Legislature(1993 - 1994)

03/10/1993 01:12 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 10, 1993                                        
                            1:12 p.m.                                          
                                                                               
  TAPE HFC 93-43, Side 1, #000 - end.                                          
  TAPE HFC 93-43, Side 2, #000 - end.                                          
  TAPE HFC 93-44, Side 1, #000 - 442.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:12 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson                                                              
  Co-Chair MacLean            Representative Martin                            
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
                                                                               
  Representative Hoffman was absent from the meeting.                          
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Toohey;  Representative Ulmer;  Mike Greany,                 
  Director,  Legislative  Finance   Division;  Margot   Knuth,                 
  Criminal Division, Department of Law; John Salemi, Director,                 
  Public Defender Agency, Department of Administration; Remond                 
  Henderson,  Director,  Division  of Administrative  Service,                 
  Department of Community and Regional Affairs; Andrew  Grose,                 
  Western  Legislative  Conference;  Marilynn  May,  Assistant                 
  Attorney  General, Department of Law; Chris Christensen III,                 
  Staff Counsel, Alaska Court System.                                          
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  PRESENTATION BY WESTRENDS/WESTERN LEGISLATIVE CONFERENCE                     
                                                                               
  HB 55     "An Act  making appropriations  for the  operating                 
            and loan program expenses of  state government and                 
            to  capitalize   funds;  and   providing  for   an                 
            effective date."                                                   
                                                                               
            SUBCOMMITTEE CLOSEOUTS:                                            
                 DEPARTMENT COMMUNITY AND REGIONAL AFFAIRS                     
                                                                               
            HB 55 was HELD in Committee.                                       
                                                                               
  HB 64     "An Act  creating the  crimes of  stalking in  the                 
            first                                                              
                                                                               
                                1                                              
                                                                               
                                                                               
            and  second degrees  and  providing penalties  for                 
            their  violation; providing  a peace  officer with                 
            the authority to arrest without a warrant a person                 
            the peace officer has  reasonable cause to believe                 
            has  committed stalking;  relating to  the release                 
            before trial of a person  accused of stalking; and                 
            prohibiting  the  suspension   of  imposition   of                 
            sentence of a person convicted of stalking."                       
                                                                               
            CSHB 64 (FIN) was reported out of Committee with a                 
            "do pass" recommendation and  with two zero fiscal                 
            notes by the Department of Administration and with                 
            a   zero   fiscal  note   by  the   Department  of                 
            Corrections and  with a  zero fiscal  note by  the                 
            Department of Public Safety, dated 3/1/93 and with                 
            a zero fiscal note by the Department of Law, dated                 
            3/1/93.                                                            
                                                                               
  HB 116    "An Act  directing  the  commissioner  of  natural                 
            resources to accept, under  certain circumstances,                 
            the contract price  agreed to between a  lessee of                 
            federal land  and a gas or electric utility as the                 
            value  of the  federal government's  royalty share                 
            from  natural  gas  production   when  royalty  is                 
            payable to the state under applicable federal law;                 
            and providing for an effective date."                              
                                                                               
            CSHB 116 (FIN) was reported  out of Committee with                 
            a "do pass" recommendation and  with a zero fiscal                 
            note by the Department of Natural Resources.                       
                                                                               
  HB 151    "An Act  relating to  payment by  indigent persons                 
            for  legal   services  and   related  costs;   and                 
            providing for an effective date."                                  
                                                                               
            HB 115 was HELD in Committee.                                      
                                                                               
  PRESENTATION BY WESTRENDS/WESTERN LEGISLATIVE CONFERENCE                     
                                                                               
  ANDREW  GROSE, WESTERN  LEGISLATIVE CONFERENCE gave  a slide                 
  presentation  regarding economic  trends in  Western states.                 
  He provided  members with  charts represented  by the  slide                 
  presentation  (Attachment 1).  Mr. Grose concluded that:                     
                                                                               
       *    While  the West  continues  to grow  in population                 
            twice  as fact  as the  rest of  the country,  the                 
            biggest  demographic  story   of  the  1980's  was                 
            foreign immigration which accounted for 40 percent                 
            of the growth in the region.                                       
                                                                               
       *    Once the economic leader in income and gross state                 
                                                                               
                                2                                              
                                                                               
                                                                               
            product,  the  West  has  slipped  badly,  falling                 
            behind every  other  region in  growth  in  median                 
            family income and GSP in the past 10 years.                        
                                                                               
       *    The economic decline  of the West is  reflected in                 
            state government revenues in education.                            
                                                                               
  Mr. Grose stressed that:                                                     
                                                                               
       *    Alaska  was the  only state  in the  West  to grow                 
       faster    in the 1980's than in the 1970's;                             
                                                                               
       *    Alaska's foreign population growth has been slow;                  
                                                                               
       *    Alaska's has a fast growing ethnic group;                          
                                                                               
       *    Alaska was next  to last  in increase in  personal                 
            income of Western states;                                          
                                                                               
       *    Alaska had  the  third  lowest  growth  in  family                 
            income;                                                            
                                                                               
       *    Alaska had  the next to last growth in Gross State                 
            Product of Western states;                                         
                                                                               
       *    Manufacturing jobs rose in the West;                               
                                                                               
       *    Alaska had a  60 percent gain in tourism jobs from                 
            1985 - 1990;                                                       
                                                                               
       *    Alaska  has  less  foreign   tourists  than  other                 
            Western states;                                                    
                                                                               
       *    Alaska has the  highest export  per capita in  the                 
            United States;                                                     
                                                                               
       *    The West has  more foreign owned firms  than other                 
            areas;                                                             
                                                                               
       *    Alaska has more Asian investment than European;                    
                                                                               
       *    Alaska ranks number two in  the country in regards                 
            to  the percentage  of  small  businesses  in  the                 
            state;                                                             
                                                                               
       *    Alaska ranks number one in  the country in regards                 
            to the percentage of minority owned business;                      
                                                                               
       *    Alaska is number six in women owned businesses;                    
                                                                               
  Mr. Grose concluded that:                                                    
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
       *    Per capita revenues are lagging;                                   
                                                                               
       *    Education  has  paid  the price  of  a  decline in                 
            Western state's economies;                                         
                                                                               
       *    Alaska had the slowest economic growth;                            
                                                                               
       *    Alaska  has   the  highest  tax  capacity  in  the                 
            country;                                                           
                                                                               
       *    Alaskans have the lowest tax effort;                               
                                                                               
  Mr. Grose  emphasized that  Western states  must pool  their                 
  resources to offset their relative economic decline.                         
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                 
                                                                               
  The  House   Finance  Subcommittee  on   the  Department  of                 
  Community  and Regional  Affairs consists  of Chair  MacLean                 
  with  members Representatives Olberg, Williams, B. Davis and                 
  Brice.                                                                       
                                                                               
  Co-Chair MacLean noted that the  Department of Community and                 
  Regional Affairs had  42 positions transferred in  the FY 93                 
  Operating Budget.  The Governor's FY  94 proposed budget for                 
  the  Department   of  Community  and  Regional   Affairs  is                 
  $124,406.3 million dollars.   Total funds represents  a 15.6                 
  percent  decrease below FY 93  Authorized.  The General Fund                 
  request is 21.1 percent below FY 93 Authorized.                              
                                                                               
  Co-Chair MacLean emphasized  that the Subcommittee's  intent                 
  is  to  increase  support  for  service delivery  in  remote                 
  regions  of the  State.   She  noted  that the  Subcommittee                 
  reduced all designated  grants.   She provided members  with                 
  the  Transaction Summary for the House  (Attachment 2).  She                 
  reviewed the Subcommittee's proposed reductions:                             
                                                                               
       *    Administrative Services - <$75.0> thousand dollars                 
                                                                               
            This reduction will eliminate at least 2 full time                 
            equivalent positions in administrative services.                   
                                                                               
  Co-Chair  MacLean  stated  that  the  Subcommittee  approved                 
  intent  language  regarding  Reimbursable Service  Agreement                 
  (RSA) (Attachment 3).  She stressed that the Subcommittee is                 
  adamantly  opposed  to the  transfer  of funding  from other                 
  areas  of  the Department  by  use  of a  RSA,  to reinstate                 
  reductions made by the Legislature.                                          
                                                                               
       *    Designated Grants - <$160.3> thousand dollars                      
                                                                               
            Designated Grants were classified for reductions.                  
                                                                               
                                4                                              
                                                                               
                                                                               
            Gaming/Training Programs - 30 percent                              
            People Count - 15 percent                                          
            Native Cultural Activities - 10 percent                            
            Life, Health and Safety - 10 percent                               
                                                                               
       *    Training and Development/Travel - $20.0                            
                                                                               
            Twenty thousand  dollars was  added for travel  of                 
            local government specialists at the eight regional                 
            offices, to  improve outreach to communities.   It                 
            is  the   intention  of   the  Subcommittee   that                 
            additional  travel  money   above  that  which  is                 
            allocated in the Governor's  proposal be equitably                 
            distributed among all regional offices.                            
                                                                               
       *    Rural Utility Business  Advisors (RUBA) -  <$175.0                 
            thousand dollars>                                                  
                                                                               
            The  authorization  of  interagency  receipts  was                 
            reduced.   Authorization  was  contingent  upon  a                 
            request of $1 million dollars in the Department of                 
            Environmental Conservation's capital budget.   The                 
            capital appropriation  has been reduced  to $500.0                 
            thousand dollars.                                                  
                                                                               
       *    Community Development Assistance -  <93.9 thousand                 
            dollars>                                                           
                                                                               
            The  request  for  a deputy  director  position in                 
            Anchorage  was  denied.     Three  positions  were                 
            approved.                                                          
                                                                               
  Co-Chair MacLean noted that  the Subcommittee adopted intent                 
  language for  the Day  Care Assistance  Program, urging  the                 
  Department to request a supplemental if the program is short                 
  in FY 94.                                                                    
                                                                               
  Representative Brown asked Co-Chair MacLean to reiterate the                 
  classification  of reductions  to  designated grants.    She                 
  asked why Native  Cultural grants  were given priority  over                 
  Gaming and Training.  Co-Chair MacLean declined to respond.                  
                                                                               
  Representative Brown expressed  her concern with  reductions                 
  to Alaska  Legal Services.   She asked  if the  Subcommittee                 
  considered  restoring  Alaska Legal  Services  to the  FY 92                 
  level.  Co-Chair  MacLean stated  that the Subcommittee  did                 
  consider increasing this  component.   She added that  under                 
  the 1 percent reduction plan  the Subcommittee did not  feel                 
  the  component could  be increased.   An office  in Unalaska                 
  will remain closed.                                                          
                                                                               
  Representative Therriault asked  if there is a  criteria for                 
                                                                               
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  designated grants.                                                           
                                                                               
  REMOND  HENDERSON,  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT  OF  COMMUNITY  AND  REGIONAL  AFFAIRS                 
  clarified that designated  grants are  at the discretion  of                 
  the Legislature.  Some grants  have been in the Department's                 
  budget for eight  years.  Co-Chair MacLean  provided members                 
  with a history of designated grants (Attachment 4).                          
                                                                               
  Representative  Parnell asked  for  a  clarification of  the                 
  reductions to designated grants.  Co-Chair MacLean clarified                 
  that Perseverance Theatre was reduced by 30 percent.  Alaska                 
  Native  Arts  was reduced  by  10 percent.    Alaska Special                 
  Olympics and Arctic Winter Games were reduced 30 percent.                    
                                                                               
  Co-Chair  MacLean  MOVED  to  adopt  the   Intent  Language,                 
  Attachment 3.  There being NO OBJECTION, it was so ordered.                  
                                                                               
  Co-Chair  MacLean noted  that the  Department has  submitted                 
  budget amendments  totaling $325.2  thousand  dollars.   The                 
  budget  amendments  were adopted  but  are not  reflected in                 
  Attachment 2.                                                                
                                                                               
  Representative Brown observed  that the Department estimates                 
  that the Subcommittee's proposed funding  level for Day Care                 
  Assistance would result in 340 children or 240 families that                 
  would not be served.                                                         
                                                                               
  (Tape Change, HFC 93-43, Side 2)                                             
                                                                               
  Co-Chair MacLean justified  the Subcommittee's reduction  to                 
  Day Care Assistance.  She noted  that Day Care Assistance is                 
  pure general fund  dollars.   She gave statistics  regarding                 
  Child Care Programs:                                                         
                                                                               
       *    Daycare  Assistance  Programs:  subsidies  to  low                 
            income; parents has $11,173.9 million dollars left                 
            in the current year.                                               
                                                                               
       *    Funding  has  not  been  changed  for  Child  Care                 
            Subsidy Grants,  FSA Entitlement Program,  At Risk                 
            Assistance Program and Block Grant Programs.                       
                                                                               
  Co-Chair MacLean emphasized  that the funding level  for Day                 
  Care  Assistance has  remained  at  the Governor's  proposed                 
  level.                                                                       
                                                                               
  Co-Chair  MacLean  observed that  there  was excess  federal                 
  authorization for FY 93 because the State received two years                 
  of At-Risk funding  in FY 92.  In FY 92 $2.5 million dollars                 
  in child care was lapsed.  All applicants  were served.  The                 
  Department voluntarily reduced $500.0  thousand dollars from                 
                                                                               
                                6                                              
                                                                               
                                                                               
  Child Care in FY  94.  She asserted that the  Department can                 
  request  a  supplement  if  the FY  94  demand  exceeds  the                 
  appropriation.                                                               
                                                                               
  Representative Brown referred  to a letter from  John Walsh,                 
  Deputy  Director,  Department   of  Community  and  Regional                 
  Affairs to Representative  Bette Davis, dated March  3 1993.                 
  She quotes the letter as stating:  "Should the FY  94 budget                 
  be  approved as proposed,  using an estimate  of $345.00 per                 
  month  for  a child,  340  children would  not  be served...                 
  Based upon  an average ratio  of children to  families, this                 
  reduction would impact  approximately 240 families...   As I                 
  stated during the  overview, the  Department was unaware  of                 
  the marked  increase in enrollment  at the time  we prepared                 
  our FY  94 budget document, nor do we have access to leading                 
  economic indicators that correlate to  changes in child care                 
  demand."                                                                     
                                                                               
  Representative Brown  alleged that  the Day  Care Assistance                 
  Program will be under-funded.                                                
                                                                               
  Co-Chair MacLean MOVED to adopt the Subcommittee's proposals                 
  as contained in Attachment 2.                                                
                                                                               
  Co-Chair Larson clarified,  for Representative  Grussendorf,                 
  that  the   Subcommittee  on  Formula  Programs   will  make                 
  recommendations for  formula  programs  to  the  full  House                 
  Finance Committee.  Representative Brown noted her OBJECTION                 
  to not  funding the Home  Owners Property Tax  Exemption and                 
  Renters  Rebate Program.   Co-Chair MacLean  reiterated that                 
  formula programs were not considered by the Subcommittee.                    
                                                                               
  There being  NO OBJECTION, the Subcommittee's  proposals for                 
  the Department of Community and Regional Affairs non-formula                 
  programs were adopted and incorporated into HB 55.                           
  HOUSE BILL NO. 116                                                           
                                                                               
       "An Act directing the commissioner of natural resources                 
       to accept,  under certain  circumstances, the  contract                 
       price agreed to between a lessee  of federal land and a                 
       gas or  electric utility  as the  value of  the federal                 
       government's royalty share from  natural gas production                 
       when royalty is  payable to the state  under applicable                 
       federal law; and providing for an effective date."                      
                                                                               
  House Bill  116 was  in a  subcommittee consisting  of Chair                 
  Representative Parnell with members Representatives MacLean,                 
  Hanley and Brown.                                                            
                                                                               
  Representative  Parnell  provided  members with  a  proposed                 
  Committee Substitute of HB 116, Work Draft 8-LS0442\O, dated                 
                                                                               
                                7                                              
                                                                               
                                                                               
  3/10/93  (Attachment 5).  He  noted that two amendments were                 
  adopted.                                                                     
                                                                               
  Representative Hanley MOVED to adopt Work Draft  8-LS0442\O,                 
  dated 3/10/93.  There being NO OBJECTION, it was so ordered.                 
                                                                               
  Representative  Brown  discussed provisions  adopted  by the                 
  Subcommittee on HB  116.  She  referred to page  2, line  6.                 
  She explained that the provision will define which utilities                 
  will be involved.   Only utilities that are in  the business                 
  of providing service  to the general public.   The provision                 
  includes that the "utility with which the lessee has entered                 
  into the contract is not an  affiliated interest, as that is                 
  defined  in   AS  42,05.990,  with  the  lessee  or  with  a                 
  subsequent  purchaser  of  more  than   10  percent  of  the                 
  utility's gas or  electricity..."  She emphasized  that CSHB                 
  116 (FIN) will require that the arms length provision is met                 
  before the State  is locked into  a contract price that  may                 
  not represent the value of the resource.                                     
                                                                               
  Representative Hanley discussed  Section 3.   The  amendment                 
  clarifies that the State is able to collect excess royalties                 
  based on an increased federal assessment.                                    
                                                                               
  Representative Hanley MOVED to report CSHB  116 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying  fiscal  note.     Representative   Grussendorf                 
  OBJECTED.  He expressed concern  that negotiations regarding                 
  the state/federal  90/10  distribution  of  future  resource                 
  royalties will be adversely affected.                                        
                                                                               
  Representative  Brown  shared  Representative  Grussendorf's                 
  concerns.    She  stated  that it  "generally  sets  a  poor                 
  precedent for the Legislature to become involved in contract                 
  interpretations  that  affect  the  royalty  value."     She                 
  asserted that  a selective  benefit is being  provided to  a                 
  few.  She  noted the difficulty in  retroactively collecting                 
  from individuals  that may not  have been involved  when the                 
  original  benefits were received.   She   cautioned that the                 
  North Slope interests may be affected.   She stressed that a                 
  $21 million dollar  benefit is being  giving to a subset  of                 
  the State's  citizens.   She wondered  how many  hundreds of                 
  millions of dollars  may be  "inadvertently passed down  the                 
  pipe" by the adoption of CSHB 116 (FIN).                                     
                                                                               
  Co-Chair MacLean asked for further clarification of  Section                 
  3.    Representative Hanley  explained  that if  the federal                 
  government, on its  own, negotiates a higher  contract price                 
  that the State can accept the  State's portion of the higher                 
  amount.                                                                      
                                                                               
  Representative Hanley observed that CSHB  116 (FIN) does not                 
                                                                               
                                8                                              
                                                                               
                                                                               
  change the fiscal note.                                                      
                                                                               
  Representative Therriault pointed out  that the intertie was                 
  not  active  during the  time  disputed.   Residents  of the                 
  Fairbanks Northstar Borough would be asked to pay 25 percent                 
  although they did not receive electricity.                                   
                                                                               
  Representative Brown  stated that  her husband  is a  public                 
  utilities Commissioner and she is an EnStar Gas consumer.                    
  Co-Chair Larson noted that he is an EnStar Gas consumer.                     
  Representative Navarre noted that he  is an EnStar and Homer                 
  Electric Association consumer.  Representative Martin stated                 
  that he is a consumer of EnStar Gas and Chugach Electric.                    
  Representative Parnell stated that he is a consumer of                       
  Chugach Electric.                                                            
                                                                               
  Co-Chair Larson reiterated  the motion MOVED to  report CSHB                 
  116 (FIN)  out of Committee  with individual recommendations                 
  and  with  the accompanying  fiscal  note.   There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  CSHB 116  (FIN) was  reported out  of Committee  with a  "do                 
  pass" recommendation  and with  a zero  fiscal  note by  the                 
  Department of Natural Resources.                                             
  HOUSE BILL NO. 64                                                            
                                                                               
       "An Act creating  the crimes of  stalking in the  first                 
       and second  degrees and  providing penalties for  their                 
       violation; providing a peace officer with the authority                 
       to arrest without a warrant a person the peace  officer                 
       has reasonable cause to believe has committed stalking;                 
       relating  to  the  release  before  trial of  a  person                 
       accused  of stalking; and prohibiting the suspension of                 
       imposition  of  sentence  of  a   person  convicted  of                 
       stalking."                                                              
                                                                               
  Representative  Brown asked  what would  be accomplished  by                 
  extending the parole requirement.                                            
                                                                               
  REPRESENTATIVE  TOOHEY  stated  that  the  extended   parole                 
  requirement will  help to  keep perpetrators  in line.   The                 
  original proposal was 5 to 99 years.                                         
                                                                               
  Representative  Parnell  asked  if  other  crimes  would  be                 
  impacted.   Representative Toohey clarified  that all crimes                 
  with a five year probation period would be brought up to ten                 
  years.  Representative Brown noted  that the legislation has                 
  been broadened  to cover all crimes.   She expressed concern                 
  that the zero fiscal note is inadequate.                                     
                                                                               
  MARGOT KNUTH, CRIMINAL DIVISION, DEPARTMENT OF LAW explained                 
                                                                               
                                9                                              
                                                                               
                                                                               
  that  the  legislation  originally  addressed  the  stalking                 
  offense.    The  Department of  Law  expressed  concern that                 
  probation  for a  single offense  was dramatically  altered.                 
  She pointed out  that legislation  in the prior  legislative                 
  session  would  have  extended   probation  for  all  felony                 
  offenses  to  ten  years.    The House  Judiciary  Committee                 
  incorporated the legislation to extend  the probation period                 
  for all  felony offenses into HB 64.   She asserted that the                 
  fiscal  cost  will be  minimal  due  to the  fact  that most                 
  probation  violations  are new  crimes.   She  stressed that                 
  offenders  would  be  returned  to   jail  via  a  probation                 
  revocation rather than through a new prosecution.  Probation                 
  revocation proceedings  are  faster  and  less  costly  than                 
  prosecution proceedings.                                                     
                                                                               
  Representative Brown emphasized  that because the  potential                 
  time that  an offender could  have their  parole revoked  is                 
  extended there  would  be an  impact  on the  department  of                 
  Corrections.                                                                 
                                                                               
  JOHN SALEMI, DIRECTOR,  PUBLIC DEFENDERS AGENCY (PD)  stated                 
  that  the  parole  extension  will  result in  an  increased                 
  caseload.  He  disagreed with Ms.  Knuth.  He stressed  that                 
  most probation  revocations are due to  technical violations                 
  such  as  failure  to  appear  for meetings  with  probation                 
  officers, failing to comply  with rehabilitation programs or                 
  change  of  residence or  employment  without approval.   He                 
  added  that  probation   officers  feel  they  must   report                 
  technical violations  because of  civil liability  concerns.                 
  He expected a number of new cases would be filed as a result                 
  of the  parole extension.  He disagreed  with the Department                 
  of Corrections's assumption  that the impact would  be zero.                 
  The PD is asking for two paralegal assistants.                               
                                                                               
  Representative Brown observed that the fiscal note submitted                 
  by  the  Public  Defenders Agency  suggests  that  the anti-                 
  stalking  provision may be  susceptible to  a constitutional                 
  challenge.   Mr. Salemi stated  that the sponsor  has worked                 
  with the  Department of  Law to  address the  constitutional                 
  challenge.                                                                   
                                                                               
  Representative Brown asked  if the  probation extension  was                 
  limited to the  anti-stalking provision  if the fiscal  note                 
  would be  lower.   Mr. Salemi  stated that  if the  original                 
  probation provision  was reinstated  that the  fiscal impact                 
  would be minimal.  He stated that there would be no need for                 
  a fiscal impact note.                                                        
                                                                               
  Representative Toohey  offered Amendment  1 (Attachment  6).                 
  She observed that  the amendment would return  the probation                 
  period to five years.                                                        
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  Representative   Brown   MOVED   to   adopt   Amendment   1.                 
  Representative Martin  OBJECTED for  purpose of  discussion.                 
  He  asked  for  clarification  of  the  amendment's  effect.                 
  Representative  Toohey  clarified  that   the  deletions  in                 
  Amendment 1 would return current law.                                        
                                                                               
  Co-Chair Larson reiterated the motion  to adopt Amendment 1.                 
  There being NO OBJECTION, Amendment 1 was adopted.                           
                                                                               
  Representative Foster asked if a person sitting in a car all                 
  day long near  to the victims  place of employment would  be                 
  considered "stalking."   Ms. Knuth emphasized that  in order                 
  for an offense to be committed  the defendant must place the                 
  person  in fear of  death or physical  injury.  She  did not                 
  think the example given would be an offense.                                 
                                                                               
  Representative Brown  MOVED to report  CSHB 64 (FIN)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  (Tape Change, HFC 93-44, Side 1)                                             
                                                                               
  Representative Navarre questioned  if the creation of  a new                 
  law as proposed in  Amendment 1 would have fiscal  impact on                 
  the Public Defender Agency.                                                  
                                                                               
  Mr. Salemi clarified  that the impact  will be minimal.   He                 
  stated that it would be difficult to quantify.                               
                                                                               
  Representative Navarre WITHDREW HIS OBJECTION.                               
                                                                               
  Representative Parnell referred to page  2, line 23, CSHB 64                 
  (JUD).  He asked if it is the intent that the victim be held                 
  in reasonable fear of death.                                                 
                                                                               
  Ms. Knuth  answered  that  line 23  refers  to  the  victims                 
  subjective  fear.  She added that there  must be a basis for                 
  the fear in  reality.  She  noted that since stalking  often                 
  results  from a  prior relationship it  is possible  for the                 
  perpetuator  to  have  an  inside  knowledge  of  what  will                 
  frighten the victim.                                                         
                                                                               
  Representative Parnell asked  Mr. Salemi  to expound on  the                 
  definition of "in fear  of death".  Mr. Salemi  replied that                 
  the  fear must be reasonable.   He stated that the course of                 
  conduct issue may  be a larger issue.  He did not think that                 
  constitutional problems would arise.                                         
                                                                               
  In response to  a question from Representative  Parnell, Ms.                 
  Knuth explained that  the fear of death  element is included                 
  in existing assault statutes.                                                
                                                                               
                               11                                              
                                                                               
                                                                               
  Co-Chair Larson reiterated the motion  to MOVE CSHB 64 (FIN)                 
  out of  Committee with  individual recommendations  and with                 
  the accompanying fiscal notes.  There being NO OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  CSHB 64 (FIN) was reported out of Committee with a "do pass"                 
  recommendation  and  with  two  zero  fiscal  notes  by  the                 
  Department  of Administration and with a zero fiscal note by                 
  the Department of Corrections and with a zero fiscal note by                 
  the Department  of Public  Safety, dated  3/1/93 and  with a                 
  zero fiscal note by the Department of Law, dated 3/1/93.                     
  HOUSE BILL NO. 151                                                           
                                                                               
       "An Act  relating to  payment by  indigent persons  for                 
       legal services and related costs;  and providing for an                 
       effective date."                                                        
                                                                               
  CHRIS CHRISTENSEN, III,  STAFF COUNSEL, ALASKA  COURT SYSTEM                 
  provided  members  with a  letter  dated February  28, 1993,                 
  explaining CSHB 151 (JUD) (Attachment 7).  He observed  that                 
  CSHB 151  (JUD) was introduced by the Judiciary Committee at                 
  the request of  the Supreme  Court.  Under  both the  United                 
  States and  Alaska Constitutions, a  criminal defendant  has                 
  the right to an attorney.   The State must appoint attorneys                 
  to defendants that cannot afford representation.                             
                                                                               
  Mr.  Christensen  observed  that  in  1990  the  Legislature                 
  amended  AS 18.85.120 (c)  to allow judgments  to be entered                 
  against  defendants represented  by the  Public Defender  or                 
  OPA.  If a  defendant became solvent the judgement  would be                 
  enforced.  Judgments could not  be collected for three years                 
  following incarceration.                                                     
                                                                               
  He explained that HB 151 would allow judgments to be entered                 
  against  defendants  who  are  represented  by   the  public                 
  defender or OPA  whether or not the  defendant is convicted.                 
  Indigent  defendants  would  be  treated  the same  as  non-                 
  indigent defendants.   In addition,  HB 151 would  eliminate                 
  the   three   year   moratorium   on   repayment   following                 
  incarceration.                                                               
                                                                               
  Representative Grussendorf  expressed concern that  CSHB 151                 
  (JUD) would  prevent innocent indigent persons  from seeking                 
  counsel.                                                                     
                                                                               
  Co-Chair  Larson  presented members  with  a proposed  House                 
  Finance  as  for CSHB  151 (JUD)  (Attachment  8).   He also                 
  provided members with an analysis of the proposed changes to                 
  CSHB 151 (JUD) (Attachment 9).                                               
                                                                               
                                                                               
                               12                                              
                                                                               
                                                                               
  Co-Chair MacLean MOVED  to adopt the proposed as, Work Draft                 
  8-LS0618\E, dated 3/10/93.  Representative Parnell  OBJECTED                 
  for purpose of discussion.                                                   
                                                                               
  Representative Brown  asked that CSHB  151 (JUD) be  HELD in                 
  Committee.   She expressed  concerns with  how poor  persons                 
  access to the criminal justice system will be effected.  She                 
  asked what  will be  accomplished by  taking resources  from                 
  indigent individuals.                                                        
                                                                               
  Co-Chair MacLean reviewed  the proposed  as.  She  explained                 
  changes to CSHB 151 (JUD): (See Attachment 9)                                
                                                                               
       *    Expands the title;                                                 
                                                                               
       *    Takes  out language that  would require people who                 
            are acquitted to pay for  costs of legal services.                 
            This change returns to existing  law that, "upon a                 
            person's  conviction,  the   court  may  enter   a                 
            judgement...";                                                     
                                                                               
       *    Takes out language  that could allow the  court to                 
            impose  costs for services  and facilities.   This                 
            change  narrows  CSHB 151  (JUD)  to the  costs of                 
            representation;                                                    
                                                                               
       *    Allows  delay  of  payment if  the  case  is under                 
            appeal;                                                            
                                                                               
       *    Allows the court to remit  or reduce the judgement                 
            or to change the  method of payment if there  is a                 
            hardship on the defendant or his family;                           
                                                                               
       *    Adds a report requirement to  review and study the                 
            effect of the law.                                                 
                                                                               
  Representative Martin asked if the report is necessary.  Co-                 
  Chair MacLean stressed that the Committee Substitute will be                 
  revenue  enhancing.    She  felt  that  a   study  would  be                 
  inexpensive.  Co-Chair  MacLean asked  why the Alaska  Court                 
  System  did  not supply  a  fiscal note  reflecting enhanced                 
  revenues.   She  noted  the Office  of  Public Advocacy  has                 
  estimated that the  legislation would  result in $3  million                 
  dollars a year.                                                              
                                                                               
  Mr. Christensen stressed that there would be no financial or                 
  administrative  benefit  to the  court.   He  clarified that                 
  income resulting from  the legislation will be  deposited in                 
  the General Fund.   He suggested that the Department  of Law                 
  and the Department of Corrections would incur administrative                 
  savings.                                                                     
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
  MARILYN MAY, ASSISTANT ATTORNEY  GENERAL, DEPARTMENT OF  LAW                 
  clarified that 1200 judgments have been issued since July 1,                 
  1992.  The judgments are worth approximately $240.0 thousand                 
  dollars.    One  hundred  and  Twenty-three have  been  paid                 
  voluntarily.    The Department  of  Law has  collected $21.0                 
  thousand dollars.                                                            
                                                                               
  Ms. May emphasized  that there  is an administrative  burden                 
  since some judgments  cannot be  executed immediately.   The                 
  Department  of   Law  coordinate  with  the   Department  of                 
  Corrections to determine  when collections  can begin.   She                 
  asserted that an additional  administrative burden is caused                 
  by  a  hardship  provision  which  allows petitions  to  the                 
  Department.   She  stated  that the  Department  of Law  can                 
  comply  with  the  reporting  provision  with  the  existing                 
  computer system.                                                             
                                                                               
  CSHB 151 (JUD) was HELD in Committee.                                        
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:15 p.m.                                           
                                                                               
                                                                               
                               14                                              

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