Legislature(2011 - 2012)HOUSE FINANCE 519

04/13/2012 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 6:45 p.m. Today --
+ SCR 24 COMMISSION ON 100TH ANNIV. OF LEGISLATURE TELECONFERENCED
Moved Out of Committee
+ SB 91 SPORT FISHING GUIDING SERVICES TELECONFERENCED
Moved HCS CSSB 91(FIN) Out of Committee
+ SB 182 PUPIL TRANSPORTATION FUNDING TELECONFERENCED
Scheduled But Not Heard
+ SB 83 TEACHER BOARD CERTIFICATION INCENTIVES TELECONFERENCED
Scheduled But Not Heard
+= SB 23 FILM PRODUCTION TAX CREDIT/AUDITS TELECONFERENCED
Moved HCS CSSB 23(FIN) Out of Committee
+ SB 25 AIDEA: SUSTAINABLE ENERGY/ INTEREST RATE TELECONFERENCED
<Pending Referral>
+= SB 119 ATHLETIC TRAINERS TELECONFERENCED
<Pending Referral>
+ SB 210 CRIMES AGAINST CHILDREN/ SUPPORT/CINA TELECONFERENCED
Moved HCS CSSB 210(JUD) Out of Committee
+ SB 160 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 19 PASSENGER VEHICLE RENTAL TAX TELECONFERENCED
Moved HCS CSSB 19(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 13, 2012                                                                                            
                         9:12 a.m.                                                                                              
                                                                                                                                
9:12:14 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the  House Finance Committee meeting                                                                    
to order at 9:12 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Reggie Joule                                                                                                     
Representative Mark Neuman                                                                                                      
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James  Armstrong, Staff,  Representative  Bill Stoltze;  Tim                                                                    
Lamkin,  Staff, Senator  Gary  Stevens;  Shyan Ely,  Intern,                                                                    
Senator  Lesil  McGuire;  Ben Mulligan,  Special  Assistant,                                                                    
Department   of   Fish   and  Game;   Joe   Michel,   Staff,                                                                    
Representative  Bill   Stoltze;  Kristen   Peterson,  Staff,                                                                    
Senator  Hollis French;  Matt Moser,  Staff, Senator  Johnny                                                                    
Ellis;  Senator Johnny  Ellis, Sponsor;  Dan Branch,  Senior                                                                    
Assistant   Attorney   General,   Commercial/Fair   Business                                                                    
Section,   Department   of   Law;  Curtis   Thayer,   Deputy                                                                    
Commissioner,   Department   of  Commerce,   Community   and                                                                    
Economic  Development; Amy  Saltzman,  Staff, Senator  Lesil                                                                    
McGuire; Anne  Carpeneti, Assistant Attorney  General, Legal                                                                    
Services  Section-Juneau, Criminal  Division, Department  of                                                                    
Law                                                                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Stephen Haycox,  Professor of History, University  of Alaska                                                                    
Anchorage; Terrence  Cole, Professor of  History, University                                                                    
of  Alaska Fairbanks;  Rod Arno-Palmer,  Executive Director,                                                                    
Alaska Outdoor Council; Johanna  Bales, Deputy Director, Tax                                                                    
Division, Department of Revenue                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 19(FIN)                                                                                                                    
          PASSENGER VEHICLE RENTAL TAX                                                                                          
                                                                                                                                
          HCS  CSSB 19(FIN)  was REPORTED  out of  committee                                                                    
          with a  "do pass" recommendation and  with one new                                                                    
          fiscal    impact   note    from   Department    of                                                                    
          Administration and  one new fiscal impact  note by                                                                    
          the House Finance Committee  for the Department of                                                                    
          Revenue.                                                                                                              
                                                                                                                                
CSSB 23(FIN)                                                                                                                    
          FILM PRODUCTION TAX CREDIT/AUDITS                                                                                     
                                                                                                                                
          HCS  CSSB 23(FIN)  was REPORTED  out of  committee                                                                    
          with a  "do pass" recommendation and  with two new                                                                    
          fiscal  impact   notes  from  the   Department  of                                                                    
          Revenue and the  Department of Commerce, Community                                                                    
          and  Economic Development  and one  new zero  note                                                                    
          from the Legislature.                                                                                                 
                                                                                                                                
          [Note:  The  committee  rescinded  its  action  to                                                                    
          report out  HCS CSSB  23(FIN) on 4/14/12  and took                                                                    
          corrective  action.  See House  Finance  Committee                                                                    
          minutes dated 4/14/12, 10:25 a.m.]                                                                                    
                                                                                                                                
SCR 24    COMMISSION ON 100TH ANNIV. OF LEGISLATURE                                                                             
                                                                                                                                
          SCR 24  was REPORTED out  of committee with  a "do                                                                    
          pass"    recommendation   and    with   previously                                                                    
         published fiscal impact note: FN1 (LEG).                                                                               
                                                                                                                                
CSSSSB 25(FIN)                                                                                                                  
          AIDEA: SUSTAINABLE ENERGY/ INTEREST RATE                                                                              
                                                                                                                                
          CSSSSB 25(FIN) was SCHEDULED but not HEARD.                                                                           
                                                                                                                                
CSSB 83(EDC)                                                                                                                    
          TEACHER BOARD CERTIFICATION INCENTIVES                                                                                
                                                                                                                                
         CSSB 83(EDC) was SCHEDULED but not HEARD.                                                                              
                                                                                                                                
CSSB 91(FIN)                                                                                                                    
          SPORT FISHING GUIDING SERVICES                                                                                        
                                                                                                                                
          HCS  CSSB 91(FIN)  was REPORTED  out of  committee                                                                    
          with a  "do pass" recommendation and  with one new                                                                    
          fiscal  impact note  from the  Department of  Fish                                                                    
          and Game.                                                                                                             
                                                                                                                                
CSSB 119(L&C)                                                                                                                   
          ATHLETIC TRAINERS                                                                                                     
                                                                                                                                
          CSSB 119(L&C) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
CSSB 160(FIN)                                                                                                                   
          BUDGET: CAPITAL                                                                                                       
                                                                                                                                
          CSSB 160(FIN) was HEARD and  HELD in committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSSB 182(EDC)                                                                                                                   
          PUPIL TRANSPORTATION FUNDING                                                                                          
                                                                                                                                
          CSSB 182 (EDC) was SCHEDULED but not HEARD.                                                                           
                                                                                                                                
CSSB 210(FIN)                                                                                                                   
          CRIMES AGAINST CHILDREN/ SUPPORT/CINA                                                                                 
                                                                                                                                
          CSSB 210(JUD)  was REPORTED out of  committee with                                                                    
          a  "do  pass"  recommendation  and  with  one  new                                                                    
          indeterminate  fiscal  note   from  Department  of                                                                    
          Corrections   and    four   previously   published                                                                    
          indeterminate  notes: FN1  (DOA),  FN2 (DOL),  FN4                                                                    
          (DOA),  FN5 (CRT);  and  two previously  published                                                                    
          zero notes: FN3 (DPS), FN6 (DOA).                                                                                     
                                                                                                                                
9:12:20 AM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 160(FIN)                                                                                               
                                                                                                                                
     "An Act  making and amending  appropriations, including                                                                    
     capital  appropriations,  supplemental  appropriations,                                                                    
     and  other  appropriations;  making  appropriations  to                                                                    
     capitalize funds; and providing for an effective                                                                           
     date."                                                                                                                     
                                                                                                                                
JAMES   ARMSTRONG,  STAFF,   REPRESENTATIVE  BILL   STOLTZE,                                                                    
explained  that he  was currently  working with  Legislative                                                                    
Finance  on  drafting a  committee  substitute  in the  next                                                                    
couple of hours.                                                                                                                
                                                                                                                                
CSSB 160(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:15:07 AM                                                                                                                    
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 24                                                                                           
                                                                                                                                
     Establishing   the   Alaska   Legislative   Celebration                                                                    
     Commission to organize events  to commemorate the 100th                                                                    
     anniversary of  the first convening of  the legislative                                                                    
     branch of government in Alaska.                                                                                            
                                                                                                                                
TIM  LAMKIN,  STAFF,  SENATOR   GARY  STEVENS,  presented  a                                                                    
PowerPoint,  "SCR 24:  The  100-Year Commission  Celebrating                                                                    
the Alaska  Legislature" (copy on  file). He stated  that on                                                                    
March 3, 1913, the first  convening of the first legislature                                                                    
of Alaska occurred.                                                                                                             
                                                                                                                                
Mr.  Lamkin displayed  slide 1.  The photo  was of  downtown                                                                    
Juneau taken  in 1905. He  remarked that Juneau  was densely                                                                    
crowded,  with not  much  useable land.  He  stated that  in                                                                    
1911,  the United  States Congress  authorized the  funds to                                                                    
build  a  capitol  building  for  use  by  the  legislature.                                                                    
Because of World  War I and land  shortage, the construction                                                                    
of  the Capitol  was stalled  for  16 years.  For the  first                                                                    
sixteen  years,  the legislature  met  in  various halls  in                                                                    
downtown Juneau.                                                                                                                
                                                                                                                                
Mr. Lamkin displayed  slide 2, and explained  that the photo                                                                    
was taken in September, 1929.  The building in the photo was                                                                    
the former governor's  office, and it was torn  down to make                                                                    
room for the new Capitol.                                                                                                       
                                                                                                                                
Mr.  Lamkin discussed  slide 3.  The photo  was of  the same                                                                    
site as  the former governor's office,  facing the Gastineau                                                                    
Channel. He  pointed out the  car on  the right side  of the                                                                    
photograph,  and  stated  that   this  photo  was  from  the                                                                    
beginning of the Capitol construction in 1929.                                                                                  
                                                                                                                                
Mr.   Lamkin   displayed   slide  4.   He   explained   that                                                                    
approximately  a   year  and  a   half  after   the  Capitol                                                                    
construction  began  the  building   was  dedicated  as  the                                                                    
"Territory and Federal Building."                                                                                               
                                                                                                                                
Mr. Lamkin discussed slide 5,  and stated that the photo was                                                                    
of  the Alaska  House of  Representatives from  1913 in  the                                                                    
Juneau  Elks  Hall.  He  remarked that  the  Elks  Hall  was                                                                    
originally three  floors. It was his  understanding that the                                                                    
Senate met  on one floor,  and the House  of Representatives                                                                    
met on another floor.                                                                                                           
                                                                                                                                
Mr.   Lamkin   displayed   slide    6,   "First   House   of                                                                    
Representatives Committee Structure."  There were originally                                                                    
15 standing committees,  with 16 members that sat  on all of                                                                    
the committees:                                                                                                                 
                                                                                                                                
     1.   Banks   and   Banking,   Corporations   (including                                                                    
     Municipal)                                                                                                                 
     2. Committee on Committees                                                                                                 
    3. Education, Public Health, Quarantine, and Morals                                                                         
     4. Elections, Election Laws, and Mileage                                                                                   
     5. Engrossment and Enrollment                                                                                              
     6. Fisheries, Fish, Game, and Agriculture                                                                                  
     7. Judiciary and Federal Relations                                                                                         
     8. Labor, Capital, and Immigration                                                                                         
     9. Mining and Manufacturing                                                                                                
     10. Printing                                                                                                               
     11. Roads and Highways                                                                                                     
     12. Rules                                                                                                                  
     13. Territorial Institutions                                                                                               
     14. Transportation, Commerce, and Navigation                                                                               
     15. Ways and Means and Contingent Expenses                                                                                 
                                                                                                                                
Mr. Lamkin stated  that he did not believe that  there was a                                                                    
Revenue-type   committee   at   that   time,   because   the                                                                    
legislature  had very  limited powers.  Every item  that the                                                                    
legislature examined  and determined  needed to  be approved                                                                    
by congress.                                                                                                                    
                                                                                                                                
Mr. Lamkin  discussed slide  7, "A  Sampling of  the Session                                                                    
Laws  of  1913." He  explained  that  the first  legislature                                                                    
passed  84  bills  and  111   resolutions  in  60  days.  He                                                                    
highlighted  some   of  the  laws.  He   remarked  that  the                                                                    
legislature passed a  law allowing women the  right to vote,                                                                    
several  years before  congress.  He pointed  out five  more                                                                    
notable laws  that were passed  in the first  legislature of                                                                    
Alaska:                                                                                                                         
                                                                                                                                
     - "An  Act to  Prevent the Desecration  of the  Flag of                                                                    
     U.S., and  to Provide Punishment For  Carrying Flags in                                                                    
     Public  Parades or  Flying  Them  From Buildings  Under                                                                    
     Certain Conditions"                                                                                                        
     - "An  Act to Require  Hotels and Lodging Houses  to be                                                                    
     Provided   With   Fire   Escapes,  Ropes,   and   Other                                                                    
     Appliances"                                                                                                                
     - "An Act to Prevent  Employees from Being Oppressed by                                                                    
     Reason of  an Employer  Compelling Them  to Board  at a                                                                    
     Particular  Boarding House,  or  to  Purchase Goods  or                                                                    
     Supplies at a Particular Store."                                                                                           
     - "An Act to Establish  Juvenile Courts, to Provide For                                                                    
     the  Care   of  Dependent   Children,  and   to  Create                                                                    
     Childrens' Guardians in Alaska…"                                                                                           
     - "An Act  to Prevent the Spread  of Contagious Disease                                                                    
     Among Livestock"                                                                                                           
                                                                                                                                
Mr. Lamkin  discussed slide 8,  "A Sampling of  Session Laws                                                                    
of 1913." He discussed six more  laws of note from the first                                                                    
legislature of Alaska:                                                                                                          
                                                                                                                                
     - "An  Act to Provide  For the Registration  of Persons                                                                    
     Employed  to Advocate  or Oppose  Legislative Measures,                                                                    
     and  to  Regulate  the  Method   of  Such  Advocacy  or                                                                    
     Opposition"                                                                                                                
     - "An  Act to Provide  For the Compulsory  Education of                                                                    
     the Children of Alaska…"                                                                                                   
     -  "An  Act  to  Fix the  Liability  of  Employers  For                                                                    
     Personal Injuries Sustained by Their Employees"                                                                            
     - "An  Act Prohibiting  the Casting of  Sawdust, Planer                                                                    
     Shavings,  and Other  Lumber Waste  Into the  Waters of                                                                    
     Alaska..."                                                                                                                 
     - "An Act to Provide Punishment For Pimps or Macques"                                                                      
     -  "An  Act  to  Create a  Board  of  Commissioners  to                                                                    
     Provide  For a  Home for  Aged Prospectors  in Interior                                                                    
     Alaska"                                                                                                                    
                                                                                                                                
Co-Chair Thomas wondered  if the Flag Act  had been repealed                                                                    
since the first Alaska legislature.  He remarked that he had                                                                    
recently visited  the Treadwell Ice Arena,  and noticed that                                                                    
the U.S.  flag was level with  the Canadian flag. He  made a                                                                    
complaint with  an employee at  the Ice Arena, and  was told                                                                    
that they  receive that  complaint many  times. He  told the                                                                    
employee  that veterans  would be  "very upset"  to see  the                                                                    
U.S.  flag flying  equal to  a foreign  country's flag.  Mr.                                                                    
Lamkin replied  that he assumed  that the flag act  had been                                                                    
amended, but was not sure.                                                                                                      
                                                                                                                                
Mr.  Lamkin looked  at slide  9, which  was a  photo of  the                                                                    
first territorial  senate in  1913, in  what he  assumed was                                                                    
the second floor of the  Elks Hall. Elwood Brunner, pictured                                                                    
in the front and left-hand side  of the photo, was the first                                                                    
president  pro-tem  of  the Alaska  State  Senate.  He  also                                                                    
served as the Rules Committee Chairman.                                                                                         
                                                                                                                                
9:23:14 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  requested a description and  intent of the                                                                    
fiscal note  attached to the  bill. Mr. Lamkin  replied that                                                                    
the purpose of the fiscal  note was to allow the legislature                                                                    
some  flexibility   in  spending   on  the   project.  Other                                                                    
organizations  were  contacted  to  determine  a  reasonable                                                                    
figure,  in  order  to  shape   the  logistics  of  bringing                                                                    
legislators  and  state  officials  from  around  the  state                                                                    
together for the celebration.                                                                                                   
                                                                                                                                
Co-Chair Stoltze  surmised that the  geographical references                                                                    
were intended for the purpose  of estimated the fiscal note.                                                                    
Mr. Lamkin agreed.                                                                                                              
                                                                                                                                
Co-Chair  Stoltze hoped  to not  spend the  amount of  money                                                                    
represented in  the fiscal note.  He thought it should  be a                                                                    
community    based   celebration,    like   the    statehood                                                                    
celebration. Mr. Lamkin agreed.                                                                                                 
                                                                                                                                
Representative  Doogan felt  the focus  should really  about                                                                    
the whole history  of Alaska, and not  just the legislature.                                                                    
He  read part  of the  bills  that passed  during the  first                                                                    
Alaska legislature, and related a personal story.                                                                               
                                                                                                                                
9:29:41 AM                                                                                                                    
                                                                                                                                
STEPHEN HAYCOX,  PROFESSOR OF HISTORY, UNIVERSITY  OF ALASKA                                                                    
ANCHORAGE (via teleconference), testified  in support of SCR
24. He felt  that it was important for  education in Alaska.                                                                    
Before  the  legislature  was  held   in  1913,  Alaska  was                                                                    
effectively  ruled  by   the  "federal  bureaucracy."  James                                                                    
Wickersham, who  supported the  formation of  a legislature,                                                                    
was  very  committed  to  the idea  of  "government  by  the                                                                    
consent of the governed." He  remarked that the formation of                                                                    
the first  legislature was an important  step towards Alaska                                                                    
statehood.                                                                                                                      
                                                                                                                                
Representative Edgmon  stated that Professor Haycox  was his                                                                    
history teacher in 1984.                                                                                                        
                                                                                                                                
9:33:35 AM                                                                                                                    
                                                                                                                                
TERRENCE COLE,  PROFESSOR OF  HISTORY, UNIVERSITY  OF ALASKA                                                                    
FAIRBANKS (via teleconference), testified  in support of SCR
24. He  stated that  James Wickersham stopped  the territory                                                                    
from being  ruled by Washington  D.C. He remarked  that this                                                                    
resolution was  not party-based,  but merely a  narrow focus                                                                    
on  a  part  of  state  history education.  He  felt  it  is                                                                    
important to  remind Alaskans of  this particular  aspect of                                                                    
Alaska history.                                                                                                                 
                                                                                                                                
Co-Chair Stoltze appreciated Terrence Cole's publications.                                                                      
                                                                                                                                
Representative Doogan related another personal story.                                                                           
                                                                                                                                
Co-Chair Stoltze closed the public testimony.                                                                                   
                                                                                                                                
Representative Neuman  recalled that there was  $25,000 left                                                                    
over from the Alaska  Statehood Celebration. He thought that                                                                    
that  money  may  have  been  placed  in  an  endowment.  He                                                                    
wondered if that money could be used toward SCR 24.                                                                             
                                                                                                                                
Representative Guttenberg  hoped that the archives  from the                                                                    
celebration   of  the   100th  anniversary   of  the   first                                                                    
legislature   would   be   easily  accessible   for   future                                                                    
generations.                                                                                                                    
                                                                                                                                
9:40:36 AM                                                                                                                    
                                                                                                                                
Co-Chair  Thomas MOVED  to report  SCR 24  out of  committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SCR  24 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and  with previously published  fiscal impact                                                                    
note: FN1 (LEG).                                                                                                                
                                                                                                                                
9:41:03 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:45:16 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 91(FIN)                                                                                                
                                                                                                                                
     "An Act amending the termination date of the licensing                                                                     
     of sport fishing operators and sport fishing guides;                                                                       
     and providing for an effective date."                                                                                      
                                                                                                                                
SHYAN ELY, INTERN, SENATOR LESIL  MCGUIRE, explained that SB
91  extended  the  sunset  date  of  the  sport  fish  guide                                                                    
licensing and  reporting program, and provided  an effective                                                                    
date.  Legislation  for this  program  was  first passed  in                                                                    
2004,  and  was  proven  beneficial  to  the  sport  fishing                                                                    
industry.  It required  licensing  and  regulation of  sport                                                                    
fishing  operators, guides,  and  vessels.  The program  has                                                                    
provided  an   average  of  1,541  sport   fishing  business                                                                    
licenses, and  1,828 sport fishing guide  licenses annually.                                                                    
She  stated   that  90  percent  of   licenses  were  Alaska                                                                    
residents. The  sport fishing guide industry  had taken more                                                                    
than 2.6 million clients fishing  from 2005 to 2010 totaling                                                                    
more  than 625,000  guided fishing  trips in  Alaska. Guided                                                                    
sport  fishing  had  become an  integral  part  of  Alaska's                                                                    
tourism  economy.  In  2007,  $1.39  billion  was  spent  on                                                                    
licenses  and  stamps;  trip-related  expenditures;  fishing                                                                    
packages; equipment; and real  estate used for fishing. This                                                                    
spending  supported more  than  15,879 jobs  in Alaska,  and                                                                    
provided $545.3 million in income.  She explained that SB 91                                                                    
provided   accurate   counting    for   Alaska's   harvested                                                                    
resources. Federal law for guided  halibut sport fishing was                                                                    
tied to the  Alaska Sport Fishing log books,  and failure to                                                                    
keep  the  program  in  place would  likely  result  in  the                                                                    
development  of a  federal log  book for  halibut, therefore                                                                    
creating duplication of  efforts at a later  date. Alaska is                                                                    
exempt  from  participating  in  the  National  Oceanic  and                                                                    
Atmospheric   Administration   (NOAA)  Fisheries   Saltwater                                                                    
Angler  Registry  Program,  in  part, as  a  result  of  the                                                                    
information  collected  through   the  sport  fishing  guide                                                                    
licenses and  reporting program.  She reiterated that  SB 91                                                                    
extended the sunset date of the program.                                                                                        
                                                                                                                                
Co-Chair  Thomas  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for  CS  SB 91  (FIN),  Work  Draft  27-LS0550\M                                                                    
(Bullard, 3/16/12).                                                                                                             
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
Representative  Neuman  wondered  if   the  guide  log  book                                                                    
calculations were up to date.                                                                                                   
                                                                                                                                
BEN  MULLIGAN, SPECIAL  ASSISTANT,  DEPARTMENT  OF FISH  AND                                                                    
GAME, replied that the log books were up to date.                                                                               
                                                                                                                                
9:50:09 AM                                                                                                                    
                                                                                                                                
ROD ARNO-PALMER, EXECUTIVE  DIRECTOR, ALASKA OUTDOOR COUNCIL                                                                    
(via teleconference),  testified in opposition to  SB 91. He                                                                    
did not believe  that the Department of Fish  and Game (DFG)                                                                    
had administrated  the program well.  He stated that  he was                                                                    
in support  of the  program, but could  not support  a four-                                                                    
year extension.  He stressed that  he was not  supportive of                                                                    
the program taking money from guide-less fishermen.                                                                             
                                                                                                                                
Mr.  Mulligan  stated  that  DFG funds  were  used  for  the                                                                    
program,  and the  cost program  administration was  greater                                                                    
than the  set fees. He  stressed that a large  percentage of                                                                    
sport fishermen use guides, and  the log book data helps DFG                                                                    
harvest surplus, without being too conservative.                                                                                
                                                                                                                                
Co-Chair Thomas wondered  if DFG had the  ability to observe                                                                    
and record  the activities  of the average  sport fisherman.                                                                    
Mr. Mulligan replied that DFG  conducts creel surveys and an                                                                    
annual sport fish survey.                                                                                                       
                                                                                                                                
9:54:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze MOVED to ADOPT Amendment 1.                                                                                    
                                                                                                                                
                        Amendment 1                                                                                           
     On page 1 line 8                                                                                                           
     Delete "2017" Insert "2015"                                                                                                
                                                                                                                                
Representative Doogan OBJECTED for purpose of discussion.                                                                       
                                                                                                                                
Co-Chair Stoltze  explained that the amendment  would extend                                                                    
the program  for 2  years rather than  4 years.  He remarked                                                                    
that he  keeping the program  extended for a  shorter period                                                                    
of time would cause the  legislature to continue to evaluate                                                                    
the effectiveness of the program.                                                                                               
                                                                                                                                
Representative Doogan wondered if  the amendment would cause                                                                    
a substantive  change in the  program. Mr.  Mulligan replied                                                                    
that changing  the extension from  four years to  two, would                                                                    
result in a more relevant evaluation.                                                                                           
                                                                                                                                
Representative  Doogan  wondered,  again, if  the  amendment                                                                    
would make  a substantive change  to the bill.  Mr. Mulligan                                                                    
replied  that the  amendment would  not  make a  substantive                                                                    
change to the bill.                                                                                                             
                                                                                                                                
Representative  Doogan WITHDREW  his objection.  There being                                                                    
NO further OBJECTION Amendment 1 was adopted.                                                                                   
                                                                                                                                
Mr. Mulligan spoke to the  fiscal note attached to the bill.                                                                    
He  said  that  the   fiscal  note  reflected  the  original                                                                    
proposed  extension  to  January   1,  2017.  Now  that  the                                                                    
amendment  was  adopted,  the fiscal  note  will  change  by                                                                    
removing FY 16 and FY 17.                                                                                                       
                                                                                                                                
9:57:23 AM                                                                                                                    
                                                                                                                                
Representative  Wilson   how  many  people   administer  the                                                                    
program.  Mr. Mulligan  replied  that he  did  not know  the                                                                    
exact  number  of people  who  administer  the program.  The                                                                    
process is spread out among  people who have multiple duties                                                                    
and responsibilities.                                                                                                           
                                                                                                                                
Co-Chair  Thomas MOVED  to report  HCS CSSB  91(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS CSSB  91(FIN) was REPORTED  out of committee with  a "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from the Department of Fish and Game.                                                                                           
                                                                                                                                
9:58:14 AM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
4:37:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 19(FIN)                                                                                                
                                                                                                                                
     "An Act specifying the vehicle rental tax for                                                                              
     motorcycles and motor-driven cycles; and providing for                                                                     
     an effective date."                                                                                                        
                                                                                                                                
4:37:37 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute   for  CSSB   19(FIN),  Work   Draft  27-LS0157\I                                                                    
(Luckhaupt, 4/13/12).                                                                                                           
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
JOE  MICHEL, STAFF,  REPRESENTATIVE BILL  STOLTZE, explained                                                                    
the  changes  in the  work  draft.  The  3 percent  tax  for                                                                    
motorcycles  was removed  from the  previous version  of the                                                                    
bill. Page 3,  line 11, Section H stated  that "a motorcycle                                                                    
or  motor-driven cycles  as those  terms are  defined in  AS                                                                    
28.90.990."                                                                                                                     
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, Work Draft 27-LS0157\I was adopted.                                                                          
                                                                                                                                
Co-Chair Stoltze  wondered if the  bill sponsor  was pleased                                                                    
with the changes in the CS.                                                                                                     
                                                                                                                                
KRISTEN  PETERSON, STAFF,  SENATOR HOLLIS  FRENCH, responded                                                                    
that  the  bill  sponsor   and  Alaskan  motorcyclists  were                                                                    
pleased with the changes.                                                                                                       
                                                                                                                                
Vice-chair  Fairclough wondered  if the  CS would  cause any                                                                    
changes to  the current  fiscal notes. Ms.  Peterson replied                                                                    
that there would be a $3400 loss from the DOR fiscal note.                                                                      
                                                                                                                                
Vice-chair Fairclough pointed to the  second page of the DOR                                                                    
fiscal note, "the state  receives approximately $12,000 each                                                                    
year in  vehicle rental tax  from the rental  of motorcycles                                                                    
in  the  state  of  Alaska."  She  felt  that  the  accurate                                                                    
reflection on  the fiscal note  would be a  negative $12,000                                                                    
on FY 13 to FY 18.                                                                                                              
                                                                                                                                
Co-Chair  Thomas MOVED  to report  HCS CSSB  19(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS CSSB  19(FIN) was REPORTED  out of committee with  a "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from Department of Administration  and one new fiscal impact                                                                    
note by  the House Finance  Committee for the  Department of                                                                    
Revenue.                                                                                                                        
                                                                                                                                
4:41:51 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:43:18 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 23(FIN)                                                                                                
                                                                                                                                
     "An Act  relating to  transferable film  production tax                                                                    
     credits  and film  production tax  credit certificates;                                                                    
     requiring the  legislative audit division to  audit the                                                                    
     Alaska   film   production   incentive   program;   and                                                                    
     providing  for  an  effective   date  by  amending  the                                                                    
     effective dates of secs. 3 and 4, ch. 63, SLA 2008."                                                                       
                                                                                                                                
4:43:28 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute  for   CSSB  19(FIN),  Work   Draft  27-LS0252\XX                                                                    
(Bullock, 4/13/12).                                                                                                             
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
Representative Costello highlighted the  changes in the work                                                                    
draft. The work draft  incentivizes the Alaska Hire program.                                                                    
The  program  was  separated into  two  main  sections.  One                                                                    
section  referred to  those in  the film  industry who  were                                                                    
considered  "above  the   line",  which  include  producers,                                                                    
directors,  writers,  and  editors; and  the  other  section                                                                    
referred to workers considered "below  the line." The "below                                                                    
the line"  workers referred  to electricians,  caterers, and                                                                    
much  of the  behind the  scenes workers  on film  sets. She                                                                    
stated that the "below the  line" section sustained the base                                                                    
tax rate  at 30  percent overall,  extended the  program for                                                                    
ten years,  and continued the  funding at the  current level                                                                    
at $200 million.  The Alaska Hire bonus was  doubled from 10                                                                    
percent  to  20  percent.  The   House  Labor  and  Commerce                                                                    
incentive  for rural  Alaskans would  be set  at 6  percent,                                                                    
which was  higher than  the current  program. The  2 percent                                                                    
incentive remained the same for  films that were produced in                                                                    
the off-season.                                                                                                                 
                                                                                                                                
Co-Chair Thomas  clarified that the 6  percent incentive was                                                                    
"additional" to the current incentive.                                                                                          
                                                                                                                                
Representative Costello  stated that the work  draft removed                                                                    
the  44  percent cap  on  the  credits. The  first  scripted                                                                    
television   show   to   produce  16   episodes   would   be                                                                    
incentivized, because episodic  television brought more jobs                                                                    
over the  long term.  The "above the  line" credit  had been                                                                    
tied  to  Alaska  Hire,  and  required  spending  on  Alaska                                                                    
businesses. The  base rate for  the "above the  line" credit                                                                    
was 5  percent, so companies  could earn a higher  credit by                                                                    
hiring  Alaskans and  patronizing  Alaska businesses.  Fifty                                                                    
percent  of  the amount  that  is  spent  on the  wages  and                                                                    
benefits to Alaskans and Alaska  business, would be credited                                                                    
in the "above the line" section                                                                                                 
                                                                                                                                
4:48:45 PM                                                                                                                    
                                                                                                                                
Representative  Costello stressed  that she  wanted Alaskans                                                                    
involved in the  film productions that were  produced in the                                                                    
state. The  bill aimed  to increase  the credibility  of the                                                                    
review process by creating the  Alaska Film Incentive Review                                                                    
Commission, housed  in DOR. Four commissioners  would sit on                                                                    
the commission,  including the commissioners from  DOR, DNR,                                                                    
DOL, and DCCED. A majority  of the members of the commission                                                                    
must approve  the script and  summary of  the pre-qualifying                                                                    
process.                                                                                                                        
                                                                                                                                
Co-Chair Stoltze  wondered if  the commissioners  from those                                                                    
departments  were the  actual  commissioners, or  designees.                                                                    
Representative  Costello  responded that  the  commissioners                                                                    
would be the actual commissioners from those departments.                                                                       
                                                                                                                                
Representative  Costello  stated   that  the  administrative                                                                    
function of  the program was put  into DOR, because it  is a                                                                    
tax program. The  promotion portion of the  program would be                                                                    
kept in  DCCED, which is  the department that  was marketing                                                                    
Alaska's  development.  A  75 cents  on-the-dollar  buy-back                                                                    
option  was  included in  the  work  draft to  provide  some                                                                    
certainty for some smaller productions  that may not be able                                                                    
to find a corporate tax payer  who could buy the credit. The                                                                    
credit was  adjusted to remove competition  with the private                                                                    
sector,  but  also  provide  some  stability.  In  addition,                                                                    
people  were no  longer allowed  to broker  the credit.  She                                                                    
looked at page  13, lines 9 through 11,  "The commission may                                                                    
not approve  an application for  a film production  that the                                                                    
commission  finds  is  contrary   to  the  natural  resource                                                                    
development policy of the state."                                                                                               
                                                                                                                                
4:51:59 PM                                                                                                                    
                                                                                                                                
Representative Doogan  asked for more  information regarding                                                                    
page  13,  lines  9   through  11.  Representative  Costello                                                                    
explained that  currently the program  required a  review of                                                                    
the  script to  ensure that  there was  nothing in  conflict                                                                    
with  Alaska's constitution.  That  portion  of the  program                                                                    
remained the same, but language  was changed from "shall" to                                                                    
"will." By  elevating the review board  to the commissioner-                                                                    
level,  it  added  some  additional  accountability  in  the                                                                    
review of the scripts.                                                                                                          
                                                                                                                                
Representative  Doogan asked  for an  explanation about  why                                                                    
the script could not be  against the natural resource policy                                                                    
of  the  State.  Representative  Costello  replied  that  an                                                                    
example  would  be  that  the  film  could  not  include  an                                                                    
overview  of fracking  and its  damage  to the  environment,                                                                    
when the state was  possibly considering fracking technology                                                                    
in the state.                                                                                                                   
                                                                                                                                
Co-Chair  Stoltze  furthered  that   it  would  be  anything                                                                    
produced by Michael Moore.                                                                                                      
                                                                                                                                
Representative Doogan  wondered if this would  be considered                                                                    
censorship.                                                                                                                     
                                                                                                                                
4:55:15 PM                                                                                                                    
                                                                                                                                
Representative Costello replied that  the only time that the                                                                    
issue  of   censorship  was   brought  to   the  committee's                                                                    
attention, was in  relation to people who  testify in public                                                                    
hearings.  She  stated that  there  was  nothing that  could                                                                    
prevent freedom  of speech. However, in  terms of "censoring                                                                    
scripts",  the  State  had  an  interest  in  reviewing  the                                                                    
scripts  for the  credit. There  were several  items in  the                                                                    
bill that the commission  would be considering, and happened                                                                    
to  include Alaska's  natural resources.  Ninety percent  of                                                                    
Alaska's state  government was  funded from  oil production.                                                                    
The  State had  an  interest in  protecting  its ability  to                                                                    
develop resources responsibly,  without encouraging a public                                                                    
relations  campaign  that  could   be  detrimental  to  that                                                                    
effort.                                                                                                                         
                                                                                                                                
Representative  Doogan  wondered  what  would  happen  if  a                                                                    
person provided a  script to the commission,  and the script                                                                    
was rejected  because it did  not "toe the party  line", and                                                                    
therefore the  film company sued  the State. He  wondered if                                                                    
this would  be defensible in court.  Representative Costello                                                                    
deferred to Co-Chair Stoltze.                                                                                                   
                                                                                                                                
Co-Chair  Stoltze replied  that he  did not  believe it  was                                                                    
considered "free speech" if the State was paying for it.                                                                        
                                                                                                                                
Representative  Doogan   stressed  that  he   was  concerned                                                                    
whether  or not  this change  was "protected  legal ground."                                                                    
Co-Chair Stoltze  replied that  he only  wanted to  pass the                                                                    
bill if it was considered "protected legal ground."                                                                             
                                                                                                                                
Representative Gara believed  the legislation was important,                                                                    
and  shared  the  concerns   of  Representative  Doogan.  He                                                                    
referred  to  a  movie  entitled,  "Salmonberries."  Someone                                                                    
could have made  the case that the movie  made Kotzebue look                                                                    
bad, or  someone could say  that the movie  "opened peoples'                                                                    
eyes" to  a different  part of the  world. He  was concerned                                                                    
about allowing  a State bureaucrat  to determine  whether or                                                                    
not a movie was in the  best interest of the state. He added                                                                    
that  censorship  was  also an  issue  in  this  discussion,                                                                    
because he felt that the commission would be too partisan.                                                                      
                                                                                                                                
4:59:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:59:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Doogan remarked that he  did not want to have                                                                    
a political debate.                                                                                                             
                                                                                                                                
4:59:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:59:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
MATT MOSER,  STAFF, SENATOR JOHNNY ELLIS,  stressed that the                                                                    
purpose of  the bill  was economic development.  He remarked                                                                    
that there  was a provision in  the bill that did  not allow                                                                    
pornography.                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  remarked that  Senator Ellis  inserted the                                                                    
provision on pornography, and Senator  Ellis did not believe                                                                    
that  the  provision  on   pornography  was  not  considered                                                                    
"censorship." Mr. Moser agreed.                                                                                                 
                                                                                                                                
Representative  Neuman looked  at page  4; lines  16 through                                                                    
19, regarding the  total number of tax  credits in aggregate                                                                    
may not exceed  $100 million for a  qualified production. He                                                                    
wondered  if that  was  $100 for  only  one production.  Mr.                                                                    
Moser replied  that the intention  was that there  were $100                                                                    
million in  credits available  for the  first five  years of                                                                    
the program, and  $200 million in credits in  the second ten                                                                    
years of the program.                                                                                                           
                                                                                                                                
Representative Neuman  wondered if the $100  million was the                                                                    
total amount  of credits the  State would provide, or  if it                                                                    
was for  one individual  production. Mr. Moser  replied that                                                                    
he had not had a chance to  look at the draft, but it should                                                                    
say  $200  million  for  "productions"  qualified  under  AS                                                                    
44.25.120.                                                                                                                      
                                                                                                                                
Representative  Neuman surmised  that  it  was a  cumulative                                                                    
number. Mr. Moser agreed.                                                                                                       
                                                                                                                                
Representative Gara  understood that the side  effect of the                                                                    
"best interest  of the state"  issue would be a  side effect                                                                    
of attracting tourism in the state. Mr. Moser agreed.                                                                           
                                                                                                                                
Representative Gara commented that there  did not have to be                                                                    
an agreement for  every provision of the  bill, and accepted                                                                    
Mr. Moser's response.                                                                                                           
                                                                                                                                
Co-Chair Stoltze would hold the  bill to get an opinion from                                                                    
Department of Law on the censorship issue.                                                                                      
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
5:04:50 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
6:45:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATOR  JOHNNY   ELLIS,  SPONSOR,  addressed   most  recent                                                                    
concern with language in the  bill. The committee substitute                                                                    
elevates   the  script   review  of   television  and   film                                                                    
production  scripts  to  the   commissioner  level,  and  he                                                                    
supported  that   change.  He   stressed  that   the  Alaska                                                                    
Constitution  requires the  development of  Alaska resources                                                                    
for  the maximum  benefit of  the people.  So, if  there was                                                                    
ever a film  or television project that  was antithetical to                                                                    
the Alaska  Constitution and its purpose,  the project could                                                                    
be appropriately prohibited.  The Parnell administration and                                                                    
Alaskans should turn down movies  or documentaries that were                                                                    
not in the best interest of the people.                                                                                         
                                                                                                                                
Co-Chair Stoltze thanked Senator Ellis.                                                                                         
                                                                                                                                
Representative Neuman MOVED to ADOPT Amendment 1:                                                                               
                                                                                                                                
     On page 4 line 16                                                                                                          
     Delete "a production"                                                                                                      
     Insert "productions"                                                                                                       
                                                                                                                                
     On page 4 line 18                                                                                                          
     Delete "a production"                                                                                                      
     Insert "productions"                                                                                                       
                                                                                                                                
Representative   Neuman   explained   that   the   amendment                                                                    
represented the  money as  a cumulative  amount and  not per                                                                    
production.                                                                                                                     
                                                                                                                                
Senator Ellis approved the amendment.                                                                                           
                                                                                                                                
6:52:19 PM                                                                                                                    
                                                                                                                                
DAN    BRANCH,    SENIOR   ASSISTANT    ATTORNEY    GENERAL,                                                                    
COMMERCIAL/FAIR   BUSINESS  SECTION,   DEPARTMENT  OF   LAW,                                                                    
introduced himself.                                                                                                             
                                                                                                                                
Representative Doogan asked  the way the bill  is drafted in                                                                    
a way that certain people could  make a decision not to fund                                                                    
a production and  wanted to know whether that  is legal. Mr.                                                                    
Branch replied  that the language  was legal. The  reason is                                                                    
because the  bill does not  restrict speech but the  way the                                                                    
state decides to spend its money.                                                                                               
                                                                                                                                
Representative  Neuman MOVED  to  ADOPT  Amendment 1.  There                                                                    
being NO OBJECTION it was so ordered.                                                                                           
                                                                                                                                
6:55:18 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough asked  for clarification pertaining to                                                                    
the fiscal notes attached to  the bill. She pointed out that                                                                    
the  fiscal notes  reflected and  addition of  $100 million;                                                                    
she understood that the intention was to add $200 million.                                                                      
                                                                                                                                
Representative  Costello   replied  that   page  2   of  the                                                                    
Department  of  Revenue  fiscal   note,  under  the  section                                                                    
"revenues," declared that the  bill would increase the total                                                                    
tax credit from $100 million to  $200 million, and was not a                                                                    
correct  reflection  of the  bill.  She  explained that  the                                                                    
legislation  intended  to  increase  the  credit  from  $100                                                                    
million  to $300  million because  of the  addition of  $200                                                                    
million  over the  next ten  years. She  concluded that  the                                                                    
fiscal  note  would  need  to  be  changed  to  reflect  the                                                                    
intended fiscal impact of the bill.                                                                                             
                                                                                                                                
Vice-chair  Fairclough  interjected   that  the  legislation                                                                    
would  affect  the DOR's  taxation  division.  She spoke  to                                                                    
fiscal  note #3,  dated  4/13/2012,  5:45p.m. She  purported                                                                    
that  the projected  spending from  FY14  to FY18  increased                                                                    
funding to  support 4 positions: $460,000  in FY14; $448,400                                                                    
in  FY15 through  FY18.  She noted  that  the bill  language                                                                    
referenced in  the analysis should  be changed to  reflect a                                                                    
$200   million   tax   credit   between   2013   and   2023.                                                                    
Additionally, the  total accumulation  should be  changed to                                                                    
$300 million. She  pointed out that the  revenues section of                                                                    
the analysis should  be changed to reflect  increases in the                                                                    
total tax  credits from  $100 million  to $300  million. She                                                                    
explained that it would allow  for approximately $20 million                                                                    
in  tax  credits,  per  year, over  three  separate  5  year                                                                    
periods. She  relayed that under  expenditures it  should be                                                                    
noted that there were 2  positions that DOR was proposing to                                                                    
be transferred in, and 2 that were additions.                                                                                   
                                                                                                                                
Vice-chair Fairclough  discussed the NEW fiscal  note, which                                                                    
affected the Department of  Commerce, Community and Economic                                                                    
Development  (DCCED). She  shared  that  the department  was                                                                    
proposed to spend  between FY13 and FY 18;  $281.200, with 2                                                                    
full-time positions.                                                                                                            
                                                                                                                                
Vice-chair  Fairclough  stated  that the  NEW  fiscal  note,                                                                    
which  was  allocated  to the  Legislative  Audit  Division,                                                                    
reflected zero fiscal impact.                                                                                                   
                                                                                                                                
Co-Chair Stoltze  wondered if DOR  had been  assisting DCCED                                                                    
with tax auditing.                                                                                                              
                                                                                                                                
CURTIS THAYER, DEPUTY  COMMISSIONER, DEPARTMENT OF COMMERCE,                                                                    
COMMUNITY  AND ECONOMIC  DEVELOPMENT, replied  that DOR  was                                                                    
currently assisting  with the  tax certification  portion of                                                                    
the program.                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  requested further explanation  of the                                                                    
two  additional  auditing  positions discussed  on  the  DOR                                                                    
fiscal note under expenditures.                                                                                                 
                                                                                                                                
Mr. Thayer  responded that the department  currently had two                                                                    
people  helping to  manage the  program that  the department                                                                    
wished  to retain.  The fiscal  note proposed  that the  two                                                                    
positions  remain within  DCCED because  the department  was                                                                    
responsible for the  promotion, follow-up, coordination, and                                                                    
the marketing of the film program.                                                                                              
                                                                                                                                
Co-Chair Stoltze maintained confusion  as to where the extra                                                                    
work was  being generated  that required the  two additional                                                                    
positions.                                                                                                                      
                                                                                                                                
Mr. Thayer deferred the question to DOR.                                                                                        
                                                                                                                                
Co-Chair Stoltze asked if the  new positions would have been                                                                    
necessary if the program were handled exclusively by DCCED.                                                                     
                                                                                                                                
Mr. Thayer responded that the  auditing had been done by the                                                                    
business  development  specialist.  He said  that  when  the                                                                    
program  was originally  designed,  DCCED  handled the  pre-                                                                    
qualifications, the  auditing function of going  through the                                                                    
applications,  and the  final  application.  He stated  that                                                                    
DCCED  had turned  those responsibilities  over  to DOR.  He                                                                    
furthered  that  DCCED had  also  been  responsible for  the                                                                    
marketing  function and  the  coordination functions,  which                                                                    
had  been split  up because  it was  believed that  the same                                                                    
individual  should be  doing the  auditing and  handling the                                                                    
pre-qualifications at the same time.                                                                                            
                                                                                                                                
7:01:57 PM                                                                                                                    
                                                                                                                                
JOHANNA BALES, DEPUTY DIRECTOR,  TAX DIVISION, DEPARTMENT OF                                                                    
REVENUE  (via  teleconference),  understood  that  the  bill                                                                    
created  an executive  director  position to  work with  the                                                                    
newly  created  review  commission. Additionally,  the  bill                                                                    
required an  on-site liaison to  consult producers  on large                                                                    
productions,  which had  necessitated  the  creation of  the                                                                    
second position.                                                                                                                
                                                                                                                                
Representative Costello  commented that  the intent  was not                                                                    
to have a full-time liaison position.                                                                                           
                                                                                                                                
Co-Chair Stoltze  suggested that the fiscal  note would need                                                                    
to be adjusted according to interpretation of the bill.                                                                         
                                                                                                                                
Representative Costello thought that  it would be prudent to                                                                    
reduce   the   number  of   positions,   and   to  keep   in                                                                    
communication  with the  department as  staffing needs  were                                                                    
brought to light.                                                                                                               
                                                                                                                                
7:04:32 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough directed attention  to the fiscal note                                                                    
from DOR,  which suggested the  extraction of  two employees                                                                    
from  DCCED;  however,  the same  two  positions  were  also                                                                    
listed on the  fiscal note for DCCED.  She  stated that from                                                                    
a  legislative perspective,  the additional  two people  had                                                                    
not been anticipated.  She said that she  understood why DOR                                                                    
would   want  one   dedicated   person,  requested   further                                                                    
explanation   of  the   DCCED  request   for  2   additional                                                                    
positions.                                                                                                                      
                                                                                                                                
Mr. Thayer replied  that the purpose of  the film production                                                                    
promotion  program was  to work  with  organizations in  the                                                                    
private  sector for  expansion and  development of  the film                                                                    
production industry  in the state;  to promote Alaska  as an                                                                    
appropriate  location  of  a  film  production;  to  provide                                                                    
production  assistance  through connecting  film  directors,                                                                    
makers,  and  producers  with  Alaska  location  scouts  and                                                                    
contractors,  including   contractors  providing  assistance                                                                    
with   permit    applications.   He   stated    that   those                                                                    
responsibilities   were  currently   covered  by   DCCED  in                                                                    
addition  to the  pre and  post  application. He  understood                                                                    
that  the fiscal  note requested  2 positions  but that  the                                                                    
department  often had  4  or 5  people  splitting duties  to                                                                    
handle  all of  the aforementioned  activates. He  testified                                                                    
that as deputy  director he had dedicated, at  one point, 20                                                                    
percent of his working day to this program.                                                                                     
                                                                                                                                
Representative   Gara   understood   that   the   department                                                                    
currently  had liaisons  that  promote  Alaska. He  wondered                                                                    
where the  extra work for  the department was going  to come                                                                    
from.  Mr. Thayer replied  that the work would continue with                                                                    
the existing amount of employees.                                                                                               
                                                                                                                                
Representative  Gara  thought  that that  the  fiscal  notes                                                                    
could  be  zeroed  because  most  of  positions  were  being                                                                    
transferred  between agencies.  Mr.  Thayer reiterated  that                                                                    
the  program   had  the   promotional  component,   the  pre                                                                    
application component and the  final application part of the                                                                    
program. He said  that some of the workload  was still being                                                                    
handled by, and would remain in the department by statute.                                                                      
                                                                                                                                
7:07:52 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  moved to  amend the DOR  fiscal note;                                                                    
FY14 through  FY18, $230.200 and  2 positions.  She believed                                                                    
that the  money would  fund one Tax  Auditor III  (Range 20)                                                                    
and one Tax Technician ii (Range 12).                                                                                           
                                                                                                                                
Ms.  Bales  asked  about  the provision  in  the  bill  that                                                                    
expects  an  executive  director consult  the  newly  formed                                                                    
commission and to oversee the staff of the Film Office.                                                                         
                                                                                                                                
Representative   Costello   interjected   that   there   was                                                                    
currently  an individual  within DCCED  that was  serving in                                                                    
the position. She  stressed that it had not  been the intent                                                                    
of the subcommittee to hire a new executive director.                                                                           
                                                                                                                                
Co-Chair Stoltze asked  if the handling of  the position was                                                                    
to be left up to the department.                                                                                                
                                                                                                                                
Representative Costello responded that  the bill stated that                                                                    
the departments  should work together  to determine  how the                                                                    
position was filled.                                                                                                            
                                                                                                                                
Representative  Doogan  understood  that  the  fiscal  notes                                                                    
could be  improved by  requesting two  positions in  DOR and                                                                    
two in  DCCED. Vice-chair  Fairclough replied that  that was                                                                    
the intent of her motion.                                                                                                       
                                                                                                                                
7:10:51 PM                                                                                                                    
                                                                                                                                
Representative  Gara expressed  confusion  as  to why  DCCED                                                                    
needed the  two new positions.  He felt that DOR  needed two                                                                    
new   positions   for   taxes,   and   there   was   obvious                                                                    
coordination.                                                                                                                   
                                                                                                                                
Vice-chair Fairclough explained that  DOR had not been doing                                                                    
audits; Legislative Audit had  been handling audits from the                                                                    
legislative side.  The effort would  now move to  DOR; DCCED                                                                    
would continue  to work with  DOR, as well as  continuing to                                                                    
promote and interface  in a variety of ways to  put the Film                                                                    
Office to  work for the state  of Alaska. She said  that the                                                                    
request  from  DCCED  had  been  that  the  committee  would                                                                    
recognize that if the program  was successful DOR would need                                                                    
to be involved.   She added that the  functionality could be                                                                    
revisited in 2013.                                                                                                              
                                                                                                                                
Vice-chair Fairclough asked if there  was any reason why the                                                                    
executive director should not reside in the Film Office.                                                                        
                                                                                                                                
Mr. Bales  stated that she  saw no reason why  the executive                                                                    
director could not reside in  the Film Office. She felt that                                                                    
DOR would be  content with two auditor  positions to oversee                                                                    
the applications.                                                                                                               
                                                                                                                                
Vice-chair Fairclough stated that  the subcommittee had been                                                                    
trying  to establish  a  working  arrangement that  provided                                                                    
transparency  for  the film  industry  and  for the  credits                                                                    
being used.                                                                                                                     
                                                                                                                                
Ms.  Bales  explained that  there  was  a provision  in  the                                                                    
legislation  that stated  that the  executive director  must                                                                    
oversee  the  staff. She  thought  that  there should  be  a                                                                    
separation of duties written into legislation.                                                                                  
                                                                                                                                
7:14:10 PM                                                                                                                    
                                                                                                                                
Representative  Wilson thought  that  the  fiscal note  from                                                                    
DCCED would not  add two more positions,  but would maintain                                                                    
an  already  established full-time  development  specialist,                                                                    
and a full-time administrative  assistant II; detailed half-                                                                    
time to  the film  promotion program.  She queried  what the                                                                    
other half-time  duties would include. Mr.  Thayer responded                                                                    
that  the  administrative  assistant to  the  program  would                                                                    
additionally  serve  as  the  administrative  assistant  for                                                                    
DCCED in Anchorage.                                                                                                             
                                                                                                                                
Representative  Wilson  understood  that the  two  positions                                                                    
already  existed  and were  not  being  created. Mr.  Thayer                                                                    
replied that the department remain at the status quo.                                                                           
                                                                                                                                
7:15:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
7:18:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Costello MOVED  to report  HCS CSSB  23(FIN)                                                                    
out  of committee  with individual  recommendations and  the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered                                                                                                                      
                                                                                                                                
HCS CSSB  23(FIN) was REPORTED  out of committee with  a "do                                                                    
pass" recommendation  and with  two new fiscal  impact notes                                                                    
from  the  Department  of  Revenue  and  the  Department  of                                                                    
Commerce,  Community and  Economic Development  and one  new                                                                    
zero  note  from  the   Legislature.  [Note:  The  committee                                                                    
rescinded  its action  to  report out  HCS  CSSB 23(FIN)  on                                                                    
4/14/12  and  took  corrective  action.  See  House  Finance                                                                    
Committee minutes dated 4/14/12, 10:25 a.m.]                                                                                    
                                                                                                                                
7:19:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
7:23:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 210(FIN)                                                                                               
                                                                                                                                
     "An  Act  relating  to  crimes  against  children;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
AMY SALTZMAN, STAFF, SENATOR LESIL MCGUIRE, remarked on                                                                         
some changes that were made in the House Judiciary                                                                              
Committee. She highlighted Sections 1 through 4.                                                                                
                                                                                                                                
     Section  1  amends the  crime  of  Assault in  the  3rd                                                                    
     Degree under  AS 11.41.220(a) (1) (C)  and 11.41.220(a)                                                                    
     (3) by changing the age of  the victim from under 10 to                                                                    
     under  12 years  old.  AS 11.41.220(a)(1)(C)  currently                                                                    
     prohibits a person (18 years  or older) from recklessly                                                                    
     causing physical  injury to a  child under 10  years of                                                                    
     age  that  would  cause a  reasonable  person  to  seek                                                                    
     medical care, or causes physical  injury on two or more                                                                    
     occasions. The  bill would change  the victim's  age to                                                                    
     less than 12 years old.                                                                                                    
                                                                                                                                
     Section 2  amends the  definition of  "serious physical                                                                    
     injury" in for purposes  of the law prohibiting assault                                                                    
     in the 1st, 2nd, 3rd,  and 4th degrees and for reckless                                                                    
     endangerment. It  does so  by expanding  the definition                                                                    
     of serious physical  injury as it applies  to injury to                                                                    
     victims  under 12  years old.  It  adds the  following:                                                                    
     Physical injury to a person  under 12 years of age that                                                                    
     causes A) Serious  disfigurement; B) Serious impairment                                                                    
     of health,  by extensive bruising or  other injury that                                                                    
     would  cause  a  reasonable   person  to  seek  medical                                                                    
     treatment from  a health care professional  in the form                                                                    
     of diagnosis or treatment;  or C) Serious impediment of                                                                    
     blood   circulation   or  breathing.   This   broadened                                                                    
     definition will allow  for increased criminal liability                                                                    
     for crimes committed  on children under the  age of 12.                                                                    
     This  change recognizes  a  child's  faster ability  to                                                                    
     heal from serious injuries that  may not be included in                                                                    
    the current definition of serious physical injury.                                                                          
                                                                                                                                
     Section 3  amends the crime of  endangering the welfare                                                                    
     of  a  child   in  the  first  degree   by  adding  the                                                                    
     prohibition of  recklessly failing to  provide adequate                                                                    
     amounts  of  food  or  liquids   to  a  child,  causing                                                                    
     protracted impairment to a  child's health. This change                                                                    
     will  increase criminal  liability  for offenders  that                                                                    
     harm children by withholding food or liquids.                                                                              
                                                                                                                                
     Section 4  would adopt a  class C felony for  the crime                                                                    
     of  endangering the  welfare of  a child  in the  first                                                                    
     degree  by recklessly  withholding adequate  amounts of                                                                    
     food or liquids to a child.                                                                                                
                                                                                                                                
7:28:48 PM                                                                                                                    
                                                                                                                                
ANNE CARPENETI, ASSISTANT ATTORNEY GENERAL, LEGAL SERVICES                                                                      
SECTION-JUNEAU, CRIMINAL DIVISION, DEPARTMENT OF LAW,                                                                           
looked at Sections 5 through 18.                                                                                                
                                                                                                                                
     Sections  5  -  7  amend  the  law  (AS  12.47.040  and                                                                    
     12.47.060) addressing  procedures for persons  found to                                                                    
     be guilty  of a crime  but mentally ill,  by clarifying                                                                    
     that  the  decision  that  the  person  is  guilty  but                                                                    
     mentally  ill  must  be  made by  the  jury,  by  proof                                                                    
     beyond a reasonable doubt,  unless the defendant waives                                                                    
     this  requirement.   Under  AS  12.47.050(d), a  person                                                                    
     incarcerated  and found  guilty  but  mentally ill  and                                                                    
     still receiving treatment for a  mental illness, is not                                                                    
     eligible  for parole  release or  furlough.   For  this                                                                    
     reason,  Blakely v.  Washington,  542  U.S. 296  (2004)                                                                    
     (Blakely) requires  the decision relating to  whether a                                                                    
     person is  guilty but  mentally ill to  be made  by the                                                                    
     jury by proof beyond a reasonable doubt.                                                                                   
                                                                                                                                
     Section   8   amends    AS   12.55.025(i),   addressing                                                                    
     sentencing  procedures,  to   clarify  that  while  the                                                                    
     burden of proof in  sentencing proceedings is generally                                                                    
     by a  preponderance of evidence,  under AS  12.55 there                                                                    
     are numerous  statutes that specify a  different burden                                                                    
     of proof.                                                                                                                  
                                                                                                                                
     Section 9 and 10 provides  that when a defendant enters                                                                    
     into a  plea agreement that  calls for a  specific term                                                                    
     of   probation  or   a  specific   term  of   suspended                                                                    
     incarceration,  the court,  in  a probation  revocation                                                                    
     proceeding,  cannot  unilaterally terminate  or  reduce                                                                    
     those  terms, except  by  the  amount of  incarceration                                                                    
     time imposed for  the offense that is the  basis of the                                                                    
     probation violation.                                                                                                       
                                                                                                                                
     When  a   court  imposes   sentence  for   a  probation                                                                    
     violation in  these cases, the  court is  not obligated                                                                    
     to impose the full  amount of remaining suspended time,                                                                    
     but rather  must consider the  nature of  the probation                                                                    
     violation  in light  of applicable  sentencing law  and                                                                    
     impose an  appropriate sentence, subject to  the caveat                                                                    
     that its  authority to  impose an  appropriate sentence                                                                    
     does not  include the authority to  terminate or reduce                                                                    
     the  term  of  probation   or  the  suspended  term  of                                                                    
     imprisonment.                                                                                                              
                                                                                                                                
7:33:42 PM                                                                                                                    
                                                                                                                                
Representative Neuman  looked at page  4, lines 4 and  5. He                                                                    
relayed  a story  about children  who were  abused by  their                                                                    
grandparents. The  children chose  to live in  a van  and in                                                                    
the  yard  outside of  their  house,  because they  were  so                                                                    
afraid  of  their grandparents.  He  wondered  if this  bill                                                                    
would "cover"  this kind of instance.  Ms. Carpeneti replied                                                                    
that it would  depend on the facts of the  case. In order to                                                                    
prove a  crime under SB  210, there  would need to  be proof                                                                    
that the grandparents  consciously disregarded the children,                                                                    
and ignored  the harm  that their  conduct had  inflicted on                                                                    
the children. It would also  depend on their culpable mental                                                                    
state.                                                                                                                          
                                                                                                                                
Representative  Neuman looked  at Section  6, pertaining  to                                                                    
insanity.   He   felt   that  people   who   allowed   their                                                                    
grandchildren   to  sleep   outside  should   be  considered                                                                    
mentally ill.                                                                                                                   
                                                                                                                                
7:37:35 PM                                                                                                                    
                                                                                                                                
Ms. Carpeneti  replied that this  bill does not  address the                                                                    
affirmative  defense  of  insanity. She  stressed  that  the                                                                    
facts needed to  be evaluated for each  individual case. She                                                                    
stated that  many cases had  been brought to  her attention,                                                                    
and felt  that many of the  people involved in the  case had                                                                    
shocking behavior, especially pertaining to children.                                                                           
                                                                                                                                
Representative Neuman  referred to another bill  that he was                                                                    
working  on  that addressed  some  of  the same  issues.  He                                                                    
remarked than  some people who  abuse children  "feel" their                                                                    
behavior is  appropriate, so therefore should  be considered                                                                    
"insane." He  wondered how the  court determined  if someone                                                                    
was "insane."                                                                                                                   
                                                                                                                                
Ms. Carpeneti reiterated that insanity  was not addressed in                                                                    
the  legislation, but  offered  to read  the Alaska  statute                                                                    
that addressed the insanity issue.                                                                                              
                                                                                                                                
Co-Chair Thomas  asked them to  speak about the  issue after                                                                    
the meeting.  He stressed  that the focus  should be  on the                                                                    
subjects in SB 210.                                                                                                             
                                                                                                                                
Representative Gara  was comfortable with most  of the bill,                                                                    
but asked about  Section 10. He asked  for verification that                                                                    
the  provision   only  applied   to  plea   agreements.  Ms.                                                                    
Carpeneti responded in the affirmative.                                                                                         
                                                                                                                                
Representative  Gara surmised  that the  plea agreement  was                                                                    
one-year time-served  in jail and  four years  of probation.                                                                    
If  the   defendant  commits  a  probation   violation,  the                                                                    
provision states  that the probation period  must remain the                                                                    
same as was  agreed during the original  plea agreement. The                                                                    
court  could not  intervene during  the probation  violation                                                                    
hearing to  reduce the  length of  probation below  what was                                                                    
agreed at the initial plea agreement. Ms. Carpeneti agreed.                                                                     
                                                                                                                                
Representative  Gara concluded  that the  provision did  not                                                                    
grant  the   court  authority  to  add   more  probation  or                                                                    
sentencing  time,  other  than  the jail  time  accrued  for                                                                    
violating  the  probation.  Ms.  Carpeneti  replied  in  the                                                                    
affirmative.  She  elaborated  that the  provision  did  not                                                                    
allow the court reduce the  suspended time that was original                                                                    
agreed  upon,  except  to  the extent  that  the  court  may                                                                    
sentence as a result of the probation violation.                                                                                
                                                                                                                                
Representative Guttenberg wondered  about the replacement of                                                                    
the words "jury"  and "court" with the  words "fact finder."                                                                    
He  wondered if  that change  was substantive  or technical.                                                                    
Ms.  Carpeneti  responded  that the  change  was  technical,                                                                    
because the  law required  that the  jury find  certain find                                                                    
factual  matters  in  sentencing. Often,  a  defendant  will                                                                    
waive the jury determination of a particular fact.                                                                              
                                                                                                                                
Representative Doogan referred  to lines 4 and 5  on page 4.                                                                    
He stated that there were  several elements to the bill: the                                                                    
behavior must  be reckless; and  the restriction of  food or                                                                    
liquids should  be considered "adequate."  He felt  that the                                                                    
pay-off  in   the  section  was  resulting   in  protracting                                                                    
impairment  of the  child's health;  which implies  that one                                                                    
could be reckless  with a child and  restrict nutrition, but                                                                    
if that behavior  did not result in  a protracted impairment                                                                    
of   the  child's   health  the   caregiver  could   not  be                                                                    
prosecuted. Ms.  Carpeneti replied  in the  affirmative. She                                                                    
stated that  there was another  law that  addressed "failure                                                                    
to provide  support" that was  more general. The  purpose of                                                                    
raising  the conduct  to this  level in  the occasion  where                                                                    
there was a  result in harm to the child  was to distinguish                                                                    
from the  current law.  There was  also a  concern regarding                                                                    
the possible issue of parents  sending their children to bed                                                                    
without dinner,  or similar circumstance. She  stressed that                                                                    
it was a class C felony, and therefore "serious behavior."                                                                      
                                                                                                                                
7:44:16 PM                                                                                                                    
                                                                                                                                
Representative Doogan asked how long  the abuse had to occur                                                                    
to  be  considered  "protracted impairment  of  the  child's                                                                    
health." Ms.  Carpeneti replied  that word  "protracted" was                                                                    
part of the definition of  "serious physical injury." It was                                                                    
not  a new  term for  criminal  law, but  agreed to  provide                                                                    
further case law that may be instructive.                                                                                       
                                                                                                                                
Representative Doogan assumed it would  not be illegal for a                                                                    
caregiver  to  send  a  child to  bed  without  dinner.  Ms.                                                                    
Carpeneti agreed.                                                                                                               
                                                                                                                                
Representative  Neuman  asked  whether there  were  ways  to                                                                    
strengthen  the  legislation.  Ms.  Carpeneti  replied  that                                                                    
there were  many discussions regarding the  child protection                                                                    
provisions. She  remarked that  the terms  "physical serious                                                                    
injury" and  "serious physical  injury" had  been a  part of                                                                    
Alaska  state  law since  1978.  The  Child Protection  Task                                                                    
Force  had  recommended   changes,  those  suggestions  were                                                                    
carefully  considered.  There  was an  issue  regarding  how                                                                    
quickly children  heal, so sometimes  a very  serious injury                                                                    
to a child  may not be protracted. She pointed  out that the                                                                    
Department of Law  had worked with the bill  sponsor and the                                                                    
House  Judiciary Committee,  examining  the  issue with  the                                                                    
public defender and the American  Civil Liberties Union. The                                                                    
vocabulary in the bill was a compromise.                                                                                        
                                                                                                                                
7:47:26 PM                                                                                                                    
                                                                                                                                
Representative  Neuman   felt  that  the  issue   should  be                                                                    
reexamined in the future.                                                                                                       
                                                                                                                                
Co-Chair  Thomas made  a comparison  between someone  who is                                                                    
texting  while  driving,  and  the issues  in  SB  210.  Ms.                                                                    
Carpeneti replied that SB 210 addressed assault issues.                                                                         
                                                                                                                                
Co-Chair  Thomas thought  maybe  the  texting penalties  had                                                                    
been  too light.  Ms. Carpeneti  responded that  the texting                                                                    
law  containing  graduating  penalties,  so  if  someone  is                                                                    
killed as  a result  of texting, that  person is  subject to                                                                    
prosecution for a class A felony.                                                                                               
                                                                                                                                
Ms. Carpeneti discussed Sections 11 through 18.                                                                                 
                                                                                                                                
     Sections 11  and 12 amend   AS 12.55.125  (sentences of                                                                    
     imprisonment  for felony  convictions) to  clarify that                                                                    
     factual findings  (1) that result  in a  mandatory term                                                                    
     of imprisonment  of 99 years  for conviction  of murder                                                                    
     in the  first degree; (2)  result in a term  that would                                                                    
     preclude  a  defendant  from being  awarded  good  time                                                                    
     under  AS   33.20.010(a)  -   for  example,   a  person                                                                    
     sentenced under  the "three strikes" law;  or (3) would                                                                    
     increase  the   presumptive  sentencing  range   -  for                                                                    
     example, a  person convicted  of a  class A  felony who                                                                    
     possessed a firearm  - must be made by a  jury by proof                                                                    
     beyond a reasonable doubt,  unless the defendant waives                                                                    
     this requirement.                                                                                                          
                                                                                                                                
     Section 13 provides that if  one aggravating factor has                                                                    
     been established,  either by the  court or the  jury as                                                                    
     required  by law,  additional  aggravating factors  may                                                                    
     then  be   determined  by  the   court  by   clear  and                                                                    
     convincing  evidence  rather  than  by  the  jury.  The                                                                    
     finding of one aggravating  factor authorizes the court                                                                    
     to  sentence  an  individual up  to  the  maximum  term                                                                    
     provided  by  law.  An  additional  aggravating  factor                                                                    
     cannot  increase the  maximum  term  anymore; thus  the                                                                    
     Blakely  decision  does  not  require  that  additional                                                                    
     factors  to be  decided by  a  jury by  proof beyond  a                                                                    
     reasonable doubt.                                                                                                          
                                                                                                                                
     Sections 14  and 15 make  conforming amendments  to the                                                                    
     changes described in Sections 9 and 10.                                                                                    
                                                                                                                                
     Sections  16 and  17 describe  the indirect  court rule                                                                    
     changes and the applicability provisions.                                                                                  
                                                                                                                                
     Section  18  would adopt  a  task  force to  study  the                                                                    
     crimes  of  human trafficking,  promoting  prostitution                                                                    
     (sex  trafficking).   It would  require  that the  task                                                                    
     force prepare  a report describing the  number of these                                                                    
     cases reported  to law enforcement  in the  state since                                                                    
     2007, the number of cases  prosecuted under Alaska law,                                                                    
     the number  of cases investigated by  local and federal                                                                    
     law  enforcement agencies,  and the  services available                                                                    
     to victims of human trafficking.                                                                                           
                                                                                                                                
Ms. Saltzman explained that the  task force would consist of                                                                    
representatives from  the Department of Law,  the Department                                                                    
of  Public  Safety,  the Department  of  Health  and  Social                                                                    
Services,  and   two  members  appointed  by   the  governor                                                                    
representing  non-governmental  health  and  social  service                                                                    
agencies  that   provide  services   to  victims   of  human                                                                    
trafficking. The task force would  report to the legislature                                                                    
on  January  15,  2013,  and  would  provide  the  following                                                                    
information: the number of  human trafficking cases reported                                                                    
to the state and local  law enforcement agencies since 2007;                                                                    
the  number  of  human trafficking  cases  prosecuted  under                                                                    
Alaska  state law;  the number  of  human trafficking  cases                                                                    
state and  local law enforcement agencies  have investigated                                                                    
in cooperation  with the  federal law  enforcement agencies;                                                                    
and the services  that are currently available  in the state                                                                    
for  victims   of  human  trafficking,   including  services                                                                    
provided   by  state   agencies,   federal  agencies,   non-                                                                    
governmental agencies, and other  assistance related to safe                                                                    
housing  and legal  services. She  remarked  that there  was                                                                    
separate legislation  on human  trafficking, and  noted that                                                                    
the addition  of the  task force  in SB  210 was  to greatly                                                                    
inform the legislature in order to help the victims.                                                                            
                                                                                                                                
Ms. Carpeneti  furthered that the House  Judiciary Committee                                                                    
had  amended the  task  force provision  to  become a  "fact                                                                    
finding"  task   force,  for   human  trafficking   and  sex                                                                    
trafficking.                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  hoped that the task  force would work                                                                    
with the  Immigration Project and other  agencies to examine                                                                    
the human  trafficking issues. She  relayed a story  about a                                                                    
man who had been convicted of sex trafficking.                                                                                  
                                                                                                                                
7:55:16 PM                                                                                                                    
                                                                                                                                
Co-Chair Thomas CLOSED public testimony.                                                                                        
                                                                                                                                
Vice-chair   Fairclough   discussed    the   fiscal   notes:                                                                    
Department  of  Corrections   indeterminate,  Department  of                                                                    
Administration zero, Court  System indeterminate, Department                                                                    
of  Administration   indeterminate;  Department   of  Public                                                                    
Safety zero, Department of  Law indeterminate, Department of                                                                    
Administration indeterminate. She  discussed the possibility                                                                    
of zeroing out the fiscal notes.                                                                                                
                                                                                                                                
Co-Chair Stoltze  was content with the  indeterminate fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
Representative Doogan  wondered if  there was  financing for                                                                    
the task  force. He  did not  see the  cost anywhere  in the                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Ms.  Carpeneti replied  that the  duty was  assigned to  the                                                                    
Department of  Law. She  explained that  the task  force was                                                                    
intended  for  fact  gathering.  She  remarked  that  a  few                                                                    
thousand  dollars  were  usually  used for  travel  for  the                                                                    
members of the task force.                                                                                                      
                                                                                                                                
Co-Chair Stoltze surmised that  travel was probably included                                                                    
in the Department of Law's budget.                                                                                              
                                                                                                                                
7:59:57 PM                                                                                                                    
                                                                                                                                
Representative Neuman  felt it  was appropriate to  zero out                                                                    
the fiscal  notes, because the  Department of Law  should be                                                                    
creating task forces  on their own. He called it  "a part of                                                                    
(their) job."                                                                                                                   
                                                                                                                                
Vice-chair Fairclough  opposed the  idea of zeroing  out the                                                                    
fiscal note. She elaborated there  were back-up documents to                                                                    
explain why the fiscal notes were indeterminate.                                                                                
                                                                                                                                
Representative Edgmon agreed with Vice-chair Fairclough.                                                                        
                                                                                                                                
Representative Doogan  understood why the fiscal  notes were                                                                    
indeterminate.  The law  was  being changed  in  a way  that                                                                    
should cost more  money. He did not believe it  was a "blank                                                                    
check", to continually request  indeterminate notes. As long                                                                    
as the bill did what it  was intended, he did not care about                                                                    
the cost.                                                                                                                       
                                                                                                                                
Co-Chair Thomas had closed public testimony earlier.                                                                            
                                                                                                                                
8:05:29 PM                                                                                                                    
                                                                                                                                
Representative Gara wondered  if he could ask  a question to                                                                    
the  public  defender.  Co-Chair  Thomas  replied  that  the                                                                    
public defender was unavailable.                                                                                                
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSSB  210(JUD) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered                                                                                                                      
                                                                                                                                
CSSB  210(JUD) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation  and with one new  indeterminate fiscal                                                                    
note  from Department  of  Corrections  and four  previously                                                                    
published  indeterminate notes:  FN1 (DOA),  FN2 (DOL),  FN4                                                                    
(DOA), FN5  (CRT); and two previously  published zero notes:                                                                    
FN3 (DPS), FN6 (DOA).                                                                                                           
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 25(FIN)                                                                         
                                                                                                                                
     "An   Act    establishing   the    sustainable   energy                                                                    
     transmission  and  supply  development program  in  the                                                                    
     Alaska  Industrial  Development and  Export  Authority;                                                                    
     relating   to  the   interest  rates   of  the   Alaska                                                                    
     Industrial  Development   and  Export   Authority;  and                                                                    
     relating to  taxes paid on interests  in property owned                                                                    
     by  the   Alaska  Industrial  Development   and  Export                                                                    
     Authority  and to  the  local  contribution for  public                                                                    
     education funding related to that property."                                                                               
                                                                                                                                
CSSSSB 25(FIN) was SCHEDULED but not HEARD.                                                                                     
                                                                                                                                
CS FOR SENATE BILL NO. 83(EDC)                                                                                                
                                                                                                                                
     "An Act  providing for payment  and loan  incentives to                                                                    
     public    school    teachers   for    national    board                                                                    
     certification."                                                                                                            
                                                                                                                                
CSSB 83(EDC) was SCHEDULED but not HEARD.                                                                                       
                                                                                                                                
CS FOR SENATE BILL NO. 119(L&C)                                                                                               
                                                                                                                                
     "An Act relating to athletic trainers."                                                                                    
                                                                                                                                
CSSB 119(L&C) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 182(EDC)                                                                                               
                                                                                                                                
     "An Act amending the amount of state funding provided                                                                      
     to school districts for pupil transportation."                                                                             
                                                                                                                                
CSSB 182 (EDC) was SCHEDULED but not HEARD.                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
8:06:44 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 8:06 PM.                                                                                           
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 91_Sponsor Statement.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 91 SWLogsheet_2012.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 91 2012 Freshwater Charter Logbook.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 91 2010 Participation Effort and Harvest in the Sport Fish Business-Guide Licensing and Logbook Programs.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 182 Sectional Analysis.pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 182 Letter on Education Funding (3).pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 182 Letter on Education Funding (3).pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 182 Letter of Intent.pdf HFIN 4/13/2012 9:00:00 AM
SB 182
Changes to CSSB 182.pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 83 sponsor statement.docx HFIN 4/13/2012 9:00:00 AM
SB 83
SB 83 support documents-1.pdf HFIN 4/13/2012 9:00:00 AM
SB 83
State_Profile_2011_AK.pdf HFIN 4/13/2012 9:00:00 AM
SB 83
SB19 CS WORKDRAFT 27-LS0157-I 4.13.12.pdf HFIN 4/13/2012 9:00:00 AM
SB 19
SB160 DRAFT#s_HCS CSSB 160_FIN_.pdf HFIN 4/13/2012 9:00:00 AM
SB 160
SB23 CS WORKDRAFT 27-LS0252-XX.pdf HFIN 4/13/2012 9:00:00 AM
SB 23
SB23 HCS FIN EXPLANATION.pdf HFIN 4/13/2012 9:00:00 AM
SB 23
SB23 AMENDMENT 1- XX version.pdf HFIN 4/13/2012 9:00:00 AM
SB 23