Legislature(1999 - 2000)

03/30/2000 03:07 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
               HOUSE HEALTH, EDUCATION AND SOCIAL                                                                               
                   SERVICES STANDING COMMITTEE                                                                                  
                         March 30, 2000                                                                                         
                            3:07 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Fred Dyson, Chairman                                                                                             
Representative Jim Whitaker                                                                                                     
Representative Joe Green                                                                                                        
Representative Carl Morgan                                                                                                      
Representative Tom Brice                                                                                                        
Representative Allen Kemplen                                                                                                    
Representative John Coghill                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 373                                                                                                              
"An Act relating  to return of contributed capital,  or payment of                                                              
a dividend, to  the state by the Alaska Student  Loan Corporation;                                                              
and providing for an effective date."                                                                                           
                                                                                                                                
     - MOVED HB 373 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 256                                                                                                              
"An Act relating  to reports of suspected child  abuse or neglect,                                                              
and requiring  that, as part of  the investigation of  the reports                                                              
of suspected child abuse or neglect,  all official interviews with                                                              
children  who are  alleged to  have  been abused  or neglected  be                                                              
recorded."                                                                                                                      
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 303                                                                                                              
"An Act relating to the method of  payment of fees and adoption of                                                              
regulations under AS 21; relating  to orders under AS 21 regarding                                                              
risk based capital instructions;  relating to accounting standards                                                              
for insurance  companies; amending the definitions  of 'creditable                                                              
coverage'  and   'late  enrollees'   in  AS  21.54;   relating  to                                                              
requirements   for   small   employer    insurers;   relating   to                                                              
requirements  for   issuance  of  new  voting  securities   by  an                                                              
insurance company;  requiring health  care insurance  coverage for                                                              
reconstructive surgery following  mastectomy; requiring guaranteed                                                              
renewability  of and certification  of coverage regarding  certain                                                              
individual health insurance policies; and providing for an                                                                      
effective date."                                                                                                                
                                                                                                                                
     - MOVED HB 303 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 301                                                                                                              
"An Act relating to the education of exceptional children; and                                                                  
providing for an effective date."                                                                                               
                                                                                                                                
     - BILL POSTPONED TO 4/04/00                                                                                                
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 373                                                                                                                  
SHORT TITLE: STUDENT LOAN CORP PAYMENTS TO STATE                                                                                
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2207     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2207     (H)  HES, FIN                                                                                            
 2/16/00      2207     (H)  ZERO FISCAL NOTE (DOE)                                                                              
 2/16/00      2207     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 3/02/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 3/02/00               (H)  Heard & Held                                                                                        
 3/02/00               (H)  MINUTE(HES)                                                                                         
 3/30/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
                                                                                                                                
BILL: HB 256                                                                                                                  
SHORT TITLE: RECORDING OF INTERVIEWS WITH CHILDREN                                                                              
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/10/00      1886     (H)  PREFILE RELEASED 12/30/99                                                                           
 1/10/00      1886     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/10/00      1886     (H)  HES, JUD, FIN                                                                                       
 1/10/00      1886     (H)  REFERRED TO HES                                                                                     
 2/29/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 2/29/00               (H)  Scheduled But Not Heard                                                                             
 3/21/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 3/21/00               (H)  Scheduled But Not Heard                                                                             
 3/30/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
                                                                                                                                
BILL: HB 303                                                                                                                  
SHORT TITLE: MISC. INSURANCE PROVISIONS                                                                                         
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/21/00      1967     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/21/00      1967     (H)  L&C, HES                                                                                            
 1/21/00      1967     (H)  ZERO FISCAL NOTE (DCED)                                                                             
 1/21/00      1967     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 3/20/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/20/00               (H)  Heard & Held                                                                                        
 3/20/00               (H)  MINUTE(L&C)                                                                                         
 3/22/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/22/00               (H)  Moved Out of Committee                                                                              
 3/22/00               (H)  MINUTE(L&C)                                                                                         
 3/23/00      2664     (H)  L&C RPT  1DP 5NR                                                                                    
 3/23/00      2665     (H)  DP: ROKEBERG; NR: MURKOWSKI, HARRIS,                                                                
 3/23/00      2665     (H)  CISSNA, BRICE, HALCRO                                                                               
 3/23/00      2665     (H)  ZERO FISCAL NOTE (DCED) 1/21/00                                                                     
 3/30/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
DIANE BARRANS, Executive Director                                                                                               
Alaska Commission on Postsecondary Education                                                                                    
Department of Education & Early Development                                                                                     
3030 Vintage Boulevard                                                                                                          
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified on HB 373.                                                                                       
                                                                                                                                
SHEILA KING, Finance Officer                                                                                                    
Division of Finance                                                                                                             
Alaska Commission on Postsecondary Education                                                                                    
Department of Education & Early Development                                                                                     
3030 Vintage Boulevard                                                                                                          
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified on HB 373.                                                                                       
                                                                                                                                
MARCI SCHMIDT                                                                                                                   
2040 Wasilla Fishhook Road                                                                                                      
Wasilla, Alaska 99654                                                                                                           
POSITION STATEMENT: Testified in support of HB 256, but noted her                                                               
disappointment that it is only a pilot project and not statewide.                                                               
                                                                                                                                
CHRIS STOCKARD, Captain                                                                                                         
Division of Alaska State Troopers                                                                                               
Department of Public Safety                                                                                                     
PO Box 111200                                                                                                                   
Juneau, Alaska  99811                                                                                                           
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
LAUREE HUGONIN, Director                                                                                                        
Alaska Network on Domestic Violence and Sexual Assault                                                                          
130 Seward Street, Room 209                                                                                                     
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
ANNE CARPENETI, Assistant Attorney General                                                                                      
Legal Services Section-Juneau                                                                                                   
Criminal Division                                                                                                               
Department of Law                                                                                                               
PO Box 110300                                                                                                                   
Juneau, Alaska  99811                                                                                                           
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
JANNA STEWART, Administrator                                                                                                    
Central Office                                                                                                                  
Family Services                                                                                                                 
Division of Family and Youth Services                                                                                           
Department of Health & Social Services                                                                                          
PO Box 110630                                                                                                                   
Juneau, Alaska  99811                                                                                                           
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
SARAH SHORT                                                                                                                     
5535 North Star                                                                                                                 
Anchorage, Alaska  99518                                                                                                        
POSITION STATEMENT:  Testified in support of HB 256.                                                                            
                                                                                                                                
LAUREL MURRAY                                                                                                                   
5535 North Star                                                                                                                 
Anchorage, Alaska  99518                                                                                                        
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
ADASSA AMIN                                                                                                                     
PO Box 40855                                                                                                                    
Anchorage, Alaska  99514                                                                                                        
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
HARRY NIEHAUS                                                                                                                   
Guardians for Family Rights                                                                                                     
PO Box 55455                                                                                                                    
North Pole, Alaska  99705                                                                                                       
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
PAUL NELSON                                                                                                                     
(no address provided)                                                                                                           
Haines, Alaska  99827                                                                                                           
POSITION STATEMENT:  Testified on HB 256.                                                                                       
                                                                                                                                
RUSS WEBB, Deputy Commissioner                                                                                                  
Department of Health & Social Services                                                                                          
PO Box 110601                                                                                                                   
Juneau, Alaska 99811-0601                                                                                                       
POSITION STATEMENT: Answered a question regarding HB 256.                                                                       
                                                                                                                                
BOB LOHR, Director                                                                                                              
Division of Insurance                                                                                                           
Department of Community & Economic Development                                                                                  
3601 C Street, Suite 124                                                                                                        
Anchorage, Alaska  99503                                                                                                        
POSITION STATEMENT:  Presented HB 303.                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-38, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN FRED DYSON called the House  Health, Education and Social                                                              
Services  Standing  Committee  meeting   to  order  at  3:07  p.m.                                                              
Members present at  the call to order were  Representatives Dyson,                                                              
Morgan,  Kemplen and  Coghill.   Representatives Whitaker,  Green,                                                              
Brice arrived as the meeting was in progress.                                                                                   
                                                                                                                                
HB 373 - STUDENT LOAN CORP PAYMENTS TO STATE                                                                                  
                                                                                                                                
Number 0031                                                                                                                     
                                                                                                                                
CHAIRMAN  DYSON announced  the first  order of  business as  House                                                              
Bill No. 373,  "An Act relating to return of  contributed capital,                                                              
or payment of a dividend, to the  state by the Alaska Student Loan                                                              
Corporation; and providing for an effective date."                                                                              
                                                                                                                                
Number 0093                                                                                                                     
                                                                                                                                
DIANE   BARRANS,   Executive  Director,   Alaska   Commission   on                                                              
Postsecondary   Education,  Department   of   Education  &   Early                                                              
Development, came forward to testify.   She explained she had sent                                                              
the committee members a letter dated  March 6 which answered their                                                              
previous questions  and a memo dated  March 20 which  responded on                                                              
the issue of garnishing Native corporation  dividends for repaying                                                              
student loans.   The Attorney  General's office believes  that the                                                              
Alaska  Student  Loan  Corporation  is  unable  to  attach  Native                                                              
corporation dividends  mainly because of the Doyon  decision which                                                            
prevented  attachment of  Native corporation  dividends for  child                                                              
support.                                                                                                                        
                                                                                                                                
CHAIRMAN DYSON  asked Ms. Barrans  to review her responses  in her                                                              
letter of March 6 for the committee.                                                                                            
                                                                                                                                
Number 0224                                                                                                                     
                                                                                                                                
MS. BARRANS referred to Representative  Kemplen's question [in the                                                              
last hearing] about  the use of current year net  income to offset                                                              
the revenues  expected from prior  loans.  She had  indicated that                                                              
the corporation could  not reduce expected income  on the existing                                                              
loans  by  prior  year  income  because   of  the  bond  indenture                                                              
covenants.  She indicated in her  letter that in the corporation's                                                              
official statement that could not  be done without violating those                                                              
bonds.                                                                                                                          
                                                                                                                                
MS. BARRANS indicated  that the next issue was the  ability to use                                                              
the  funds that  are  being proposed  to return  to  the state  to                                                              
further reduce future interest.   Due to the way in which interest                                                              
rates  are  calculated,  recycling  the small  amount  of  capital                                                              
proposed  for payment  to the  state would  not measurably  affect                                                              
that rate.  It is a small amount  of money in terms of the way the                                                              
interest rate  is calculated.  The  interest rate is set  based on                                                              
the cost of money on all outstanding  bonds and the administrative                                                              
cost of the  program.  It is  based on the recent history  of what                                                              
is paid for the  program which includes losses  due to bankruptcy,                                                              
death and disability.  Those costs  are loaded into the formula to                                                              
determine the  interest rates on new  loans.  The amount  of money                                                              
in HB 373 would not materially affect that rate.                                                                                
                                                                                                                                
CHAIRMAN DYSON  noted that the corporation's mission  statement is                                                              
to  continue reducing  the  interest  rates to  ensure  affordable                                                              
education to residents.                                                                                                         
                                                                                                                                
Number 0393                                                                                                                     
                                                                                                                                
MS. BARRANS responded that the corporation  expects to continue to                                                              
reduce those  rates.  The  rates have  been reduced by  .3 percent                                                              
for 2000-2001,  and the  corporation would  expect to continue  to                                                              
pass on future  reductions of the cost of running  the program and                                                              
reduce rates for borrowers.                                                                                                     
                                                                                                                                
MS. BARRANS  pointed out  in the  balance of  the response  in her                                                              
letter, she  gave a  little bit  of the  context that the  board's                                                              
discussion  was in  terms  of why  it  wanted to  do  what HB  373                                                              
proposes   to  do.     The  corporation's   fiscal  standing   has                                                              
effectively  been stabilized,  and  its credit  standing has  been                                                              
upgraded from  A to AA; interest  rates have been reduced  for the                                                              
past two  years; the  fund equity  deficient has  continued  to be                                                              
reduced.   The bill is the  fourth step in the  board's priorities                                                              
to begin  to return some of  the contributed capital to  the state                                                              
who was the original financing source.                                                                                          
                                                                                                                                
Number 0484                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL asked Ms.  Barrans to review what the total                                                              
payout  and the  time  for  payout would  be  on the  fund  equity                                                              
deficit.                                                                                                                        
                                                                                                                                
Number 0501                                                                                                                     
                                                                                                                                
MS. BARRANS  referred to two charts  that project the  fund equity                                                              
deficit for five  years into the future.  Projections  beyond that                                                              
have not  been done.   The  first chart  reflects the  accumulated                                                              
deficit of  fund equity.   It starts  with FY  1995 and  shows the                                                              
balance of  the original $306  million contributed of  each fiscal                                                              
year.  The fund equity dropped until  FY 1997, leveled off and now                                                              
has started to grow back as net incomes  are achieved on an annual                                                              
basis.  In  FY 1999, there was  an appreciable net income  of $6.4                                                              
million.   The  projected  net income  expects  to  show that  the                                                              
accumulated net deficit  will be cut in half by FY  2004 from what                                                              
it was in FY 1997.  The second graph  illustrates what the project                                                              
income is expected to be over the next several years.                                                                           
                                                                                                                                
MS. BARRANS  reminded the committee  these are projected  numbers.                                                              
They   are  based   on  historical   loss   provisions  that   are                                                              
recalculated  on an  annual basis.   These  projections are  quite                                                              
conservative.    The  corporation  expects  to  experience  better                                                              
numbers than these, but based on  past experience, the corporation                                                              
has to take a conservative approach to estimating those numbers.                                                                
                                                                                                                                
Number 0712                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE asked what the  difference is between FY 1999                                                              
and FY  2000 and what  is considered  the purpose of  the dramatic                                                              
projected decrease between  FY 1999 and FY 2001 and  then a steady                                                              
increase.                                                                                                                       
                                                                                                                                
Number 0743                                                                                                                     
                                                                                                                                
SHEILA  KING,   Finance  Officer,  Division  of   Finance,  Alaska                                                              
Commission on  Postsecondary Education, Department  of Education &                                                              
Early  Development, came  forward  to reply.    She explained  the                                                              
difference  is in  the interest  income projections.   The  income                                                              
projections used in  this scenario are calculated  by Smith Barney                                                              
and use  the latest cash  flows.  Smith  Barney considers  all the                                                              
defaults to happen  in the first three years of  those projections                                                              
so these  numbers are much  more conservative.   In FY  1999 there                                                              
was actually  $33 million of interest  income and in FY  2000, $30                                                              
million is being  projected.  More than that is  expected, but the                                                              
best estimate  used for  these projections  were the Smith  Barney                                                              
cash flows.                                                                                                                     
                                                                                                                                
MS. BARRANS told Representative Brice  that the $4.7 million is an                                                              
estimate.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  BRICE wondered why  there is the  big spike  in FY                                                              
1999 and  then the leveling  off and  if there is an  attributable                                                              
purpose to that.                                                                                                                
                                                                                                                                
MS. BARRANS replied  the interest that is charged  on the loans is                                                              
also being reduced.  The interest  earnings on those loans will go                                                              
down.                                                                                                                           
                                                                                                                                
REPRESENTATIVE KEMPLEN  asked where the $600,000  that is referred                                                              
to in  the fiscal  note is in  the chart  attached to Ms.  Barrans                                                              
letter dated March 6.                                                                                                           
                                                                                                                                
MS. KING  said the  number used  to calculate  the impact  on that                                                              
income was the  higher number, $2.2 million and  not the $600,000.                                                              
That money  does not  come out  of net  income; only the  interest                                                              
effect of sending that money out affects net income.                                                                            
                                                                                                                                
REPRESENTATIVE  KEMPLEN  asked how  big  of  a dividend  could  be                                                              
coming out of the student loan corporation  into the general fund.                                                              
                                                                                                                                
MS. KING replied that these projections  are conservative, but she                                                              
doesn't have a number  for what the dividend is going  to be.  The                                                              
parameters  set  by   the  legislation  were  set   to  allow  the                                                              
corporation to work towards all of the goals.                                                                                   
                                                                                                                                
REPRESENTATIVE KEMPLEN  asked Ms.  Barrans if the  board discussed                                                              
this  dividend  payment to  the  general  fund  and if  the  board                                                              
examined the tradeoff  between giving the general  fund a dividend                                                              
and  putting  in a  loan  program  that would  provide  additional                                                              
incentives or make it easier for Alaskans to get an education.                                                                  
                                                                                                                                
Number 1233                                                                                                                     
                                                                                                                                
MS. BARRANS noted  that there was discussion about  that; however,                                                              
the  discussion really  focused  on the  existing  programs.   She                                                              
explained  that there are  two boards  that she  reports to:   the                                                              
corporation board, that has the fiduciary  responsibility, and the                                                              
Alaska Commission on Postsecondary  Education board.  Those boards                                                              
share two  members in common.   The corporation board was  the one                                                              
who voted to  recommend that HB 373 come forward.   The commission                                                              
has been advised of it but has not  taken a position on this bill.                                                              
The corporation set the priorities  that she outlined in page 2 of                                                              
her  March  6   letter.    The  discussion  centered   around  the                                                              
priorities that were  set; there was no material  discussion about                                                              
using  the  net income  of  the  corporation  for other  types  of                                                              
programs.     There  was   general  discussion   about  what   the                                                              
legislature  and the  administration might  want to  do with  that                                                              
general fund money once it was returned  to the state, but that is                                                              
really where  the conversation  ended.  At  the last  meeting, the                                                              
Governor  said  he would  like  to  use the  returned  contributed                                                              
capital to fund the Alaska Scholars  program.  The board felt that                                                              
was a policy  call that it was not interested  in becoming engaged                                                              
in.                                                                                                                             
                                                                                                                                
MS. BARRANS further  explained that the commission  has a somewhat                                                              
different role; it authorizes schools  to operate in the state and                                                              
it oversees the staff who manage  the program.  The commission has                                                              
not taken an official position on HB 373.                                                                                       
                                                                                                                                
Number 1453                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE made a motion  to move HB 373 with individual                                                              
recommendations  and  attached  fiscal   note.    There  being  no                                                              
objection,  HB 373  moved  from the  House  Health, Education  and                                                              
Social Services Standing Committee.                                                                                             
                                                                                                                                
HB 256 - RECORDING OF INTERVIEWS WITH CHILDREN                                                                                
                                                                                                                                
Number 1484                                                                                                                     
                                                                                                                                
CHAIRMAN DYSON announced the next  order of business as House Bill                                                              
No. 256, "An  Act relating to reports of suspected  child abuse or                                                              
neglect, and requiring  that, as part of the investigation  of the                                                              
reports  of  suspected  child  abuse   or  neglect,  all  official                                                              
interviews with  children who are  alleged to have been  abused or                                                              
neglected be recorded."                                                                                                         
                                                                                                                                
Number 1494                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOHN COGHILL, Alaska  State Legislature,  sponsor,                                                              
came forward  to present HB  256.  He  told the committee  that HB
256 is an effort between Representative  Therriault and himself to                                                              
get a videotaping  bill to bring accountability and  to reduce the                                                              
number of  interviews a child would  face when taken  into custody                                                              
for suspected child abuse [or neglect].   He presented a committee                                                              
substitute.                                                                                                                     
                                                                                                                                
Number 1584                                                                                                                     
                                                                                                                                
CHAIRMAN  DYSON made  a  motion to  adopt  the proposed  committee                                                              
substitute (CS) for HB 256, version  LS1049\M, Luckhaupt, 3/30/00,                                                              
as a work draft.   There being no objection, Version  M was before                                                              
the committee.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  COGHILL explained  that Section  1 is the  purpose                                                              
and intent;  Section 2  is a pilot  project; and  Section 3  has a                                                              
repealer date in it.  The intent  of the proposed CS for HB 256 is                                                              
to  establish  a  pilot project  of  videotaping  interviews  with                                                              
children  who are  alleged  to have  been abused.    He noted  the                                                              
change  in the  beginning date,  October  1, 2000,  that would  be                                                              
earlier  since it  is  a localized  project.    The Department  of                                                              
Health &  Social Services would be  required to submit  an interim                                                              
report to the legislature in January  2002 [and a final report in]                                                              
January 2003.   It would  be a  demonstration project  to evaluate                                                              
the  [efficacy]  of requiring  scheduled  and  planned  interviews                                                              
conducted  with  children  who  have been  alleged  to  have  been                                                              
abused.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   COGHILL   said   HB   256   provides   that   the                                                              
admissibility of an interview that  wasn't videotaped would not be                                                              
affected  in   civil  or   criminal  proceedings.     Furthermore,                                                              
provisions  are included  in the  legislation regarding  equipment                                                              
malfunctions  as  well  as the  child's  health  or  psychological                                                              
condition,   which  could   preclude  or   hinder  an   interview.                                                              
Representative Coghill noted his  intention to provide a method of                                                              
recording the  statements of children  in order to  avoid multiple                                                              
interviews.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL  pointed out  that  Version  M includes  a                                                              
change on page 3, line 14, where the following section is added:                                                                
                                                                                                                                
     (d) Notwithstanding  (a) of  this section, videotaping  of an                                                              
     interview with  a child is not required when  the videotaping                                                              
     would be detrimental to the  child's health or impossible due                                                              
     to the  child's age or  physical or psychological  condition.                                                              
     A decision  not to videotape  under this subsection  shall be                                                              
     documented  in writing  at  the time  the  decision is  made.                                                              
     Unless  detrimental  or impossible  in  itself, an  interview                                                              
     with a child under this subsection shall be audiotaped.                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  noted he is trying to  achieve the highest                                                              
degree of  accountability and  the least  amount of intrusion  for                                                              
the children  and families.  He  indicated that he wanted  to have                                                              
some of the intent language from  the original HB 256 in the pilot                                                              
project, which can  be found in the outline of the  intent on page                                                              
2; that language  provides a framework for gauging  what the pilot                                                              
project  should  be.    However,  the intent  is  not  the  entire                                                              
requirement.   The requirement  is the  videotaping pilot  project                                                              
found in Version  M, page 2, beginning  on line 24.   He noted his                                                              
intention  to have  the  interview not  be  permissive unless  the                                                              
exceptions prevail.   He remarked that  this is the best  he could                                                              
do in  avoiding intrusive  interviews such  as those performed  in                                                              
cars where  a video  camera would  not be  available.  He  assumed                                                              
that  the  child  would  be  taken to  a  safe  location  for  the                                                              
interview and  thus his intention  is to, at that  time, videotape                                                              
[the interview];  he referred  to that  as a scheduled  interview.                                                              
He also noted  that the pilot  project shall continue for  no less                                                              
than 18  months.  Representative  Coghill expressed the  desire to                                                              
implement  the  highest  degree  of  accountability  through  this                                                              
system.                                                                                                                         
                                                                                                                                
Number 1965                                                                                                                     
                                                                                                                                
MARCI  SCHMIDT testified  via teleconference  from the  Matanuska-                                                              
Susitna  (Mat-Su)  Legislative  Information  Office  (LIO).    She                                                              
believes this  [videotaping] is  something that  needs to  be done                                                              
statewide.     Furthermore,   it  should   have  been  done   when                                                              
Representative  James proposed  something similar.   She  asked if                                                              
there was any way to have videotaping around the state.                                                                         
                                                                                                                                
CHAIRMAN DYSON  indicated there are  some practical  problems with                                                              
that  such  as  obtaining  the  equipment,  training  the  people,                                                              
handling  logistics  and  the  expense.   He  explained  that  the                                                              
details  are trying  to be  worked [on  by] taking  one step  at a                                                              
time.                                                                                                                           
                                                                                                                                
MS. SCHMIDT asked if the tapes of  the interviews can be viewed by                                                              
the judge and the attorneys on both sides.                                                                                      
                                                                                                                                
CHAIRMAN DYSON said  that others present were  indicating that the                                                              
answer is yes.                                                                                                                  
                                                                                                                                
Number 2046                                                                                                                     
                                                                                                                                
MS.  SCHMIDT expressed  her  support  for HB  256,  but noted  her                                                              
disappointment that it is only a  pilot project and not statewide.                                                              
                                                                                                                                
CHAIRMAN DYSON  noted his desire to eliminate  multiple interviews                                                              
and the  impact on  the child.   He asked Ms.  Schmidt if  she had                                                              
other concerns besides that.                                                                                                    
                                                                                                                                
MS. SCHMIDT  agreed that is a  high priority.  She  indicated that                                                              
the videotaping  will  be good for  the department  in that  there                                                              
will be no  question as to whether  the child was coached  or some                                                              
impropriety was done.                                                                                                           
                                                                                                                                
CHAIRMAN  DYSON  indicated  that  several  people  have  expressed                                                              
concern  about  conflicting  reports from  children  and  children                                                              
being coached  or coerced.  He  asked Ms. Schmidt if  she believed                                                              
that the videotaping might help to preclude some of that.                                                                       
                                                                                                                                
MS.  SCHMIDT  indicated that  she  believed  so.   She  felt  that                                                              
videotaping is  much better than audiotaping because  an audiotape                                                              
can easily be turned off and on;  however, with a videotape, there                                                              
is going to be  some differential.  If videotaping  is stopped, it                                                              
will be noticed when it is turned back on.                                                                                      
                                                                                                                                
Number 2135                                                                                                                     
                                                                                                                                
CHRIS  STOCKARD,  Captain,  Division  of  Alaska  State  Troopers,                                                              
Department of  Public Safety (DPS),  came forward to testify.   He                                                              
mentioned that  Version M  has addressed some  of the  concerns of                                                              
DPS.  The Department  of Public Safety, in general,  believes that                                                              
videotaping children's  interviews is not  a bad idea and  in many                                                              
cases around  the state,  the department does  that.   He stressed                                                              
that  the  concept   of  doing  team  interviews,   one  interview                                                              
satisfying  the needs of  several different  agencies, is  nothing                                                              
new and noted  his past experience in Fairbanks  where people from                                                              
different  agencies  would come  together  in  one place.    [Team                                                              
interviews] has been the standard  of law enforcement for the most                                                              
part.   Although it may  not occur in  every location or  in every                                                              
case, it is the  protocol/standard around the state  for DPS which                                                              
he believes to be the case in other departments as well.                                                                        
                                                                                                                                
CAPTAIN STOCKARD pointed  out some structural problems  in the CS.                                                              
He understood Section  1 to apply to all interviews  with children                                                              
at  all  times,  everywhere  in the  state.  [Section  1]  doesn't                                                              
include any  information about what  a scheduled interview  is and                                                              
it doesn't have  any of the exceptions regarding  when videotaping                                                              
might not happen or what alternatives  there might be.  He related                                                              
his  understanding   that  the  exceptions   apply  only   to  the                                                              
videotaping   pilot   project,   but   the   general   rule   that                                                              
[videotaping]  must be  done in  every case  literally applies  to                                                              
every case around the state.                                                                                                    
                                                                                                                                
CHAIRMAN  DYSON   asked  Captain  Stockard  about   the  logistics                                                              
involved if a trooper  had to fly to a remote  village in order to                                                              
investigate an accusation of sexual abuse to a child.                                                                           
                                                                                                                                
CAPTAIN  STOCKARD  indicated  there  are several  issues  in  that                                                              
circumstance.   He said that it  is not impractical for  a trooper                                                              
who thought  there might be  an interview with  a child to  pack a                                                              
video recorder and take it along;  there are several video cameras                                                              
out in the  field now.  However,  one of the difficulties  with [a                                                              
video camera versus a tape recorder]  is that a tape recorder is a                                                              
fairly easy  thing to turn on, set  down at the side  where nobody                                                              
really notices  it. [A tape  recorder] doesn't interfere  with the                                                              
process of  conducting an  interview.  Whereas  a video  camera is                                                              
typically much more  intrusive.  He commented that  setting up the                                                              
video camera  may create a  psychological barrier for  some people                                                              
[and prevent  them] from  being free  and open; it  is not  like a                                                              
private conversation.   Recording  with a  video camera  creates a                                                              
very different  dynamic than  the one that  occurs with  a trooper                                                              
carrying his tape recorder.                                                                                                     
                                                                                                                                
CAPTAIN STOCKARD  said that it is  routine to record  all victims'                                                              
statements, suspects'  statements and many witnesses'  statements.                                                              
He  noted that  sometimes  the person  is  asked  if he/she  minds                                                              
[being recorded] and the tape recorder  is put out [in view of the                                                              
person].  At  other times, when someone may be  intimidated by the                                                              
tape  recorder, the  trooper turns  the tape  recorder on  without                                                              
saying anything  about it.  He  reiterated that [a  tape recorder]                                                              
is   much  less   intrusive  in   the  process   of  carrying   on                                                              
communication   between    the   interviewer    and   interviewee.                                                              
Therefore, he sees some problems  with that from the standpoint of                                                              
an interviewer obtaining a good interview.                                                                                      
                                                                                                                                
REPRESENTATIVE COGHILL  clarified that  HB 256 is geared  toward a                                                              
pilot project  in a  particular locale  and thus Chairman  Dyson's                                                              
particular  scenario wouldn't apply  here.   Although it  would be                                                              
the intent of the legislature to  figure out how to install it, at                                                              
this point the focus  would be in regard to how to  do this in the                                                              
particular locale.                                                                                                              
                                                                                                                                
TAPE 00-38, SIDE B                                                                                                              
Number 2358                                                                                                                     
                                                                                                                                
CAPTAIN STOCKARD  said he understands  that to be the intent.   In                                                              
his conversations  with the Department  of Law, it appears  to him                                                              
that the general rule applies everywhere  and in some ways is more                                                              
restrictive than  the pilot project  rule.  Although that  may not                                                              
be how it was intended, it appears  that way here.  He referred to                                                              
page  2,  lines  28-31,  "The  Department  of  Health  and  Social                                                              
Services shall coordinate the purchase  of videotape equipment and                                                              
distribute it  ...".  That language  raises some questions  in the                                                              
mind  of DPS:   Does coordinate  it mean  maybe DHSS  is going  to                                                              
order the  equipment or specify it?;  Is DHSS going  to distribute                                                              
it?; Is DHSS going to give it out?;  Does this mean DHSS will send                                                              
a bill  to DPS?   He isn't  sure what  [that language]  means, and                                                              
furthermore DPS  has some minor  concerns about how  that actually                                                              
would work.                                                                                                                     
                                                                                                                                
CAPTAIN  STOCKARD referred  to page  3, line  14, subsection  (d),                                                              
which lists  some exceptions to  videotaping.  Perhaps,  a trooper                                                              
could make the argument for an exception  to videotaping in a case                                                              
in which a child  would be so intimidated by  the camera; however,                                                              
the  troopers  are  not  experts   in  regard  to  what  would  be                                                              
detrimental  to  a child's  psychological  health.   He  expressed                                                              
concern  that  it is  overly  restrictive  in  that there  may  be                                                              
circumstances  in  which  it  may  be  possible  and  feasible  to                                                              
[videotape  the interview],  but [videotaping  the interview]  may                                                              
just not be  practical or a good  idea in terms of getting  a good                                                              
interview.    In  such  a case,  the  department  would  still  be                                                              
required to try to [videotape the  interview].  Therefore, DPS has                                                              
some concerns there as well.                                                                                                    
                                                                                                                                
CHAIRMAN  DYSON  posed a  situation  in  which a  trooper  doesn't                                                              
videotape [an interview]  because it is "spooking" the  child.  He                                                              
asked Captain  Stockard if  he is  concerned that  if such  a case                                                              
comes to  court, the  trooper would be  criticized for  not taping                                                              
the interview.                                                                                                                  
                                                                                                                                
CAPTAIN  STOCKARD  agreed  that   may  be  an  issue.    Certainly                                                              
subsection (f)  on page 3, line 23,  does take care of  the purely                                                              
evidentiary question,  which was one of law  enforcement's biggest                                                              
concerns  before.   Captain  Stockard  stated  that DPS  wants  to                                                              
comply  with the law;  it wants  to do  what the  law says  to do.                                                              
However, it makes DPS very uncomfortable  to be in positions where                                                              
the  law  says something  "ought"  to  be  done.   Therefore,  DPS                                                              
prefers  that  the law  be  clearly  drafted while  providing  the                                                              
necessary flexibility to do it without  having to sort of bend the                                                              
rules.                                                                                                                          
                                                                                                                                
CAPTAIN STOCKARD  referred to subsection  (g) on page 3,  line 26,                                                              
which  addresses   the  scheduled   interview.    [The   scheduled                                                              
interview]  is a  very  difficult thing  to  define.   He posed  a                                                              
situation in  which a trooper agrees  to come by and speak  with a                                                              
child at 2 p.m.,  after someone from a school calls  and says this                                                              
child may have  a problem and the  troopers ought to come  out and                                                              
talk to him/her.   He indicated that would be kind  of a scheduled                                                              
interview;  certainly people  are  going to  argue it's  scheduled                                                              
since  they knew  an  interview was  going  to  happen.   However,                                                              
whether the  trooper knew  that this child  was actually  going to                                                              
reveal  anything is  somewhat questionable.    He reiterated  that                                                              
defining a scheduled interview is difficult.                                                                                    
                                                                                                                                
CHAIRMAN DYSON  said he has noticed  that some police  cars around                                                              
the country have video cameras that  are apparently turned on when                                                              
someone  is pulled  over.   He assumes  a  part of  that is  self-                                                              
defense  in that  the  video recording  makes  it  clear what  the                                                              
conduct of  the public safety officer  was in the case.   He asked                                                              
if those tapes are ever used in evidence.                                                                                       
                                                                                                                                
CAPTAIN  STOCKARD  specified  that  the  primary  purpose  is  the                                                              
gathering  of  evidence and  the  side  effect is  protecting  the                                                              
officers.  The  cameras are especially useful in  the DWI [driving                                                              
while  intoxicated]  situation  because   people  frequently  make                                                              
comments to  the officer during the  initial contact, jump  out of                                                              
the car, drop their stuff or clearly  wobble and bounce around the                                                              
highway  before they  have a  chance  to gather  their wits  about                                                              
them.  The tapes  are frequently used in evidence,  in evidence of                                                              
assaults on police  officers, and occasionally the  tapes are used                                                              
to diffuse public complaints about officer behavior.                                                                            
                                                                                                                                
CHAIRMAN DYSON  asked if it is easy  to detect if a  videotape has                                                              
been altered.                                                                                                                   
                                                                                                                                
CAPTAIN  STOCKARD   related  his  belief  that   with  traditional                                                              
videotapes,  it  is not  all  that  difficult  [to detect  if  the                                                              
videotape has been  altered].  There have been times  when the FBI                                                              
[Federal Bureau of Investigation]  and other forensic laboratories                                                              
have  looked at  tapes for  DPS and  have  been able  to say  this                                                              
audiotape or this  videotape has been cut and spliced  or has been                                                              
manipulated in  some way.  He  remarked that he doesn't  know what                                                              
is going to happen  when there is more digital  recording mediums.                                                              
He    believes   that  there  are  some  additional   problems  in                                                              
determining  what  is an  original  recording  and what  has  been                                                              
rerecorded.                                                                                                                     
                                                                                                                                
Number 2107                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL related his  understanding that the general                                                              
citizenry  believes that  it is always  the agency  that is  being                                                              
protected and not  the individual.  There have been  many cases in                                                              
which the  integrity of  [DPS/the troopers]  has been called  into                                                              
question because of accusations.   Therefore, this could certainly                                                              
be protection for  that situation.  However, DPS  gets to say when                                                              
it's  done   or  not   done  and   the  particular  people   being                                                              
interviewed, whether it's the child  or even a family, doesn't get                                                              
that  say.   He explained  that he  has  been trying  to give  the                                                              
people  interviewed   some  say   in  what  is  brought   forward.                                                              
Accountability  is  a  needed part  in  society.    Representative                                                              
Coghill   recognized   that   flexibility   in  regard   to   when                                                              
[videotaping] is  not appropriate is  necessary as is the  need to                                                              
for [DPS] to have some force to do it.                                                                                          
                                                                                                                                
Number 2035                                                                                                                     
                                                                                                                                
LAUREE HUGONIN, Director, Alaska  Network on Domestic Violence and                                                              
Sexual Assault (ANDVSA),  came forward to testify.   She explained                                                              
to the  committee that her organization  has been involved  in the                                                              
issue  of videotaping  for  several  years.   When  Representative                                                              
James brought forward legislation,  the Network expressed concern.                                                              
The ANDVSA  very much appreciates  the position of  having unified                                                              
interviewing  of  children  with  the  police  officer,  the  DFYS                                                              
[Division of Family  and Youth Services] worker,  the ICWA [Indian                                                              
Child Welfare  Act] worker and whoever  needs to be there  for the                                                              
interview all  at one time  in order to  reduce the trauma  to the                                                              
child.  The  Network's primary interest  is to make it  easier for                                                              
the child to discuss these horrible situations and issues.                                                                      
                                                                                                                                
MS. HUGONIN  explained that the  concern is with  "each" interview                                                              
being videotaped.   For example, when a child is  in a shelter and                                                              
the shelter workers suspects there  has been child abuse and makes                                                              
contact  with DFYS.    Sometimes it  is easier  to  have one  DFYS                                                              
worker come  to the program  to be with  the child, maybe  with an                                                              
advocate, and  have an  initial conversation,  not a taped  formal                                                              
interview.  Depending on the child's  age and/or the trauma, it is                                                              
going to take  more than one discussion  for the child  to be able                                                              
to  articulate what  has happened  to him/her.   The  interviewers                                                              
need  to be aware  of and  sensitive to  that; one  must not  lose                                                              
sight that they are dealing with children.                                                                                      
                                                                                                                                
MS. HUGONIN  noted that ANDVSA was  encouraged last time  when the                                                              
state's  child  abuse  agreement  between  state  departments  was                                                              
revised  and expanded  to include  physical  assault and  neglect.                                                              
Therefore,  there  are  hopefully  better  practices  between  law                                                              
enforcement and DFYS and any other  state entity involved in these                                                              
cases.  Another  step forward was  HB 375 and the revision  of the                                                              
child  abuse statutes.   Part  of that  was making  more of  DFYS'                                                              
incidents and  cases available  to the public  for review  such as                                                              
the information DFYS  is required to post on the  Internet.  There                                                              
has also been more work with training  DFYS workers; however, this                                                              
is a fundamental  area that needs more attention  and time devoted                                                              
to  it.     She  commented   on  the   importance  of   the  first                                                              
investigation  being  conducted  by trained  investigators.    She                                                              
informed the committee that DFYS  has set up a training center and                                                              
although  she  appreciated  the  fact  that  the  legislature  has                                                              
devoted some funding to [DFYS' training  center], but more funding                                                              
is necessary.   The Network is  trying to help out  with [funding]                                                              
and thus  it applied for and  received a federal grant  to provide                                                              
training  to  DFYS  and  ICWA workers  in  the  area  of  domestic                                                              
violence  and  child abuse  so  they  can  be better  prepared  to                                                              
appropriately question children and investigate.                                                                                
                                                                                                                                
Number 1869                                                                                                                     
                                                                                                                                
MS. HUGONIN also shared the concern  that Section 1 will apply all                                                              
the time, everywhere.  Therefore,  ANDVSA is much more comfortable                                                              
with  the idea  of  a  pilot study  in  which she  understood  the                                                              
importance  of having  a control  group and thus  not every  child                                                              
would go  through the videotaping  every time.   There would  be a                                                              
group of children  that would continue the normal  practice so the                                                              
two groups could  be compared and contrasted regarding  whether or                                                              
not this would be an effective way  to move forward.  She referred                                                              
to page  3, lines  6-10, which  says that  the final report  "must                                                              
include  ...  recommended draft  legislation  to  put in  place  a                                                              
permanent   statewide   videotaping    program   for   videotaping                                                              
interviews  of children  who are  alleged to have  been abused  or                                                              
neglected."  That  language sounds biased because  after the pilot                                                              
study, it  may be proven  that [a permanent statewide  videotaping                                                              
program]  is not the  best way  to proceed  in every instance  and                                                              
thus recommended legislation wouldn't be necessary.                                                                             
                                                                                                                                
MS.  HUGONIN  said   ANDVSA  is  also  concerned   about  how  the                                                              
videotapes will  be handled if allegations are  not substantiated.                                                              
She  inquired  as  to  the mechanism  for  taking  care  of  those                                                              
videotapes--are they always going  to be at DFYS or are they going                                                              
to be destroyed?   She noted the issue of confidentiality  for the                                                              
children as well  as the parents.  She asked  that those questions                                                              
be  considered.    She  then  turned  to  the  issue  of  repeated                                                              
videotaping.   With the current  language, videotaping as  part of                                                              
the  investigation  [would  mean  that] each  videotape  would  be                                                              
evidence and  would be  discoverable.   Therefore, there  could be                                                              
situations when  a child  doesn't say the  exact same  thing every                                                              
time [he/she  was videotaped],  which could be  used by  a defense                                                              
attorney   to  question   which   [account]   is  really   [true].                                                              
Therefore, ANDVSA is concerned about  how [the videotape] would be                                                              
used as evidence in those kinds of situations.                                                                                  
                                                                                                                                
Number 1712                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL said he understood  that the language "each                                                              
interview" is a problem.  He asked  Ms. Hugonin if there was a way                                                              
to define interviews  without saying "each" and  without inserting                                                              
several paragraphs of exceptions.                                                                                               
                                                                                                                                
MS. HUGONIN  answered that she has  been trying to come  up with a                                                              
word but has not.                                                                                                               
                                                                                                                                
REPRESENTATIVE COGHILL stated that he is open to [suggestions].                                                                 
                                                                                                                                
Number 1668                                                                                                                     
                                                                                                                                
ANNE  CARPENETI,   Assistant  Attorney  General,   Legal  Services                                                              
Section-Juneau,  Criminal   Division,  Department  of   Law,  came                                                              
forward to testify.  She expressed  concern about the way the bill                                                              
is  drafted  because  it  raises some  questions  that  should  be                                                              
answered.  She said that she doesn't  understand how the permanent                                                              
law  and the  temporary  law interrelate  in  this  bill.   Alaska                                                              
Statute  47.17.010,  which  is the  permanent  law  and  permanent                                                              
intent language,  provides that each  interview with a  child will                                                              
be videotaped and there are no exceptions  except in the temporary                                                              
law, which  will be repealed at  a certain point.   Therefore, all                                                              
the protections in  the exceptions won't apply to  what happens on                                                              
a permanent  basis.   She believes that  is something  that really                                                              
needs to  be made clear.   From DFYS  she understood that  if each                                                              
interview with a child is required  [to be videotaped], it will be                                                              
a terrible  burden on  the investigative process  and will  not be                                                              
good for children in Alaska.                                                                                                    
                                                                                                                                
MS.  CARPENETI  echoed earlier  comments  that the  definition  of                                                              
scheduled interviews is problematic.   The definition of scheduled                                                              
interviews isn't clear and would  probably require the videotaping                                                              
of  interviews   that  are  partly  spontaneous   and  partly  not                                                              
spontaneous.  Therefore, the meaning  of scheduled interview needs                                                              
to be made clearer.                                                                                                             
                                                                                                                                
Number 1565                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  affirmed that  he also struggled  with the                                                              
definition of a  scheduled interview.  At one point  he thought it                                                              
would be  better to describe  what it is  not rather than  what it                                                              
is, but that list  is almost as long.  He asked  the Department of                                                              
Law to  help him with language;  language that would  describe the                                                              
case in  which an  interview happens  that is  significant  to the                                                              
evidence of  the key issue, although  it may not be  a spontaneous                                                              
interview.                                                                                                                      
                                                                                                                                
MS. CARPENETI agreed to help work on the language.                                                                              
                                                                                                                                
CHAIRMAN  DYSON  remarked  that this  [type  of  interview]  would                                                              
easily  work  if the  videotaping  took  place at  child  advocacy                                                              
centers which  are set up  for a team  to assemble  with equipment                                                              
and trained people.   He said that he personally  knew that such a                                                              
situation has worked in those types of places.                                                                                  
                                                                                                                                
REPRESENTATIVE BRICE  inquired as to the impact this  will have on                                                              
prosecutors in  making a determination  whether to proceed  with a                                                              
case of abuse and neglect if there is mandated videotaping.                                                                     
                                                                                                                                
Number 1417                                                                                                                     
                                                                                                                                
MS. CARPENETI replied that is a tough  question.  Section 1 of the                                                              
bill currently provides  that each interview has  to be videotaped                                                              
and thus  she would  assume that  a prosecutor,  in preparing  for                                                              
trial, would  have to have a videotape  set up in the  office when                                                              
talking to the  witness.  She believes that it  would be difficult                                                              
to  prepare  a witness  for  trial,  specifically trying  to  make                                                              
him/her  feel comfortable  in really tough  circumstances  while a                                                              
video  camera is  on.   She indicated  that it  could hamper  [the                                                              
prosecutor].                                                                                                                    
                                                                                                                                
REPRESENTATIVE BRICE  said that he was basically trying  to get to                                                              
the  point Ms.  Carpeneti articulated  that  this potentially  can                                                              
cause some real  problems and create a barrier in  terms of making                                                              
sure that an abused or neglected child is taken care of.                                                                        
                                                                                                                                
MS. CARPENETI  agreed, especially the  way Section 1  is currently                                                              
written  as it  refers  to every  interview,  which would  include                                                              
interviews in  preparation for trial  and cross examination.   She                                                              
remarked that these situations are  difficult for adults [and thus                                                              
would be more so for] children.                                                                                                 
                                                                                                                                
REPRESENTATIVE COGHILL  agreed that this is a burden.   He related                                                              
his  understanding   that  the   social  worker  documents   every                                                              
conversation  with the  child  and the  court  only receives  that                                                              
document, the  document in regard  to what that  conversation was.                                                              
He said he is trying to bring some  light to the conversation that                                                              
has the  disinterested part,  although he  recognized that  it may                                                              
not be  practical in every  case.  He  asked if his  understand is                                                              
correct.                                                                                                                        
                                                                                                                                
MS. CARPENETI  replied that she believes Representative  Coghill's                                                              
understanding  is correct.   However, she  clarified that  she was                                                              
talking about a prosecutor preparing for trial.                                                                                 
                                                                                                                                
Number 1300                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  asked if the prosecutor  is only presented                                                              
with interviews that [the social  worker] documented, wouldn't the                                                              
prosecutor only  have their part of  the story.  He asked  how the                                                              
court or prosecutor view that.                                                                                                  
                                                                                                                                
MS.  CARPENETI answered  it  would be  viewed  the same  way as  a                                                              
police report or any other investigative  report; it would be read                                                              
and  used.    Ms.  Carpeneti  said   she  doesn't  understand  the                                                              
juxtaposition.   Although she understood Representative  Coghill's                                                              
point of  view, as  a prosecutor  preparing for  trial, she  would                                                              
view [the  social worker's  document] as  any other  investigative                                                              
report.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   COGHILL  said  he   wasn't  trying   to  leverage                                                              
anything.    He  stated  that  he just  wanted  to  know  how  Ms.                                                              
Carpeneti viewed these reports because  some people view them very                                                              
narrowly and think of them as very biased.                                                                                      
                                                                                                                                
CHAIRMAN DYSON  asked Ms. Carpeneti if  she can picture  in a CINA                                                              
[child in  need of aid] 48-hour  hearing, the judge  sitting there                                                              
watching a video as part of the evidence  or will he/she go on the                                                              
summaries of both parties.                                                                                                      
                                                                                                                                
MS. CARPENETI  answered she  has never  participated in  a 48-hour                                                              
hearing as it is  a civil hearing and thus she  deferred to a CINA                                                              
lawyer.                                                                                                                         
                                                                                                                                
Number 1196                                                                                                                     
                                                                                                                                
JANNA  STEWART, Administrator,  Central  Office, Family  Services,                                                              
Division  of  Family  and Youth  Services  (DFYS),  Department  of                                                              
Health &  Social Services  (DHSS), came forward  to testify.   She                                                              
pointed  out that  Jan  Rutherdale is  present  if Chairman  Dyson                                                              
wants  an answer  regarding the  use of  a videotape  in the  CINA                                                              
proceeding.                                                                                                                     
                                                                                                                                
MS.  STEWART  noted she  had  spent some  years  on  the bench  in                                                              
Anchorage,  and she  would have never  viewed  a videotape  in the                                                              
context of  doing a  48-hour hearing or  subsequent hearing.   She                                                              
pointed  out  that  for  the  most  part,  the  critical  evidence                                                              
regarding the  case most often does  not come from the  child; the                                                              
stronger   evidence  frequently   comes   from   other  forms   of                                                              
documentary evidence, medical evidence,  photographs and the like.                                                              
The child's  testimony is very rarely  solely relied on  to make a                                                              
decision, certainly  not at those earlier stages.   In response to                                                              
Chairman  Dyson, Ms.  Stewart  specified that  the  aforementioned                                                              
comments were drawn  from her experience as a judge.   However, as                                                              
a representative  of  DFYS, she  informed the  committee that  the                                                              
department would appreciate the ability of videotaping.                                                                         
                                                                                                                                
CHAIRMAN DYSON  asked Ms.  Stewart if she  could ever  foresee the                                                              
video being shown in court [in a CINA case].                                                                                    
                                                                                                                                
MS.  STEWART answered  yes, although  hardly ever  at the  48-hour                                                              
hearing.   In  further  response to  Chairman  Dyson, Ms.  Stewart                                                              
replied in  the context of a CINA  case, it is conceivable  that a                                                              
video would  be shown  in a custody  hearing.  Furthermore,  there                                                              
may be  many interviews  that would end  up being presented  under                                                              
the situation  that this  bill presents  with having to  videotape                                                              
each subsequent interview.                                                                                                      
                                                                                                                                
CHAIRMAN DYSON noted  that part of his enthusiasm  for videotaping                                                              
has  always   been  in  regard   to  the  criminal   abuse  cases,                                                              
particularly  sexual abuse,  in order  to prevent  the child  from                                                              
having to go through multiple interviews.   However, [videotaping]                                                              
in a  CINA hearing probably  is not going  to keep the  child from                                                              
more interviews.                                                                                                                
                                                                                                                                
MS. STEWART indicated  her belief that Chairman  Dyson is accurate                                                              
based  on conversations  she has  had  with Diana  Weber from  the                                                              
children's  advocacy center.   Ms.  Stewart noted  that she  can't                                                              
speak  for Ms.  Weber.    However, their  extensive  conversations                                                              
about  this bill  [have  revealed] Ms.  Weber's  concern that  the                                                              
videotape itself would very rarely  reduce the need for subsequent                                                              
interviews   because  of   the  different   nature  of   different                                                              
circumstances that  each videotape would bring out.   For example,                                                              
there  would  be  a therapeutic  interview  and  an  investigative                                                              
interview and it  doesn't always happen that everything  gotten in                                                              
an individual interview will satisfy  all subsequent purposes.  As                                                              
has  been  pointed   out,  with  children  there   are  sequential                                                              
interviews in  which more  and more disclosure  occurs.   The more                                                              
uncomfortable the interview  dynamic is, the harder it  is to have                                                              
productive  interviews because  children will  balk at  unfamiliar                                                              
circumstances, video  cameras, et cetera.  Therefore,  the concern                                                              
is that  possibly this  will not reduce  the number of  interviews                                                              
but rather, in  certain circumstances, it may  increase the number                                                              
of interviews that would have to be done.                                                                                       
                                                                                                                                
CHAIRMAN DYSON  asked if  there are  there circumstances  in which                                                              
carefully  crafted and  well-done video  interviews could  prevent                                                              
the  child  from having  to  testify  against the  perpetrator  in                                                              
court, especially a sexual abuse victim.                                                                                        
                                                                                                                                
MS. STEWART  noted that  there is  a substantial  body of  law and                                                              
research  on that  question in  other  states that  have made  the                                                              
effort to do  exactly that.  Those are very  carefully constructed                                                              
laws that  are subject  to a  great deal  of controversy  and have                                                              
been the subject  of supreme court cases.  She  clarified that she                                                              
did not  research this bill  that narrowly  because it is  not yet                                                              
attempting to get there.                                                                                                        
                                                                                                                                
Number 0899                                                                                                                     
                                                                                                                                
MS. STEWART  continued saying the  department [DHSS]  is generally                                                              
supportive  of the  concept of  videotaping and  audiotaping.   As                                                              
DHSS has reviewed this bill, there  are a number of concerns about                                                              
the breadth  of the  bill, the cost  of implementation,  the risks                                                              
broad  implementation will  bring  for the  children  and how  the                                                              
expense will not  match the quality of what [the  department] will                                                              
get.  She specified  the following concerns:  the  number of times                                                              
that the interview would have to  happen; the number of interviews                                                              
that  are  done  of  children around  the  state;  the  number  of                                                              
circumstances  in  which  the interview  itself  is  never  really                                                              
intended to  obtain evidence that,  in and of itself,  is critical                                                              
to  the  prosecution  of the  case  in  the  CINA context.    [The                                                              
department]  supports the  idea of  developing  multi-disciplinary                                                              
protocol and [DHSS] has made some  suggestions about when a multi-                                                              
disciplinary team would assess a  situation in regard to whether a                                                              
situation  would  be appropriate  to  videotape  or audiotape  and                                                              
likely  provide  a high  quality  of  evidence and  not  adversely                                                              
impact the  child and not  require multiple interviews.   However,                                                              
it is  very critical that  there not be  such breadth to  refer to                                                              
all interviews, all children, all the time.                                                                                     
                                                                                                                                
MS. STEWART  informed the  committee that  previous testimony  has                                                              
pointed  out the same  problems [DHSS]  is concerned  about:   the                                                              
problems  of  the  two  parts  of  the  bill.    [The  department]                                                              
appreciates the  exceptions in this  video pilot as they  are very                                                              
helpful, but  they don't appear to  apply to the bill as  a whole.                                                              
Although  DHSS would  like to  see  videotaping done  effectively,                                                              
cost effectively and in a quality  multi-disciplinary environment,                                                              
DHSS cannot  support the bill as  it currently stands.   Version M                                                              
is one  of the  most expensive  versions of  this legislation  yet                                                              
because it not only requires the  department to videotape whenever                                                              
possible,   the  department  also   has  to   have  a   backup  to                                                              
videotaping,  audiotaping.    Therefore, an  additional  layer  of                                                              
expense is created  in addition to the cost of  the pilot project.                                                              
She  explained  that  although  [this   legislation]  solves  some                                                              
problems, it  causes more expense  and doesn't necessarily  get to                                                              
the  heart  of  the  matter for  [the  department],  which  is  to                                                              
videotape  when appropriate  and in  a manner  that will  increase                                                              
child protection without inappropriately increasing costs.                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL asked Ms.  Stewart when  is it  proper and                                                              
appropriate to videotape an interview.                                                                                          
                                                                                                                                
MS. STEWART  replied  in the view  of DHSS,  videotaping would  be                                                              
appropriate based on statutory factors.   For example, videotaping                                                              
would be  appropriate when  proceeding with  the possibility  of a                                                              
CINA  action  for cases  of  risk  of substantial  physical  harm,                                                              
sexual  abuse,  mental injury  or  neglect.   However,  there  are                                                              
certain statutory  provisions in  the CINA law  which do  not lend                                                              
themselves to the information being  effectively gathered from the                                                              
child's interview.   She cited the following  statutory provisions                                                              
that  do not  lend  themselves to  the  evidence  coming from  the                                                              
children:   abandonment,  parental  incarceration, custodians  who                                                              
are  unwilling  or   unable  to  provide  care   or  need  medical                                                              
treatment.                                                                                                                      
                                                                                                                                
MS. STEWART said  in addition to that, DHSS would  like to propose                                                              
that  a  multi-disciplinary  team  could  develop  effective  non-                                                              
statutorially  based protocols that  would be  based on  the facts                                                              
and  circumstances of  the  case.   For example,  the  age of  the                                                              
child,  the likelihood  that  the  information obtained  from  the                                                              
child would  be unavailable through  other witnesses or  would not                                                              
be  available  through  other  means   such  as  medical  records,                                                              
physical examinations,  photographs or other kinds  of documentary                                                              
evidence.   Furthermore, DHSS  would like to  be able  to consider                                                              
the  likelihood  that a  child  is  going  to be  unavailable  for                                                              
subsequent  interviews.    Perhaps,  due to  the  child's  present                                                              
condition,  he/she  is  likely  to  be  sent out  of  state  to  a                                                              
specialized treatment  facility.   The department would  also like                                                              
to be  able to assess  whether or not  it believes, under  all the                                                              
facts and  circumstances of a case,  that it is likely  that it'll                                                              
be able to reduce  the need for subsequent interviews.   She noted                                                              
that the department  would also like to be able  to assess whether                                                              
or not  the child is going  to offer nonverbal  communication such                                                              
as  gestures, movements  or sexualized  acting out  that would  be                                                              
appropriate  to   capture  on  a  videotape.     Furthermore,  the                                                              
department  would like to  be able  to videotape in  circumstances                                                              
where  the child's  present  emotional, physical  or  communicated                                                              
state  is  such  that  it  would be  evidence  and  visible  on  a                                                              
videotape.   The department  would also  like to consider  whether                                                              
the information  being received  from the  interview of  the child                                                              
would be  the basis  for multiple legal  actions--not only  a CINA                                                              
action   but    also   criminal   prosecution    and   potentially                                                              
administrative and  licensing actions.  The department  would also                                                              
like  to  be  able  to  consider   whether  specialized  interview                                                              
equipment, techniques or services  such as language, sign or relay                                                              
interpreters  would be  appropriate.   It is the  position  of the                                                              
department that these  kinds of criteria are not  subjective.  Ms.                                                              
Stewart stated that  there are standards by which  protocols could                                                              
be developed  that would enable  the department and  other members                                                              
of  the   multi-disciplinary  team   to  make  an   effective  and                                                              
intelligent  decision regarding when  videotaping and  audiotaping                                                              
is appropriate and  thereby avoid hundreds of  interviews in which                                                              
the videotaping or audiotaping would  simply not be useful for any                                                              
member of the team.                                                                                                             
                                                                                                                                
REPRESENTATIVE  COGHILL specified  that  he is  looking to  define                                                              
that critical  time in  HB 256.   Representative Coghill  remarked                                                              
that  Ms. Stewart  is  [approaching  this] from  the  department's                                                              
need, while  he is [approaching this]  from the family's  need for                                                              
accountability from the department.   Therefore, he clarified that                                                              
he is  attempting to  obtain not only  the department's  needs but                                                              
the need for accountability for the family's sake.                                                                              
                                                                                                                                
Number 0452                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BRICE asked  if, in  terms of  the quality  of the                                                              
evidence  that social  workers are  trying to  gather, there  is a                                                              
differentiation  between  the  type  of  evidence,  the  level  of                                                              
evidence and  the quality  of evidence when  a civil CINA  case is                                                              
being pursued versus an actual criminal case.                                                                                   
                                                                                                                                
MS. STEWART  answered, "My general  answer to that  question would                                                              
be no  that we  don't ...  try less hard  if there's  not to  be a                                                              
criminal action."                                                                                                               
                                                                                                                                
REPRESENTATIVE  BRICE noted  his assumption  that the  evidentiary                                                              
standards for  a criminal  case would be  higher than for  a civil                                                              
case.                                                                                                                           
                                                                                                                                
MS.  STEWART stated  that  the standard  of  proof  in a  criminal                                                              
matter  is proof  beyond reasonable  doubt while  the standard  of                                                              
proof in a civil matter is a preponderance,  and there are levels.                                                              
Although there is a lesser standard  of proof [for civil matters],                                                              
that  doesn't  necessarily  mean  that  there  is going  to  be  a                                                              
fundamental difference in the quality of the evidence gathered.                                                                 
                                                                                                                                
REPRESENTATIVE BRICE  said, "But on  the other hand,  the evidence                                                              
you have presented  might be able to get you  to the preponderance                                                              
of  evidence,  but  it would  probably  not  withstand  the  cross                                                              
examination  of proof  beyond a reasonable  doubt.   So, in  other                                                              
words, what I see  DFYS doing is when they go  in and take custody                                                              
of a child - that is a civil procedure  - ... there may or may not                                                              
be  criminal charges  against the  parents,  and that  determining                                                              
factor,  I  hope,  is  that   they  just  cannot  build  beyond  a                                                              
reasonable doubt standard because of lack of evidence."                                                                         
                                                                                                                                
MS. STEWART replied  that is essentially correct,  although it may                                                              
not  be a  lack of  evidence situation.   She  explained that  the                                                              
factors  simply  may  not  be there  to  find  parents  criminally                                                              
liable; it  may be a  question that the  evidence simply  does not                                                              
exist.  She  pointed out that it  is very common for a  case to be                                                              
prosecuted as a CINA case and not as a criminal case.                                                                           
                                                                                                                                
Number 0165                                                                                                                     
                                                                                                                                
SARAH  SHORT testified  via teleconference  from  Anchorage.   She                                                              
expressed  her support  for HB  256 but  noted her  disappointment                                                              
that it  is a pilot  project because she  believes it needs  to be                                                              
statewide.  She agreed with some  of the concerns of the state and                                                              
the police.   Every person  who is involved  in a CINA  hearing or                                                              
the 48-hour hearing  has some input that is very  valuable to this                                                              
bill.   In regard to  unsubstantiated [charges],  those videotapes                                                              
should be  given to the  parents to be  used as defense  in future                                                              
allegations.   She said that  time and time again  unsubstantiated                                                              
reports of harm  surface because  the state is more aware of these                                                              
people and maybe  the state should be more aware  of these people.                                                              
However,  it   is  very  hard  on   a  family  to   keep  fighting                                                              
unsubstantiated allegations.  Regarding  whether videotapes should                                                              
be  viewed in  court, Ms.  Short doesn't  see any  reason to  keep                                                              
videotapes out of court because children  deserve to have a voice,                                                              
and  they deserve  to be  heard.   She indicated  that judges  who                                                              
don't want to or don't have the time  to watch these tapes are not                                                              
getting  the whole  picture.   She  stated, "The  parents ...  are                                                              
seeing, from their point of view,  their words are getting twisted                                                              
around, that  they know  their child from  one point of  view, and                                                              
the  state sees  it from  the other."   Ms.  Short commented  that                                                              
videotapes  would help the  children, the  parents and  the foster                                                              
parents as well as the caseworker.                                                                                              
                                                                                                                                
TAPE 00-39, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MS.  SHORT  said  as a  survivor  of  childhood  molestation,  she                                                              
informed  the committee  that she  is very aware  of the  emotions                                                              
that a child  would feel being videotaped.  Being  videotaped as a                                                              
child  is very  intimidating,  but  coercive interviewing  is  far                                                              
worse.   Furthermore, the damage  [coercive interviewing]  does to                                                              
the family  and the community  as well as  the cost far  exceeds a                                                              
full-fledged  videotaping bill.   Therefore,  Ms. Short likes  the                                                              
original bill and supports the sponsor statement.                                                                               
                                                                                                                                
Number 0073                                                                                                                     
                                                                                                                                
LAUREL MURRAY  testified via teleconference  from Anchorage.   Ms.                                                              
Murray related  her personal experience  with this  subject matter                                                              
in which  her son, Steven Murray,  was killed in the  state's care                                                              
this past July.  After many reports  of harm, Steven ran away from                                                              
the foster  home in  April and  filed his  own complaint  with the                                                              
police.  The  police took his statement  of being hit with  a belt                                                              
and took  photos of six welts  on his buttocks; that  was physical                                                              
evidence  of abuse.   Ms. Murray  charged that  it would  have not                                                              
been  so easy  for  the state  to  coerce her  son  to recant  the                                                              
allegations  of abuse against  Melissa Falgoust  if the  interview                                                              
had been videotaped.   If her son had not been  coerced [by DFYS],                                                              
he might  not have been returned  to that home and  would probably                                                              
still be  alive.   Ms. Murray also  charged, "If  DFYS was  not in                                                              
fear of exposure for their negligence,  they'd spend the money not                                                              
only to  protect children  like Steven, but  also to  protect good                                                              
case workers and  the state from abuse of discretion  and wrongful                                                              
death lawsuits."  Ms. Murray related  her belief that a videotaped                                                              
interview  would have  helped save  her  son and  would also  help                                                              
wrongfully  accused   foster  parents  and  parents   protect  the                                                              
children  they  love.   She  said  that she  believes  videotaping                                                              
statewide is needed.                                                                                                            
                                                                                                                                
CHAIRMAN DYSON  asked Ms. Murray  what evidence she had  that DFYS                                                              
coerced Steven into changing or recanting his testimony.                                                                        
                                                                                                                                
MS. MURRAY  answered, "Part of it  is in a police report  that the                                                              
officer filed  where it was  betraying Melissa Falgoust  and DFYS;                                                              
where they had gone to the police  and told them that this was his                                                              
way of trying to get home with his mother."                                                                                     
                                                                                                                                
Number 0256                                                                                                                     
                                                                                                                                
ADASSA  AMIN testified  via teleconference  from  Anchorage.   She                                                              
said, "I  don't think that there  should be any dollar  figure put                                                              
on  the investigative  skills or  lack  thereof when  it comes  to                                                              
implementing  ... what is  being applied by  an officer  or social                                                              
worker or other law enforcement agent  while trying to investigate                                                              
or  interview  for  prospective   abuse  and/or  victimization  of                                                              
children."    She   noted  her  agreement  with   Laurel  Murray's                                                              
testimony.                                                                                                                      
                                                                                                                                
Number 0334                                                                                                                     
                                                                                                                                
HARRY  NIEHAUS,   Guardians  of   Family  Rights,  testified   via                                                              
teleconference  from  Fairbanks.   He  echoed  Captain  Stockard's                                                              
concern  regarding  what  is  "spontaneous."    Mr.  Niehaus  also                                                              
expressed  concern about  "intake"  techniques; the  intent is  to                                                              
ensure  professional techniques.    He believes  that  videotaping                                                              
will reveal  a lot of inappropriate  techniques and create  a more                                                              
professional  agency, and therefore  increase accountability.   He                                                              
also  believes   videotaping  would  reduce  some   travesties  to                                                              
justice.   Furthermore,  ethics need  to  be upheld  and could  be                                                              
reviewed  via a  videotape.   [Videotaping] is  a great  reviewing                                                              
tool, and he  is 100 percent for  it.  Mr. Niehaus stated  that he                                                              
would  like  to  see  [this  videotaping  program  be  implemented                                                              
statewide].                                                                                                                     
                                                                                                                                
Number 0454                                                                                                                     
                                                                                                                                
PAUL NELSON testified via teleconference  from Haines.  Mr. Nelson                                                              
read the following testimony:                                                                                                   
                                                                                                                                
     I request  the legislature to enact legislation  for the                                                                   
     videotaping  of all interviews  of allegations  of child                                                                   
     abuse  and  neglect.   The  taping  of  interviews  will                                                                   
     prevent  false allegations  of  abuse  and neglect  from                                                                   
     destroying families.   I would  also like to  see felony                                                                   
     penalties for  the failure to videotape and  also felony                                                                   
     penalties for erasure or alteration of those tapes.                                                                        
                                                                                                                                
MR.  NELSON  related  his  personal experience  in  which  he  was                                                              
accused of child  abuse in the 1980s.  In his  case, the child was                                                              
interviewed by the  local police on videotape, but  after about 20                                                              
minutes the  videotape was  turned off.   The videotaping  resumed                                                              
when the child  did what the interviewers  wanted her to  do.  Mr.                                                              
Nelson  believes that  video was  part of the  reason the  charges                                                              
were dismissed against him when he refused to plea bargain.                                                                     
                                                                                                                                
MR. NELSON noted that the state troopers  already have videotaping                                                              
equipment.   He disagreed  completely with  DFYS about  conducting                                                              
interviews before taping because  the first interview can and will                                                              
result  in indictments  and  arrests.   He  said if  there are  no                                                              
grounds, the  first interview  should give all  parties a  view of                                                              
that.  He also disagreed completely  with the person who said this                                                              
is difficult to  do because the people who are  accused could face                                                              
unclassified felonies and life in  prison.  People who are falsely                                                              
accused need  to be protected.   Mr. Nelson suggested  eliminating                                                              
some of the people at DFYS if there  is a need for money.  If this                                                              
can only be a pilot project, he requested  that all municipalities                                                              
be asked  to voluntarily participate.   In conclusion,  Mr. Nelson                                                              
stated that he would like to see  the enactment of the original AS                                                              
47.17.028, which [requires] that all interviews be videotaped.                                                                  
                                                                                                                                
REPRESENTATIVE COGHILL  remarked that  more work needs to  be done                                                              
on HB 256.  He noted that the intent  language was not meant to go                                                              
beyond the  pilot project  and thus  he'll have  to return  to the                                                              
drafter  to  [make that  clear].    He said  that  he is  open  to                                                              
suggestions regarding  the language, "each interview,"  as well as                                                              
how to get to that critical interview.   Furthermore, he noted his                                                              
understanding [of the concerns surrounding]  scheduled interviews.                                                              
Representative Coghill  stated, "But I  refuse to think  that this                                                              
needs to be  a department tool; it  needs to be a  citizen's tool.                                                              
So, I'm still ...  want to go in that direction."   In conclusion,                                                              
Representative Coghill  said that this  matter could be  worked on                                                              
in  a subcommittee  or he  could  continue to  work on  it in  his                                                              
office; he deferred to the chair's wisdom.                                                                                      
                                                                                                                                
CHAIRMAN  DYSON  asked Russ  Webb  if  he  knew what  the  present                                                              
schedule  is  for  getting  the child  advocacy  center  going  in                                                              
Fairbanks.    He  understands  there  is  some  federal  money  to                                                              
continue the work.                                                                                                              
                                                                                                                                
Number 0770                                                                                                                     
                                                                                                                                
RUSS  WEBB, Deputy  Commissioner,  Department of  Health &  Social                                                              
Services, came  forward saying he  didn't have the answer  to that                                                              
question.                                                                                                                       
                                                                                                                                
CHAIRMAN DYSON  remarked that he  saw [child advocacy  centers] as                                                              
one way  to pull together  multi-disciplinary teams,  videoing and                                                              
the like.  Chairman Dyson then closed  the hearing on HB 256.  [HB
256 was held over.]                                                                                                             
                                                                                                                                
HB 303 - MISC. INSURANCE PROVISIONS                                                                                           
                                                                                                                                
Number 799                                                                                                                      
                                                                                                                                
CHAIRMAN DYSON announced the next  order of business as House Bill                                                              
No. 303,  "An Act relating  to the method  of payment of  fees and                                                              
adoption of regulations  under AS 21; relating to  orders under AS                                                              
21  regarding   risk  based  capital  instructions;   relating  to                                                              
accounting  standards   for  insurance  companies;   amending  the                                                              
definitions of  'creditable coverage'  and 'late enrollees'  in AS                                                              
21.54;  relating  to requirements  for  small  employer  insurers;                                                              
relating to requirements for issuance  of new voting securities by                                                              
an insurance  company;  requiring health  care insurance  coverage                                                              
for  reconstructive   surgery   following  mastectomy;   requiring                                                              
guaranteed   renewability  of   and   certification  of   coverage                                                              
regarding  certain  individual  health   insurance  policies;  and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
Number 0815                                                                                                                     
                                                                                                                                
BOB  LOHR,   Director,  Division   of  Insurance,  Department   of                                                              
Community  & Economic  Development,  testified via  teleconference                                                              
from  Anchorage.    He  told  the  committee  that  Representative                                                              
Rokeberg,  Chairman,  House Labor  and  Commerce  Committee did  a                                                              
search of representatives  of each insurance  related organization                                                              
in  the  state  that  might  have  concerns  about  the  bill  and                                                              
responded  to questions,  and there  was no  adverse testimony  in                                                              
House Labor and Commerce Committee concerning this bill.                                                                        
                                                                                                                                
MR. LOHR explained  what HB 303 does.   It allows the  Director of                                                              
the Division of  Insurance to require electronic  payment of fees.                                                              
That is  not controversial  at this stage  and would  put deposits                                                              
into the  general fund.   It updates  and moves obsolete  language                                                              
from  the statutes  related to  the accounting  procedures.   When                                                              
insurance companies  file their  annual financial statements  with                                                              
the division,  there specific procedures  that they follow.   This                                                              
bill  would conform  the statutes  to  national model  regulations                                                              
developed  by the  National Association  of Insurance  Commission.                                                              
These  are  regulations  that most  multi-national  companies  are                                                              
comfortable with and aware of and  expect to go into force January                                                              
1, 2001.  The  division has already adopted regulations  for that.                                                              
However, there are  a few accounting provisions in  state law that                                                              
are not  consistent with those rules,  and this bill  will conform                                                              
them to the national model rules.                                                                                               
                                                                                                                                
MR. LOHR  explained the  third major  area involves HIPAA  [Health                                                              
Insurance  Portability  and Accountability  Act  of  1996].   Most                                                              
state law changes that were required  for conforming to HIPAA were                                                              
made  in 1997  by the  legislature.   However, several  provisions                                                              
have been identified  that were not  caught at the time.   One has                                                              
led to  the federal Health  Care Financing Administration  writing                                                              
to the  Governor and asking  what the  intention of the  state was                                                              
with respect  to that provision,  because if it were  not enforced                                                              
by the state, then  there would be the risk of  preemption by this                                                              
federal agency.   At this point,  the division is  enforcing those                                                              
provisions  in  policy  language under  current  state  authority.                                                              
However, there is a specific change  there that would be required.                                                              
There are  additional specific requirements  there, but  there are                                                              
no  mandates beyond  those required  by federal  law contained  in                                                              
these changes.                                                                                                                  
                                                                                                                                
Number 0998                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL referred to  page 8, line 24, and asked Mr.                                                              
Lohr explain "or other state high-risk pool."                                                                                   
                                                                                                                                
MR. LOHR answered  that there are two state high-risk  pools.  One                                                              
is the Comprehensive Health Insurance  Association (CHIA), and the                                                              
other is the Small Employer Health Insurance Association.                                                                       
                                                                                                                                
REPRESENTATIVE  BRICE  made  a  motion  to  move  HB  303  out  of                                                              
committee with  individual recommendations  and zero  fiscal note.                                                              
There being  no objection,  HB 303  moved from  the House  Health,                                                              
Education and Social Services Standing Committee.                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health, Education and Social Services Standing Committee meeting                                                                
was adjourned at 5:00 p.m.                                                                                                      
                                                                                                                                

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