Legislature(1995 - 1996)

04/11/1996 08:20 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                         April 11, 1996                                        
                            8:20 A.M.                                          
                                                                               
  TAPE HFC 96-111, Side 1, #000 - end.                                         
  TAPE HFC 96-111, Side 2, #000 - end.                                         
  TAPE HFC 96-112, Side 1, #000 - #248.                                        
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House Finance  Committee                 
  meeting to order at 8:20 a.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley                                                              
  Co-Chair Foster               Representative Martin                          
  Representative Brown          Representative Mulder                          
  Representative Grussendorf    Representative Parnell                         
  Representative Kelly          Representative Therriault                      
  Representative Kohring                                                       
                                                                               
  Representative Navarre was absent from the vote.                             
  ALSO PRESENT                                                                 
                                                                               
  Representative Jerry Mackie;  Representative Ed Willis;  Ron                 
  King,  Chief,   Air  Quality   Improvement,  Department   of                 
  Environmental  Conservation;  Tom  Williams, Staff,  Senator                 
  Frank; Juanita  Hensley, Chief Driver Services,  Division of                 
  Motor Vehicles,  Department of Public  Safety; Bill  Parker,                 
  Deputy Commissioner, Department of Corrections.                              
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 2      An  Act   allowing  courts   to  require   certain                 
            offenders as  a special condition of  probation to                 
            complete  a  boot  camp  program  provided  by the                 
            Department  of  Corrections; making  prisoners who                 
            complete  the  boot  camp  program  eligible   for                 
            discretionary parole; providing  for incarceration                 
            of  certain  nonviolent  offenders  in boot  camps                 
            operated   by   the  Department   of  Corrections;                 
            allowing the Department of Corrections to contract                 
            with  a  person  for  an  alternative  boot   camp                 
            program; creating the Boot  Camp Advisory Board in                 
            the Department  of Corrections; and  providing for                 
            an effective date."                                                
                                                                               
            HB  2   was   HELD  in   Committee   for   further                 
            consideration.                                                     
                                                                               
                                1                                              
                                                                               
                                                                               
  SB 226    An Act relating to biennial registration  of motor                 
            vehicles; imposing biennial  registration fees  on                 
            motor   vehicles   and  authorizing   a  scheduled                 
            biennial municipal tax on motor vehicles; relating                 
            to  fees  for   motor  vehicle  emissions  control                 
            programs; and providing for an effective date.                     
                                                                               
            HCS CSSB 226  (FIN) was reported out  of Committee                 
            with a "do pass" recommendation  and with a fiscal                 
            impact note by the Department of Public Safety.                    
  SB 250    An Act relating to the University of Alaska and to                 
            assets of  the University  of Alaska;  authorizing                 
            the  University  of  Alaska to  select  additional                 
            state public domain land, designating that land as                 
            `university  trust  land,'   and  describing   the                 
            principles  applicable  to the  land's management;                 
            and defining the net income from the University of                 
            Alaska's  endowment  trust  fund   as  `university                 
            receipts'    subject    to    prior    legislative                 
            appropriation.                                                     
                                                                               
            SB 250 was rescheduled to another time.                            
  SENATE BILL NO. 226                                                          
                                                                               
       "An  Act  relating to  biennial  registration  of motor                 
       vehicles; imposing biennial registration fees on  motor                 
       vehicles and authorizing a scheduled biennial municipal                 
       tax  on  motor  vehicles; relating  to  fees  for motor                 
       vehicle emissions  control programs; and  providing for                 
       an effective date."                                                     
                                                                               
  TOM  WILLIAMS,  STAFF,  SENATOR  FRANK  reviewed  amendments                 
  previously  adopted by  the  Committee  (see  House  Finance                 
  Committee minutes 3/29/96).   Amendment 1  was adopted as  a                 
  technical amendment to eliminate superfluous effective  date                 
  sections.    Amendment  3  was also  adopted.    Amendment 3                 
  provided that implementation  of biannual registrations  and                 
  biannual emissions testing  would begin  January 1997.   Co-                 
  Chair Hanley noted that this date would allow the Department                 
  time to implement the program.                                               
                                                                               
  Representative  Kelly   MOVED  to  adopt  Amendment   7,  9-                 
  LS1452\M.1, 4/9/96 (copy on file).                                           
                                                                               
  REPRESENTATIVE JERRY MACKIE testified on behalf of Amendment                 
  7.    He explained  that  the amendment  would  provide that                 
  registration at  a contract office  would not be  subject to                 
  the $10 dollar fee.  He pointed out that rural areas  of the                 
  State do not  have Division  of Motor Vehicle  offices.   He                 
                                                                               
                                2                                              
                                                                               
                                                                               
  stressed that it  is unfair for  rural residents to pay  the                 
  extra $10 dollar fee to relieve crowding in urban areas.                     
                                                                               
  Representative Martin asserted that those living in  smaller                 
  areas get  away cheaper  with personal  contact.   He  spoke                 
  against the amendment.                                                       
                                                                               
  Representative  Mackie spoke in support of  Amendment 7.  He                 
  asked  why  people  using  contract  offices should  pay  to                 
  alleviate congestion when  there is  no congestion at  these                 
  offices.                                                                     
                                                                               
  In  response  to a  question  by Representative  Therriault,                 
  Representative Mackie stated  that he supports the  fee when                 
  transactions  occur  at  Division  of  Motor  Vehicle  (DMV)                 
  offices.  He emphasized that the  State is trying to present                 
  incentives  for contract  agents  to take  over some  of the                 
  responsibilities that the  State cannot  support.  He  noted                 
  that  the  contract  agents  operate  through  local  police                 
  departments.                                                                 
                                                                               
  JUANITA HENSLEY,  CHIEF DRIVER  SERVICES, DIVISION OF  MOTOR                 
  VEHICLES,  DEPARTMENT  OF  PUBLIC  SAFETY  stated  that  the                 
  Department does not  support the amendment.   She noted that                 
  the amendment would set up two  different types of programs.                 
  She observed that rural communities  where DMV offices exist                 
  would have to pay  the fee even if  there is no  congestion.                 
  Other  rural  communities would  not  pay  the  fee  if  DMV                 
  activities are performed  by contract agents.   She stressed                 
  that the amendment would  not be fair for the  entire State.                 
  She clarified that contract agents  are not state employees.                 
  They are  city employees.   The  State pays  15 percent  for                 
  vehicle  registration and  50 percent  for driver's  license                 
  work to contract agents.                                                     
                                                                               
  Co-Chair  Hanley summarized  that  if  the  disincentive  to                 
  renewing licenses in person goes away it will cost the State                 
  more money.   Ms. Hensley  agreed and added  that the  State                 
  still has to perform paper and computer  work on collections                 
  by contract agents.                                                          
                                                                               
  In  response  to  a question  by  Representative  Brown, Ms.                 
  Hensley discussed HB 210.  She  noted that HB 210 would  not                 
  result in commissioned contract offices.  She clarified that                 
  a contract office opened  under HB 210 would be  exempt from                 
  paying the  $10  dollar  fee without  the  adoption  of  the                 
  amendment.    She  pointed out  that  commissioned  contract                 
  agents are  paid  by the  State  to perform  DMV  functions.                 
  Contract agents under  HB 210 and  emissions testing do  not                 
  cost the State.                                                              
                                                                               
  Representative Mackie emphasized that  commissioned contract                 
                                                                               
                                3                                              
                                                                               
                                                                               
  agents need incentives  to continue operation.   He observed                 
  that  reimbursements to  commissioned  contract agents  have                 
  been reduced due to the addition of the $10 dollar fee.   He                 
  stressed that the State would have to pay more to maintain a                 
  DMV office in small communities.                                             
                                                                               
  Ms. Hensley observed that some  commissioned contract agents                 
  are employed half-time.  She noted that a half-time position                 
  would cost DMV $18.0  thousand dollars.  The State  paid the                 
  Craig police department  $27,443 thousand dollars in  FY 96.                 
  The  commission  contract agent  in  Craig was  paid $19,644                 
  thousand  dollars.    She  estimated  that adoption  of  the                 
  Amendment  would  result in  a loss  to  the State  of $31.0                 
  thousand  dollars  and additional  operating costs  of $11.0                 
  thousand dollars to pay for contract additions.                              
                                                                               
  Representative  Martin noted that there is  a post office in                 
  Craig.                                                                       
                                                                               
  Representative Mackie  noted  that  there  are  commissioned                 
  contract  offices in  Craig, Wrangell,  Petersburg, Skagway,                 
  Dutch  Harbor,  Dillingham,  Naknek,  Barrow,  Anderson  and                 
  Seward.   Ms. Hensley noted that of 13 commissioned contract                 
  agents only five process vehicle registration.                               
                                                                               
  A roll  call vote was taken on the MOTION to adopt Amendment                 
  7.                                                                           
                                                                               
  IN FAVOR: Kohring,  Mulder,  Parnell,   Grussendorf,  Kelly,                 
  Foster                                                                       
  OPPOSED:  Martin, Therriault, Brown, Hanley                                  
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (6-4).                                                     
                                                                               
  Representative  Mulder  MOVED  to  adopt  Amendment   5,  9-                 
  LS1452\M.2 (copy on file).   He explained that the amendment                 
  would allow municipalities to collect  an additional fee for                 
  the ambient  air quality program to be  collected along with                 
  the motor vehicle emission control inspection fee.                           
                                                                               
  Mr. Williams noted that  the sponsor does not object  to the                 
  amendment.                                                                   
                                                                               
  RON KING, CHIEF, AIR QUALITY IMPROVEMENT SECTION, DEPARTMENT                 
  OF ENVIRONMENTAL  CONSERVATION observed that  the Department                 
  supports the amendment.                                                      
                                                                               
  Ms. Hensley  noted that the  amendment would not  affect the                 
  Department of Public Safety.                                                 
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  Representative  Martin spoke  against  the  amendment.    He                 
  asserted  that  the  municipality  makes   a  lot  of  money                 
  processing unnecessary paper.                                                
                                                                               
  Mr. King noted that both the Anchorage and Fairbanks have to                 
  recover the cost of their inspectors and programs.  He noted                 
  that the volume of vehicles in Alaska is small in comparison                 
  to the fixed cost that most be sustained.  He explained that                 
  of  the  $10 dollar  fee,  the vehicle  emissions inspection                 
  program costs a  little over $7.50  dollars.  The  remaining                 
  $2.50 dollars is attributed to the  air quality program.  In                 
  Fairbanks   the   emissions    inspection   program    costs                 
  approximately  $7  dollars and  the  air quality  program $3                 
  dollars.                                                                     
                                                                               
  Representative Brown read from a letter  from Tim Rogers, to                 
  Representative Mulder  (not on file).   She  noted that  Mr.                 
  Rogers  wrote    that  $295  thousand dollars  of  Anchorage                 
  emissions inspection  revenues are  appropriated to  the air                 
  quality program  as are required  match for a  $110 thousand                 
  dollar pass through grant from  the Environmental Protection                 
  Agency.                                                                      
                                                                               
  Mr. King explained  that the  Anchorage air quality  program                 
  was funded with approximately $295 thousand dollars from the                 
  general fund, as a  grant match to $110 thousand  dollars in                 
  federal  funds.  Four years ago, the general fund obligation                 
  was  reduced  through the  substitution  of the  $2.75 cents                 
  collected on  a per  car basis  in the  emissions inspection                 
  program.  He emphasized that  Anchorage fronted $1.8 million                 
  dollars to start the vehicle inspection program.  The  $2.75                 
  dollars  per  car was  being used  to  recover the  start up                 
  costs.   The  start up  costs were  not completed  recovered                 
  before the Anchorage  Assembly made  the decision to  switch                 
  the $2.75 dollars to the air quality program.                                
                                                                               
  In  response  to a  question  by Co-Chair  Hanley,  Mr. King                 
  agreed that the municipality will not  be able to charge for                 
  the air quality program without the adoption of amendment 5.                 
  He summarized  that there would be a  budgetary shortfall to                 
  the municipality of Anchorage of approximately $295 thousand                 
  dollars.  He noted that  discussions are occurring regarding                 
  the  State's  assumption  of Fairbanks'  inspection  and air                 
  quality programs.                                                            
                                                                               
  Co-Chair  Hanley noted that if  the amendment is not adopted                 
  Anchorage would have to increase property taxes to cover the                 
  cost of the programs.                                                        
                                                                               
  A roll  call vote  was taken  on the  MOTION on  adoption of                 
  amendment 5.                                                                 
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  IN FAVOR: Brown,   Grussendorf,   Kelly,   Kohring,  Mulder,                 
  Parnell,       Therriault, Foster, Hanley                                    
  OPPOSED:  Martin                                                             
                                                                               
  Representative Navarre was absent from the vote.                             
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  Representative  Mulder  MOVED  to  adopt  Amendment   8,  9-                 
  LS1452\K.10 (copy on file).  He explained that the amendment                 
  would exempt rental vehicles from  the two year registration                 
  requirement.    He  noted that  many  rental  companies have                 
  seasonal fleets.                                                             
                                                                               
  The  Sponsor and  the  Department of  Public  Safety had  no                 
  objections to Amendment 8.                                                   
                                                                               
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  In  response  to a  question  by Representative  Martin, Ms.                 
  Hensley  explained  that the  Anchorage  field office  has a                 
  fleet dealer unit that registers all vehicle fleets.                         
                                                                               
  Representative Martin MOVED to report HCS CSSB 226 (FIN) out                 
  of Committee  with individual recommendations  and with  the                 
  accompanying fiscal note.                                                    
                                                                               
  Representative Brown  OBJECTED for  purposes of  discussion.                 
  She  asked  how the  fiscal note  would  be affected  by the                 
  adoption of amendment 7.  Ms. Hensley noted that there would                 
  be a operating cost under  contractual of approximately $5.5                 
  thousand  dollars.    There would  also  be  a  loss of  $31                 
  thousand dollars in revenues.   Discussion pursued regarding                 
  the  fiscal  note.    Co-Chair  Hanley  estimated  that  the                 
  contract  costs  would  show  a  slight savings,  while  the                 
  revenue lost to the State would be 85 percent of 10 dollars.                 
  Ms. Hensley noted that if 50 percent of those that are using                 
  the mail now  choose to  go back into  the contract  offices                 
  that  the  Division would  need  an additional  $11 thousand                 
  dollars to pay the commissions.                                              
                                                                               
  (Tape Change, HFC 96-111, Side 2)                                            
                                                                               
  Discussion  regarding the fiscal  note continued.   Co-Chair                 
  Hanley  summarized that  contract  offices  would also  lose                 
  revenues.  He asked for an updated fiscal note.                              
                                                                               
  In  response  to  a question  by  Representative  Brown, Ms.                 
  Hensley  pointed out  that  half  of  the vehicles  will  be                 
  registered the  first year in a  two year basis.   The other                 
  half would be registered in the next year.  There will be an                 
  increase  in  registration fees  the first  two years.   The                 
                                                                               
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  legislation also contains  a reduction of  $2 dollars for  a                 
  two year  period.  This  is shown in  the future years  as a                 
  revenue loss.                                                                
                                                                               
  Mr. Williams noted  that the  $2 dollar break  was given  to                 
  provide  an incentive.  Representative Brown maintained that                 
  the $2 dollar  reduction is  an unnecessary  loss of  future                 
  income.  She  stressed the convenience of  registering every                 
  two years.                                                                   
                                                                               
  Ms. Hensley noted that there would  be a savings in postage.                 
                                                                               
                                                                               
  Co-Chair Hanley  asked if  there would  be  decrease in  the                 
  workload.   Ms.  Hensley noted  that 60  percent of  vehicle                 
  owners mail  their registration.   She  emphasized that  the                 
  legislation  will   allow  the  Division  to   operate  more                 
  efficiently.  She estimated that  the legislation will allow                 
  lines at DMV offices to be smaller.                                          
                                                                               
  Representative Brown reiterated concerns with  the $2 dollar                 
  reduction.                                                                   
                                                                               
  Representative Martin WITHDREW  the motion to move  HCS CSSB
  226 (FIN) from Committee.  There  being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  Representative  Brown  MOVED   to  delete   the  $2   dollar                 
  reduction.   Representative  Martin and  Mr.  Williams spoke                 
  against the amendment.   A roll  call vote was taken  on the                 
  MOTION.                                                                      
                                                                               
  IN FAVOR: Brown                                                              
  OPPOSED:  Mulder, Therriault,  Grussendorf, Kelly,  Kohring,                 
  Martin,        Foster, Hanley                                                
                                                                               
  Representatives Navarre  and  Parnell were  absent from  the                 
  vote.                                                                        
                                                                               
  The MOTION FAILED (1-8).                                                     
                                                                               
  Representative Martin MOVED to report HCS CSSB 226 (FIN) out                 
  of Committee  with individual  recommendations and with  the                 
  accompanying fiscal note.                                                    
                                                                               
  HCS CSSB 226 (FIN) was reported out of Committee  with a "do                 
  pass" recommendation  and with a  fiscal impact note  by the                 
  Department of Public Safety.                                                 
  HOUSE BILL NO.  2                                                            
                                                                               
       "An Act allowing courts to require certain offenders as                 
                                                                               
                                7                                              
                                                                               
                                                                               
       a special  condition of  probation to  complete a  boot                 
       camp program provided by the Department of Corrections;                 
       making  prisoners who  complete the  boot camp  program                 
       eligible  for  discretionary   parole;  providing   for                 
       incarceration of  certain nonviolent offenders  in boot                 
       camps  operated  by   the  Department  of  Corrections;                 
       allowing the Department of Corrections to contract with                 
       a person for an alternative boot camp program; creating                 
       the  Boot  Camp  Advisory Board  in  the  Department of                 
       Corrections; and providing for an effective date."                      
                                                                               
  REPRESENTATIVE ED WILLIS, sponsor of HB 2,  spoke in support                 
  of the legislation.  He noted that the legislation was first                 
  introduced in 1993.   He  asserted that HB  2 addresses  the                 
  needs of  the Department of  Corrections with regard  to the                 
  proposed program.    He maintained  that placing  nonviolent                 
  felony  or misdemeanor offenders in a  prison setting is not                 
  the best way  to accomplish rehabilitation of  the offender.                 
  He maintained that  providing an alternative to  prison time                 
  and  an  opportunity  to  learn  discipline  and  acceptable                 
  behavior  will  offer  these  offenders  a chance  to  avoid                 
  further encounters with the law.                                             
                                                                               
  Representative Willis noted that HB  2 would offer boot camp                 
  as   an  alternative   program   for  convicted   felons  or                 
  misdemeanant under the age of 26.  Individuals  convicted of                 
  crimes  such   as  homicide,  assault,   kidnapping,  sexual                 
  offenses, and offenses  involving the use of a deadly weapon                 
  would not be eligible for  this option.  The emphasis is  on                 
  nonviolent offenders.    The Department  of Corrections  has                 
  requested that the maximum age limit be raised to 30 years.                  
                                                                               
  Representative  Willis  noted that  at  least 24  states, in                 
  addition  to  the  federal  government,  operate  boot  camp                 
  programs.    Each  state  offers  the program  to  different                 
  groups.  For example, in 1993 Virginia's program was limited                 
  to nonviolent male felony offenders 24 years of age or under                 
  and did not allow felons  convicted of murder, manslaughter,                 
  kidnapping,  sexual assault,  etc.,  to participate  in  the                 
  program.    Massachusetts' program,  in  1993, was  for male                 
  offenders under the age  of 40.  In recent  testimony before                 
  committees in the  United States Congress, Kathleen  Hawk of                 
  the Department of Justice mentioned that  as of 30 September                 
  1994, over one  thousand federal inmates had  graduated from                 
  the federal Intensive Confinement Center/boot camp program.                  
                                                                               
  Representative  Willis emphasized  that  the Department  has                 
  revised its 1995 fiscal note to  zero due to the possibility                 
  of federal funds for both  construction and operating costs.                 
  Savings from  this legislation could  be seen within  two to                 
  three years.  The program  involves intensive staff time and                 
  follow-up through parole and probation.   He maintained that                 
                                                                               
                                8                                              
                                                                               
                                                                               
  the expenditures are  well spent if  offenders learn how  to                 
  structure  their  lives  and  recidivism  is  reduced.    He                 
  stressed that  a  boot camp  program  has the  potential  of                 
  providing many long-term benefits.                                           
                                                                               
  Representative Brown noted  that the Committee  was provided                 
  with a proposed committee substitute, Work Draft 9-LS0016\M,                 
  dated  4/10/96  (copy  on  file).    She  observed that  the                 
  proposed   committee  substitute   would  provide   for  the                 
  operation of a boot camp from July 1, 1996 to June 30, 1997.                 
  Representative Willis observed  that the time frame  may not                 
  be sufficient.                                                               
                                                                               
  Representative  Brown  pointed  out  that fiscal  funds  are                 
  anticipated in the federal fiscal year 1996.                                 
                                                                               
  BILL PARKER, DEPUTY COMMISSIONER, DEPARTMENT OF  CORRECTIONS                 
  anticipated  that  the  program  would  be  implemented with                 
  federal funds.  He  did not know if the time  frame could be                 
  met.                                                                         
                                                                               
  Co-Chair  Hanley  observed  that no  general  fund  match is                 
  requested.     Mr.   Parker  stated   that  the   Department                 
  anticipates that the  campus and  buildings provided by  the                 
  State will be counted as the match.                                          
                                                                               
  Representative  Mulder  noted  that the  proposed  committee                 
  substitute is drafted so that if the federal government does                 
  require a cash  match that the State  would not participate.                 
  He  noted  that  the Department  received  a  $50.0 thousand                 
  dollar federal grant to study the proposal.                                  
                                                                               
  Representative Mulder referred to page 2, lines 18 - 21.  He                 
  noted  that  regulations must  include  provisions requiring                 
  prisoners  to   reimburse  the Department  for the  costs of                 
  participating  in  the  boot camp  program.   Representative                 
  Willis clarified that  the program is voluntary.  Mr. Parker                 
  noted  that  prisoners  who  complete  the program  will  be                 
  eligible for parole earlier.                                                 
                                                                               
  Representative  Martin  questioned if  there  would be  many                 
  volunteers.    Mr.  Parker  noted  that 50  prisoners  could                 
  participate.   He  acknowledged the  percentage  of indigent                 
  prisoners.   The cost of the  program would be approximately                 
  $85 dollars a  day.  He  observed that regulations have  not                 
  been drafted.  He agreed that  most inmates could not afford                 
  the  program.   Representative  Kelly  stressed that  family                 
  support  may  be  possible.   He  spoke  in  support of  the                 
  program.                                                                     
                                                                               
  Co-Chair  Hanley  questioned  if  other  state's charge  for                 
  participation in boot camp programs.                                         
                                                                               
                                9                                              
                                                                               
                                                                               
  Representative  Brown  noted  that  inmates  are   currently                 
  charged  for  medical  services  in  halfway  houses.    She                 
  suggested that "must" be changed to "may" and the Department                 
  be allowed to setup a system for reimbursement.                              
                                                                               
  Representative  Mulder  agreed that  the  program  should be                 
  financially  supported.    He  noted  that families  may  be                 
  willing to pay some cost.  He stressed that the total amount                 
  would too much  for must families.   He spoke in  support of                 
  the requirement  that a  reasonable portion  of the  cost be                 
  reimbursed.   Representative Kelly emphasized that  the cost                 
  should be  reasonable so  that inmates  are not  discouraged                 
  from participation.                                                          
                                                                               
  Representative Martin stated that the  program would be more                 
  costly    than    incarceration    in   other    facilities.                 
  Representative Willis stressed that savings will be realized                 
  through the transfer from hard to soft beds.  He  added that                 
  sentences will be shorted as a result of the program.                        
                                                                               
  Representative  Therriault  stressed that  the  program will                 
  help to rehabilitate inmates.  Representative  Mulder stated                 
  that the program will be a cost avoidance measure if inmates                 
  are rehabilitated and do not reenter  the system.  He agreed                 
  that the per day cost per inmate will be greater.                            
                                                                               
  Representative Mulder MOVED to adopt  Work Draft 9-LS0016\M,                 
  dated 4/10/96.  There being NO OBJECTION, it was so ordered.                 
                                                                               
  Representative Brown MOVED to delete "must" and insert "may"                 
  on page  2, line 19;  and insert a  "portion of" on  page 2,                 
  line  20.     She   explained  that   the  amendment   would                 
  acknowledged that it  is not reasonable  for inmates to  pay                 
  the entire  cost of the  program, but  that some  reasonable                 
  charge is appropriate.                                                       
                                                                               
  Representative  Therriault suggested  that  the change  from                 
  "must" to "may" was unnecessary.  Representative Brown MOVED                 
  to AMEND Amendment 1  by deleting the change from  "must" to                 
  "may".  There being NO OBJECTION, it was so ordered.                         
                                                                               
  Representative Martin observed that a portion  can vary.  He                 
  expressed concern  with the  requirement to  charge for  the                 
  program.                                                                     
                                                                               
  Representative Brown noted that the Department "shall" adopt                 
  regulations.    She  stressed  the   time  needed  to  adopt                 
  regulations.  She  asked if  regulations  are  necessary for                 
  implementation  of a  fee  schedule.   She  stated that  the                 
  adoption of regulations could  take at least 6 to  8 months.                 
  She  noted  that  the Department  can  operate  if there  is                 
                                                                               
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  statutory authority.  Co-Chair Hanley added that regulations                 
  would not be needed if payments are not required.                            
                                                                               
  Representative Brown stressed that the most expedient way to                 
  allow the Department to  implement a pilot program would  be                 
  to state that  the commissioner "may" adopt  regulations and                 
  that regulations "may" include charges.                                      
                                                                               
  Representative Brown WITHDREW her motion to amend HB 2.                      
                                                                               
  Representative Mulder suggested that the completion dated be                 
  changed  to September 30,  1997 to match  the federal fiscal                 
  year on page 2, line 14 and page 3, line 17.                                 
                                                                               
  Representative Mulder MOVED  to delete  "June 30, 1997"  and                 
  insert  "September 30, 1997" on page 2,  line 14 and page 3,                 
  line 17.  Representative Brown spoke  in support of a longer                 
  extension.   She added that the legislation could be subject                 
  to  the availability of federal  funds.  She maintained that                 
  as long as  the federal government is  providing funding the                 
  project  should  be  fully  developed.   She  observed  that                 
  renovations at  the Wildwood Correctional Facility will cost                 
  $2.0  million dollars.   She  suggested that the  program be                 
  tied to the availability of federal  dollars and no limit or                 
  a five year limit be added.                                                  
                                                                               
  (Tape Change, HFC 96-112, Side 1)                                            
                                                                               
  Co-Chair  Hanley  noted  that a  conceptional  amendment was                 
  needed.  He stressed that the intent is that the  program be                 
  implemented  only  if federal  funds  are available  for the                 
  entire program, including capital and operational costs.                     
                                                                               
  Representative  Willis   noted  that   the  Department   has                 
  requested that the age limit be changed from 26 to 30 years.                 
                                                                               
                                                                               
  Representative Kohring spoke in  support of the legislation.                 
  He  noted  that permanent  fund  dividend payments  could be                 
  attached to pay for part of  an inmates participation in the                 
  program.    He  noted  that   previous  programs  have  been                 
  successful in  Alaska.   He agreed  that federal  funding is                 
  critical.                                                                    
                                                                               
  Representative Brown emphasized  that the legislation should                 
  not preclude future  opportunities.  She suggested  that the                 
  legislature   should  be   able   to   consider  making   an                 
  appropriation.                                                               
                                                                               
  Co-Chair Hanley spoke against  the appropriation of  general                 
  funds.   Representative Brown  spoke in support of  a 3 to 5                 
  year  sunset.    She added  that  the  legislation could  be                 
                                                                               
                               11                                              
                                                                               
                                                                               
  subject  to  federal  funds  or   a  specific  general  fund                 
  appropriation.   She observed  that prisoner  payments could                 
  provide  the  state match.    She  spoke in  support  of the                 
  program.  She maintained that one year is too short.                         
                                                                               
  Mr. Parker stated  that the Department now  anticipates that                 
  the federal government will provide  capital and operational                 
  costs.                                                                       
                                                                               
  Representative Mulder asked if the boot camp must be located                 
  in  a  state  correctional  facility.    He  emphasized  the                 
  increased cost of a correctional facility.   Mr. Parker felt                 
  that the facility would have to  be part of the correctional                 
  system.  He noted that the  Department intends to locate the                 
  camp  in buildings  outside  of the  fence  at the  Wildwood                 
  Correctional  Facility.     He  did  not  know   if  federal                 
  guidelines require the camps to  be a correctional facility.                 
  Representative  Brown pointed  out  that halfway  houses are                 
  correctional facilities  under contract.  The  bill provides                 
  for contract of operations on page 2, subsection (f).                        
                                                                               
  HB 2 was HELD in Committee for further consideration.                        
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:05 a.m.                                          
                                                                               
                                                                               
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