Legislature(1995 - 1996)

05/03/1995 08:45 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           MAY 3, 1995                                         
                            8:45 A.M.                                          
                                                                               
  TAPE HFC 95 - 110, Side 2, #000 - end.                                       
  TAPE HFC 95 - 111, Side 1, #000 - end.                                       
  TAPE HFC 95 - 111, Side 2, #000 - #115.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House Finance  Committee                 
  meeting to order at 8:45 A.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                                                                 
                                                                               
  Senator  Mike Miller;  Teresa Sager, Staff,  Senator Miller;                 
  Ron  Swanson,  (Testified  via   teleconference),  Director,                 
  Division  of  Lands,  Department of  Natural  Resources; Joe                 
  Ambrose,  Staff, Senator Robin  Taylor; Bob  Cole, Director,                 
  Division   of   Administrative   Services,   Department   of                 
  Corrections;     David     Vandenberg,     (Testified    via                 
  teleconference),   North   Alaska    Environmental   Center,                 
  Fairbanks; Margo Knuth, Assistant Attorney General, Criminal                 
  Division, Department of Law; Stan Ridgeway, Deputy Director,                 
  Vocational Rehabilitation, Department of Education.                          
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 46     An Act revising the provision of law under which a                 
            minor may be charged, prosecuted, and sentenced as                 
            an adult in the district  court, and adding to the                 
            list  of  offenses  for  which   a  minor  may  be                 
            prosecuted as an adult in the district court.                      
                                                                               
            CS SB 46  (RLS) was reported out of Committee with                 
            "no recommendations" and with a fiscal note by the                 
            Alaska Court System  dated 3/6/95 and  zero fiscal                 
            notes by  the Department  of Administration  dated                 
            3/22/95 and the Department of Law 3/6/95.                          
                                                                               
  SB 93     An  Act  relating to  the  disposal of  state land                 
                                                                               
                                1                                              
                                                                               
                                                                               
            along  the Dalton  Highway; and  providing  for an                 
            effective date.                                                    
                                                                               
            HCS CS  SB 93 (RES) was reported  out of Committee                 
            with  a "do  pass"  recommendation  and with  zero                 
            fiscal notes by  the Department  of Fish and  Game                 
            and  the  Department  of  Natural Resources  dated                 
            2/28/95.                                                           
                                                                               
  SB 117    An Act establishing a statewide independent living                 
            council  and  clarifying  its   relationship  with                 
            existing agencies; and  providing for an effective                 
            date.                                                              
                                                                               
            CS SB 117 (HES) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by the Department of Education dated 3/21/95.                      
                                                                               
  HCR 19    Requesting the Governor  to direct the  Department                 
            of Corrections to establish a  task force to study                 
            current and future department operations.                          
                                                                               
            CS HCR 19 (FIN) was reported out of Committee with                 
            a  "do  pass"  recommendation  and  with  a  House                 
            Finance Committee fiscal note.                                     
  SENATE BILL 93 (RES)                                                         
                                                                               
       "An Act  relating to the  disposal of state  land along                 
       the Dalton  Highway;  and providing  for  an  effective                 
       date."                                                                  
                                                                               
  SENATOR MIKE MILLER testified in support of SB 93 (RES).  He                 
  pointed out that in the last  session the Legislature passed                 
  SB 210 which  provided for  the reauthorization of  existing                 
  leases in three  development nodes along the  Dalton Highway                 
  including  Deadhorse,  Yukon  River  Crossing and  Coldfoot.                 
  Future  non-residential  land  disposal  at  Deadhorse   was                 
  allowed in that legislation.                                                 
                                                                               
  He continued that with the recent  opening of the highway to                 
  public  traffic,  the  need  for   additional  services  has                 
  expanded.    SB 93  would allow  the  State to  proceed with                 
  future non-residential  disposal  in each  of the  remaining                 
  four nodes along the route for development of various public                 
  facilities.  The legislation is structured to allow disposal                 
  only within the identified nodes which have existing pads so                 
  that  orderly development is maintained at regular intervals                 
  along the highway.   He concluded,  as  with any state  land                 
  disposal, all proposed sales  or leases will require a  Land                 
  Use  Plan, subject  to  procedures set  forth  in law  which                 
  provide for thorough public review.                                          
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Brown asked how close Stephens Village was to                 
  the  development  areas.    Senator  Miller  did  not  know.                 
  Representative Brown asked if any of the village areas  were                 
  in opposition to the legislation.   Senator Miller responded                 
  that the  only village which  testified was the  North Slope                 
  Borough and that their concerns have been addressed.                         
                                                                               
  Representative Martin  asked  if the  current lessee's  were                 
  being protected.  Senator Miller  understood that they would                 
  continue to be protected.   He stated that the  Tanana Chief                 
  Conference supported the  legislation.  Representative Brown                 
  asked  about  the  litigation  proceedings  filed  over  the                 
  opening of the Haul  Road.  Senator Miller replied  that the                 
  Supreme Court had ruled in favor of the State.                               
                                                                               
  Representative Brown  inquired  if  public  maintenance  and                 
  safety for the  road use had  been addressed in the  budget.                 
  Senator Miller replied that in opening the road, eligibility                 
  for federal funds would increase.                                            
                                                                               
  TERESA SAGER,  STAFF, SENATOR  MILLER, explained that  since                 
  the decision was made to coordinate efforts, the Departments                 
  of Natural  Resources, Transportation and  Public Facilities                 
  and Public Safety  have been working cooperatively  in order                 
  that  all  public needs  will  be  met.   The  Department of                 
  Transportation and  Public Facilities (DOTPF)  has indicated                 
  that  they  do not  anticipate  more than  an  additional 50                 
  vehicles on the road  per day during the peak  summer months                 
  and  that  they  do  not  intend  to  change  their  current                 
  maintenance plan.                                                            
                                                                               
  Representative Brown asked  the total  expected cost to  the                 
  State.  Ms. Sager pointed out  that the proposed legislation                 
  has zero fiscal notes.   Representative Therriault commented                 
  that the cost of opening the road should not be tied  to the                 
  legislation as the  road is currently open.   Representative                 
  Brown emphasized that  there will be a  cost associated with                 
  developing the area  in order to  make it possible for  more                 
  people to travel the road.                                                   
                                                                               
  DAVID  VANDENBERG,(TESTIFIED   VIA  TELECONFERENCE),   NORTH                 
  ALASKA    ENVIRONMENTAL     CENTER,    FAIRBANKS,     echoed                 
  Representative  Brown's   concern  and  spoke   against  the                 
  proposed  legislation.    He  pointed   out  that  there  is                 
  currently insufficient funding for law enforcement and  that                 
  there have been  long standing objections to  the opening of                 
  the Dalton Highway.  He  projected that SB 93 was  a portion                 
  of  the  adjournment  package.    Representative  Therriault                 
  reiterated that the road  is currently open, which had  been                 
  approved by the court.                                                       
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Representative Navarre asserted that  statewide services are                 
  currently inadequate.  Road maintenance has been underfunded                 
  for many years.  He stressed  that the Legislature should be                 
  prepared to cover future costs  associated with the proposed                 
  legislation.  He  stressed that these  will be new costs  to                 
  the State.    Representative  Navarre  urged  the  Committee                 
  members to recognize that there will  be great fiscal impact                 
  to DOTPF in passage of the bill.                                             
                                                                               
  Representative   Brown   agreed   with   the   comments   of                 
  Representative Navarre  and noted  that there  also had  not                 
  been  a fiscal note  attached for  the Department  of Public                 
  Safety.  She noted that Department  is currently not able to                 
  deal   with   addressing  adequate   service  needs.     The                 
  legislation will  add increased pressure on that Department.                 
                                                                               
                                                                               
  Representative  Brown asked if  not opening the  road was an                 
  option at  this time.   Representative  Therriault explained                 
  that  the court ruled that  if public money  is spent on the                 
  road, it must be open to the public.                                         
                                                                               
  Representative  Navarre  asked  if a  fiscal  note  had been                 
  solicited from DOTPF.   Ms. Sager  advised that one had  not                 
  been requested, noting that there had  been a position paper                 
  provided  by  that  agency  indicating   that  they  do  not                 
  anticipate  fiscal  impact.     She  added  that   when  DNR                 
  recommended  the  legislation,  they  requested to  see  the                 
  development  occur  in   nodes  in  order  to   avoid  strip                 
  development.   DNR  noted that  the  nodes had  been  evenly                 
  spaced along the highway in order to avoid the problems that                 
  come with strip development.                                                 
                                                                               
  Representative   Navarre   reiterated   that   DOTPF   would                 
  experience costs associated with passage  of the legislation                 
  and urged Committee members to consider adequate funding for                 
  that Department.                                                             
                                                                               
  Representative Mulder MOVED to report HCS CS SB 93 (RES) out                 
  of Committee  with individual  recommendations and  with the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS CS SB  93 (RES) was reported out of Committee with a "do                 
  pass"  recommendations  and with  zero  fiscal notes  by the                 
  Department of Fish  and Game and  the Department of  Natural                 
  Resources dated 2/28/95.                                                     
  SENATE BILL 46                                                               
                                                                               
       "An Act  revising the  provision of  law under  which a                 
       minor may be  charged, prosecuted, and sentenced  as an                 
                                                                               
                                4                                              
                                                                               
                                                                               
       adult in the district court, and  adding to the list of                 
       offenses  for which  a minor  may be  prosecuted as  an                 
       adult in the district court."                                           
                                                                               
  JOE AMBROSE, STAFF, SENATOR ROBIN  TAYLOR, was introduced at                 
  the  urging   of  parents   concerned  with   the  lack   of                 
  consequences within the juvenile justice system when a minor                 
  is arrested for an alcohol related offense.   He  added that                 
  most of  SB 46 was a re-write of  existing law.  The drafter                 
  took the occasion of complying with Senator Taylor's request                 
  to  address  alcohol  issues  by  re-ordering  the  material                 
  already listed in  AS 47.10.010(b).   Juveniles are  already                 
  exempted  from  juvenile   delinquency  rules  for   traffic                 
  offenses,  tobacco  related  offenses  and   fish  and  game                 
  statutes.                                                                    
  Mr.  Ambrose  continued that  SB  46 would  add  alcohol and                 
  controlled  substance  related  offenses to  that  list  and                 
  provide that such cases be handled in district court.                        
                                                                               
  Representative  Brown  asked  if  the  same topic  had  been                 
  addressed in another piece of legislation.                                   
                                                                               
  MARGO KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL  DIVISION,                 
  DEPARTMENT  OF  LAW, stated  that  the issue  of warrantless                 
  arrest  was  a  part  of  another piece  of  legislation  by                 
  Representative Porter,  HB 159.   SB 46  would reduce  minor                 
  consuming  from  a   misdemeanor  violation  not   only  for                 
  juveniles but for all minors.   She said that the Department                 
  of Law supports  that amendment, and that  it would indicate                 
  that  the Department will  not prosecute the  defenses.  She                 
  explained the  disadvantage to the State of  Alaska in doing                 
  this; as a  violation there would be no jail time that could                 
  be imposed or suspended.   The judge could lose  the ability                 
  to order the minor into treatment.                                           
                                                                               
  Ms.  Knuth  elaborated   that  the  Department  of   Law  is                 
  "troubled"  by  waiving  juveniles  into  adult  status  for                 
  "other" alcohol  misdemeanors and  all controlled  substance                 
  misdemeanors.  That offense is referenced on Page 4, Line 8.                 
  She continued,  the misdemeanor  offenses will  make getting                 
  into  the military  more  difficult.   For  a conviction  as                 
  opposed to  a violation,  the person  entering the  military                 
  would need to receive a waiver in  order to enter.  If there                 
  is  only  one  offense,  that  would be  granted  routinely,                 
  although with anything else existing on the record, it would                 
  become more difficult.                                                       
                                                                               
  Ms.  Knuth  summarized   that  in  addressing   the  current                 
  legislation, the  Department of  Law has  concluded that  in                 
  addressing subject by  subject concerns is not  working well                 
  and that  a broader perspective  is needed to  the automatic                 
  waiving of juveniles from any offense  involving a fire arm.                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative  Navarre  asked  what  would  happen  to  the                 
  juvenile's record after  he/she reach eighteen years  of age                 
  (18).  Ms. Knuth  explained that the record would  stay with                 
  them.    Representative  Navarre  voiced  concern  that  the                 
  legislation would implicate that kids  are "no longer kids",                 
  consequently they must respond and be like adults.                           
                                                                               
  (Tape Change HFC 95-111, Side 1).                                            
                                                                               
  Mr. Ambrose  noted  that Sections  1-4, Page  3, is  current                 
  language.  He  emphasized that there  would be no change  in                 
  that provision.   The drafter only re-ordered  the language;                 
  it is not new.                                                               
                                                                               
  Representative Mulder voiced concern with burdening children                 
  with  a long term  record when their nature  as a "kid" does                 
  not have  a frame  of reference  from which  to make  mature                 
  decisions.   He noted  particular concern  with the  child's                 
  future ability to be in the  military service.  He asked  if                 
  there was an alternative to  the legislation; something more                 
  "middle ground".                                                             
                                                                               
  Ms. Knuth replied that  the Department of Law  proposed that                 
  minor  consuming  be  made  a  violation  as  occurs in  the                 
  proposed  legislation and that on Page 4 of the legislation,                 
  only (5)(B) relating  to possession  or consumption be  kept                 
  and that the other offenses be deleted from  the list of the                 
  automatic waiver offenses.                                                   
                                                                               
  Representative Grussendorf stated that the legislation moves                 
  away from granting  the judge an alternative  way to address                 
  the  consequences  resulting from  the  offense.   Ms. Knuth                 
  responded that the cost involved  with placing new juveniles                 
  and then putting  them through  the misdemeanor process  for                 
  minor consuming  would be  very high.   Only by  prosecuting                 
  them for  a misdemeanor  offense, would  the judge  have the                 
  ability to require treatment.  The options are limited.                      
                                                                               
  Ms.  Knuth  added  that  a  judge usually  requires  alcohol                 
  screening  and then  leaves it  to experts  to determine  if                 
  treatment would be appropriate.  She  noted that the "Use It                 
  - Lose  It" law is currently  on the books which  applies to                 
  minor consuming.                                                             
                                                                               
  Ms. Knuth responded to  a misunderstanding of Representative                 
  Brown's.   Except for  minor consuming,  the other  offenses                 
  listed on Page 4 of the legislation are misdemeanors,  would                 
  be  prosecuted  as  such  and  would result  in  misdemeanor                 
  sanctions.   Only  minor  consuming would  be  reduced to  a                 
  violation for all offenders.  Ms. Knuth pointed out that was                 
                                                                               
                                6                                              
                                                                               
                                                                               
  listed on Page 3, Line 4 of the bill.                                        
                                                                               
  Representative Navarre  questioned the effect of  the Alaska                 
  Delinquency Laws on  the legislation.   Ms. Knuth  explained                 
  that it would effect  juvenile delinquency proceedings, they                 
  instead would be treated as an  adult and appear in district                 
  court.                                                                       
                                                                               
  Representative Therriault MOVED to report CS SB 46 (RLS) out                 
  of Committee  with individual  recommendations and  with the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS SB  46 (RLS)  was reported out  of Committee  with a  "no                 
  recommendation" and with  a fiscal note by  the Alaska Court                 
  System dated 3/6/95 and zero fiscal  notes by the Department                 
  of Administration dated  3/22/95 and  the Department of  Law                 
  dated 3/6/95.                                                                
  SENATE BILL NO. 117                                                          
                                                                               
       "An  Act  establishing a  statewide  independent living                 
       council and  clarifying its relationship  with existing                 
       agencies; and providing for an effective date."                         
                                                                               
  STAN RIDGEWAY, DEPUTY  DIRECTOR, VOCATIONAL  REHABILITATION,                 
  DEPARTMENT OF EDUCATION, stated that  SB 117 would establish                 
  the State Independent Living Council which was introduced by                 
  Senator  Halford  at  the  request   of  the  Department  of                 
  Education.   In  order for  Alaska  to continue  to  receive                 
  federal  funds  for  independent   living,  the  State  must                 
  establish,  in  statute,  a  Statewide    Independent Living                 
  Council.                                                                     
                                                                               
  Representative Martin MOVED to report CS SB 117 (HES) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.   There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS  SB 117 (HES)  was reported out  of Committee  with a "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department of Education dated 3/21/95.                                       
  HOUSE CONCURRENT RESOLUTION 19                                               
                                                                               
       Requesting  the Governor  to  direct the  Department of                 
       Corrections to establish a task  force to study current                 
       and future department operations.                                       
                                                                               
  Representative Mulder  stated that  HCR 19  would request  a                 
  task force study of  the operations and future needs  of the                 
  Department of Corrections.   He said that the  Department of                 
                                                                               
                                7                                              
                                                                               
                                                                               
  Corrections has been "running so fast to keep up", they have                 
  not been able  to spend  any time thinking  about where  the                 
  Department ought to be going.   He added that the resolution                 
  and the fiscal  note would  allow the Department  to do  the                 
  planning necessary in order to control costs.                                
  Representative   Mulder  continued   that  the   task  force                 
  recommended  by  the   resolution  would  provide  a   broad                 
  perspective and would be composed  of four legislators, five                 
  representatives of the administration, one representative of                 
  the  judiciary  branch  and  three  representatives  of  the                 
  public.  The task force would be requested to report back by                 
  the end of January, 1996.                                                    
                                                                               
  Representative  Brown  referenced  Page  2,  Line  6-7,  and                 
  recommended  elements  of  the  comprehensive  plan  not  be                 
  predisposed.   She  recommended deleting  the language  "for                 
  private  construction  of  prison  facilities  and   private                 
  operations  of prison  facilities;."   Representative  Brown                 
  MOVED to adopt  Amendment #1.   Representative Mulder  noted                 
  that he would  consider that a "friendly"  amendment.  There                 
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative  Mulder  MOVED  to  adopt  Amendment  #2,  9-                 
  LS1092\A.1,  Lauterbach,  4/26/95.   [Attachment  #1].    He                 
  stated that the amendment would allow  for the Governor, the                 
  Speaker of the House and the  Senate President to select the                 
  people from the private sector.                                              
                                                                               
  Representative Parnell OBJECTED for purposes of  discussion.                 
  He asked the motivation of the  task force in being composed                 
  of public and private members as  opposed to giving money to                 
  the Department to hire  a private contractor to perform  the                 
  service.  Representative Mulder replied  that he thought the                 
  money would not be available through  the capital budget and                 
  that he  felt the Legislature  would be more  cooperative if                 
  they were included in the initial  stages of planning of the                 
  task force.                                                                  
                                                                               
  Representative Mulder advised  that privatization of prisons                 
  was the future goal  in addressing terms of management  of a                 
  large organization and facility.                                             
                                                                               
  Representative Martin pointed out that the fiscal note would                 
  amount to $1000/day  for the task  force.  He stressed  that                 
  the   work   could   be   performed   for  a   lower   cost.                 
  Representative  Mulder  explained  that  the  Department  of                 
  Corrections also  included a  fiscal note  in the  amount of                 
  $350   thousand   dollars.       He   continued,   following                 
  conversations  with  other   people  in   the  business   of                 
  evaluations,  in  hiring  an outside  contractor  to  do the                 
  evaluation,  the  reasonable  cost  would  be $150  thousand                 
  dollars.  He then  added additional funds to cover  the cost                 
                                                                               
                                8                                              
                                                                               
                                                                               
  of a staff person.                                                           
                                                                               
  Representative  Parnell  recommended  placing the  requested                 
  funds on the contractual line  rather than the miscellaneous                 
  line.   Representative Mulder stated that  the miscellaneous                 
  line would allow for the maximum flexibility.                                
                                                                               
  Representative Navarre  pointed out  that the Department  of                 
  Corrections has had  their planning  money reduced for  many                 
  years.  He emphasized that short  funding would result in an                 
  insufficient plan.   He recommended  fully funding the  note                 
  requested by the Department.                                                 
                                                                               
  Representative   Brown   proposed   for    the   Committee's                 
  consideration a  change to  Page 2,  Line 13,  following the                 
  word "organizations", adding  the language "who do  not have                 
  financing  interest in  the  issues to  be addressed".   She                 
  emphasized  that there  should  be an  independent objective                 
  review.                                                                      
                                                                               
  Representative  Mulder  reminded   Committee  members   that                 
  Amendment  #2  had  not yet  been  decided.   Representative                 
  Parnell WITHDREW  the  OBJECTION to  adopting Amendment  #2.                 
  There being  NO further  OBJECTION to  Amendment #2,  it was                 
  adopted.                                                                     
                                                                               
  Representative  Brown  MOVED  to  adopt  Amendment  #3,  the                 
  previous recommended language  addition to Page 2,  Line 13,                 
  to  avoid  the  issue  of public  members  having  a  direct                 
  financial  interest  in  the  outcome  of  the  legislation.                 
  Representative   Parnell   stated   that   the   independent                 
  consultants should  be ones that  are really  "independent".                 
  He stated that language  was already included on Lines  15 &                 
  16.                                                                          
                                                                               
  BOB  COLE, DIRECTOR,  DIVISION  OF ADMINISTRATIVE  SERVICES,                 
  DEPARTMENT  OF  CORRECTIONS,  commented  that in  completing                 
  joint meetings  with the legislative branch,  the Department                 
  must  find  a  way  to  accommodate the  increasing  demands                 
  currently placed on the cost of imprisonment.  He added that                 
  there  are  many   issues  at   hand  with  huge   financial                 
  implications to the  State.  The language  of the resolution                 
  is similar to that written by  the Department in the capital                 
  budget request.                                                              
                                                                               
  Mr.  Cole  added that  this  type of  project  could require                 
  spending between $100  thousand to $1.0 million  dollars and                 
  could take up to five years to complete.  He stated that the                 
  $350 thousand dollar fiscal note  provided by the Department                 
  was  a  modest amount  to complete  the  project.   Mr. Cole                 
  summarized that it would be the  intent of the Department to                 
  hire a contractor who clearly did not have financial benefit                 
                                                                               
                                9                                              
                                                                               
                                                                               
  from the process except on a contractual level.                              
                                                                               
  Representative  Parnell  pointed  out  that  Lines 15  &  16                 
  clarify  that  the consultant  not  have a  direct financial                 
  stake in the enterprise.   Representative Mulder agreed with                 
  Representative  Parnell  and  felt  that  inclusion  of  the                 
  language  recommended  by   Representative  Brown  was   not                 
  necessary.    Representative  Brown WITHDREW  the  MOTION to                 
  adopt Amendment #3.                                                          
                                                                               
  Representative  Brown asked  if  both majority  and minority                 
  representatives would  be appointed.   Representative Mulder                 
  noted that was the intention.   Representative Brown advised                 
  that should  be stipulated  in the  policy.   Representative                 
  Mulder stated that would not be necessary.                                   
                                                                               
  (Tape Change, HFC 95-111, Side 2).                                           
                                                                               
  Representative   Mulder   MOVED  to   adopt   Amendment  #4.                 
  [Attachment   #2].      Representative    Martin   OBJECTED.                 
  Representative Mulder stated that there  are elements of the                 
  study  that will  take longer to  accomplish and  which will                 
  take time for a comprehensive review.                                        
  Mr. Cole noted that  the Department is bound by  three union                 
  agreements.  If  a portion of  the analysis requests that  a                 
  section of the Department be privatized, the State  is bound                 
  by the union agreement to negotiate a cost benefit analysis.                 
  He stressed  that  would  not be  possible  by  next  year's                 
  legislature.  He voiced support for the amendment.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Mulder, Navarre, Parnell,  Brown, Kelly,                 
                      Foster                                                   
       OPPOSED:       Martin                                                   
                                                                               
  Representatives Kohring, Therriault, Grussendorf  and Hanley                 
  were not present for the vote.                                               
                                                                               
  The MOTION PASSED (6-1).                                                     
                                                                               
  Representative Parnell MOVED that the fiscal note money line                 
  be  moved  to  the  "contractual"  line.    There  being  NO                 
  OBJECTION, it was moved.                                                     
                                                                               
  Representative Brown MOVED to report CS  HJR 19 (FIN) out of                 
  Committee with a "do pass"  recommendation and with a fiscal                 
  note by the House Finance Committee.                                         
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:15 A.M.                                          
                                                                               
                               10                                              
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           MAY 3, 1995                                         
                            8:45 A.M.                                          
                                                                               
  TAPE HFC 95 - 110, Side 2, #000 - end.                                       
  TAPE HFC 95 - 111, Side 1, #000 - end.                                       
  TAPE HFC 95 - 111, Side 2, #000 - #115.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House  Finance Committee                 
  meeting to order at 8:45 A.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                                                                 
                                                                               
  Senator Mike Miller;  Teresa Sager,  Staff, Senator  Miller;                 
  Ron  Swanson,  (Testified  via   teleconference),  Director,                 
  Division of  Lands,  Department of  Natural  Resources;  Joe                 
  Ambrose, Staff,  Senator Robin  Taylor; Bob  Cole, Director,                 
  Division   of   Administrative   Services,   Department   of                 
  Corrections;     David     Vandenberg,     (Testified    via                 
  teleconference),   North   Alaska    Environmental   Center,                 
  Fairbanks; Margo Knuth, Assistant Attorney General, Criminal                 
  Division, Department of Law; Stan Ridgeway, Deputy Director,                 
  Vocational Rehabilitation, Department of Education.                          
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 46     An Act revising the provision of law under which a                 
            minor may be charged, prosecuted, and sentenced as                 
            an adult in the district court,  and adding to the                 
            list  of  offenses  for  which   a  minor  may  be                 
            prosecuted as an adult in the district court.                      
                                                                               
            CS SB 46 (RLS) was  reported out of Committee with                 
            "no recommendations" and with a fiscal note by the                 
            Alaska Court System  dated 3/6/95 and zero  fiscal                 
            notes by  the Department  of Administration  dated                 
            3/22/95 and the Department of Law 3/6/95.                          
                                                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  SB 93     An  Act  relating to  the  disposal of  state land                 
            along the  Dalton  Highway; and  providing for  an                 
            effective date.                                                    
                                                                               
            HCS CS SB 93  (RES) was reported out of  Committee                 
            with  a  "do pass"  recommendation  and with  zero                 
            fiscal notes by  the Department  of Fish and  Game                 
            and the  Department  of  Natural  Resources  dated                 
            2/28/95.                                                           
                                                                               
  SB 117    An Act establishing a statewide independent living                 
            council  and  clarifying  its   relationship  with                 
            existing agencies; and providing  for an effective                 
            date.                                                              
                                                                               
            CS SB 117 (HES) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by the Department of Education dated 3/21/95.                      
                                                                               
  HCR 19    Requesting the  Governor to direct  the Department                 
            of Corrections to establish a  task force to study                 
            current and future department operations.                          
                                                                               
            CS HCR 19 (FIN) was reported out of Committee with                 
            a  "do  pass"  recommendation  and  with  a  House                 
            Finance Committee fiscal note.                                     
                                                                               
  SENATE BILL 93 (RES)                                                         
                                                                               
       "An  Act relating to  the disposal of  state land along                 
       the  Dalton Highway;  and  providing  for an  effective                 
       date."                                                                  
                                                                               
  SENATOR MIKE MILLER testified in support of SB 93 (RES).  He                 
  pointed out that in the last session the  Legislature passed                 
  SB 210 which  provided for  the reauthorization of  existing                 
  leases in three  development nodes along the  Dalton Highway                 
  including Deadhorse,  Yukon  River  Crossing  and  Coldfoot.                 
  Future  non-residential  land   disposal  at  Deadhorse  was                 
  allowed in that legislation.                                                 
                                                                               
  He continued that with the recent  opening of the highway to                 
  public  traffic,   the  need  for  additional  services  has                 
  expanded.    SB 93  would allow  the  State to  proceed with                 
  future  non-residential disposal  in each  of the  remaining                 
  four nodes along the route for development of various public                 
  facilities.  The legislation is structured to allow disposal                 
  only within the identified nodes which have existing pads so                 
  that orderly development is maintained  at regular intervals                 
  along the  highway.  He concluded,   as with any  state land                 
  disposal, all proposed  sales or leases will  require a Land                 
  Use  Plan,  subject to  procedures  set forth  in  law which                 
                                                                               
                               12                                              
                                                                               
                                                                               
  provide for thorough public review.                                          
                                                                               
  Representative Brown asked how close Stephens Village was to                 
  the  development  areas.    Senator  Miller  did  not  know.                 
  Representative Brown  asked if any of the village areas were                 
  in opposition to the legislation.   Senator Miller responded                 
  that the only  village which testified  was the North  Slope                 
  Borough and that their concerns have been addressed.                         
                                                                               
  Representative  Martin asked  if the  current lessee's  were                 
  being protected.  Senator Miller  understood that they would                 
  continue to be protected.   He stated that the  Tanana Chief                 
  Conference supported the legislation.   Representative Brown                 
  asked  about  the  litigation  proceedings  filed  over  the                 
  opening of the Haul  Road.  Senator Miller replied  that the                 
  Supreme Court had ruled in favor of the State.                               
                                                                               
  Representative  Brown  inquired  if public  maintenance  and                 
  safety for the  road use had  been addressed in the  budget.                 
  Senator Miller replied that in opening the road, eligibility                 
  for federal funds would increase.                                            
                                                                               
  TERESA  SAGER, STAFF, SENATOR  MILLER, explained  that since                 
  the decision was made to coordinate efforts, the Departments                 
  of Natural Resources,  Transportation and Public  Facilities                 
  and Public Safety  have been working cooperatively  in order                 
  that  all  public needs  will  be  met.   The  Department of                 
  Transportation and Public  Facilities (DOTPF) has  indicated                 
  that  they do  not  anticipate more  than  an additional  50                 
  vehicles on the road  per day during the peak  summer months                 
  and  that  they  do  not  intend  to  change  their  current                 
  maintenance plan.                                                            
                                                                               
  Representative Brown asked  the total  expected cost to  the                 
  State.  Ms. Sager pointed out that the  proposed legislation                 
  has zero  fiscal notes.  Representative Therriault commented                 
  that the cost of opening the road  should not be tied to the                 
  legislation as the  road is currently open.   Representative                 
  Brown emphasized that there will  be a cost associated  with                 
  developing the area  in order to  make it possible for  more                 
  people to travel the road.                                                   
                                                                               
  DAVID  VANDENBERG,(TESTIFIED   VIA  TELECONFERENCE),   NORTH                 
  ALASKA    ENVIRONMENTAL     CENTER,    FAIRBANKS,     echoed                 
  Representative  Brown's   concern  and  spoke   against  the                 
  proposed  legislation.    He  pointed   out  that  there  is                 
  currently insufficient funding for  law enforcement and that                 
  there have been long standing  objections to the opening  of                 
  the  Dalton Highway.  He projected that  SB 93 was a portion                 
  of  the  adjournment  package.    Representative  Therriault                 
  reiterated that the  road is currently open,  which had been                 
  approved by the court.                                                       
                                                                               
                               13                                              
                                                                               
                                                                               
  Representative Navarre asserted that statewide services  are                 
  currently inadequate.  Road maintenance has been underfunded                 
  for many years.  He stressed  that the Legislature should be                 
  prepared to cover future costs  associated with the proposed                 
  legislation.  He  stressed that these  will be new costs  to                 
  the  State.    Representative  Navarre urged  the  Committee                 
  members to recognize that there will be great  fiscal impact                 
  to DOTPF in passage of the bill.                                             
                                                                               
  Representative   Brown   agreed   with   the   comments   of                 
  Representative Navarre  and noted  that there  also had  not                 
  been  a fiscal  note attached for  the Department  of Public                 
  Safety.  She noted that Department  is currently not able to                 
  deal   with  addressing   adequate  service   needs.     The                 
  legislation will add increased pressure on  that Department.                 
                                                                               
                                                                               
  Representative Brown asked  if not opening  the road was  an                 
  option  at this  time.  Representative  Therriault explained                 
  that the court  ruled that if public  money is spent  on the                 
  road, it must be open to the public.                                         
                                                                               
  Representative  Navarre  asked  if a  fiscal  note  had been                 
  solicited from DOTPF.   Ms. Sager  advised that one had  not                 
  been requested, noting that there had been a  position paper                 
  provided  by  that  agency  indicating   that  they  do  not                 
  anticipate  fiscal  impact.     She  added  that   when  DNR                 
  recommended  the legislation,  they  requested  to  see  the                 
  development  occur  in   nodes  in  order  to   avoid  strip                 
  development.    DNR noted  that  the nodes  had  been evenly                 
  spaced along the highway in order to avoid the problems that                 
  come with strip development.                                                 
                                                                               
  Representative   Navarre   reiterated   that   DOTPF   would                 
  experience costs  associated with passage of the legislation                 
  and urged Committee members to consider adequate funding for                 
  that Department.                                                             
                                                                               
  Representative Mulder MOVED to report HCS CS SB 93 (RES) out                 
  of  Committee with  individual recommendations and  with the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS CS SB 93 (RES) was reported out of Committee with  a "do                 
  pass"  recommendations  and with  zero  fiscal notes  by the                 
  Department of  Fish and Game  and the Department  of Natural                 
  Resources dated 2/28/95.                                                     
                                                                               
  SENATE BILL 46                                                               
                                                                               
       "An Act revising  the provision  of law  under which  a                 
                                                                               
                               14                                              
                                                                               
                                                                               
       minor may be  charged, prosecuted, and sentenced  as an                 
       adult in the district court, and  adding to the list of                 
       offenses for  which  a minor  may be  prosecuted as  an                 
       adult in the district court."                                           
                                                                               
  JOE AMBROSE, STAFF, SENATOR ROBIN  TAYLOR, was introduced at                 
  the  urging   of  parents   concerned  with   the  lack   of                 
  consequences within the juvenile justice system when a minor                 
  is  arrested for an alcohol related offense.   He added that                 
  most of SB 46  was a re-write of existing law.   The drafter                 
  took the occasion of complying with Senator Taylor's request                 
  to  address  alcohol  issues  by  re-ordering  the  material                 
  already listed in  AS 47.10.010(b).   Juveniles are  already                 
  exempted  from   juvenile  delinquency  rules   for  traffic                 
  offenses,  tobacco   related  offenses  and  fish  and  game                 
  statutes.                                                                    
  Mr.  Ambrose continued  that  SB 46  would  add alcohol  and                 
  controlled  substance  related  offenses  to  that  list and                 
  provide that such cases be handled in district court.                        
                                                                               
  Representative  Brown  asked  if  the  same topic  had  been                 
  addressed in another piece of legislation.                                   
                                                                               
  MARGO KNUTH, ASSISTANT  ATTORNEY GENERAL, CRIMINAL DIVISION,                 
  DEPARTMENT  OF  LAW, stated  that  the issue  of warrantless                 
  arrest  was  a  part  of  another  piece  of legislation  by                 
  Representative Porter,  HB 159.   SB 46  would reduce  minor                 
  consuming  from  a   misdemeanor  violation  not  only   for                 
  juveniles but for all minors.   She said that the Department                 
  of Law supports that amendment,  and that it would  indicate                 
  that the Department  will not prosecute  the defenses.   She                 
  explained the disadvantage to  the State of Alaska in  doing                 
  this; as a violation there would  be no jail time that could                 
  be imposed or suspended.   The judge could lose  the ability                 
  to order the minor into treatment.                                           
                                                                               
  Ms.  Knuth  elaborated   that  the  Department  of   Law  is                 
  "troubled"  by  waiving  juveniles  into  adult  status  for                 
  "other"  alcohol misdemeanors  and all  controlled substance                 
  misdemeanors.  That offense is referenced on Page 4, Line 8.                 
  She  continued, the  misdemeanor offenses will  make getting                 
  into  the military  more  difficult.   For  a conviction  as                 
  opposed to  a violation,  the person  entering the  military                 
  would need to  receive a waiver in order to enter.  If there                 
  is  only  one  offense,  that  would be  granted  routinely,                 
  although with anything else existing on the record, it would                 
  become more difficult.                                                       
                                                                               
  Ms.  Knuth  summarized   that  in  addressing  the   current                 
  legislation, the  Department of  Law has  concluded that  in                 
  addressing subject by  subject concerns is not  working well                 
  and that a  broader perspective is  needed to the  automatic                 
                                                                               
                               15                                              
                                                                               
                                                                               
  waiving of juveniles  from any offense involving a fire arm.                 
                                                                               
                                                                               
  Representative  Navarre  asked  what  would  happen  to  the                 
  juvenile's record after  he/she reach eighteen years  of age                 
  (18).  Ms. Knuth  explained that the record would  stay with                 
  them.    Representative  Navarre  voiced  concern  that  the                 
  legislation would implicate that kids  are "no longer kids",                 
  consequently they must respond and be like adults.                           
                                                                               
  (Tape Change HFC 95-111, Side 1).                                            
                                                                               
  Mr. Ambrose  noted that  Sections  1-4, Page  3, is  current                 
  language.  He  emphasized that there  would be no change  in                 
  that provision.   The drafter only re-ordered  the language;                 
  it is not new.                                                               
                                                                               
  Representative Mulder voiced concern with burdening children                 
  with a long  term record when  their nature as a  "kid" does                 
  not have  a frame  of reference  from which  to make  mature                 
  decisions.   He noted  particular concern  with the  child's                 
  future ability to  be in the military service.   He asked if                 
  there was an alternative to  the legislation; something more                 
  "middle ground".                                                             
                                                                               
  Ms.  Knuth replied that the Department  of Law proposed that                 
  minor consuming  be  made  a  violation  as  occurs  in  the                 
  proposed legislation and  that on Page 4 of the legislation,                 
  only (5)(B) relating  to possession  or consumption be  kept                 
  and that the other offenses be deleted from the list  of the                 
  automatic waiver offenses.                                                   
                                                                               
  Representative Grussendorf stated that the legislation moves                 
  away from granting the  judge an alternative way  to address                 
  the  consequences  resulting from  the  offense.   Ms. Knuth                 
  responded that the cost involved  with placing new juveniles                 
  and then putting  them through  the misdemeanor process  for                 
  minor consuming  would be  very high.   Only  by prosecuting                 
  them  for a misdemeanor  offense, would  the judge  have the                 
  ability to require treatment.  The options are limited.                      
                                                                               
  Ms.  Knuth  added  that  a  judge usually  requires  alcohol                 
  screening  and  then leaves  it to  experts to  determine if                 
  treatment would be appropriate.  She  noted that the "Use It                 
  - Lose It"  law is currently on  the books which applies  to                 
  minor consuming.                                                             
                                                                               
  Ms.  Knuth responded to a misunderstanding of Representative                 
  Brown's.   Except for  minor consuming,  the other  offenses                 
  listed on  Page 4 of the legislation are misdemeanors, would                 
  be  prosecuted  as  such  and  would result  in  misdemeanor                 
  sanctions.    Only minor  consuming  would be  reduced  to a                 
                                                                               
                               16                                              
                                                                               
                                                                               
  violation for all offenders.  Ms. Knuth pointed out that was                 
  listed on Page 3, Line 4 of the bill.                                        
                                                                               
  Representative Navarre  questioned the effect  of the Alaska                 
  Delinquency Laws on  the legislation.   Ms. Knuth  explained                 
  that  it would effect juvenile delinquency proceedings, they                 
  instead would be treated as an  adult and appear in district                 
  court.                                                                       
                                                                               
  Representative Therriault MOVED to report CS SB 46 (RLS) out                 
  of Committee  with individual recommendations  and with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS SB  46 (RLS)  was reported  out of Committee  with a  "no                 
  recommendation" and with a  fiscal note by the  Alaska Court                 
  System dated 3/6/95 and zero fiscal notes by  the Department                 
  of Administration dated  3/22/95 and  the Department of  Law                 
  dated 3/6/95.                                                                
                                                                               
  SENATE BILL NO. 117                                                          
                                                                               
       "An  Act establishing  a  statewide independent  living                 
       council and  clarifying its relationship  with existing                 
       agencies; and providing for an effective date."                         
                                                                               
  STAN RIDGEWAY, DEPUTY  DIRECTOR, VOCATIONAL  REHABILITATION,                 
  DEPARTMENT OF EDUCATION, stated that  SB 117 would establish                 
  the State Independent Living Council which was introduced by                 
  Senator  Halford  at  the  request   of  the  Department  of                 
  Education.    In order  for  Alaska to  continue  to receive                 
  federal  funds  for  independent  living,  the  State   must                 
  establish,  in  statute,  a Statewide    Independent  Living                 
  Council.                                                                     
                                                                               
  Representative Martin MOVED to report CS SB 117 (HES) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS SB 117  (HES) was reported  out of Committee  with a  "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department of Education dated 3/21/95.                                       
                                                                               
  HOUSE CONCURRENT RESOLUTION 19                                               
                                                                               
       Requesting  the Governor  to direct  the Department  of                 
       Corrections to establish a task  force to study current                 
       and future department operations.                                       
                                                                               
  Representative Mulder  stated that  HCR 19  would request  a                 
  task force study of  the operations and future needs  of the                 
                                                                               
                               17                                              
                                                                               
                                                                               
  Department  of Corrections.  He  said that the Department of                 
  Corrections has been "running so fast to keep up", they have                 
  not been able  to spend  any time thinking  about where  the                 
  Department ought to be going.   He added that the resolution                 
  and the fiscal  note would  allow the Department  to do  the                 
  planning necessary in order to control costs.                                
  Representative  Mulder   continued  that   the  task   force                 
  recommended  by  the  resolution   would  provide  a   broad                 
  perspective and would be composed  of four legislators, five                 
  representatives of the administration, one representative of                 
  the  judiciary  branch  and  three  representatives  of  the                 
  public.  The task force would be requested to report back by                 
  the end of January, 1996.                                                    
                                                                               
  Representative  Brown  referenced  Page  2,  Line  6-7,  and                 
  recommended  elements  of  the  comprehensive  plan  not  be                 
  predisposed.   She  recommended deleting  the language  "for                 
  private  construction  of   prison  facilities  and  private                 
  operations  of  prison facilities;."    Representative Brown                 
  MOVED to adopt  Amendment #1.   Representative Mulder  noted                 
  that he would consider that  a "friendly" amendment.   There                 
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative  Mulder  MOVED  to  adopt  Amendment  #2,  9-                 
  LS1092\A.1,  Lauterbach,  4/26/95.    [Attachment  #1].   He                 
  stated that the amendment would allow for the  Governor, the                 
  Speaker of the House and the  Senate President to select the                 
  people from the private sector.                                              
                                                                               
  Representative Parnell OBJECTED  for purposes of discussion.                 
  He asked the motivation of the  task force in being composed                 
  of public and private members as  opposed to giving money to                 
  the Department to  hire a private contractor  to perform the                 
  service.  Representative Mulder replied  that he thought the                 
  money would not be available through the capital  budget and                 
  that  he felt the  Legislature would be  more cooperative if                 
  they were included in the initial  stages of planning of the                 
  task force.                                                                  
                                                                               
  Representative Mulder advised that  privatization of prisons                 
  was the future goal  in addressing terms of management  of a                 
  large organization and facility.                                             
                                                                               
  Representative Martin pointed out that the fiscal note would                 
  amount to $1000/day  for the task  force.  He stressed  that                 
  the   work   could   be   performed   for  a   lower   cost.                 
  Representative  Mulder  explained  that  the  Department  of                 
  Corrections  also included a  fiscal note  in the  amount of                 
  $350   thousand   dollars.       He   continued,   following                 
  conversations  with   other  people   in  the  business   of                 
  evaluations,  in  hiring  an outside  contractor  to  do the                 
  evaluation,  the  reasonable  cost would  be  $150  thousand                 
                                                                               
                               18                                              
                                                                               
                                                                               
  dollars.  He then  added additional funds to cover  the cost                 
  of a staff person.                                                           
                                                                               
  Representative  Parnell  recommended  placing the  requested                 
  funds on the contractual line  rather than the miscellaneous                 
  line.  Representative  Mulder stated that  the miscellaneous                 
  line would allow for the maximum flexibility.                                
                                                                               
  Representative  Navarre pointed out  that the  Department of                 
  Corrections has had  their planning  money reduced for  many                 
  years.  He emphasized that short  funding would result in an                 
  insufficient plan.   He recommended  fully funding the  note                 
  requested by the Department.                                                 
                                                                               
  Representative   Brown   proposed   for    the   Committee's                 
  consideration a change  to Page  2, Line  13, following  the                 
  word "organizations", adding  the language "who do  not have                 
  financing  interest in  the issues  to  be addressed".   She                 
  emphasized  that there  should be  an independent  objective                 
  review.                                                                      
                                                                               
  Representative  Mulder  reminded   Committee  members   that                 
  Amendment  #2  had  not yet  been  decided.   Representative                 
  Parnell  WITHDREW the  OBJECTION to  adopting Amendment  #2.                 
  There being NO  further OBJECTION  to Amendment  #2, it  was                 
  adopted.                                                                     
                                                                               
  Representative  Brown  MOVED  to  adopt  Amendment  #3,  the                 
  previous recommended language  addition to Page 2,  Line 13,                 
  to  avoid  the  issue  of  public  members having  a  direct                 
  financial  interest  in  the  outcome  of  the  legislation.                 
  Representative   Parnell   stated   that   the   independent                 
  consultants should  be ones  that are  really "independent".                 
  He stated that language  was already included on Lines  15 &                 
  16.                                                                          
                                                                               
  BOB  COLE,  DIRECTOR, DIVISION  OF  ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF  CORRECTIONS,  commented  that  in  completing                 
  joint meetings  with the legislative  branch, the Department                 
  must  find  a  way  to  accommodate the  increasing  demands                 
  currently placed on the cost of imprisonment.  He added that                 
  there  are  many   issues  at   hand  with  huge   financial                 
  implications to the State.   The language of  the resolution                 
  is similar to that written by  the Department in the capital                 
  budget request.                                                              
                                                                               
  Mr.  Cole added  that  this type  of  project could  require                 
  spending between $100  thousand to $1.0 million  dollars and                 
  could take up to five years to complete.  He stated that the                 
  $350 thousand dollar fiscal note  provided by the Department                 
  was  a  modest amount  to complete  the  project.   Mr. Cole                 
  summarized that it would be the  intent of the Department to                 
                                                                               
                               19                                              
                                                                               
                                                                               
  hire a contractor who clearly did not have financial benefit                 
  from the process except on a contractual level.                              
                                                                               
  Representative  Parnell  pointed  out  that  Lines 15  &  16                 
  clarify  that  the consultant  not  have a  direct financial                 
  stake in the enterprise.   Representative Mulder agreed with                 
  Representative  Parnell  and  felt  that  inclusion  of  the                 
  language  recommended   by  Representative  Brown   was  not                 
  necessary.   Representative  Brown WITHDREW  the  MOTION  to                 
  adopt Amendment #3.                                                          
                                                                               
  Representative  Brown asked  if both  majority and  minority                 
  representatives would be  appointed.  Representative  Mulder                 
  noted that was the intention.   Representative Brown advised                 
  that should  be stipulated  in the  policy.   Representative                 
  Mulder stated that would not be necessary.                                   
                                                                               
  (Tape Change, HFC 95-111, Side 2).                                           
                                                                               
  Representative   Mulder  MOVED   to   adopt  Amendment   #4.                 
  [Attachment   #2].      Representative    Martin   OBJECTED.                 
  Representative Mulder stated that there  are elements of the                 
  study  that will  take longer  to accomplish and  which will                 
  take time for a comprehensive review.                                        
  Mr. Cole noted that  the Department is bound by  three union                 
  agreements.  If  a portion of  the analysis requests that  a                 
  section  of the Department be privatized, the State is bound                 
  by the union agreement to negotiate a cost benefit analysis.                 
  He  stressed  that would  not  be  possible by  next  year's                 
  legislature.  He voiced support for the amendment.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Mulder, Navarre, Parnell,  Brown, Kelly,                 
                      Foster                                                   
       OPPOSED:       Martin                                                   
                                                                               
  Representatives Kohring, Therriault, Grussendorf  and Hanley                 
  were not present for the vote.                                               
                                                                               
  The MOTION PASSED (6-1).                                                     
                                                                               
  Representative Parnell MOVED that the fiscal note money line                 
  be  moved  to  the  "contractual"  line.    There  being  NO                 
  OBJECTION, it was moved.                                                     
                                                                               
  Representative Brown MOVED to report CS  HJR 19 (FIN) out of                 
  Committee with a "do pass" recommendation and  with a fiscal                 
  note by the House Finance Committee.                                         
                                                                               
  ADJOURNMENT                                                                  
                                                                               
                                                                               
                               20                                              
                                                                               
                                                                               
  The meeting adjourned at 10:15 A.M.                                          
                                                                               
                                                                               
                               21                                              

Document Name Date/Time Subjects