recommendations  and with fiscal notes                                                                   
          #5, #6, #11, and #12  by the Department of Health &                                                                   
          Social Services and  #16 by the Alaska Court System                                                                   
          and new  fiscal notes  by the Department  of Public                                                                   
          Safety,  the Department of  Law, the Department  of                                                                   
          Corrections and two  new notes by the Department of                                                                   
          Administration.                                                                                                       
                                                                                                                                
HB 37     An Act relating to reimbursement of certain                                                                           
          student  loans;  and  providing  for  an  effective                                                                   
          date.                                                                                                                 
                                                                                                                                
          HB 37 was POSTPONDED for hearing at a latter date.                                                                    
                                                                                                                                
HB 43     An Act relating to reimbursement of certain                                                                           
          student  loans;  and  providing  for  an  effective                                                                   
          date.                                                                                                                 
                                                                                                                                
          HB 43 was HELD and HELD in Committee for further                                                                      
          consideration.                                                                                                        
                                                                                                                                
HB 53     An Act establishing the Alaska Seismic Hazards                                                                        
          Safety Commission.                                                                                                    
                                                                                                                                
          HB 53 was reported out of Committee with a "do                                                                        
          pass" recommendation  and with a fiscal  note #1 by                                                                   
          Department of Natural Resources dated 3/30/01.                                                                        
                                                                                                                                
HB 198    An  Act  relating  to   a  post-retirement  pension                                                                   
          adjustment   and   cost-of-living   allowance   for                                                                   
          persons   receiving  benefits  under   the  Elected                                                                   
          Public Officers  Retirement System;  and increasing                                                                   
          the compensation of the governor.                                                                                     
                                                                                                                                
          CS HB 198 (FIN) was  reported out of Committee with                                                                   
          "individual"  recommendations  and  with  a  fiscal                                                                   
          note  by  Department  of  Administration  #1  dated                                                                   
          4/16/01 and a zero fiscal  note #2 by the Office of                                                                   
          the Governor dated 4/16/01.                                                                                           
                                                                                                                                
HB 239    An Act establishing  a pilot program for a regional                                                                   
          learning center.                                                                                                      
                                                                                                                                
          HB 239 was reported out of Committee with a "do                                                                       
          pass"  recommendation  and with  a  fiscal note  by                                                                   
          Department  of  Education  & Early  Development  #1                                                                   
          dated 4/25/01.                                                                                                        
                                                                                                                                
HB 260    An  Act  requiring   the  owners  or  operators  of                                                                   
          certain passenger  vessels operating in  the marine                                                                   
          waters  of  the  state  to  register  the  vessels;                                                                   
          establishing     information-gathering,      record                                                                   
          keeping,  and  reporting requirements  relating  to                                                                   
          the vessels' graywater  and sewage; prohibiting the                                                                   
          discharge  of  untreated  sewage from  the  vessels                                                                   
          unless  exempted; placing  limits on discharges  of                                                                   
          treated  sewage  and  graywater  from  the  vessels                                                                   
          unless   exempted;    establishing   a   commercial                                                                   
          passenger    vessel   coastal   protection    fund;                                                                   
          establishing   a   fee  on   commercial   passenger                                                                   
          vessels,  that are  not  exempt from  the fee,  for                                                                   
          each  voyage during  which the  vessels operate  in                                                                   
          the  marine  waters  of  the  state  based  on  the                                                                   
          overnight  accommodation  capacity  of the  vessels                                                                   
          determined  with reference to  the number  of lower                                                                   
          berths;  establishing   penalties  for  failure  to                                                                   
          comply with  certain laws relating to  the vessels;                                                                   
          authorizing   the   Department   of   Environmental                                                                   
          Conservation  to encourage  and recognize  superior                                                                   
          environmental   protection   efforts   related   to                                                                   
          commercial    passenger     vessels;    authorizing                                                                   
          exemptions  from some  laws relating to  discharges                                                                   
          from  the vessels  and  from the  fee  requirements                                                                   
          related  to the  vessels; requiring  a report  from                                                                   
          the   Department  of   Environmental   Conservation                                                                   
          concerning  matters  relating to  the vessels;  and                                                                   
          providing for an effective date.                                                                                      
                                                                                                                                
          HB 260 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
HOUSE BILL NO. 260                                                                                                            
                                                                                                                                
     An  Act requiring  the owners  or  operators of  certain                                                                   
     passenger vessels operating  in the marine waters of the                                                                   
     state    to   register    the   vessels;    establishing                                                                   
     information-gathering,  record  keeping,  and  reporting                                                                   
     requirements  relating  to  the vessels'  graywater  and                                                                   
     sewage;  prohibiting the  discharge of untreated  sewage                                                                   
     from  the vessels  unless  exempted;  placing limits  on                                                                   
     discharges  of treated  sewage  and  graywater from  the                                                                   
     vessels  unless  exempted;   establishing  a  commercial                                                                   
     passenger vessel  coastal protection fund;  establishing                                                                   
     a  fee on  commercial passenger  vessels,  that are  not                                                                   
     exempt from  the fee, for  each voyage during  which the                                                                   
     vessels operate in the marine  waters of the state based                                                                   
     on the  overnight accommodation capacity of  the vessels                                                                   
     determined  with  reference   to  the  number  of  lower                                                                   
     berths;  establishing penalties  for  failure to  comply                                                                   
     with certain  laws relating to the  vessels; authorizing                                                                   
     the   Department   of  Environmental   Conservation   to                                                                   
     encourage    and   recognize   superior    environmental                                                                   
     protection  efforts  related   to  commercial  passenger                                                                   
     vessels; authorizing exemptions  from some laws relating                                                                   
     to  discharges  from  the   vessels  and  from  the  fee                                                                   
     requirements related to the  vessels; requiring a report                                                                   
     from  the   Department  of  Environmental   Conservation                                                                   
     concerning   matters  relating   to  the  vessels;   and                                                                   
     providing for an effective date.                                                                                           
                                                                                                                                
Co-Chair  Mulder  pointed out  that  one amendment  had  been                                                                   
incorrectly referenced during the previous meeting.                                                                             
                                                                                                                                
Co-Chair Mulder MOVED to RESCIND  action taken on adoption of                                                                   
Amendment #6.   [Copy  on File].   There being NO  OBJECTION,                                                                   
the action was rescinded.                                                                                                       
                                                                                                                                
Co-Chair Mulder  MOVED to  ADOPT the  New Amendment  #6 which                                                                   
references AS  09.25.450.   [Copy on File].   There  being NO                                                                   
OBJECTION, the amendment was adopted.                                                                                           
                                                                                                                                
HB 260 was HELD in Committee for further consideration.                                                                         
                                                                                                                                
HOUSE BILL NO. 4                                                                                                              
                                                                                                                                
     An Act relating to offenses  involving operating a motor                                                                   
     vehicle,  aircraft,   or  watercraft  while   under  the                                                                   
     influence  of   an  alcoholic  beverage   or  controlled                                                                   
     substance;  relating  to   implied  consent  to  take  a                                                                   
     chemical  test;   relating  to  registration   of  motor                                                                   
     vehicles;  relating  to presumptions  arising  from  the                                                                   
     amount  of alcohol in  a person's  breath or blood;  and                                                                   
     providing for an effective date.                                                                                           
                                                                                                                                
REPRESENTATIVE NORMAN ROKEBERG  commented that Alaska has one                                                                   
of the toughest drunk driving  laws in the United States, but                                                                   
many  of drunk  drivers are  not  getting the  message.   The                                                                   
proposed  legislation  would   create  the  toughest  set  of                                                                   
driving under the influence laws in the country.                                                                                
                                                                                                                                
He added that  poor judgment and chemical dependency  are the                                                                   
primary  causes  of habitual  drinking  and driving.    Those                                                                   
people kill, injure  and maim Alaskans causing  untold grief,                                                                   
pain and  suffering and economic  loss.  Estimates  show that                                                                   
the  average 1998  alcohol-related  fatality  in Alaska  cost                                                                   
$5.1  million   dollars,  while  the  average   1998  injured                                                                   
survivor  experienced  approximated $126,000  in  costs.   He                                                                   
noted that  those figures  had been  made available  from the                                                                   
Public Services Research Institute  and were produced under a                                                                   
National Highway Traffic Safety  Administration partners with                                                                   
the  Progress Cooperative  Agreement.   The  figures are  for                                                                   
Alaska.                                                                                                                         
                                                                                                                                
Representative  Rokeberg  added  that the  legislation  would                                                                   
increase fines and jail time.  The bill would:                                                                                  
                                                                                                                                
     ·         Lower the blood alcohol content limit from                                                                       
               .10 to .08;                                                                                                      
     ·         Mandate treatment for prisoners;                                                                                 
     ·         Delete the five-year look-back provision                                                                         
               while phasing a ten-year look-back;                                                                              
     ·         Require immobilization or forfeiture of the                                                                      
               vehicle on the second offense;                                                                                   
     ·         Forfeiture on third and subsequent offenses;                                                                     
     ·         Require seizure of license plates;                                                                               
     ·         Increase fees, fines, and cost caps in                                                                           
               various areas of the law to enhance revenue                                                                      
               to offset associated costs.                                                                                      
                                                                                                                                
Representative  Rokeberg stated that  HB 4 contains  both the                                                                   
"stick" (punitive  revision of  law) in the House  Majority's                                                                   
alcohol  package  and  the  "carrot"   (flexibility  for  the                                                                   
judicial system to  in giving out sentences and  fines).  The                                                                   
bill   has  several   enhancements  for   the  treatment   of                                                                   
offenders.  Enactment of the legislation  would send a strong                                                                   
and clear  message to "Not Drink  and Drive".  He  noted that                                                                   
the fiscal  impact was significant  and urged support  of the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Representative  Davies  noted  that Section  8  would  change                                                                   
"intoxicated"  to  "under  the  influence  of".    He  voiced                                                                   
concern   that   language   could   create   a   "loop-hole".                                                                   
Representative  Rokeberg  explained  that  consideration  had                                                                   
been  made in  the House  Judiciary Committee.   He  believed                                                                   
that the  change was appropriate.   He acknowledged  that the                                                                   
net had been expanded.                                                                                                          
                                                                                                                                
Representative   Croft   asked   where  the   definition   of                                                                   
intoxicated  had  previously been  located.    Representative                                                                   
Rokeberg replied that it was placed in Section 28, Page 16.                                                                     
                                                                                                                                
Representative   Davies  stated   that  he   would  be   more                                                                   
comfortable with  a definitional clause being  included which                                                                   
would identify  "those  things".  He  reiterated his  concern                                                                   
with creating a specific list.                                                                                                  
                                                                                                                                
JANET SEITZ,  STAFF, REPRESENTATIVE NORMAN  ROKEBERG, pointed                                                                   
out that under  the current statute, a person  would commit a                                                                   
crime  listed in  current law  under  AS 28.35.03(a):  "While                                                                   
intoxicated if  they are operating while under  the influence                                                                   
of intoxicating  liquor  or any controlled  substance".   The                                                                   
expanded language would extend  it to "under the influence of                                                                   
an alcoholic beverage, inhalant  or controlled substance" and                                                                   
lowering the alcohol level to .08.                                                                                              
                                                                                                                                
Vice-Chair Bunde questioned that  in expanding the definition                                                                   
of  "driving while  under the  influence",  would any  person                                                                   
then, using  any alcohol at  all, be guilty.   Representative                                                                   
Rokeberg replied that the bill  establishes the blood alcohol                                                                   
content baseline.  Vice-Chair  Bunde voiced concern that even                                                                   
a  tablespoon  of  alcohol  would  enter  the  blood  stream.                                                                   
Representative  Rokeberg explained  that it  was a matter  of                                                                   
semantics.     Vice-Chair   Bunde  discussed   that  even   a                                                                   
responsible   drinker  could   be   "under  the   influence".                                                                   
Representative Rokeberg stated  that there would have to be a                                                                   
certain level present for that indication.                                                                                      
                                                                                                                                
Vice-Chair Bunde questioned if  there would be an increase of                                                                   
arrest   when  the   blood   alcohol  amount   was   changed.                                                                   
Representative  Rokeberg  responded that  there  could be  as                                                                   
much as  a 10%  increase.   He added  that the standards  for                                                                   
apprehension would  be provided and that there  would need to                                                                   
be "probable cause" for the pull  over.  He believed that the                                                                   
number  of  arrests would  be  lower  than projected  by  the                                                                   
Department  and  recommended  that the  Committee  adopt  the                                                                   
fiscal note which reflects only a 5% increase.                                                                                  
                                                                                                                                
Vice-Chair Bunde  agreed that  the public is concerned  about                                                                   
the serious crimes  associated with drunk driving.   If there                                                                   
was an increase  in drunk driving arrests, that  would result                                                                   
from  action  taken  by  the   Legislature.    Representative                                                                   
Rokeberg  pointed out  that the bill  would have  substantial                                                                   
impact to  current law.   Representative Rokeberg  reiterated                                                                   
the  reasons for  sponsoring the  proposed  legislation.   He                                                                   
argued that the bar was not being  lowered.  Vice-Chair Bunde                                                                   
responded that the  net was being widened, and  stressed that                                                                   
would not impact behavior.                                                                                                      
                                                                                                                                
Representative  Croft asked  the location  of the  impairment                                                                   
statute.   Ms. Seitz  replied that it  was housed  in Section                                                                   
49, Page 31.                                                                                                                    
                                                                                                                                
Representative  Croft  questioned  the  chemical  levels  for                                                                   
controlled substances.   He asked  if case law had  been well                                                                   
defined.   Representative Rokeberg  commented that  there are                                                                   
occasional cases in current statute.                                                                                            
                                                                                                                                
Vice-Chair  Bunde referenced  the  penalty phase.   He  asked                                                                   
about "probable cause" and impounding  of the vehicle at that                                                                   
time.   Representative Rokeberg  replied that there  would be                                                                   
no forfeiture until after the  court hearing.  For the public                                                                   
safety,  there would  be  an immediate  vehicle  impoundment.                                                                   
The  bill  provides  for  a seizure  of  the  license  plate.                                                                   
Within seven days,  there would have to be  an administrative                                                                   
hearing.    He  pointed  out   that  forfeiture  was  at  the                                                                   
discretion of the third offense.                                                                                                
                                                                                                                                
Vice-Chair  Bunde questioned  if forfeiture  would expand  to                                                                   
all  motorized  vehicles.   Representative  Rokeberg  replied                                                                   
that   the  bill   would  include   all  vehicles   including                                                                   
watercraft and airplanes.                                                                                                       
                                                                                                                                
Vice-Chair Bunde stated that he  supported taking the license                                                                   
plates  from  the cars.    He  maintained  that it  would  be                                                                   
difficult to know if a person  was driving without a license,                                                                   
however,  it is  more  visibly obvious  if  they are  driving                                                                   
without  a license  plate.   He questioned  the interim  step                                                                   
before conviction.   Representative  Rokeberg responded  that                                                                   
testimony had not been received regarding that issue yet.                                                                       
                                                                                                                                
Representative Lancaster asked  if controlled substance would                                                                   
include  prescription drugs  or  medication.   Representative                                                                   
Rokeberg replied that it would  not unless it was statutorily                                                                   
listed.    He added  that  if  a person  was  impaired  while                                                                   
driving because being under the  influence of any drug, would                                                                   
be  determined   by  the  police  officer.     Representative                                                                   
Lancaster discussed that under  current law, the person would                                                                   
have had to commit a crime before they were charged.                                                                            
                                                                                                                                
Representative Rokeberg suggested  that the Committee adopt a                                                                   
lower fiscal note.                                                                                                              
                                                                                                                                
Vice-Chair  Bunde MOVED  to  ADOPT Amendment  #1.   [Copy  on                                                                   
File].  Co-Chair Williams OBJECTED for discussion purposes.                                                                     
                                                                                                                                
Representative  Rokeberg explained  that the amendment  would                                                                   
change the  fiscal notes.   Representative Whitaker  asked if                                                                   
there was data available to back  up the fact that the change                                                                   
would   be   a   fair   reflection   of   the   true   costs.                                                                   
Representative  Rokeberg responded  that the amendment  would                                                                   
only be a reduction to the fiscal notes.                                                                                        
                                                                                                                                
Representative  Davies   voiced  concern  with   making  that                                                                   
change.   He  advised  that the  information  from which  the                                                                   
change was  based was  a simplistic  assumption.  He  pointed                                                                   
out that  other states  have indicated  that there  have been                                                                   
substantial  increases   in  arrests  and  fatalities.     He                                                                   
recommended that  the Committee  hear testimony from  each of                                                                   
the  departments  affected  by the  change.    Representative                                                                   
Rokeberg responded that his office  had looked into the crime                                                                   
thoroughly, advising that it would  be difficult to look into                                                                   
a one to one  comparison.  He referenced the  enclosed fiscal                                                                   
changes to the bill.                                                                                                            
                                                                                                                                
Representative  Davies  acknowledged  that the  change  would                                                                   
signal  a message  regarding drunk  driving  behavior to  the                                                                   
public.  Also, he pointed out  that this is the House Finance                                                                   
Committee and that  it is the place where the  fiscal impacts                                                                   
should be thoroughly discussed and determined.                                                                                  
                                                                                                                                
Representative   Croft  echoed   Representative  J.   Davies'                                                                   
concern  regarding  departmental   testimony  on  the  fiscal                                                                   
notes.  He asked, under the higher  standards, what would the                                                                   
proposed  changes be.   He  noted  that there  would be  more                                                                   
tests  in  lowering  the  standards.    Representative  Croft                                                                   
stressed  that if the  Legislature is  proposing the  change,                                                                   
the funding must accompany implementing it.                                                                                     
                                                                                                                                
Vice-Chair  Bunde suggested  that  the departments  would  do                                                                   
what needs  to be done if  the legislation is made  into law.                                                                   
He added  that the  note would  not keep  the changes  in law                                                                   
from going into  effect.  He added, then that  the department                                                                   
could request supplemental funding.                                                                                             
                                                                                                                                
ELMER  LINDSTROM,  SPECIAL  ASSISTANT  TO  THE  COMMISSIONER,                                                                   
DEPARTMENT OF  HEALTH AND SOCIAL  SERVICES, made  comments to                                                                   
the  fiscal note.   He  stressed  that it  was imperative  to                                                                   
consider the Memo  dated March 21, 2001, from  the Department                                                                   
to  Representative  Rokeberg   regarding  treatment  for  the                                                                   
proposed concerns.   He stressed  the wait listed  associated                                                                   
with  treatment.   He  noted that  no  one  on the  Committee                                                                   
should assume that  any given person convicted  of a Drinking                                                                   
While Intoxicated (DWI) charge,  might be able to participate                                                                   
in treatment, as it may not be  available.  There are waiting                                                                   
lists  throughout  the  State for  outpatient  treatment  and                                                                   
those waiting  lists greatly understate  the real  demand for                                                                   
treatment.   He stressed  that the  Department's fiscal  note                                                                   
number was conservative.                                                                                                        
                                                                                                                                
                                                                                                                                
TAPE HFC 01 - 104, Side B                                                                                                     
                                                                                                                              
                                                                                                                                
Mr. Lindstrom  stressed that Department of Health  and Social                                                                   
Services is seriously  struggling with the issue  of drug and                                                                   
alcohol funding at  this time.  He warned that  if HB 4 moves                                                                   
forward,  the  fiscal note,  which  has been  submitted  must                                                                   
accompany it.                                                                                                                   
                                                                                                                                
                                                                                                                                
Recess:         9:55 A.M.                                                                                                       
Reconvene:     10:55 A.M.                                                                                                       
                                                                                                                                
                                                                                                                                
Representative  Rokeberg indicated  that he  would work  with                                                                   
the departments in order to refine the fiscal concerns.                                                                         
                                                                                                                                
Vice-Chair  Bunde  MOVED to  WITHDRAW  Amendment  #1.   There                                                                   
being NO OBJECTION, it was withdrawn.                                                                                           
                                                                                                                                
Representative  Harris MOVED to  adopt Amendment #2,  Page 1,                                                                   
Lines 1-9.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
Representative Hudson  MOVED to report  CS HB 4 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB  4  (FIN)  was  reported   out  of  Committee  with  a                                                                   
"individual"  recommendations and with  fiscal notes  #5, #6,                                                                   
#11, and  #12 by the Department  of Health &  Social Services                                                                   
and note #16 by the Alaska Court  System and new fiscal notes                                                                   
by the  Department of Public  Safety, the Department  of Law,                                                                   
the  Department  of Corrections  and  two  new notes  by  the                                                                   
Department of Administration.                                                                                                   
                                                                                                                                
HOUSE BILL NO. 239                                                                                                            
                                                                                                                                
     An Act establishing a pilot program for a regional                                                                         
     learning center.                                                                                                           
                                                                                                                                
LARRY   LABOLLE,   STAFF,  REPRESENTATIVE   RICHARD   FOSTER,                                                                   
                      st                                                                                                        
explained that  the 21   Legislature through the  Legislative                                                                   
Budget and Audit Committee (LBA)  hearings, found indications                                                                   
of  broad support  for regional  learning  centers.   Several                                                                   
communities  have  expressed interest  in  creating  regional                                                                   
boarding programs  focused on the special interests  of their                                                                   
regions.                                                                                                                        
                                                                                                                                
He noted that the Bering Strait  School District and the Nome                                                                   
City School District  have been exploring the  feasibility of                                                                   
a cooperative  program that would  utilize the  existing Nome                                                                   
Beltz School complex to develop  and operate a pilot regional                                                                   
learning program.   Both these  districts have  taken actions                                                                   
to  support the  creation  of  a pilot  program  and to  seek                                                                   
federal  funding  to  help cover  program  planning  and  the                                                                   
initial operation costs.                                                                                                        
                                                                                                                                
Mr. LaBolle  pointed out  that a  conceptual overview  of the                                                                   
program was contained  in the March 20, 2001  letter from Dr.                                                                   
John  Davis,  Superintendent  of  the  Bering  Strait  School                                                                   
District.  [Copy  on File].  That letter helps  to define and                                                                   
support the concept proposed in the legislation.                                                                                
                                                                                                                                
Representative  Lancaster asked  if  the Department's  report                                                                   
would be available  to the Legislature.  Mr.  LaBolle replied                                                                   
that there  would be a report  available.  He added  that the                                                                   
program  was  accompanied by  a  sunset  clause in  order  to                                                                   
review  the  concept.    He  noted  that  the  districts  had                                                                   
consented  to  provide  a  third   party  evaluation  to  the                                                                   
Department and to the Legislature.                                                                                              
                                                                                                                                
Representative Davies asked if  the proposal would be similar                                                                   
to  the  boarding  school  concept as  Mt.  Edgecumbe.    Mr.                                                                   
LaBolle explained  that in the proposed program,  the student                                                                   
would  not be  leaving their  home village  for any  extended                                                                   
length of  time.  They would  be learning independent  living                                                                   
skills during  short periods of  time away from  their homes.                                                                   
These skills would help the student  with the transition from                                                                   
village life to larger community living.                                                                                        
                                                                                                                                
Representative  Davies  inquired the  time  frame, which  the                                                                   
student would be living in the  program.  Mr. LaBolle replied                                                                   
that the initial  program would look something  like what the                                                                   
Bering Strait School district  has been running but expanded.                                                                   
The legislation would  expand that program and  bring it into                                                                   
Nome, where there is a larger population.                                                                                       
                                                                                                                                
Representative J. Davies spoke in support of the program.                                                                       
                                                                                                                                
Representative  Foster   MOVED  to  report  HB   239  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
HB  239  was reported  out  of  Committee  with a  "do  pass"                                                                   
recommendation  and  with  a fiscal  note  by  Department  of                                                                   
Education & Early Development #1 dated 4/25/01.                                                                                 
                                                                                                                                
#HB198                                                                                                                        
HOUSE BILL NO. 198                                                                                                            
                                                                                                                                
     An Act relating to a post-retirement  pension adjustment                                                                   
     and  cost-of-living  allowance   for  persons  receiving                                                                   
     benefits  under the Elected  Public Officers  Retirement                                                                   
     System;   and  increasing   the   compensation  of   the                                                                   
     governor.                                                                                                                  
                                                                                                                                
REPRESENTATIVE BILL  HUDSON explained that the  proposed bill                                                                   
had resulted  from  an effort  to contain costs  on the  most                                                                   
extreme   cases   requiring   inequity   correction   between                                                                   
retirement  benefit  calculations   for  the  Elected  Public                                                                   
Officials  Retirement System  (EPORS)  and Public  Employees'                                                                   
Retirement System  (PERS) members.   A statistical  review of                                                                   
EPORS  retirees, or  their surviving  spouses, revealed  that                                                                   
many members have  or will be receiving a  benefit adjustment                                                                   
but  rather  from  changes  in  the  salaries  or  additional                                                                   
allowances in the position from which they retired.                                                                             
                                                                                                                                
The current language  concentrates on narrowing  the focus to                                                                   
members who have not had any cost  of living or other benefit                                                                   
adjustments  to  their  EPORS retirement  benefits,  as  have                                                                   
their peers who retired under the PERS retirement system.                                                                       
                                                                                                                                
Representative  Hudson stated  that  HB 198  is  a fair  bill                                                                   
designed to  equalize future benefits  only of the  few EPORS                                                                   
retirees and their  surviving spouses who have  not otherwise                                                                   
seen any change  in retirement received for  their service to                                                                   
the State of Alaska.                                                                                                            
                                                                                                                                
Vice-Chair  Bunde asked  how many  people  would be  involved                                                                   
with  passage  of the  legislation.    Representative  Hudson                                                                   
replied five  or less.   He reiterated  that the bill  was an                                                                   
issue of "fairness".                                                                                                            
                                                                                                                                
Vice-Chair  Bunde MOVED  to  ADOPT Amendment  #1.   [Copy  on                                                                   
File].  Representative Croft OBJECTED for an explanation.                                                                       
                                                                                                                                
Vice-Chair Bunde  explained that  the Division of  Retirement                                                                   
and  Benefits  had proposed  the  amendment.   The  amendment                                                                   
would limit the bill to the five people mentioned.                                                                              
                                                                                                                                
In  response  to  Representative  J.  Davies,  Representative                                                                   
Hudson  stated  that  there  are  only a  few  who  have  not                                                                   
received  an  increase  in  the last  years.    The  language                                                                   
provided in Amendment #1 is necessary  to isolate those five.                                                                   
There are approximately  twenty-two EPORS retirees  that have                                                                   
continued  their employment  with  the State.   Those  people                                                                   
have  been receiving  their annual  cost-of-living  increases                                                                   
under  the  programs.    The other  five  have  not  received                                                                   
anything for  fifteen years and  they would be  covered under                                                                   
this bill.                                                                                                                      
                                                                                                                                
Co-Chair  Mulder interjected  that the  legislation would  be                                                                   
restricted.  Representative Davies  commented that he did not                                                                   
want   it  to   be  restrictive   to   only  the   favorites.                                                                   
Representative Hudson  replied that some are  still under the                                                                   
EPORS system,  which has  been responsible  for those  costs.                                                                   
Initially, there were 35 and now there are five.                                                                                
                                                                                                                                
GUY  BELL, DIRECTOR,  DIVISION  OF RETIREMENT  AND  BENEFITS,                                                                   
DEPARTMENT  OF ADMINISTRATION,  explained that  the bill  was                                                                   
designed  to cover  those people  that have  not received  an                                                                   
increase for fifteen years.  Effectively,  there are only two                                                                   
people  in that  category.   The  retirement  and benefit  is                                                                   
based on  the salary of the  position that person  last held.                                                                   
Those  benefits have  been fixed.   All  other EPORS  members                                                                   
have received  some increase.   The increase is based  on the                                                                   
salary  and  other  compensation  of the  position  that  the                                                                   
person left.                                                                                                                    
                                                                                                                                
Representative Croft commented  that it rest on the fact that                                                                   
the  Governor's salary  had not  been  increased since  1983.                                                                   
The legislation  would provide  a retirement benefit  roughly                                                                   
equal to what Governor Hammond  would have received if he had                                                                   
gone on to another system or his salary was raised.                                                                             
                                                                                                                                
Mr. Bell  replied that  the legislation  would provide  a 75%                                                                   
change in the  Consumer Price Index (CPI) since  that benefit                                                                   
was  last changed  in 1983.    The original  bill raised  the                                                                   
Governor's  salary, which  would  have effectively  increased                                                                   
the benefit,  however, that section  was dropped.   He added,                                                                   
Section 2  of the  bill guarantees that  there is  no "double                                                                   
dipping".                                                                                                                       
                                                                                                                                
Representative Croft inquired  the situation of the other 25-                                                                   
30 people  that are  on a  similar track.   Mr. Bell  replied                                                                   
that the  general theory behind  EPORS was that  overtime and                                                                   
salaries would increase.   He noted that system  was based on                                                                   
the  judicial retirement  system,  which  is effectively  the                                                                   
same.  The  way that it  works is that a  person's retirement                                                                   
benefit is based on current salary  of the position that they                                                                   
vacated.   For the EPORS members  that has been  more erratic                                                                   
and  for  some,  non-existent.   He  added  that  legislative                                                                   
salaries have increased.                                                                                                        
                                                                                                                                
Mr.  Bell  explained  that  there   was  a  challenge  ballot                                                                   
measure, which was disapproved.   There was an option to stay                                                                   
in.    Some  of those  people have  not yet  retired and  the                                                                   
remainder   are   drawing  benefits   for   public   service.                                                                   
Discussion  followed  between  Representative Croft  and  Mr.                                                                   
Bell  regarding  the  history   of  the  Judicial  Retirement                                                                   
statute.                                                                                                                        
                                                                                                                                
Vice-Chair  Bunde clarified  that  the amendment  would  only                                                                   
effect  retired persons  under the  EPORS system.   Mr.  Bell                                                                   
interjected that  the person would  have had to  been retired                                                                   
for  at least  15 years.   Representative  Hudson  emphasized                                                                   
that the bill  would provide equal treatment  for the retiree                                                                   
and would bring those few people up to "speed".                                                                                 
                                                                                                                                
Representative  Davies  asked   if  the  amendment  would  be                                                                   
excluding anyone.   Mr. Bell  stated that the  Department was                                                                   
comfortable  with  the  amendment  because  excluded  persons                                                                   
would be eligible  for an increased amount at  a future date.                                                                   
He reiterated that  there would a benefit at  sometime in the                                                                   
future.                                                                                                                         
                                                                                                                                
There being NO OBJECTION, Amendment #1 was adopted.                                                                             
                                                                                                                                
Representative  Croft  MOVED a  conceptual  amendment to  the                                                                   
bill.  He  stated that the root  of the problem was  that the                                                                   
Governor's  salary had  not been increased  in twenty  years.                                                                   
He suggested that  the language indicate that  the Governor's                                                                   
salary be  $100,000 dollars, effective  with the  swearing in                                                                   
of the next Governor.                                                                                                           
                                                                                                                                
Representative Hudson  OBJECTED.  He commented  that the bill                                                                   
simply was trying  to make parity and pointed  out that there                                                                   
is a salary bill to address other concerns.                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Croft, Davies, Moses                                                                                             
OPPOSED:       Foster, Harris, Hudson, Lancaster, Whitaker,                                                                     
               Bunde, Mulder, Williams                                                                                          
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Hudson MOVED to  report CS HB 198 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  Representative  Whitaker OBJECTED                                                                   
for further discussion.                                                                                                         
                                                                                                                                
Representative Whitaker voiced  concern if equality was being                                                                   
created with passage of the legislation.   Mr. Bell responded                                                                   
that   the    system   had   been   classified    as   EPORS.                                                                   
Representative Whitaker  asked if the three  persons who made                                                                   
the  decision to  stay, had  been placed  into that  category                                                                   
with the  option to  "opt out".   Mr. Bell acknowledged  that                                                                   
was  correct.   Representative  Whitaker  indicated  that  he                                                                   
maintained his objection.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Davies, Foster, Harris, Hudson, Lancaster,                                                                       
               Moses, Bunde, Williams, Mulder                                                                                   
OPPOSED:       Whitaker, Croft                                                                                                  
                                                                                                                                
The MOTION PASSED (9-2).                                                                                                        
                                                                                                                                
CS  HB  198   (FIN)  was  reported  out  of   Committee  with                                                                   
"individual"  recommendations  and  with  a  fiscal  note  by                                                                   
Department  of Administration  #1  dated 4/16/01  and a  zero                                                                   
fiscal note #2 by the Office of the Governor dated 4/16/01.                                                                     
                                                                                                                                
#HB53                                                                                                                         
HOUSE BILL NO. 53                                                                                                             
                                                                                                                                
     An Act establishing the Alaska Seismic Hazards Safety                                                                      
     Commission.                                                                                                                
                                                                                                                                
REPRESENTATIVE JOHN DAVIES explained  that HB 53 would create                                                                   
a Seismic  Hazards Safety commission.   The Commission  would                                                                   
be  situated in  the  Governor's  office.   The  Commissioner                                                                   
would be established  to address pressing needs  in providing                                                                   
a  consistent  policy  framework  and  a  means  for  ongoing                                                                   
coordination of programs and public  safety practices related                                                                   
to seismic  hazards.  Current  needs are not  being addressed                                                                   
by any  state government  organization.   The seismic  Hazard                                                                   
Safety Commission  would encourage long-term  progress toward                                                                   
mitigating the effects of earthquakes.                                                                                          
                                                                                                                                
                                                                                                                                
TAPE HFC 01 - 105, Side A                                                                                                     
                                                                                                                                
                                                                                                                                
Representative  J. Davies  emphasized  that  there should  be                                                                   
people  within the  State focusing  on  building code  needs,                                                                   
which are cost effective.                                                                                                       
                                                                                                                                
Members of the commission would  be appointed by the Governor                                                                   
to represent  the University, various governmental  agencies,                                                                   
as well  as members  of the public  who are knowledgeable  in                                                                   
earthquake   hazard  mitigation.      The  Commission   would                                                                   
recommend  to the public  and governmental  sector goals  and                                                                   
priorities for  reducing earthquake  effects.  The  authority                                                                   
and responsibility  of other various state  agencies, boards,                                                                   
councils, commissions  and/or local governments  would not be                                                                   
intended  to be  transferred to  the  Alaska Seismic  Hazards                                                                   
Safety Commission.                                                                                                              
                                                                                                                                
Co-Chair Williams  pointed out that  last year, the  bill had                                                                   
passed  through  the  House  and  made  it  to  Senate  Rules                                                                   
Committee.                                                                                                                      
                                                                                                                                
Representative Davies MOVED to  report HB 53 out of Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal note.  There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
HB  53  was  reported  out of  Committee  with  a  "do  pass"                                                                   
recommendation  and with a  fiscal note  #1 by Department  of                                                                   
Natural Resources dated 3/30/01.                                                                                                
                                                                                                                                
HOUSE BILL NO. 43                                                                                                             
                                                                                                                                
     An Act relating to reimbursement of certain student                                                                        
     loans; and providing for an effective date.                                                                                
                                                                                                                                
REPRESENTATIVE  JOE GREEN commented  that Alaska is  facing a                                                                   
serious  shortage of  qualified  teachers in  both rural  and                                                                   
urban areas.   The shortage affects the quality  of education                                                                   
for our  young people and  jeopardizes their ability  to meet                                                                   
the challenges that lay ahead.                                                                                                  
                                                                                                                                
Representative Green  declared that the proposed  legislation                                                                   
would   be  a  method   to  attract   and  retain   education                                                                   
professionals.     In   addition   to  attracting   qualified                                                                   
teachers, it  would provide an  incentive for  individuals to                                                                   
attend a  college or university  located within the  State of                                                                   
Alaska.                                                                                                                         
                                                                                                                                
To  be eligible  for the  forgiveness  program an  individual                                                                   
would have had to:                                                                                                              
                                                                                                                                
     ·         Have completed 60 credit hours;                                                                                  
     ·         Obtain a degree or take coursework towards a                                                                     
               teaching certificate or endorsement from an                                                                      
              in-state college or university;                                                                                   
     ·         Be employed in the teaching profession at a                                                                      
               public elementary or secondary school;                                                                           
     ·         Teach in a geographical area where there is a                                                                    
               shortage or in a subject matter that is                                                                          
               undeserved.                                                                                                      
                                                                                                                                
The amount  forgiven would  be up to  100% on any  loan taken                                                                   
after the  individual  had accumulated  the 60 credit  hours.                                                                   
He  summarized  that  passage  of the  bill  would  ease  the                                                                   
financial  burden  of  post-secondary   education,  aide  the                                                                   
recruitment  efforts for  teachers  by making  Alaska a  more                                                                   
desirable place  for teachers to  stay and earn a  living and                                                                   
it would  make significant strides  in relieving  the current                                                                   
teacher shortage in Alaska.                                                                                                     
                                                                                                                                
Representative  Lancaster  questioned the  fiscal  indication                                                                   
for FY2001.   Representative Green explained  that his office                                                                   
had nothing to do with that.                                                                                                    
                                                                                                                                
Representative  Croft referenced the  fiscal note.   He asked                                                                   
if only students who had gotten  their degree from an Alaskan                                                                   
University,   had  been  captured.     Representative   Green                                                                   
explained that  HB 43 does  not require  a prior degree.   He                                                                   
pointed out that  there was a representative  from the Alaska                                                                   
Student Loan Program who could better answer that question.                                                                     
                                                                                                                                
Representative  Hudson  inquired  if  the  legislation  would                                                                   
bring more  Alaskans back  to the State  in lieu  of offering                                                                   
other   recruitment   attractions.     Representative   Green                                                                   
believed that  it would.   He suggested that  the legislation                                                                   
was an  additional application  in how to  get Alaska  out of                                                                   
the  current teaching  dilemma.    He acknowledged  that  the                                                                   
program was experimental.   The program would  help the State                                                                   
to focus  on teaching,  nursing and  the engineering  fields.                                                                   
All those fields  are in great need of further  incentive for                                                                   
the State of Alaska.                                                                                                            
                                                                                                                                
HB 43 was HELD in Committee for further consideration.                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 11:05 A.M.                                                                                         
                                                                                                                                
                                                                                                                                

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