Legislature(2005 - 2006)

04/12/2005 03:10 PM House FIN


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                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 12, 2005                                                                                           
                         3:10 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 3:10:56 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Eric Croft                                                                                                       
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Mike Kelly                                                                                                       
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Lesil  McGuire, Sponsor;  Representative  Jay                                                                   
Ramras;  Dick Mylius,  Deputy  Director,  Division of  Mining                                                                   
Land  and  Water,  Department   of  Natural  Resources;  Pete                                                                   
Kelly,  Director,  State  Relations,  University  of  Alaska;                                                                   
Moira Smith,  Staff, Representative Woodie  Salmon; Stephanie                                                                   
Birch, Section  Chief, Women's, Children's and  Family Health                                                                   
Care  Services,  Division  of Public  Health,  Department  of                                                                   
Health   &    Social   Services;    Jane   Pierson,    Staff,                                                                   
Representative Jay Ramras                                                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dr.  Don Rogers,  Anchorage;  Officer Mike  Couturier,  Vice-                                                                   
President,    Anchorage    Police     Department    Employees                                                                   
Association, Anchorage                                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 54     An Act relating to bail review.                                                                                       
                                                                                                                                
          HB 54 was POSTPONED.                                                                                                  
                                                                                                                                
HB 109    An  Act  relating  to   establishing  a  screening,                                                                   
          tracking,  and intervention program related  to the                                                                   
          hearing ability of newborns  and infants; providing                                                                   
          an  exemption to  licensure as  an audiologist  for                                                                   
          certain   persons  performing   hearing   screening                                                                   
          tests; relating  to insurance coverage  for newborn                                                                   
          and infant hearing screening;  and providing for an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS HB 109 (FIN) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with a  new fiscal                                                                   
          note   by  the  Department   of  Health   &  Social                                                                   
          Services,   a  new   indeterminate   note  by   the                                                                   
          Department  of Education & Early Development  and a                                                                   
          new  zero  note  by  the  Department  of  Commerce,                                                                   
          Community & Economic Development.                                                                                     
                                                                                                                                
HB 130    An   Act  granting  certain   state  land   to  the                                                                   
          University   of   Alaska   and   establishing   the                                                                   
          university  research forest;  and providing  for an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS HB 130 (FIN) was reported out of Committee with                                                                    
          a  "no recommendation".  a House Finance  Committee                                                                   
          Letter  of Intent, zero  note #1 by  the Department                                                                   
          of Fish  & Game, fiscal  note #2 by  the Department                                                                   
          of  Law,  fiscal  note  #3  by  the  Department  of                                                                   
          Natural  Resources   and  fiscal  note  #4  by  the                                                                   
          University of Alaska.                                                                                                 
                                                                                                                                
HB 210    An  Act  relating  to   blood  testing  of  certain                                                                   
          persons alleged to have  committed certain offenses                                                                   
          directed   toward  peace   officers  or   emergency                                                                   
          workers.                                                                                                              
                                                                                                                                
          CS HB 210 (JUD) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with zero  note #1                                                                   
          by  the Alaska Court  System, zero  note #2  by the                                                                   
          Department  of  Corrections, zero  note  #3 by  the                                                                   
          Department   of  Law  and  zero  note   #4  by  the                                                                   
          Department of Public Safety.                                                                                          
                                                                                                                                
HB 225    An  Act relating to  medical examiners  and medical                                                                   
          death examinations.                                                                                                   
                                                                                                                                
          HB 225 was reported out of Committee with a "no                                                                       
          recommendation"  and  with  zero  note  #1  by  the                                                                   
          Department of Health & Social Services.                                                                               
                                                                                                                                
3:11:37 PM                                                                                                                    
HOUSE BILL NO. 130                                                                                                            
                                                                                                                                
     An Act granting certain state land to the University of                                                                    
     Alaska and establishing the university research forest;                                                                    
     and providing for an effective date.                                                                                       
                                                                                                                                
Co-Chair  Chenault MOVED  to ADOPT  work draft  #24-GH1034\X,                                                                   
Bullock, 4/12/05,  as the version  of the legislation  before                                                                   
the Committee.  There being NO OBJECTION, it was adopted.                                                                       
                                                                                                                                
Representative  Weyhrauch  explained  the  changes,  deleting                                                                   
Page 6,  Lines 12-18; deleting  Page 6, Lines 25-26;  Page 7,                                                                   
Line 5, deleting  "shall"; Page 7, Line 6,  deleting material                                                                   
after (1)  and inserting "shall";  Page 7, Line 7,  after (2)                                                                   
inserting "may".                                                                                                                
                                                                                                                                
3:15:51 PM                                                                                                                    
                                                                                                                                
He  indicated that  the Native  allotment  language had  been                                                                   
added  back  and  the  lands   conveyed  are  included  under                                                                   
Subsection (e), which simplified the bill.                                                                                      
                                                                                                                                
Representative Weyrauch noted  that initial testimony related                                                                   
to  the 250,000  acres  in the  bill.   The  draft  committee                                                                   
substitute   identifies   specific    parcels   outlined   in                                                                   
Subsections  N & O  on Pages 5  & 6.   Those sections  remove                                                                   
parcels based on that information.                                                                                              
                                                                                                                                
In  adopting the  committee substitute,  it  became a  public                                                                   
policy   call  that   the   University   receives  land   for                                                                   
development,  promotes private  investment and increases  the                                                                   
tax base  of the State.   All those things must  overlay with                                                                   
concerns  regarding quick  development  and  insure that  the                                                                   
communities that  have lands adjacent  can get the  lands for                                                                   
borough  formation.   Subsection  N identifies  parcels  that                                                                   
would be  deleted from  University lands  while Subsection  O                                                                   
addresses if a borough forms.   The language provides a four-                                                                   
year opportunity for specifically  Wrangell and Petersburg so                                                                   
they can move forward in forming boroughs.                                                                                      
                                                                                                                                
3:19:07 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  informed  members that  there  are                                                                   
more requests for exclusion of certain lands.                                                                                   
                                                                                                                                
3:20:29 PM                                                                                                                    
                                                                                                                                
Representative  Weyrauch   addressed  language  on   Page  7,                                                                   
Subsection  C, before the  Board of  Regents offers  a parcel                                                                   
for sale,  they "shall" offer  the right of first  refusal to                                                                   
the municipality.   That language  encourages and  allows the                                                                   
Board  of  Regent to  give  the  first  right of  refusal  to                                                                   
develop land  for municipal  purposes.   The second  thing it                                                                   
does  is offer  the  second right  of  refusal to  non-profit                                                                   
organizations  to develop  the land  for purposes  consistent                                                                   
for historic uses.  That would  be a discretionary offer.  In                                                                   
the Committee's Letter  of Intent, it does not  indicate that                                                                   
the   University  should   convey   land   to  a   non-profit                                                                   
corporation   for   conservation   uses   or   non-productive                                                                   
purposes.    He   noted  he  had  worked  closely   with  the                                                                   
University of Alaska on that language.                                                                                          
                                                                                                                                
3:22:33 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  addressed  the Letter  of  Intent,                                                                   
which indicates  that  land, conveyed  for the Coldfoot  node                                                                   
area  would not  be used  for businesses  that would  compete                                                                   
with other  business already  there.   He explained  why that                                                                   
language had  been included in  the Letter of Intent  and not                                                                   
in  the  body  of  the  bill.    The  Department  of  Natural                                                                   
Resources  and  the  University  of Alaska  are  working  out                                                                   
arrangements for the provision.                                                                                                 
                                                                                                                                
Representative  Weyrauch  advised  that  Sections #1  and  #2                                                                   
inserted in  the House Resources  Committee had  been deleted                                                                   
in the proposed committee substitute.                                                                                           
                                                                                                                                
3:24:32 PM                                                                                                                    
                                                                                                                                
DICK MYLIUS,  DEPUTY DIRECTOR,  DIVISION  OF MINING LAND  AND                                                                   
WATER,  DEPARTMENT  OF  NATURAL RESOURCES,  stated  that  the                                                                   
Department  is   "generally  satisfied"  with   the  changes,                                                                   
however, he  had not  yet seen  the committee substitute  nor                                                                   
the Letter of Intent.                                                                                                           
                                                                                                                                
Representative  Croft  questioned   making  the  change  from                                                                   
"shall"  to  "may".    Representative   Weyhrauch  referenced                                                                   
Subsection C, Page 7, explaining that language was:                                                                             
                                                                                                                                
   ·    When the University receives the lands from the                                                                         
        Department of Natural Resources and they decide to                                                                      
        dispense of them, they must offer the first right of                                                                    
        refusal to the closest municipality; and                                                                                
   ·    They may offer the second right of refusal to a non-                                                                    
        profit organization.                                                                                                    
                                                                                                                                
Representative  Weyrauch   continued,  Version  X   does  not                                                                   
include all lands that Wrangell and Petersburg want.                                                                            
                                                                                                                                
3:29:20 PM                                                                                                                    
                                                                                                                                
Representative  Croft pointed out  that the old  version used                                                                   
"shall".   Representative  Weyhrauch  explained that  "shall"                                                                   
was  used in  the version  to which  statewide testimony  had                                                                   
                      th                                                                                                        
been taken  on April 9.    He noted  that "may"  had replaced                                                                   
"shall" in the  version before the Committee  as requested by                                                                   
the University.                                                                                                                 
                                                                                                                                
3:30:11 PM                                                                                                                    
                                                                                                                                
PETE KELLY, DIRECTOR, STATE RELATIONS,  UNIVERSITY OF ALASKA,                                                                   
commented   that   the   changes   seemed   consistent   with                                                                   
conversations    between   Representative    Weyrauch,    the                                                                   
University  and  the Department  of  Natural  Resources.   He                                                                   
pointed out  concern on Page 2,  regarding the duties  of the                                                                   
Board as  the new  language represents  a departure  from the                                                                   
rules for  that board.  He  thought that it would  direct the                                                                   
resources  from the  University's  budget  in statute  rather                                                                   
than through an appropriations bill.                                                                                            
                                                                                                                                
Representative  Weyhrauch responded  that the  duties of  the                                                                   
University's  Board   of  Regents  could  insure   that  they                                                                   
adequately  fund  the  Cooperative Extension  Service.    The                                                                   
University  "shall"  hire  any  vacant  position  within  the                                                                   
Cooperative  Extension  Service  within 90-days  of  vacancy.                                                                   
That  language  was  removed because  of  concerns  from  the                                                                   
University.  However,  the duties of the Board  of Regents to                                                                   
insure that the Cooperative Extension  Service is staffed are                                                                   
broader language and became the compromise.                                                                                     
                                                                                                                                
Representative Weyrauch believed  that the entire "notion" of                                                                   
the  University  lands  bill would  generate  income  to  the                                                                   
University  of Alaska.   That  is integrative  to the  public                                                                   
support  of the  University  and the  public's  support of  a                                                                   
strong and  healthy University system.   He thought  that one                                                                   
of  the best  ways  would be  to  work with  the  Cooperative                                                                   
Extension Service.                                                                                                              
                                                                                                                                
3:33:57 PM                                                                                                                    
                                                                                                                                
Mr. Kelly  interjected that the  Board of Regents  duties are                                                                   
very broad;  they do not get  into the hiring  of chancellors                                                                   
or vice presidents,  however, the proposed  version regulates                                                                   
that  the  Board  of  Regents   "shall"  attend  to  specific                                                                   
staffing of  a low level position.   That would  be directing                                                                   
appropriations, which  is a far  departure for the  duties of                                                                   
the Board of Regents.                                                                                                           
                                                                                                                                
3:34:58 PM                                                                                                                    
                                                                                                                                
Representative  Croft  asked  the  relationship  between  the                                                                   
Cooperative  Extension  Service  and the  management  of  the                                                                   
proposed  lands.   Representative  Weyhrauch emphasized  that                                                                   
the lands  are connected  to the  people and  the people  use                                                                   
those lands.                                                                                                                    
                                                                                                                                
3:36:12 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer asked if the University  was willing to accept                                                                   
that "fit".   Mr. Kelly replied that the University  does not                                                                   
accept the language.   He stressed that this is  a lands bill                                                                   
and that  the proposed  language could  fit under the  title.                                                                   
He reiterated that inclusion of  that language would make the                                                                   
bill address  duties for  the Board of  Regents.  There  is a                                                                   
far distance  between the general  duties of the  Legislature                                                                   
and the specific duties for such a low level position.                                                                          
                                                                                                                                
3:36:58 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze appreciated the proposed language.                                                                           
                                                                                                                                
Co-Chair Meyer stated  the language would remain  in the bill                                                                   
and if a Committee  member wanted to make an  amendment, they                                                                   
could.                                                                                                                          
                                                                                                                                
3:37:44 PM                                                                                                                    
                                                                                                                                
Representative  Moses  MOVED  to  ADOPT  Amendment  #1,  #24-                                                                   
GH1034\F.4, Bullock, 4/8/05.   Vice-Chair Stoltze OBJECTED.                                                                     
                                                                                                                                
MOIRA SMITH,  STAFF, REPRESENTATIVE WOODIE  SALMON, explained                                                                   
the  amendment,  which  takes  into  consideration  testimony                                                                   
received from residents in and  around McCarthy regarding the                                                                   
land  in  that  area  intended   to  be  transferred  to  the                                                                   
University  of Alaska.   The  residents are  opposed to  that                                                                   
land being included.                                                                                                            
                                                                                                                                
Co-Chair  Chenault  inquired  what that  area  currently  was                                                                   
being  used  for.    Ms. Smith  responded  that  it  is  used                                                                   
primarily for  gravel and wood.   Currently, those  residents                                                                   
apply for  permits from the  Department of Natural  Resources                                                                   
to extract gravel and take wood.   Co-Chair Chenault inquired                                                                   
if the  residents tend  to own  their own  lands.  Ms.  Smith                                                                   
believed that many of them do.   She noted that the amendment                                                                   
would add a new parcel to the list.                                                                                             
                                                                                                                                
Mr.  Mylius  interjected that  the  bill  must come  up  with                                                                   
250,000 acres in  order to make the requested  amount for the                                                                   
University.  The  McCarthy parcel that is being  requested is                                                                   
12,500  acres.   He  stated that  the  Department of  Natural                                                                   
Resources was opposed to the amendment.                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Croft, Foster, Moses                                                                                             
OPPOSED:       Hawker, Holm, Kelly, Stoltze, Weyhrauch,                                                                         
               Chenault, Meyer                                                                                                  
                                                                                                                                
Representative Joule was not present for the vote.                                                                              
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
3:42:22 PM                                                                                                                    
                                                                                                                                
Representative  Croft  clarified  the  changes  necessary  to                                                                   
Amendment  #2 in order  that it  fit the  version before  the                                                                   
Committee.                                                                                                                      
                                                                                                                                
3:43:31 PM                                                                                                                    
                                                                                                                                
Representative  Croft  MOVED  to  ADOPT  Amendment  #2,  #24-                                                                   
HB1034\L.2, Bullock, 4/12/05.  Vice Chair Stoltze OBJECTED.                                                                     
                                                                                                                                
Representative Croft  stated that Amendment #2  would provide                                                                   
a change in  direction for the legislation.   He acknowledged                                                                   
that if the lands were in the  University's hands, they would                                                                   
be  more aggressive  in their  management.   When  addressing                                                                   
State lands  that have not been  developed to the  support of                                                                   
the  people  of   Alaska,  is  not  okay.     By  giving  the                                                                   
University,  Point  Thomson,  the University  might  be  more                                                                   
successful   in  getting   the  value   from  that   resource                                                                   
production.   He declared there  was no better  potential the                                                                   
State could offer.                                                                                                              
                                                                                                                                
Representative Croft  pointed out that the amount  of funding                                                                   
needed  by the  University  is  substantial at  $225  million                                                                   
dollars a year.   Let the University do the  development that                                                                   
has so far eluded  the State.  If the State  develops it, the                                                                   
University could  continue the  arrangement and  in addition,                                                                   
25%  of  the remainder  would  go  into  a  trust fund.    He                                                                   
acknowledged   that  the   amendment   was  aggressive,   but                                                                   
suggested  what  is needed  is  "real development  with  real                                                                   
resources".                                                                                                                     
                                                                                                                                
3:48:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  pointed out that the amendment  would totally                                                                   
change  the direction  of the  bill.   He  asked the  State's                                                                   
share  of Pt.  Thomson.   Representative  Croft replied  that                                                                   
they would own  the land.  The University is  a State entity.                                                                   
The  Legislature  can  transfer State  lands  or  sub-surface                                                                   
rights between the pockets of State government entities.                                                                        
                                                                                                                                
Co-Chair Meyer recalled  that the area is Exxon's  gas field.                                                                   
Representative  Croft advised that  the State of  Alaska owns                                                                   
the land and it is leased out.                                                                                                  
                                                                                                                                
Representative Holm questioned  if it is possible to transfer                                                                   
the sub-surface rights.                                                                                                         
                                                                                                                                
3:50:26 PM                                                                                                                    
                                                                                                                                
Mr.  Mylius responded  that the  Legislature  could do  that.                                                                   
The prohibition  of transferring the mineral,  oil and/or gas                                                                   
rights  is somewhat  restricting  and that  it  could not  be                                                                   
transferred  to  an  out  of  State  ownership.    Since  the                                                                   
University is  an entity  of the State,  legally it  could be                                                                   
done; however,  he clarified that  the Department  of Natural                                                                   
Resources does not support the amendment.                                                                                       
                                                                                                                                
Representative  Kelly  thought  that the  proposed  amendment                                                                   
would destroy the bill.                                                                                                         
                                                                                                                                
Representative  Weyhrauch hoped  that the  State could  endow                                                                   
the University with income producing  properties to help make                                                                   
it  a  wealthy  institution  so  that it  could  do  all  the                                                                   
necessary  research  programs.    He  aspired to  that.    He                                                                   
thought that the amendment sometime  could provide that seed;                                                                   
however, said it  would be better in another  bill at another                                                                   
time.   He  indicated  that he  would  support pursuing  that                                                                   
idea.                                                                                                                           
                                                                                                                                
Co-Chair Meyer agreed.                                                                                                          
                                                                                                                                
3:53:39 PM                                                                                                                    
                                                                                                                                
Representative  Croft  distributed  a handout:  "The  15-year                                                                   
Forecast  of Point Thomson  Unit Royalty  Revenues"  from the                                                                   
Department  of  Natural  Resources  projections.    (Copy  on                                                                   
File).   He  disagreed that  Amendment  #2 would  be a  major                                                                   
shift of  direction for  the bill.   If the University  could                                                                   
get that land,  it could be more aggressive.   There could be                                                                   
$1.2  billion dollars  in  that trust  fund;  nothing in  the                                                                   
proposed  bill could  come close  to that amount.   He  urged                                                                   
reconsideration of the amendment.                                                                                               
                                                                                                                                
Representative Croft pointed out  how the University of Texas                                                                   
had  obtained  their  wealth from  sub-surface  rights.    He                                                                   
thought  that the  amendment  encourages  an alternative  and                                                                   
that the  core title  of the  bill would  continue to  be the                                                                   
same.   The Senate  could place other  parcels back  into the                                                                   
bill.                                                                                                                           
                                                                                                                                
Representative Croft referenced  the suggestion of creating a                                                                   
new bill  including the concept  and questioned why  do that.                                                                   
Since  the  University  needs   substantial  funding  and  if                                                                   
development is  important, then the University  would be more                                                                   
aggressive  getting  it  done.     The  amendment  should  be                                                                   
adopted.    He  commented  that  the  amendment  provides  an                                                                   
opportunity to do the largest  land grant for the University.                                                                   
He urged that  the Legislature "put their money  where mouths                                                                   
are".                                                                                                                           
                                                                                                                                
3:58:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  understood that the bill  was a companion                                                                   
to federal legislation and asked  how it could merge with the                                                                   
federal proposal.   Representative Croft replied  that he had                                                                   
spoken with  the Department of  Natural Resources and  if the                                                                   
State  gives  250,000  acres, the  federal  government  would                                                                   
match that.  If the State put  up the Point Thomson land that                                                                   
would not qualify under that bill;  however, if the State did                                                                   
put  up  Point Thomson,  it  would  be  known that  land  had                                                                   
greater potential then the other.   He did not think it would                                                                   
be  an impediment,  but  would  indicate  that the  State  of                                                                   
Alaska  was doing  a significant  amount to  provide land  at                                                                   
that value.                                                                                                                     
                                                                                                                                
4:00:38 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Moses, Croft                                                                                                     
OPPOSED:       Foster,    Hawker,   Holm,   Kelly,    Stolze,                                                                   
               Weyhrauch, Meyer, Chenault                                                                                       
                                                                                                                                
Representative Joule was not present for the vote                                                                               
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
4:01:42 PM                                                                                                                    
                                                                                                                                
Representative  Foster MOVED  to DELETE  language on  Page 2,                                                                   
Lines  24-25:   "ensure  that  the  University   of  Alaska's                                                                   
Cooperative Extension  Service is adequately staffed  to meet                                                                   
the needs of the public".  Vice-Chair Stoltze OBJECTED.                                                                         
                                                                                                                                
Representative  Weyhrauch explained that  the purpose  of the                                                                   
bill  is to  deal with  land and  resources in  the State  of                                                                   
Alaska.   The  Board of  Regents  is in  charge of  governing                                                                   
those  lands.     The agency  between  public  lands and  the                                                                   
University is  the Cooperative  Extension Service.   He urged                                                                   
inclusion of  that language.   Vice-Chair Stoltze  added that                                                                   
the  language was  a good  way  to remind  the University  of                                                                   
their obligation to public lands.                                                                                               
                                                                                                                                
4:03:53 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Kelly, Croft, Foster, Chenault, Meyer                                                                            
OPPOSED:       Hawker, Holm, Moses, Stoltze, Weyhrauch                                                                          
                                                                                                                                
Representative Joule was not present for the vote                                                                               
                                                                                                                                
The MOTION FAILED (5-5).                                                                                                        
                                                                                                                                
4:05:17 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch  pointed out that the  Committee had                                                                   
received much  attention regarding  inclusion of  Thoms Place                                                                   
near Wrangell.                                                                                                                  
                                                                                                                                
4:05:52 PM                                                                                                                    
                                                                                                                                
Representative Foster MOVED to  report CS HB 130 (FIN) out of                                                                   
Committee,  the House  Finance  Committee  Letter of  Intent,                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
notes.  There being NO OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CS HB  130 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation", a House Finance  Committee Letter of Intent,                                                                   
a zero note #1 by the Department  of Fish & Game, fiscal note                                                                   
#2  by  the  Department  of  Law,   fiscal  note  #3  by  the                                                                   
Department  of Natural Resources  and fiscal  note #4  by the                                                                   
University of Alaska.                                                                                                           
                                                                                                                                
                                                                                                                                
AT EASE:       4:06:41 PM                                                                                                     
RECONVENE:     4:13:09 PM                                                                                                     
                                                                                                                                
HOUSE BILL NO. 109                                                                                                            
                                                                                                                                
     An Act  relating to establishing a  screening, tracking,                                                                   
     and intervention program  related to the hearing ability                                                                   
     of  newborns  and  infants; providing  an  exemption  to                                                                   
     licensure   as  an  audiologist   for  certain   persons                                                                   
     performing   hearing   screening  tests;   relating   to                                                                   
     insurance  coverage  for   newborn  and  infant  hearing                                                                   
     screening; and providing for an effective date.                                                                            
                                                                                                                                
4:14:12 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer inquired  about  the Department  of Health  &                                                                   
Social Services fiscal note.                                                                                                    
                                                                                                                                
STEPHANIE  BIRCH,  SECTION  CHIEF,  WOMEN'S,  CHILDREN'S  AND                                                                   
FAMILY  HEALTH  CARE  SERVICES, DIVISION  OF  PUBLIC  HEALTH,                                                                   
DEPARTMENT OF  HEALTH & SOCIAL  SERVICES, explained  that the                                                                   
finance  portion of  the  bill  would change  in  2008.   The                                                                   
Division has been successful in  the last four years by being                                                                   
awarded  two federal  grants;  however, the  second grant  is                                                                   
scheduled to expire in 2008.   The half time positions funded                                                                   
uses federal  grant  money and  would be lost.   The  program                                                                   
manager runs the  program that tracks all newborns,  which is                                                                   
mandated by the State.                                                                                                          
                                                                                                                                
Co-Chair Meyer  referenced Page  2 of the  fiscal note.   Ms.                                                                   
Birch clarified  where those  funds would  pay for  the early                                                                   
intervention  programs  and  would   primarily  be  treatment                                                                   
services.   The  Early  Intervention  Program  has a  newborn                                                                   
hearing  screening  service  for   children  needing  hearing                                                                   
support services.   Co-Chair Meyer asked about  the half-time                                                                   
position and  if it would be  picked up by the  State general                                                                   
fund.                                                                                                                           
                                                                                                                                
4:18:16 PM                                                                                                                    
                                                                                                                                
In response to  Vice-Chair Stoltze, Ms. Birch  explained that                                                                   
the newborn screening  program has been in effect  since 1998                                                                   
in  many hospitals.   At  present time,  23 communities  have                                                                   
that  screening  equipment  in   their  hospitals.    Through                                                                   
federal funding, the Division  purchased additional equipment                                                                   
for  nine  communities.   The  screening  test  prices  range                                                                   
between  $20  and  $40  dollars  and  no  money  is  paid  to                                                                   
providers.    The  federal  grants   provided  equipment  and                                                                   
training.                                                                                                                       
                                                                                                                                
4:19:52 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  indicated   his  confusion  with  the                                                                   
fiscal note, the  language regarding that "public  record and                                                                   
requiring a  "reporting and surveillance system  for tracking                                                                   
all  newborns".     He  questioned  that  choice   of  words,                                                                   
recommending that the verbiage be revised.                                                                                      
                                                                                                                                
4:21:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JAY  RAMRAS, SPONSOR,  shared  concerns  with                                                                   
personal privacy issues.  He understood  that the legislation                                                                   
would provide statistical tracking  of the number of newborns                                                                   
needing services  for congenital  birth defects.   He assured                                                                   
members that the intent was not to use surveillance.                                                                            
                                                                                                                                
Ms. Birch  interjected that the  word "surveillance"  is used                                                                   
as a public health  term and is one of the  four functions of                                                                   
public health.   The intention is to determine  how large the                                                                   
statewide problem is by having a methodology.                                                                                   
                                                                                                                                
4:24:42 PM                                                                                                                    
                                                                                                                                
Representative Hawker pointed  out an additional provision in                                                                   
the bill,  which could solve  some problems.   The Department                                                                   
proposed that Subsection  G be deleted and asked  if that had                                                                   
happened.   Ms. Birch  replied  that in the  House Labor  and                                                                   
Commerce version,  on Page 5, Lines 15-19,  there was wording                                                                   
in the  original bill,  discussing how  the Department  would                                                                   
track any newborns needing financial  support.  She clarified                                                                   
that the  payment methodology  was established in  a recently                                                                   
revised Medicaid  manual.  It  would not be feasible  for the                                                                   
Department  to  take  on  the   reimbursement  costs  to  the                                                                   
hospitals.                                                                                                                      
                                                                                                                                
Representative  Hawker   asked  if  Subsection   G  had  been                                                                   
eliminated from the bill.  Ms. Birch affirmed.                                                                                  
                                                                                                                                
4:26:47 PM                                                                                                                    
                                                                                                                                
Representative Hawker  suggested that the fiscal  note should                                                                   
indicate removal of that language.                                                                                              
                                                                                                                                
Co-Chair  Meyer  requested  a more  detailed  budget  outline                                                                   
starting with FY08.                                                                                                             
                                                                                                                                
4:27:35 PM                                                                                                                    
                                                                                                                                
Representative Holm asked if there  would there be savings at                                                                   
some point, noting it was not indicated in the fiscal note.                                                                     
                                                                                                                                
4:29:02 PM                                                                                                                    
                                                                                                                                
Representative  Ramras appreciated  the remarks.   He  stated                                                                   
that if  the birth  defect condition  were caught early,  the                                                                   
State  would  be  able  to  mitigate  some  hearing  loss  to                                                                   
diminish the severity and cognitive  development of the young                                                                   
child.   By  the time the child hits school  age, they become                                                                   
a problem  of the  State of Alaska  through one mechanism  or                                                                   
another.  He  believed that there would be  a positive fiscal                                                                   
note showing savings to the State at some point.                                                                                
                                                                                                                                
4:30:40 PM                                                                                                                    
                                                                                                                                
Ms.  Birch advised  that it  had  not been  reflected in  the                                                                   
fiscal note, however,  she had looked at Medicaid  claims for                                                                   
children who had received treatment  in FY03 and FY04.  There                                                                   
were a total of  946 recipients with an average  cost of $582                                                                   
dollars  each.   The number  compares to  about $760  dollars                                                                   
each  in FY02.    The preliminary  review  indicates that  if                                                                   
caught early,  treatment dollars required for  these children                                                                   
would decrease.                                                                                                                 
                                                                                                                                
Representative  Holm  thought   that  information  should  be                                                                   
reflected in the fiscal note.                                                                                                   
                                                                                                                                
Representative Ramras commented  that they could work on that                                                                   
as the bill makes its way to the other body.                                                                                    
                                                                                                                                
4:33:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair    Stoltze    suggested    the    note    indicate                                                                   
indeterminate.                                                                                                                  
                                                                                                                                
Representative  Hawker   referenced  Page  5,   Lines  12-19,                                                                   
stating that the parent could  opt out of the procedure if it                                                                   
conflicts with a  religious tenet of that family.   He warned                                                                   
that language  could  deny a parent  the right  to object  on                                                                   
grounds other than religious.                                                                                                   
                                                                                                                                
4:34:59 PM                                                                                                                    
                                                                                                                                
Representative  Ramras stated  there was  no disagreement  in                                                                   
modifying  that  language.   The  verbiage  was  lifted  from                                                                   
regulations in the Newborn Metabolic Screening.                                                                                 
                                                                                                                                
Representative  Hawker MOVED  to  ADOPT conceptual  Amendment                                                                   
#1, Page  5, Line 15,  following "religious" adding  language                                                                   
"or other".  There being NO OBJECTION, it was adopted.                                                                          
                                                                                                                                
Representative  Foster   MOVED  to  report  HB   109  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  109 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass"  recommendation  and with  a  new  fiscal note  by  the                                                                   
Department of  Health & Social Services, a  new indeterminate                                                                   
note by the  Department of Education & Early  Development and                                                                   
a new  zero note by the  Department of Commerce,  Community &                                                                   
Economic Development.                                                                                                           
                                                                                                                                
4:37:00 PM                                                                                                                    
HOUSE BILL NO. 225                                                                                                            
                                                                                                                                
     An Act relating to medical examiners and medical death                                                                     
     examinations.                                                                                                              
                                                                                                                                
REPRESENTATIVE LESIL  MCGUIRE, SPONSOR, noted that  last year                                                                   
alone, there were nearly 1,100  cases filed with the State of                                                                   
Alaska's  medical  examiner's  office.    All  of  the  cases                                                                   
require    responsibilities     ranging    from    autopsies,                                                                   
administrative duties and legal  responsibilities.  With such                                                                   
a sizeable caseload, one more medical examiner is needed.                                                                       
                                                                                                                                
The one State  medical examiner has been stretched  thin with                                                                   
the caseload.   Currently  autopsies  are required only  when                                                                   
the death  was suspicious or if  there was a  crime involved.                                                                   
When  forced to  pick and  choose cases,  something could  be                                                                   
overlooked  in  the  remaining  cases that  did  not  receive                                                                   
needed  attention.    Additional consideration  needs  to  be                                                                   
given to what happens if medical  examiners became ill or for                                                                   
any reason cannot fulfill their duties.                                                                                         
                                                                                                                                
Representative  McGuire continued  that the  position of  the                                                                   
State medical  examiner is a  critical function in  the State                                                                   
and has a tremendous responsibility.   The fact that there is                                                                   
such  as large  caseload for  only one  medical examiner  has                                                                   
become a growing  concern for policy makers,  law enforcement                                                                   
officials and  the community.   Under current State  law, the                                                                   
commissioner  of Department  of Health  & Social Services  is                                                                   
required to  appoint only a medical  examiner.  HB  225 would                                                                   
require that  the commissioner  appoint both a  chief medical                                                                   
examiner  and   a  deputy  medical  examiner   to  share  the                                                                   
extensive workload.                                                                                                             
                                                                                                                                
4:40:47 PM                                                                                                                    
                                                                                                                                
OFFICER  MIKE  COUTURIER,  (TESTIFIED   VIA  TELECONFERENCE),                                                                   
VICE-PRESIDENT,   ANCHORAGE   POLICE   DEPARTMENT   EMPLOYEES                                                                   
ASSOCIATION,  ANCHORAGE,  voiced  the Department's  need  and                                                                   
support  for a  new deputy  medical  examiner.   There is  an                                                                   
operative margin  for first time  responders for the  City of                                                                   
Anchorage and the  State at large.  He urged  the Committee's                                                                   
support.                                                                                                                        
                                                                                                                                
4:44:40 PM                                                                                                                    
                                                                                                                                
DR.  DON ROGERS,  (TESTIFIED  VIA  TELECONFERENCE),  CORONER,                                                                   
ANCHORAGE,  spoke in  support of  the bill.   He pointed  out                                                                   
that when the  function was shifted from the  Court System to                                                                   
the  Department of  Health &  Social  Services, the  coroners                                                                   
were instructed  to do less; they,  at that time,  were doing                                                                   
more autopsies  than anyone in  the country.  He  pointed out                                                                   
that until an autopsy is performed,  the family does not know                                                                   
whether  it is  needed or  not.   He added  that he  performs                                                                   
approximately  25 autopsies  per year;  most are people  that                                                                   
die suddenly and/or unexpectedly.   He recommended that there                                                                   
needs  to be  a change  of policy  within  the Department  of                                                                   
Health & Social  Services and the bill would  help to address                                                                   
that policy.  He urged support of the legislation.                                                                              
                                                                                                                                
4:47:01 PM                                                                                                                    
                                                                                                                                
Representative  Hawker indicated  that  the subcommittee  had                                                                   
attempted for  two years to get  the funding into  the budget                                                                   
for the position.   He noted that the House  had included the                                                                   
$100 thousand  dollar  funding, however,  it did not  survive                                                                   
the Senate.                                                                                                                     
                                                                                                                                
4:47:47 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer pointed  out that  the fiscal  note does  not                                                                   
indicate the  request in the 2006  budget.  He noted  for the                                                                   
record that the  House intends to fund the  position and that                                                                   
it will be addressed in Conference Committee.                                                                                   
                                                                                                                                
4:48:44 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault   commented  that  it  is   a  justifiable                                                                   
position  and that the  Legislature should  mandate that  the                                                                   
Department's commissioner to address it.                                                                                        
                                                                                                                                
Co-Chair    Meyer   suggested    the   note   be    modified.                                                                   
Representative Hawker  did not think the bill  should require                                                                   
additional personnel.                                                                                                           
                                                                                                                                
4:50:29 PM                                                                                                                    
                                                                                                                                
Representative   McGuire   agreed   with  the   comments   of                                                                   
Representative  Hawker.   If the  Department  wanted to  pull                                                                   
someone from  within the ranks  and make them  deputy medical                                                                   
examiner, that  could work.   She noted  that it was  not the                                                                   
intent to micromanage the Division.                                                                                             
                                                                                                                                
4:51:36 PM                                                                                                                    
                                                                                                                                
Representative Hawker  recommended that the note  as written,                                                                   
suits the system.                                                                                                               
                                                                                                                                
Representative Kelly agreed it  should be addressed, however,                                                                   
cautioned that  the language should indicate  the Committee's                                                                   
intent.                                                                                                                         
                                                                                                                                
Representative  Foster   MOVED  to  report  HB   225  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
HB   225  was   reported  out   of  Committee   with  a   "no                                                                   
recommendation" and  with zero note  #1 by the  Department of                                                                   
Health & Social Services.                                                                                                       
                                                                                                                                
4:53:08 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 210                                                                                                            
                                                                                                                                
     An Act relating to blood testing of certain persons                                                                        
     alleged to have committed certain offenses directed                                                                        
     toward peace officers or emergency workers.                                                                                
                                                                                                                                
REPRESENTATIVE  LESIL MCGUIRE,  SPONSOR, stated  that HB  210                                                                   
takes policies  and procedures  for testing  for blood  borne                                                                   
pathogen exposure  to correctional  officers that  was passed                                                                   
          rd                                                                                                                    
by  the 23   Alaskan Legislature  and expands  it to  include                                                                   
peace officers,  firefighters, emergency medical  technicians                                                                   
and mobile paramedics.                                                                                                          
                                                                                                                                
The bill first establishes procedures  for determining if the                                                                   
first responders  were  exposed to blood  borne pathogens  in                                                                   
the course  of their work.   Once it is reasonably  concluded                                                                   
that such  exposure has  occurred, the  bill sets  procedures                                                                   
for  obtaining the  consent  of the  person  who exposed  the                                                                   
first  responder   to  have  their   blood  tested.     These                                                                   
procedures  protect the  identity  of the  person tested  and                                                                   
pass on only the  results of the test to the  first responder                                                                   
exposed to  the blood  borne pathogens.   The results  of the                                                                   
test are also passed on to the person tested.                                                                                   
                                                                                                                                
Representative  McGuire  noted that  the  bill also  provides                                                                   
procedures  for  court  ordered  testing of  the  person  who                                                                   
exposed the first responder to  blood borne pathogens if that                                                                   
person refuses  to be tested.   The  bill does not  enact any                                                                   
new policies or procedures for  blood borne pathogen testing.                                                                   
                                                                                                                                
4:54:40 PM                                                                                                                    
                                                                                                                                
Representative  McGuire continued  comments.  She  referenced                                                                   
Page  4, Section  3, which  is the  area that  has been  most                                                                   
questionable.   She thought  that the  process had  been well                                                                   
thought out.   The definition  of a juvenile offender  can be                                                                   
found in Title  47: "A delinquent minor is  someone under the                                                                   
age  of 18  and  who  is determined  by  the  Court  to be  a                                                                   
delinquent  minor as a  result of  violating criminal  law of                                                                   
the State of municipality".                                                                                                     
                                                                                                                                
4:56:40 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  asked if there was any  ambiguity between                                                                   
a juvenile  and a delinquent  minor.  Representative  McGuire                                                                   
stated there was not.                                                                                                           
                                                                                                                                
4:58:34 PM                                                                                                                    
                                                                                                                                
OFFICER  MIKE  COUTURIER,  (TESTIFIED   VIA  TELECONFERENCE),                                                                   
VICE-PRESIDENT,   ANCHORAGE   POLICE   DEPARTMENT   EMPLOYEES                                                                   
ASSOCIATION, ANCHORAGE, spoke  in support of the legislation.                                                                   
The bill would provide for the  testing of an officer and the                                                                   
individual exposed.   The provisions follow  those from other                                                                   
states.                                                                                                                         
                                                                                                                                
5:00:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault  questioned   if  probation  officers  are                                                                   
included   under   the   definition    of   Peace   Officers.                                                                   
Representative McGuire stated  that language on Page 7, Lines                                                                   
4-8, indicates they would be covered.                                                                                           
                                                                                                                                
                                                                                                                                
Representative  Holm inquired if  officers would  be required                                                                   
to be tested.  Representative  McGuire did not think that any                                                                   
officer had refused to be tested.                                                                                               
                                                                                                                                
5:02:11 PM                                                                                                                    
                                                                                                                                
Officer Couturier  explained that the policy  was testing for                                                                   
exposure to bodily  fluids.  He pointed out  that HIV testing                                                                   
actually  takes 72  hours and  that  he could  not imagine  a                                                                   
police office refusing the test.                                                                                                
                                                                                                                                
Representative  Foster   MOVED  to  report  HB   210  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  210 (JUD)  was reported  out of  Committee with  a "do                                                                   
pass"  recommendation and  with zero  note #1  by the  Alaska                                                                   
Court System, zero note #2 by  the Department of Corrections,                                                                   
zero note  #3 by the  Department of Law  and zero note  #4 by                                                                   
the Department of Public Safety.                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 5:06 P.M.                                                                                          
                                                                                                                                

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