Legislature(1999 - 2000)

03/29/1999 01:11 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE JUDICIARY STANDING COMMITTEE                                                                                     
                   March 29, 1999                                                                                               
                     1:11 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Pete Kott, Chairman                                                                                              
Representative Joe Green                                                                                                        
Representative Norman Rokeberg                                                                                                  
Representative Jeannette James                                                                                                  
Representative Lisa Murkowski                                                                                                   
Representative Eric Croft                                                                                                       
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
CS FOR SENATE BILL NO. 77(JUD)                                                                                                  
"An Act prohibiting certain civil actions against firearms or                                                                   
ammunition manufacturers and dealers."                                                                                          
                                                                                                                                
     - WAIVED CSSB 77(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 18                                                                                                   
Proposing an amendment to the Constitution of the State of Alaska                                                               
relating to an office of administrative hearings.                                                                               
                                                                                                                                
     - HEARD AND HELD; ASSIGNED TO SUBCOMMITTEE                                                                                 
                                                                                                                                
* HOUSE BILL NO. 134                                                                                                            
"An Act relating to the authority of the Department of Natural                                                                  
Resources to issue citations for certain skiing violations;                                                                     
relating to establishing a bail schedule for certain skiing                                                                     
violations and to procedures for issuing a citation for a skiing                                                                
violation."                                                                                                                     
                                                                                                                                
     - MOVED HB 134 OUT OF COMMITTEE                                                                                            
                                                                                                                                
* HOUSE BILL NO. 151                                                                                                            
"An Act relating to revocation and reinstatement of the driver's                                                                
license of a person at least 14 but not yet 21 years of age."                                                                   
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
* HOUSE BILL NO. 99                                                                                                             
"An Act relating to sexual assault and the definitions of 'sexual                                                               
contact,' 'sexual penetration,' and 'legal guardian' in AS 11."                                                                 
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
GOVERNOR'S APPOINTMENTS                                                                                                         
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: SB  77                                                                                                                    
SHORT TITLE: LIABILITY RELATING TO FIREARMS                                                                                     
SPONSOR(S): SENATOR(S) KELLY PETE, Ward, Donley, Taylor, Halford,                                                               
Green, Miller                                                                                                                   
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/18/99       286     (S)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/18/99       286     (S)  JUD, FIN                                                                                            
 2/24/99       353     (S)  COSPONSOR(S): WARD                                                                                  
 3/08/99               (S)  JUD AT  1:30 PM                                                                                     
 3/08/99               (S)  SCHEDULED BUT NOT HEARD                                                                             
 3/12/99               (S)  JUD AT  1:30 PM                                                                                     
 3/12/99               (S)  HEARD AND HELD                                                                                      
 3/12/99               (S)  MINUTE(JUD)                                                                                         
 3/15/99               (S)  JUD AT  1:30 PM BELTZ 211                                                                           
 3/15/99               (S)  MOVED COMMITTEE SUBSTITUTE (JUD) OUT                                                                
                            OF COMMITTEE                                                                                        
 3/15/99               (S)  MINUTE(JUD)                                                                                         
 3/15/99       546     (S)  COSPONSOR(S):DONLEY, TAYLOR, HALFORD,                                                               
 3/15/99       546     (S)  GREEN, MILLER                                                                                       
 3/16/99       563     (S)  JUD RPT  COMMITTEE SUBSTITUTE  4DP                                                                  
                            NEW TITLE                                                                                           
 3/16/99       563     (S)  DP:TAYLOR, TORGERSON, DONLEY, HALFORD                                                               
 3/16/99       563     (S)  ZERO FISCAL NOTE (COURT)                                                                            
 3/22/99       635     (S)  FIN REFERRAL WAIVED                                                                                 
 3/23/99               (S)  RLS AT 10:50 AM FAHRENKAMP 203                                                                      
 3/23/99               (S)  MINUTE(RLS)                                                                                         
 3/25/99       681     (S)  RULES TO CALENDAR  AND 1 OR 3/25/99                                                                 
 3/25/99       684     (S)  READ THE SECOND TIME                                                                                
 3/25/99       684     (S)  JUD  COMMITTEE SUBSTITUTE ADOPTED                                                                   
                            UNAN CONSENT                                                                                        
 3/25/99       684     (S)  ADVANCED TO THIRD READING UNAN                                                                      
                            CONSENT                                                                                             
 3/25/99       684     (S)  READ THE THIRD TIME  CSSB 77(JUD)                                                                   
 3/25/99       685     (S)  PASSED Y15 N5                                                                                       
 3/25/99       685     (S)  ELLIS  NOTICE OF RECONSIDERATION                                                                    
 3/26/99       703     (S)  RECONSIDERATION NOT TAKEN UP                                                                        
 3/26/99       704     (S)  TRANSMITTED TO (H)                                                                                  
 3/29/99       597     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/29/99       598     (H)  JUD                                                                                                 
                                                                                                                                
BILL: HJR 18                                                                                                                    
SHORT TITLE: CONST. AM: ADMINISTRATIVE HEARINGS                                                                                 
SPONSOR(S): REPRESENTATIVES(S) OGAN, Foster, Dyson, Rokeberg                                                                    
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/24/99       300     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/24/99       300     (H)  STA, JUD, FIN                                                                                       
 2/26/99       328     (H)  COSPONSOR(S): FOSTER                                                                                
 3/04/99               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/04/99               (H)  HEARD AND HELD                                                                                      
 3/04/99               (H)  MINUTE(STA)                                                                                         
 3/05/99       377     (H)  COSPONSOR(S): DYSON, ROKEBERG                                                                       
 3/09/99               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/09/99               (H)  SCHEDULED BUT NOT HEARD                                                                             
 3/16/99               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/16/99               (H)  MOVED CSHJR 18(STA) OUT OF COMMITTEE                                                                
 3/16/99               (H)  MINUTE(STA)                                                                                         
 3/17/99       489     (H)  STA RPT  COMMITTEE SUBSTITUTE(STA) NT                                                               
                            4DP 2DNP                                                                                            
 3/17/99       489     (H)  DP: JAMES, COGHILL, WHITAKER, OGAN;                                                                 
 3/17/99       489     (H)  DNP: SMALLEY, KERTTULA                                                                              
 3/17/99       490     (H)  FISCAL NOTE (GOV)                                                                                   
 3/17/99       490     (H)  REFERRED TO JUD                                                                                     
 3/24/99               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 3/24/99               (H)  HEARD AND HELD                                                                                      
 3/24/99               (H)  MINUTE(JUD)                                                                                         
 3/29/99               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 134                                                                                                                    
SHORT TITLE: SKI VIOLATIONS BAIL SCHEDULE                                                                                       
SPONSOR(S): REPRESENTATIVES(S) HUDSON, Kerttula, Bunde, Phillips                                                                
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/12/99       438     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/12/99       438     (H)  JUDICIARY                                                                                           
 3/26/99       587     (H)  COSPONSOR(S): PHILLIPS                                                                              
 3/29/99               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
TERESA WILLIAMS, Assistant Attorney General                                                                                     
Fair Business Practices Section                                                                                                 
Civil Division                                                                                                                  
Department of Law                                                                                                               
1031 West 4th Avenue, Suite 200                                                                                                 
Anchorage, Alaska 99501-1994                                                                                                    
Telephone:  (907) 269-5100                                                                                                      
POSITION STATEMENT: Answered questions regarding HJR 18.                                                                        
                                                                                                                                
EDWARD HEIN, Member                                                                                                             
National Association of Administrative Law Judges                                                                               
3000 Blueberry Hills Road                                                                                                       
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 586-7261                                                                                                      
POSITION STATEMENT: Testified in favor of HJR 18.                                                                               
                                                                                                                                
REPRESENTATIVE SCOTT OGAN                                                                                                       
Alaska State Legislature                                                                                                        
Capitol Building, Room 128                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-3878                                                                                                      
POSITION STATEMENT: Sponsor of HJR 18.                                                                                          
                                                                                                                                
REPRESENTATIVE BILL HUDSON                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 108                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-3744                                                                                                      
POSITION STATEMENT: Sponsor of HB 134.                                                                                          
                                                                                                                                
LARRY DANIELS, General Manager                                                                                                  
Alyeska Resort                                                                                                                  
P.O. Box 249                                                                                                                    
Girdwood, Alaska 99587                                                                                                          
Telephone:  (907) 754-1111                                                                                                      
POSITION STATEMENT: Testified in support of HB 134.                                                                             
                                                                                                                                
GARY MENDIVIL, Vice President                                                                                                   
Alaska Ski Areas Association                                                                                                    
155 South Seward Street                                                                                                         
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 586-5284                                                                                                      
POSITION STATEMENT: Testified in support of HB 134.                                                                             
                                                                                                                                
PAUL SWANSON, Manager                                                                                                           
Eaglecrest Ski Area                                                                                                             
155 South Seward Street                                                                                                         
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 586-5284                                                                                                      
POSITION STATEMENT: Testified in support of HB 134.                                                                             
                                                                                                                                
RUPE ANDREW                                                                                                                     
Address not provided                                                                                                            
Telephone:  (907) 789-7422                                                                                                      
POSITION STATEMENT: Testified in support of the intent of HB 134.                                                               
                                                                                                                                
GARY CUSCIA, President                                                                                                          
Eaglecrest Ski Area Board of Directors                                                                                          
Address not provided                                                                                                            
Telephone:  (907) 789-5009                                                                                                      
POSITION STATEMENT: Testified in support of HB 134.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-20, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN PETE KOTT called the House Judiciary Standing Committee                                                                
meeting to order at 1:11 p.m.  Members present at the call to order                                                             
were Representatives Kott, Green, James, Croft and Kerttula.                                                                    
Representatives Murkowski and Rokeberg arrived at 1:15 p.m. and                                                                 
1:19 p.m., respectively.                                                                                                        
                                                                                                                                
                                                                                                                                
CSSB 77(JUD) - LIABILITY RELATING TO FIREARMS                                                                                   
                                                                                                                                
Number 0069                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced the first order of business is CSSB
77(JUD), "An Act prohibiting certain civil actions against firearms                                                             
or ammunition manufacturers and dealers."                                                                                       
                                                                                                                                
CHAIRMAN KOTT announced that the bill will be waived out of                                                                     
committee.  The House Judiciary Standing Committee already passed                                                               
out of committee an identical version on March 22, 1999 [HB 103].                                                               
                                                                                                                                
Number 0118                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked Chairman Kott whether the Senate version                                                             
incorporated all of the amendments.                                                                                             
                                                                                                                                
CHAIRMAN KOTT replied it's essentially the same.  If anybody wants                                                              
to debate this, he suggested meeting about it later in the day or                                                               
anytime before Wednesday [March 31, 1999].                                                                                      
                                                                                                                                
                                                                                                                                
HJR 18 - CONST. AM:  ADMINISTRATIVE HEARINGS                                                                                    
                                                                                                                                
CHAIRMAN KOTT announced the next order of business is HJR 18,                                                                   
Proposing an amendment to the Constitution of the State of Alaska                                                               
relating to an office of administrative hearings.                                                                               
                                                                                                                                
CHAIRMAN KOTT indicated the committee will consider CSHJR 18(STA),                                                              
1-LS0513\G.                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced that Teresa Williams in on the                                                                          
teleconference network and asked her for the citation on the court                                                              
case she mentioned at the last meeting.                                                                                         
                                                                                                                                
TERESA WILLIAMS, Assistant Attorney General, Fair Business                                                                      
Practices Section, Civil Division, Department of Law, testified via                                                             
teleconference from Anchorage.  She replied the citation is 938 P.                                                              
2nd 1091.                                                                                                                       
                                                                                                                                
Number 0274                                                                                                                     
                                                                                                                                
EDWARD HEIN, Member, National Association of Administrative Law                                                                 
Judges, testified in Juneau.  The association supports the                                                                      
resolution.  He is also in charge of the Administrative Appeals                                                                 
Office for the National Marine Fisheries Service-Alaska Region; he                                                              
is a licensed attorney; and, he is a former attorney for                                                                        
Legislative Legal Counsel.  Mr. Hein stated that HJR 18 is not a                                                                
new idea.  One-half of the states have a central panel of                                                                       
administrative law judges and hearing officers.  This type of                                                                   
proposal, in various forms, has been before the legislature.  He                                                                
cited last year and about 14 to 15 years ago.  But, this resolution                                                             
is new in that it would establish a central panel by                                                                            
constitutional amendment rather than by statute.  Alaska would be                                                               
the first state to do so.  There are at least three good reasons                                                                
for placing this office in the constitution.  He cited the                                                                      
following:                                                                                                                      
                                                                                                                                
     First, centralizing the function of administrative                                                                         
     adjudication is an important change in the structure of the                                                                
     executive branch, and is a subject of constitutional                                                                       
     dimension;                                                                                                                 
                                                                                                                                
     Second, a constitutional amendment would give the public a                                                                 
     direct voice on this issue, and it would not be subject to the                                                             
     Governor's veto; and                                                                                                       
                                                                                                                                
     Third, approval by voters would provide a clear public mandate                                                             
     and deadline for both the legislature and the Administration                                                               
     to take action.                                                                                                            
                                                                                                                                
MR. HEIN stated that previous efforts to create a central panel                                                                 
have been sidetracked by fights over the administrative details.                                                                
That is to say that they aren't important.  But, this resolution                                                                
focuses the debate on the main question:  Is a central office of                                                                
administrative hearings a good idea for Alaska?  Will it improve                                                                
the fairness, efficiency and cost-effectiveness of administrative                                                               
hearings in Alaska?  Many witnesses from individual agencies have                                                               
come before the legislature expressing fears and concerns of how a                                                              
centralized administrative hearings office would affect their                                                                   
agencies when much of that testimony is premature.  The shape of                                                                
the proposed central panel would not be determined until the                                                                    
legislature considers implementing legislation.  The purposes of                                                                
the legislation are to centralize the administrative adjudicative                                                               
function of the executive branch in a single agency; to create a                                                                
core of professional, independent hearing officers who would                                                                    
provide the public with both the reality and appearance of                                                                      
impartial, fair administrative hearings; to eliminate costly and                                                                
inefficient duplication of hearing officers and support staff                                                                   
positions in the executive branch; and to provide a uniform                                                                     
adjudication process and set of rules for all who have to                                                                       
participate in administrative hearings.  This legislation is not                                                                
intended to limit the legislature's power to create new                                                                         
quasi-judicial agencies in addition to the proposed office of                                                                   
administrative hearings, nor is it intended to prevent the                                                                      
legislature from continuing the adjudication function of selected                                                               
existing boards and commissions, if the legislature so chooses.  It                                                             
is not intended to impinge on the adjudicatory functions of the                                                                 
judicial or legislative branch, or to create a fourth branch of                                                                 
government.  It is not intended to disrupt the ability of the                                                                   
governor and heads of agencies to carry out public policy.  The                                                                 
head of the office of administrative hearings would be appointed by                                                             
the governor, and the office would be within the executive branch.                                                              
A central hearings office would actually relieve executive agencies                                                             
and heads from some political pressures to decide cases a certain                                                               
way.                                                                                                                            
                                                                                                                                
MR. HEIN stated the legislature, as the resolution is written now,                                                              
would determine the jurisdiction of the office of administrative                                                                
hearings in the implementing legislation.  The legislature could                                                                
decide which agencies, if any, should be exempt from this office's                                                              
jurisdiction.  The legislature could also decide to exempt certain                                                              
types of matters from this office's jurisdiction.  The language of                                                              
this constitutional amendment does not require that the office of                                                               
administrative hearings have exclusive jurisdiction over all the                                                                
administrative adjudications.  It starts with the premise that the                                                              
office of administrative hearings has jurisdiction over                                                                         
adjudications in the executive branch, but it leaves the                                                                        
legislature the power to carve out whatever it chooses in its                                                                   
wisdom.  The legislature could provide, if it wished, that the                                                                  
office of administrative hearings would have mandatory jurisdiction                                                             
over some agencies and discretionary jurisdiction over other                                                                    
specified agencies.  Agencies over which this office had                                                                        
discretionary jurisdiction could by agreement refer selective cases                                                             
to the office of administrative hearings for hearing and decision.                                                              
But, as the resolution is written now, all decisions of the office                                                              
of administrative hearings would be final and appealable to the                                                                 
superior court.                                                                                                                 
                                                                                                                                
MR. HEIN stated one objection raised was that in centralizing the                                                               
adjudicative function expertise would be lost; the technical                                                                    
expertise that is necessary in many of the hearings that are                                                                    
currently run by various agencies.  But, there is no reason that                                                                
the office of administrative hearings could not have subject-matter                                                             
expertise to decide all cases within its jurisdiction.  The chief                                                               
administrative law judge would have inherent authority to hire                                                                  
hearing officers with certain areas of expertise, perhaps from                                                                  
existing state agency hearing officers.  The legislature could, if                                                              
it wished, require that appropriate expertise be included within                                                                
the office of administrative hearings or that the persons assigned                                                              
to particular cases have the appropriate expertise.  The chief                                                                  
administrative law judge could also provide training and continuing                                                             
education as needed.  In addition, the agencies that are party to                                                               
hearings before this office could present expert testimony.                                                                     
                                                                                                                                
MR. HEIN stated another objection raised was that this legislation                                                              
would limit the legislature's authority to determine the office's                                                               
jurisdiction.  The Office of the Attorney General argues that                                                                   
because the proposed constitutional amendment uses language similar                                                             
to Article IV, section 1, the legislature could not by statute take                                                             
away some of the office's exclusive jurisdiction over all                                                                       
administrative hearings.  In response, firstly, the proposed                                                                    
resolution does not delete the last sentence of Article III,                                                                    
section 22, which authorizes the legislature to establish by law                                                                
additional quasi-judicial agencies.  In other words, the                                                                        
legislature would implicitly retain the authority to establish or                                                               
retain adjudicative power in agencies other than the office of                                                                  
administrative hearings.  Secondly, the Rozkydal v. State case                                                                  
interpreted statutes which limited the right of convicted felons to                                                             
appeal their sentence to the court of appeals, and which limited                                                                
the court's jurisdiction to hear sentencing appeals.  The court                                                                 
held that the statutes were constitutional, but concluded that the                                                              
appellate retained the right to petition the Alaska Supreme Court                                                               
for sentence review.  The court of appeals citing a supreme court                                                               
case noted that there would be a serious constitutional problem if                                                              
a statute were interpreted in a way that infringed on the supreme                                                               
court's authority as the highest court of the state with final                                                                  
appellate jurisdiction.  The resolution, however, does not have                                                                 
such language.  So, it's not clear whether a holding in that case                                                               
would apply to this proposed constitutional amendment.  Finally, in                                                             
the Rozkydal v. State and Hickel v. Halford cases the courts have                                                               
stated that it would take a commonsense approach to interpreting                                                                
the language of constitutional amendments, and that it would look                                                               
to legislative reports to determine their purpose and intent.  In                                                               
Hickel v. Halford for example, the court said that unless the                                                                   
context suggests otherwise words are to be given their natural,                                                                 
obvious and ordinary meaning.  The court is generally reluctant to                                                              
construe abstrusely any constitutional term that has a plain,                                                                   
ordinary meaning absent some signs that the term has acquired                                                                   
peculiar meaning by statute definition or judicial construction.                                                                
Otherwise, the court defers to the meaning the people themselves                                                                
placed on the proposition.  The court referred to a House Finance                                                               
Subcommittee report to determine the purpose of the amendment.                                                                  
And, likewise, in Rozkydal, the court referred to a House Judiciary                                                             
Standing Committee report on HB 281 and rendered a decision based                                                               
on the description of the legislative history in that report.  The                                                              
reports that the legislature writes are not ignored.  That's not to                                                             
say that other intent language should not be included; and,                                                                     
obviously, the clearer [the language] the better.                                                                               
                                                                                                                                
MR. HEIN stated another objection raised was that this is too                                                                   
broad; it covers too many things, not just adjudicative hearings.                                                               
The Office of the Attorney General cites Hickel v. Halford, and                                                                 
that the term "administrative law hearings" covers all agency                                                                   
dispute resolutions.  The intent is to cover adjudications.  If                                                                 
that is not clear, he suggested changing the language.  In Hickel,                                                              
the term "administrative proceedings" is interpreted which while it                                                             
refers to adjudications is a different term.  It was interpreted in                                                             
the context of the amendment that created the Budget Reserve Fund.                                                              
In Alaska's statutes, regulations and cases, the preferred term is                                                              
"administrative hearing".  It is one that has been widely                                                                       
recognized, and one that all three branches of government                                                                       
understand its meaning.                                                                                                         
                                                                                                                                
MR. HEIN stated another objection raised was to the term "final                                                                 
agency decision".  It is not actually agency decisions.  He will                                                                
not quibble about using that term, however.  The intent is to show                                                              
that once a decision has been rendered by the office of                                                                         
administrative hearings, it would be appealable to the court                                                                    
system; it would not go back to the agency for finalization and                                                                 
review.                                                                                                                         
                                                                                                                                
MR. HEIN stated another objection raised was that the title                                                                     
administrative law judge and chief administrative law judge are too                                                             
formal, and, Alaska has purposely not adopted the administrative                                                                
law judge style of hearing officer because it would be too formal.                                                              
That hearing officers would wear robes, and would be referred to as                                                             
"Judge" and "Your Honor".  He has never found that a title makes                                                                
any difference, and how an individual hearing officer acts is up to                                                             
that officer.  In addition, there are some positions in the state                                                               
that have the title administrative law judge.  One was created for                                                              
revenue hearings.                                                                                                               
                                                                                                                                
MR. HEIN stated another objection raised was concern about the                                                                  
hearings becoming too formal.  That is a reasonable concern.  The                                                               
obvious intent is to provide a less formal, less expensive, and                                                                 
less time consuming process than the court system.  That is                                                                     
implicit with any administrative hearing procedure, but there is                                                                
nothing in this legislation that would suggest or require the                                                                   
nature of the hearings to be changed.                                                                                           
                                                                                                                                
MR. HEIN stated another objection raised was that there is no                                                                   
provision for the removal of the chief administrative law judge for                                                             
cause.  He suggested adding that provision wouldn't hurt.  He noted                                                             
that SJR 19 has such language.                                                                                                  
                                                                                                                                
Number 1311                                                                                                                     
                                                                                                                                
MR. HEIN stated, in conclusion, that he is here from the federal                                                                
government, so he doesn't have to fear any retribution for what he                                                              
says today.  Therefore, on behalf of all the state hearing officers                                                             
who do not feel free to speak out publicly, either in support or                                                                
opposition, he knows of specific examples where hearing officers                                                                
have been told pointedly that they are not to be objective and                                                                  
impartial because they work for an agency.  There have been                                                                     
instances in which executive branch supervisors have told hearing                                                               
officers how individual cases are to be decided.  According to                                                                  
horror stories from hearing officers from many different states, it                                                             
is not uncommon to hear that hearing officers within an agency are                                                              
subject to pressures from their supervisors to decide cases a                                                                   
certain way.  This reflects a disregard for the basic principles of                                                             
due processes, fair hearings and impartial hearing officers.  As a                                                              
hearing officer himself, it is exceptionally important that hearing                                                             
officers are not placed in a position of jeopardizing their career                                                              
or job in order to do what they think is right in a given case.                                                                 
The public also has a right to expect that a hearing officer is                                                                 
going to render a fair decision, otherwise the parties, public and                                                              
attorneys come to the agencies as a matter of going through the                                                                 
motions and do not expect real justice.  This legislation can go a                                                              
long way towards remedying those types of problems.  He is not                                                                  
saying that Alaska's administrative process is particularly worse                                                               
than other states, but rather that this is an inherent problem                                                                  
common in most states.  The result of a central office would be to                                                              
have more impartial, professional, and better trained decision                                                                  
makers, as well as better decisions that would ultimately benefit                                                               
the public.                                                                                                                     
                                                                                                                                
Number 1496                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Mr. Hein why the other 49 states, of which                                                                  
one-half have this type of process, have not gone to a                                                                          
constitutional amendment.                                                                                                       
                                                                                                                                
MR. HEIN replied he really doesn't know why it hasn't been done in                                                              
other states.  This is the first time that he is aware of this type                                                             
of approach.  There hasn't been any objection to it as far as he                                                                
can tell; there just isn't any literature on it.  He has talked to                                                              
a few people who are the heads of central panels in other states                                                                
and they think it is a wonderful idea.  "Maybe they just didn't                                                                 
think of it before, I don't know."  He feels that this is the right                                                             
approach.  It doesn't sully the constitution or is inconsistent                                                                 
with other types of provisions in the constitution.  "I will admit,                                                             
however, that by placing this agency within the constitution, by                                                                
creating it by constitutional amendment, you are making a                                                                       
commitment to the agency.  You're saying, 'we're not going to be                                                                
able to turnaround in a couple of years and pass a bill to abolish                                                              
it.'  You have control over funding, obviously, and you'll have                                                                 
control over the--the legislation that sets up the details and the                                                              
structure of it, and you'll have continuing oversight over the                                                                  
agency."  It is an important change in the way the state does                                                                   
business and putting it in the constitution is a way to make it                                                                 
permanent and to give the public a direct voice.                                                                                
                                                                                                                                
Number 1635                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Hein whether the National                                                                     
Association of Administrative Law Judges supports this particular                                                               
bill.                                                                                                                           
                                                                                                                                
MR. HEIN replied the National Association of Administrative Law                                                                 
Judges does not have a statement on this particular bill or the                                                                 
approach of using a constitutional amendment.  It supports the                                                                  
concept of a central panel.  It supports in particular the model                                                                
Act drafted by the ABA (Alaska Bar Association).  The officers that                                                             
he has spoken to from the association agree with this approach.  It                                                             
is not inconsistent with other pieces of legislation.  Of course,                                                               
the legislature in Alaska has the right and discretion to create                                                                
any kind of legislation that it wants in detail to create a central                                                             
panel.  The 25 states that have a central panel have chosen various                                                             
structures and various degrees of coverage.  He noted that no state                                                             
has 100 percent coverage, and for good reasons.  He doesn't expect                                                              
that Alaska would have 100 percent coverage either.  There is                                                                   
nothing in this piece of legislation that is inconsistent with the                                                              
overall goal of a central panel.                                                                                                
                                                                                                                                
Number 1735                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said that Mr. Hein testified in favor of                                                                   
Representative Ogan's bill last year.  He asked him whether that                                                                
bill was constitutional.  In other words, can a central panel be                                                                
set up without a constitutional amendment?                                                                                      
                                                                                                                                
MR. HEIN replied yes.  Article III, section 22, of the state                                                                    
constitution, says that the legislature has the specific authority                                                              
to create quasi-legislative [quasi-judicial] agencies.  This                                                                    
legislation does not remove that provision.  He doesn't know of any                                                             
constitutional provision that is an impediment to creating a                                                                    
central panel by legislation.                                                                                                   
                                                                                                                                
Number 1779                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said he has substantial worries that it would                                                              
limit the legislature's power.  If the legislature has the complete                                                             
power to create a central power, he asked Mr. Hein wouldn't that                                                                
cause unintended problems?                                                                                                      
                                                                                                                                
MR. HEIN replied there are only problems if the legislature                                                                     
actually does something.  The legislature has never acted on this                                                               
issue.  The bill that came before the legislature last year died in                                                             
subcommittee.  The bill introduced years ago never saw the light of                                                             
day because there wasn't the will on the part of the Administration                                                             
or perhaps the legislature at the time to take action.  Objections                                                              
to a 200-page bill were very easy to find, and it was very easy to                                                              
stop.  "And, without some public mandate to do it, and some time                                                                
limit to get it done, as this would do if it passes, I don't think                                                              
the legislature will approve any legislation on a central panel.                                                                
Now, show me I'm wrong."  This legislation asks the legislature to                                                              
make a commitment to not only create an agency and accept the basic                                                             
concept, but to put it before the public to make the final                                                                      
decision.  It still leaves the difficult battle of sorting out all                                                              
the details of a central panel.  Clearly, if this passes the public                                                             
vote, the legislature will have a major task on its hands.  The                                                                 
resolution starts from the premise that there would be an agency                                                                
with jurisdiction over administrative hearings and that the various                                                             
agencies would have to come before the legislature and justify why                                                              
they should be opted out.  They might have very good reasons for                                                                
why they shouldn't be covered under a central panel.  But, this                                                                 
starts with that premise.  It gives the legislature marching orders                                                             
and direction.  In essence, by approving the resolution, the                                                                    
legislature is agreeing to put itself under discipline; and,                                                                    
frankly, that is a big part of this.                                                                                            
                                                                                                                                
Number 1934                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT stated it seems that the discipline may be                                                                 
imposed by the courts.  If this vests administrative law hearings                                                               
and final agency decisions [in the office of administrative                                                                     
hearings], then it would be for the legislature to sort it out                                                                  
later.  The courts would sort it out when the legislature has                                                                   
plenary power to do it now.  "If we enact this, we may have a much                                                              
more limited power.  It may be the court telling us which decisions                                                             
are under this and which aren't, and, not which ones we choose.  In                                                             
fact, the court would be telling us what their reading of 'final                                                                
agency decision' is, and when we make out differing allocations                                                                 
they'd be telling us whether it's right or wrong under this                                                                     
provision and that worries me."                                                                                                 
                                                                                                                                
MR. HEIN said he is not wedded to any particular language in the                                                                
resolution.  He is interested in the basic concept and goals.  He                                                               
suggested changing the language, if there are concerns.  It can be                                                              
easily changed, if there is a consensus.  The courts have said that                                                             
they will interpret the language in an obvious way.  The question                                                               
still is one of liking the concept or not.                                                                                      
                                                                                                                                
Number 2016                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT said, if the legislature likes the concept, wouldn't                                                              
it be more efficient to proceed statutorily in pieces rather than                                                               
to come up with a 200-page bill?  He thinks, that the legislature                                                               
gives up some of its responsibility, if a constitutional amendment                                                              
goes before the voters.                                                                                                         
                                                                                                                                
MR. HEIN said this resolution is more efficient because it                                                                      
recognizes that this is a big job, looks at the administrative                                                                  
process as a whole, deals with the Administrative Procedure Act and                                                             
all the different agencies and statutes that might be affected by                                                               
this.  That could very well take two years, but this cuts across                                                                
legislatures; it provides a mandate that would supply the                                                                       
consistency lost from legislature to legislature.  The resolution                                                               
would give the time frame and requirement to work on this large                                                                 
project over a period of two years or more.  In addition, there is                                                              
nothing in the resolution that says the legislature can't bite off                                                              
a little bit at a time.  It would allow for some experiment and                                                                 
would require the participation of the Administration and the                                                                   
different agencies to come forward and explain why they think this                                                              
is or isn't a good idea and why their particular board or                                                                       
commission should or shouldn't be under a central office.  This                                                                 
resolution would provide the commitment and need to work on this                                                                
issue during the interim, and there is nothing to prevent the                                                                   
legislature from assigning a special committee to work on it year                                                               
round in order to come up with a proposed bill before the public                                                                
even votes on it.  It's up to the legislature.  He reiterated a                                                                 
constitutional amendment gives more options.                                                                                    
                                                                                                                                
Number 2203                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Hein how this resolution does                                                                
not create a fourth branch of government, intentionally or                                                                      
unintentionally.                                                                                                                
                                                                                                                                
MR. HEIN replied when he was in school the fourth branch of                                                                     
government was the press.  The administrative branch is sometimes                                                               
referred to as the fourth branch of government.  It was not                                                                     
originally part of the U.S. Constitution, and it is not spelled out                                                             
very well in the state constitution.  There is quite a lot of                                                                   
latitude for the legislature to create an administrative branch by                                                              
establishing as many boards and commissions as it so chooses.  The                                                              
resolution is not talking about a separate branch of government; it                                                             
is talking about the legislature asserting its power to tell the                                                                
executive branch that it would like this function centralized                                                                   
within the executive branch.  It doesn't take it outside of the                                                                 
executive branch.  A governor's appointee heads the office of                                                                   
administrative hearings.  In addition, the legislature is not                                                                   
required to put everything in this central agency.  It wouldn't                                                                 
make sense to do that ultimately.  It really challenges the                                                                     
executive and legislative branches to decide what is their paradigm                                                             
for administrative hearings.  Are administrative hearing officers                                                               
simply instruments of executive agency policies?  Are they there as                                                             
just one more staff member to further that particular agency's                                                                  
stated and unstated, written and unwritten policies?  Or, are they                                                              
there as a middleman between the public and government who don't                                                                
have a pride of authorship in the regulations or an investment in                                                               
them?  The public wants that.  It would be refreshing for the                                                                   
public to go before a hearing officer and know that this person is                                                              
not having informal, ex parte conversations on a regular basis with                                                             
people in the agency.  He noted that the executive branch is a                                                                  
microcosm of the three branches.  It was designed that way and has                                                              
been that way for every state and the federal government for a long                                                             
time now, at least since the New Deal.  There are quasi-legislative                                                             
and quasi-judicial functions within the administrative branch.  The                                                             
question is, can the decision makers become overwhelmed with                                                                    
pressures from their own agencies to interfere with the outcome of                                                              
a particular case?  He has heard executive branch supervisors and                                                               
people express concern about the quality of hearing officers in                                                                 
other agencies.  They are concerned that the independent hearing                                                                
officers would not decide a case the way that they would want to.                                                               
If there is concern about the quality and competency of a hearing                                                               
officer, the implementing legislation can specify the standards,                                                                
review the office's budget and oversight - the traditional                                                                      
functions that the legislature performs with respect to the                                                                     
executive branch.                                                                                                               
                                                                                                                                
TAPE 99-20, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MR. HEIN continued.  He thinks that it is obvious, when creating a                                                              
central panel, that the agencies will have to live with the                                                                     
possibility that they could lose.  That's just the way it is, but                                                               
it is still within the executive branch.  He doesn't see it as a                                                                
separate branch.                                                                                                                
                                                                                                                                
Number 0035                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN referred to the testimony earlier regarding                                                                
dealing with this issue in segments, and asked Mr. Hein whether he                                                              
thought that meant it would require coming back to the constitution                                                             
on several occasions with subsequent pieces of legislation to add                                                               
various departments to the constitution.                                                                                        
                                                                                                                                
MR. HEIN replied no.  He suggested using one constitutional                                                                     
amendment to establish a centralized office thereby making a                                                                    
commitment for a centralized process.  Then, in the implementing                                                                
legislation, decide how much or how little of the agencies boards'                                                              
and commissions' work it should deal with.  He suggested initially                                                              
giving the office limited jurisdiction and as it develops expand                                                                
its jurisdiction.  He sees the resolution as setting up a permanent                                                             
framework.  The idea is not to come back to the constitution again,                                                             
but to get the big question settled.  The details can be worked out                                                             
later with as many bills as needed.                                                                                             
                                                                                                                                
Number 0142                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN said one of the concerns of getting the tax                                                                
court appeal set up was expertise.  There are states with a higher                                                              
repetition of certain things that an administrative law judge could                                                             
deal with year round.  There could be a tax appeal from an oil                                                                  
company which would be massive in importance, but small in                                                                      
frequency.  He is concerned because Alaska is small and even though                                                             
the expertise will have been established in several jurisdictions,                                                              
there will not be enough load in each to require that expertise.                                                                
                                                                                                                                
Number 0194                                                                                                                     
                                                                                                                                
MR. HEIN stated that is one of the things a central panel is                                                                    
intended to address:  the extent that hearing officers in agencies                                                              
don't have enough work.  A central panel could find other work and                                                              
keep a hearing officer busy full time.  It would also relieve the                                                               
pressure of agencies to use them for the purposes of drafting                                                                   
policies and regulations.  The resolution does not suggest that a                                                               
hearing officer would have only one area of expertise.  With a                                                                  
centralized agency there is continuing education, cross-training                                                                
and backup.  If there is a heavy case load for a period of time,                                                                
extra officers could be assigned for that period.  The problem with                                                             
an isolated hearing officer in an agency is that officer doesn't                                                                
have any professional support which is different than the                                                                       
professional problems of advocates, court judges and attorneys.  It                                                             
is a profession within its own right with unique practices and                                                                  
problems.  The judicial branch doesn't have problems of direct or                                                               
indirect pressures from bosses that administrative hearing officers                                                             
have.  In terms of expertise, he doesn't see that as a problem                                                                  
because whoever does the hiring in such an office would have the                                                                
option of hiring people from existing agencies now, as well as                                                                  
expertise in the private sector.                                                                                                
                                                                                                                                
Number 0356                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES noted that she has been working on changing                                                                
the business of appealing to the same agency that writes and                                                                    
enforces the law [regulation] for six years now.  There may be                                                                  
different people involved, but they all work for the same person -                                                              
the commissioner.  The next step for a complaint that has been                                                                  
ruled in favor of the complainant by a commissioner is the courts                                                               
without this administrative law judge.  If there is this panel of                                                               
innocent folks, a complaint could then be taken to them after going                                                             
to the commissioner.  In other words, all of the same steps that                                                                
are taken now are still there, except that a final decision for an                                                              
agency would be put in this panel prior to going to court.  In                                                                  
addition, in relation to the expertise issue, she believes that                                                                 
expertise means bias because each party would be presenting their                                                               
cases before an administrative law judge.                                                                                       
                                                                                                                                
MR. HEIN said it was accurately said last week that, "one size                                                                  
doesn't fit all."  There is quite a range of different kinds of                                                                 
boards and commissions and matters that the agencies have                                                                       
jurisdictions over, and their procedures differ somewhat.  A motor                                                              
vehicle licensing matter is different than a public utilities                                                                   
matter or workers' compensation matter.  It is a question of who an                                                             
agency, board or commission wants to make the final decision before                                                             
going to court.  It is a question of the role of the commissioner.                                                              
It is an agency-by-agency determination, and it wouldn't be the                                                                 
same for each.  An agency could make certain determinations with                                                                
something less than due process, for example, that becomes the                                                                  
agency's decision which would be appealed to an hearing officer in                                                              
a central panel or otherwise.  An agency could maintain its own                                                                 
hearing officer, for example, that would make recommendations to                                                                
the governing board or commission.  He reiterated that no state has                                                             
100 percent coverage; it's a mixture.  And, within certain states                                                               
there are different structures even for the central panels.  He                                                                 
suggested looking at the different states.                                                                                      
                                                                                                                                
MR. HEIN said, in response to the question of expertise, it varies                                                              
from agency to agency.  Some agencies require a higher level of                                                                 
technical expertise.  He cited motor vehicle matters would be less                                                              
technical than utility matters.  The level of expertise depends on                                                              
the structure of the central panel.  For example, it could be                                                                   
structured so that a hearing officer represents an agency and in a                                                              
hearing there would only be the officer and the citizen, for                                                                    
example.  In essence, it's a two-party case, but only one party is                                                              
there.  In that case, it is easy to see why an agency would start                                                               
to look at that hearing officer as its person and is suppose to                                                                 
represent the agency's point of view.  A central panel represents                                                               
a more even-sided structure where an agency could or might not be                                                               
represented.  There is expertise by virtue of training and                                                                      
experience by others providing expert testimony/documentation that                                                              
could be challenged by either side.  This suggests a two-party                                                                  
system where both sides would be represented before an impartial                                                                
hearing officer who would have some expertise and who would bring                                                               
in other expertise on a case-by-case basis.                                                                                     
                                                                                                                                
Number 0829                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT referred to Mr Hein's suggestion that there are                                                                   
hearing officers in various agencies who are not making independent                                                             
decisions and stated that is extremely alarming.  There must be a                                                               
remedy to ensure that doesn't occur.  Maybe this is the remedy, if                                                              
in fact that is true.                                                                                                           
                                                                                                                                
Number 0868                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Hein whether he would find it                                                                 
troublesome to amend the resolution to include the language, "...to                                                             
render final agency decisions or recommendations to the boards or                                                               
commissions...".  The boards and commissions are constitutionally                                                               
empowered.  It seems that giving the final decision to the                                                                      
administrative law judge would negate the powers of almost all the                                                              
boards and commissions from making final determinations.  It seems                                                              
that this would work well for an administrative law judge to make                                                               
a decision that is passed on to the board or commission to                                                                      
determine the punishment.  That is where the expertise lays; they                                                               
could decide whether revocation [of a license], for example, is                                                                 
appropriate.                                                                                                                    
                                                                                                                                
Number 0930                                                                                                                     
                                                                                                                                
MR. HEIN replied it's not necessarily a problem; it's just that the                                                             
existing legislation makes a policy choice.  The existing                                                                       
legislation starts with the premise that all the decisions of the                                                               
central panel would be final decisions.  If the legislature prefers                                                             
to build in more flexibility, it can certainly do so...                                                                         
                                                                                                                                
REPRESENTATIVE ROKEBERG interjected and stated not under this                                                                   
resolution.  The language needs to be changed to give the                                                                       
legislature the discretion to prescribe what it should be doing.                                                                
                                                                                                                                
MR. HEIN said he agrees that the existing language has a bias in                                                                
favor of [the central panel making the] final decisions.   But,                                                                 
Representative Rokeberg's suggested language leaves open who would                                                              
decide the final decision.  Obviously, that could be spelled out in                                                             
the subsequent implementation legislation.                                                                                      
                                                                                                                                
Number 1011                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said that Mr. Hein reads the language, "The                                                                
jurisdiction of the office shall be prescribed by law.", as 100                                                                 
percent, 0 percent, or anywhere in between.  He asked him whether                                                               
it could say that the jurisdiction of the office is nothing and                                                                 
keep that for 10 years.                                                                                                         
                                                                                                                                
MR. HEIN replied to put in nothing would undermine the whole                                                                    
purpose of the bill.  He doesn't know what a court would do with                                                                
that language.  It's the same as a zero fiscal note.                                                                            
                                                                                                                                
REPRESENTATIVE CROFT asked Mr. Hein whether there couldn't be a                                                                 
zero fiscal note.                                                                                                               
                                                                                                                                
MR. HEIN replied it could be done, but there probably would be                                                                  
challenges to it.  A constitutional amendment is different than                                                                 
dealing with something that is just in statute.  The current                                                                    
language does not restrict the legislature beyond what is says.  It                                                             
suggests that the office would have some jurisdiction, but it                                                                   
doesn't say how much or how little.  It arguably could be read as                                                               
having all jurisdiction.  "You're hear to make these policy                                                                     
choices, and the words can come later."                                                                                         
                                                                                                                                
Number 1181                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said if a jurisdiction is put over a very                                                                  
small amount, then it would behoove the court to say whether there                                                              
is enough to meet the jurisdiction.                                                                                             
                                                                                                                                
MR. HEIN said anything that the legislature does is subject to                                                                  
reasonableness.  He can't say what the courts would do; it depends                                                              
on the final language.  The clearer the legislation the better.  He                                                             
doesn't know how much latitude a court could give to the                                                                        
legislature.  Typically, the courts give the legislature a very                                                                 
wide latitude, particularly since there is history behind                                                                       
legislation.  He assumes that the legislature would adopt                                                                       
legislation consistent with the amendment.                                                                                      
                                                                                                                                
Number 1257                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Mr. Hein, if the resolution is passed and goes                                                              
into effect, whether he is correct in saying that if the                                                                        
legislature does nothing then nothing happens.                                                                                  
                                                                                                                                
MR. HEIN replied, "That's probably right."                                                                                      
                                                                                                                                
CHAIRMAN KOTT commented there is a shallowness in the constitution.                                                             
                                                                                                                                
MR. HEIN commented perhaps there is a constitutional impasse.                                                                   
                                                                                                                                
CHAIRMAN KOTT asked Mr. Hein whether there is merit in including a                                                              
specific date, even though a legislature can't legislate future                                                                 
legislators.  "It just seems like we could be spinning our wheels                                                               
and not getting anywhere.  And, if we can't pass legislation today                                                              
that would in effect implement something very similar, there's no                                                               
guarantee in the future.  In fact, there's probably lesser of a                                                                 
guarantee."                                                                                                                     
                                                                                                                                
MR. HEIN replied, if the legislature has the authority to stop                                                                  
time, it can probably find a way around any deadlines imposed.                                                                  
This version of the resolution has a date by which hearings would                                                               
come under the jurisdiction of a centralized office.  If the office                                                             
was not yet in existence and ready for hearings, then there might                                                               
be a bunch of parties filing suits to force the state to do                                                                     
something.  He hopes that should the public vote, particularly with                                                             
any kind of a substantial margin in favor of the amendment, that                                                                
the legislature and the Administration would get the message and be                                                             
responsive politically.                                                                                                         
                                                                                                                                
Number 1427                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT closed the meeting to public testimony.                                                                           
                                                                                                                                
Number 1441                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated he is concerned with the language,                                                               
"final agency decisions" and suggested adding the language, "...or                                                              
recommendations to boards and commissions...".  "It would change                                                                
the focus here from a final agency decision by the administrative                                                               
law which would relate--that'd be okay because it'd have to do with                                                             
the agency, but then the recommendations to the boards and                                                                      
commissions could be recommendations to leave the final power up to                                                             
the duly constituted boards and commissions which are in the                                                                    
constitution and are established by law.  That would seem to be                                                                 
consistent with the ability to prescribe by law or by--have the                                                                 
legislature pick and choose.  Because the way this is drafted now,                                                              
I don't think they could pick and choose, in my opinion.  Or, if                                                                
they can, this ain't gonna pass because the public's not going to                                                               
like it."  There is already poison in the water hole by alienating                                                              
the boards and commissions which need to be dealt with from a                                                                   
political sense.  He also thinks that there is merit to allow them                                                              
to at least have a role.  Right now, they use hearing officers to                                                               
make comments and decisions, but the board or commission actually                                                               
makes disciplinary decisions based on recommendations from the                                                                  
hearing officers.  One of the reasons that he likes the bill is                                                                 
because the attorneys from the Department of Law don't get around                                                               
to taking up some of the matters before agencies because they are                                                               
a low priority.  This bill addresses a huge need.  Nevertheless,                                                                
there needs to be some more legal words in the resolution to give                                                               
the legislature discretion to prescribe more laws.                                                                              
                                                                                                                                
Number 1561                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES noted that the bill does not say to render                                                                 
"the" or "all" final agency decisions; it just says, "to" render                                                                
final agency decisions.  The agencies determined to have authority                                                              
would be prescribed by law.  She doesn't see a problem with it.                                                                 
                                                                                                                                
Number 1624                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA commented that this piece of legislation                                                                
leads to so many unintended consequences.  It's one of the                                                                      
broadest, more unthinking pieces of legislation that she has seen                                                               
this session.  She has worked with many, many administrative                                                                    
agencies and hearing officers, and her experiences have been vastly                                                             
different than the fears expressed by Mr. Hein and others.  She                                                                 
thinks that at the kernel of the issue is a grain of truth - the                                                                
fear of unfairness.  That kernel of truth deserves some looking at                                                              
and flushing out.  Many agencies don't use the APA (Administrative                                                              
Procedure Act), for example, which might be an avenue to use to                                                                 
clean up some of this concern.  But, to take this type of                                                                       
broad-brush approach, when the legislature couldn't enact a bill                                                                
with specifics last year, is unbelievable.  The way that she reads                                                              
the language in the bill is that the office of administrative                                                                   
hearings has the power.  The court may read it that way as well.                                                                
Two lawyers who have testified who practice exclusively in this                                                                 
field are very concerned about this as well.  She called this piece                                                             
of legislation the chicken before the egg.                                                                                      
                                                                                                                                
Number 1741                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said he agrees with Representative Kerttula.                                                               
It would put all of the power into the office of administrative                                                                 
hearings.  It is something, however, that the courts will decide.                                                               
At its best, it does nothing.  At its worst, it is a substantial                                                                
judicial straightjacket.  Chairman Kott is right in that the                                                                    
legislature should start with a small, identified area that people                                                              
agree on.  In addition, it upsets a series of historical policy                                                                 
determinations, such as those relating to workers' compensation.                                                                
In that board, labor and business are relatively happy with the                                                                 
process because they helped form it.  It's a major peace treaty in                                                              
a difficult area, and this bill would blow that out of the water.                                                               
No state has 100 percent coverage, and there is a substantial risk                                                              
that this is what the bill would require.  The funding issue is an                                                              
interesting question.  If funding was cut, the state could find                                                                 
itself in a lawsuit.  He commented, "You can't do that with this                                                                
jurisdiction, any more than you could cut off all funding for the                                                               
court system." He thinks that any good idea taken too far can                                                                   
become a bad idea.  There is a kernel of a point here, and it                                                                   
should be handled incrementally.  This way is just fraud with                                                                   
danger.  It also seems odd that the legislature would force itself                                                              
to do something when it has not yet convinced itself to do                                                                      
anything.  He's not sure that the legislature should do something                                                               
that is irrevocable, when it is not sure that it wants to something                                                             
temporarily.                                                                                                                    
                                                                                                                                
Number 1967                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES reiterated that the language is just an                                                                    
authorization to do it.  She asked Representative Croft whether a                                                               
jurisdiction such as workers' compensation could be denied by law.                                                              
                                                                                                                                
REPRESENTATIVE CROFT replied it would be very different if the                                                                  
language read, "The office of administrative hearings shall have                                                                
the power to..." rather than, "The power to conduct administrative                                                              
law hearings and to render final agency decisions is vested in...".                                                             
That kind of language implies that the power isn't anyplace else.                                                               
That is the worrisome part of the language.  The second sentence,                                                               
"The jurisdiction of the office shall be prescribed by law.", tries                                                             
to take it back.  That is what a court would have to wrestle with.                                                              
That's why the language of the jurisdiction of the courts is being                                                              
looked at.  He said, "'The supreme court shall be the highest court                                                             
of the State, with final appellate jurisdiction.'  And, if we try                                                               
to take away their power, we can limit or condition or put fees or                                                              
those sorts of things, but if somebody doesn't have an appeal to                                                                
the supreme court someway, we've gone too far and the case law                                                                  
makes it clear there."                                                                                                          
                                                                                                                                
Number 2141                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG commented that the second sentence in                                                                   
Section 1(a) is desirable in that the legislature would be able to                                                              
prescribe that by law.  But, there is a conflict between the two                                                                
sentences and he's not so sure that there is a complete distinction                                                             
between them.  If this committee can't agree on the clarity of the                                                              
language, he wondered how the average voter would figure it out;                                                                
and, consequently, it would fail to get the public's support.                                                                   
                                                                                                                                
Number 2212                                                                                                                     
                                                                                                                                
REPRESENTATIVE SCOTT OGAN, Alaska State Legislature, said it seems                                                              
that a lot of the discussion is about who would have the last say.                                                              
He submits that a central panel, without a vested interest in                                                                   
covering up something, would be the best one to make the final                                                                  
decisions.  Although the boards would lose their quasi-judicial                                                                 
authority, they could certainly have hearings and make                                                                          
recommendations to the administrative law judge.  It is more                                                                    
appropriate than the other way around, otherwise there is another                                                               
layer of bureaucracy and more hoops for the public to jump through.                                                             
If this bill dies, in his opinion, the Administration will not come                                                             
to the table.  He introduced the bill this year because two years                                                               
ago he tried and the Administration ran interference every step of                                                              
the way.  "I would suggest to you, if this bill dies, then we'll                                                                
just keep on having this kind of hearing that we've got now                                                                     
and--and the public won't be well served and they won't have due                                                                
process.  I honestly believe that with every fabric of my being,                                                                
cause I've put a lot of blood, sweat and tears into working on this                                                             
two years ago, and just had hurdle after hurdle put up.  It wasn't                                                              
a linear process; it was a circular process.  We'd all--we'd jump                                                               
through these hurdles then they'd put up some more.  And, so, this                                                              
forces this issue to be resolved.  And--and--I think, if there's                                                                
problem with some of the language--you'd like to have a little bit                                                              
more legislative authority, I think that can be adjusted."                                                                      
                                                                                                                                
Number 2388                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said he supports the legislation, but has                                                               
concerns about how it would work practically.  Right now, there are                                                             
administrative hearings in the boards and commissions, and there                                                                
are administrative hearing officers within the departments that                                                                 
adjudicate grievances.  The commissioners then make the final                                                                   
determination on the punishment.  For example, the APUC (Alaska                                                                 
Public Utilities Commission) has a hearing officer, but the full                                                                
commission makes the final decision.  He is trying to make sure                                                                 
that there is flexibility, and that the legislature can by statute                                                              
give guidance.                                                                                                                  
                                                                                                                                
TAPE 99-21, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE OGAN said that the Administration, two years ago,                                                                
kept saying that it supported the concept, but it wanted to see the                                                             
legislation.  "Until then, I think, you know, you let 'em run                                                                   
interference on this one and kill this bill, then we can forget                                                                 
about anything ever being done."                                                                                                
                                                                                                                                
Number 0045                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT assigned the bill to a subcommittee consisting of                                                                 
Representative Murkowski as chair, Representatives Green and                                                                    
Kerttula.  The intent is not to bury the bill, but to deal with                                                                 
some of the issues discussed today.  He cited working on the nexus                                                              
between the first two sentences in Section 1(a), the issue of                                                                   
removing a judge for cause, and tying a date to mandate the                                                                     
legislature to act.                                                                                                             
                                                                                                                                
                                                                                                                                
HB 134 - SKI VIOLATIONS BAIL SCHEDULE                                                                                           
                                                                                                                                
CHAIRMAN KOTT announced the next order of business is HB 134, "An                                                               
Act relating to the authority of the Department of Natural                                                                      
Resources to issue citations for certain skiing violations;                                                                     
relating to establishing a bail schedule for certain skiing                                                                     
violations and to procedures for issuing a citation for a skiing                                                                
violation."                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT called on Representative Bill Hudson, sponsor of the                                                              
bill.                                                                                                                           
                                                                                                                                
Number 0203                                                                                                                     
                                                                                                                                
REPRESENTATIVE BILL HUDSON, Alaska State Legislature, stated HB 134                                                             
is simple.  It is a technical amendment to the Alaska Ski Safety                                                                
Act of 1994 which provides ski areas and skiers with equitable                                                                  
treatment on the ski slope for their own safety and the safety of                                                               
others around them.  This bill amends sections of the Act that will                                                             
improve enforcement.  It will make it available to all ski areas in                                                             
the state.  He explained, when the Alaska Ski Safety Act was                                                                    
fashioned in 1994, the drafter laid on some language that related                                                               
to the ski areas over which the state has jurisdiction when there                                                               
are a number of ski areas in which the land is owned by private                                                                 
operators.  In addition, in order to fully implement the Act, a                                                                 
bail schedule needs to be established which was not included in the                                                             
original bill in 1994.  The courts have indicated that they need                                                                
specific language in the law in order to permit them to establish                                                               
a bail schedule.  Section 2 gives them that ability.  A bail                                                                    
schedule is absolutely essential to enforce the Act.  He reiterated                                                             
HB 134 is technical; it doesn't expand any of the language in the                                                               
original Act; it doesn't expand any police powers on the ski                                                                    
slopes; it simply provides a technical change for the courts to                                                                 
establish a bail schedule.                                                                                                      
                                                                                                                                
Number 0426                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Representative Hudson whether this will cite                                                                
the seven year olds on the slopes.                                                                                              
                                                                                                                                
REPRESENTATIVE HUDSON replied no.  This is trying to save their                                                                 
lives by keeping the big guys from not following the rules.  This                                                               
keeps skiers out of areas that might generate a landslide forcing                                                               
the ski patrol to rescue them from areas that are secured.  A skier                                                             
can still get off the trail if that skier wants to.                                                                             
                                                                                                                                
Number 0491                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked Representative Hudson whether there are signs                                                               
posted to warn skiers of the issuance of citations.                                                                             
                                                                                                                                
REPRESENTATIVE HUDSON deferred the question to the experts.                                                                     
                                                                                                                                
Number 0558                                                                                                                     
                                                                                                                                
LARRY DANIELS, General Manager, Alyeska Resort, testified via                                                                   
teleconference from Anchorage in support of HB 134.  The 1994 ski                                                               
safety Act is very broad.  It identifies numerous responsibilities                                                              
of the ski areas, the state, and individual skiers.  It                                                                         
contemplates the issuance of citations for skiers who violates                                                                  
specific sections of the Act, but as the supreme court correctly                                                                
noted, it does not mention a bail schedule.  The Act is also                                                                    
ambiguous concerning ski areas not on state lands.  House Bill 134                                                              
corrects those deficiencies and provides ski area operators a tool                                                              
to encourage appropriate behavior.  Currently, ski area operators                                                               
have authority to issue a $50 citation, and thus far no citations                                                               
have been issued.  Therefore, any concerns of a large number of                                                                 
citations being issued are not realistic.  Citations have been                                                                  
issued in years past, but at the current level there isn't a                                                                    
deterrent to significantly discourage skiers from going back and                                                                
performing the same act.  In regards to signs, the Act requires a                                                               
notice at every lift, but because it is so wordy, a skier has to                                                                
seek out specific issues from the Act itself.                                                                                   
                                                                                                                                
Number 0711                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Daniels whether there is the                                                                 
ability to pull a ticket, besides issuing a citation, or is it an                                                               
either-or deal.                                                                                                                 
                                                                                                                                
MR. DANIEL replied ski operators have the right and do revoke                                                                   
skiing privileges.  However, more often than not, a violation                                                                   
occurs late in the afternoon and taking away a ticket with the                                                                  
balance of an hour or so doesn't provide that much of a deterrent.                                                              
                                                                                                                                
Number 0841                                                                                                                     
                                                                                                                                
GARY MENDIVIL, Vice President, Alaska Ski Areas Association,                                                                    
testified in Juneau in support of HB 134.  He is also the business                                                              
manager for the Eaglecrest Ski Area.  He noted that there are over                                                              
14 ski areas in the state.  Some are operated by non-profits; some                                                              
are operated by city governments; some are privately operated; and,                                                             
some are operated by the military.  When the Act was passed in                                                                  
1994, it contained language allowing for a bail schedule for                                                                    
citations on a specific list of infractions.  But, the court system                                                             
declined to create a bail schedule because there was no clear                                                                   
authorization in statute.  The purpose of HB 134 is to correct that                                                             
oversight.  Although these citations may be considered the                                                                      
equivalent of a parking ticket, they will not be issued as                                                                      
frequently.  Each individual ski area has policies and disciplinary                                                             
procedures in place for dealing with many of these offenses.                                                                    
Unfortunately, there are chronic and intentional offenders that do                                                              
not comply with the discipline requiring appropriate legal action.                                                              
The proposed bail schedule will allow ski areas to deal more                                                                    
effectively with those persons.                                                                                                 
                                                                                                                                
Number 0945                                                                                                                     
                                                                                                                                
PAUL SWANSON, Manager, Eaglecrest Ski Area, testified in Juneau in                                                              
support of HB 134.  He concurs with everything that Mr. Daniels                                                                 
said.  The Act was intended to set a bail schedule for certain                                                                  
violations.  The bill will not prohibit skiers from going outside                                                               
ski area boundaries.  It says that skiers cannot go into closed                                                                 
areas.  Eaglecrest does not recommend that skiers go outside the                                                                
boundaries because there is no avalanche control or first aide work                                                             
done outside them.  But, people are able to go out there on their                                                               
own.  The problem at Eaglecrest is that people go into areas that                                                               
are roped for avalanche control, and once they go into those areas,                                                             
Eaglecrest has to stop its control work and chase them out.                                                                     
Currently, the policy at Eaglecrest is to restrict ski privileges                                                               
for two weeks if a person is caught within an area.  But, if that                                                               
person has a day pass, there isn't much that can be done.  He feels                                                             
that people come to Eaglecrest to have fun and this bill helps to                                                               
ensure that.                                                                                                                    
                                                                                                                                
Number 1149                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA stated a concern she has heard is that this                                                             
approach is more disciplinarian than educational.  According to                                                                 
statute, it is the responsibility of the ski operator to make                                                                   
available at reasonable fees instruction and education on the                                                                   
dangers and risks of skiing.  She asked Mr. Swanson to put on the                                                               
record the efforts that Eaglecrest has made towards that.                                                                       
                                                                                                                                
Number 1192                                                                                                                     
                                                                                                                                
MR. SWANSON replied Eaglecrest presently has signs and runs a                                                                   
video.  The ski patrol does a very good job at addressing and                                                                   
marking hazards, and dealing with the public.                                                                                   
                                                                                                                                
Number 1220                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Swanson whether the ski                                                                       
instructors also make a big point of teaching safety.                                                                           
                                                                                                                                
MR. SWANSON replied yes.  It is part of the curriculum.                                                                         
                                                                                                                                
Number 1250                                                                                                                     
                                                                                                                                
RUPE ANDREW testified in Juneau in support of the intent of HB 134.                                                             
There are problems in the way the bill is written.  It may cause                                                                
problems that aren't seen right now.  For example, he wants to know                                                             
whether it applies to Nordic skiers.  They ski most of the time                                                                 
outside of regulated areas.  They are all over the countryside.  In                                                             
addition, the bill indicates that the commissioner of DNR                                                                       
(Department of Natural Resources) and/or the ski operator will                                                                  
designate people to enforce it.  What happens if a person refuses                                                               
to sign a citation? he asked.  Enforcement will not be without                                                                  
cost, if a citation is challenged.  Who will provide for lost wages                                                             
and time in court? he asked.  In addition, AS 11.81.900 defines the                                                             
term "recklessly" which leaves a lot of personal interpretation by                                                              
the person charged with enforcement.  A defendant has the burden of                                                             
preponderance [of evidence] in proving his/her innocence.                                                                       
                                                                                                                                
Number 1383                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI commented she read somewhere that a person                                                             
doesn't have to sign a copy of a citation.                                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA noted that was changed in Section 3 of the                                                              
bill, precisely for the reasons that Mr. Andrews cited.                                                                         
                                                                                                                                
MR. ANDREWS asked whether the person charged with enforcement will                                                              
have the authority to arrest a person for refusing to sign a                                                                    
citation.  There will be a "preponderance" of juveniles in these                                                                
cases, and fines of $75 to $100 will be tough for them.                                                                         
                                                                                                                                
Number 1458                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT noted that Nordic skiers are included.                                                                            
                                                                                                                                
REPRESENTATIVE KERTTULA replied that Nordic skiers are not                                                                      
included.  Cross-country ski trails are not included in the                                                                     
definition of ski area.  There could be a Nordic skier on a                                                                     
downhill slope, however.                                                                                                        
                                                                                                                                
Number 1481                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT referred to AS 05.45.200 and the definition of                                                             
the term "ski area."  He said it really isn't going to prohibit                                                                 
back-country skiing.  It has to be under the control of a downhill                                                              
ski area.  If they have no power to open it, they have no power to                                                              
close it.                                                                                                                       
                                                                                                                                
Number 1505                                                                                                                     
                                                                                                                                
MR. ANDREWS referred to AS 11.81.900 and the definition of the term                                                             
"recklessly."  He interprets it as "going beyond area boundaries."                                                              
The boundaries are clearly marked, and if a skier goes beyond them,                                                             
it's that skier's responsibility financially if something happens.                                                              
                                                                                                                                
Number 1539                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA noted the intention of HB 134 is to enact                                                               
the bail schedule in AS 05.45.100.  The list is pretty exclusive                                                                
and includes skiing on a slope or trail that has been posted as                                                                 
"closed."  It doesn't cover out-of-bound skiing, however.  The list                                                             
has been in statute since 1994, but the supreme court has not had                                                               
specific language to enact a bail schedule.                                                                                     
                                                                                                                                
MR. ANDREWS explained he was looking at AS 05.45.100(c)(5),                                                                     
"knowingly enter upon public or private land from an adjoining ski                                                              
area when the land has been closed by an owner and is posted by the                                                             
owner or by the ski area operator under AS 05.45.060(e)(3)."  To                                                                
him, that means "skiing out of bounds."  He supports Mr. Swanson's                                                              
testimony that when an area is posted as "closed" it should jolly                                                               
well be closed.  "If you're gonna go off a cliff, I'd like to see                                                               
a 'closed' sign there."  He would like to see specific language for                                                             
better legislation and safety.                                                                                                  
                                                                                                                                
CHAIRMAN KOTT noted that the definition refers to land that is                                                                  
closed and posted "closed."  He thinks that covers Mr. Andrews'                                                                 
concern.                                                                                                                        
                                                                                                                                
Number 1662                                                                                                                     
                                                                                                                                
GARY CUSCIA, President, Eaglecrest Ski Area Board of Directors,                                                                 
testified in Juneau in support of HB 134.  We are talking about an                                                              
area that is closed within a ski area boundary.  Imagine that you                                                               
are a member of a ski patrol and your job is to go into an area,                                                                
that is presently closed, to do avalanche control work and a few                                                                
skiers or snowboarders sneak in, you are put in harm's way.  Those                                                              
skiers are in a place that they shouldn't be, and you have to get                                                               
them out.  That is the board's primary concern.                                                                                 
                                                                                                                                
Number 1730                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT closed the meeting to public testimony.                                                                           
                                                                                                                                
Number 1736                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA made a motion to move HB 134 from the                                                                   
committee with individual recommendations and the attached fiscal                                                               
note(s).  There being no objection, HB 134 was so moved from the                                                                
House Judiciary Standing Committee.                                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 1782                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT adjourned the House Judiciary Standing Committee                                                                  
meeting at 3:15 p.m.                                                                                                            

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