Legislature(2007 - 2008)HOUSE FINANCE 519

01/30/2008 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 260 STATE OFFICERS COMPENSATION COMMISSION TELECONFERENCED
Moved CSHB 260(STA) Out of Committee
+ HB 284 PFD ALLOWABLE ABSENCE: FELLOWSHIPS TELECONFERENCED
Moved CSHB 284(FIN) Out of Committee
+ HB 296 EXTENDING BOARD OF PAROLE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      January 30, 2008                                                                                          
                         1:39 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:39:50 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas Jr.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Reggie Joule                                                                                                     
Representative Richard Foster                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Mike Doogan; Mike  Sica, Staff, Representative                                                                   
Bob  Lynn;  Pat Davidson,  Legislative  Auditor,  Legislative                                                                   
Audit  Division,  Legislative  Affairs  Agency;  Nicki  Neal,                                                                   
Director,    Division    of    Personnel,    Department    of                                                                   
Administration;  Debbie  Richter,  Director,  Permanent  Fund                                                                   
Division,  Department  of Revenue;  Mike  Stark, Vice  Chair,                                                                   
Alaska Board of Parole; Dwayne  Peeples, Deputy Commissioner,                                                                   
Department  of  Corrections;  Demian  Schane,  Self,  Juneau;                                                                   
Emily Ferry, Self, Juneau                                                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Robb  Kulin,   Student,  University   of  San  Diego;   Kathy                                                                   
Matsumoto,  Executive  Director,   Alaska  Board  of  Parole,                                                                   
Anchorage; Ed Rais, Chair, Alaska  Board of Parole, Anchorage                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 260    An  Act relating to  a State Officers  Compensation                                                                   
          Commission  and establishing  how legislators,  the                                                                   
          governor,  the lieutenant  governor, and  executive                                                                   
          department  heads shall  be compensated;  providing                                                                   
          for  an effective date  by repealing the  effective                                                                   
          dates  of certain  sections of  ch. 124, SLA  1986;                                                                   
          and providing for an effective date.                                                                                  
                                                                                                                                
          CS HB 260 (STA) was reported out of Committee with                                                                    
          a "no  recommendation" and  with fiscal note  #1 by                                                                   
          the Department of Administration.                                                                                     
                                                                                                                                
HB 284    An  Act   relating  to  participation   in  certain                                                                   
          student  fellowships as  an allowable absence  from                                                                   
          the   state  for   purposes   of  eligibility   for                                                                   
          permanent  fund  dividends;  and providing  for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS HB 284 (FIN) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with zero  note #1                                                                   
          by the Department of Revenue.                                                                                         
                                                                                                                                
HB 296    An Act extending the  termination date of the Board                                                                   
          of Parole; and providing for an effective date.                                                                       
                                                                                                                                
          HB 296 was reported  out Committee with a "do pass"                                                                   
          recommendation  and a new fiscal note  by the House                                                                   
          Finance Committee.                                                                                                    
                                                                                                                                
1:41:16 PM                                                                                                                    
HOUSE BILL NO. 284                                                                                                            
                                                                                                                                
     An  Act relating  to  participation  in certain  student                                                                   
     fellowships as  an allowable absence from  the state for                                                                   
     purposes  of eligibility  for permanent fund  dividends;                                                                   
     and providing for an effective date.                                                                                       
                                                                                                                                
REPRESENTATIVE  MIKE HAWKER, SPONSOR,  explained that  HB 284                                                                   
would  correct   an  inequity   in  the  statutes   regarding                                                                   
allowable  absences  for  Permanent   Fund  Dividends  (PFD).                                                                   
Current law  provides for an  allowable absence  for students                                                                   
who  are   "receiving  vocational,  professional,   or  other                                                                   
specific  education  on  a  full-time  basis  for  which,  as                                                                   
determined   by  the  Alaska   Commission  on   Postsecondary                                                                   
Education, a  comparable program is not  reasonably available                                                                   
in the  State."   He pointed  out that  for some reason,  the                                                                   
above statutory  language has been interpreted  by regulation                                                                   
to   exclude   students   who   are   participating   in   an                                                                   
international  educational exchange  under  a U.S.  Fulbright                                                                   
Scholarship.                                                                                                                    
                                                                                                                                
Representative  Hawker   continued,  the  Fulbright   Scholar                                                                   
Program, which  was signed  into law  by President  Truman in                                                                   
1946, is sponsored by the United  States Department of State,                                                                   
Bureau of Educational  and Cultural Affairs.   Each year, the                                                                   
program  sends 800  scholars  and professionals,  chosen  for                                                                   
their academic  merit and leadership  potential to  more than                                                                   
150 countries,  where they lecture  or conduct research  in a                                                                   
wide  variety of  fields.   Those  chosen  for the  Fulbright                                                                   
program  represent Alaska  and the United  States in  foreign                                                                   
countries  all over  the  world.   Grants  are typically  for                                                                   
three months to one year.                                                                                                       
                                                                                                                                
Representative  Hawker urged the  Committee's support  of the                                                                   
bill to correct the inequity in current law.                                                                                    
                                                                                                                                
1:46:20 PM                                                                                                                    
                                                                                                                                
DEMAIN  SCHANE, SELF,  JUNEAU,  testified in  support of  the                                                                   
bill.   He  indicated  he currently  works  for the  National                                                                   
Oceanic & Atmospheric  Administration in Juneau.   He pointed                                                                   
out  that the  proposed  amendment  adds one  more  excusable                                                                   
absence, which  he thought worthy.   Mr. Schane noted  he had                                                                   
spent  10  months  in Iceland  on  a  U.S.  Fulbright  grant,                                                                   
studying  the  European  Union's   mechanism  for  regulating                                                                   
escapes from farm fishing operations.                                                                                           
                                                                                                                                
Mr.  Schane  continued,  the   Fulbright  Program  is  funded                                                                   
through the U.S. Department of  State and promotes a cultural                                                                   
and  educational   exchange  program   in  numerous   foreign                                                                   
countries.  The  program offers U.S. citizens  an opportunity                                                                   
to  further their  understanding  of issues  and policies  of                                                                   
international  significance  and  experience  and  how  other                                                                   
cultures endeavor  to resolve the issues.  He  urged that the                                                                   
Legislature  recognize  and  support   Alaskans'  efforts  to                                                                   
pursue those opportunities by  allowing them to do so without                                                                   
losing  their residential  status and  eligibility for  a PFD                                                                   
dividend disbursement.                                                                                                          
                                                                                                                                
1:48:26 PM                                                                                                                    
                                                                                                                                
EMILY FERRY, SELF, JUNEAU, echoed  sentiments of the previous                                                                   
testifier, voicing support for  adoption of the legislation &                                                                   
the amendment.   She stated that she and her  husband had the                                                                   
intent to return to the State  and indeed did return to start                                                                   
their family.   She reiterated  her support that  Amendment 1                                                                   
be passed as it makes the dividend retroactive.                                                                                 
                                                                                                                                
1:49:58 PM                                                                                                                    
                                                                                                                                
ROBB   KULIN,  (TESTIFIED   VIA   TELECONFERENCE),   STUDENT,                                                                   
UNIVERSITY  OF  SAN  DIEGO,  testified   in  support  of  the                                                                   
proposed legislation and the attached  amendment.  He pointed                                                                   
out he currently is in a doctorate  program at the University                                                                   
of California and prior to that,  he had participated in 2004                                                                   
in the Fulbright scholar program.   He reiterated his support                                                                   
                                                                                                                                
1:54:41 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
1:55:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked the  number of  students that  would be                                                                   
eligible recipients.   Representative Hawker  understood that                                                                   
for Alaskans,  it would be  less than  ten per year  and that                                                                   
only three were affected in the last two years.                                                                                 
                                                                                                                                
Vice-Chair Stoltze recalled that  one of his constituents had                                                                   
been a recipient of the Fulbright scholarship.                                                                                  
                                                                                                                                
1:56:26 PM                                                                                                                    
                                                                                                                                
Representative  Gara  noted  support   for  the  legislation,                                                                   
however,  pointed  out other  exceptions  of  concern to  the                                                                   
receipt of the  PFD, including the Peace Corp  and Ameri-Corp                                                                   
[National Peace Corp] volunteers.                                                                                               
                                                                                                                                
Representative Hawker  observed that volunteers  in the Peace                                                                   
Corp are included, indicated in  language on Page 2, Line 27.                                                                   
Representative Gara  reiterated that Ameri-Corp  participants                                                                   
should  also be  included.   Representative Hawker  responded                                                                   
that issue had not yet been addressed.                                                                                          
                                                                                                                                
1:57:47 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  MOVED  to  ADOPT  Amendment  1,  #25-                                                                   
LS1142\A.1, Cook,  1/24/08.  (Copy on File).   Co-Chair Meyer                                                                   
OBJECTED for discussion purposes.                                                                                               
                                                                                                                                
Representative  Hawker  explained the  amendment.   When  the                                                                   
bill was originally drafted, an  effective date of January 1,                                                                   
2009, was included  for the prospective application.   He had                                                                   
spoken with Legislative  Legal regarding persons  in the past                                                                   
two years  and their efforts  to get the regulation  changed.                                                                   
Legislative Legal  proposed the language of  the amendment to                                                                   
address the concern.  He believed  that the proposed language                                                                   
"rights a wrong".                                                                                                               
                                                                                                                                
Representative  Gara revisited  the  retroactive  issue.   He                                                                   
explained  that  the Courts  normally  interpret  retroactive                                                                   
language   such  that,  they   have  concerns   retroactively                                                                   
removing   rights.     No  one   can   change  criminal   law                                                                   
retroactively  and that  important  legal rights  can not  be                                                                   
taken away.                                                                                                                     
                                                                                                                                
Co-Chair Meyer  asked how  an amount  could be determined  if                                                                   
the number of students is not  known; he questioned where the                                                                   
dollars  would come  from.   Representative  Hawker  admitted                                                                   
that  the State  does not  have  an accurate  account of  the                                                                   
number of students  that would be involved.   He believed the                                                                   
diluting effect  would be insignificant  to the PFD.   He was                                                                   
certain it would be a small number of students affected.                                                                        
                                                                                                                                
2:01:19 PM                                                                                                                    
                                                                                                                                
The funds  would be  taken from  the earning  reserve of  the                                                                   
Permanent Fund.                                                                                                                 
                                                                                                                                
Representative Thomas commented  on the retroactive provision                                                                   
and  the relationship  to other  applicants.   Representative                                                                   
Hawker  understood  that  there  are  statutory  requirements                                                                   
clarifying application  dates.  If the student  anticipates a                                                                   
dividend, they  must submit an application  indicating intent                                                                   
to return  and remain in Alaska.   Otherwise, they  would not                                                                   
qualify.                                                                                                                        
                                                                                                                                
2:02:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  referenced testimony  from Mr. Kulin,  in San                                                                   
Diego.  Representative Hawker  responded that Mr. Kulin fully                                                                   
intends to return to Alaska to practice his profession.                                                                         
                                                                                                                                
Representative Kelly  asked if the student would  be required                                                                   
to  return  to  Alaska  in order  to  receive  the  dividend.                                                                   
Representative   Hawker  deferred   that   response  to   the                                                                   
Department  of  Revenue.    At  present  time,  the  language                                                                   
specifies only the intent to return.                                                                                            
                                                                                                                                
2:03:44 PM                                                                                                                    
                                                                                                                                
DEBBIE RICHTER,  DIRECTOR, PERMANENT FUND  DIVIDEND DIVISION,                                                                   
DEPARTMENT OF  REVENUE, explained  that the funds  from which                                                                   
the dividends would  be paid, are funds held  back each year.                                                                   
The money is there; the Division  does not anticipate a large                                                                   
number of requests.                                                                                                             
                                                                                                                                
2:04:34 PM                                                                                                                    
                                                                                                                                
Representative  Kelly reiterated  his question, whether,  the                                                                   
student would  be required  to return to  Alaska in  order to                                                                   
actually receive  the PFD.  Ms. Richter  explained currently,                                                                   
the  dividends are  paid when  the  application is  received;                                                                   
students  who are  out of  State, fill  out a  form from  the                                                                   
school, indicating  enrollment.  Those students  certify with                                                                   
the application  that they intent  to return to Alaska.   She                                                                   
acknowledged   that  "intent"  is   a  difficult   matter  to                                                                   
determine.  With  regard to the amendment, the  Division most                                                                   
likely  has  those  applications  on file,  since  they  were                                                                   
originally denied.                                                                                                              
                                                                                                                                
Representative  Kelly  worried about  the  growing number  of                                                                   
applications.    He  suggested   that  students  actually  be                                                                   
required  to  return  to  the   State  before  receiving  the                                                                   
dividend.   Ms. Richter was not  aware of a  requirement ever                                                                   
written  into   the  language,   stipulating  that   students                                                                   
actually    return   before    receiving   their    dividend.                                                                   
Representative  Hawker  mentioned escrowing  dividends  until                                                                   
the student returns.  He provided  a brief history of such an                                                                   
occurrence.  He  believed that as a policy  call, there would                                                                   
be merits to having that discussion.                                                                                            
                                                                                                                                
Representative  Kelly  addressed   the  idea  of  retroactive                                                                   
claims.   Ms.  Richter  had no  previous  history with  those                                                                   
circumstances.                                                                                                                  
                                                                                                                                
Representative Hawker explained  his motive, stating if there                                                                   
was a new policy change, it should  be prospectively applied.                                                                   
He believed  that the  exception in  the statutory  language,                                                                   
should not  have applied to  the Fulbright scholars  since it                                                                   
does not apply  to post secondary students.   In the specific                                                                   
case at hand,  the retroactively language  provides dividends                                                                   
to that  class of  student.  He  believed that the  amendment                                                                   
clarifies the original intent.                                                                                                  
                                                                                                                                
2:09:34 PM                                                                                                                    
                                                                                                                                
Representative Kelly questioned  how the determination of the                                                                   
length of the retroactivity was  made; he inquired the number                                                                   
of applicants  expected.   He agreed  anyone having  received                                                                   
the    Fulbright    scholarship     should    be    eligible.                                                                   
Representative   Hawker  explained   that   his  office   had                                                                   
discussions  with some of  the students  and then decided  to                                                                   
prepare  the  legislation.     He  offered  to  entertain  an                                                                   
amendment to Amendment 1.  Representative  Kelly thought that                                                                   
having the language on record, would clarify intent.                                                                            
                                                                                                                                
2:11:29 PM                                                                                                                    
                                                                                                                                
Representative Gara  proposed inclusion of a  memorandum from                                                                   
the Legislative  Legal Services.   He  believed if  Section 2                                                                   
was  retroactive,  it  would   provide  for  every  allowable                                                                   
absence.   He did  not think  that was  the intention  of the                                                                   
bill's sponsor.  He recommended  making Section 1 retroactive                                                                   
rather  than Section 2.   Representative  Hawker pointed  out                                                                   
that Amendment 1  had been drafted by Tam Cook,  Attorney and                                                                   
Director  of  Legislative Legal.    He  added that  he  would                                                                   
request  a   reply  to   the  amendment   by  Ms.   Cook  for                                                                   
Representative Gara.                                                                                                            
                                                                                                                                
2:13:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault mentioned the  numerous PFD issues that had                                                                   
come to his office, while indicating  his appreciation to the                                                                   
Division for their willingness and work on the concerns.                                                                        
                                                                                                                                
In  response  to issues  suggested  by  Representative  Gara,                                                                   
Representative  Hawker stated it  would be effective  only if                                                                   
exceptions  were indicated  in items  1-16 and  had been  put                                                                   
into place after January 1, 2005.   The two affected would be                                                                   
Peace  Corp  and  the Olympic  Teams.    Representative  Gara                                                                   
understood  that it  would  also  apply to  Lines  1-14.   He                                                                   
reiterated  that   everything  in  Section  2   would  become                                                                   
retroactive.  Representative Hawker  agreed that was accurate                                                                   
but would  have no consequence  because items 1-14  have been                                                                   
in  place since  before 2005,  when  the retroactivity  would                                                                   
apply.   Co-Chair Meyer  recommended a  letter from  Ms. Cook                                                                   
would satisfy Representative Gara's concerns.                                                                                   
                                                                                                                                
2:15:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer WITHDREW his OBJECTION  to Amendment 1.  There                                                                   
being NO further OBJECTION, Amendment 1 was adopted.                                                                            
                                                                                                                                
2:16:22 PM                                                                                                                    
                                                                                                                                
Representative  Thomas commented on  members of the  National                                                                   
Guard  being   sent  to   Iraq  and   denial  of  their   PFD                                                                   
applications  when submitted late.   He  asked the  number of                                                                   
National   Guard   members   who   have   received   denials.                                                                   
Additionally, he  worried about  the elders, who  suffer from                                                                   
Alzheimer's and forget to file.                                                                                                 
                                                                                                                                
2:18:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to  REPORT CS HB  284 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  284 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of Revenue.                                                                                                                     
                                                                                                                                
2:19:05 PM                                                                                                                    
#HB296                                                                                                                        
HOUSE BILL NO. 296                                                                                                            
                                                                                                                                
     An Act extending the termination date of the Board of                                                                      
     Parole; and providing for an effective date.                                                                               
                                                                                                                                
MIKE SICA, STAFF, REPRESENTATIVE  BOB LYNN, explained that HB
296 would extend the termination  date of the Board of Parole                                                                   
until June 30, 2016.                                                                                                            
                                                                                                                                
The Board  of parole serves as  the parole authority  for the                                                                   
State.  As  such, the Board fulfills the  Alaska Constitution                                                                   
requirement that  the State establish  a parole system.   The                                                                   
Board's  primary   responsibilities  include   determining  a                                                                   
prisoner's suitability  for discretionary parole  and setting                                                                   
conditions for  individuals receiving parole.   Another major                                                                   
responsibility  of the  Board is  offering parole  revocation                                                                   
hearings.      The  Legislative   Audit   Division   recently                                                                   
concluded,  there is  a demonstrated  need for  the Board  of                                                                   
Parole and  that the terminated  date be extended  until June                                                                   
30, 2016.  He urged support of the bill.                                                                                        
                                                                                                                                
2:21:28 PM                                                                                                                    
                                                                                                                                
Representative  Gara  suggested   that  since  there  was  no                                                                   
controversy on  the bill, the  Committee should pass  it out.                                                                   
Co-Chair  Meyer  responded  that  the  Committee  would  hear                                                                   
public testimony.                                                                                                               
                                                                                                                                
2:22:22 PM                                                                                                                    
                                                                                                                                
MIKE STARK,  VICE CHAIR, ALASKA  BOARD OF PAROLE,  introduced                                                                   
Dwayne   Peeples,   Deputy   Commissioner,    Department   of                                                                   
Corrections.     Mr.  Stark  pointed  out  that   the  Alaska                                                                   
Constitution  calls   for  a  parole  system.     Legislative                                                                   
implementation  of that has  been through  the creation  of a                                                                   
Parole Board.   The Parole Board is the most  active board or                                                                   
commission  in the  State.   There  are five  members on  the                                                                   
board, which  works more  than 180 days  per year  to address                                                                   
risk  and  release  issues  and  provide  protection  of  the                                                                   
public.  He urged that the Board sunset be extended.                                                                            
                                                                                                                                
2:23:59 PM                                                                                                                    
                                                                                                                                
KATHY  MATSUMOTO, (TESTIFIED  VIA TELECONFERENCE),  EXECUTIVE                                                                   
DIRECTOR,  ALASKA  BOARD  OF   PAROLE,  ANCHORAGE,  spoke  in                                                                   
support of the  legislation.  She emphasized  that the Parole                                                                   
Board provides a  valuable service to the citizens  of Alaska                                                                   
and work  closely with  the Department  of Corrections.   She                                                                   
highlighted  the  roll  of  the  Board  in  performing  basic                                                                   
information gathering  to help prisoners as they  move out of                                                                   
the system.   She pointed  out recommendations  for treatment                                                                   
programs  to help  address  recidivism.   She  indicated  the                                                                   
Board's support  of the  requests made  by the Department  of                                                                   
Corrections to fund treatment programs for offenders.                                                                           
                                                                                                                                
2:26:01 PM                                                                                                                    
                                                                                                                                
ED RAIS, (TESTIFIED VIA TELECONFERENCE),  CHAIR, ALASKA BOARD                                                                   
OF PAROLE, ANCHORAGE, testified  in support for the extension                                                                   
of the Parole Board.   He spoke to the key  challenges of the                                                                   
Board based  on the  number of people  coming out  of prison.                                                                   
Discretionary  hearings  are driven  by  statute.   Mr.  Rais                                                                   
urged passage of the sunset audit,  reiterating that the work                                                                   
of the Parole Board is extensive.                                                                                               
                                                                                                                                
Mr.  Rais discussed  the  diligence of  the  Board to  insure                                                                   
public safety.   He hoped in  the future, the Board  would be                                                                   
able to  evaluate & implement  statistics for  information to                                                                   
increase appropriations  and be funded like  other nationwide                                                                   
parole  boards.   He  indicated  that re-entry  programs  are                                                                   
important aspects for the future,  especially in programs for                                                                   
substance abuse  & sex offender treatment.   Currently, there                                                                   
are 2.3 million people incarcerated throughout the U.S.                                                                         
                                                                                                                                
2:30:23 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
2:30:58 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze asked if parole  had been addressed in the                                                                   
Alaska Constitution.   He indicated  his support  for passage                                                                   
of the bill.                                                                                                                    
                                                                                                                                
2:32:27 PM                                                                                                                    
                                                                                                                                
Representative  Kelly expounded  that the  average member  of                                                                   
the public does not see the accomplishments  of the Board but                                                                   
rather the failures of the Board  when something bad  happens                                                                   
by  a parolee.    He  inquired if  there  had been  an  audit                                                                   
determination to measure how well the Board is doing.                                                                           
                                                                                                                                
PAT   DAVIDSON,  LEGISLATIVE   AUDITOR,   LEGISLATIVE   AUDIT                                                                   
DIVISION,  LEGISLATIVE AFFAIRS  AGENCY,  advised that  during                                                                   
the  course  of   the  audit,  the  Division   evaluated  the                                                                   
effectiveness of  the discretionary parole decisions  made by                                                                   
the  Board.   The Board  takes  a risk-based  approach.   The                                                                   
number of  potential parolees with  the lowest risk  is given                                                                   
the  highest rate  of  paroles.   That  group  will have  the                                                                   
lowest rate of the parole revoked,  compared to the other end                                                                   
of  the   spectrum,  having   the  highest   risk  group   of                                                                   
individuals with  only a 24%  granted parole.   Revocation is                                                                   
at  about  43%.   During  the  course  of the  audit,  parole                                                                   
revocation was used  as the measure of effectiveness  for the                                                                   
Board's  decision  making.   She  maintained  that  the  risk                                                                   
assessment model is working.                                                                                                    
                                                                                                                                
2:35:31 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  addressed  audit  recommendations  for                                                                   
public  meetings   with  the  parolees.    He   worried  that                                                                   
revocation of parole is different  from someone being injured                                                                   
and he wanted to determine a way  to keep track of the number                                                                   
of felons.  Ms. Davidson replied  that would not be possible.                                                                   
She suggested  that by providing  more opportunities  for the                                                                   
general  public  by holding  public  meetings  could help  to                                                                   
develop missions  and measures,  putting the information  and                                                                   
annual  reports in  place.   The audit  attempted to  compare                                                                   
discretionary parole rates against  offenders who did not get                                                                   
parole but  were released  from jail.   There was  not enough                                                                   
data to make the comparison.                                                                                                    
                                                                                                                                
2:38:02 PM                                                                                                                    
                                                                                                                                
Representative  Kelly requested  criteria measuring  how well                                                                   
the job was being  done.  In the current system,  victims are                                                                   
not protected;  he thought  that public  meetings could  help                                                                   
measure how well the Board is actually doing their work.                                                                        
                                                                                                                                
2:39:33 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze asked  if the Office  of Victim's  Rights                                                                   
had  been  contacted  before  the  audit  was  done  to  help                                                                   
determine  certain  aspects.    Ms. Davidson  said  yes  that                                                                   
office had been  included as well as the  victim notification                                                                   
process.  Previously, the process  included only the Board of                                                                   
Parole,  however,   a  division  within  the   Department  of                                                                   
Corrections has taken up the issues.   Legislative  Audit has                                                                   
recommended   that   the   Department    provide   a   formal                                                                   
communication  system between  those organizations  to insure                                                                   
that victim notification does occur.                                                                                            
                                                                                                                                
2:40:57 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  recommended  that the  Ombudsman  Office                                                                   
also be included.                                                                                                               
                                                                                                                                
Co-Chair Meyer pointed  out a new fiscal note  dated 1/30/08,                                                                   
indicating  the  funding  in  the  Governor's  proposed  FY09                                                                   
budget.                                                                                                                         
                                                                                                                                
2:41:55 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to REPORT  HB 296 out  of Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
new  fiscal  note.   There  being  NO  OBJECTION, it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
HB  296  was   reported  out  Committee  with   a  "do  pass"                                                                   
recommendation  and a new  fiscal note  by the House  Finance                                                                   
Committee.                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 260                                                                                                            
                                                                                                                                
     An  Act  relating  to  a   State  Officers  Compensation                                                                   
     Commission   and  establishing   how  legislators,   the                                                                   
     governor,   the  lieutenant   governor,  and   executive                                                                   
     department heads shall be  compensated; providing for an                                                                   
     effective  date  by  repealing the  effective  dates  of                                                                   
     certain  sections of  ch. 124, SLA  1986; and  providing                                                                   
     for an effective date.                                                                                                     
                                                                                                                                
REPRESENTATIVE MIKE  DOOGAN, SPONSOR, spoke in  support of HB
260, based  on the only  successful salary commission  in the                                                                   
State of Alaska.   The Commission was active in  1977 & 1979,                                                                   
when  citizen   members  of  the  Alaska   Salary  Commission                                                                   
released reports on how much certain  public officials should                                                                   
be paid.   The original Commission  had a broader  scope than                                                                   
the one presented in HB 260.                                                                                                    
                                                                                                                                
Since  1979,  there has  not  been  a comprehensive  look  at                                                                   
compensation of members above  a certain level.  HB 260 would                                                                   
establish  a  compensation  commission   consisting  of  five                                                                   
members appointed by the Governor.   Former legislators would                                                                   
be prevented  from serving on  the commission until  they had                                                                   
been  out of  office for  four  years.   Members would  serve                                                                   
staggered  terms   and  would   be  assigned  to   reconsider                                                                   
compensation every two years.                                                                                                   
                                                                                                                                
Representative  Doogan explained  that the  decisions of  the                                                                   
Commission would  become law unless specifically  disapproved                                                                   
by the legislature within 60-days  of receipt.  The effective                                                                   
date  of  the  actions  would  be  tied  to  the  legislature                                                                   
appropriating funds.                                                                                                            
                                                                                                                                
2:46:14 PM                                                                                                                    
                                                                                                                                
Representative  Doogan pointed  out that  in the House  State                                                                   
Affairs  (STA)   Committee,  Representative   Coghill  voiced                                                                   
confusion if the vehicle for enacting  the findings should be                                                                   
a resolution or  a bill.  He pointed out the  memo from Legal                                                                   
Services explaining the decision to place it in bill form.                                                                      
                                                                                                                                
Vice-Chair Stoltze  questioned if the task of  the Commission                                                                   
would be  similar to  that of  the task force  recommendation                                                                   
for passing gambling.   Representative Doogan  thought if the                                                                   
issue  was  left   to  legislators,  there  would   never  be                                                                   
consideration for  fear of constituent  disapproval.   In the                                                                   
past,  it was  determined  that  a citizen  commission  could                                                                   
work.                                                                                                                           
                                                                                                                                
Vice-Chair Stoltze  informed that  the Gaming Commission  had                                                                   
attempted to  insulate members from the  political pressures.                                                                   
Representative  Doogan responded  that legislators  are never                                                                   
insulted   from  political  pressures;   however,   the  bill                                                                   
attempts  to provide an  "even-handed"  look at the  process.                                                                   
It is  political at  every stage  of the  process.   Co-Chair                                                                   
Meyer said that the Anchorage  Assembly does use a Commission                                                                   
as proposed and that it works well.                                                                                             
                                                                                                                                
2:50:04 PM                                                                                                                    
                                                                                                                                
Representative Hawker  addressed the philosophical  component                                                                   
of the legislation.  Previous  testimony indicates that there                                                                   
had been  intent, resulting in  action to raise  the salaries                                                                   
of the  Legislature.  He  wondered if the legislature  should                                                                   
be   a   choice  for   public   service   without   receiving                                                                   
compensation,   acting  more   like   a  volunteer   service.                                                                   
Representative  Doogan stated  the bill  was not proposing  a                                                                   
plan to do anything particular  with legislative salaries but                                                                   
rather proposes creating a commission  of citizens to look at                                                                   
the question  in a  more even way.    There  are a  number of                                                                   
ideas the commission could determine  such as a system paying                                                                   
for  longevity  of members.    He  emphasized his  intent  in                                                                   
sponsoring  the legislation  is  to create  a discussion  and                                                                   
reviewing arena.                                                                                                                
                                                                                                                                
2:53:06 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  understood  that  the intent  of  the                                                                   
legislation  was to  increase legislative  compensation.   He                                                                   
asked if that was true.                                                                                                         
                                                                                                                                
Representative  Doogan  explained that  in  order  to have  a                                                                   
legislature  reflecting  the population's  age  balance,  the                                                                   
State would  have to offer  higher compensation.   He pointed                                                                   
out   that   legislators   in   their   50's   &   60's   are                                                                   
overrepresented and  that those in their 20's &  30's are not                                                                   
adequately represented.   He discussed  that if  salaries are                                                                   
increased, there would be a change  in the age and make-up of                                                                   
the legislature.                                                                                                                
                                                                                                                                
2:54:55 PM                                                                                                                    
                                                                                                                                
Representative Hawker commented  if that was the intent or if                                                                   
rather more of an exploratory  outcome. Representative Doogan                                                                   
believed the  discussion is about  what might  happen through                                                                   
passage of the legislation.                                                                                                     
                                                                                                                                
Representative  Hawker  referred   to  Page  5,  regarding  a                                                                   
recommendation that the Commission  "may not" have the effect                                                                   
of reducing  compensation or  benefits of  someone who  is in                                                                   
office;  he  asked   if  that  would  apply   to  legislative                                                                   
salaries.     Representative  Doogan  advised   that  he  had                                                                   
attempted to keep the Legislature  out of the bill as much as                                                                   
possible.                                                                                                                       
                                                                                                                                
Representative  Hawker  referenced   Line  17,  Page  5,  the                                                                   
"policy  of legislature  that  the commission  recommends  an                                                                   
equitable rate  for legislators."  He asked  what "equitable"                                                                   
meant.  Representative Doogan  replied the definition was not                                                                   
attempting to determine compensation.   Representative Hawker                                                                   
suggested  it  should  be  equal  treatment  under  the  law.                                                                   
Representative  Doogan  said   yes.    Representative  Hawker                                                                   
advised  that the  language  is stating  exactly  what it  is                                                                   
intended.                                                                                                                       
                                                                                                                                
2:57:40 PM                                                                                                                    
                                                                                                                                
In   response   to   a   query    by   Representative   Gara,                                                                   
Representative Doogan expected  that if the bill were to pass                                                                   
that there would  be compensation determined  by longevity of                                                                   
legislators.                                                                                                                    
                                                                                                                                
Co-Chair Meyer clarified if the  intent of the Commission was                                                                   
to   look   at   how   other   States   handle   the   issue.                                                                   
Representative  Doogan informed  that  the handout  addresses                                                                   
other state's policies and procedures.                                                                                          
                                                                                                                                
3:00:43 PM                                                                                                                    
                                                                                                                                
Representative   Nelson   made  clear   that   to  offer   no                                                                   
compensation  for  the  legislative   positions  would  be  a                                                                   
disincentive to people considering  whether to run for office                                                                   
or not.  She  thought that there would be  a disproportionate                                                                   
number of  wealthy and  retired people  holding office.   She                                                                   
hoped  to  encourage  more  variety  of  candidates  to  step                                                                   
forward.  She thought  that the 90 day session  makes it more                                                                   
appealing,  providing more  time for  other employment.   She                                                                   
mentioned that the  legislation to move the  capital was also                                                                   
being  put  forward  as  an  opportunity  for  better  public                                                                   
participation while  serving in the Legislature.   She stated                                                                   
she did not support that legislation.                                                                                           
                                                                                                                                
Representative  Nelson reiterated  that it  is wrong  to have                                                                   
more rich  and retired  people doing the  work for  the State                                                                   
and that it is  better for the legislative body  to have more                                                                   
variety in who serves.  Representative  Doogan wholeheartedly                                                                   
agreed.   He  added that  many  people are  kept from  public                                                                   
office  because  of  their obligations  in  life  versus  the                                                                   
compensation offered.                                                                                                           
                                                                                                                                
3:03:03 PM                                                                                                                    
                                                                                                                                
Representative Thomas  commented on his determination  to run                                                                   
for public office and the losses  incurred personally because                                                                   
of the number of special sessions,  affecting his livelihood.                                                                   
He  noted  that it  actually  him  approximately $70  to  $80                                                                   
thousand dollars  per year.   He hoped  the process  would be                                                                   
better controlled through a public commission.                                                                                  
                                                                                                                                
Co-Chair  Meyer agreed that  it is  out of  the hands  of the                                                                   
legislators.    He  noted  in   California,  legislators  are                                                                   
salaried at $110 thousand dollars  per year but that they are                                                                   
not allowed to hold any other job.                                                                                              
                                                                                                                                
Vice-Chair Stoltze agreed that  the ideas presented have been                                                                   
intriguing.    The  founders  of  the  Constitution  did  not                                                                   
establish criteria for legislator's salaries.                                                                                   
                                                                                                                                
3:08:08 PM                                                                                                                    
                                                                                                                                
NICKI NEAL,  DIRECTOR, DIVISION  OF PERSONNEL, DEPARTMENT  OF                                                                   
ADMINISTRATION,   offered   to   answer  questions   of   the                                                                   
Committee.                                                                                                                      
                                                                                                                                
3:08:41 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Representative Kelly believed  that there is no easy solution                                                                   
to the  issue of a  citizen versus professional  legislature.                                                                   
He  personally leaned  toward  a citizen's  legislature.   He                                                                   
remembered  a  previous  salary   proposal  of  $94  thousand                                                                   
dollars  per  year.   He  encouraged  the natural  &  healthy                                                                   
tension remains in  place.  He believed that  moving toward a                                                                   
higher salary,  determines a decision to have  a professional                                                                   
legislature in place.   He hoped that whichever  decision was                                                                   
made, it would work well & fluid.                                                                                               
                                                                                                                                
3:13:09 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer agreed  that the current  system is  working.                                                                   
He hoped that when the Commission  does looks at other states                                                                   
of a similar size  & issues, they would be able  to determine                                                                   
that Alaska does not offer or need a full time job.                                                                             
                                                                                                                                
Representative Crawford  acknowledged there is  no accounting                                                                   
for who  the public  chooses to  represent  them.  He  agreed                                                                   
that the  compensation issues  should be determined  from non                                                                   
legislative  persons.    He indicated  his  support  for  the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Representative  Hawker voiced confusion  on the issue,  which                                                                   
raises philosophical concerns  on both sides of the argument.                                                                   
If the desired  outcome is to increase  legislative salaries,                                                                   
the  legislation  is the  way  to accomplish  that;  however,                                                                   
handing the responsibility  off to a public  Commission could                                                                   
provide too  much legislative  authority to  that group.   He                                                                   
recommended it be discussed through  the legislative process.                                                                   
He noted  that the  recommendations of  the Commission  could                                                                   
take  the effect  of  law unless  a  bill is  introduced  and                                                                   
objection  made by  the Legislature.   Representative  Doogen                                                                   
understood that  the recommendations  would be a  bill, which                                                                   
would have  to be disapproved  by the Legislature  within 60-                                                                   
days.                                                                                                                           
                                                                                                                                
Representative Hawker stated that  was not clear in the bill.                                                                   
Representative  Doogan agreed.    He added  that the  central                                                                   
fact is  that if the Commission  determines a  higher salary,                                                                   
the effective date  of that recommendation would  be when the                                                                   
appropriation  passes.   The dollars  would not be  available                                                                   
until  an  appropriation  passes.    Ultimately,  it  is  the                                                                   
Legislature's responsibility to fund it.                                                                                        
                                                                                                                                
Representative  Hawker stated  it is "complex  effectiveness"                                                                   
and  thought   that  as  a   Commission,  they   should  make                                                                   
recommendations so that the elected  policy body can make the                                                                   
decision.                                                                                                                       
                                                                                                                                
3:18:49 PM                                                                                                                    
                                                                                                                                
Representative  Doogan  said that  had  been  discussed.   He                                                                   
believed it puts it back in the  hands of the legislature and                                                                   
then they  would determine the need  to pass or not  pass the                                                                   
bill.                                                                                                                           
Representative Nelson commented  that the current method used                                                                   
is  that of  the federal  rate of  per diem.   Whenever  that                                                                   
amount is increased,  the press broadcasts it;  however, when                                                                   
it  decreases,  it is  never  publicized.   She  agreed  with                                                                   
Representative Doogan and doubted  if the issue would ever be                                                                   
addressed  up by the  Legislature.   She remembered  when the                                                                   
per  diem  actually  increased  and  how  that  affected  the                                                                   
public's perspective.   She maintained  that the  present pay                                                                   
rate for  legislators is  good and that  compared to  jobs in                                                                   
most districts, it pays well.                                                                                                   
                                                                                                                                
3:22:11 PM                                                                                                                    
                                                                                                                                
Representative Thomas assumed  that the bill intended to keep                                                                   
a  citizen's legislature.   Representative  Doogan  responded                                                                   
that the  idea was not  to debate whether  it would  remain a                                                                   
citizen's legislature.                                                                                                          
                                                                                                                                
Representative  Thomas  added that  if  the  public does  not                                                                   
think their  legislator is  doing a good  job, they  will not                                                                   
re-elect them.                                                                                                                  
                                                                                                                                
3:24:06 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer noted  the back-up  materials indicating  how                                                                   
other states  determine compensation, pointing  out that most                                                                   
do  have  a commission.    He  reiterated  that he  had  been                                                                   
involved is  a similar system  when working on  the Anchorage                                                                   
City Council and  was comfortable with the  approach proposed                                                                   
in the legislation.                                                                                                             
                                                                                                                                
Co-Chair Meyer  referenced the  fiscal note.   Representative                                                                   
Doogan  explained that  the  request in  the  amount of  $7.5                                                                   
thousand dollars  would cover travel and per  diem costs; the                                                                   
salary is zero.                                                                                                                 
                                                                                                                                
3:26:50 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to  REPORT CS HB  260 (STA)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  260 (STA)  was reported  out of  Committee with  a "no                                                                   
recommendation" and with fiscal  note #1 by the Department of                                                                   
Administration.                                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:27 P.M.                                                                                          

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