Legislature(1995 - 1996)

04/26/1995 01:50 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 26, 1995                                        
                            1:50 P.M.                                          
                                                                               
  TAPE HFC 95 -  99, Side 2, #000 - end.                                       
  TAPE HFC 95 - 100, Side 1, #000 - end.                                       
  TAPE HFC 95 - 100, Side 2, #000 - end.                                       
  TAPE HFC 95 - 101, Side 1, #000 - #486.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House  Finance Committee                 
  meeting to order at 1:50 P.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Co-Chair Foster               Representative Martin                          
  Representative Mulder         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Kelly                                                         
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  H.  Pat   Ladner,  Executive   Director,  Alaska   Aerospace                 
  Development  Corporation,  Anchorage;  Arliss  Sturgulewski,                 
  (Testified via Teleconference), Interim  Executive Director,                 
  Alaska Science  & Technology  Foundation, Anchorage;  Thomas                 
  Wright, Staff  to Representative  Ivan Ivan;  Representative                 
  Brian Porter; Del Smith,  Deputy Commissioner, Department of                 
  Public  Safety;  Margo  Knuth,  Assistant Attorney  General,                 
  Criminal Division, Department of Law; Jerry Shriner, Special                 
  Assistant,  Office   of  the  Commissioner,   Department  of                 
  Corrections; Loren Jones, Director, Division of Alcoholism &                 
  Drug Abuse, Department  of Health  and Social Services;  Pam                 
  Neal, President,  Alaska State Chamber  of Commerce; Deborah                 
  Behr,  Regulations  Attorney,   Department  of  Law;   Deena                 
  Henkins,  Section   Chief,  Drinking  Water   &  Wastewater,                 
  Department  of  Environmental Conservation;  Bruce Campbell,                 
  Staff to Representative Pete Kelly;  John Lindback, Chief of                 
  Staff, Office of the Lt.  Governor; Elmer Lindstrom, Special                 
  Assistant  to the  Commissioner,  Department  of Health  and                 
  Social    Services;    Mike    Corhill,    (Testified    via                 
  teleconference),    President,    Alaska    Peace    Officer                 
  Association, Anchorage.                                                      
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 315    An Act relating to  the financing of technological                 
                                                                               
                                1                                              
                                                                               
                                                                               
            developments by public corporations  of the state;                 
            and relating to the financing of the Kodiak launch                 
            complex,  the  Fairbanks satellite  ground station                 
            space  park,  and  a  low-rank  coal  water   fuel                 
            technology project.                                                
                                                                               
            CS HB 315 (FIN) was reported out of Committee with                 
            "individual  recommendations"  and  with   a  zero                 
            fiscal note  by  the Department  of  Commerce  and                 
            Economic Development dated 4/20/95.                                
                                                                               
  HB 269    An Act  relating to credits against  certain taxes                 
            for  contributions  to certain  public educational                 
            radio and television networks and  stations and to                 
            endowments  for  public   educational  radio   and                 
            television   networks;   and   providing  for   an                 
            effective date.                                                    
                                                                               
            CS HB 269 (FIN) was reported out of Committee with                 
            a "no recommendation" and with  a zero fiscal note                 
            by the Department of Revenue dated 4/3/95.                         
                                                                               
  HB 159    An  Act  allowing  a person  under  age  21  to be                 
            arrested by a peace officer  without a warrant for                 
            illegal  possession,  consumption,  or control  of                 
            alcohol; relating to the  offenses of driving with                 
            a revoked  license, driving while  intoxicated, or                 
            failure to submit  to a chemical test of breath or                 
            blood; and providing for an effective date.                        
                                                                               
            CS HB 159 (JUD) was reported out of Committee with                 
            a "no recommendation" and with fiscal notes by the                 
            Department  of  Administration, the  Department of                 
            Public  Safety  dated  3/29/95,  the Alaska  Court                 
            System   dated   3/29/95,   the    Department   of                 
            Corrections  dated 3/29/95  and the  Department of                 
            Law dated 3/29/95.                                                 
                                                                               
  HB 130    An Act relating to agency review of public comment                 
            on  the   adoption,  amendment,   and  repeal   of                 
            regulations;  relating  to   the  examination   of                 
            proposed regulations,  amendments of  regulations,                 
            and   orders   repealing   regulations    by   the                 
            Administrative Regulation Review Committee and the                 
            Department of Law; relating  to the submission to,                 
            and  acceptance  by,  the  lieutenant governor  of                 
            proposed regulations,  amendments of  regulations,                 
            and  orders  repealing regulations;  and requiring                 
            agencies  to  make  certain determinations  before                 
            adopting regulations,  amendments of  regulations,                 
            or orders repealing regulations.                                   
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
            HB  130   was  HELD   in  Committee  for   further                 
            consideration.                                                     
  HOUSE BILL 315                                                               
                                                                               
       "An  Act  relating to  the  financing of  technological                 
       developments by public  corporations of the state;  and                 
       relating to the financing of the Kodiak launch complex,                 
       the Fairbanks satellite ground station space  park, and                 
       a low-rank coal water fuel technology project."                         
                                                                               
  ARLISS STURGULEWSKI, (TESTIFIED VIA TELECONFERENCE), INTERIM                 
  EXECUTIVE DIRECTOR, ALASKA SCIENCE  & TECHNOLOGY FOUNDATION,                 
  ANCHORAGE, provided  Committee  members  with  a  memorandum                 
  dated 4/26/95 regarding  the "Budget Information Requested".                 
  [Attachment #1].  She  offered to answer questions  from the                 
  Committee.                                                                   
                                                                               
  Representative Navarre  questioned how  the interest  of the                 
  fund  would be  protected.  Representative  Brown referenced                 
  Section #6 and  asked if award  money would result from  the                 
  interest  of  the foundation  or  from the  principle.   Ms.                 
  Sturgulewski explained  that  the coal  water fuel  proposal                 
  would be phased over a three  year period originating from a                 
  grant line.   If  Phase 2 of  the project  is accepted,  the                 
  first payment would be made this fiscal year.                                
                                                                               
  Ms. Sturgulewski referenced Attachment #1, pointing out that                 
  the analysis would remove the University Agriculture Station                 
  and the  Aerospace Development Corporation.   Representative                 
  Brown questioned why  the earnings  listed on Attachment  #1                 
  were  greater   without  the   inclusion  of   coal.     Ms.                 
  Sturgulewski indicated  that those  earning would  amount to                 
  $7.2   million   dollars.     Discussion   followed  between                 
  Representative Brown  and  Ms.  Sturgulewski  regarding  the                 
  estimated earning reserve  payments.  Representative Navarre                 
  recommended  removing  the  agriculture  component and  then                 
  focusing  the  availability  of that  grant  money  to other                 
  projects.                                                                    
                                                                               
  Representative Martin  thought that Business  and Industrial                 
  Development  Corporations and  Organizations (BIDCO)  made a                 
  commitment  to  support  the Alaska  Science  and Technology                 
  Foundation.  Ms. Sturgulewski responded that a BIDCO package                 
  has been submitted.   The return should be available  on May                 
  15th, 1995.                                                                  
  Representative  Martin  asked  how many  projects  would  be                 
  eliminated   with  the   advance  of  aerospace.     Senator                 
  Sturgulewski replied that aerospace would  move forward only                 
  if appropriate funding  was available.  She  emphasized that                 
  this was not  an appropriation bill.   Representative Martin                 
  stressed his  concerns with  future complications  resulting                 
                                                                               
                                3                                              
                                                                               
                                                                               
  from the legislation.                                                        
                                                                               
  Ms.  Sturgulewski responded  that  the foundation  currently                 
  handles many small  grants and that  the board of  directors                 
  will  continue  to  serve  the  needs  of  the  small  grant                 
  community.                                                                   
                                                                               
  Ms. Sturgulewski  explained that  the cold  water fuels  and                 
  royalties  plan bids should arrive soon.  The repayments for                 
  the  Science  and  Tech  Foundation  and the  Department  of                 
  Education will  come from royalties  received on  commercial                 
  sales and  from licensing  of that  technology.   Repayments                 
  will then become  a portion of  the negotiation, which  must                 
  begin in order that Phase 2 can start.                                       
                                                                               
  Representative  Brown  asked  if  satellite  facilities  are                 
  commercially viable.  Ms. Sturgulewski stated that there are                 
  private interests from  business and that it  is anticipated                 
  that  the  operation  would allow  for  significant  private                 
  sector information.   She added  that the investment  of the                 
  project is under  review from Alaska Industrial  Development                 
  Export Authority (AIDEA).   Representative Brown  questioned                 
  if that was the normal sequence of events in obtaining AIDEA                 
  bonding.                                                                     
                                                                               
  H.  PAT   LADNER,  EXECUTIVE   DIRECTOR,  ALASKA   AEROSPACE                 
  DEVELOPMENT  CORPORATION  (AADC), ANCHORAGE,  explained that                 
  was an  appropriate procedure  and noted  that the  proposed                 
  legislation would  provide Alaska  the opportunity to  enter                 
  into a new industry without placing money at risk.                           
                                                                               
  Representative   Martin  MOVED   to   adopt  Amendment   #1.                 
  Representative  Mulder  OBJECTED.     Representative  Martin                 
  stressed that free  enterprise should  "pay" their own  way.                 
  Representative Kelly advised  that the legislation would  be                 
  for the benefit of  the entire State, agreeing that  the 50%                 
  application  would  not  be   appropriate.    Representative                 
  Therriault stated that  fees would be  paid for by the  debt                 
  service, and noted that the  enterprise would be responsible                 
  for more  than 50%.  Representative Mulder  added that there                 
  would be a financial return through AIDEA and said that this                 
  would be a good project.                                                     
                                                                               
  Representative Martin  emphasized  that  the  Kodiak  launch                 
  complex, the Fairbanks  satellite ground space park  and the                 
  low rank  coal  water  fuel technology  should  be  able  to                 
  accumulate the remaining funds through a private match.                      
                                                                               
  Ms.   Sturgulewski   responded  to   Representative  Brown's                 
  questioned  regarding the  coal water  fuel  project stating                 
  that the major  amount of money  would be received from  the                 
  U.S. Department of  Energy and would  not be private  funds.                 
                                                                               
                                4                                              
                                                                               
                                                                               
  The Alaska Science &  Technology Foundation will  contribute                 
  $3.7  million  dollars  and the  Department  of  Energy will                 
  contribute $17 million dollars for  the demonstration of the                 
  project.  She pointed out that the language of the amendment                 
  would make receiving that contribution difficult.                            
                                                                               
  Representative Brown referenced  a letter from Mr.  Snell at                 
  AIDEA dated  3/7/95 explaining the anticipated $10.2 million                 
  to be received from the federal government and $8 million to                 
  be received from  the consortium members  in order to  begin                 
  Phase 2.   The intention would  be for the $4  million state                 
  dollars  to  be  spent  up-front  in  order to  provide  the                 
  preliminary  study  before  the  other participants  provide                 
  their money.   Ms. Sturgulewski  stated that all  phases are                 
  being worked on  together, while indicating that  her agency                 
  has clarified that the pay back  project would need to occur                 
  in  the first  three  years.   Ms. Sturgulewski  stated that                 
  Phase  1 has been  completed.  Phase 2  has not been entered                 
  into yet.  Representative  Brown advised that Representative                 
  Martin's  amendment would not conflict with the foundation's                 
  intention.  Ms. Sturgulewski disagreed stating that it would                 
  conflict with the amount of money originating from the grant                 
  and the Department of Energy.                                                
                                                                               
  Representative Brown  asked if the  legislation would affect                 
  the Healy  Claim Coal  Project.   Ms. Sturgulewski  remarked                 
  that  the   legislation  would   affect   the  tide   waters                 
  demonstration project on the  beach.  There are a  number of                 
  ownerships involved with the coal fields and she added, that                 
  group  was  interested  and would  be  participating  in the                 
  project.                                                                     
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Martin                                            
       OPPOSED:       Grussendorf,  Kelly,   Kohring,  Mulder,                 
                      Navarre, Therriault, Hanley, Foster                      
                                                                               
  Representative Parnell was not present for the vote.                         
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  Representative Navarre explained Amendment  #2.  [Attachment                 
  of Alaska to  participate in the challenger  learning center                 
  feasibility  study.   This  study  would provide  a computer                 
  program  and would  establish a  learning center  addressing                 
  interests in space industry technology.  He pointed out that                 
  Kenai had been listed because the  Mayor of Kenai offered to                 
  donate the land for that purpose.   He agreed that Anchorage                 
  would be a more accessible area.                                             
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  Co-Chair Hanley asked  if there was  a cost associated  with                 
  the  feasibility study.    Representative Navarre  commented                 
  that  a  cost  had  not  yet  been established  although  he                 
  recommended  providing  a cap  limit  to those  costs.   Mr.                 
  Ladner elaborated  that he had spoken to AIDEA regarding the                 
  feasibility study and  that a capital budget  submission has                 
  been completed between Alaska Aerospace and AIDEA.                           
                                                                               
  (Tape Change, HFC 95-100, Side 1).                                           
                                                                               
  Ms.  Ladner reiterated  that this  would be  a good  program                 
  resulting in positive impacts on children who use the center                 
  in the  math and science  areas.  Mr.  Ladner noted  that he                 
  supported Amendment #2.  He added that the cost to engage in                 
  the proposal would be $700 thousand  dollars and would be an                 
  on-going  cost.   Representative  Mulder  asked the  cost to                 
  provide  the feasibility study.  Mr.  Ladner replied that it                 
  had  not yet  been submitted  and  that to  date determining                 
  those  costs  had  been  an   explorative  exercise  of  the                 
  corporation.                                                                 
                                                                               
  Co-Chair Hanley suggested including a regional consideration                 
  on the amendment.  Representative Navarre agreed to amending                 
  the amendment to include  "other locations".  Representative                 
  Navarre  recommended  changing  the  language  in  the lower                 
  section  of the  bill deleting  "one-quarter" and  inserting                 
  "one-half".                                                                  
                                                                               
  Representative  Navarre amended  the amendment  to  Line 17,                 
  changing  the language to  read "(1) one-half  by the Alaska                 
  Aerospace  Development  Corporation  and  AIDEA".   Co-Chair                 
  Hanley  added  a "friendly"  amendment  to the  amendment by                 
  deleting the language on Line 15 "Kenai and".                                
                                                                               
  Representative Navarre MOVED to adopt  the amended Amendment                 
                                                                               
  Representative Mulder MOVED to report CS HB 315 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf,  Kelly,   Kohring,  Mulder,                 
                      Navarre,  Parnell,  Therriault,  Foster,                 
                      Hanley                                                   
       OPPOSED:       Martin                                                   
                                                                               
  Representative Brown was not present for the vote.                           
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  CS  HB  315   (FIN)  was  reported  out  of  Committee  with                 
  "individual recommendations" and with a  zero fiscal note by                 
  the Department  of Commerce  and Economic  Development dated                 
  4/20/95.                                                                     
  HOUSE BILL 269                                                               
                                                                               
       "An Act relating  to credits against certain  taxes for                 
       contributions to  certain public educational  radio and                 
       television networks and stations  and to endowments for                 
       public educational  radio and television  networks; and                 
       providing for an effective date."                                       
                                                                               
  Representative  Navarre   MOVED  to   adopt  Amendment   #3.                 
  [Attachment #3].  He stated that Amendment #3 would add in a                 
  fisheries landing tax while also would change the provisions                 
  to be  taken half  from the  state share  and half  from the                 
  municipality share.   The amendment would also add  a sunset                 
  implemented  at  the end  of  five  years.   There  being NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  THOMAS WRIGHT, STAFF TO REPRESENTATIVE IVAN IVAN, noted that                 
  Representative  Ivan prepared an  amendment which  would add                 
  technical language  to Page  2, Line  30, deleting  the word                 
  "and" which would  make it  consistent with other  chapters.                 
  Representative Grussendorf  MOVED  to  adopt  Amendment  #4.                 
  [Attachment  #4].  There being NO OBJECTION, it was adopted.                 
                                                                               
                                                                               
  Representative Mulder MOVED to report CS HB 269 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal  note.  Representative  Kohring OBJECTED                 
  for purposes of discussion.  He  asked where the funds would                 
  be directed.  Mr. Wright responded that decision would be up                 
  to  the  contributor,  although,  with  the members  on  the                 
  endowment trust there  would be a  strong push to donate  to                 
  that  trust for the interest  in building funds to alleviate                 
  the   State's   responsibility   for  public   broadcasting.                 
  Donations  will  not  be  prohibited  directly  to  specific                 
  stations.                                                                    
                                                                               
  Representative Kohring noted  that the  endowment trust  was                 
  not a State operation or function.  He asked if it was legal                 
  for the State to provide a  tax credit which funds a private                 
  entity.    Mr. Wright  did not  know.   He  recommended that                 
  question  be   directed  to  the   Department  of   Revenue.                 
  Representative Kohring interjected that a precedent could be                 
  established  for  other   private  organization  to  request                 
  funding.                                                                     
                                                                               
  Representative Kohring WITHDREW THE OBJECTION.   There being                 
  NO OBJECTIONS, it so ordered.                                                
                                                                               
                                7                                              
                                                                               
                                                                               
  CS  HB  269 (FIN)  was reported  out  of Committee  with "no                 
  recommendation"  and  with   a  zero  fiscal  note   by  the                 
  Department of Revenue.                                                       
  HOUSE BILL 159                                                               
                                                                               
       "An Act allowing a  person under age 21 to  be arrested                 
       by  a  peace  officer  without  a warrant  for  illegal                 
       possession,   consumption,   or  control   of  alcohol;                 
       relating  to  the offenses  of  driving with  a revoked                 
       license,  driving  while  intoxicated,  or  failure  to                 
       submit  to  a chemical  test  of breath  or  blood; and                 
       providing for an effective date."                                       
                                                                               
  REPRESENTATIVE BRIAN PORTER  testified in support of  HB 159                 
  noting that it would allow the  court the option of ordering                 
  a person to take Antibes or a similar drug as a condition of                 
  parole or probation.  Also, the  bill would require a person                 
  convicted of a felony Driving  While Intoxicated (DWI) to be                 
  evaluated by an alcohol screening  agency before that person                 
  is sentenced.  Additionally, the legislation would allow the                 
  court to impose suspended jail time on a person convicted of                 
  a felony  DWI, who fails  to complete the  alcohol treatment                 
  ordered by the court.   Representative Porter distributed to                 
  Committee  members   a  handout  titled   "Impaired  Driving                 
  Assessment".  [Attachment #5].                                               
                                                                               
  Representative Porter  emphasized  that  the  most  frequent                 
  violent crime  in the  country is  drunk driving.   A  study                 
  published  by the  Alaska Department  of Transportation  and                 
  Public Facilities (DOTPF)  stated that alcohol was  a factor                 
  in 982 accidents  statewide in 1993.   He added that  repeat                 
  offenders account  for a  disproportionate  number of  fatal                 
  accidents.  In fatal accidents in which the driver is drunk,                 
  those persons  with a  prior  conviction  for drunk  driving                 
  would be five  times more  likely to be  involved than  that                 
  person with no record.                                                       
                                                                               
  Representative Porter concluded, driving is a privilege, not                 
  a right!  HB 159 would give Alaska one of the toughest drunk                 
  driving statutes  in the  nation and  the legislation  would                 
  send a clear message  that Alaskans will no  longer tolerate                 
  persons who drive drunk.                                                     
                                                                               
  Representative Porter requested that Section #1 which  would                 
  allow a person  under the age 21  to be arrested by  a peace                 
  officer,   without  a   warrant,  for   illegal  possession,                 
  consumption, or control of an alcoholic beverage and Section                 
  ignition interlock device  as a part  of a fine imposed  for                 
  convictions of driving while intoxicated  or refusal to take                 
                                                                               
                                8                                              
                                                                               
                                                                               
  a breath test, to  remain in the legislation if  changes are                 
  made.                                                                        
                                                                               
  MARGO KNUTH, ASSISTANT ATTORNEY  GENERAL, CRIMINAL DIVISION,                 
  DEPARTMENT OF LAW, commented that the current Administration                 
  supports getting tough on drunk drivers, although, she noted                 
  two troublesome sections of the legislation.  The first area                 
  of concern would  be the fiscal  impact.  Felony case  costs                 
  are much  more to  prosecute than misdemeanors.   Each  case                 
  would be required to go to the  grand jury.  Ms. Knuth noted                 
  that there would be 300 to 400 hundred persons each year who                 
  would qualify for DWI treatment.  She added, that because of                 
  felony sanctions,  defendants who  are  accused of  felonies                 
  more often go  to trial  than they would  on a  misdemeanor.                 
  For that reason,  the Department has submitted  fiscal notes                 
  requesting four new positions.                                               
                                                                               
  Ms. Knuth added  that the  legislation would establish  what                 
  sentences should be imposed  for a felony offense.   For the                 
  first felony offense,  the court would impose  a sentence of                 
  (120) one hundred  twenty days,  whereas, for second  felony                 
  offense, the sentence would be (240) two hundred forty days,                 
  and the  third sentence would  be (360) three  hundred sixty                 
  days.   The Legislature  has adopted  presumptive sentencing                 
  for felony cases.   She stressed  that the costs  associated                 
  with the legislation would be significant.                                   
                                                                               
  MIKE  CORHILL,  (TESTIFIED  VIA TELECONFERENCE),  PRESIDENT,                 
  ALASKA  PEACE  OFFICER  ASSOCIATION,  ANCHORAGE,  spoke   in                 
  support of the legislation.  He stated that the Alaska Peace                 
  Officer Association believes  that a harsher way  in dealing                 
  with  drunk  drivers  should be  implemented.    Mr. Corhill                 
  reflected on the seriousness of  the problem and recommended                 
  that the situation be handled criminally.  He thought that a                 
  Class "C" felony  would serve as  a deterrent factor to  the                 
  current crime associated with drinking.                                      
                                                                               
  Representative Martin asked which section of the legislation                 
  would ease  the concerns  for the  Department of  Law.   Ms.                 
  Knuth  stated  that  Section  #7  of  the  bill  contains  a                 
  provision which makes  the third  and subsequent offenses  a                 
  felony.   Sections (1), (a)(b)  & (c), specifies  a sentence                 
  that  is  less  than what  presumptive  sentencing requires.                 
  Representative Martin  asked  if problems  with the  persons                 
  individual  rights  could  occur  in  that  section  of  the                 
  legislation  dealing  with  the  breath  test.    Ms.  Knuth                 
  responded that Alaska was the first  State to specify that a                 
  blood  sample could not  be taken from  someone suspected of                 
  drunk driving.  The courts have allowed, as an  alternative,                 
  the same sanction  as if a person  were found to be  a drunk                 
  driver.  Ms. Knuth pointed out  that law had been challenged                 
  and was upheld.                                                              
                                                                               
                                9                                              
                                                                               
                                                                               
  JERRY   SHRINER,   SPECIAL   ASSISTANT,   OFFICE   OF    THE                 
  COMMISSIONER,  DEPARTMENT OF  CORRECTIONS,  stated that  the                 
  Department  does   not  oppose   the  legislation   although                 
  emphasized that  the fiscal impact would be significant.  To                 
  raise  the offense  from  a misdemeanor  to  a felony  would                 
  require the Department to supervise  and write court reports                 
  on a group  of people  not currently being  supervised.   He                 
  emphasized that  passage  of the  legislation would  require                 
  absolute funding.                                                            
                                                                               
  Representative Martin  asked if  the Department  could refer                 
  the person to a detox center.  Mr. Shriner  advised that the                 
  Department of Corrections  does not have that  flexibility.                  
  Ms.  Knuth  interjected  that there  are  inpatient programs                 
  which count the same  as jail time because they  create such                 
  an imposition on the persons freedom.                                        
                                                                               
  (Tape Change, HFC 95-100, Side 2).                                           
                                                                               
  LOREN JONES, DIRECTOR, DIVISION OF  ALCOHOLISM & DRUG ABUSE,                 
  DEPARTMENT OF HEALTH  AND SOCIAL  SERVICES, stated that  the                 
  Department  had concerns  with Section  #7.  He  pointed out                 
  that as part of the imposition  of sentence, the court would                 
  be  allowed  to order,  as a  condition  of parole,  that an                 
  individual  take a drug or combination  of drugs which would                 
  then  prevent the consumption of alcohol.  He explained that                 
  not  everyone  would  be physically  capable  of  taking the                 
  recommended drug Antibuse.  Research has shown that the drug                 
  only works well when the client  is monitored in a treatment                 
  program.                                                                     
                                                                               
  DEL SMITH, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,                 
  noted that the Department would be  supportive of any effort                 
  to remove drunken drivers off the highways, although pointed                 
  out the fiscal  impact costs  associated with the  potential                 
  jail sentences, resulting in court trial overtime.                           
                                                                               
  Representative   Brown   asked   if  the   current   planned                 
  enhancements would address information  resulting from prior                 
  DWI's.   Ms. Knuth  replied that  it would  be difficult  to                 
  determine which  DWI offense would  be for the  offense that                 
  person committed in determining sentencing.                                  
                                                                               
  Representative  Brown inquired  if the  $1.8 million  dollar                 
  fiscal impact would  equal the benefit in safety provided by                 
  the legislation.  Mr. Smith advised that it is important for                 
  public safety to get drunk drivers off the road.  Discussion                 
  followed among Committee  members regarding the fiscal  cost                 
  and the safety  that would  be potentially provided  through                 
  the legislation.                                                             
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  Representative Martin MOVED to report CS HB 159 (JUD) out of                 
  Committee  with individual recommendations.   There being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  CS  HB  159 (JUD)  was reported  out  of Committee  with "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Administration,  the  Department  of   Public  Safety  dated                 
  3/29/95,  the  Alaska  Court   System  dated  3/29/95,   the                 
  Department  of Corrections dated  3/29/95 and the Department                 
  of Law dated 3/29/95.                                                        
  HOUSE BILL 130                                                               
                                                                               
       "An Act  relating to agency review of public comment on                 
       the  adoption, amendment,  and  repeal of  regulations;                 
       relating to  the examination  of proposed  regulations,                 
       amendments   of   regulations,  and   orders  repealing                 
       regulations  by  the  Administrative Regulation  Review                 
       Committee and the  Department of  Law; relating to  the                 
       submission  to,  and  acceptance  by,  the   lieutenant                 
       governor   of   proposed  regulations,   amendments  of                 
       regulations,  and  orders  repealing  regulations;  and                 
       requiring  agencies  to  make   certain  determinations                 
       before adopting regulations, amendments of regulations,                 
       or orders repealing regulations."                                       
                                                                               
  Representative  Kelly explained HB  130.  He  noted that the                 
  creation  of  regulations heretofore  has  been  carried out                 
  within the bureaus  of state government beyond  the light of                 
  public scrutiny.    He noted  that though  public input  has                 
  always been a part of the  regulation process, the system is                 
  inherently flawed.  Regulations  have the force of law,  but                 
  he thought in our  form of government law must  emanate from                 
  the people through their elected officials.                                  
                                                                               
  Representative  Kelly  continued,  in  the  current  system,                 
  unelected  regulation  writers  have the  last  word  in the                 
  process, not the  people.   HB 130 would  attempt to  remedy                 
  that  by bringing elected  officials back into  the loop and                 
  making them politically  accountable to  the people for  the                 
  regulations that impact their lives.   The legislation would                 
  begin the process of regulatory reform.                                      
                                                                               
  Representative Kelly provided Committee members a  sectional                 
  analysis of the proposed legislation.                                        
                                                                               
  PAM  NEAL,  PRESIDENT,  ALASKA STATE  CHAMBER  OF  COMMERCE,                 
  testified  in  support of  HB  130.   She  pointed  out that                 
  regulatory  reform was  a priority of  the State  Chamber of                 
  Commerce this year.                                                          
                                                                               
  DEBORAH  BEHR,  REGULATIONS  ATTORNEY,  DEPARTMENT  OF  LAW,                 
                                                                               
                               11                                              
                                                                               
                                                                               
  provided  a  review of  HB 130.   She  pointed out  that the                 
  Administration was "neutral"  on the bill, although  the Lt.                 
  Governor's Office is supportive of  legislative reform.  She                 
  noted  that  the  amendment  she  provided  to  the  sponsor                 
  [Attachment #6]  would  address  the  Department's  concerns                 
  regarding the applicability for regulations.  Ms. Behr noted                 
  that the bill would not provide  any dramatic changes to the                 
  current system.  The Governor currently has the authority to                 
  return    regulations    to   the    individual   department                 
  commissioners.  Ms. Behr thought  that the legislation would                 
  well address the cost of compliance.                                         
                                                                               
  Representative Brown asked  how an agency  would be able  to                 
  adopt  regulations  without receiving  public comment.   Ms.                 
  Behr responded that  each department  would meet with  their                 
  individual commissioners and at that time,  the commissioner                 
  would be  briefed.   Following passage  of the  legislation,                 
  those meetings would be mandated.                                            
                                                                               
  (Tape Change, HFC 95-101, Side 1).                                           
                                                                               
  DEENA HENKINS, SECTION CHIEF, DRINKING WATER AND WASTEWATER,                 
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that the                 
  Department  has  a  great deal  of  experience  in compiling                 
  comments and providing a written response to those comments.                 
  A  number of  standards  are covered  by the  federal public                 
  participation  in  regulations   which  requires  a  written                 
  response  to comments.  She  indicated that depending on the                 
  complexity and controversy of  the regulations, the  process                 
  would  range in cost  from several  thousand dollars  to ten                 
  thousand dollars.   The process also can  take a substantial                 
  amount of  time to compile  which would then  cause problems                 
  meeting deadlines.                                                           
                                                                               
  JOHN  LINDBACK, CHIEF OF STAFF, OFFICE  OF THE LT. GOVERNOR,                 
  reiterated  that   the  Administration  is  neutral  on  the                 
  legislation,  and  would  look  forward  to   including  the                 
  legislation with  other regulatory  reform bills  which have                 
  been   proposed   this   session.     He   added   that  the                 
  Administration is interested in  the regulatory reform, thus                 
  building a consensus to the process.                                         
                                                                               
  The Lt. Governor  has indicated  that the legislation  would                 
  reflect  how  public  perception  currently  exists  on  the                 
  process.  He pointed  out that most people assume  that this                 
  power  is  current law.    Mr. Lindback  then  addressed the                 
  fiscal notes.   He  enumerated that  amendments to  the bill                 
  most often  have a cost associated with them.  He asked that                 
  the fiscal  notes from  each agency  adequately reflect  the                 
  action of the Legislature.                                                   
                                                                               
  Representative Brown asked the  amount of time needed  for a                 
                                                                               
                               12                                              
                                                                               
                                                                               
  review.  Mr.  Lindback agreed that implementation could be a                 
  potential problem.  He thought that  it would work better if                 
  a  position   was  assigned   specifically  to   follow  the                 
  regulations.  That  position would be responsible  to follow                 
  all regulations  throughout the  legislature and  know their                 
  impact during that process.                                                  
                                                                               
  Representative Mulder asked if there was any portion  of the                 
  legislation that the Administration found objectional.   Mr.                 
  Lindback reiterated  that the Administration was  neutral on                 
  the legislation.   Representative Kohring  asked what  would                 
  happen if  a  regulation was  turned down  by the  Governor.                 
  Representative Kelly explained  that then the  comments from                 
  the Legislative Review  Committee would go to  the Governor.                 
  Under  the  proposed  legislation,  the  Legislative  Review                 
  Committee would be brought into the loop sooner.                             
                                                                               
  Representative  Kelly  responded  to Representative  Brown's                 
  inquiry about the intention to cost.  He added that industry                 
  has requested for regulation writers to make a determination                 
  of the cost for compliance.  He indicated that would be very                 
  expensive and that  the intention during the  public process                 
  period, was  to have the regulation writers address the cost                 
  of  those  regulations.   He noted  that  he would  prefer a                 
  complete  "cost of  analysis"  for the  regulations although                 
  stated that resources are limited.                                           
                                                                               
  Representative  Brown  asked how  the language  would affect                 
  each department's ability to raise their fees.  Mr. Lindback                 
  acknowledged  that the legislation  would clarify that there                 
  would be  a cost  to  each private  person.   Representative                 
  Brown  voiced  her concerns  regarding  the cost  versus the                 
  benefits of the legislation.                                                 
                                                                               
  BRUCE CAMPBELL, STAFF, REPRESENTATIVE PETE KELLY,  commented                 
  that  the  legislation's  intention was  focused  on  how to                 
  assist the agencies and provide them with guidance.  Cost is                 
  an area in which the agency  and staff have little knowledge                 
  in the  private sector.   They  are aware  of the  statutory                 
  guidance regarding  their benefits although the  cost issues                 
  are of the most concern to those that accrue them.                           
                                                                               
  ELMER,   LINDSTROM,   SPECIAL  ASSISTANT,   OFFICE   OF  THE                 
  COMMISSIONER, DEPARTMENT  OF  HEALTH  AND  SOCIAL  SERVICES,                 
  stressed that most  regulations result  from the passage  of                 
  new regulations  dealing with  new policy.   He pointed  out                 
  that was not the case for DHSS.  Less than one  third of the                 
  regulatory packages  developed by  that  Department are  the                 
  result of new  legislation.  A  majority of the  regulations                 
  come from an ongoing  review.  More importantly, over  time,                 
  then result from  regulations which are necessary  as budget                 
  actions  taken  by the  executive  or legislative  branch of                 
                                                                               
                               13                                              
                                                                               
                                                                               
  government.  He  thought that the  new provisions would  not                 
  help in  alleviating  the frustrations  resulting  from  the                 
  types  of   regulations  most  often  experienced   in  that                 
  Department.                                                                  
                                                                               
  Representative  Kohring  observed  that  Mr.  Lindstrom  had                 
  pointed  out  that the  majority  of DHSS's  regulations are                 
  drawn up outside the legislative process.  He added that the                 
  proposed legislation would alleviate that in the future.                     
                                                                               
  HB 130 was HELD in Committee for further consideration.                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:30 P.M.                                           
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 26, 1995                                        
                            1:50 P.M.                                          
                                                                               
  TAPE HFC 95 -  99, Side 2, #000 - end.                                       
  TAPE HFC 95 - 100, Side 1, #000 - end.                                       
  TAPE HFC 95 - 100, Side 2, #000 - end.                                       
  TAPE HFC 95 - 101, Side 1, #000 - #486.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House  Finance Committee                 
  meeting to order at 1:50 P.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Co-Chair Foster               Representative Martin                          
  Representative Mulder         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Kelly                                                         
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  H.   Pat  Ladner,   Executive  Director,   Alaska  Aerospace                 
  Development  Corporation,  Anchorage;  Arliss  Sturgulewski,                 
  (Testified via Teleconference), Interim  Executive Director,                 
  Alaska  Science &  Technology Foundation,  Anchorage; Thomas                 
  Wright, Staff  to Representative  Ivan Ivan;  Representative                 
  Brian Porter; Del Smith,  Deputy Commissioner, Department of                 
  Public  Safety;  Margo  Knuth, Assistant  Attorney  General,                 
  Criminal Division, Department of Law; Jerry Shriner, Special                 
  Assistant,  Office   of  the  Commissioner,   Department  of                 
  Corrections; Loren Jones, Director, Division of Alcoholism &                 
  Drug Abuse, Department  of Health  and Social Services;  Pam                 
                                                                               
                               14                                              
                                                                               
                                                                               
  Neal, President, Alaska State  Chamber of Commerce;  Deborah                 
  Behr,  Regulations   Attorney,  Department  of   Law;  Deena                 
  Henkins,  Section   Chief,  Drinking  Water   &  Wastewater,                 
  Department  of  Environmental Conservation;  Bruce Campbell,                 
  Staff to Representative Pete Kelly;  John Lindback, Chief of                 
  Staff, Office of the Lt.  Governor; Elmer Lindstrom, Special                 
  Assistant  to  the Commissioner,  Department  of  Health and                 
  Social    Services;    Mike    Corhill,    (Testified    via                 
  teleconference),    President,    Alaska    Peace    Officer                 
  Association, Anchorage.                                                      
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 315    An Act relating to the  financing of technological                 
            developments by public  corporations of the state;                 
            and relating to the financing of the Kodiak launch                 
            complex,  the  Fairbanks satellite  ground station                 
            space  park,  and  a  low-rank  coal  water   fuel                 
            technology project.                                                
                                                                               
            CS HB 315 (FIN) was reported out of Committee with                 
            "individual  recommendations"  and  with   a  zero                 
            fiscal note  by  the Department  of  Commerce  and                 
            Economic Development dated 4/20/95.                                
                                                                               
  HB 269    An Act  relating to credits against  certain taxes                 
            for  contributions  to certain  public educational                 
            radio and television networks and  stations and to                 
            endowments  for  public   educational  radio   and                 
            television   networks;   and   providing  for   an                 
            effective date.                                                    
                                                                               
            CS HB 269 (FIN) was reported out of Committee with                 
            a "no recommendation" and with  a zero fiscal note                 
            by the Department of Revenue dated 4/3/95.                         
                                                                               
  HB 159    An Act  allowing  a  person under  age  21  to  be                 
            arrested by a peace officer  without a warrant for                 
            illegal  possession,  consumption,  or control  of                 
            alcohol; relating to the  offenses of driving with                 
            a revoked  license, driving while  intoxicated, or                 
            failure to submit to a  chemical test of breath or                 
            blood; and providing for an effective date.                        
                                                                               
            CS HB 159 (JUD) was reported out of Committee with                 
            a "no recommendation" and with fiscal notes by the                 
            Department  of  Administration, the  Department of                 
            Public  Safety  dated  3/29/95, the  Alaska  Court                 
            System   dated   3/29/95,   the    Department   of                 
            Corrections dated  3/29/95 and  the Department  of                 
            Law dated 3/29/95.                                                 
                                                                               
                                                                               
                               15                                              
                                                                               
                                                                               
  HB 130    An Act relating to agency review of public comment                 
            on  the   adoption,  amendment,   and  repeal   of                 
            regulations;  relating  to   the  examination   of                 
            proposed regulations,  amendments of  regulations,                 
            and   orders   repealing   regulations    by   the                 
            Administrative Regulation Review Committee and the                 
            Department of Law; relating to  the submission to,                 
            and acceptance  by,  the  lieutenant  governor  of                 
            proposed regulations,  amendments of  regulations,                 
            and  orders  repealing regulations;  and requiring                 
            agencies  to  make  certain determinations  before                 
            adopting regulations,  amendments of  regulations,                 
            or orders repealing regulations.                                   
                                                                               
            HB  130   was  HELD   in  Committee  for   further                 
            consideration.                                                     
                                                                               
  HOUSE BILL 315                                                               
                                                                               
       "An  Act  relating to  the  financing of  technological                 
       developments by public  corporations of the state;  and                 
       relating to the financing of the Kodiak launch complex,                 
       the Fairbanks satellite ground station space  park, and                 
       a low-rank coal water fuel technology project."                         
                                                                               
  ARLISS STURGULEWSKI, (TESTIFIED VIA TELECONFERENCE), INTERIM                 
  EXECUTIVE DIRECTOR, ALASKA  SCIENCE & TECHNOLOGY FOUNDATION,                 
  ANCHORAGE,  provided  Committee  members  with a  memorandum                 
  dated 4/26/95 regarding the "Budget Information  Requested".                 
  [Attachment #1].  She offered  to answer questions from  the                 
  Committee.                                                                   
                                                                               
  Representative Navarre  questioned how  the interest  of the                 
  fund  would be  protected.  Representative  Brown referenced                 
  Section #6 and  asked if award  money would result from  the                 
  interest of  the  foundation or  from  the principle.    Ms.                 
  Sturgulewski explained  that  the coal  water fuel  proposal                 
  would be phased over a three  year period originating from a                 
  grant line.   If  Phase 2  of the  project is  accepted, the                 
  first payment would be made this fiscal year.                                
                                                                               
  Ms. Sturgulewski referenced Attachment #1, pointing out that                 
  the analysis would remove the University Agriculture Station                 
  and the  Aerospace Development Corporation.   Representative                 
  Brown questioned why  the earnings  listed on Attachment  #1                 
  were  greater   without  the   inclusion  of   coal.     Ms.                 
  Sturgulewski indicated  that those  earning would  amount to                 
  $7.2   million  dollars.      Discussion  followed   between                 
  Representative  Brown  and  Ms.  Sturgulewski regarding  the                 
  estimated earning reserve payments.  Representative  Navarre                 
  recommended  removing  the  agriculture component  and  then                 
  focusing  the  availability  of that  grant  money  to other                 
                                                                               
                               16                                              
                                                                               
                                                                               
  projects.                                                                    
                                                                               
  Representative Martin  thought that Business  and Industrial                 
  Development Corporations  and Organizations  (BIDCO) made  a                 
  commitment  to support  the  Alaska  Science and  Technology                 
  Foundation.  Ms. Sturgulewski responded that a BIDCO package                 
  has been submitted.   The return should be available  on May                 
  15th, 1995.                                                                  
  Representative  Martin  asked  how  many  projects would  be                 
  eliminated  with   the  advance   of  aerospace.     Senator                 
  Sturgulewski replied that aerospace would move forward  only                 
  if appropriate funding  was available.  She  emphasized that                 
  this was not  an appropriation bill.   Representative Martin                 
  stressed his  concerns with  future complications  resulting                 
  from the legislation.                                                        
                                                                               
  Ms.  Sturgulewski responded  that  the foundation  currently                 
  handles  many small grants  and that the  board of directors                 
  will  continue  to  serve  the  needs  of  the  small  grant                 
  community.                                                                   
                                                                               
  Ms. Sturgulewski  explained that  the cold  water fuels  and                 
  royalties plan  bids should arrive soon.  The repayments for                 
  the  Science  and  Tech  Foundation  and the  Department  of                 
  Education will  come from royalties  received on  commercial                 
  sales and  from licensing  of that  technology.   Repayments                 
  will  then become a  portion of the  negotiation, which must                 
  begin in order that Phase 2 can start.                                       
                                                                               
  Representative  Brown  asked  if  satellite  facilities  are                 
  commercially viable.  Ms. Sturgulewski stated that there are                 
  private interests from  business and that it  is anticipated                 
  that  the  operation  would allow  for  significant  private                 
  sector information.   She added that  the investment of  the                 
  project is under  review from Alaska Industrial  Development                 
  Export Authority  (AIDEA).  Representative  Brown questioned                 
  if that was the normal sequence of events in obtaining AIDEA                 
  bonding.                                                                     
                                                                               
  H.  PAT   LADNER,  EXECUTIVE   DIRECTOR,  ALASKA   AEROSPACE                 
  DEVELOPMENT  CORPORATION  (AADC), ANCHORAGE,  explained that                 
  was an  appropriate procedure  and noted  that the  proposed                 
  legislation would  provide Alaska  the opportunity to  enter                 
  into a new industry without placing money at risk.                           
                                                                               
  Representative   Martin   MOVED  to   adopt   Amendment  #1.                 
  Representative  Mulder  OBJECTED.     Representative  Martin                 
  stressed that free  enterprise should  "pay" their own  way.                 
  Representative Kelly advised  that the legislation would  be                 
  for the benefit of  the entire State, agreeing that  the 50%                 
  application  would  not   be  appropriate.    Representative                 
  Therriault stated that  fees would be  paid for by the  debt                 
                                                                               
                               17                                              
                                                                               
                                                                               
  service, and noted that the  enterprise would be responsible                 
  for more than  50%.  Representative Mulder  added that there                 
  would be a financial return through AIDEA and said that this                 
  would be a good project.                                                     
                                                                               
  Representative  Martin  emphasized  that the  Kodiak  launch                 
  complex, the Fairbanks  satellite ground space park  and the                 
  low rank  coal  water  fuel  technology should  be  able  to                 
  accumulate the remaining funds through a private match.                      
                                                                               
  Ms.   Sturgulewski   responded  to   Representative  Brown's                 
  questioned  regarding the  coal water  fuel project  stating                 
  that the major  amount of money  would be received from  the                 
  U.S. Department  of Energy and  would not be  private funds.                 
  The Alaska Science &  Technology Foundation will  contribute                 
  $3.7  million  dollars  and the  Department  of  Energy will                 
  contribute $17 million dollars for  the demonstration of the                 
  project.  She pointed out that the language of the amendment                 
  would make receiving that contribution difficult.                            
                                                                               
  Representative Brown referenced  a letter from Mr.  Snell at                 
  AIDEA dated  3/7/95 explaining the anticipated $10.2 million                 
  to be received from the federal government and $8 million to                 
  be received  from the consortium  members in order  to begin                 
  Phase 2.  The  intention would be  for the $4 million  state                 
  dollars  to  be  spent  up-front  in  order  to provide  the                 
  preliminary  study  before  the other  participants  provide                 
  their money.   Ms. Sturgulewski stated  that all phases  are                 
  being worked on  together, while indicating that  her agency                 
  has clarified that the pay back  project would need to occur                 
  in the  first three  years.   Ms.  Sturgulewski stated  that                 
  Phase 1 has  been completed.  Phase  2 has not  been entered                 
  into yet.  Representative  Brown advised that Representative                 
  Martin's  amendment would not conflict with the foundation's                 
  intention.  Ms. Sturgulewski disagreed stating that it would                 
  conflict with the amount of money originating from the grant                 
  and the Department of Energy.                                                
                                                                               
  Representative Brown  asked if the  legislation would affect                 
  the Healy  Claim Coal  Project.   Ms. Sturgulewski  remarked                 
  that  the   legislation  would   affect   the  tide   waters                 
  demonstration project on the  beach.  There are a  number of                 
  ownerships involved with the coal fields and she added, that                 
  group  was  interested  and would  be  participating  in the                 
  project.                                                                     
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Martin                                            
       OPPOSED:       Grussendorf,  Kelly,   Kohring,  Mulder,                 
                      Navarre, Therriault, Hanley, Foster                      
                                                                               
                                                                               
                               18                                              
                                                                               
                                                                               
  Representative Parnell was not present for the vote.                         
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  Representative Navarre explained Amendment #2.   [Attachment                 
  of Alaska to  participate in the challenger  learning center                 
  feasibility  study.   This  study  would provide  a computer                 
  program and  would  establish a  learning center  addressing                 
  interests in space industry technology.  He pointed out that                 
  Kenai had been listed because the  Mayor of Kenai offered to                 
  donate the land for that purpose.   He agreed that Anchorage                 
  would be a more accessible area.                                             
                                                                               
  Co-Chair Hanley  asked if there  was a cost  associated with                 
  the  feasibility  study.   Representative  Navarre commented                 
  that  a  cost  had  not  yet  been  established although  he                 
  recommended providing  a  cap limit  to  those costs.    Mr.                 
  Ladner elaborated that  he had spoken to AIDEA regarding the                 
  feasibility study and  that a capital budget  submission has                 
  been completed between Alaska Aerospace and AIDEA.                           
                                                                               
  (Tape Change, HFC 95-100, Side 1).                                           
                                                                               
  Ms.  Ladner  reiterated that  this would  be a  good program                 
  resulting in positive impacts on children who use the center                 
  in the math  and science  areas.  Mr.  Ladner noted that  he                 
  supported Amendment #2.  He added that the cost to engage in                 
  the proposal would be $700 thousand  dollars and would be an                 
  on-going  cost.   Representative  Mulder  asked the  cost to                 
  provide the  feasibility study.  Mr. Ladner  replied that it                 
  had not  yet been  submitted and  that  to date  determining                 
  those  costs  had  been  an   explorative  exercise  of  the                 
  corporation.                                                                 
                                                                               
  Co-Chair Hanley suggested including a regional consideration                 
  on the amendment.  Representative Navarre agreed to amending                 
  the amendment to include  "other locations".  Representative                 
  Navarre  recommended  changing  the  language  in  the lower                 
  section  of the  bill deleting  "one-quarter" and  inserting                 
  "one-half".                                                                  
                                                                               
  Representative  Navarre amended  the amendment  to  Line 17,                 
  changing the  language to read  "(1) one-half by  the Alaska                 
  Aerospace  Development  Corporation  and AIDEA".    Co-Chair                 
  Hanley  added  a "friendly"  amendment  to the  amendment by                 
  deleting the language on Line 15 "Kenai and".                                
                                                                               
  Representative Navarre MOVED to adopt  the amended Amendment                 
                                                                               
  Representative Mulder MOVED to report CS HB 315 (FIN) out of                 
                                                                               
                               19                                              
                                                                               
                                                                               
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf,  Kelly,   Kohring,  Mulder,                 
                      Navarre,  Parnell,  Therriault,  Foster,                 
                      Hanley                                                   
       OPPOSED:       Martin                                                   
                                                                               
  Representative Brown was not present for the vote.                           
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  CS  HB  315  (FIN)  was   reported  out  of  Committee  with                 
  "individual recommendations" and with a  zero fiscal note by                 
  the Department  of Commerce  and Economic  Development dated                 
  4/20/95.                                                                     
                                                                               
  HOUSE BILL 269                                                               
                                                                               
       "An Act relating  to credits against certain  taxes for                 
       contributions to  certain public educational  radio and                 
       television networks and stations  and to endowments for                 
       public educational radio  and television networks;  and                 
       providing for an effective date."                                       
                                                                               
  Representative  Navarre   MOVED  to   adopt  Amendment   #3.                 
  [Attachment #3].  He stated that Amendment #3 would add in a                 
  fisheries landing tax while also would change the provisions                 
  to  be taken  half from  the state share  and half  from the                 
  municipality share.  The  amendment would also add a  sunset                 
  implemented  at  the end  of  five  years.   There  being NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  THOMAS WRIGHT, STAFF TO REPRESENTATIVE IVAN IVAN, noted that                 
  Representative  Ivan prepared an  amendment which  would add                 
  technical language  to Page  2, Line  30, deleting  the word                 
  "and" which would  make it  consistent with other  chapters.                 
  Representative  Grussendorf  MOVED  to  adopt Amendment  #4.                 
  [Attachment #4].   There being NO OBJECTION, it was adopted.                 
                                                                               
                                                                               
  Representative Mulder MOVED to report CS HB 269 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.   Representative Kohring  OBJECTED                 
  for purposes of discussion.  He  asked where the funds would                 
  be directed.  Mr. Wright responded that decision would be up                 
  to  the  contributor,  although,  with  the members  on  the                 
  endowment trust there  would be a  strong push to donate  to                 
  that trust for  the interest in building  funds to alleviate                 
  the   State's   responsibility   for  public   broadcasting.                 
                                                                               
                               20                                              
                                                                               
                                                                               
  Donations  will  not  be  prohibited  directly  to  specific                 
  stations.                                                                    
                                                                               
  Representative Kohring  noted that the  endowment trust  was                 
  not a State operation or function.  He asked if it was legal                 
  for the State to provide a  tax credit which funds a private                 
  entity.    Mr. Wright  did not  know.   He  recommended that                 
  question  be   directed  to   the  Department  of   Revenue.                 
  Representative Kohring interjected that a precedent could be                 
  established  for  other  private   organization  to  request                 
  funding.                                                                     
                                                                               
  Representative  Kohring WITHDREW THE OBJECTION.  There being                 
  NO OBJECTIONS, it so ordered.                                                
                                                                               
  CS  HB  269 (FIN)  was reported  out  of Committee  with "no                 
  recommendation"  and  with   a  zero  fiscal  note   by  the                 
  Department of Revenue.                                                       
                                                                               
  HOUSE BILL 159                                                               
                                                                               
       "An Act allowing a  person under age 21 to  be arrested                 
       by  a  peace  officer  without  a warrant  for  illegal                 
       possession,   consumption,   or  control   of  alcohol;                 
       relating  to  the offenses  of  driving with  a revoked                 
       license,  driving  while  intoxicated,  or  failure  to                 
       submit to  a  chemical test  of  breath or  blood;  and                 
       providing for an effective date."                                       
                                                                               
  REPRESENTATIVE BRIAN PORTER  testified in support of  HB 159                 
  noting that it would allow the  court the option of ordering                 
  a person to take Antibes or a similar drug as a condition of                 
  parole or probation.  Also, the  bill would require a person                 
  convicted of a felony Driving While  Intoxicated (DWI) to be                 
  evaluated by an alcohol screening  agency before that person                 
  is sentenced.  Additionally, the legislation would allow the                 
  court to impose suspended jail time on a person convicted of                 
  a felony  DWI, who fails  to complete the  alcohol treatment                 
  ordered by the court.   Representative Porter distributed to                 
  Committee  members  a   handout  titled  "Impaired   Driving                 
  Assessment".  [Attachment #5].                                               
                                                                               
  Representative  Porter  emphasized  that  the most  frequent                 
  violent crime  in the  country is  drunk driving.   A  study                 
  published  by the  Alaska Department  of Transportation  and                 
  Public Facilities (DOTPF)  stated that alcohol was  a factor                 
  in 982 accidents  statewide in 1993.   He added that  repeat                 
  offenders account  for a  disproportionate  number of  fatal                 
  accidents.  In fatal accidents in which the driver is drunk,                 
  those  persons with  a prior   conviction for  drunk driving                 
  would be five  times more  likely to be  involved than  that                 
  person with no record.                                                       
                                                                               
                               21                                              
                                                                               
                                                                               
  Representative Porter concluded, driving is a privilege, not                 
  a right!  HB 159 would give Alaska one of the toughest drunk                 
  driving statutes  in the  nation and  the legislation  would                 
  send a clear message  that Alaskans will no longer  tolerate                 
  persons who drive drunk.                                                     
                                                                               
  Representative Porter  requested that Section #1 which would                 
  allow a person  under the age 21  to be arrested by  a peace                 
  officer,  without   a  warrant,   for  illegal   possession,                 
  consumption, or control of an alcoholic beverage and Section                 
  ignition interlock device  as a part  of a fine imposed  for                 
  convictions of driving while intoxicated  or refusal to take                 
  a breath test, to  remain in the legislation if  changes are                 
  made.                                                                        
                                                                               
  MARGO KNUTH, ASSISTANT  ATTORNEY GENERAL, CRIMINAL DIVISION,                 
  DEPARTMENT OF LAW, commented that the current Administration                 
  supports getting tough on drunk drivers, although, she noted                 
  two troublesome sections of the legislation.  The first area                 
  of concern would  be the fiscal  impact.  Felony case  costs                 
  are  much more  to prosecute  than misdemeanors.   Each case                 
  would be required to go to the grand jury.  Ms.  Knuth noted                 
  that there would be 300 to 400 hundred persons each year who                 
  would qualify for DWI treatment.  She added, that because of                 
  felony sanctions,  defendants who  are  accused of  felonies                 
  more often go  to trial  than they would  on a  misdemeanor.                 
  For that reason,  the Department has submitted  fiscal notes                 
  requesting four new positions.                                               
                                                                               
  Ms. Knuth added  that the  legislation would establish  what                 
  sentences should be imposed  for a felony offense.   For the                 
  first felony offense, the  court would impose a  sentence of                 
  (120) one hundred  twenty days,  whereas, for second  felony                 
  offense, the sentence would be (240) two hundred forty days,                 
  and the third  sentence would be  (360) three hundred  sixty                 
  days.   The Legislature  has adopted  presumptive sentencing                 
  for  felony cases.   She stressed that  the costs associated                 
  with the legislation would be significant.                                   
                                                                               
  MIKE  CORHILL,  (TESTIFIED  VIA TELECONFERENCE),  PRESIDENT,                 
  ALASKA  PEACE  OFFICER  ASSOCIATION,   ANCHORAGE,  spoke  in                 
  support of the legislation.  He stated that the Alaska Peace                 
  Officer Association believes  that a harsher way  in dealing                 
  with  drunk  drivers  should be  implemented.    Mr. Corhill                 
  reflected on the seriousness of  the problem and recommended                 
  that the situation be handled criminally.  He thought that a                 
  Class "C" felony  would serve as  a deterrent factor to  the                 
  current crime associated with drinking.                                      
                                                                               
  Representative Martin asked which section of the legislation                 
                                                                               
                               22                                              
                                                                               
                                                                               
  would ease  the concerns  for the  Department of  Law.   Ms.                 
  Knuth  stated  that  Section  #7  of  the  bill  contains  a                 
  provision which makes  the third  and subsequent offenses  a                 
  felony.  Sections  (1), (a)(b) &  (c), specifies a  sentence                 
  that  is less  than  what  presumptive sentencing  requires.                 
  Representative Martin  asked if  problems  with the  persons                 
  individual  rights  could  occur  in  that  section  of  the                 
  legislation  dealing  with  the  breath  test.    Ms.  Knuth                 
  responded that Alaska was the first  State to specify that a                 
  blood sample could  not be taken  from someone suspected  of                 
  drunk driving.  The courts  have allowed, as an alternative,                 
  the same sanction  as if a person  were found to be  a drunk                 
  driver.  Ms. Knuth pointed out  that law had been challenged                 
  and was upheld.                                                              
                                                                               
  JERRY   SHRINER,   SPECIAL   ASSISTANT,    OFFICE   OF   THE                 
  COMMISSIONER,  DEPARTMENT OF  CORRECTIONS,  stated that  the                 
  Department   does  not   oppose  the   legislation  although                 
  emphasized that the  fiscal impact would be significant.  To                 
  raise  the offense  from  a misdemeanor  to  a felony  would                 
  require the Department to supervise  and write court reports                 
  on a group  of people  not currently being  supervised.   He                 
  emphasized that  passage  of the  legislation would  require                 
  absolute funding.                                                            
                                                                               
  Representative Martin  asked if  the Department  could refer                 
  the person to a  detox center.  Mr. Shriner advised that the                 
  Department of Corrections  does not have that  flexibility.                  
  Ms.  Knuth  interjected  that there  are  inpatient programs                 
  which count the same  as jail time because they  create such                 
  an imposition on the persons freedom.                                        
                                                                               
  (Tape Change, HFC 95-100, Side 2).                                           
                                                                               
  LOREN JONES, DIRECTOR, DIVISION OF  ALCOHOLISM & DRUG ABUSE,                 
  DEPARTMENT OF HEALTH  AND SOCIAL  SERVICES, stated that  the                 
  Department had  concerns with  Section #7.   He pointed  out                 
  that as part of the imposition  of sentence, the court would                 
  be  allowed  to order,  as a  condition  of parole,  that an                 
  individual take  a drug or combination of  drugs which would                 
  then prevent  the consumption of alcohol.  He explained that                 
  not  everyone  would  be physically  capable  of  taking the                 
  recommended drug Antibuse.  Research has shown that the drug                 
  only works well when the client  is monitored in a treatment                 
  program.                                                                     
                                                                               
  DEL SMITH, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,                 
  noted that the Department would be supportive  of any effort                 
  to remove drunken drivers off the highways, although pointed                 
  out the fiscal  impact costs  associated with the  potential                 
  jail sentences, resulting in court trial overtime.                           
                                                                               
                                                                               
                               23                                              
                                                                               
                                                                               
  Representative   Brown   asked   if   the  current   planned                 
  enhancements would address information resulting from  prior                 
  DWI's.   Ms. Knuth  replied that  it would  be difficult  to                 
  determine which DWI  offense would be  for the offense  that                 
  person committed in determining sentencing.                                  
                                                                               
  Representative  Brown  inquired if  the $1.8  million dollar                 
  fiscal impact would equal the benefit in safety  provided by                 
  the legislation.  Mr. Smith advised that it is important for                 
  public safety to get drunk drivers off the road.  Discussion                 
  followed among  Committee members regarding  the fiscal cost                 
  and the safety  that would  be potentially provided  through                 
  the legislation.                                                             
                                                                               
  Representative Martin MOVED to report CS HB 159 (JUD) out of                 
  Committee  with individual recommendations.   There being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  CS  HB  159 (JUD)  was reported  out  of Committee  with "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Administration,  the  Department   of  Public  Safety  dated                 
  3/29/95,  the  Alaska  Court   System  dated  3/29/95,   the                 
  Department  of Corrections dated  3/29/95 and the Department                 
  of Law dated 3/29/95.                                                        
                                                                               
  HOUSE BILL 130                                                               
                                                                               
       "An Act relating  to agency review of public comment on                 
       the  adoption, amendment,  and  repeal of  regulations;                 
       relating  to the  examination of  proposed regulations,                 
       amendments   of   regulations,  and   orders  repealing                 
       regulations  by  the  Administrative Regulation  Review                 
       Committee and the  Department of  Law; relating to  the                 
       submission  to,  and  acceptance   by,  the  lieutenant                 
       governor   of   proposed  regulations,   amendments  of                 
       regulations,  and  orders  repealing  regulations;  and                 
       requiring  agencies  to  make   certain  determinations                 
       before adopting regulations, amendments of regulations,                 
       or orders repealing regulations."                                       
                                                                               
  Representative Kelly  explained HB 130.   He noted  that the                 
  creation  of  regulations heretofore  has  been  carried out                 
  within the bureaus of  state government beyond the  light of                 
  public  scrutiny.   He  noted that  though public  input has                 
  always been a part of the  regulation process, the system is                 
  inherently  flawed.  Regulations have  the force of law, but                 
  he thought in our  form of government law must  emanate from                 
  the people through their elected officials.                                  
                                                                               
  Representative  Kelly  continued,  in  the  current  system,                 
  unelected  regulation  writers  have the  last  word  in the                 
  process, not the  people.   HB 130 would  attempt to  remedy                 
                                                                               
                               24                                              
                                                                               
                                                                               
  that by bringing  elected officials back  into the loop  and                 
  making them politically  accountable to  the people for  the                 
  regulations that impact their lives.   The legislation would                 
  begin the process of regulatory reform.                                      
                                                                               
  Representative Kelly provided  Committee members a sectional                 
  analysis of the proposed legislation.                                        
                                                                               
  PAM  NEAL,  PRESIDENT,  ALASKA  STATE  CHAMBER OF  COMMERCE,                 
  testified  in  support of  HB  130.   She  pointed  out that                 
  regulatory reform  was a  priority of  the State  Chamber of                 
  Commerce this year.                                                          
                                                                               
  DEBORAH  BEHR,  REGULATIONS  ATTORNEY,  DEPARTMENT  OF  LAW,                 
  provided  a review  of HB  130.   She  pointed out  that the                 
  Administration was "neutral"  on the bill, although  the Lt.                 
  Governor's Office is supportive of  legislative reform.  She                 
  noted  that  the  amendment  she  provided  to  the  sponsor                 
  [Attachment  #6]  would  address  the Department's  concerns                 
  regarding the applicability for regulations.  Ms. Behr noted                 
  that the bill would not provide  any dramatic changes to the                 
  current system.  The Governor currently has the authority to                 
  return    regulations    to   the    individual   department                 
  commissioners.  Ms. Behr thought  that the legislation would                 
  well address the cost of compliance.                                         
                                                                               
  Representative  Brown asked how  an agency would  be able to                 
  adopt  regulations  without receiving  public comment.   Ms.                 
  Behr responded that  each department  would meet with  their                 
  individual commissioners and at that time,  the commissioner                 
  would be  briefed.   Following passage  of the  legislation,                 
  those meetings would be mandated.                                            
                                                                               
  (Tape Change, HFC 95-101, Side 1).                                           
                                                                               
  DEENA HENKINS, SECTION CHIEF, DRINKING WATER AND WASTEWATER,                 
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION, explained that the                 
  Department  has  a  great deal  of  experience  in compiling                 
  comments and providing a written response to those comments.                 
  A number  of standards  are  covered by  the federal  public                 
  participation  in  regulations  which  requires  a   written                 
  response to comments.   She indicated that  depending on the                 
  complexity and controversy of  the regulations, the  process                 
  would range  in cost from  several thousand  dollars to  ten                 
  thousand dollars.   The process also can take  a substantial                 
  amount of time  to compile which  would then cause  problems                 
  meeting deadlines.                                                           
                                                                               
  JOHN LINDBACK,  CHIEF OF STAFF, OFFICE OF  THE LT. GOVERNOR,                 
  reiterated  that   the  Administration  is  neutral  on  the                 
  legislation,  and  would  look  forward  to   including  the                 
  legislation with  other regulatory  reform bills  which have                 
                                                                               
                               25                                              
                                                                               
                                                                               
  been   proposed   this   session.     He   added   that  the                 
  Administration is interested in the regulatory  reform, thus                 
  building a consensus to the process.                                         
                                                                               
  The Lt. Governor  has indicated  that the legislation  would                 
  reflect  how  public  perception  currently  exists  on  the                 
  process.  He pointed  out that most people assume  that this                 
  power  is current  law.   Mr.  Lindback  then addressed  the                 
  fiscal notes.   He  enumerated that amendments  to the  bill                 
  most often have  a cost associated with them.  He asked that                 
  the fiscal  notes from  each agency  adequately reflect  the                 
  action of the Legislature.                                                   
                                                                               
  Representative Brown asked the  amount of time needed for  a                 
  review.  Mr. Lindback agreed  that implementation could be a                 
  potential problem.  He thought that  it would work better if                 
  a  position   was  assigned   specifically  to   follow  the                 
  regulations.  That  position would be responsible  to follow                 
  all regulations  throughout the  legislature and  know their                 
  impact during that process.                                                  
                                                                               
  Representative Mulder asked if there was any portion of  the                 
  legislation that the Administration found objectional.   Mr.                 
  Lindback reiterated  that the Administration was  neutral on                 
  the legislation.   Representative Kohring  asked what  would                 
  happen  if a  regulation  was turned  down by  the Governor.                 
  Representative Kelly explained  that then the  comments from                 
  the Legislative Review  Committee would go to  the Governor.                 
  Under  the  proposed  legislation,  the  Legislative  Review                 
  Committee would be brought into the loop sooner.                             
                                                                               
  Representative  Kelly  responded  to Representative  Brown's                 
  inquiry about the intention to cost.  He added that industry                 
  has requested for regulation writers to make a determination                 
  of the cost for compliance.  He indicated that would be very                 
  expensive and that  the intention during the  public process                 
  period, was to  have the regulation writers address the cost                 
  of  those  regulations.   He noted  that  he would  prefer a                 
  complete  "cost of  analysis"  for the  regulations although                 
  stated that resources are limited.                                           
                                                                               
  Representative  Brown  asked how  the language  would affect                 
  each department's ability to raise their fees.  Mr. Lindback                 
  acknowledged  that the legislation  would clarify that there                 
  would  be a  cost to  each  private person.   Representative                 
  Brown  voiced  her concerns  regarding  the cost  versus the                 
  benefits of the legislation.                                                 
                                                                               
  BRUCE CAMPBELL, STAFF, REPRESENTATIVE  PETE KELLY, commented                 
  that  the  legislation's  intention was  focused  on  how to                 
  assist the agencies and provide them with guidance.  Cost is                 
  an area in which the agency  and staff have little knowledge                 
                                                                               
                               26                                              
                                                                               
                                                                               
  in the  private sector.   They  are aware  of the  statutory                 
  guidance  regarding their benefits  although the cost issues                 
  are of the most concern to those that accrue them.                           
                                                                               
  ELMER,   LINDSTROM,  SPECIAL   ASSISTANT,   OFFICE  OF   THE                 
  COMMISSIONER,  DEPARTMENT  OF  HEALTH AND  SOCIAL  SERVICES,                 
  stressed that most  regulations result  from the passage  of                 
  new regulations  dealing with new  policy.   He pointed  out                 
  that was not  the case for DHSS.  Less than one third of the                 
  regulatory  packages developed  by that  Department are  the                 
  result of  new legislation.   A majority of  the regulations                 
  come from an ongoing review.   More importantly, over  time,                 
  then result from  regulations which are necessary  as budget                 
  actions  taken  by the  executive  or legislative  branch of                 
  government.   He thought that  the new provisions  would not                 
  help in  alleviating  the frustrations  resulting  from  the                 
  types  of   regulations  most  often  experienced   in  that                 
  Department.                                                                  
                                                                               
  Representative  Kohring  observed  that  Mr.  Lindstrom  had                 
  pointed  out  that the  majority  of DHSS's  regulations are                 
  drawn up outside the legislative process.  He added that the                 
  proposed legislation would alleviate that in the future.                     
                                                                               
  HB 130 was HELD in Committee for further consideration.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:30 P.M.                                           
                                                                               
                                                                               
                               27                                              

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