Legislature(2007 - 2008)HOUSE FINANCE 519

02/19/2008 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 267 WILDLIFE VIOLATOR COMPACT TELECONFERENCED
Moved CSHB 267(RES) Out of Committee
+ HB 193 POLICE STANDARDS COUNCIL MEMBERSHIP TELECONFERENCED
Heard & Held
+= HJR 2 CONST.AM:NO GAMING WITHOUT VOTER APPROVAL TELECONFERENCED
Scheduled But Not Heard
<Teleconference Listen Only>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 65 PERSONAL INFORMATION & CONSUMER CREDIT TELECONFERENCED
Moved CSHB 65(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 19, 2008                                                                                          
                         1:39 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:39:51 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 John Harris                                                                                                      
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Lori Davey,  President, Motznik  Information Services;  Megan                                                                   
Foster, Staff, Representative  Les Gara; Kevin Brooks, Deputy                                                                   
Commissioner,  Department of  Administration;  Representative                                                                   
Bob Roses,  Sponsor; Walt  Monegan, Commissioner,  Department                                                                   
of Public  Safety;  Mark Drygas,  Battalion Chief,  Fairbanks                                                                   
Fire    Department,    Alaska    Professional    Firefighters                                                                   
Association;  Jeff Landvatter,  Alaska State Trooper;  Jeanne                                                                   
Ostnes, Staff,  Representative Craig Johnson;  Representative                                                                   
Craig Johnson, Sponsor; Representative Nancy Dahlstrom.                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Terry Vrabec, Director, Alaska  Police Standards Council; Bob                                                                   
Claus,  Self, Craig;  Steve  Smith, Deputy  Chief,  Anchorage                                                                   
Police   Department;   Chuck   Copp,  Chief,   Kenai   Police                                                                   
Department;  Rod  Arno, Executive  Director,  Alaska  Outdoor                                                                   
Council; Captain  Burke Waldron, Operations  Director, Alaska                                                                   
Wildlife Troopers.                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 65     "An Act relating to breaches of security involving                                                                    
          personal  information,  credit  report  and  credit                                                                   
          score    security    freezes,    consumer    credit                                                                   
          monitoring,  credit accuracy, protection  of social                                                                   
          security  numbers,  care  of records,  disposal  of                                                                   
          records,   identity   theft,  furnishing   consumer                                                                   
          credit header information,  credit cards, and debit                                                                   
          cards,  and to  the jurisdiction  of the office  of                                                                   
          administrative  hearings; amending Rule  60, Alaska                                                                   
          Rules  of Civil  Procedure;  and  providing for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          CS HB 65 (FIN) was REPORTED out of Committee with                                                                     
          "no  recommendation" and  with new  fiscal note  by                                                                   
          the   Department   of    Administration   and   new                                                                   
          indeterminate note by  the Office of Management and                                                                   
          Budget.                                                                                                               
                                                                                                                                
HB 267    "An Act relating to authorizing the state to join                                                                     
          with  other  states   entering  into  the  Wildlife                                                                   
          Violator  Compact and  authorizing  the compact  to                                                                   
          supersede    existing    statutes   by    approving                                                                   
          standards,  rules, or other action under  the terms                                                                   
          of  the compact;  and directing  the initiation  of                                                                   
          civil  actions to  revoke  appropriate licenses  in                                                                   
          this   state  based   on   a  resident   licensee's                                                                   
          violation  of or failure  to comply with  the terms                                                                   
          of a  wildlife resource citation issued  in another                                                                   
          state that is a party to the compact."                                                                                
                                                                                                                                
          CS HB 267 (RES) was REPORTED out of Committee with                                                                    
          a "do  pass" recommendation  and with zero  note #1                                                                   
          by the  Department of Fish  and Game and  zero note                                                                   
          #2 by the Department of Public Safety.                                                                                
                                                                                                                                
HB 193    "An Act relating to the composition of the Alaska                                                                     
          Police  Standards  Council;  and providing  for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          HB 193 was HEARD and HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
HJR 2     Proposing an amendment to the Constitution of the                                                                     
          State  of Alaska requiring  an affirmative  vote of                                                                   
          the people  before any form of gambling  for profit                                                                   
          may be authorized in Alaska.                                                                                          
                                                                                                                                
          HJR 2 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
HOUSE BILL NO. 65                                                                                                             
                                                                                                                                
     "An  Act  relating  to breaches  of  security  involving                                                                 
     personal  information, credit  report  and credit  score                                                                 
     security  freezes,  consumer credit  monitoring,  credit                                                                 
     accuracy,  protection of  social security numbers,  care                                                                 
     of  records,   disposal  of  records,   identity  theft,                                                                 
     furnishing  consumer credit  header information,  credit                                                                 
     cards, and  debit cards, and to the jurisdiction  of the                                                                 
     office of administrative hearings; amending Rule 60,                                                                     
     Alaska Rules of Civil Procedure; and providing for an                                                                    
     effective date."                                                                                                         
                                                                                                                                
1:41:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA, SPONSOR,  spoke on behalf of himself and                                                                   
co-sponsor   Representative  John   Coghill   and  made   two                                                                   
clarifications regarding HB 65  for the record. He began with                                                                   
AS.45.48.030,  Methods of  Notice  (page 3).  When a  company                                                                   
realizes  that they  have released  financial information  to                                                                   
the public, whether  by accident or on purpose,  this section                                                                   
requires  that   the  company   tell  the  people   affected.                                                                   
Notification  must take place  through a  letter sent  to the                                                                   
most recent known  address. He said one of  the companies had                                                                   
asked if they would have to keep  trying to notify a consumer                                                                   
if  the address  was  wrong.  Representative  Gara said  that                                                                   
under  the standard  in the bill,  the company  has to  write                                                                   
once. They don't have to keep sending the letter.                                                                               
                                                                                                                                
Representative  Gara clarified  the second issue,  45.48.410,                                                                   
Request and Collection (page 17).  This section bans a person                                                                   
or company from selling, trading  or making money from Social                                                                   
Security  Numbers (SSN).  However,  there  are situations  in                                                                   
which  the  bill  allows  use  of  SSNs.  He  said  the  most                                                                   
important  exception is  in  45.48.410(b)(6).  A company  can                                                                   
always use an SSN  if they are not making money  by using it,                                                                   
if it has no independent value,  or if it is part of a larger                                                                   
transaction such  as a credit check  or if the SSN  is needed                                                                   
to verify identity for debt collection or to prevent fraud.                                                                     
                                                                                                                                
1:43:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  thought a Social  Security card  was never                                                                   
intended to  be used  as identification. Representative  Gara                                                                   
said  the  sponsors  agreed.  They  did  not  want  companies                                                                   
demanding  that  people  use  their  SSN  for  identification                                                                   
purposes; however,  there is also no ban on it  being used as                                                                   
identification.                                                                                                                 
                                                                                                                                
Co-Chair Meyer asked if there were amendments to the bill.                                                                      
                                                                                                                                
Representative Nelson MOVED to  RESCIND previous action taken                                                                   
on Amendment  #3, 25-LS0311\K.2, Bannister, 2/07/08  (Copy on                                                                   
File). There being NO OBJECTION, the action was rescinded.                                                                      
                                                                                                                                
Representative Nelson  read Amendment #3, which  deletes "the                                                                   
disclosure of permanent fund dividend  applicant records" and                                                                   
all  references  to  the  same  in the  bill.  She  said  the                                                                   
provision was put  in by the Judiciary Committee.  The battle                                                                   
to not allow  the Dividend Corporation to give  out applicant                                                                   
information was  fought for years  and won; she did  not want                                                                   
the issue slipped into a bill  that is going the other way in                                                                   
terms of providing information.                                                                                                 
                                                                                                                                
AT EASE        1:47:05 PM                                                                                                     
RECONVENE      1:51:36 PM                                                                                                     
                                                                                                                                
Co-Chair Meyer called for questions on Amendment #3.                                                                            
                                                                                                                                
Representative  Nelson  MOVED  to  ADOPT  Amendment  #3,  25-                                                                   
LS0311\K.2, Bannister, 2/07/08 (Copy on File).                                                                                  
                                                                                                                                
     Page 1,  Line 1, deleting  "the disclosure  of permanent                                                                   
     fund  dividend  applicant  records,";  Page  2,  Line  4                                                                   
     through Page 3, Line 18,  deleting all material and then                                                                   
     renumber the following bill  sections accordingly:  Page                                                                   
     29,  Line 17,  deleting "sec.  5",  inserting "sec.  3";                                                                   
     Page  29, Line 21,  deleting "sec.  5", inserting  "sec.                                                                   
     3";  Page  29, Line  24,  deleting "sec.  5",  inserting                                                                   
     "sec.  3";   Page  29,  Line  26,  deleting   "sec.  6",                                                                   
     inserting "sec. 4".                                                                                                        
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
LORI DAVEY,  PRESIDENT, MOTZNIK  INFORMATION SERVICES,  spoke                                                                   
in  opposition to  Amendment #3.  Her company  had access  to                                                                   
Fund Dividend  (PFD) information  before  2004. She said  the                                                                   
loss of access to PFD information  has made it more difficult                                                                   
for  title  companies,  banks and  attorneys  to  effectively                                                                   
differentiate  people, especially those  with the  same name.                                                                   
Motznik is not asking to have  the same access to information                                                                   
as they had  before 2004, when anyone could  download the PFD                                                                   
file off  the State's website  into a database. She  said the                                                                   
amendment introduced into Judiciary  gives access only to the                                                                   
name,  mailing address  and year  of  birth, not  to SSNs  or                                                                   
information   for  people   under  18   years  of  age.   The                                                                   
information will be used to effectively  differentiate people                                                                   
and serve due process.                                                                                                          
                                                                                                                                
1:54:47 PM                                                                                                                    
                                                                                                                                
Ms.  Davey  explained  that  when   Motznik  does  background                                                                   
screening for  employment or housing,  they can get  name and                                                                   
date of birth from a criminal  file and other public records.                                                                   
However,  if a  person  does  not vote,  own  a  car, have  a                                                                   
hunting or  fishing license or  show up anywhere else  in the                                                                   
public  record, there  is no  way to  differentiate a  person                                                                   
with a criminal record and no  other address information from                                                                   
someone else  with the same name.  She does not  consider the                                                                   
PFD information  they  are asking to  be re-disclosed  (name,                                                                   
address and year of birth) to be private information.                                                                           
                                                                                                                                
Representative  Nelson asked  how companies  in other  states                                                                   
find information when  they do not have access  to data bases                                                                   
like the  PFD. Ms.  Davey assumed  in other states  companies                                                                   
had more  access to tax records,  which are not  available in                                                                   
Alaska.                                                                                                                         
                                                                                                                                
Representative  Crawford referred to  a person with  his name                                                                   
and a mix-up  that resulted in Representative  Crawford's PFD                                                                   
check being taken  away. He understood both the  need to have                                                                   
access to  information and  to limit it.  He wondered  how to                                                                   
keep protecting people if access is re-opened.                                                                                  
                                                                                                                                
1:57:39 PM                                                                                                                    
                                                                                                                                
Ms. Davey  said the information  would be managed  similar to                                                                   
how it  is managed  in the  DMV, by  limiting the people  and                                                                   
companies  who  have access  to  the information.  There  are                                                                   
limited reasons why  the information can be  accessed. A form                                                                   
must  be signed  and  there  must  be verification  that  the                                                                   
business being  done is legitimate. The amendment  limits the                                                                   
access. She  described how  Motznik's system tracks  requests                                                                   
for information and keeps records indefinitely.                                                                                 
                                                                                                                                
Representative  Gara wondered what  records would be  used in                                                                   
states that  do not have  an income tax.  Ms. Davey  said she                                                                   
only  operates in  Alaska and  did  not know.  Representative                                                                   
Gara wondered if tax records were public in other states.                                                                       
                                                                                                                                
Representative  Gara  wondered  if the  most  recent  address                                                                   
information someone  could find  on someone they  were trying                                                                   
to do  harm would be the  PFD information. Ms.  Davey thought                                                                   
that potentially  DMV would  have updated information.  There                                                                   
are other means  as well, since voter information  is updated                                                                   
with the  PFD. For  most people  that information is  already                                                                   
available.                                                                                                                      
                                                                                                                                
2:00:43 PM                                                                                                                    
                                                                                                                                
Representative Gara voiced concerns  about giving out address                                                                   
information.  Ms.  Davie  answered   that  in  Alaska  it  is                                                                   
difficult  to   do  business   without  access  to   the  PFD                                                                   
information. Representative Gara reiterated his concerns.                                                                       
                                                                                                                                
2:02:27 PM                                                                                                                    
                                                                                                                                
Representative Hawker said he MAINTAINED his OBJECTION.                                                                         
                                                                                                                                
Representative Thomas asked if  the Division of Elections had                                                                   
the authority to use the PFD to update addresses.                                                                               
                                                                                                                                
MEGAN FOSTER,  STAFF, REPRESENTATIVE  LES GARA said  that she                                                                   
believed  they  did.  Representative  Hawker  had  asked  the                                                                   
Division of Revenue (DOR) the  same question recently and the                                                                   
answer was yes. Co-Chair Meyer  noted that DOR people present                                                                   
were nodding their heads.                                                                                                       
                                                                                                                                
Representative Thomas pointed  out that even if the amendment                                                                   
were voted  down, Elections  would still  have access  to the                                                                   
addresses.                                                                                                                      
                                                                                                                                
Representative Nelson  said she was happy to  be offering the                                                                   
amendment to delete  the provision. She did not  want to slip                                                                   
major changes into other legislation,  especially a bill like                                                                   
HB  65, which  tries  to  limit  access to  information.  She                                                                   
thought  if there  were  strong  support for  the  provision,                                                                   
there should  be a stand-alone  piece of legislation  so that                                                                   
it could be discussed on its own.                                                                                               
                                                                                                                                
2:05:01 PM                                                                                                                    
                                                                                                                                
A roll call vote  was taken on the MOTION to  ADOPT Amendment                                                                   
#3.                                                                                                                             
                                                                                                                                
IN FAVOR: Nelson, Stoltze, Thomas, Crawford, Gara                                                                               
OPPOSED: Kelly, Hawker, Chenault, Meyer                                                                                         
                                                                                                                                
Representative Harris was absent from the vote.                                                                                 
                                                                                                                                
The MOTION PASSED (5/4).                                                                                                        
                                                                                                                                
Vice-Chair  Stoltze  asked if  Amendment  #4,  25-LS0311\K.1,                                                                   
Bannister,  1/30/08  (Copy on  File),  which  had passed  the                                                                   
previous day, was superfluous. Co-Chair Meyer said yes.                                                                         
                                                                                                                                
AT EASE        2:06:34 PM                                                                                                     
RECONVENE      2:07:16 PM                                                                                                     
                                                                                                                                
Co-Chair Meyer referred to new  fiscal note for $2 million by                                                                   
the  Department of  Administration,  new fiscal  note by  the                                                                   
Department of  Revenue and new  indeterminate fiscal  note by                                                                   
the Office of Budget and Management.                                                                                            
                                                                                                                                
Representative  Hawker  wanted   an  explanation  of  the  $2                                                                   
million fiscal note.                                                                                                            
                                                                                                                                
2:08:15 PM                                                                                                                    
                                                                                                                                
KEVIN    BROOKS,   DEPUTY    COMMISSIONER,   DEPARTMENT    OF                                                                   
ADMINISTRATION   (DOA),   gave  information   regarding   the                                                                   
Department's fiscal  note. He explained that  since the State                                                                   
was the  victim of a  security breach  in 2005, DOA  had been                                                                   
requesting funds to strengthen  data security. The Department                                                                   
replaced switches  and routers on the network  and took other                                                                   
measures to  secure the hardware  and infrastructure.  The $2                                                                   
million  requested   in  the   fiscal  note  would   pay  for                                                                   
encryption of data  so the various state data  bases would be                                                                   
protected in the event of another breach.                                                                                       
                                                                                                                                
Representative  Hawker   asked  what  the   $1,765.600  under                                                                   
"equipment" in  the fiscal note  was for. Mr.  Brooks replied                                                                   
that the budget was for both hardware  and software. Software                                                                   
is included in equipment when the amount needed is large.                                                                       
                                                                                                                                
Representative  Hawker asked  for  clarification. Mr.  Brooks                                                                   
replied  that  the  $2 million  in  the  FY  09 budget  is  a                                                                   
continuation that would complete  and implement a double fire                                                                   
wall to put around all public  facing servers. The $2 million                                                                   
in the  capital budget completes  the implementation  of that                                                                   
as well  as a network  admission control.  He added  that the                                                                   
detail is  in the Capitol budget,  but they are  separate and                                                                   
distinct projects. The only similarity is the amount.                                                                           
                                                                                                                                
2:11:20 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  stated  that  he  believed  that  the                                                                   
Legislature is  only beginning  to see the requested  funding                                                                   
to  deal  with  data  security  in  Alaska.  He  pointed  out                                                                   
previous funding adding up to  approximate $16 million listed                                                                   
on the  second page  of the fiscal  note. He voiced  concerns                                                                   
regarding long term planning.                                                                                                   
                                                                                                                                
Mr. Brooks  agreed  but wanted  to list every  dime that  has                                                                   
gone into  security. He  said there is  money in  the capital                                                                   
budget for the  proposed project and that the  Department did                                                                   
have a  five year  plan. The encryption  budgeted is  in that                                                                   
plan. He emphasized that the encryption  needed to be done as                                                                   
soon as  possible;  HB 65 points  to the  urgency to  encrypt                                                                   
data.                                                                                                                           
                                                                                                                                
2:14:33 PM                                                                                                                    
                                                                                                                                
Representative Hawker emphasized  that he was not arguing the                                                                   
merits of  encryption. He wondered  if HB 65 places  a burden                                                                   
of  responsibility on  the State.  Mr.  Brooks answered  that                                                                   
from the Department's perspective,  the State is treated like                                                                   
any other  keeper of data. The  State is not in  the business                                                                   
of  making profit  from  the data  but  still keeps  enormous                                                                   
amounts of personal data.                                                                                                       
                                                                                                                                
Representative  Gara clarified  that  HB 65  did not  require                                                                   
data encryption,  although it is  a good, safe  practice. Mr.                                                                   
Brooks agreed that HB 65 did not  require encryption, but DOA                                                                   
believes  encryption is  a prudent  thing to  do in light  of                                                                   
penalties in place in the bill.                                                                                                 
                                                                                                                                
Representative  Hawker  asked  what  penalties  HB  65  would                                                                   
impose upon state  employees or the State itself.  Mr. Brooks                                                                   
answered  that  state  employees  would be  covered  under  a                                                                   
public  officials  bond,  so   there  would  be  no  personal                                                                   
liability.  However, the  bill  has been  amended to  include                                                                   
actual economic  damages caused in  a breach. There  are also                                                                   
costs  to notify.  He acknowledged  positive amendments  that                                                                   
will enable  mass notifications,  but  thought the State  had                                                                   
vulnerabilities that other companies  did not have because of                                                                   
the amount of personal data the State maintains.                                                                                
                                                                                                                                
2:17:17 PM                                                                                                                    
                                                                                                                                
Representative  Hawker reiterated  concerns about the  fiscal                                                                   
note and the enormity of data security issues.                                                                                  
                                                                                                                                
2:18:11 PM                                                                                                                    
                                                                                                                                
Mr. Brooks agreed that the State  will need to be diligent in                                                                   
security efforts,  as the level of sophistication  of hackers                                                                   
is growing.                                                                                                                     
                                                                                                                                
Co-Chair Meyer  pointed out that  the new fiscal note  by the                                                                   
Department of  Revenue was deleted  because Amendment  #3 had                                                                   
passed.                                                                                                                         
                                                                                                                                
Vice-Chair  Stoltze MOVED  to  report CSHB  65  (FIN) out  of                                                                   
Committee  with  individual  recommendations   and  with  new                                                                   
fiscal  note by  the  Department  of Administration  and  new                                                                   
indeterminate note  by the Office  of Management  and Budget.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CS  HB  65 (FIN)  was  REPORTED  out  of Committee  with  "no                                                                   
recommendation"  and with new  fiscal note by  the Department                                                                   
of Administration  and new indeterminate  note by  the Office                                                                   
of Management and Budget.                                                                                                       
                                                                                                                                
HOUSE BILL NO. 193                                                                                                            
                                                                                                                                
     "An Act relating to the composition of the Alaska                                                                          
     Police Standards Council; and providing for an                                                                             
     effective date."                                                                                                           
                                                                                                                                
2:20:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BOB ROSES,  SPONSOR, gave  an overview  of HB
193  which  changes  the composition  of  the  Alaska  Police                                                                   
Standards Council  (APSC). Currently  the Council is  made of                                                                   
four chief administrative officers;  HB 193 would change that                                                                   
to  three.  Included in  the  three  positions would  be  one                                                                   
position   that  could  be   a  correctional   administrative                                                                   
officer.  The bill  does not  change the  composition of  the                                                                   
private sector  or the rural  representation to  the Council.                                                                   
Representative  Roses  addressed  concerns  about  displacing                                                                   
people  currently  serving on  the  Council.  He assured  the                                                                   
Committee  that  the two  officers  would  never be  able  to                                                                   
control the majority vote.                                                                                                      
                                                                                                                                
2:23:15 PM                                                                                                                    
                                                                                                                                
Representative  Roses  cited   other  boards  that  have  the                                                                   
authority  to grant,  suspend  or revoke  certification,  and                                                                   
pointed out that  all those boards have  peer representation.                                                                   
He thought  the issue  was an  equitability  issue and  not a                                                                   
union issue.  The Governor would  have opportunity  to select                                                                   
from a  group of officers whose  names would be  forwarded by                                                                   
the  Association. The  Governor is  free to  choose from  any                                                                   
group; the  list is only a  recommendation list. He  said six                                                                   
police chiefs came to his office  when he introduced the bill                                                                   
to try and talk him out of it.  The more they talked the more                                                                   
he was convinced the bill is needed.                                                                                            
                                                                                                                                
2:25:53 PM                                                                                                                    
                                                                                                                                
Representative  Roses addressed  concerns  that the  proposal                                                                   
would move  the disciplinary  process to  a higher  level and                                                                   
that some  police officers would  have a tendency  to protect                                                                   
their own  personnel. Representative  Roses sees the  bill as                                                                   
an opportunity  for peer  representation on  a board  that is                                                                   
currently made up mostly of chiefs and commissioners.                                                                           
                                                                                                                                
2:27:41 PM                                                                                                                    
                                                                                                                                
Representative Crawford  thought the bill would  give a voice                                                                   
to line officers.                                                                                                               
                                                                                                                                
Representative  Thomas pointed  out that he  did not  see any                                                                   
Village  Public   Safety  Officers   (VPSO)  on   the  board.                                                                   
Representative  Roses replied that  language included  in the                                                                   
bill on  the second page, line  4, would give  an opportunity                                                                   
for VPSOs  to serve.  He thought  rural representation  was a                                                                   
very important part of the bill.                                                                                                
                                                                                                                                
2:29:51 PM                                                                                                                    
                                                                                                                                
WALT  MONEGAN,  COMMISSIONER,  DEPARTMENT OF  PUBLIC  SAFETY,                                                                   
spoke in opposition to the bill.  He said that police operate                                                                   
under a para-military organizational  structure. The Chief or                                                                   
equivalent head  has to be  accountable to the  community and                                                                   
needs  to have  mobility in  regards to  consistent and  fair                                                                   
standards,   usually  indicated   by  the  cooperative   work                                                                   
agreements that many of the departments  already have. When a                                                                   
chief wants to  take action, there are clear  procedures that                                                                   
labor organizations can respond to.                                                                                             
                                                                                                                                
Mr.  Monegan  pointed   out  that  the  APSC   has  two  main                                                                   
functions,  one of which  is training.  The lesson  plans for                                                                   
the  training  section does  not  come  from APSC,  but  from                                                                   
individual  departments.  The   subject  matter  experts  are                                                                   
already line officers.                                                                                                          
                                                                                                                                
Mr. Monegan continued  with the second function  of the APSC:                                                                   
oversight of  a certification  process that maintains  a high                                                                   
standard of law enforcement. He  emphasized the importance of                                                                   
objectivity. A chief has to keep  a professional distance. He                                                                   
gave  an example  of  firing  three officers  for  dishonesty                                                                   
issues and  the emotional  responses to  the firing.  The de-                                                                   
certification  process  is  a  difficult  and  long  process.                                                                   
Police  officers are  hard to  find  and to  train, and  APSC                                                                   
wants them to  succeed. However, the process  is necessary to                                                                   
keep public trust.                                                                                                              
                                                                                                                                
2:36:56 PM                                                                                                                    
                                                                                                                                
Mr. Monegan felt the addition  of two officers to the Council                                                                   
did not  make sense because the  training does not  come from                                                                   
them, and second, they could not  vote if the issue were with                                                                   
a person  from their  membership. He  urged the Committee  to                                                                   
look at the  effectiveness of the two officers  that would be                                                                   
on the Council.                                                                                                                 
                                                                                                                                
2:37:32 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze asked  for comparisons  between APSC  and                                                                   
the Fire  Standards Council.  Mr. Monegan  answered that  the                                                                   
purpose  of both  councils  is to  ensure  high standards  of                                                                   
qualified personnel.  They both  want to protect  the public.                                                                   
Vice-Chair Stoltze  asked if the two councils  make different                                                                   
personnel   decisions.    Mr.   Monegan   reiterated    their                                                                   
similarities,  although APSC  has  the ability  to remove  an                                                                   
individual  entirely   from  the  profession.   There  was  a                                                                   
discussion about  the grievance  process in different  unions                                                                   
and how  the proposed changes  in the bill would  affect that                                                                   
process.                                                                                                                        
                                                                                                                                
2:40:53 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  said he  would  keep listening  to  both                                                                   
sides.                                                                                                                          
                                                                                                                                
Mr. Monegan addressed Representative  Thomas's concerns about                                                                   
VPSOs. He  said the  issue was that  VPSOs are not  certified                                                                   
police officers. They  would not fall under APSC  as they are                                                                   
employees of non-profits.                                                                                                       
                                                                                                                                
Representative  Kelly asked Mr.  Monegan if  he had  to build                                                                   
the Fire Standards Council from  the ground up, would he have                                                                   
the representation  that is  being asked for  on the  APSC or                                                                   
would he remove it. Mr. Monegan  replied that he would remove                                                                   
the representation from that council as well.                                                                                   
                                                                                                                                
2:42:39 PM                                                                                                                    
                                                                                                                                
MARK  DRYGAS,  BATTALION CHIEF,  FAIRBANKS  FIRE  DEPARTMENT,                                                                   
ALASKA PROFESSIONAL FIREFIGHTERS  ASSOCIATION, spoke in favor                                                                   
of HB  193. He supported having  line personnel on  the APSC.                                                                   
He  thought the  line personnel  would  feel represented  and                                                                   
heard. The  chiefs do not work  the long shifts or  face what                                                                   
the line  personnel face.  He referred  to Brian Davis,  line                                                                   
personnel  on the Fire  Standards Council.  Mr. Drygas  feels                                                                   
heard because of Mr. Davis's representation.                                                                                    
                                                                                                                                
2:45:33 PM                                                                                                                    
                                                                                                                                
JEFF LANDVATTER,  ALASKA STATE TROOPER, spoke in  favor of HB
193  (Statement on  File). He  has  served for  23 years.  He                                                                   
thought the  bill was about  representation and  giving peace                                                                   
officers a voice on a committee  that dictates their careers.                                                                   
He wanted to see  rank and file members on  the Council, just                                                                   
as on other similar boards. Two  members would not be able to                                                                   
overturn  decisions  of  the Council.  Every  patrol  officer                                                                   
wants the  best standing  next to him  and backing him  up. A                                                                   
patrol  officer can  bring the  perspective  and insight  the                                                                   
Council needs.                                                                                                                  
                                                                                                                                
2:48:15 PM                                                                                                                    
                                                                                                                                
TERRY  VRABEC,  DIRECTOR,  ALASKA  POLICE  STANDARDS  COUNCIL                                                                   
(TESTIFIED  VIA TELECONFERENCE),  spoke in  opposition  to HB
193.  He  referred  to  letters  before  the  Committee  from                                                                   
himself, from Daniel  Hoffman, the Chairman of  the APSC, and                                                                   
from Chief Charles Kamai from Kodiak (On File).                                                                                 
                                                                                                                                
2:49:30 PM                                                                                                                    
                                                                                                                                
BOB CLAUS, SELF, CRAIG (TESTIFIED  VIA TELECONFERENCE), spoke                                                                   
in favor of HB  193. Mr. Clause has been a  State Trooper for                                                                   
approximately  twenty years and  has trained police  officers                                                                   
around  the  state.  He thought  adding  two  working  police                                                                   
officers  to   the  APSC  would  give  a   working  officer's                                                                   
perspective   to  decision   making,  especially   concerning                                                                   
training issues. Although he shares  many years of experience                                                                   
with  the  police administrators  that  currently  decide  on                                                                   
course content,  his understanding  of face-to-face  policing                                                                   
is  based   on  on-going   interactions  with  Alaskans.   He                                                                   
described one  of his work days.  He felt a person  with such                                                                   
experience is needed on the APSC.                                                                                               
                                                                                                                                
2:52:27 PM                                                                                                                    
                                                                                                                                
STEVE SMITH, DEPUTY CHIEF, ANCHORAGE  POLICE DEPARTMENT (APD)                                                                   
(TESTIFIED VIA TELECONFERENCE),  spoke on behalf of the Chief                                                                   
of APD, in  opposition to HB 193.  He said APD is  opposed to                                                                   
the change in the  APSC proposed in the bill.  The Council is                                                                   
primarily a  standard-setting and  enforcement body,  as well                                                                   
as  being a  training advocacy  body for  law enforcement  in                                                                   
Alaska.  The   bill  would   alter  the  Council's   internal                                                                   
operating  environment,  moving it  more  towards  that of  a                                                                   
labor  management dispute  forum. There  are currently  ample                                                                   
mechanisms in  place to settle  labor issues. Alaska  law and                                                                   
collective bargaining  agreements in effect within  state law                                                                   
enforcement  agencies  already  have appropriate  forums  for                                                                   
those issues. He thought the current  system was working well                                                                   
and thought HB 193 would upset that balance.                                                                                    
                                                                                                                                
2:54:27 PM                                                                                                                    
                                                                                                                                
Representative Crawford questioned  whether there was balance                                                                   
with eleven  management  members on the  Council. He  thought                                                                   
two line officers  wouldn't upset the balance,  but would add                                                                   
a voice.                                                                                                                        
                                                                                                                                
Mr. Smith  replied that  the balance he  referred to  was the                                                                   
broader system  of labor dispute  mechanisms. He  thought the                                                                   
Council presently  fits well into  that broader  system. When                                                                   
someone   comes  before   the   Council   with  a   potential                                                                   
decertification action,  they will usually have  either legal                                                                   
or union  representation. The  actual job action  has already                                                                   
taken  place or is  in the  process of  taking place  through                                                                   
their  grievance   and  arbitration  procedures   with  their                                                                   
department.   The  decertification   action  is  a   separate                                                                   
activity.                                                                                                                       
                                                                                                                                
2:56:20 PM                                                                                                                    
                                                                                                                                
CHUCK  KOPP, CHIEF,  KENAI POLICE  DEPARTMENT (TESTIFIED  VIA                                                                   
TELECONFERENCE), spoke in opposition  to HB 193. He said many                                                                   
chiefs  in  Alaska   also  do  day-to-day  police   work  and                                                                   
understand the  experiences of  line officers. He  wanted the                                                                   
Committee to understand  that there has not  been a complaint                                                                   
against  the Council  about unfairness.  The  union does  not                                                                   
have a grievance  against the Council. He served  as chairman                                                                   
of the APSC for  the last two years and felt  the body worked                                                                   
exceptionally well  in unison  with the four public  members,                                                                   
two of  whom are  from communities  of 2,500  or less.  House                                                                   
Bill 193 represents the removal  of the largest public safety                                                                   
employer in Alaska from having  representation, by removing a                                                                   
correctional  administrative  officer.  He pointed  out  that                                                                   
Corrections  oversees  not  only prisons  but  probation  and                                                                   
parole.  The   Director  of  Probation  and   Parole  is  the                                                                   
administrative officer that has  historically served on APSC,                                                                   
along with  the Commissioner of  Corrections. The  removal of                                                                   
this person, who  oversees so many personnel  and operational                                                                   
matters,  would be a  significant loss  and adversely  affect                                                                   
the  Council's  functioning.   He  thought  four  chiefs  are                                                                   
necessary on the Council.                                                                                                       
                                                                                                                                
Mr.  Kopp  appreciated   the  argument  that   the  issue  is                                                                   
representation, but he feels it  is a conflict of interest. A                                                                   
person  serves   on  the  Council  because  they   have  been                                                                   
nominated by  a labor organization. Labor  organizations have                                                                   
their proper  role in protecting  the rights of  the accused,                                                                   
but  they already  have  representation  before the  Council.                                                                   
Five of the  positions on the Council currently  are occupied                                                                   
by individuals from labor organized agencies.                                                                                   
                                                                                                                                
Mr. Kopp said  firefighters are not required to  take an oath                                                                   
of office  to protect  and serve  their community and  uphold                                                                   
the law. They are  not required by statute to  subscribe to a                                                                   
code of  ethics or to live  their private lives  in alignment                                                                   
with that code.  He read the code of ethics and  said much of                                                                   
the  code  does  not  apply  to  firefighters,  while  police                                                                   
officers are held to the highest  standard in public service.                                                                   
He said the balance  on the Council has served  well for many                                                                   
years and felt HB 193 would upset that balance.                                                                                 
                                                                                                                                
3:06:02 PM                                                                                                                    
                                                                                                                                
Representative  Thomas asked  if  any of  the  chiefs on  the                                                                   
Council were union  employees or former union  employees. Mr.                                                                   
Kopp  said that  the  chairman, Chief  Dan  Hoffman, was  the                                                                   
former union  president for the Fairbanks  Police Department.                                                                   
Representative Thomas  asked if he stepped down  if there was                                                                   
a union issue before  the Council. Mr. Kopp said  he would if                                                                   
the issue involved one of his officers.                                                                                         
                                                                                                                                
Representative Thomas asked Mr.  Kopp about his experience as                                                                   
a  trainer.  Mr.  Kopp  listed  his  extensive  teaching  and                                                                   
training experience.   He said the Council is  careful in its                                                                   
deliberations regarding decertification.                                                                                        
                                                                                                                                
3:10:03 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
HB  193  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 267                                                                                                            
                                                                                                                                
     "An Act relating  to authorizing the state  to join with                                                                   
     other  states   entering  into  the   Wildlife  Violator                                                                   
     Compact  and   authorizing  the  compact   to  supersede                                                                   
     existing  statutes  by approving  standards,  rules,  or                                                                   
     other  action  under  the  terms  of  the  compact;  and                                                                   
     directing  the initiation  of  civil  actions to  revoke                                                                   
     appropriate licenses  in this state based  on a resident                                                                   
     licensee's  violation of or  failure to comply  with the                                                                   
     terms of a wildlife resource  citation issued in another                                                                   
     state that is a party to the compact."                                                                                     
                                                                                                                                
3:12:07 PM                                                                                                                    
                                                                                                                                
JEANNE OSTNES,  STAFF, REPRESENTATIVE CRAIG JOHNSON,  said HB
267 was  patterned after the  driver's license  compact which                                                                   
all  other states  in  the nation  have  entered  into. If  a                                                                   
person's  driver's license  is revoked  in one  state in  the                                                                   
country, that person  cannot get a license in  another state.                                                                   
In 1985,  states began making  a similar compact  in relation                                                                   
to wildlife  violators, and  it was  quickly recognized  as a                                                                   
valuable tool to deter serious  wildlife violators everywhere                                                                   
in  the  nation.  Twenty-six  states  are  currently  compact                                                                   
members. She referred to a photograph  (On File) of a poacher                                                                   
who had  been fined  and jailed  in Alaska,  but was  able to                                                                   
return to his home state and obtain  another hunting license.                                                                   
The biggest  reason for  the compact  is to stop  inter-state                                                                   
travel of serious poachers. Second,  the compact provides for                                                                   
the issuance  of citations  to nonresidents,  which is  a big                                                                   
issue in Alaska;  currently the violator must  be immediately                                                                   
taken  before  a  magistrate to  prevent  them  from  fleeing                                                                   
across  state lines  to avoid  citation consequences.  Third,                                                                   
the compact provides a strong  deterrent for serious fish and                                                                   
wildlife crimes.                                                                                                                
                                                                                                                                
Ms. Ostnes  listed the  provisions of  the Wildlife  Violator                                                                   
Compact (Copy on File).                                                                                                         
                                                                                                                                
3:15:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer referred to two zero notes.                                                                                      
                                                                                                                                
Representative  Thomas  wondered   if  the  poacher  she  had                                                                   
referred to lost  his license in Alaska. Ms.  Ostnes said his                                                                   
Alaska license was revoked.                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAIG JOHNSON, SPONSOR,  referred to  the map                                                                   
of  member states  (Copy  on File)  and  pointed  out that  a                                                                   
violator in any  of those states would either go  to Texas or                                                                   
Alaska  to  poach.  He  related   Committee  testimony  about                                                                   
hunters  telephoning  the Department  of  Fish  and Game  and                                                                   
asking if Alaska  were a member of the compact,  an indicator                                                                   
that  people  who  have  violated in  their  own  states  are                                                                   
looking for an open place to hunt.                                                                                              
                                                                                                                                
3:17:09 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze observed  that  some  of the  non-compact                                                                   
states, including Oklahoma, Pennsylvania,  Alabama and Texas,                                                                   
are  some  of the  biggest  hunting  states. He  wondered  if                                                                   
Representative Johnson was aware  of why those states are not                                                                   
part  of the  compact.  Representative Johnson  replied  that                                                                   
Texas   has  many   private  reserves.   Vice-Chair   Stoltze                                                                   
mentioned  regulations  in  California,  which is  a  compact                                                                   
member,  and  worried  that  Californian   regulations  would                                                                   
affect  Alaskans  if  Alaska  became  part  of  the  compact.                                                                   
Representative  Johnson  replied  that  Alaska  is  still  in                                                                   
control  of  its own  laws;  HB  267  does  not give  up  any                                                                   
sovereignty.  The State  also  has the  right  to review  and                                                                   
determine  whether an  individual would  lose their  license.                                                                   
Vice-Chair Stoltze characterized  HB 267 as preventing Alaska                                                                   
from being the last refuge of scoundrels.                                                                                       
                                                                                                                                
3:21:16 PM                                                                                                                    
                                                                                                                                
ROD  ARNO,   EXECUTIVE  DIRECTOR,   ALASKA  OUTDOOR   COUNCIL                                                                   
(TESTIFIED VIA  TELECONFERENCE), spoke in support  of HB 267.                                                                   
He  said the  bill  deals mainly  with  nonresidents. In  his                                                                   
years of experience, the majority  of violators are violators                                                                   
everywhere.  This  is a  tool  that  will help  the  wildlife                                                                   
troopers  in Alaska,  especially  given the  vastness of  the                                                                   
state and the shortage of officers.                                                                                             
                                                                                                                                
CAPTAIN BURKE  WALDRON, OPERATIONS DIRECTOR,  ALASKA WILDLIFE                                                                   
TROOPERS (TESTIFIED  VIA TELECONFERENCE),  spoke in  favor of                                                                   
HB  267 on  behalf of  the Department  of  Public Safety.  He                                                                   
thought  the compact would  deter poachers  caught in  Alaska                                                                   
from failing to appear on their  citations, and make wildlife                                                                   
troopers  more  efficient in  the  field. Currently  time  is                                                                   
wasted processing poachers who are arrested.                                                                                    
                                                                                                                                
3:23:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
Vice-Chair Stoltze  MOVED report the CS for HB  267 (RES) out                                                                   
of  Committee   with  individual  recommendations   and  with                                                                   
attached zero note #1 by the Department  of Fish and Game and                                                                   
zero note #2 by the Department  of Public Safety. There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
CS HB  267 (RES)  was REPORTED  out of  Committee with  a "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of  Fish and  Game  and zero  note #2  by  the Department  of                                                                   
Public Safety.                                                                                                                  
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 2                                                                                                  
                                                                                                                                
     Proposing an amendment to  the Constitution of the State                                                                   
     of Alaska  requiring an affirmative  vote of  the people                                                                   
     before  any   form  of  gambling   for  profit   may  be                                                                   
     authorized in Alaska.                                                                                                      
                                                                                                                                
House Joint Resolution No. 2 was SCHEDULED but not HEARD.                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:25 PM.                                                                                           
                                                                                                                                
                                                                                                                                

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