Legislature(1993 - 1994)

03/25/1994 08:35 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 25, 1994                                        
                            8:35 A.M.                                          
                                                                               
  TAPE HFC 94 - 86, Side 2, #000 - end.                                        
  TAPE HFC 94 - 87, Side 1, #000 - #599.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 8:35 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Margot Knuth, Assistant Attorney General, Criminal Division,                 
  Department  of  Law;  Jan  Hansen,  Director,  Adult  Public                 
  Assistance, Department of Health and  Social Services; Cindy                 
  Smith, Director, Network on Domestic Violence, Juneau; Jerry                 
  Burnett,   Staff,  Senator   Randy  Phillips;   David  Rose,                 
  (Testified  via  teleconference), Financial  Advisor, Alaska                 
  Permanent Capital  Management Company, Anchorage;  Robert L.                 
  Brean,  (Testified  via  teleconference),   Director,  Rural                 
  Housing, Alaska Housing Finance Corporation, Anchorage.                      
                                                                               
  SUMMARY                                                                      
  SB 45     An Act relating to persons  under 21 years of age;                 
            providing  for  designation  of `safe  homes'  for                 
            runaway  minors;  and providing  for  an effective                 
            date.                                                              
                                                                               
            SB   45  was   HELD  in   Committee   for  further                 
            consideration.                                                     
  HB 409    An  Act   relating  to  the   maximum  amount   of                 
            assistance  that may  be granted  under the  adult                 
            public assistance program  and the program  of aid                 
            to families with  dependent children; proposing  a                 
            special demonstration project  within the  program                 
            of aid  to  families with  dependent children  and                 
            directing  the  Department  of  Health and  Social                 
                                                                               
                                1                                              
                                                                               
                                                                               
            Services  to   seek  waivers   from  the   federal                 
            government to implement the project; and providing                 
            for an effective date.                                             
                                                                               
            CS HB 409 (FIN) was reported out of Committee with                 
            a  "do  pass" recommendation  and  with seven  new                 
            fiscal impact notes  by the  Department of  Health                 
            and Social Services and with three fiscal notes by                 
            the Department of Health and Social Services dated                 
            3/04/94.                                                           
  HB 450    An  Act relating  to investment  pools for  public                 
            entities; and providing for an effective date.                     
                                                                               
            HB 450  was reported out  of Committee with  a "do                 
  pass"          recommendation and with a zero fiscal note by                 
                 the  Department  of  Community  and  Regional                 
                 Affairs.                                                      
  HB 467    An Act relating to housing  programs of the Alaska                 
            Housing  Finance  Corporation   and  of   regional                 
            housing  authorities,   and  permitting   regional                 
            housing  authorities  to   make,  originate,   and                 
            service loans for the  purchase and development of                 
            residential   housing   in   the   state's   small                 
            communities.                                                       
                                                                               
            HB 467 was  reported out of  Committee with a  "do                 
            pass" recommendation and with a fiscal note by the                 
            Department of Revenue dated 3/16/94.                               
  CSSB 238(FIN)  An Act establishing a procedure for review                    
            of  proposed  projects  under the  Alaska  coastal                 
            management program, and relating  to petitions for                 
            compliance  with  and   enforcement  of   district                 
            coastal management programs under that program and                 
            to the disposition of those petitions.                             
                                                                               
            CS SB 238 (FIN) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by the Office of the Governor dated 2/11/94.                       
  HOUSE BILL 409                                                               
                                                                               
       "An Act relating  to the  maximum amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
       dependent children; proposing  a special  demonstration                 
       project  within  the program  of  aid to  families with                 
       dependent children  and  directing  the  Department  of                 
       Health and  Social Services  to seek  waivers from  the                 
       federal  government  to  implement   the  project;  and                 
                                                                               
                                2                                              
                                                                               
                                                                               
       providing for an effective date."                                       
                                                                               
  JAN HANSEN, DIRECTOR, ADULT PUBLIC ASSISTANCE, DEPARTMENT OF                 
  HEALTH AND SOCIAL  SERVICES, described  changes made to  the                 
  proposed legislation by  the House Finance Committee.   When                 
  adding    Fairbanks,    the   additional    site   increased                 
  administrative  and  child  care  costs   for  those  people                 
  participating.   She  added  that the  changes  made in  the                 
  "workfare"  requirement,  deleting  those participants  with                 
  children three years  of age and  then only including  those                 
  with children six  years and older, would  reduce child care                 
  costs.                                                                       
                                                                               
  Representative  Brown   questioned  if   the  Adult   Public                 
  Assistance   (APA)   reduction   would  place   low   income                 
  participants  in  a  situation  of  not being  eligible  for                 
  Medicaid.  She asked how these  persons would be affected by                 
  HB 409.   Ms. Hansen replied that  the changes to APA  for a                 
  person with no income would be  minimal and advised that the                 
  reduction was  structured in such  a way that  those persons                 
  who could not receive APA payments would  not lose Medicaid.                 
                                                                               
                                                                               
  Representative Hanley MOVED to report CS HB 409 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  Representative Brown OBJECTED.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Martin,  Parnell,   Therriault,  Hanley,                 
                      Larson.                                                  
       OPPOSED:       Hoffman, Brown, Grussendorf.                             
                                                                               
  Representatives Navarre, Foster and MacLean were not present                 
  for the vote.                                                                
                                                                               
  The MOTION FAILED (5-3).                                                     
  SENATE BILL 238                                                              
                                                                               
       "An Act establishing a procedure for review of proposed                 
       projects under  the Alaska coastal  management program,                 
       and  relating to  petitions  for  compliance  with  and                 
       enforcement  of  district  coastal management  programs                 
       under  that  program and  to  the disposition  of those                 
       petitions."                                                             
                                                                               
  Co-Chair Larson  MOVED  TO  RESCIND  previous  action  which                 
  failed to  move CS  SB 238  (FIN) out  of Committee.   There                 
  being NO OBJECTION, the action was rescinded.                                
                                                                               
  Representative Hanley MOVED to report CS SB 238 (FIN) out of                 
                                                                               
                                3                                              
                                                                               
                                                                               
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  adopted.                                                                     
                                                                               
  CS SB 238  (FIN) was  reported out of  Committee with a  "do                 
  pass" recommendation and with a fiscal note by the Office of                 
  the Governor dated 2/11/94.                                                  
  HOUSE BILL 467                                                               
                                                                               
       "An  Act  relating to  housing  programs of  the Alaska                 
       Housing  Finance Corporation  and  of regional  housing                 
       authorities,    and    permitting    regional   housing                 
       authorities to make,  originate, and service loans  for                 
       the purchase  and development of residential housing in                 
       the state's small communities."                                         
                                                                               
  Co-Chair MacLean explained that HB 467 would make changes to                 
  the  Rural  Loan  Program  of  the  Alaska  Housing  Finance                 
  Corporation (AHFC) in order to  increase the availability of                 
  loan  services  and to  encourage  more investment  in rural                 
  housing.   She added that current law  does not specifically                 
  authorize  regional  housing  authorities  to  originate  or                 
  service loans  in areas  where AHFC  has a  regional office.                 
  This  action  prevents  housing  authorities  in  Fairbanks,                 
  Kotzebue,   Nome,  Bethel,   Dillingham   and  Juneau   from                 
  generating and servicing loans for AHFC.                                     
                                                                               
  Co-Chair  MacLean advised  that  the  bill  would  encourage                 
  greater  investment  in  rural  housing  by allowing  owner-                 
  occupants  to finance up to  four units in  a complex and by                 
  allowing owners  to inhabit larger rental complexes.  HB 467                 
  would  also  allow  AHFC to  increase  its  participation in                 
  projects  with unusually  high water and  sewer installation                 
  costs   without   reducing  the   amount   of   the  federal                 
  contribution to such projects.                                               
                                                                               
  ROBERT  BREAN,  (TESTIFIED  VIA  TELECONFERENCE),  DIRECTOR,                 
  RURAL   HOUSING,   ALASKA   HOUSING   FINANCE   CORPORATION,                 
  ANCHORAGE, commented  that AHFC supports HB 467  and sees it                 
  as  a  positive  pro-active  bill  that  would  provide  for                 
  flexibility and consideration of the  rural housing programs                 
  providing service to rural Alaska.   He pointed out the main                 
  points of the legislation:  [Copy on file].                                  
                                                                               
       1.   The regional housing  authorities statewide  would                 
            be  authorized through  HB  467  to originate  and                 
            service residential loans  in small communities in                 
            their respective regions.   The provision  further                 
            empowers  the  regional  housing   authorities  to                 
            provide  service in their  region with the support                 
            of AHFC.                                                           
                                                                               
                                4                                              
                                                                               
                                                                               
       2.   AHFC's Rural Housing Programs would be  authorized                 
            through HB 467 to increase  the allowable match of                 
            the Housing  and Urban Development  Grants to  the                 
            Regional Housing Authorities from 20%  to 30% on a                 
            case by case  basis.  Presently,  the Supplemental                 
            Housing Grant Program provides 20%  match to HUD's                 
            total development cost of  housing units in  rural                 
            Alaska.   This provision of the bill would allow a                 
            match to go up to 30% on  a case by case basis for                 
            water and sewer features.                                          
                                                                               
       3.   AHFC's Rural Housing Programs  would be authorized                 
            through HB 467 to expand the definition of "rental                 
            housing"  from eight  units to  sixteen  units and                 
            allow the owner to occupy the  complex in order to                 
            provide  for on  site  operation, maintenance  and                 
            protection   of   the   development  opportunities                 
            throughout rural Alaska.                                           
                                                                               
       4.   AHFC's Rural Housing  Programs would be authorized                 
            through  HB   467  to  expand  the  definition  of                 
            "housing" to mean a dwelling containing up to four                 
            units as opposed  to a  dwelling containing up  to                 
            two  units.     The  definition   allows  for  the                 
            enhancement   of   local    economic   development                 
            opportunities throughout rural Alaska.                             
                                                                               
  Mr.  Brean  stated that  the program  would  not be  a grant                 
  program, but  would establish  a loan  program.   Discussion                 
  followed among House Finance Committee members regarding the                 
  program and modifications of the word "rental", Page 4, Line                 
  18.  Mr.  Brean stated that  definition changes would be  to                 
  rural residential housing and owner occupied housing.                        
                                                                               
  Representative Martin noted his concern with the low quality                 
  of the  HUD homes built elsewhere in the United States.  Mr.                 
  Brean  advised  that  AHFC's Rural  Loan  Program  must meet                 
  specific conditions as established by the national  building                 
  code standards and added, that thermal standards must be met                 
  by any loan provided through AHFC.                                           
                                                                               
  Discussion  followed  regarding  "ownership"  of large  unit                 
  complexes and  where that owner  would be  required to  live                 
  during the owner occupied program.                                           
                                                                               
  Representative Brown asked for  further clarification of the                 
  "housing"   language   and  the   effect   it  would   have.                 
  Representative Hanley pointed  out that  language would  not                 
  include residence unless  the residence  is occupied by  the                 
  owner.                                                                       
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative Martin questioned why  it would be  necessary                 
  to by-pass the  traditional lender in favor  of the regional                 
  housing authority.  Mr. Brean responded that  AHFC will work                 
  through local banks, however, there are some rural locations                 
  where banks are reluctant to build.  He emphasized that AHFC                 
  is involved in  all areas and there would not  be a conflict                 
  between the banks and AHFC financing.                                        
                                                                               
  (Tape Change, HFC 94-87, Side 1).                                            
                                                                               
  Representative  Hoffman  MOVED  to  report  HB  467  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,   Therriault,  Brown,   Foster,                 
                      Grussendorf,  Hanley, Hoffman,  MacLean,                 
                      Larson.                                                  
       OPPOSED:       Martin.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  HB  467  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with  a fiscal note by the  Department of                 
  Revenue dated 3/16/94.                                                       
  HOUSE BILL 409                                                               
                                                                               
       "An Act relating  to the  maximum amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
       dependent children; proposing  a special  demonstration                 
       project  within  the program  of  aid to  families with                 
       dependent  children  and  directing  the Department  of                 
       Health and  Social Services  to seek  waivers from  the                 
       federal  government  to   implement  the  project;  and                 
       providing for an effective date."                                       
                                                                               
  Representative  Hanley  MOVED  TO RESCIND  Committee  action                 
  taken on failure to report CS HB 409 (FIN) out of Committee.                 
  Representative Brown OBJECTED.                                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, Larson, MacLean.                                 
       OPPOSED:       Brown, Grussendorf, Hoffman.                             
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
                                6                                              
                                                                               
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Representative Hanley MOVED to report CS HB 409 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  Representative Hoffman OBJECTED.                 
  Representative  Grussendorf  spoke  against the  legislation                 
  which  would make  cuts  to areas  not participating  in the                 
  program.  Representative  Hoffman added  that the funds  for                 
  the program should have originated from general funds rather                 
  than  being   taken  from  those   families  with  dependant                 
  children.   He emphasized  that the  Association of  Village                 
  Council Presidents spoke strongly against the legislation.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, MacLean, Larson.                                 
       OPPOSED:       Brown, Grussendorf, Hoffman.                             
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  CS HB 409 (FIN) was reported out of Committee with "do pass"                 
  recommendation and with seven fiscal notes by the Department                 
  of Health and Social Services and  three fiscal notes by the                 
  Department of Health and Social Services dated 3/04/94.                      
  HOUSE BILL 450                                                               
                                                                               
       "An  Act  relating  to  investment  pools  for   public                 
       entities; and providing for an effective date."                         
                                                                               
  DAVID  ROSE,  (TESTIFIED   VIA  TELECONFERENCE),   FINANCIAL                 
  ADVISOR,  ALASKA  PERMANENT   CAPITAL  MANAGEMENT   COMPANY,                 
  ANCHORAGE,  stated  that HB  450  would allow  public entity                 
  investment pools a  broader ranger of investment  options to                 
  enhance their financial performance.   Mr. Rose outlined the                 
  technical  changes  which  had  been  coordinated  with  the                 
  Commissioner of Revenue.  [Copy on file].                                    
                                                                               
  Representative  Martin  MOVED  to  report   HB  450  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying  fiscal note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  HB  450  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and  with a fiscal note by  the Department of                 
  Community and Regional Affairs.                                              
  SENATE BILL 45                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
       "An  Act relating  to persons  under 21  years of  age;                 
       providing for  designation of `safe homes'  for runaway                 
       minors; and providing for an effective date."                           
                                                                               
  Representative Therriault reviewed  the Subcommittee's  work                 
  which  deleted  the  working  prohibition.    Representative                 
  Hanley MOVED  the work draft 8-LS0355\Q, Lauterbach, 3/23/94                 
  as the  version  before  the  Committee.    There  being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative Hoffman referenced Page 6, Line 20, and MOVED                 
  to adopt a  conceptual amendment, Amendment #1,  which would                 
  leave in the language "[Take the  minor to a nearby location                 
  agreed  to  be   the  minor   and  the  legal   custodian]".                 
  Discussion  followed  among   Committee  members   regarding                 
  continued inclusion of the language.                                         
                                                                               
  CINDY SMITH, DIRECTOR, NETWORK ON DOMESTIC VIOLENCE, JUNEAU,                 
  spoke   in  support  of  including  the  language  regarding                 
  location  of  a  minor agreed  to  by  the  minor and  legal                 
  custodian.                                                                   
                                                                               
  JERRY  BURNETT, STAFF  TO SENATOR  RANDY PHILLIPS,  remarked                 
  that  the  language  was  removed  in  the  House  Judiciary                 
  Committee.    He  added  that  the  sponsor  would agree  to                 
  inclusion of the language.                                                   
                                                                               
  There being NO OBJECTION, Amendment  #1 was adopted with the                 
  necessary  language changes within  the body of  the bill to                 
  accomodate that change.                                                      
                                                                               
  Representative Hanley MOVED to adopt Amendment #2.  [Copy on                 
  file].                                                                       
                                                                               
  MARGOT KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION,                 
  DEPARTMENT OF LAW,  stated that the purpose of the amendment                 
  would help to  solve an  unreasonable constraint in  dealing                 
  with juveniles who are in custody.  She pointed out that the                 
  amendment would create an exception allowing a minor to  ask                 
  that  a parent,  guardian or  custodian not be  notified and                 
  which would be treated as a right that a minor must exercise                 
  knowingly.                                                                   
                                                                               
  Ms. Knuth questioned whose right it should be to talk to the                 
  police, the  minor's  right  or the  parent's  right.    The                 
  amendment recognizes  that the  minor should  have the  same                 
  ability as an adult regarding with whom they choose to speak                 
  with.  She  continued that  there is not  an age  limitation                 
  provided in the legislation.                                                 
                                                                               
  Representative Brown MOVED to  divide Amendment #2, whereas,                 
                                                                               
                                8                                              
                                                                               
                                                                               
  the  changes  proposed  to  Page  5,  Line  1,  would  stand                 
  independent of the amendment.   There being NO OBJECTION, it                 
  was divided.                                                                 
                                                                               
  Representative Hanley  MOVED to adopt Portion  #1, Amendment                 
                                                                               
  Representative Hanley MOVED to  adopt Portion #2,  Amendment                 
                                                                               
  CS  SB   45  (FIN)  was   HELD  in  Committee   for  further                 
  consideration.                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:00 A.M.                                          
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 25, 1994                                        
                            8:35 A.M.                                          
                                                                               
  TAPE HFC 94 - 86, Side 2, #000 - end.                                        
  TAPE HFC 94 - 87, Side 1, #000 - #599.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the  House Finance Committee  meeting                 
  to order at 8:35 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Foster                          
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Navarre was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Margot Knuth, Assistant Attorney General, Criminal Division,                 
  Department  of  Law;  Jan  Hansen,  Director,  Adult  Public                 
  Assistance, Department of Health and Social Services;  Cindy                 
  Smith, Director, Network on Domestic Violence, Juneau; Jerry                 
  Burnett,   Staff,  Senator   Randy  Phillips;   David  Rose,                 
  (Testified  via  teleconference), Financial  Advisor, Alaska                 
  Permanent Capital  Management Company, Anchorage;  Robert L.                 
  Brean,  (Testified  via  teleconference),   Director,  Rural                 
  Housing, Alaska Housing Finance Corporation, Anchorage.                      
                                                                               
                                9                                              
                                                                               
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 45     An Act relating to persons under 21 years of  age;                 
            providing for  designation  of  `safe  homes'  for                 
            runaway  minors; and  providing  for an  effective                 
            date.                                                              
                                                                               
            SB  45   was   HELD  in   Committee  for   further                 
            consideration.                                                     
                                                                               
  HB 409    An  Act   relating  to   the  maximum   amount  of                 
            assistance that  may be  granted  under the  adult                 
            public assistance program  and the program of  aid                 
            to families  with dependent children;  proposing a                 
            special demonstration project  within the  program                 
            of  aid to  families with  dependent children  and                 
            directing  the  Department  of Health  and  Social                 
            Services  to   seek  waivers   from  the   federal                 
            government to implement the project; and providing                 
            for an effective date.                                             
                                                                               
            CS HB 409 (FIN) was reported out of Committee with                 
            a  "do pass"  recommendation  and  with seven  new                 
            fiscal impact  notes by the  Department of  Health                 
            and Social Services and with three fiscal notes by                 
            the Department of Health and Social Services dated                 
            3/04/94.                                                           
                                                                               
  HB 450    An Act  relating  to investment  pools for  public                 
            entities; and providing for an effective date.                     
                                                                               
            HB 450  was reported out  of Committee with  a "do                 
  pass"          recommendation and with a zero fiscal note by                 
                 the  Department  of  Community  and  Regional                 
                 Affairs.                                                      
                                                                               
  HB 467    An Act relating to housing  programs of the Alaska                 
            Housing  Finance  Corporation   and  of   regional                 
            housing  authorities,   and  permitting   regional                 
            housing  authorities  to   make,  originate,   and                 
            service loans for the purchase  and development of                 
            residential   housing   in   the   state's   small                 
            communities.                                                       
                                                                               
            HB 467 was  reported out of  Committee with a  "do                 
            pass" recommendation and with a fiscal note by the                 
            Department of Revenue dated 3/16/94.                               
                                                                               
  CSSB 238(FIN)  An Act establishing a procedure for review                    
            of  proposed  projects  under the  Alaska  coastal                 
            management program, and relating  to petitions for                 
                                                                               
                               10                                              
                                                                               
                                                                               
            compliance  with  and   enforcement  of   district                 
            coastal management programs under that program and                 
            to the disposition of those petitions.                             
                                                                               
            CS SB 238 (FIN) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by the Office of the Governor dated 2/11/94.                       
                                                                               
  HOUSE BILL 409                                                               
                                                                               
       "An Act relating  to the  maximum amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
       dependent children; proposing  a special  demonstration                 
       project  within  the program  of  aid to  families with                 
       dependent  children  and  directing  the Department  of                 
       Health and  Social Services  to seek  waivers from  the                 
       federal  government  to   implement  the  project;  and                 
       providing for an effective date."                                       
                                                                               
  JAN HANSEN, DIRECTOR, ADULT PUBLIC ASSISTANCE, DEPARTMENT OF                 
  HEALTH AND SOCIAL  SERVICES, described  changes made to  the                 
  proposed legislation by  the House Finance Committee.   When                 
  adding    Fairbanks,    the   additional    site   increased                 
  administrative  and  child  care  costs  for  those   people                 
  participating.   She  added  that the  changes  made in  the                 
  "workfare"  requirement,  deleting  those participants  with                 
  children three years  of age and  then only including  those                 
  with children six  years and older, would  reduce child care                 
  costs.                                                                       
                                                                               
  Representative  Brown   questioned  if   the  Adult   Public                 
  Assistance   (APA)   reduction   would  place   low   income                 
  participants  in  a  situation  of  not being  eligible  for                 
  Medicaid.  She asked how these  persons would be affected by                 
  HB 409.   Ms. Hansen replied that  the changes to APA  for a                 
  person with no income would be  minimal and advised that the                 
  reduction was  structured in such  a way that  those persons                 
  who could not receive APA payments would  not lose Medicaid.                 
                                                                               
                                                                               
  Representative Hanley MOVED to report CS HB 409 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  Representative Brown OBJECTED.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Martin,  Parnell,   Therriault,  Hanley,                 
                      Larson.                                                  
       OPPOSED:       Hoffman, Brown, Grussendorf.                             
                                                                               
  Representatives Navarre, Foster and MacLean were not present                 
                                                                               
                               11                                              
                                                                               
                                                                               
  for the vote.                                                                
                                                                               
  The MOTION FAILED (5-3).                                                     
                                                                               
  SENATE BILL 238                                                              
                                                                               
       "An Act establishing a procedure for review of proposed                 
       projects under  the Alaska coastal  management program,                 
       and  relating  to  petitions  for  compliance with  and                 
       enforcement  of  district  coastal management  programs                 
       under  that  program and  to  the disposition  of those                 
       petitions."                                                             
                                                                               
  Co-Chair  Larson  MOVED  TO  RESCIND previous  action  which                 
  failed to  move CS  SB 238  (FIN) out of  Committee.   There                 
  being NO OBJECTION, the action was rescinded.                                
                                                                               
  Representative Hanley MOVED to report CS SB 238 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  adopted.                                                                     
                                                                               
  CS SB 238  (FIN) was reported  out of  Committee with a  "do                 
  pass" recommendation and with a fiscal note by the Office of                 
  the Governor dated 2/11/94.                                                  
                                                                               
  HOUSE BILL 467                                                               
                                                                               
       "An  Act  relating to  housing  programs of  the Alaska                 
       Housing  Finance Corporation  and  of regional  housing                 
       authorities,    and    permitting    regional   housing                 
       authorities to  make, originate, and  service loans for                 
       the purchase and development  of residential housing in                 
       the state's small communities."                                         
                                                                               
  Co-Chair MacLean explained that HB 467 would make changes to                 
  the  Rural  Loan  Program  of  the  Alaska  Housing  Finance                 
  Corporation (AHFC) in order to  increase the availability of                 
  loan  services  and to  encourage  more investment  in rural                 
  housing.   She added that current law  does not specifically                 
  authorize  regional  housing  authorities  to  originate  or                 
  service loans  in areas  where AHFC  has a  regional office.                 
  This  action  prevents  housing  authorities  in  Fairbanks,                 
  Kotzebue,   Nome,  Bethel,   Dillingham   and  Juneau   from                 
  generating and servicing loans for AHFC.                                     
                                                                               
  Co-Chair  MacLean  advised  that the  bill  would  encourage                 
  greater investment  in  rural  housing  by  allowing  owner-                 
  occupants to finance up  to four units in  a complex and  by                 
  allowing owners  to inhabit larger rental complexes.  HB 467                 
  would  also  allow  AHFC to  increase  its  participation in                 
  projects with  unusually high  water and  sewer installation                 
                                                                               
                               12                                              
                                                                               
                                                                               
  costs   without   reducing   the  amount   of   the  federal                 
  contribution to such projects.                                               
                                                                               
  ROBERT  BREAN,  (TESTIFIED  VIA  TELECONFERENCE),  DIRECTOR,                 
  RURAL   HOUSING,   ALASKA   HOUSING   FINANCE   CORPORATION,                 
  ANCHORAGE, commented that  AHFC supports HB 467  and sees it                 
  as  a  positive  pro-active  bill  that  would  provide  for                 
  flexibility and  consideration of the rural housing programs                 
  providing service to rural Alaska.   He pointed out the main                 
  points of the legislation:  [Copy on file].                                  
                                                                               
       1.   The regional housing  authorities statewide  would                 
            be  authorized  through HB  467  to originate  and                 
            service residential loans in small communities  in                 
            their respective  regions.  The  provision further                 
            empowers  the  regional  housing   authorities  to                 
            provide service  in their region with  the support                 
            of AHFC.                                                           
                                                                               
       2.   AHFC's Rural Housing Programs would be  authorized                 
            through HB 467 to increase  the allowable match of                 
            the Housing  and Urban  Development Grants to  the                 
            Regional Housing Authorities from 20%  to 30% on a                 
            case by  case basis.  Presently,  the Supplemental                 
            Housing Grant Program provides 20% match to  HUD's                 
            total development  cost of housing units  in rural                 
            Alaska.   This provision of the bill would allow a                 
            match to go up to 30% on  a case by case basis for                 
            water and sewer features.                                          
                                                                               
       3.   AHFC's Rural Housing Programs  would be authorized                 
            through HB 467 to expand the definition of "rental                 
            housing"  from eight  units to  sixteen units  and                 
            allow the owner to occupy the  complex in order to                 
            provide  for on  site  operation, maintenance  and                 
            protection   of   the   development  opportunities                 
            throughout rural Alaska.                                           
                                                                               
       4.   AHFC's Rural Housing  Programs would be authorized                 
            through  HB  467  to   expand  the  definition  of                 
            "housing" to mean a dwelling containing up to four                 
            units as opposed  to a  dwelling containing up  to                 
            two  units.    The   definition  allows  for   the                 
            enhancement   of   local    economic   development                 
            opportunities throughout rural Alaska.                             
                                                                               
  Mr.  Brean  stated that  the program  would  not be  a grant                 
  program, but  would establish  a loan  program.   Discussion                 
  followed among House Finance Committee members regarding the                 
  program and modifications of the word "rental", Page 4, Line                 
  18.  Mr.  Brean stated that  definition changes would be  to                 
  rural residential housing and owner occupied housing.                        
                                                                               
                               13                                              
                                                                               
                                                                               
  Representative Martin noted his concern with the low quality                 
  of the HUD homes built elsewhere in the United States.   Mr.                 
  Brean  advised  that  AHFC's Rural  Loan  Program  must meet                 
  specific conditions as established  by the national building                 
  code standards and added, that thermal standards must be met                 
  by any loan provided through AHFC.                                           
                                                                               
  Discussion  followed  regarding  "ownership" of  large  unit                 
  complexes and  where that  owner would  be required to  live                 
  during the owner occupied program.                                           
                                                                               
  Representative  Brown asked for further clarification of the                 
  "housing"   language   and  the   effect   it   would  have.                 
  Representative Hanley  pointed out  that language would  not                 
  include residence unless  the residence  is occupied by  the                 
  owner.                                                                       
                                                                               
  Representative Martin  questioned why it would  be necessary                 
  to by-pass the  traditional lender in favor  of the regional                 
  housing authority.  Mr. Brean responded that  AHFC will work                 
  through local banks, however, there are some rural locations                 
  where banks are reluctant to build.  He emphasized that AHFC                 
  is  involved in all areas and  there would not be a conflict                 
  between the banks and AHFC financing.                                        
                                                                               
  (Tape Change, HFC 94-87, Side 1).                                            
                                                                               
  Representative  Hoffman  MOVED  to  report  HB  467  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,   Therriault,  Brown,   Foster,                 
                      Grussendorf,  Hanley, Hoffman,  MacLean,                 
                      Larson.                                                  
       OPPOSED:       Martin.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  HB  467  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with  a fiscal note by the  Department of                 
  Revenue dated 3/16/94.                                                       
                                                                               
  HOUSE BILL 409                                                               
                                                                               
       "An Act relating  to the  maximum amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
                                                                               
                               14                                              
                                                                               
                                                                               
       dependent children; proposing  a special  demonstration                 
       project  within  the program  of  aid to  families with                 
       dependent  children  and  directing the  Department  of                 
       Health and  Social Services  to seek  waivers from  the                 
       federal  government  to  implement  the  project;   and                 
       providing for an effective date."                                       
                                                                               
  Representative Hanley  MOVED  TO  RESCIND  Committee  action                 
  taken on failure to report CS HB 409 (FIN) out of Committee.                 
  Representative Brown OBJECTED.                                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, Larson, MacLean.                                 
       OPPOSED:       Brown, Grussendorf, Hoffman.                             
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  Representative Hanley MOVED to report CS HB 409 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  Representative Hoffman OBJECTED.                 
  Representative  Grussendorf  spoke  against the  legislation                 
  which  would make  cuts  to areas  not participating  in the                 
  program.  Representative  Hoffman added  that the funds  for                 
  the program should have originated from general funds rather                 
  than  being  taken  from   those  families  with   dependant                 
  children.   He emphasized  that the  Association of  Village                 
  Council Presidents spoke strongly against the legislation.                   
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, MacLean, Larson.                                 
       OPPOSED:       Brown, Grussendorf, Hoffman.                             
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (7-3).                                                     
                                                                               
  CS HB 409 (FIN) was reported out of Committee with "do pass"                 
  recommendation and with seven fiscal notes by the Department                 
  of Health and Social Services and  three fiscal notes by the                 
  Department of Health and Social Services dated 3/04/94.                      
                                                                               
  HOUSE BILL 450                                                               
                                                                               
       "An  Act   relating  to  investment  pools  for  public                 
       entities; and providing for an effective date."                         
                                                                               
                                                                               
                               15                                              
                                                                               
                                                                               
  DAVID  ROSE,  (TESTIFIED   VIA  TELECONFERENCE),   FINANCIAL                 
  ADVISOR,  ALASKA  PERMANENT   CAPITAL  MANAGEMENT   COMPANY,                 
  ANCHORAGE,  stated  that HB  450  would allow  public entity                 
  investment pools a  broader ranger of investment  options to                 
  enhance their financial performance.   Mr. Rose outlined the                 
  technical  changes  which  had  been  coordinated  with  the                 
  Commissioner of Revenue.  [Copy on file].                                    
                                                                               
  Representative  Martin  MOVED  to  report   HB  450  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  HB  450  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with  a fiscal note by  the Department of                 
  Community and Regional Affairs.                                              
                                                                               
  SENATE BILL 45                                                               
                                                                               
       "An  Act relating  to persons  under 21  years of  age;                 
       providing for designation  of `safe homes' for  runaway                 
       minors; and providing for an effective date."                           
                                                                               
  Representative Therriault reviewed  the Subcommittee's  work                 
  which  deleted  the  working  prohibition.    Representative                 
  Hanley MOVED the work  draft 8-LS0355\Q, Lauterbach, 3/23/94                 
  as the  version  before  the  Committee.    There  being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative Hoffman referenced Page 6, Line 20, and MOVED                 
  to adopt a  conceptual amendment, Amendment #1,  which would                 
  leave in the language "[Take the  minor to a nearby location                 
  agreed  to  be   the  minor   and  the  legal   custodian]".                 
  Discussion  followed  among   Committee  members   regarding                 
  continued inclusion of the language.                                         
                                                                               
  CINDY SMITH, DIRECTOR, NETWORK ON DOMESTIC VIOLENCE, JUNEAU,                 
  spoke  in  support  of   including  the  language  regarding                 
  location  of  a  minor agreed  to  by  the  minor and  legal                 
  custodian.                                                                   
                                                                               
  JERRY  BURNETT,  STAFF TO  SENATOR RANDY  PHILLIPS, remarked                 
  that  the  language  was  removed  in  the  House  Judiciary                 
  Committee.    He  added  that  the  sponsor  would agree  to                 
  inclusion of the language.                                                   
                                                                               
  There being NO OBJECTION, Amendment  #1 was adopted with the                 
  necessary  language changes within  the body of  the bill to                 
  accomodate that change.                                                      
                                                                               
  Representative Hanley MOVED to adopt Amendment #2.  [Copy on                 
  file].                                                                       
                                                                               
                               16                                              
                                                                               
                                                                               
  MARGOT KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION,                 
  DEPARTMENT OF LAW, stated that the purpose  of the amendment                 
  would help to  solve an  unreasonable constraint in  dealing                 
  with juveniles who are in custody.  She pointed out that the                 
  amendment would create an exception  allowing a minor to ask                 
  that a parent,  guardian or  custodian not  be notified  and                 
  which would be treated as a right that a minor must exercise                 
  knowingly.                                                                   
                                                                               
  Ms. Knuth questioned whose right it should be to talk to the                 
  police,  the  minor's  right  or the  parent's  right.   The                 
  amendment recognizes  that the  minor should  have the  same                 
  ability as an adult regarding with whom they choose to speak                 
  with.  She  continued that  there is not  an age  limitation                 
  provided in the legislation.                                                 
                                                                               
  Representative Brown MOVED to divide Amendment #2,  whereas,                 
  the  changes  proposed  to  Page  5,  Line  1,  would  stand                 
  independent of the amendment.   There being NO OBJECTION, it                 
  was divided.                                                                 
                                                                               
  Representative  Hanley MOVED to  adopt Portion #1, Amendment                 
                                                                               
  Representative Hanley  MOVED to adopt Portion  #2, Amendment                 
                                                                               
  CS  SB   45  (FIN)  was   HELD  in  Committee   for  further                 
  consideration.                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:00 A.M.                                          
                                                                               
                                                                               
                               17                                              

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