Legislature(2007 - 2008)

04/07/2008 02:53 PM FIN


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* first hearing in first committee of referral
+ teleconferenced
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                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 7, 2008                                                                                            
                         2:53 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 2:53:18 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas Jr.                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Richard Foster                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Johnny Ellis;  Max  Hensley, Staff,  Senator  Johnny                                                                   
Ellis; Suzanne Armstrong, Staff,  Co-Chair Meyer; Pam Finley,                                                                   
Revisor, Legislative  Affairs  Agency; Senator Gary  Stevens;                                                                   
Tim  Lamkin,   Staff,  Senator  Gary  Stevens;   Eddy  Jeans,                                                                   
Director, School  Finance, Department of Education  and Early                                                                   
Development;   Senator   Bill  Wielechowski;   Lauren   Rice,                                                                   
Legislative  Liaison,  Department   of  Public  Safety;  Anne                                                                   
Carpeneti,   Assistant  Attorney   General,  Legal   Services                                                                   
Section-Juneau, Criminal Division, Department of Law.                                                                           
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None.                                                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CS SB 185(STA)(title am)                                                                                                        
          An  Act relating  to  the central  registry of  sex                                                                   
          offenders   and  child   kidnappers   and  to   the                                                                   
          registration  requirements  for sex  offenders  and                                                                   
          child  kidnappers; and  providing for an  effective                                                                   
          date.                                                                                                                 
                                                                                                                                
          CS SB 185(STA)(title am) was HEARD and HELD in                                                                        
          Committee for further consideration.                                                                                  
                                                                                                                                
CS SB 221(FIN) am                                                                                                               
          An   Act   making  and   amending   appropriations,                                                                   
          including   capital  appropriations,   supplemental                                                                   
          appropriations,  and  appropriations to  capitalize                                                                   
          funds; and providing for an effective date.                                                                           
                                                                                                                                
          CS SB 221(FIN) was SCHEDULED but not HEARD.                                                                           
                                                                                                                                
CS SS SB 230(FIN) am                                                                                                            
          An  Act   establishing  the  film  office   in  the                                                                   
          Department  of  Commerce, Community,  and  Economic                                                                   
          Development;  creating  a transferable  tax  credit                                                                   
          applicable to certain  film production expenditures                                                                   
          incurred  in  the  state;   and  providing  for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          HCS  CS   SS  SB  230(FIN)  was  REPORTED   out  of                                                                   
          Committee with a "do  pass" recommendation and with                                                                   
          zero  fiscal note #3  by the Department  of Revenue                                                                   
          and fiscal  note #4 by the Department  of Commerce,                                                                   
          Community and Economic Development.                                                                                   
                                                                                                                                
CS SB 260(STA)                                                                                                                  
          An Act  making corrective amendments  to the Alaska                                                                   
          Statutes   as  recommended   by   the  revisor   of                                                                   
          statutes; and providing for an effective date.                                                                        
                                                                                                                                
          HCS CS  SB 260(FIN)  was REPORTED out  of Committee                                                                   
          with a  "do pass" recommendation and  with attached                                                                   
          zero fiscal note #1  by Legislative Affairs Agency.                                                                   
                                                                                                                                
CS SB 265(FIN)                                                                                                                  
          An Act  relating to  the payment of  permanent fund                                                                   
          dividends   to  certain  individuals   required  to                                                                   
          register  as  sex offenders  or  child  kidnappers;                                                                   
          relating   to   execution   upon   permanent   fund                                                                   
          dividends   by  civilian   process  servers   using                                                                   
          electronic  procedures;  amending  Rule 89,  Alaska                                                                   
          Rules  of Civil  Procedure;  and  providing for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS SB 265(FIN) was SCHEDULED but not HEARD.                                                                           
                                                                                                                                
CS SB 285(FIN)                                                                                                                  
          An  Act relating  to the  power and  duties of  the                                                                   
          Department  of Education and Early  Development for                                                                   
          improving   instructional   practices   in   school                                                                   
          districts; and providing for an effective date.                                                                       
                                                                                                                                
          HCS  CSSB 285(HES)  was REPORTED  out of  Committee                                                                   
          with a  "do pass" recommendation and  with attached                                                                   
          fiscal note  #1 by the Department of  Education and                                                                   
          Early Development and Senate Letter of Intent.                                                                        
                                                                                                                                
SB 304    An Act  authorizing an Alaska regional  development                                                                   
          organization to use the Alaska Commercial                                                                             
          Fisheries Entry Commission as an informational                                                                        
          resource.                                                                                                             
                                                                                                                                
          SB 304 was POSTPONED.                                                                                                 
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 230(FIN) am                                                                     
                                                                                                                                
     An Act  establishing the  film office in  the Department                                                                   
     of  Commerce,   Community,  and  Economic   Development;                                                                   
     creating  a   transferable  tax  credit   applicable  to                                                                   
     certain  film production  expenditures  incurred in  the                                                                   
     state; and providing for an effective date.                                                                                
                                                                                                                                
Representative Hawker MOVED Amendment #3 (Copy on File):                                                                        
                                                                                                                                
     Page 2, line 8, following "exceed"                                                                                         
     Delete "$150,000,000"                                                                                                      
     Insert "$50,000,000"                                                                                                       
     Page 4, line 19, following "equal to"                                                                                      
     Delete "30                                                                                                                 
     Insert "20"                                                                                                                
     Page 9, line 11, following "equals" (lines 17, 23                                                                          
     to conform to CS)                                                                                                          
     Delete "$150,000,000"                                                                                                      
     Insert "$50,000,000"                                                                                                       
                                                                                                                                
Vice-Chair Stoltze OBJECTED for discussion.                                                                                     
                                                                                                                                
2:54:20 PM                                                                                                                    
                                                                                                                                
Representative  Hawker described  the  Amendment as  reducing                                                                   
the  rate  of  the authorized  state  subsidy.  There  was  a                                                                   
discussion  regarding the efficacy  of putting  a cap  on the                                                                   
subsidies.                                                                                                                      
                                                                                                                                
SENATOR  JOHNNY  ELLIS,  SPONSOR,   reiterated  his  concerns                                                                   
regarding the Amendment. He thought  the limits already built                                                                   
into the legislation, the overall  limit of $150 million, the                                                                   
annual review and the five year  sunset, were sufficient. The                                                                   
limits  were   calibrated  in  consultation  with   the  film                                                                   
industry  and  he   did  not  think  the  program   would  be                                                                   
competitive  if  adjusted  to  the numbers  proposed  the  in                                                                   
Amendment, especially  taking into  account the high  cost of                                                                   
doing business in Alaska.                                                                                                       
                                                                                                                                
3:00:26 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  urged  judgment  as stewards  of  the                                                                   
treasury.                                                                                                                       
                                                                                                                                
Vice-Chair  Stoltze   favored  the   lower  amounts   in  the                                                                   
Amendment,  with the ability  to extend  funding if  all went                                                                   
well.                                                                                                                           
                                                                                                                                
Representative  Crawford  thought  jobs  were the  issue  and                                                                   
wanted Alaska to remain competitive.                                                                                            
                                                                                                                                
Vice-Chair Stoltze  proposed dividing  Amendment #3  into two                                                                   
parts.                                                                                                                          
                                                                                                                                
3:05:26 PM                                                                                                                    
                                                                                                                                
Representative Hawker  MOVED to ADOPT new Amendment  #3, part                                                                   
1, lines 5-7. Representative Thomas OBJECTED.                                                                                   
                                                                                                                                
Representative  Hawker   clarified  that  the   proposed  new                                                                   
amendment changed  the base level  of subsidization  from 30%                                                                   
of eligible qualified expenditures to 20%.                                                                                      
                                                                                                                                
3:06:51 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  MOVED to change part one  of new Amendment                                                                   
#3 to 25%. Representative Gara OBJECTED.                                                                                        
                                                                                                                                
Representative  Gara stated  that  cost is  the major  reason                                                                   
films are not being made in Alaska.  He argued for the higher                                                                   
number to give the proposal a chance to work.                                                                                   
                                                                                                                                
Co-Chair Chenault supported starting  a new film industry but                                                                   
was concerned  with not knowing  for five years.  He compared                                                                   
the issue with new taxes on oil. He urged caution.                                                                              
                                                                                                                                
3:12:30 PM                                                                                                                    
                                                                                                                                
Representative Gara reminded the  Committee of the expense of                                                                   
transportation.  He proposed accepting  25% with 30%  for in-                                                                   
state  transportation  and  travel  provided  by  an  Alaskan                                                                   
business.                                                                                                                       
                                                                                                                                
3:14:19 PM                                                                                                                    
                                                                                                                                
Senator Ellis asserted that going  from 30% to 20% would take                                                                   
Alaska out  of competition for  films, and 25% would  put the                                                                   
state at the bottom of competitiveness with other states.                                                                       
                                                                                                                                
Representative  Gara REMOVED  his OBJECTION.  There being  NO                                                                   
further OBJECTION,  Amendment #3, part 1, as  amended to 25%,                                                                   
was accepted.                                                                                                                   
                                                                                                                                
Representative Gara OBJECTED.                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thomas, Hawker, Chenault, Meyer                                                                                       
OPPOSED: Crawford, Gara, Joule, Nelson, Stoltze                                                                                 
                                                                                                                                
Absent from the vote: Foster, Kelly                                                                                             
                                                                                                                                
The MOTION FAILED (4/5).                                                                                                        
                                                                                                                                
3:18:07 PM                                                                                                                    
                                                                                                                                
Representative  Hawker MOVED Amendment  #3, part  2, dropping                                                                   
the five-year cap from $150 million to $50 million.                                                                             
                                                                                                                                
Co-Chair Meyer proposed amending  part 2 to change the number                                                                   
to $100 million.                                                                                                                
                                                                                                                                
Representative Crawford OBJECTED for DISCUSSION.                                                                                
                                                                                                                                
Senator  Ellis explained  that  the amounts  in the  original                                                                   
bill were open-ended in order  to encourage major enterprise.                                                                   
He added  that no other state  has a similar cap.  He pointed                                                                   
to other limits already built  into the bill such as the time                                                                   
limit.                                                                                                                          
                                                                                                                                
3:21:11 PM                                                                                                                    
                                                                                                                                
Representative Gara asked about caps in other states.                                                                           
                                                                                                                                
MAX  HENSLEY, STAFF,  SENATOR JOHNNY  ELLIS, explained  three                                                                   
types of caps: per production,  an annual appropriations cap,                                                                   
and  cap on  the  amount covered  for  wages.  He listed  the                                                                   
states that  do not have caps.  The life-time program  cap is                                                                   
not used in other places.                                                                                                       
                                                                                                                                
Co-Chair Meyer offered  that the bill could  be re-visited if                                                                   
the cap was reached.                                                                                                            
                                                                                                                                
Representative  Crawford asserted that  the $150  million cap                                                                   
was  already   a  significant  deterrent  and   a  reasonable                                                                   
compromise. He MAINTAINED his objection.                                                                                        
                                                                                                                                
Representative Thomas stated he  supported starting with $100                                                                   
million and coming back in future.                                                                                              
                                                                                                                                
Representative   Hawker  supported   the  amendment   to  the                                                                   
Amendment.                                                                                                                      
                                                                                                                                
3:24:43 PM                                                                                                                    
                                                                                                                                
Representative Gara  urged trying to let it  work without too                                                                   
many constraints and come back  later and analyze. He thought                                                                   
the  amendment  would  hurt  the   chances  of  the  industry                                                                   
working.                                                                                                                        
                                                                                                                                
Senator Ellis  pointed out that  the program is  speculative.                                                                   
No  money is  spent until  the  State gains  the benefit.  He                                                                   
encouraged planning ahead and making an investment.                                                                             
                                                                                                                                
Co-Chair Meyer reiterated that the cap could be adjusted.                                                                       
                                                                                                                                
Co-Chair Meyer MOVED Amendment  #3, part 2 as amended to $100                                                                   
million.                                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Hawker, Stoltze, Thomas, Chenault, Meyer                                                                              
OPPOSED: Crawford, Gara, Joule, Nelson                                                                                          
                                                                                                                                
Absent from the Vote: Foster, Kelly                                                                                             
                                                                                                                                
The MOTION PASSED (5/4).                                                                                                        
                                                                                                                                
AT EASE        3:30:32 PM                                                                                                     
                                                                                                                                
RECONVENE      3:32:07 PM                                                                                                     
                                                                                                                                
Representative  Hawker explained that  the motion  before the                                                                   
Committee was the  adoption of Amendment #3,  part 2, amended                                                                   
to $100 million.                                                                                                                
                                                                                                                                
Representative Crawford MAINTAINED his OBJECTION.                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Hawker, Stoltze, Thomas, Meyer, Chenault                                                                              
OPPOSED: Gara, Joule, Nelson, Crawford                                                                                          
                                                                                                                                
Absent from the Vote: Foster, Kelly                                                                                             
                                                                                                                                
The MOTION PASSED (5/4).                                                                                                        
                                                                                                                                
3:34:59 PM                                                                                                                    
                                                                                                                                
SUZANNE  ARMSTRONG,  STAFF,  CO-CHAIR  MEYER,  explained  the                                                                   
status of the Amendment. The base  subsidy level was still at                                                                   
30% but the cap was reduced to $100 million.                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to REPORT  SB 230 out  of Committee                                                                   
with individual  recommendations  and attached fiscal  notes.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HCS CS SS  SB 230(FIN) was  REPORTED out of Committee  with a                                                                   
"do pass" recommendation and with  zero fiscal note #3 by the                                                                   
Department of  Revenue and fiscal  note #4 by  the Department                                                                   
of Commerce, Community and Economic Development.                                                                                
                                                                                                                                
CS FOR SENATE BILL NO. 260(STA)                                                                                               
                                                                                                                                
     An Act making corrective amendments to the Alaska                                                                          
     Statutes as recommended by the revisor of statutes; and                                                                    
     providing for an effective date.                                                                                           
                                                                                                                                
PAM FINLEY,  REVISOR, LEGISLATIVE AFFAIRS  AGENCY, introduced                                                                   
the  bill,   which  makes   technical  improvements   in  the                                                                   
statutes. It makes no policy choices.                                                                                           
                                                                                                                                
Co-Chair Meyer  MOVED to  ADOPT Amendment #1  (25-LS1022\C.1,                                                                   
Finley, 4/7/08) (Copy on File):                                                                                                 
                                                                                                                                
     Page 23, following line 15:                                                                                                
     Insert a new bill section to read:                                                                                         
     "*Sec.57.  The  uncodified  law  of  the  State  of                                                                        
     Alaska is amended by adding  a new section to read:                                                                        
     REVISOR'S  INSTRUCTION. In  reconciling the  repeal                                                                        
     of  AS 08.01.010(16)  in sec. 4  of CSSB  149(L&C),                                                                        
     Twenty-Fifth  Alaska  State  Legislature,  and  the                                                                        
     repeal and reenactment of  AS 08.01.010(16) in sec.                                                                        
     2  of  this  Act, the  revisor  of  statutes  shall                                                                        
     ignore the repeal in CSSB  149(L&C) and give effect                                                                        
     to the  repeal and  reenactment in  sec. 2 of  this                                                                        
     Act."                                                                                                                      
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
Representative Thomas OBJECTED for DISCUSSION.                                                                                  
                                                                                                                                
Ms. Finley explained the amendment.                                                                                             
                                                                                                                                
3:41:35 PM                                                                                                                    
                                                                                                                                
Representative Hawker  clarified that the Amendment  does not                                                                   
change the substantive consequence  of the passage of SB 149.                                                                   
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Representative Hawker  REMOVED his OBJECTION. There  being NO                                                                   
further OBJECTION, Amendment #1 was adopted.                                                                                    
                                                                                                                                
Vice-Chair Stoltze MOVED to REPORT  HCS CS SB 260(FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
HCS CS SB 260(FIN)  was REPORTED out of Committee  with a "do                                                                   
pass" recommendation  and with  attached zero fiscal  note #1                                                                   
by Legislative Affairs Agency.                                                                                                  
                                                                                                                                
AT EASE        3:44:00 PM                                                                                                     
                                                                                                                                
RECONVENE      3:47:13 PM                                                                                                     
                                                                                                                                
CS FOR SENATE BILL NO. 285(FIN)                                                                                               
                                                                                                                                
     An  Act  relating  to  the   power  and  duties  of  the                                                                   
     Department  of  Education   and  Early  Development  for                                                                   
     improving instructional  practices in  school districts;                                                                   
     and providing for an effective date.                                                                                       
                                                                                                                                
3:47:28 PM                                                                                                                    
                                                                                                                                
SENATOR GARY  STEVENS, SPONSOR,  explained that the  bill was                                                                   
introduced in  response to the  court case decision  of Moore                                                                   
et.  al.  vs.   State  of  Alaska,  which  pertains   to  the                                                                   
Legislature   fulfilling   its  constitutional   mandate   of                                                                   
overseeing school  districts and schools in  Alaska. The case                                                                   
concludes in part  that the Legislature is failing  this duty                                                                   
as regards schools with long-standing poor performance.                                                                         
                                                                                                                                
Senator Stevens  said the  bill calls  for the Department  of                                                                   
Education and  Early Development (DEED) to  provide direction                                                                   
to  schools  that  need  to  increase   student  achievement,                                                                   
including   making   decisions    regarding   personnel   and                                                                   
expenditures to improve instructional practices.                                                                                
                                                                                                                                
Representative  Hawker stated  his  support of  the bill  and                                                                   
recommended  reading   Moore  vs.  State   for  understanding                                                                   
education issues.                                                                                                               
                                                                                                                                
Vice-Chair Stoltze  asked a question about  athletic coaches.                                                                   
Senator  Stevens clarified  that  academic  coaches would  be                                                                   
hired to help improve scores.                                                                                                   
                                                                                                                                
TIM LAMKIN,  STAFF, SENATOR  GARY STEVENS,  added that  it is                                                                   
not  the intent  of  the bill  to have  anything  to do  with                                                                   
sports coaches.                                                                                                                 
                                                                                                                                
3:52:26 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault OPENED PUBLIC TESTIMONY.                                                                                      
                                                                                                                                
EDDY   JEANS,  DIRECTOR,   SCHOOL   FINANCE,  DEPARTMENT   OF                                                                   
EDUCATION  AND  EARLY DEVELOPMENT,  stated  the  Department's                                                                   
support for the legislation.                                                                                                    
                                                                                                                                
Representative  Crawford asked for  a description of  how the                                                                   
legislation would change things.                                                                                                
                                                                                                                                
Mr.   Jeans   answered   that    the   legislation   provides                                                                   
clarification  in  statute  that DEED  as  the  Legislature's                                                                   
agent has the authority to intervene  and provide supervision                                                                   
over school districts.  One of the judge's criticisms  of the                                                                   
State  during the  lawsuit was  that utilizing  the No  Child                                                                   
Left  Behind  model, it  takes  too  long  for the  State  to                                                                   
intervene.                                                                                                                      
                                                                                                                                
3:55:05 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked if  DEED would intervene  at the                                                                   
individual  school level  or  at the  district  level when  a                                                                   
school  is identified  as  needing intervention,.  Mr.  Jeans                                                                   
answered  that  the  legislation  covers  both  district  and                                                                   
school  levels, but all  interventions  would be through  the                                                                   
district  administration,  working   with  the  local  school                                                                   
board. The Department would not go directly into a school.                                                                      
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Co-Chair Meyer referred to the fiscal note.                                                                                     
                                                                                                                                
Vice-Chair Stoltze  MOVED to REPORT HCS CSSB  285(HES) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
HCS CSSB  285(HES) was REPORTED  out of Committee with  a "do                                                                   
pass" recommendation and with  attached fiscal note #1 by the                                                                   
Department  of Education  and  Early Development  and  Senate                                                                   
Letter of Intent.                                                                                                               
                                                                                                                                
AT EASE        3:57:45 PM                                                                                                     
                                                                                                                                
RECONVENE      7:57:13 PM                                                                                                     
                                                                                                                                
CS FOR SENATE BILL NO. 185(STA)(title am)                                                                                     
                                                                                                                                
     An  Act   relating  to  the  central  registry   of  sex                                                                   
     offenders and  child kidnappers and to  the registration                                                                   
     requirements  for sex  offenders  and child  kidnappers;                                                                   
     and providing for an effective date.                                                                                       
                                                                                                                                
Representative  Hawker MOVED to  ADOPT Amendment #1  (Copy on                                                                   
File):                                                                                                                          
                                                                                                                                
     Page 3, line 26                                                                                                            
     Delete "belongs to"                                                                                                        
     Insert "has been registered by"                                                                                            
                                                                                                                                
Vice-Chair Stoltze OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
7:59:42 PM                                                                                                                    
                                                                                                                                
Representative Hawker  explained that the  Amendment provides                                                                   
for the Department  to confirm whether an address  belongs to                                                                   
a person on the sex offender/child kidnapper register.                                                                          
                                                                                                                                
SENATOR BILL  WIELECHOWSKI, SPONSOR,  voiced his  support for                                                                   
the Amendment.                                                                                                                  
                                                                                                                                
Vice-Chair  Stoltze REMOVED  his  OBJECTION.  There being  NO                                                                   
further OBJECTION, Amendment #1 was adopted.                                                                                    
                                                                                                                                
8:02:28 PM                                                                                                                    
                                                                                                                                
Representative  Hawker MOVED to  ADOPT Amendment #2  (Copy on                                                                   
File):                                                                                                                          
                                                                                                                                
     Page 3, line 27 through page 4, line 1                                                                                     
     Delete all material                                                                                                        
                                                                                                                                
Vice-Chair Stoltze OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Representative  Hawker explained  Amendment  #2. The  section                                                                   
being deleted from the bill in  its entirely is the provision                                                                   
that allows the Department of  Public Safety (DPS) to provide                                                                   
the   list  of   the  registered   email/chat  addresses   to                                                                   
commercial  internet   providers  and  security   firms.  The                                                                   
original  purpose of  the  section was  to  warn the  public.                                                                   
However,  DPS has  expressed  concerns  about publishing  the                                                                   
list.  Once the list  is out,  it cannot  be controlled.  The                                                                   
intent of  the Amendment  is not to weaken  the bill,  but to                                                                   
protect  the  innocent  public  in  situations  with  similar                                                                   
addresses.                                                                                                                      
                                                                                                                                
8:07:23 PM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  said  he   would  not  object  to  the                                                                   
Amendment.                                                                                                                      
                                                                                                                                
Vice-Chair Stoltze wondered what DPS thought.                                                                                   
                                                                                                                                
LAUREN  RICE,  LEGISLATIVE  LIAISON,   DEPARTMENT  OF  PUBLIC                                                                   
SAFETY, stated  that the  Department was  not opposed  to the                                                                   
Amendment.                                                                                                                      
                                                                                                                                
Vice-Chair  Stoltze WITHDREW  his OBJECTION.  There being  NO                                                                   
OBJECTION, Amendment #2 was ADOPTED.                                                                                            
                                                                                                                                
Representative  Gara clarified that  it was more  accurate to                                                                   
say "the internets" than "the internet."                                                                                        
                                                                                                                                
8:10:00 PM                                                                                                                    
                                                                                                                                
Co-Chair   Chenault  MOVED   to  ADOPT   Amendment  #3   (25-                                                                   
LS0985\KA.1, Luckhaupt, 3/29/08, Copy on File):                                                                                 
                                                                                                                                
     Page 1, line 1, following "kidnappers":                                                                                    
     Insert ", to penalties for certain sex offenders,"                                                                         
     Page 2, following line 4:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "*Sec. 2. AS 12.55.015 is amended by adding a new                                                                          
     subsection to read:                                                                                                        
     (j)  In addition  to penalties  authorized by  this                                                                        
     section,   the  court  shall   order  a   defendant                                                                        
     convicted  of   a  violation  of  AS   11.41.410  -                                                                        
     11.41.440  where  the  victim of  the  offense  was                                                                        
     under 13 years  of age to be subject  to electronic                                                                        
     monitoring for  the remainder of the  person's life                                                                        
     on  the   person's  release  from  a   correctional                                                                        
     facility."                                                                                                                 
     Renumber the following bill sections accordingly.                                                                          
     Page 4, line 4:                                                                                                            
     Delete "This Act applies"                                                                                                  
     Insert "Sections 1 and 3 - 5 of this Act apply"                                                                            
     Page 4, following line 7:                                                                                                  
     Insert a new subsection to read:                                                                                           
     "(b)  Section  2 of  this  Act applies  to  persons                                                                        
     convicted  of offenses  committed on  or after  the                                                                        
     effective date of this Act."                                                                                               
     Reletter the following subsection accordingly.                                                                             
     Page 4, line 9:                                                                                                            
     Delete "sec. 3"                                                                                                            
     Insert "sec. 4"                                                                                                            
                                                                                                                                
Representative Gara OBJECTED.                                                                                                   
                                                                                                                                
Co-Chair Chenault explained that  the Amendment would require                                                                   
offenders to wear electronic monitoring  for the remainder of                                                                   
their  lives   if  convicted  of  certain   crimes  involving                                                                   
children under the  age of 13. He stated his  strong feelings                                                                   
about protecting youth from predators.                                                                                          
                                                                                                                                
AT EASE        8:12:57 PM                                                                                                     
                                                                                                                                
RECONVENE      8:13:35 PM                                                                                                     
                                                                                                                                
There  was  a  discussion  clarifying   the  details  of  the                                                                   
Amendment regarding the ages of  the offender and the victim.                                                                   
                                                                                                                                
Representative Gara  questioned whether the State  should pay                                                                   
for  electronic  monitoring. Co-Chair  Chenault  stated  that                                                                   
studies show that there is no  reform for the offenders. They                                                                   
tend to re-offend. He thought the cost was not the issue.                                                                       
                                                                                                                                
8:17:55 PM                                                                                                                    
                                                                                                                                
Representative  Gara proposed  that  the  Amendment might  be                                                                   
appropriate for  rape, which is  sexual assault in  the first                                                                   
degree. He  questioned having  lifetime monitoring  for other                                                                   
situations  covered  by  the   statutes  listed.  He  thought                                                                   
although it was a crime for a  16 year old to touch a 12 year                                                                   
old  through  their  clothing,   that  deserved  a  different                                                                   
punishment.  Co-Chair Chenault  clarified that the  Amendment                                                                   
was directed at pedophiles that prey on young children.                                                                         
                                                                                                                                
8:20:47 PM                                                                                                                    
                                                                                                                                
Representative   Nelson  asked  for   an  amendment   to  the                                                                   
Amendment to exclude non-intercourse consensual touching.                                                                       
                                                                                                                                
Representative  Gara said there  was a  dividing line  in the                                                                   
statutes  between   the  most   serious  and  least   serious                                                                   
offenses.  Sexual  assault  in   the  first  degree  involves                                                                   
forced, non-consensual penetration.  He thought the Amendment                                                                   
should  apply to  sexual  assault in  the  first degree  with                                                                   
someone under 13 years old.                                                                                                     
                                                                                                                                
Vice-Chair  Stoltze stated  concerns  with  putting the  word                                                                   
"consensual" with "12 and under" in the same sentence.                                                                          
                                                                                                                                
8:23:21 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  relayed   a  personal  story  of  a                                                                   
relative  who got  married at  age  13. He  pointed out  that                                                                   
those   possibilities   have  to   be  considered.   He   was                                                                   
uncomfortable with lifetime monitoring.                                                                                         
                                                                                                                                
Representative  Nelson  talked   about  a  relative  who  was                                                                   
married very young.  She was nervous about making  a 16-year-                                                                   
old wear a monitor  for life in cases where  a mature-seeming                                                                   
12 year old girl was the aggressor.   She wanted the judge to                                                                   
be able to exercise discretion.  She thought sexual predators                                                                   
of young girls should be monitored.                                                                                             
                                                                                                                                
Representative  Gara  passed out  copies  of  the statute  on                                                                   
first degree sexual assault.                                                                                                    
                                                                                                                                
Representative   Kelly  asked   if  there   was  a   clinical                                                                   
definition of the  kind of predators the bill  should target.                                                                   
Co-Chair  Chenault  suggested  child predators  convicted  of                                                                   
assault of a certain number of children.                                                                                        
                                                                                                                                
8:28:39 PM                                                                                                                    
                                                                                                                                
Senator Wielechowski  felt the crime described  was horrific.                                                                   
He  acknowledged   it  was  an  important  policy   call.  He                                                                   
questioned  the  fiscal  impact  and  whether  the  Amendment                                                                   
addressed the  problem of offenders  who were  committing the                                                                   
crime in  their home.  He thought the  subject needed  a full                                                                   
discussion in both bodies in another bill.                                                                                      
                                                                                                                                
Representative  Hawker  spoke  to relative  values  regarding                                                                   
spending.                                                                                                                       
                                                                                                                                
Representative Gara  referred to the handout  on first degree                                                                   
assault. The  sentence for the crime  is now a minimum  of 20                                                                   
years and probation for life.                                                                                                   
                                                                                                                                
8:32:35 PM                                                                                                                    
                                                                                                                                
Representative  Gara MOVED amendment  #1 to Amendment  #3, to                                                                   
have  the Amendment  apply  to  violations of  AS  11.41.410.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative  Hawker  was  concerned   about  the  cost  of                                                                   
monitoring for life.                                                                                                            
                                                                                                                                
Representative Hawker MOVED a  conceptual amendment to change                                                                   
"the person's life" to a period  of ten years following their                                                                   
release from a correctional facility.                                                                                           
                                                                                                                                
Co-Chair Meyer OBJECTED for DISCUSSION.                                                                                         
                                                                                                                                
8:35:49 PM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  suggested giving  the  authority to  a                                                                   
judge.  Representative Hawker  thought "mandatory  10 and  up                                                                   
to" would allow for flexibility.                                                                                                
                                                                                                                                
Co-Chair  Chenault  reiterated  that  the  crime  is  serious                                                                   
enough to warrant monitoring for  the remainder of a person's                                                                   
life, but he would not object to amending it to ten years.                                                                      
                                                                                                                                
Representative  Hawker suggested  a minimum  mandatory  of 10                                                                   
years  with  judge's discretion  up  to  the remainder  of  a                                                                   
person's life. Representative  Gara questioned how that would                                                                   
affect a  very young  offender. Co-Chair Chenault  reiterated                                                                   
his  concerns.   He  told  a   personal  story   about  child                                                                   
kidnapping.                                                                                                                     
                                                                                                                                
8:41:17 PM                                                                                                                    
                                                                                                                                
Representative   Hawker   WITHDREW  the   second   conceptual                                                                   
amendment to Amendment #3.                                                                                                      
                                                                                                                                
Representative  Hawker   MOVED  conceptual  amendment   3  to                                                                   
Amendment  #3:  Monitoring  period should  be  mandatory  ten                                                                   
years  following  release  from  correctional  facility,  and                                                                   
beyond  that  up  to  the  remainder   of  person's  life  at                                                                   
discretion of the courts.                                                                                                       
                                                                                                                                
Co-Chair Meyer OBJECTED for DISCUSSION.                                                                                         
                                                                                                                                
Representative  Gara stated his  discomfort with the  lack of                                                                   
information. Representative  Crawford agreed. He  wanted more                                                                   
input from the public and more investigation.                                                                                   
                                                                                                                                
Co-Chair  Chenault suggested  adding  Sec. 11.41.434,  sexual                                                                   
abuse of a minor in the first degree.                                                                                           
                                                                                                                                
AT EASE        8:45:16 PM                                                                                                     
                                                                                                                                
RECONVENE      9:05:22 PM                                                                                                     
                                                                                                                                
Representative Hawker WITHDREW amendment 3 to Amendment #3.                                                                     
                                                                                                                                
Representative   Gara  asked   for  clarification   regarding                                                                   
probation and electronic monitoring.                                                                                            
                                                                                                                                
ANNE CARPENETI,  ASSISTANT ATTORNEY  GENERAL, LEGAL  SERVICES                                                                   
SECTION-JUNEAU,   CRIMINAL  DIVISION,   DEPARTMENT  OF   LAW,                                                                   
explained that  sex offenses have high sentencing  ranges, up                                                                   
to 99 years  in prison, along  with a 25 year  maximum period                                                                   
of  probation.  The  court  currently  has a  great  deal  of                                                                   
discretion for sentencing in these  crimes. She said it would                                                                   
be difficult  to have electronic  monitoring past  the period                                                                   
of probation.                                                                                                                   
                                                                                                                                
9:08:19 PM                                                                                                                    
                                                                                                                                
Representative   Gara  MOVED   conceptual   amendment  4   to                                                                   
Amendment #3:                                                                                                                   
1.  Make  the  new  section apply  to  victims  14  years  or                                                                   
younger; and                                                                                                                    
2.  Give  the  judge  the  discretion  to  impose  electronic                                                                   
monitoring for up to the full length of probation.                                                                              
                                                                                                                                
Co-Chair Meyer OBJECTED for DISCUSSION.                                                                                         
                                                                                                                                
Co-Chair  Chenault  agreed  that   the  conceptual  amendment                                                                   
addressed the problem.                                                                                                          
                                                                                                                                
Senator Wielechowski supported the conceptual amendment.                                                                        
                                                                                                                                
Co-Chair  Meyer   REMOVED  his  OBJECTION.  There   being  NO                                                                   
OBJECTION, Amendment #3 as amended was adopted.                                                                                 
                                                                                                                                
Vice-Chair Stoltze MAINTAINED  his OBJECTION to Amendment #3.                                                                   
                                                                                                                                
9:10:43 PM                                                                                                                    
                                                                                                                                
Representative  Joule asked if  the earlier decision  to have                                                                   
section  (j) apply  only  to  AS 11.41.410  violations  still                                                                   
applied.                                                                                                                        
                                                                                                                                
Ms. Carpeneti  said that was  a policy decision.  The section                                                                   
left in  referred to the most  serious of the  sexual assault                                                                   
prohibitions. She  pointed to another unclassified  felony in                                                                   
state  sex offenses,  sexual abuse  of a minor  in the  first                                                                   
degree, but that is different type of crime.                                                                                    
                                                                                                                                
Co-Chair Chenault confirmed that  AS 11.41.410s addresses his                                                                   
largest concerns.                                                                                                               
                                                                                                                                
9:13:56 PM                                                                                                                    
                                                                                                                                
Representative  Gara  reiterated  that  he did  not  want  to                                                                   
change the law as it relates to older perpetrators.                                                                             
                                                                                                                                
Vice-Chair  Stoltze REMOVED  his OBJECTION  to Amendment  #3.                                                                   
There being NO OBJECTION, Amendment #3 was adopted.                                                                             
                                                                                                                                
Co-Chair   Chenault  MOVED   to  ADOPT   Amendment  #4   (25-                                                                   
LS0985\KA.2, Luckhaupt, 4/5/08, Copy on File).                                                                                  
                                                                                                                                
Vice-Chair Stoltze wanted to be  co-sponsor of the Amendment.                                                                   
                                                                                                                                
Co-Chair Meyer OBJECTED for DISCUSSION.                                                                                         
                                                                                                                                
Co-Chair  Chenault  explained  Amendment  #4  as  authorizing                                                                   
capital  punishment  for  certain  crimes  committed  against                                                                   
children.  He said the  Amendment reflected  the strength  of                                                                   
his feelings  about people  who prey upon  the weak.  It also                                                                   
authorizes capital punishment  for murder in the first degree                                                                   
and other  crimes  in the first  degree. He  told a  personal                                                                   
story of  a kidnapping in his  family. He did not  feel child                                                                   
molesters could be fixed and he  wanted to see them executed.                                                                   
                                                                                                                                
9:20:15 PM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  suggested  putting  the  Amendment  in                                                                   
another crime bill.                                                                                                             
                                                                                                                                
Vice-Chair  Stoltze   related  a   story  of  a   person  who                                                                   
victimized many children.                                                                                                       
                                                                                                                                
Representative  Gara  acknowledged  the  seriousness  of  the                                                                   
subject  and   the  strength   of  the  amendment   sponsor's                                                                   
convictions.   He  thought  the   debate  regarding   capital                                                                   
punishment  had to  be lengthy.   He  told the  story of  the                                                                   
murder of his father  when he was six. He thought  there were                                                                   
circumstances  where the  death penalty  applied, but  he was                                                                   
concerned   with  executing   an  innocent   person  who   is                                                                   
erroneously  convicted. He wanted  to have  the dispute  at a                                                                   
different time.                                                                                                                 
                                                                                                                                
9:25:12 PM                                                                                                                    
                                                                                                                                
Representative  Nelson  stated  her belief  that  people  who                                                                   
commit  heinous crimes  should be  punished accordingly.  But                                                                   
people  have been  accused erroneously,  especially poor  and                                                                   
minority people without adequate  representation. She pointed                                                                   
to 120  people who have been  exonerated from death  row. The                                                                   
reality of  the death penalty  poses many other  problems and                                                                   
high costs. The  money could be redirected  to rehabilitation                                                                   
programs.                                                                                                                       
                                                                                                                                
Co-Chair Chenault  reiterated his strong belief  in the death                                                                   
penalty. He did not want to put  innocent people to death. He                                                                   
WITHDREW Amendment  #4. There being  NO OBJECTION, it  was so                                                                   
ordered.                                                                                                                        
                                                                                                                                
9:30:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer referred to the fiscal notes, some of which                                                                      
could change with Amendment #3.                                                                                                 
                                                                                                                                
SB 185 was HEARD and HELD in Committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
CS FOR SENATE BILL NO. 221(FIN) am                                                                                            
                                                                                                                                
     An  Act making  and amending  appropriations,  including                                                                   
     capital  appropriations,   supplemental  appropriations,                                                                   
     and appropriations  to capitalize  funds; and  providing                                                                   
     for an effective date.                                                                                                     
                                                                                                                                
SB 221 was SCHEDULED but not HEARD.                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 265(FIN)                                                                                               
                                                                                                                                
     An  Act  relating  to  the  payment  of  permanent  fund                                                                   
     dividends  to certain individuals  required to  register                                                                   
     as  sex  offenders  or  child  kidnappers;  relating  to                                                                   
     execution  upon  permanent  fund dividends  by  civilian                                                                   
     process  servers using  electronic procedures;  amending                                                                   
     Rule 89, Alaska Rules of  Civil Procedure; and providing                                                                   
     for an effective date.                                                                                                     
                                                                                                                                
CS SB 265(FIN) was SCHEDULED but not HEARD.                                                                                     
                                                                                                                                
SENATE BILL NO. 304                                                                                                             
                                                                                                                                
     An  Act  authorizing  an   Alaska  regional  development                                                                   
     organization  to  use the  Alaska  Commercial  Fisheries                                                                   
     Entry Commission as an informational resource.                                                                             
                                                                                                                                
SB 304 was POSTPONED.                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 9:32 PM.                                                                                           

Document Name Date/Time Subjects