Legislature(2007 - 2008)HOUSE FINANCE 519

04/24/2007 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 90 BAIL TELECONFERENCED
Moved CSHB 90(FIN) Out of Committee
*+ HB 238 OIL & HAZARD SUBSTANCE RESPONSE ACCOUNT TELECONFERENCED
Moved CSHB 238(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 164 OCEAN RANGERS & REPORTING VESSEL LOCATION TELECONFERENCED
Heard & Held
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 24, 2007                                                                                           
                         1:43 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:43:41 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Mary Nelson                                                                                                      
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Ralph  Samuels;   Anne  Carpeneti,  Assistant                                                                   
Attorney  General,  Legal Services  Section-Juneau,  Criminal                                                                   
Division,  Department  of Law;  Sharleen  Griffin,  Director,                                                                   
Division   of   Administrative    Services,   Department   of                                                                   
Corrections; Michael Pawlowski,  Staff, Co-Chair Meyer; Brian                                                                   
Andrews, Deputy  Commissioner, Treasury Division,  Department                                                                   
of Revenue;  Larry Dietrick,  Director, Spill Prevention  and                                                                   
Response,   Department    of   Environmental    Conservation;                                                                   
Representative Kyle Johansen                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kathy  Hansen,  Office  of Victims'  Rights;  Marti  Greeson,                                                                   
Alaska  Monitoring,  Anchorage;  Quinlan  Steiner,  Director,                                                                   
Public Defender  Agency, Department of Administration;  Breck                                                                   
Tostevin,  Senior Assistant  Attorney General,  Environmental                                                                   
Section, Civil Division, Department of Law                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 90     "An Act relating to bail."                                                                                            
                                                                                                                                
          CSHB 90 (FIN) was REPORTED  out of Committee with a                                                                   
          "do pass" recommendation  and with zero fiscal note                                                                   
          #2 by  the Department of Law,  indeterminate fiscal                                                                   
          note  #3  by  the  Department   of  Administration,                                                                   
          indeterminate  fiscal note #4 by the  Department of                                                                   
          Administration,   and  with  a  new   indeterminate                                                                   
          fiscal note by the Department of Corrections.                                                                         
                                                                                                                                
HB 238    "An  Act relating  to the response  account  of the                                                                   
          oil and hazardous substance  release prevention and                                                                   
          response  fund;  and  providing  for  an  effective                                                                   
          date."                                                                                                                
                                                                                                                                
          CSHB 238(FIN) was REPORTED  out of Committee with a                                                                   
          "do  pass" recommendation  and  with  a new  fiscal                                                                   
          note   by  the   Department  of   Revenue,  a   new                                                                   
          indeterminate  fiscal  note  by the  Department  of                                                                   
          Environmental  Conservation,  and with  a new  zero                                                                   
          fiscal note by the Department of Administration.                                                                      
                                                                                                                                
HB 164    "An  Act relating to  reporting of vessel  location                                                                   
          by certain  commercial passenger  vessels operating                                                                   
          in  the marine waters  of the  state, to  access to                                                                   
          vessels by  licensed marine engineers  for purposes                                                                   
          of  monitoring compliance  with  state and  federal                                                                   
          requirements,  and  to  the  obligations  of  those                                                                   
          engineers  while aboard the vessels;  and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
          CSHB 164 (JUD) was heard  and HELD in Committee for                                                                   
          further consideration.                                                                                                
                                                                                                                                
1:44:06 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 90                                                                                                             
                                                                                                                                
     "An Act relating to bail."                                                                                                 
                                                                                                                                
REPRESENTATIVE  RALPH SAMUELS, sponsor,  reported that  HB 90                                                                   
is a multi-part  bill.  He requested that the  Committee hear                                                                   
the bail section of the bill first.                                                                                             
                                                                                                                                
KATHY HANSEN, OFFICE OF VICTIMS'  RIGHTS, addressed Section 5                                                                   
of the  bill, which amends the  law addressing when  a person                                                                   
arrested for a crime may request  a third and subsequent bail                                                                   
hearing.  She explained that hope  is that this section would                                                                   
balance the  constitutional rights between the  defendant and                                                                   
the victim  in criminal  matters.  She  pointed out  that the                                                                   
section was dealt  with during the last  legislative session;                                                                   
however,  the Office  of Victims'  Rights  felt that  further                                                                   
limits were  needed on the  defendant's right to  repeat bail                                                                   
hearings.   She related  an example  of a  victim who  had to                                                                   
attend  multiple  bail  hearings.     She  wanted  a  defense                                                                   
attorney to  be required  to offer one  bail proposal  at the                                                                   
beginning of the  case and present all  information available                                                                   
at that time, not in several subsequent hearings.                                                                               
                                                                                                                                
ANNE CARPENETI,  ASSISTANT ATTORNEY  GENERAL, LEGAL  SERVICES                                                                   
SECTION-JUNEAU,   CRIMINAL  DIVISION,   DEPARTMENT  OF   LAW,                                                                   
described the bill  as fine tuning several new  laws from the                                                                   
last  several  years  such  as SB  218,  which  expanded  the                                                                   
sentencing  period and  probation for  felony sex  offenders.                                                                   
One  of the  problems  is that  mandatory  probation for  sex                                                                   
offenders  is longer than  what is  currently in statute  for                                                                   
the maximum period  of probation.  She pointed  out that when                                                                   
a cold case prosecutor was funded,  fine tuning was needed on                                                                   
the  statute  of  limitation for  the  prosecution  of  older                                                                   
murder  cases.    She  also  spoke   of  a  bill  prohibiting                                                                   
electronic  distribution of  indecent  material to  children,                                                                   
which   only  addressed   indecent   pictures  of   children.                                                                   
Indecent  pictures of  adults are not  covered under  current                                                                   
law and needs  to be changed.   A section of HB 90  puts into                                                                   
statute  a standard  for  when a  court  should order  credit                                                                   
against  a  term  of incarceration  for  participation  in  a                                                                   
treatment program.                                                                                                              
                                                                                                                                
Ms.  Carpeneti described  Section  1, which  makes  it a  new                                                                   
crime for a sex offender on probation  to violate a condition                                                                   
of  probation.   This was  necessary because  a sex  offender                                                                   
could run  out of jail time  "hanging over their  head" under                                                                   
current probation  regulations.  It is a class  A misdemeanor                                                                   
if a person violates certain conditions of their probation.                                                                     
                                                                                                                                
1:53:34 PM                                                                                                                    
                                                                                                                                
Ms. Carpeneti related that Section  2 prohibits a person from                                                                   
sending indecent material that depicts adults to minors.                                                                        
                                                                                                                                
Ms.  Carpeneti  reported  that  Section  3  is  a  conforming                                                                   
amendment that  would allow the  forfeiture of  property such                                                                   
as computers  used in  committing electronic distribution  of                                                                   
indecent materials to minors.                                                                                                   
                                                                                                                                
Ms.  Carpeneti  explained  that   Section  4  adds  "attempt,                                                                   
solicitation,   and   conspiracy   to  commit   murder"   and                                                                   
"hindering  prosecution  of murder"  to  crimes  that may  be                                                                   
brought at any time.  The prosecution  of cold cases has been                                                                   
hindered  by the  statute of  limitations  for these  crimes,                                                                   
which is five years.                                                                                                            
                                                                                                                                
Ms. Carpeneti  related that  Section 5  is the bail  revision                                                                   
previously described by Ms. Hansen.                                                                                             
                                                                                                                                
1:54:35 PM                                                                                                                    
                                                                                                                                
Ms.  Carpeneti explained  that  Section 6  relates to  Nygren                                                                   
credit,  a case  that  addressed when  a  court should  grant                                                                   
credit against a period of incarceration  for time spent in a                                                                   
treatment program  before a sentence  is served.   Credit may                                                                   
be given for time in a treatment  program that is essentially                                                                   
similar to incarceration.  It  is important for this to be in                                                                   
statute to provide  fairness and uniformity as  to credit for                                                                   
time  served  in  a  treatment  program.    There  are  three                                                                   
criteria: the  court orders treatment, the program  meets the                                                                   
standards  set forth  in the bill,  and the  director of  the                                                                   
program has informed the court  that the person completed the                                                                   
requirements of the program.                                                                                                    
                                                                                                                                
Ms. Carpeneti  related that Section  7 changes  the mandatory                                                                   
period of probation from 10 years  to 25 years for felony sex                                                                   
offenses.                                                                                                                       
                                                                                                                                
Ms.  Carpeneti   said  that  Section  8  requires   a  person                                                                   
convicted of electronic distribution  of indecent material to                                                                   
minors to register as sex a offender.                                                                                           
                                                                                                                                
Ms. Carpeneti explained  that Section 9 requires  a person to                                                                   
bring an action  for post-conviction relief that  is based on                                                                   
the claim that  the person's attorney in a  prior application                                                                   
for post-conviction  relief was ineffective, within  one year                                                                   
after the court's  denial of the prior application  for post-                                                                   
conviction relief  is final.  She reported that  a law passed                                                                   
in  1995 helped  cut  down  on "recreational  litigation"  by                                                                   
prisoners.  Current law provides several chances for post-                                                                      
conviction  relief; however,  Section 9  would impose  a time                                                                   
limit of one year.                                                                                                              
                                                                                                                                
Ms.  Carpeneti  related  that  Section  10  provides  that  a                                                                   
prisoner not be  awarded "good time" for any  period spent in                                                                   
a  treatment program,  a private  residence,  or while  under                                                                   
electronic monitoring.  She maintained  that good time should                                                                   
apply to good behavior during time spent in jail.                                                                               
                                                                                                                                
2:00:15 PM                                                                                                                    
                                                                                                                                
Representative  Gara voiced  concern,  on page  6, about  not                                                                   
allowing  good time  for time  spent in  a 24-hour  intensive                                                                   
treatment  program.   He  suggested that  be  allowed if  the                                                                   
treatment  program   satisfies  the  criteria   described  in                                                                   
Section  6.    Ms.  Carpeneti   related  a  problem  in  that                                                                   
treatment programs  do not give good time,  the Department of                                                                   
Correction does.   Also, a treatment facility  does not equal                                                                   
jail.   Representative  Gara maintained  that  good time  for                                                                   
treatment  could be at  the discretion  of the Department  of                                                                   
Corrections.   He stressed that rehabilitation  is important.                                                                   
Ms. Carpeneti said it might work  if the treatment program is                                                                   
similar to incarceration.                                                                                                       
                                                                                                                                
2:03:24 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  thought that  fewer  would go  into                                                                   
treatment  if  it  did  not count  toward  good  time.    Ms.                                                                   
Carpeneti agreed.   She added an example of  someone who does                                                                   
not finish  treatment because it  does not count  toward good                                                                   
time.                                                                                                                           
                                                                                                                                
2:04:53 PM                                                                                                                    
                                                                                                                                
Representative   Gara   wondered   if   the   Department   of                                                                   
Corrections  is  currently required  to  give  good time  for                                                                   
residential treatment.                                                                                                          
                                                                                                                                
SHARLEEN  GRIFFIN,   DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                                                                   
SERVICES,  DEPARTMENT  OF  CORRECTIONS,  explained  that  her                                                                   
understanding  is  that  the  Department  currently  has  the                                                                   
discretion to determine good time.                                                                                              
                                                                                                                                
Representative Gara said he wants  to make it consistent with                                                                   
what the  law currently states.   Ms. Carpeneti  thought that                                                                   
it was currently discretionary  for good time to be given for                                                                   
treatment.                                                                                                                      
                                                                                                                                
2:08:13 PM                                                                                                                    
                                                                                                                                
MARTI  GREESON,   ALASKA  MONITORING,  ANCHORAGE,   addressed                                                                   
Section 6.   She  spoke about  electronic monitoring  of non-                                                                   
violent alcohol-related offenders.   She testified in support                                                                   
of allowing  electronic monitoring time counting  toward good                                                                   
time.                                                                                                                           
                                                                                                                                
Representative   Gara  voiced   confusion  about   electronic                                                                   
monitoring  credit  toward  good  time.   He  summarized  his                                                                   
understanding of good time.                                                                                                     
                                                                                                                                
Ms. Carpeneti clarified that every  prisoner in the state has                                                                   
the right  to good time.  It  is to encourage them  to behave                                                                   
while in  jail.  Representative  Gara referred to  Section 6,                                                                   
and questioned  the court's  role.   Ms. Carpeneti  clarified                                                                   
that the  court does not  grant good  time.  Section  6 deals                                                                   
with Nygren  credit, which  is credit for  time served.   She                                                                   
gave  an example  of  someone who  seeks  treatment prior  to                                                                   
conviction.  After  the person is convicted  and the sentence                                                                   
is imposed,  the judge can reduce  the time to be  served for                                                                   
the  time spent  in  treatment.   Section  6  is intended  to                                                                   
standardize what programs the  courts give credit for against                                                                   
a  sentence to  begin  with.   Good time  is  awarded by  the                                                                   
Department  of  Corrections, applies  to  time  off for  good                                                                   
behavior  after  a person  is  incarcerated,  and is  a  very                                                                   
effective tool.                                                                                                                 
                                                                                                                                
2:14:34 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked if  Section 6  does not  allow for                                                                   
someone   with  an   electronic   monitoring  device   before                                                                   
conviction  to  get  credit  for   time  against  an  imposed                                                                   
sentence.   Ms. Carpeneti said yes.                                                                                             
                                                                                                                                
Representative  Gara  asked  if  Section 10  deals  with  the                                                                   
Department   of  Corrections   not   counting   30  days   of                                                                   
residential treatment against  jail time.  Ms. Carpeneti said                                                                   
yes.                                                                                                                            
                                                                                                                                
2:15:55 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze MOVED to ADOPT Amendment 1:                                                                                  
                                                                                                                                
     Page 4, lines 30-31 and page 5, line 1:                                                                                    
     Following "appearances" delete all material                                                                                
     Insert the following:                                                                                                      
     ",meetings with counsel, and work required by the                                                                          
     treatment program and approved in advance by the                                                                           
     court;"                                                                                                                    
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Ms.  Carpeneti   explained  that  Amendment  #1   repairs  an                                                                   
amendment  made  in  House  Judiciary  regarding  the  Nygren                                                                   
credit, which  would allow mandatory  work done  in treatment                                                                   
programs to qualify for good time  credit.  The Department of                                                                   
Law  was  not in  favor  of  that amendment.    Amendment  #1                                                                   
clarifies how the credit is given for work programs.                                                                            
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative Gara WITHDREW Amendments #2 and #3.                                                                              
                                                                                                                                
2:18:41 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #4:                                                                                
                                                                                                                                
     Page 3, lines 28-30:                                                                                                       
     Delete "(A) the inability to post the required bail;                                                                     
             (B) information that the defendant knew about                                                                      
             but did not present at a previous bail review                                                                      
             hearing"                                                                                                           
     Insert "the inability to post the required bail"                                                                           
                                                                                                                                
     Page 4, line 2:                                                                                                            
     Delete "seven days [48 HOURS]"                                                                                             
     Insert "48 hours"                                                                                                          
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Gara explained  that Amendment  #4 has  to do                                                                   
with  whether or  not  a person  can  get a  subsequent  bail                                                                   
hearing and how.                                                                                                                
                                                                                                                                
Representative Gara WITHDREW Amendment #4.                                                                                      
                                                                                                                                
2:19:34 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #5:                                                                                
                                                                                                                                
     Page 3, lines 29-30:                                                                                                       
     Delete "knew about but did not present"                                                                                    
     Insert "without good cause did not disclose"                                                                               
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Gara  explained  that  the way  the  bill  is                                                                   
written,  another   bail  hearing  is  not   allowed  if  the                                                                   
defendant  had information but  it was  not presented  at the                                                                   
prior bail hearing.  The reality  is that the client does not                                                                   
normally talk  to the court.   Sometimes there is  an endless                                                                   
replacement  of public  defenders  doing  bail hearings,  and                                                                   
sometimes  all   points  are  not  raised.     The  amendment                                                                   
disqualifies a  person from the  extra bail hearing  if there                                                                   
was information that, without  good cause, was not disclosed.                                                                   
                                                                                                                                
2:21:28 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  asked if "defendant" was  synonymous with                                                                   
"lawyer".   Representative  Gara replied  that the  amendment                                                                   
was referring  to what the  defendant and their  lawyer knew.                                                                   
Vice Chair Stoltze requested further clarification.                                                                             
                                                                                                                                
Ms. Carpeneti  said the purpose  of the  bill seems to  be to                                                                   
avoid serial bail hearings.                                                                                                     
                                                                                                                                
Ms.  Hansen  clarified  that   current  law  reads  that  the                                                                   
defendant  who wants  a repeat  bail  hearing has  to file  a                                                                   
written certification as to why  they want a new bail hearing                                                                   
and  what new  information the  court is  going to  consider.                                                                   
The court currently is open to  this.  She related a personal                                                                   
experience  about  a  request  for  separate  bail  hearings,                                                                   
without notice,  for a third-party custodian  appointment and                                                                   
electric monitoring.   She maintained that there  needs to be                                                                   
advance notice for  bail hearings.  She explained  the trauma                                                                   
experienced by victims each time there is a bail hearing.                                                                       
                                                                                                                                
Representative Gara sympathized  with the victim.  He related                                                                   
that the  purpose of bail is  for people who are  not guilty.                                                                   
The more bail is  limited, the less fair it is  to the person                                                                   
who  is not  guilty.   He  wanted  to prevent  punishing  the                                                                   
defendant due to an incompetent public defender.                                                                                
                                                                                                                                
2:27:11 PM                                                                                                                    
                                                                                                                                
QUINLAN   STEINER,   DIRECTOR,    PUBLIC   DEFENDER   AGENCY,                                                                   
DEPARTMENT OF  ADMINISTRATION, pointed out that  the previous                                                                   
situation could cause litigation,  if there is a disagreement                                                                   
between  attorney and  client  as to  what was  communicated.                                                                   
Right to a bail hearing could be lost.                                                                                          
                                                                                                                                
Representative  Gara  inquired  about the  new  bail  hearing                                                                   
provisions.  One, on line 28,  is that a client can't get the                                                                   
subsequent bail hearing based  on the grounds that bail could                                                                   
not be  posted under  the prior  bail hearing.   Mr.  Steiner                                                                   
replied that that  provision is not much different  from what                                                                   
is in place  now.  Representative  Gara gave an example  of a                                                                   
client who gets $100,000 bail  and can't post that much.  Mr.                                                                   
Steiner  agreed  that it  was  a  real  world example.    The                                                                   
question is  whether one judge  would address the  bail order                                                                   
of another  judge.  Representative  Gara asked  how different                                                                   
the provision  that says a bail  hearing will not  be allowed                                                                   
if the  defendant knew  information that  wasn't shared  at a                                                                   
prior hearing  is from existing  law.  Mr. Steiner  addressed                                                                   
what was new about the proposal.   Representative Gara wanted                                                                   
to see fair  bail provisions under  Section 5.  He  asked Mr.                                                                   
Steiner for his  opinion.  Mr. Steiner thought  it would lead                                                                   
to litigation and denial of a  third hearing.  Representative                                                                   
Gara wanted  a balance, but did  not know how to  fix Section                                                                   
5.                                                                                                                              
                                                                                                                                
2:32:42 PM                                                                                                                    
                                                                                                                                
Representative Joule  related that in rural areas  there is a                                                                   
lack of investigation.  He wondered  if that impacts the bail                                                                   
hearing.    Mr. Steiner  said  it  does.    One of  the  bail                                                                   
considerations is the strength  of the case.  A time-lag is a                                                                   
detriment and could affect release.                                                                                             
                                                                                                                                
Representative  Samuels said there  was a previous  bill that                                                                   
said unless  you have  new information you  can't have  a new                                                                   
bail  hearing.    The  point  was to  try  to  have  all  the                                                                   
information  brought out at  the first  bail hearing  so that                                                                   
the victim does not get called  in several times.  He said he                                                                   
understands   Representative  Gara's   point.    He   thought                                                                   
Amendment #5 did not help clarify the issue.                                                                                    
                                                                                                                                
2:37:19 PM                                                                                                                    
                                                                                                                                
Ms. Carpeneti pointed out that  the bill addresses a person's                                                                   
third  bail hearing.   She  opined that  there is  an out  in                                                                   
current  law and  the bill  is fair  the way  it is  drafted.                                                                   
Representative Gara argued that  granting of a bail reduction                                                                   
by the  prosecutor does not  happen very  often.  He  gave an                                                                   
example  of  an  attorney  misrepresenting  a  client.    Ms.                                                                   
Carpeneti thought the attorney  should be presenting the best                                                                   
case at the first bail hearing.                                                                                                 
                                                                                                                                
Representative Gara WITHDREW Amendment #5.                                                                                      
                                                                                                                                
2:40:25 PM                                                                                                                    
                                                                                                                                
Representative Gara addressed  Section 10 and maintained that                                                                   
a prisoner  should  get a  good time  deduction if  treatment                                                                   
meets the  criteria on page 4,  beginning with line  28.  Ms.                                                                   
Carpeneti  thought it  would  be easier  to  include this  in                                                                   
definitions.   Representative  Gara thought  the court  order                                                                   
would  have to  be deleted  because  it does  not order  good                                                                   
time.  Ms.  Carpeneti proposed wording, "a  treatment program                                                                   
for this section means a program  that a person completes and                                                                   
that is equivalent to incarceration."                                                                                           
                                                                                                                                
Representative  Gara  added,   "a  program  that  the  person                                                                   
completes and that meets the standards stated in .027(c)."                                                                      
                                                                                                                                
Representative Gara MOVED to ADOPT Conceptual Amendment #6:                                                                     
                                                                                                                                
     Page 6, lines 21-23                                                                                                        
     Insert language to read                                                                                                    
     "good time may be granted if the treatment program is:                                                                     
                                                                                                                                
     (1) Completed;                                                                                                             
     (2) and meets the standards in AS 12.55.027(c)                                                                             
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Samuels  asked what  happens  when there  are                                                                   
thirty days  left in a sentence  of a sixty-day  sentence and                                                                   
the last thirty days are spent  in a treatment program, which                                                                   
isn't  completed.     He  wondered   if  the   Department  of                                                                   
Corrections would have to re-calculate the sentence.                                                                            
                                                                                                                                
Ms. Carpeneti  said treatment is  at the end of  the sentence                                                                   
and  time-keeping  by  the Department  of  Corrections  is  a                                                                   
complicated  matter.   In  order  to  give  good time  for  a                                                                   
treatment program, the program should be completed.                                                                             
                                                                                                                                
Representative  Joule  wondered how  much  time the  sentence                                                                   
would be and how effective treatment  would be if it comes at                                                                   
the end  of the  sentence.  Representative  Samuels  noted it                                                                   
would be a 90-day  sentence with 30 days of  treatment.  Good                                                                   
time  would  have  to  be  predicted  by  the  Department  of                                                                   
Corrections.                                                                                                                    
                                                                                                                                
2:48:15 PM                                                                                                                    
                                                                                                                                
Representative Gara  related a scenario about  treatment plan                                                                   
possibilities.                                                                                                                  
                                                                                                                                
Representative  Hawker spoke against  Section 10  and putting                                                                   
the Department of Corrections  in the position of over-riding                                                                   
a court sentence.                                                                                                               
                                                                                                                                
Representative  Gara  argued  that  the  amendment  does  not                                                                   
violate a court order.  He thought treatment was important.                                                                     
                                                                                                                                
Ms.  Griffin said  those that  need  extensive treatment  are                                                                   
sent to  residential treatment  programs.   Anyone who  has a                                                                   
court order for treatment has  a probation officer to oversee                                                                   
it.   She did not see  that there would  be any good  time to                                                                   
give or take away.                                                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara                                                                                                        
OPPOSED: Foster, Hawker, Joule, Stoltze, Thomas, Meyer                                                                          
                                                                                                                                
Representatives Kelly,  Nelson, and Chenault were  absent for                                                                   
the vote.                                                                                                                       
                                                                                                                                
The amendment failed (2-6).                                                                                                     
                                                                                                                                
Co-Chair  Meyer noted  a new indeterminate  fiscal note  from                                                                   
the  Department of  Commerce.   He  listed  the other  fiscal                                                                   
notes.                                                                                                                          
                                                                                                                                
2:56:44 PM                                                                                                                    
                                                                                                                                
Representative Joule  wondered about fiscal notes  #5 and #6.                                                                   
He  wondered when  those indeterminate  costs  would be  real                                                                   
costs.                                                                                                                          
                                                                                                                                
Ms. Griffin explained  the possible costs for  the Department                                                                   
of Corrections  by section.  She  related that in  Section 6,                                                                   
one  of the  uncertainties is  the effect  of less  pre-trial                                                                   
electronic monitoring.   Section  7, the extended  probation,                                                                   
will not have an impact on the  Department.  The Department's                                                                   
concern regarding Section 10 is  about not allowing good time                                                                   
for electronic monitoring and  the resulting financial costs.                                                                   
It  is not  know how  many offenders  will refuse  electronic                                                                   
monitoring.                                                                                                                     
                                                                                                                                
Co-Chair Meyer asked if fiscal  notes #5 and #6 are among the                                                                   
current  fiscal notes.    Ms. Griffin  noted  that they  were                                                                   
replaced by a new indeterminate note.                                                                                           
                                                                                                                                
Vice  Chair Stoltze  MOVED to  REPORT  CSHB 90  (FIN) out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 90 (FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation   and  with  zero   fiscal  note  #2   by  the                                                                   
Department  of  Law,  indeterminate  fiscal note  #3  by  the                                                                   
Department  of Administration,  indeterminate fiscal  note #4                                                                   
by  the  Department   of  Administration,  and   with  a  new                                                                   
indeterminate fiscal note by the Department of Corrections.                                                                     
                                                                                                                                
3:03:01 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 238                                                                                                            
                                                                                                                                
     "An Act relating to the response account of the oil and                                                                    
     hazardous substance release prevention and response                                                                        
     fund; and providing for an effective date."                                                                                
                                                                                                                                
MICHAEL  PAWLOWSKI,  STAFF,  CO-CHAIR MEYER,  referred  to  a                                                                   
spreadsheet  in the  members'  packets (copy  on  file.)   He                                                                   
explained  that the  legislation  would  create a  subaccount                                                                   
within  the Response  Account  and direct  the Department  of                                                                   
Revenue to  invest that  money to generate  a higher  rate of                                                                   
return  similar to  the  way the  subaccount  in  the CBR  is                                                                   
managed.                                                                                                                        
                                                                                                                                
Mr.  Pawlowski  reported  that   Section  1  deals  with  the                                                                   
Department  of Administration's  calculations of the  balance                                                                   
of the fund and relates to the  imposition of the 1 cent tax.                                                                   
Section  2  would  add  realized  income  of  the  subaccount                                                                   
created in  Section 3 to the  Prevention Account.   Section 3                                                                   
creates a subaccount in the Response  Account and directs the                                                                   
Commissioner of Revenue  to manage the subaccount  based on a                                                                   
five-year basis.   Section 4  transfers $40 million  from the                                                                   
Response  Account to  the subaccount  created  in Section  3.                                                                   
Section 5 is an effective date.                                                                                                 
                                                                                                                                
Co-Chair Meyer  observed that the  intent is to  increase the                                                                   
470 Account by investing it like  a similar subaccount in the                                                                   
CBR.                                                                                                                            
                                                                                                                                
3:07:07 PM                                                                                                                    
                                                                                                                                
Representative  Gara noted that  the fund can  be used  for a                                                                   
catastrophic  spill and  questioned  what would  happen if  a                                                                   
spill occurred after the $40 million was invested.                                                                              
                                                                                                                                
Co-Chair Meyer  thought that  the cost would  be paid  out of                                                                   
the  general   fund  and  replenished  from   collection  for                                                                   
damages.                                                                                                                        
                                                                                                                                
BRIAN  ANDREWS,   DEPUTY  COMMISSIONER,  TREASURY   DIVISION,                                                                   
DEPARTMENT OF REVENUE, pointed  out that the subaccount could                                                                   
be  liquidated in  a  day.   The  anticipated  return of  the                                                                   
subaccount will be somewhere between  7 and 9 percent and the                                                                   
longer  it  is invested,  the  higher  the probability  of  a                                                                   
higher return.                                                                                                                  
                                                                                                                                
Representative Gara asked where the interest would go.                                                                          
                                                                                                                                
Mr. Pawlowski  explained that  the interest would  go through                                                                   
several other accounts  within the fund and  is then credited                                                                   
to the Prevention  Account.  Representative Gara  asked if it                                                                   
would alter the amount of money  of the 4 cents or 1 cent per                                                                   
barrel tax.   Mr. Pawlowski replied  that it would  not alter                                                                   
the amount of money other than  what could happen in terms of                                                                   
a different market  valuation.  Representative  Gara asked if                                                                   
additional  interest  earned  would  have an  effect  on  the                                                                   
barrel tax.   Mr.  Pawlowski responded  that those  taxes are                                                                   
charged regardless  of the interest  earned.  The 1  cent tax                                                                   
is  charged based  on the  balance of  the $50  million.   He                                                                   
explained  that added  in Section  1 is a  provision that  if                                                                   
there is  an investment loss, net  loss is added back  to the                                                                   
balance.  If an  expenditure is made out of  the account, the                                                                   
1 cent  tax would accumulate  normally.  Representative  Gara                                                                   
thought that made sense.                                                                                                        
                                                                                                                                
Mr.  Pawlowski observed  that on  page 2,  line 28  "Revenue"                                                                   
needed  to  be changed  to  "Administration"  for  collection                                                                   
purposes.                                                                                                                       
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment #1:                                                                                     
                                                                                                                                
     On page 2, line 28                                                                                                         
     Delete "Revenue"                                                                                                           
     Add "Administration"                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
In response  to a question  by Co-Chair Meyer,  Mr. Pawlowski                                                                   
noted  that  the balance  in  the  fourth  quarter of  FY  06                                                                   
dropped below $50  million.  There has not been  a drop below                                                                   
$40 million.                                                                                                                    
                                                                                                                                
At ease:       3:12:17 PM                                                                                                     
                                                                                                                                
Reconvened:    3:16:09 PM                                                                                                     
                                                                                                                                
Representative  Hawker referred  to a  chart provided  by the                                                                   
Department   of  Environmental   Conservation   demonstrating                                                                   
expenditures  from the  Response Account  (copy on file.)  He                                                                   
asked  why  there  is  a  large  ($8.5  million)  encumbrance                                                                   
outstanding from a Department of Law review.                                                                                    
                                                                                                                                
BRECK   TOSTEVIN,   SENIOR   ASSISTANT    ATTORNEY   GENERAL,                                                                   
ENVIRONMENTAL  SECTION, CIVIL  DIVISION,  DEPARTMENT OF  LAW,                                                                   
explained  that the funds  were set  aside for outside  legal                                                                   
counsel  for a  state  damages claim  against  BP and  others                                                                   
arising out  of the  North Slope  oil spill.   Representative                                                                   
Hawker did not  believe that the statutory intent  of the oil                                                                   
spill  response  account was  for  investigating  litigation.                                                                   
Mr.  Tostevin referred  to the  Response  Fund, AS  46.08.040                                                                   
(a)(1)(A):                                                                                                                      
                                                                                                                                
     (a)  In addition  to money  in the  response account  of                                                                   
     the  fund that  is transferred  to  the commissioner  of                                                                   
     commerce,  community, and  economic development  to make                                                                   
     grants  under  AS  29.60.510   and  to  pay  for  impact                                                                   
     assessments  under  AS 29.60.560,  the  commissioner  of                                                                   
     environmental conservation may use money                                                                                   
     (1) from the response account in the fund                                                                                  
     (A)  when authorized  by  AS 46.08.045,  to  investigate                                                                   
     and evaluate  the release  or threatened release  of oil                                                                   
     or  a hazardous substance,  and contain,  clean up,  and                                                                   
     take  other necessary  action,  such  as monitoring  and                                                                   
     assessing,  to address a  release or threatened  release                                                                   
     of oil or  a hazardous substance that poses  an imminent                                                                   
     and  substantial   threat  to   the  public   health  or                                                                   
     welfare, or to the environment;                                                                                            
                                                                                                                                
Representative Hawker  argued that the funds are  being spent                                                                   
on litigation without legislative appropriation.                                                                                
                                                                                                                                
In  response  to  a  question  by  Representative  Gara,  Mr.                                                                   
Tostevin explained  that $8.5  million was from  the Response                                                                   
Account,   which   is   the    1   cent   per   barrel   tax.                                                                   
Representative  Gara  summarized  that the  Response  Account                                                                   
applies  to  responses  to releases  or  threatened  release.                                                                   
Mr. Tostevin  agreed and  noted that  it applies to  imminent                                                                   
or substantial threats.                                                                                                         
                                                                                                                                
Representative  Gara felt  that the costs  were justified  by                                                                   
the shut down of the pipeline due to a threat of a release.                                                                     
                                                                                                                                
3:23:14 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  acknowledged the  arguments for the  use, but                                                                   
noted  that it  was  not the  original  intent  of the  fund.                                                                   
Representative   Hawker  characterized   it  as  an   "absurd                                                                   
stretch".                                                                                                                       
                                                                                                                                
Representative Kelly requested an explanation.                                                                                  
                                                                                                                                
Mr. Tostevin explained  that the basis for using  the fund is                                                                   
both for  (a)(1)(A) and  (a)(1)(C).   When the Response  Fund                                                                   
was split  in 1994,  there was discussion  of using  the fund                                                                   
to  recover costs  incurred in  spills where  you tapped  the                                                                   
Response  Account.   He opined  that there  is a clear  legal                                                                   
basis to use the Fund as it is currently being used.                                                                            
                                                                                                                                
Co-Chair  Meyer redirected  attention  to the  purpose of  HB
238, which  is to  redirect $40  million of  the $50  million                                                                   
into a subaccount.                                                                                                              
                                                                                                                                
3:25:42 PM                                                                                                                    
                                                                                                                                
Representative  Gara  suggested  that  the intent  of  the  4                                                                   
cents  and 1  cent tax  was for  spill  prevention and  spill                                                                   
response work.   He maintained that the 4 cents  tax does not                                                                   
cover the  cost of spill prevention  and should be  closer to                                                                   
6 cents.    Co-Chair Meyer  thought this  bill would  provide                                                                   
more money toward that purpose.                                                                                                 
                                                                                                                                
LARRY  DIETRICK,  DIRECTOR, SPILL  PREVENTION  AND  RESPONSE,                                                                   
DEPARTMENT OF  ENVIRONMENTAL CONSERVATION,  acknowledged that                                                                   
the projections are good until 2010.                                                                                            
                                                                                                                                
3:28:14 PM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT CSHB 238  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying  fiscal notes.    There being  NO OBJECTION,  it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
CSHB 238(FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation and  with a new fiscal note  by the Department                                                                   
of  Revenue,   a  new  indeterminate   fiscal  note   by  the                                                                   
Department  of Environmental  Conservation,  and  with a  new                                                                   
zero fiscal note by the Department of Administration.                                                                           
                                                                                                                                
3:29:50 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 164                                                                                                            
                                                                                                                                
     "An  Act relating  to reporting  of  vessel location  by                                                                   
     certain  commercial passenger  vessels operating  in the                                                                   
     marine  waters of  the state,  to access  to vessels  by                                                                   
     licensed  marine engineers  for  purposes of  monitoring                                                                   
     compliance with  state and federal requirements,  and to                                                                   
     the  obligations  of those  engineers  while aboard  the                                                                   
     vessels; and providing for an effective date."                                                                             
                                                                                                                                
REPRESENTATIVE   KYLE   JOHANSEN,   Sponsor   explained   the                                                                   
legislation.   He reported that the Alaska  Constitution sets                                                                   
up a system of  checks and balances so no group  has absolute                                                                   
power.   These  apply to  the initiative  process in  several                                                                   
ways: the  legislature's power  to amend initiatives  and the                                                                   
legislature's  power to  control  expenditures  of the  state                                                                   
money,  make  changes  to  the   initiative,  and  decide  on                                                                   
expenditures.                                                                                                                   
                                                                                                                                
Representative  Johansen related  some of  the facts  brought                                                                   
out  in previous  committees.    The  cruise ship  fleet  has                                                                   
radically changed  since April  2003 when the  initiative was                                                                   
initially  filed.   Only two  ships  had advanced  wastewater                                                                   
treatment systems.   Today 24  out of 29 ships  have advanced                                                                   
wastewater  treatment systems,  which future  ships will  all                                                                   
have.   The Coast  Guard determined  that the discharge  from                                                                   
these systems is so clean it can  be released 24 hours a day,                                                                   
even in port.   The Department of Environmental  Conservation                                                                   
(DEC) testing  showed that the  effluent presents no  harm to                                                                   
humans or to the environment.                                                                                                   
                                                                                                                                
Representative Johansen reported  that there currently exists                                                                   
trained, independent contractors  and monitoring systems from                                                                   
DEC,  EPA, and  the  Coast Guard  on board  the  ships.   DEC                                                                   
maintains that the current system  works and does not need to                                                                   
be  supplemented by  the  Ocean Ranger  program.   The  state                                                                   
currently spends  about $500,000  on monitoring  programs and                                                                   
the  Ocean Ranger  program would  increase  this spending  by                                                                   
"several 100 percent".                                                                                                          
                                                                                                                                
Representative Johansen addressed  a change to the initiative                                                                   
which  replaces   the  requirement  that  Ocean   Rangers  be                                                                   
licensed certified  marine engineers.  Instead,  they will be                                                                   
required  to be  level  III wastewater  treatment  operators.                                                                   
Also, the  commissioner of DEC  now has the discretion  as to                                                                   
how to implement  the initiative and when to  place the Ocean                                                                   
Rangers on the vessels in Alaskan waters.                                                                                       
                                                                                                                                
Representative  Johansen  related  that  the  intent  of  the                                                                   
initiative has  been maintained, keeping safety  and costs in                                                                   
mind.   A  balance  has been  struck between  being  fiscally                                                                   
responsible and  getting the Ocean  Rangers on board  as soon                                                                   
as possible.                                                                                                                    
                                                                                                                                
3:36:37 PM                                                                                                                    
                                                                                                                                
Vice  Chair  Stoltze asked  about  a  requirement to  have  a                                                                   
marine engineer  on board.  Representative  Johansen reported                                                                   
that the initiative language specified  that a U.S. certified                                                                   
Coast  Guard  marine  engineer  be on  board,  however,  that                                                                   
person would not be a professional  in wastewater management.                                                                   
There  was concern  that  marine  engineers from  the  Alaska                                                                   
Marine Highway  System would  be taken  to fill Ocean  Ranger                                                                   
spots.  He maintained that professional  wastewater treatment                                                                   
specialists need to be on board the cruise ships.                                                                               
                                                                                                                                
Vice  Chair Stoltze  noted that  there was  little debate  on                                                                   
this  issue during  the  election.   Representative  Johansen                                                                   
reported that  one of the  initiative sponsors works  for the                                                                   
union representing the Alaska  Marine Highway.  He offered to                                                                   
provide previous  testimony as to the availability  of marine                                                                   
engineers.                                                                                                                      
                                                                                                                                
3:39:10 PM                                                                                                                    
                                                                                                                                
Representative Kelly summarized  that the commissioner of DEC                                                                   
would have the  discretion to make decisions  regarding Ocean                                                                   
Rangers,  including at  sea.    Representative Johansen  said                                                                   
that is correct.   He envisioned putting Ocean  Rangers on in                                                                   
Juneau, Ketchikan,  or Sitka because  of current  DEC support                                                                   
in those locations.  Representative  Kelly concluded that the                                                                   
commissioner has flexibility in  carrying out the initiative.                                                                   
                                                                                                                                
CSHB 164 (JUD) was heard and HELD in Committee for further                                                                      
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:41 PM.                                                                                           

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