Legislature(2005 - 2006)

05/07/2005 06:12 PM FIN


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                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 7, 2005                                                                                             
                         6:12 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 6:12:51 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Eric Croft                                                                                                       
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Les   Gara;  Representative   Beth  Kerttula;                                                                   
Representative Ethan  Berkowitz; Representative  Paul Seaton;                                                                   
Melanie  Lesh,  Staff,  Senator Gary  Stevens;  Randy  Bates,                                                                   
Deputy   Director,   Division   of   Project   Management   &                                                                   
Permitting,  Department  of Natural  Resources;  Judy  Brady,                                                                   
Executive  Director, Alaska  Oil and  Gas Association;  Chris                                                                   
Poag,  Assistant Attorney  General,  Department  of Law;  Dr.                                                                   
Richard  Mandsager,  Director,  Division  of  Public  Health,                                                                   
Department of  Health & Social  Services; Joe  Balash, Staff,                                                                   
Senator Gene Therriault; Jerry  Burnett, Legislative Liaison,                                                                   
Department  of   Revenue;  Mark  Hickey,   Lobbyist,  Juneau;                                                                   
Michael  Macleod  Bull, Executive  Director,  American  Civil                                                                   
Liberties Union  (ACLU); Marie Darlin, Alaska  Association of                                                                   
Retired Persons  (AARP); Amy  Oney, Assisted Living  Industry                                                                   
Home-Owner,  Anchorage;   Stacy  Kraly,  Assistant   Attorney                                                                   
General, Department of Law                                                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Sherry Mettler, Assisted Living Industry, Fairbanks                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 37     An Act relating to public access to fishing                                                                           
          streams.                                                                                                              
                                                                                                                                
          CS HB 37 (FIN) was reported out of Committee with                                                                     
          a "no recommendation"  and with zero note #1 by the                                                                   
          Department  of Fish & Game  and a new zero  note by                                                                   
          the House  Finance Committee for the  Department of                                                                   
          Natural Resources.                                                                                                    
                                                                                                                                
CS SB 102(FIN) am                                                                                                               
          An  Act  repealing the  Alaska  coastal  management                                                                   
          program;  relating to an  extension for  review and                                                                   
          approval   of  revisions  to  the   Alaska  coastal                                                                   
          management   program;  relating   to  reviews   and                                                                   
          modifications   by   the  Department   of   Natural                                                                   
          Resources;  relating to  coastal resource  district                                                                   
          policies;  providing   for  an  effective  date  by                                                                   
          amending  the effective  date of  sec. 45,  ch. 24,                                                                   
          SLA 2003; and providing for an effective date.                                                                        
                                                                                                                                
          HCS CS  SB 102 (FIN) was reported  out of Committee                                                                   
          with a "do pass" recommendation  and with zero note                                                                   
          #2  by  the  Department of  Commerce,  Community  &                                                                   
          Economic   Development,   zero  note   #3  by   the                                                                   
          Department  of Administration, zero note  #4 by the                                                                   
          Department   of  Environmental   Conservation   and                                                                   
          fiscal  note  #5  by   the  Department  of  Natural                                                                   
          Resources.                                                                                                            
                                                                                                                                
CS SB 124(L&C)                                                                                                                  
          An  Act  relating  to requirements  to  obtain  and                                                                   
          maintain a fisheries  business license; relating to                                                                   
          security  required of  fish processors and  primary                                                                   
          fish buyers; and providing for an effective date.                                                                     
                                                                                                                                
          HCS CS  SB 124 (FIN) was reported  out of Committee                                                                   
          with  a "no recommendation"  and with zero  note #2                                                                   
          by   the  Department   of  Commerce,  Community   &                                                                   
          Economic   Development,   zero  note   #3  by   the                                                                   
          Department  of Fish & Game,  zero notes #4 &  #5 by                                                                   
          the  Department of  Labor  & Workforce  Development                                                                   
          and zero note #6 by the Department of Revenue.                                                                        
                                                                                                                                
CS SB 125(JUD)                                                                                                                  
          An  Act  relating  to  the  licensing,  regulation,                                                                   
          enforcement,   and  appeal  rights   of  ambulatory                                                                   
          surgical  centers,  assisted  living  homes,  child                                                                   
          care facilities,  child placement  agencies, foster                                                                   
          homes,  free-standing  birth centers,  home  health                                                                   
          agencies,  hospices or  agencies providing  hospice                                                                   
          services or operating  hospice programs, hospitals,                                                                   
          intermediate  care   facilities  for  the  mentally                                                                   
          retarded,  maternity   homes,  nursing  facilities,                                                                   
          residential  child   care  facilities,  residential                                                                   
          psychiatric  treatment  centers, runaway  shelters,                                                                   
          and  rural health clinics;  relating to  possession                                                                   
          of a  firearm at licensed entities  and facilities;                                                                   
          relating  to criminal  history requirements,  and a                                                                   
          registry,      regarding     certain      licenses,                                                                   
          certifications,  approvals,  and authorizations  by                                                                   
          the  Department  of  Health  and  Social  Services;                                                                   
          making conforming amendments;  and providing for an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          HCS CS  SB 125 (FIN) was reported  out of Committee                                                                   
          with  "individual"  recommendations  and with  zero                                                                   
          note  #2  by  the Department  of  Health  &  Social                                                                   
          Services  and zero  note  #3 by  the Department  of                                                                   
          Law.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 37                                                                                                             
                                                                                                                                
     An Act relating to public access to fishing streams.                                                                       
                                                                                                                                
6:13:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LES GARA, SPONSOR,  noted that Alaska's rivers                                                                   
are  a treasured  resource for  fishermen, boaters,  hunters,                                                                   
hikers and people  of all walks of life.  It  is important to                                                                   
protect  the public's  access  to them.   HB  37 attempts  to                                                                   
ensure future  public access to  Alaska's fishing  streams by                                                                   
putting  in place a  mechanism for  voluntary land  exchanges                                                                   
(or purchases)  between  the State and  private owners  along                                                                   
important  recreational   rivers.    The  program   would  be                                                                   
facilitated by the Department  of Natural Resources and would                                                                   
be completely voluntary.  The  purchases or trades would only                                                                   
occur if a landowner  was willing to engage in  trade or sale                                                                   
voluntarily.                                                                                                                    
                                                                                                                                
Representative Gara stated that  there are large stretches of                                                                   
private land  on streams  such as  Anchor River, Deep  Creek,                                                                   
Parks  Highway Streams,  the Salcha  River and  others.   The                                                                   
public  currently   uses  the  streams  and   once  they  are                                                                   
developed, public  access will  never get them  back.   HB 37                                                                   
requires the  State to identify  private lands  along certain                                                                   
high value  recreational waters  for possible easement,  land                                                                   
purchases or trades.                                                                                                            
                                                                                                                                
Representative  Gara continued,  to avoid costly  litigation,                                                                   
the State  must use  its expertise  within the Department  of                                                                   
Fish  and Game  and the  Department of  Natural Resources  to                                                                   
identify  the most  desirable  lands for  purchase or  trade,                                                                   
after  public input.    The bill  does  not  allow for  legal                                                                   
challenges of those determinations.                                                                                             
                                                                                                                                
Other states have  waited too long to take  steps as proposed                                                                   
in HB  37.  In  Montana, for example,  fishermen have  to pay                                                                   
for  public access  to  some rivers  and  one hundred  eighty                                                                   
miles of the  Missouri River has been lost  to public access.                                                                   
Now that state budgets $300 thousand  dollars per year to buy                                                                   
back parcels of riverbank land.                                                                                                 
                                                                                                                                
Representative  Gara concluded that  HB 37 would  help insure                                                                   
that  unparalleled recreational  opportunities  in the  river                                                                   
corridors  remain accessible.    It provides  that the  State                                                                   
maintain  a  registry   of  lands  for  possible   trades  or                                                                   
purchase.  The  bill does not mandate any funding  for trades                                                                   
or  purchases,  and  therefore  would lapse  once  the  State                                                                   
determines there  is no  longer a need  to trade  or purchase                                                                   
public access.                                                                                                                  
                                                                                                                                
6:15:21 PM                                                                                                                    
                                                                                                                                
Representative  Joule asked how  the legislation  would apply                                                                   
to Native  land and allotments.   Representative  Gara stated                                                                   
it would apply  to everyone equally.  The  language clarifies                                                                   
that if  there is  land along  a fishing  stream and  land to                                                                   
trade, it  could be done.   The State  cannot take  or demand                                                                   
land, but could offer a land trade.                                                                                             
                                                                                                                                
6:16:21 PM                                                                                                                    
                                                                                                                                
Representative Hawker questioned  the amount of fiscal effort                                                                   
to implement  the bill.   Representative Gara  explained that                                                                   
the bill clarifies that the Department  will create a list of                                                                   
lands  important  for public  access.    It will  take  title                                                                   
research  work.   Over the  next  few years,  the State  will                                                                   
attempt  to either  purchase or  make  land-trades from  that                                                                   
list.   He did not  see much work  happening after  the first                                                                   
year  and  believed  it could  be  handled  through  existing                                                                   
staff.                                                                                                                          
                                                                                                                                
6:17:44 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  asked about  possible  easement  right                                                                   
backlash, acknowledging a conflict.   Representative Gara did                                                                   
not think that could change current  concerns.  At this time,                                                                   
it is  okay to close  off sections of  land.  The  State does                                                                   
have  the authority  to negotiate  certain  places and/or  to                                                                   
purchase,  while  the legislation  attempts  to  make a  more                                                                   
focused effort.                                                                                                                 
                                                                                                                                
6:19:53 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze inquired  if  any designations  had  been                                                                   
made.   Representative Gara  pointed out  areas close  to the                                                                   
road system such  as the Parks Highway and some  on the Kenai                                                                   
Peninsula  had been  selected.    Much of  that  land is  now                                                                   
Native  Corporation land.   There is  a provision  protecting                                                                   
that land and he clarified that  the State would not be using                                                                   
eminent  domain  power,  only  voluntary.    Some  lands  are                                                                   
private.   Before  the 1970's,  the State  did not  guarantee                                                                   
public access as it does now.                                                                                                   
                                                                                                                                
6:21:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  requested  further  testimony  regarding                                                                   
easements and federal provisions  for access.  Representative                                                                   
Gara interjected  that if federal easements  already existed,                                                                   
the State would  not bother.  The legislation  only addresses                                                                   
areas that the public does not have access to.                                                                                  
                                                                                                                                
6:22:30 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  questioned the "voluntary  situation" and                                                                   
asked about  a cost  benefit analysis.   Representative  Gara                                                                   
advised  that the  priority  aims at  lands  with high  value                                                                   
fishery and where public access  does not exist.  There is no                                                                   
formal appeal process.                                                                                                          
                                                                                                                                
6:23:33 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Stoltze   worried   about  the   areas   chosen.                                                                   
Representative  Gara explained  that  the  Kenai River  Sport                                                                   
Fishing  Association  has requested  certain  areas.   HB  37                                                                   
leaves  it  up to  the  Department  of Natural  Resources  to                                                                   
determine  any  access that  is  appropriate  to enhance  the                                                                   
sport fishery.   The factors used  to make the  decisions are                                                                   
listed on Page 3, starting on Line 6.                                                                                           
                                                                                                                                
6:25:08 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  noted that he  is a member of  an outdoor                                                                   
group and asked if the Department  of Fish & Game was already                                                                   
doing that work.   Representative Gara acknowledged  that was                                                                   
the  intent, however,  little progress  has been  made.   The                                                                   
Department has  not made  it a priority.   The intent  of the                                                                   
bill is  to "shake" the Department  up so that  public access                                                                   
is not lost.                                                                                                                    
                                                                                                                                
6:26:22 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze inquired  about  the Department's  budget                                                                   
process.  Representative  Gara stated he had  worked directly                                                                   
with the Department and if it  were not made a priority, they                                                                   
would not do it.                                                                                                                
                                                                                                                                
Representative Holm acknowledged  that there was no desire by                                                                   
the Department  to address  anything that  was not  listed on                                                                   
their  priority   list.    He   reminded  members   that  the                                                                   
Legislature cannot mandate, they can only appropriate.                                                                          
                                                                                                                                
6:28:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze voiced  concern with  the type of  access                                                                   
being proposed for fishing and  hunting.  Representative Gara                                                                   
noted  that  he  had voted  for  the  University  lands  bill                                                                   
because it  required that the  University not give  away land                                                                   
before knowing if there would  be public access to any rivers                                                                   
or streams  that have fish.  He  claimed that there  is not a                                                                   
good land title system in the State.                                                                                            
                                                                                                                                
6:29:41 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  wondered  if  there was  a  conflict  of                                                                   
interest  with  his  involvement   with  the  Alaska  Outdoor                                                                   
Council (AOC).   Co-Chair Meyer asked if that  group supports                                                                   
the bill.  Vice-Chair Stoltze  replied they have not to date.                                                                   
Representative  Gara  pointed  out  that  the  largest  sport                                                                   
fishing  groups statewide  support  the bill,  but could  not                                                                   
speak for the Alaska Outdoor Council.                                                                                           
                                                                                                                                
6:30:58 PM                                                                                                                    
                                                                                                                                
Representative Holm  pointed out statewide concern,  as there                                                                   
has not been a complete survey of those lands.                                                                                  
                                                                                                                                
6:31:50 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  referenced   Page  2,  Lines  3  &  4,                                                                   
regarding  the protections.   He  thought that  to get  AOC's                                                                   
support,  insert,  and  "trapping   "following"  hunting  and                                                                   
fishing help.  Representative Gara agreed.                                                                                      
                                                                                                                                
6:33:06 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze commented that  "multiple-use" has varying                                                                   
meanings  depending  on  the   group.    Representative  Gara                                                                   
pointed out  that Page 3,  Lines 7-10, defines  public access                                                                   
broadly, including  many purposes.  He noted that  it was not                                                                   
his intent to divert the Department from waterways.                                                                             
                                                                                                                                
6:35:49 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  suggested  amending  the  language  by                                                                   
adding other uses.                                                                                                              
                                                                                                                                
6:37:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to DELETE Section  #1, the Findings                                                                   
and Intent section, Amendment #1.  Co-Chair Meyer OBJECTED.                                                                     
                                                                                                                                
Representative  Gara  explained  that  Section  #1  had  been                                                                   
drafted to give the Department  guidance to alleviate concern                                                                   
of private  landowners  and give  those landholders  comfort.                                                                   
He reiterated  that the bill  only deals with  voluntary land                                                                   
trades and purchases.                                                                                                           
                                                                                                                                
6:38:59 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  agreed  with  Vice-Chair  Stoltze,                                                                   
suggesting that  the language could  be added as a  Letter of                                                                   
Intent  to accompany  the  bill rather  than  an actual  bill                                                                   
section.                                                                                                                        
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, Amendment #1 was adopted.                                                                                    
                                                                                                                                
6:39:42 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  reiterated   his  recommendation  that                                                                   
multiple use language be added.                                                                                                 
                                                                                                                                
6:40:20 PM                                                                                                                    
                                                                                                                                
Representative Hawker discussed  the fiscal note and the cost                                                                   
of operations and MOVED that the fiscal note be zeroed out.                                                                     
                                                                                                                                
There being NO OBJECTION, fiscal note #2 was zeroed out.                                                                        
                                                                                                                                
6:41:39 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze MOVED  to REPORT  CS HB  37 (FIN) out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB  37 (FIN)  was  reported  out  of Committee  with  "no                                                                   
recommendation" and  with zero note  #1 by the  Department of                                                                   
Fish  &  Game and  a  new  zero  note by  the  House  Finance                                                                   
Committee for the Department of Natural Resources.                                                                              
                                                                                                                                
6:42:34 PM                                                                                                                    
CS FOR SENATE BILL NO. 102(FIN) am                                                                                            
                                                                                                                                
     An Act repealing the Alaska  coastal management program;                                                                   
     relating  to an  extension  for review  and approval  of                                                                   
     revisions  to  the Alaska  coastal  management  program;                                                                   
     relating to reviews and modifications  by the Department                                                                   
     of  Natural  Resources;  relating  to  coastal  resource                                                                   
     district  policies; providing for  an effective  date by                                                                   
     amending  the effective  date of  sec. 45,  ch. 24,  SLA                                                                   
     2003; and providing for an effective date.                                                                                 
                                                                                                                                
MELANIE  LESH, STAFF,  SENATOR GARY STEVENS,  noted that  the                                                                   
Alaska  Coastal Management  Program (ACMP)  is a  partnership                                                                   
between  federal, state,  and local  governments providing  a                                                                   
voice  in  federal decision-making.    Alaska  is one  of  34                                                                   
coastal  states  that  utilize the  program,  which  annually                                                                   
channels millions  of dollars in  federal grant money.   ACMP                                                                   
has helped guide  coastal development in Alaska  since it was                                                                   
enacted  in 1977  and without  the program,  State and  local                                                                   
governments  lose their  ability  to control  development  on                                                                   
federal land and  the outer continental shelf.   In addition,                                                                   
the State  will lose millions  in federal coastal  management                                                                   
planning money.                                                                                                                 
                                                                                                                                
In  2003, HB  191  substantially  revised the  State  coastal                                                                   
program.   The federal Office  of Ocean and Coastal  Resource                                                                   
Management  (OCRM) must  approve  the revised  program.   The                                                                   
2003   legislation  included   state-imposed  deadlines   for                                                                   
revisions to local  coastal programs.  Coastal  districts are                                                                   
attempting  to  follow  the  statutory  directive  to  revise                                                                   
programs to  meet the new  requirements, but have  repeatedly                                                                   
said that they need more time to complete that process.                                                                         
                                                                                                                                
Ms. Lesh noted that the version  before the Committee extends                                                                   
the existing statutory deadline  for district coastal program                                                                   
submissions by eight months and  a correlative delay in dates                                                                   
annulling  existing  standards  and program  until  March  1,                                                                   
2007.  The  extensions would ensure an orderly  and efficient                                                                   
transition to the new program.                                                                                                  
                                                                                                                                
Ms. Lesh advised  that the House Resources  Committee amended                                                                   
the  bill  setting a  "kill  date"  ending the  Coastal  Zone                                                                   
Program entirely  if OCRM approval does not  occur by January                                                                   
1, 2006.  That  date is the deadline in which  the Department                                                                   
has  assured the  Legislature,  OCRM will  have approved  the                                                                   
(NEPA)   National  Environmental   Protection   Act  or   the                                                                   
Environmental  Impact  Statement  (EIS)  process of  the  new                                                                   
State  coastal  program.   That  section  puts in  place  the                                                                   
repealing  and sunset  clauses.   An amendment  in the  House                                                                   
Resources Committee  allowed those provisions to  take effect                                                                   
after  May 10,  2006, which  leaves the  Legislature time  to                                                                   
act, if  necessary,  to extend  the sunset  dates of the  old                                                                   
coastal management program.                                                                                                     
                                                                                                                                
6:46:46 PM                                                                                                                    
                                                                                                                                
JOE BALASH, STAFF, SENATOR GENE  THERRIAULT, pointed out that                                                                   
the House Resources Committee substitute made five changes:                                                                     
                                                                                                                                
   ·    Extends the deadline in accordance with what the                                                                        
        Governor indicated he would support;                                                                                    
   ·    Provides for a sunset and audit four years after the                                                                    
        full implementation of the changes;                                                                                     
   ·    Adds language regarding the adoption by reference of                                                                    
        State statute regulations as well as federal                                                                            
        regulations;                                                                                                            
   ·    Changed the old district programs; and                                                                                  
   ·    Provides a specific deadline for the Department to                                                                      
        update their "ABC" list.                                                                                                
                                                                                                                                
6:49:16 PM                                                                                                                    
                                                                                                                                
Representative Croft  questioned a provision  indicating that                                                                   
the  entire  program  would  be  eliminated  if  the  federal                                                                   
government  did not approve  it.   Mr. Balash explained  that                                                                   
            st                                                                                                                  
the  July  1   deadline  was   "keyed"  from  what  the  feds                                                                   
indicated they intended to.  It  takes approximately 14-weeks                                                                   
                                         st                                                                                     
to complete an EIS.  Given the  January 1  date, there should                                                                   
be  enough time  for  Office of  Ocean  and Coastal  Resource                                                                   
Management (OCRM)  to engage in the commitments  they made to                                                                   
the State of Alaska.  The date  that the sunset and/or appeal                                                                   
                            th.                                                                                                 
takes  affect   is  May   10.      That  date   provides  the                                                                   
Legislature an entire session  to deal with the ramifications                                                                   
if OCRM fails to  approve the program.  He indicated  that it                                                                   
resulted  from  Section 22,  crafted  in the  House  Resource                                                                   
Committee.                                                                                                                      
                                                                                                                                
6:51:47 PM                                                                                                                    
                                                                                                                                
                                                   st                                                                           
Representative Croft understood  that the January 1  date was                                                                   
not problematic.   He asked  why the  State would want  to be                                                                   
placed in  that consequence,  given that  the program  is the                                                                   
only  way  which  the  State   can  have  impact  on  federal                                                                   
decision-making.   Mr.  Balash explained  that date had  been                                                                   
chosen because  other dates in  earlier sections of  the bill                                                                   
                     st                                                                                                         
returned  to March  1   either 2006  or 2007.    In order  to                                                                   
satisfy the  Governor's requirement for the  6-months, grants                                                                   
additional time for districts  to revise plans for review and                                                                   
approval.                                                                                                                       
                                                                                                                                
6:53:30 PM                                                                                                                    
                                                                                                                                
RANDY BATES, DEPUTY DIRECTOR,  DIVISION OF PROJECT MANAGEMENT                                                                   
& PERMITTING,  DEPARTMENT  OF NATURAL  RESOURCES, offered  to                                                                   
answer questions of the Committee.                                                                                              
                                                                                                                                
Co-Chair  Meyer  asked about  the  fiscal  note.   Mr.  Bates                                                                   
explained that by extending the  coastal district submissions                                                                   
deadline, it  would extend the  time frame that it  takes the                                                                   
Department  to review and  approve plans.   The revision  was                                                                   
                          th                                                                                                    
supposed to occur  June 30  2006.  There are  currently funds                                                                   
to  accommodate staff  review  coastal district  plans.   The                                                                   
                                th                                                                                              
remaining money runs out June  6,  2006.  In order to be able                                                                   
to  accommodate  and  review those  decisions,  the  Division                                                                   
needs three staff for eight months  as requested in the note.                                                                   
                                                                                                                                
6:55:56 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  noted  an  amendment  included  in  member's                                                                   
packets, which  would extend the  program.  He asked  if that                                                                   
would increase  costs.  Mr.  Bates replied that  Amendment #1                                                                   
would not impact the fiscal note.                                                                                               
                                                                                                                                
6:56:24 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  questioned if the employees  are currently                                                                   
on staff.                                                                                                                       
                                                                                                                                
6:56:43 PM                                                                                                                    
                                                                                                                                
Mr. Bates corrected previous comments,  noting that Amendment                                                                   
#1 significantly impacts the note.                                                                                              
                                                                                                                                
6:57:04 PM                                                                                                                    
                                                                                                                                
Representative Holm asked if the  employees were currently on                                                                   
staff.  Mr. Bates stated they  are currently on staff and the                                                                   
request keeps them there for an additional eight months.                                                                        
                                                                                                                                
JUDY   BRADY,  EXECUTIVE   DIRECTOR,  ALASKA   OIL  AND   GAS                                                                   
ASSOCIATION (AOGA),  ANCHORAGE, stated that "they  could live                                                                   
with the version  of the bill" adopted by the  House Resource                                                                   
Committee.    She  noted  that   AOGA  had  opposed  possible                                                                   
extensions for a  number of reasons and that  they would like                                                                   
to see HB 191  implemented.  Ms. Brady added  that AOGO would                                                                   
support the bill but could not support any other extension.                                                                     
                                                                                                                                
6:59:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  inquired  why  they would  not  support  any                                                                   
further extensions.   Ms. Brady advised that  AOGA would like                                                                   
to  see OCRM  finish their  work.   The  initial program  was                                                                   
voluntary.     The  needs   of  the   program  have   changed                                                                   
dramatically  in the past  thirty years.   Passage of  HB 191                                                                   
recognizes the  differences and  refocuses the program.   She                                                                   
noted delays on  the State side.  OCRM has not  supported any                                                                   
of the changes and has deliberately  "dragged their feet" for                                                                   
implementation.                                                                                                                 
                                                                                                                                
Representative  Croft  inquired about  the  current need  for                                                                   
coastal zone management plans.   Ms. Brady explained that the                                                                   
State  was interested  in  that  program during  the  1970's;                                                                   
however, today, those needs have  changed and HB 191 reflects                                                                   
that.   Some of the enforceable  policies are now  enacted in                                                                   
State,   federal   and/or   municipal   law.      There   are                                                                   
implementation  questions; AOGA does  not want to  go another                                                                   
three years before anything happens.   She emphasized that it                                                                   
should not be a federal program.                                                                                                
                                                                                                                                
7:04:34 PM                                                                                                                    
                                                                                                                                
Representative  Croft   inquired  how  did   "threatening  to                                                                   
withdraw from  the program" affect the relationship  with the                                                                   
federal government.   He  thought that  would be illegal  and                                                                   
problematic.   Ms. Brady  commented that  their attorney  had                                                                   
evaluated  OCRM's  arguments,  finding  them wrong  in  every                                                                   
instance.  No other  state in the Union has been  held to the                                                                   
standard that Alaska has.  The  Alaska program is a "jewel in                                                                   
the crown" of the federal agency  and coastal management is a                                                                   
big deal.   She believed  the federal government  would never                                                                   
let  the program  go and  that a  long implementation  period                                                                   
would negatively affect and jeopardize the program.                                                                             
                                                                                                                                
7:07:40 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  summarized  that  AOGA  supports  the  House                                                                   
Resources Committee date and does  not support the amendment.                                                                   
                                                                                                                                
Representative   Weyhrauch  MOVED   to   ADOPT  a   corrected                                                                   
Amendment  #1, Line  3 and  Line 7,  deleting "February"  and                                                                   
inserting  "March"   and  Line   11,  deleting   "March"  and                                                                   
inserting "April".  Vice Chair Stoltze OBJECTED.                                                                                
                                                                                                                                
Representative  Weyhrauch requested  that the record  reflect                                                                   
the true and accurate costs.                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON addressed Amendment  #1.  He  spoke in                                                                   
support of  SB 102,  which allows the  State to impose  their                                                                   
standards on  federal land.   Current dates indicated  in the                                                                   
bill  allow the  Legislature  time to  act.   If  it ends  on                                                                   
         st                                                                                                                     
January 1, the Legislature is removed from the loop.                                                                            
                                                                                                                                
Representative  Seaton spoke to  the fiscal note,  clarifying                                                                   
that  the way  in which  the program  works  is in  six-month                                                                   
                             st                                                                                                 
intervals.  Beginning  July 1,  the money could  only be used                                                                   
for implementation  of the preliminary approved  plan.  There                                                                   
is nothing  in regulation that  prevents the local  districts                                                                   
from continuing  to use funds  for developing  local district                                                                   
plans.  He highlighted  the process of review  and asked when                                                                   
it "goes away".                                                                                                                 
                                                                                                                                
7:15:45 PM                                                                                                                    
                                                                                                                                
Representative  Seaton   observed  it  would   leave  without                                                                   
approval. The  federal money would  remain and then  could be                                                                   
used for other activities for  local costal district plans to                                                                   
be written.   The federal money  cannot be used  for approval                                                                   
implementation after the initial six months.                                                                                    
                                                                                                                                
7:17:56 PM                                                                                                                    
                                                                                                                                
Mr.  Bates  added that  the  Amendment  could result  in  the                                                                   
fiscal note  being increased by  $467 thousand dollars.   The                                                                   
program received $2.8 million  federal dollars.  Amendment #1                                                                   
would provide  a two-month  extension.   He provided  a brief                                                                   
history.    OCRA has  been  preparing  for the  past  several                                                                   
                                                    st                                                                          
months  for  the  preliminary  approval  of  July  1,   2006.                                                                   
Preliminary approval  only extends  the time for  six months.                                                                   
          st                                                                                                                    
January  1  would  be the date  deadline in  which the  State                                                                   
could no  longer spend  monies on  the implementation  of the                                                                   
coastal program.   By extending the deadlines  as proposed in                                                                   
Amendment #1, the State agency  could access those funds.  In                                                                   
order to supplement  the money to guarantee  that the program                                                                   
works toward  change, the fiscal  note represents  the amount                                                                   
needed by the Division to keep employees working.                                                                               
                                                                                                                                
7:21:46 PM                                                                                                                    
                                                                                                                                
Representative  Croft questioned  why the federal  government                                                                   
would want to "shut off" the money.                                                                                             
                                                                                                                                
7:22:52 PM                                                                                                                    
                                                                                                                                
Mr. Bates  responded it is a  federal law, which  only allows                                                                   
for federal approval  for the six months; there is  no way to                                                                   
bend that extension past the six  months.  He reiterated that                                                                   
the State could no longer expend the federal funds.                                                                             
                                                                                                                                
In response to  further queries by Representative  Croft, Mr.                                                                   
Bates pointed out  that HB 191 change coastal  management and                                                                   
requires  implementation  of the  regulations.   The  coastal                                                                   
management program  is codified in HB 191.   The State cannot                                                                   
choose  to  alternatively  implement   another  program  that                                                                   
either the  Legislature has not  embraced or acted upon.   If                                                                   
                                              st                                                                                
OCRM does  not finish their work  by January 1,   2006, there                                                                   
are  no  more federal  funds  to  continue  implementing  the                                                                   
program.                                                                                                                        
                                                                                                                                
Mr. Bates added, the Administration opposes the amendment.                                                                      
                                                                                                                                
7:26:07 PM                                                                                                                    
                                                                                                                                
In response to a question by Representative  Croft, Mr. Bates                                                                   
                          th                                                                                                    
noted  that  on  April  14,   2005,  a  letter  was  received                                                                   
detailing  the  final  changes  needed for  approval  of  the                                                                   
coastal program.   The Division  is in the process  of making                                                                   
those regulatory changes.  He  provided information regarding                                                                   
timelines needed  for preliminary  approval.  Presently,  the                                                                   
program is basically approvable.                                                                                                
                                                                                                                                
7:28:21 PM                                                                                                                    
                                                                                                                                
Mr. Bates commented on why the  Administration objects to the                                                                   
time  extensions.    The  Governor  has  committed  to  three                                                                   
timeline extensions for coastal management:                                                                                     
                                                                                                                                
   ·    Extending the State standards                                                                                           
   ·    Extending the revised coastal plan deadline by six                                                                      
        months                                                                                                                  
   ·    Extending the district plan sunset deadline by six                                                                      
        months                                                                                                                  
                                                                                                                                
The extensions were tiered off  in HB 191 and included in the                                                                   
House Resources Committee version,  the one the supports.  He                                                                   
advised  that  the Division  and  the Administration  do  not                                                                   
support Amendment #1.                                                                                                           
                                                                                                                                
   ·    OCRM has  been preparing  for eight  months and  when                                                                   
        preliminary approval is  offered, it would  be within                                                                   
                                     thth                                                                                       
        that time frame.  On April 14  and  18,  an agreement                                                                   
        was made regarding  the need for additional  steps to                                                                   
        get e ACMP into a form under federal law.                                                                               
   ·    It is  expected  that  preliminary approval  will  be                                                                   
                      st                                                                                                        
        made by July 1, 2005.                                                                                                   
   ·    OCRM has  confirmed that  they can  and will  approve                                                                   
        NEPA within the six-month time frame.                                                                                   
   ·    Without a  deadline,  it  is  an invitation  for  the                                                                   
        federal government  to  delay approval  and hold  the                                                                   
        agency hostage.                                                                                                         
   ·    Extending  the  deadline   will  cost  the   State  a                                                                   
        significant amount of money.                                                                                            
   ·    The amendment forces  the Legislature  into emergency                                                                   
        action next year.  It is important  to recognize that                                                                   
        the structure  of  the committee  substitute  without                                                                   
        Amendment  #1,  provides  the  Legislature  authority                                                                   
        needed for approval of the coastal program.                                                                             
   ·    The Legislature  would have  the session to  evaluate                                                                   
        the position.                                                                                                           
                                                                                                                                
7:33:25 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Hawker, Holm, Kelly, Moses, Stoltze, Foster,                                                                     
               Meyer, Chenault                                                                                                  
OPPOSED:       Joule, Croft                                                                                                     
                                                                                                                                
Representative Weyhrauch was not present for the vote.                                                                          
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
7:35:42 PM                                                                                                                    
                                                                                                                                
Representative   Croft    stated   for   the    record   that                                                                   
Administration's  the  position would  hurt  all the  coastal                                                                   
communities.   He commented on  the risk damage and  hoped it                                                                   
would survive without too much trouble for the State.                                                                           
                                                                                                                                
7:36:56 PM                                                                                                                    
                                                                                                                                
Representative  Foster MOVED to  REPORT HCS  CS SB  102 (RES)                                                                   
out  of Committee  with individual  recommendations and  with                                                                   
the accompanying fiscal notes.   There being NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
HCS CS SB 102 (RES) was reported  out of Committee with a "do                                                                   
pass" recommendation and with  zero note #2 by the Department                                                                   
of Commerce, Community  & Economic Development,  zero note #3                                                                   
by  the Department  of Administration,  zero note  #4 by  the                                                                   
Department of  Environmental Conservation and fiscal  note #5                                                                   
by the Department of Natural Resources.                                                                                         
                                                                                                                                
7:37:22 PM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 124(L&C)                                                                                               
                                                                                                                                
     An Act relating  to requirements to obtain  and maintain                                                                   
     a  fisheries  business  license;  relating  to  security                                                                   
     required  of fish  processors and  primary fish  buyers;                                                                   
     and providing for an effective date.                                                                                       
                                                                                                                                
Vice-Chair Stoltze  MOVED to  ADOPT work draft  #24-GS1013\L,                                                                   
Utermohle,  5/6/05, as  the version  of the  bill before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
JERRY BURNETT,  LEGISLATIVE LIAISON,  DEPARTMENT OF  REVENUE,                                                                   
stated that SB 124 requires, as  a condition of obtaining and                                                                   
maintaining a fisheries business  license under AS 43.75.020,                                                                   
an acknowledgment of the obligation  to pay the taxes levied,                                                                   
Alaska Seafood  Marketing Institute (ASMI)  assessments under                                                                   
AS 16.51,  employment security  contributions under  AS 23.20                                                                   
and Alaska  Occupational, Safety,  and Health  Administration                                                                   
(OSHA) fines under  AS 18.60.  The bill proposes  to deny the                                                                   
applicant a fisheries  business license until  they have paid                                                                   
in full,  all  those taxes,  assessments, contributions,  and                                                                   
fines that are outstanding.                                                                                                     
                                                                                                                                
Mr.  Burnett  pointed out  that  the  bill also  repeals  and                                                                   
reenacts AS 44.25.040, requiring  the filing of a performance                                                                   
bond by  fish processors and primary  fish buyers.   The bond                                                                   
would  be more  accessible for  collection of  claims by  the                                                                   
Department  of Labor  and  Workforce Development  (DLWD)  for                                                                   
unpaid employment security contributions.   That action would                                                                   
be  achieved by  providing a  process for  the Department  to                                                                   
file  directly  with the  Commissioner  of Revenue,  a  claim                                                                   
against the bond instead of obtaining a court judgment.                                                                         
                                                                                                                                
Additionally, the bill preserves  existing statutory priority                                                                   
for use  of the bond  to pay  fishermen and employees  first.                                                                   
In order to  achieve that, the Department would  be obligated                                                                   
to return money  collected from the bond if  the processor or                                                                   
buyer  did not  replenish it  and the  fisherman or  employee                                                                   
obtained a final judgment against the bond.                                                                                     
                                                                                                                                
In conclusion, SB 124 provides  that if a bond is depleted by                                                                   
the  Department's claim,  the  fish processor  or fish  buyer                                                                   
would be subjected to an increased bonding requirement.                                                                         
                                                                                                                                
7:40:07 PM                                                                                                                    
                                                                                                                                
AT EASE:       7:41:38 PM                                                                                                     
RECONVENE:7:43:43 PM                                                                                                          
                                                                                                                                
Representative  Moses  MOVED  to  ADOPT  Amendment  #1,  #24-                                                                   
GS1013\I.2, Utermohle, 5/7/05.  Co-Chair Meyer OBJECTED.                                                                        
                                                                                                                                
7:44:00 PM                                                                                                                    
                                                                                                                                
MARK HICKEY,  LOBBYIST, JUNEAU, explained that  he represents                                                                   
two rural  boroughs with  significant  fishing activity.   He                                                                   
noted that  both client's  support and  urge prompt  passage.                                                                   
The current bill  deals with applicable local  fishery taxes.                                                                   
In  effect,  if the  bill  passes,  in  order to  retain  the                                                                   
license, there  are criterion  the processor must  be current                                                                   
on and  that includes local fishery  taxes.  The  section the                                                                   
amendment attempts to change is on Page 2, Lines 22-24.                                                                         
                                                                                                                                
Mr.  Hickey  explained why  the  amendment  was needed.    It                                                                   
replaces current  language with  new wording that  triggers a                                                                   
decision relating to the processor  paying taxes at the local                                                                   
jurisdiction.  One of two things could occur:                                                                                   
                                                                                                                                
   ·    Final judgment through the court; or                                                                                    
   ·    An administrative determination made by the                                                                             
        municipality regarding the unpaid fishery taxes,                                                                        
        certifying due process.                                                                                                 
                                                                                                                                
Mr. Hickey  stated without  the provision,  a final  judgment                                                                   
becomes  a lengthy  process to  obtain.    Incorporating  the                                                                   
amendment provides a quicker "trigger".                                                                                         
                                                                                                                                
7:48:48 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked if  the proposed language  would                                                                   
provide  a   final  administrative  determination   challenge                                                                   
during the legal  process.  Mr. Hickey said  during a typical                                                                   
process, payment  would be held  in escrow and  the mechanism                                                                   
would not be triggered.   He had no idea what  the end result                                                                   
would be;  however, the intent  is to determine  a reasonable                                                                   
and useful structure.                                                                                                           
                                                                                                                                
Co  Chair Meyer  requested legal  assistance  in response  to                                                                   
Representative Hawker's query.                                                                                                  
                                                                                                                                
7:50:59 PM                                                                                                                    
                                                                                                                                
CHRIS POAG,  ASSISTANT ATTORNEY  GENERAL, DEPARTMENT  OF LAW,                                                                   
commented that an administrative  appeal to the Supreme Court                                                                   
would address if the administrative  action was challenged in                                                                   
the Superior Court  and could result in a  different finding.                                                                   
He  spoke to  the State,  not municipal  law.   If a  license                                                                   
action were taken,  a final administrative decision  could be                                                                   
implemented.                                                                                                                    
                                                                                                                                
Representative   Hawker   noted  that   if   there  were   an                                                                   
administrative  determination  made at  the  final level,  it                                                                   
could  provide a  strong base  not  taking that  action.   He                                                                   
indicated support for Amendment #1.                                                                                             
                                                                                                                                
7:53:14 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  agreed,   noting  it  could  help  the                                                                   
municipality and raise the trust level.                                                                                         
                                                                                                                                
7:53:50 PM                                                                                                                    
                                                                                                                                
Mr. Poag  explained that  the difference  with the  political                                                                   
subdivision  administrative process,  the provision  provides                                                                   
administratively  before the State taxes  are used to  deny a                                                                   
license.  There  are processes used before the  final penalty                                                                   
affects  the  license.    When   the  Department  of  Revenue                                                                   
receives the notice  from a political subdivision,  they have                                                                   
to refer  that to  the Department  of Law  to provide  a case                                                                   
analysis,  which   requires  that   the  Department   of  Law                                                                   
determine if the procedural safeguards  were provided.  It is                                                                   
important that  when an  administrative process takes  place,                                                                   
taxes owing cannot  be relied upon unless the  taxpayer knows                                                                   
that  their  license may  be  affected.   Such  action  could                                                                   
trigger a review necessary by the Department of Law.                                                                            
                                                                                                                                
Mr.  Poag advised  if  the  amendment were  implemented,  the                                                                   
Department  would  need  to deal  with  the  State's  hearing                                                                   
process regarding unmet concerns.                                                                                               
                                                                                                                                
7:56:52 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze asked  if the process  could be  simpler.                                                                   
Mr. Poag stated  that the way the amendment  was drafted, the                                                                   
political  subdivision presents  the  Department of  Revenue,                                                                   
the administrative finding.  If  there were a sufficient base                                                                   
to  deny that  license,  they  would  be afforded  a  hearing                                                                   
before  it  could be  denied.    The  burden falls  upon  the                                                                   
Department of Revenue and that causes concern.                                                                                  
                                                                                                                                
7:58:43 PM                                                                                                                    
                                                                                                                                
Representative  Hawker inquired if  there was any  reason not                                                                   
to resolve the conflict through  the regulatory process.  Mr.                                                                   
Poag  explained  that  the Department  of  Revenue  would  be                                                                   
denying the  person the license and  in order to do  that, it                                                                   
is important that  procedural safeguards are in  place.  Such                                                                   
action is  done on  a case-by-case base.   The Department  of                                                                   
Law is responsible for each one.                                                                                                
                                                                                                                                
8:00:16 PM                                                                                                                    
                                                                                                                                
Representative Hawker  recommended that the  amendment should                                                                   
move  forward with  the  understanding of  that  intent.   He                                                                   
encouraged work to be done with  the sponsor of the amendment                                                                   
in order to resolve departmental concerns.                                                                                      
                                                                                                                                
Representative  Kelly commented  on "good  faith" during  the                                                                   
process.                                                                                                                        
                                                                                                                                
8:01:50 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION  to  Amendment  #1.                                                                   
There being NO further OBJECTION, it was adopted.                                                                               
                                                                                                                                
8:02:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to REPORT  HCS CS SB 124  (FIN) out                                                                   
of Committee  with  individual recommendations  and with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
HCS CS SB 124 (FIN) was reported  out of Committee with a "no                                                                   
recommendation" and  with zero note  #2 by the  Department of                                                                   
Commerce, Community  & Economic Development, zero  note #3 by                                                                   
the Department  of Fish  & Game,  zero notes #4  & #5  by the                                                                   
Department of Labor & Workforce  Development and zero note #6                                                                   
by the Department of Revenue.                                                                                                   
                                                                                                                                
8:02:42 PM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 125(JUD)                                                                                               
                                                                                                                                
     An   Act   relating  to   the   licensing,   regulation,                                                                   
     enforcement,  and appeal  rights of ambulatory  surgical                                                                   
     centers, assisted  living homes, child  care facilities,                                                                   
     child  placement agencies,  foster homes,  free-standing                                                                   
     birth  centers,   home  health  agencies,   hospices  or                                                                   
     agencies   providing  hospice   services  or   operating                                                                   
     hospice    programs,   hospitals,   intermediate    care                                                                   
     facilities for  the mentally retarded,  maternity homes,                                                                   
     nursing facilities,  residential child  care facilities,                                                                   
     residential   psychiatric  treatment  centers,   runaway                                                                   
     shelters,   and  rural  health   clinics;  relating   to                                                                   
     possession  of  a  firearm   at  licensed  entities  and                                                                   
     facilities; relating  to criminal history  requirements,                                                                   
     and    a   registry,    regarding   certain    licenses,                                                                   
     certifications,  approvals,  and authorizations  by  the                                                                   
     Department  of   Health  and  Social   Services;  making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date.                                                                                                                      
                                                                                                                                
DR. RICHARD  MANDSAGER, DIRECTOR, DIVISION OF  PUBLIC HEALTH,                                                                   
DEPARTMENT OF  HEALTH &  SOCIAL SERVICES, provided  Committee                                                                   
members a handout  - Public Health, Protecting  and Promoting                                                                   
the Health of All Alaskans.  (Copy on File).                                                                                    
                                                                                                                                
Dr. Mandsager pointed out the three goals of the bill.                                                                          
                                                                                                                                
   ·    The Department currently licenses or certifies 19                                                                       
        programs administered  under  at  least 12  different                                                                   
        statutory schemes.   The  Division  of Public  Health                                                                   
        has been  given the  responsibility  of managing  the                                                                   
        licensure and  certification  of the  programs.   Dr.                                                                   
        Mandsager explained that  each program  has different                                                                   
        rules and  the goal  is to  standardize and  simplify                                                                   
        regulatory and statutory law.                                                                                           
                                                                                                                                
8:05:16 PM                                                                                                                    
                                                                                                                                
   ·    The second goal is to determine how to minimize the                                                                     
        risk to  vulnerable clients  by utilizing  background                                                                   
        checks as  they work  with the  institutions.   There                                                                   
        would  be a  two-part  background  check  modeled  on                                                                   
        existing programs.                                                                                                      
   ·    The bill envisions a private registry.                                                                                  
                                                                                                                                
Dr.  Mandsager   noted  that  Amendment  #1,   clarifies  the                                                                   
immunity language.  (Copy on File).                                                                                             
                                                                                                                                
8:08:22 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  asked about  the  zero  fiscal notes.    Dr.                                                                   
Mandsager  explained  that  the  original bill  had  a  small                                                                   
fiscal  note  from  the  Department  of  Law,  however,  that                                                                   
Division received a large federal  grant from the Centers for                                                                   
Medicare and Medicaid  Services to pilot the  approach to the                                                                   
background checks.    There is money in the grant  to pay for                                                                   
regulation development; hence, the notes were zeroed out.                                                                       
                                                                                                                                
MICHAEL  MACLEOD  BULL, EXECUTIVE  DIRECTOR,  AMERICAN  CIVIL                                                                   
LIBERITIES UNION  (ACLU), voiced  concern with how  vague the                                                                   
criminal registry  was and the prohibition conflict  with the                                                                   
State's duty to provide service to prisoners.                                                                                   
                                                                                                                                
Mr. Bull supported  the link between the  restriction imposed                                                                   
on a  person coming out  of prison, who  may or may  not have                                                                   
been  rehabilitated.   Basically,  ACLU opposes  implementing                                                                   
more barriers for those re-entering society.                                                                                    
                                                                                                                                
Mr. Bull  proposed use of a  mechanism to define  the listing                                                                   
process.   If the name  were on a  registry then  that person                                                                   
would   be  barred   from   interacting   with  the   entity.                                                                   
Objections exist on two levels:                                                                                                 
                                                                                                                                
   ·    Policy level - The more barriers placed on a person,                                                                    
        the more  difficult it  becomes  to reenter  society;                                                                   
        and                                                                                                                     
   ·    Constitutional    right   for    rehabilitation    of                                                                   
        prisoners.                                                                                                              
                                                                                                                                
8:13:40 PM                                                                                                                    
                                                                                                                                
MARIE  DARLIN,  COORDINATOR, ALASKA  ASSOCIATION  OF  RETIRED                                                                   
PERSON'S (AARP) TASK  FORCE, JUNEAU, spoke in  support of the                                                                   
legislation,  which would  put all  regulations for  assisted                                                                   
living into one place.                                                                                                          
                                                                                                                                
AMY ONEY, ASSISTED  LIVING HOME, ANCHORAGE, spoke  in support                                                                   
of  the  reorganization,  but   expressed  concern  with  the                                                                   
registry.  She believed that the language was too broad.                                                                        
                                                                                                                                
8:17:10 PM                                                                                                                    
                                                                                                                                
Representative  Holm  inquired  if the  proposed  legislation                                                                   
could  level  the  playing field  between  profits  and  non-                                                                   
profits.   Ms. Oney  agreed, pointing out  that the  bill has                                                                   
brought  attention to  that matter, yet  voiced concern  that                                                                   
licensing  costs for  funding would  not be  able to keep  up                                                                   
with regulation requirements.                                                                                                   
                                                                                                                                
8:19:24 PM                                                                                                                    
                                                                                                                                
Ms.  Oney  discussed  the  regulations   detrimental  to  the                                                                   
existing homes  because of  extensive requirements  for those                                                                   
homes.   There  is no  way for  those costs  to be  recouped,                                                                   
which places the home in a difficult position.                                                                                  
                                                                                                                                
Representative   Holm  mentioned   his   concerns  with   the                                                                   
regulation  requirements.   Ms.  Oney explained  that in  the                                                                   
proposed   regulations,  there   are  requirements   on  food                                                                   
handling  such as  the number  of times hand  towels must  be                                                                   
laundered and how that is documented.                                                                                           
                                                                                                                                
8:21:26 PM                                                                                                                    
                                                                                                                                
Representative  Holm felt that  regulations could  be onerous                                                                   
in  regard  to  family-style dinner  situations.    Ms.  Oney                                                                   
agreed.                                                                                                                         
                                                                                                                                
Representative Holm reiterated  his concern about the process                                                                   
and asked if the  elderly are threatened in the  homes in any                                                                   
way.   Ms.  Oney  responded that  in  some  homes, there  are                                                                   
existing beds.   If there  is no quality  level of  care, the                                                                   
homes loose  clients.    There are regulations  now regarding                                                                   
the  certification  process;  the next  step  proposed  could                                                                   
place a "huge  burden" on the administrative  process for the                                                                   
smaller homes.                                                                                                                  
                                                                                                                                
8:24:21 PM                                                                                                                    
                                                                                                                                
Representative Holm  recalled the arbitrary decision  made to                                                                   
cut back dollars  allocated for each patient.   Ms. Oney said                                                                   
that resulted from  refinancing room and board cap.   It went                                                                   
from beyond the indicated amount  for Adult Public Assistance                                                                   
(APA)  and refinanced  that into  the  Adult Medicaid  funds.                                                                   
The amount  changed from  $75 dollars per  day to  $18.54 per                                                                   
day.  She added,  her business has experienced a  net loss of                                                                   
$4,000  to $5,000  per month.   Homes have  gone through  the                                                                   
regulatory  review for  those extra  funds in  order to  meet                                                                   
their business obligations.                                                                                                     
                                                                                                                                
8:26:32 PM                                                                                                                    
                                                                                                                                
Representative Holm  was disturbed with the way  the State of                                                                   
Alaska treats  elderly.  It is  not in the best  interest for                                                                   
the State to  make the regulatory practice so  difficult that                                                                   
it impacts providing consistent care.                                                                                           
                                                                                                                                
8:27:44 PM                                                                                                                    
                                                                                                                                
SHERRY  METTLER,  (TESTIFIED  VIA  TELECONFERENCE),  ASSISTED                                                                   
LIVING INDUSTRY, FAIRBANKS, addressed concerns of the non-                                                                      
profit versus  the profit playing  field.  Larger  homes have                                                                   
higher resources and time to review  regulations, which total                                                                   
230  pages.     She   addressed  "safety   issues"   and  how                                                                   
regulations affect the simplest tasks.                                                                                          
                                                                                                                                
Ms.  Mettler commented  on the  registry and  the process  of                                                                   
hiring.   She  indicated concern  with  misconduct and  abuse                                                                   
issues the registry proposes,  pointing out that every person                                                                   
working  in the  industry  must  have a  criminal  background                                                                   
check.   To create  another level  of criminal justice  could                                                                   
potentially  destroy  lives and  discredit  homes.   It  puts                                                                   
everyone at  risk working in  that industry.   She reiterated                                                                   
her  concerns regarding  the registry,  the  burden on  those                                                                   
homes and cuts to administrative costs.                                                                                         
                                                                                                                                
8:31:22 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  MOVED  to ADOPT  Amendment  #1,  #24-                                                                   
GS1016\L.1, Mischel, 5/7/05.  Co-Chair Meyer OBJECTED.                                                                          
                                                                                                                                
STACY KRALY,  ASSISTANT ATTORNEY GENERAL, DEPARTMENT  OF LAW,                                                                   
noted  that Amendment  #1  provides a  technical  correction.                                                                   
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, Amendment #1 was adopted.                                                                                    
                                                                                                                                
8:34:28 PM                                                                                                                    
                                                                                                                                
Representative Croft MOVED to ADOPT Amendment #2.  Vice-                                                                        
Chair  Stoltze  OBJECTED  for   the  purpose  of  discussion.                                                                   
Representative  Croft pointed  out that  there are  different                                                                   
classes  of volunteers.   He  maintained the  purpose of  the                                                                   
amendment  was   to  remove  the  requirement   for  criminal                                                                   
background checks  for "supervised" volunteers  in facilities                                                                   
listed.                                                                                                                         
                                                                                                                                
Dr. Mandsager  agreed with the  intent of the amendment.   He                                                                   
pointed out that  problems arise where volunteers  might form                                                                   
a  regular relationship  with  the  home's clients  and  then                                                                   
might  take  advantage   of  that  client.     Dr.  Mandsager                                                                   
suggested alternative language  on Page 11, Line 15, deleting                                                                   
"or"  and  inserting  "and  who  have  regular  contact  with                                                                   
individuals who receive  services from the entity  or".  That                                                                   
language  should  cover  volunteers  that  are  coming  on  a                                                                   
regular basis.                                                                                                                  
                                                                                                                                
8:38:20 PM                                                                                                                    
                                                                                                                                
Representative  Croft  pointed  out  that there  could  be  a                                                                   
regular volunteer  group such as  a Sunday church group.   He                                                                   
suggested that  the Department  provide guidance  through the                                                                   
regulations.                                                                                                                    
                                                                                                                                
8:39:05 PM                                                                                                                    
                                                                                                                                
Representative  Croft reiterated his  argument in  support of                                                                   
the amendment.                                                                                                                  
                                                                                                                                
Vice-Chair  Stoltze noted  that he has  regular contact  with                                                                   
the homes in his  district, as do the Eagle  Scouts and other                                                                   
groups.                                                                                                                         
                                                                                                                                
8:40:36 PM                                                                                                                    
                                                                                                                                
Dr. Mandsager noted  that the intent was to  limit the number                                                                   
of crime background checks on  volunteers to those that spend                                                                   
regular, unsupervised time with  the clients.  He hoped to do                                                                   
that through regulation.                                                                                                        
                                                                                                                                
8:41:25 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze mentioned  clerical visitations  as being                                                                   
one of the most regular-type of volunteer help.                                                                                 
                                                                                                                                
Representative  Hawker  spoke in  support  of the  amendment,                                                                   
suggesting   that  "unsupervised"   would   be  the   correct                                                                   
approach.  Discussion followed  between members regarding the                                                                   
intent of "unsupervised".                                                                                                       
                                                                                                                                
8:43:59 PM                                                                                                                    
                                                                                                                                
Representative  Holm stressed  the importance of  encouraging                                                                   
volunteers  and cautioned against  creating more  bureaucracy                                                                   
than  necessary.   He  requested  that the  bill  be held  in                                                                   
Committee.                                                                                                                      
                                                                                                                                
Vice-Chair Stoltze  WITHDREW his  OBJECTION.  There  being NO                                                                   
further OBJECTION, Amendment #2 was adopted.                                                                                    
                                                                                                                                
8:45:32 PM                                                                                                                    
                                                                                                                                
Representative Croft  MOVED to ADOPT Amendment  #3.  Co-Chair                                                                   
Meyer OBJECTED.                                                                                                                 
                                                                                                                                
Representative  Croft  explained  that  the  amendment  would                                                                   
insert language  on Page 14, Line  25, "shall be  notified of                                                                   
such placement and", and on Page  14, Line 28 insert, "if the                                                                   
department finds  no relation between the  information placed                                                                   
on  the  registry  and  the risk  of  harm  to  the  entity's                                                                   
clientele".                                                                                                                     
                                                                                                                                
Ms.  Kraly  noted  that the  Department  would  support  that                                                                   
language.                                                                                                                       
                                                                                                                                
In response  to Representative  Hawker, Representative  Croft                                                                   
reviewed  the definition  of "substantial".    Representative                                                                   
Hawker questioned if "substantial" should be struck.                                                                            
                                                                                                                                
Representative  Hawker MOVED to  AMEND the New  Amendment #3,                                                                   
by deleting "substantial".  There  being NO OBJECTION, it was                                                                   
amended.                                                                                                                        
                                                                                                                                
Co-Chair  Meyer   WITHDREW  his  OBJECTION  to   the  amended                                                                   
amendment.   There  being  NO   further  OBJECTION,   amended                                                                   
Amendment #3 was adopted.                                                                                                       
                                                                                                                                
Vice-Chair Stoltze MOVED to REPORT  HSC CSSB 125 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  Representative Holm OBJECTED.                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Joule,   Stoltze,    Croft,   Hawker,   Meyer,                                                                   
               Chenault                                                                                                         
OPPOSED:       Holm                                                                                                             
                                                                                                                                
Representative     Kelly,    Representative     Moses,    and                                                                   
Representative Foster were not present for the vote.                                                                            
                                                                                                                                
The MOTION PASSED (6-1).                                                                                                        
                                                                                                                                
HCS  CS SB  125  (FIN) was  reported  out of  Committee  with                                                                   
"individual"  recommendations and  with zero  note #2  by the                                                                   
Department of  Health & Social  Services and zero note  #3 by                                                                   
the Department of Law.                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 8:51 P.M.                                                                                          

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