Legislature(1999 - 2000)

03/29/2000 01:20 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, 2000                                                                                               
                     1:20 p.m.                                                                                                  
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Joe Green                                                                                                        
Representative Norman Rokeberg                                                                                                  
Representative Lisa Murkowski                                                                                                   
Representative Eric Croft                                                                                                       
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Representative Pete Kott, Chairman                                                                                              
Representative Jeannette James                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 398                                                                                                              
"An Act relating to the Alaska Life and Health Insurance Guaranty                                                               
Association."                                                                                                                   
                                                                                                                                
     - MOVED CSHB 398(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 369                                                                                                              
"An Act relating to property exemptions under the Alaska Exemptions                                                             
Act; and providing for an effective date."                                                                                      
                                                                                                                                
     - MOVED CSHB 369(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 392                                                                                                              
"An Act relating to continuances for temporary placement hearings                                                               
that follow emergency custody of a minor; and amending Rule 10,                                                                 
Alaska Child in Need of Aid Rules."                                                                                             
                                                                                                                                
     - MOVED CSHB 392(HES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 292                                                                                                              
"An Act adopting the National Crime Prevention and Privacy Compact;                                                             
making criminal justice information available to interested persons                                                             
and criminal history record information available to the public;                                                                
making certain conforming amendments; and providing for an                                                                      
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 292(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 294                                                                                                              
"An Act relating to violations of an order to submit to                                                                         
deoxyribonucleic acid (DNA) testing, to court orders and conditions                                                             
of parole to collect samples for DNA testing, to removal of                                                                     
material from the DNA identification registration system; and to                                                                
the collection and processing of samples from certain burglary                                                                  
perpetrators for the DNA identification registration system; and                                                                
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 398                                                                                                                    
SHORT TITLE: LIFE AND HEALTH INSURANCE GUARANTY ASSN                                                                            
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2218     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2218     (H)  L&C, JUD                                                                                            
 3/03/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/03/00               (H)  Moved CSHB 398(L&C) Out of Committee                                                                
 3/03/00               (H)  MINUTE(L&C)                                                                                         
 3/06/00      2420     (H)  L&C RPT CS(L&C) 3DP 2NR                                                                             
 3/06/00      2420     (H)  DP: HARRIS, CISSNA, ROKEBERG;                                                                       
 3/06/00      2420     (H)  NR: HALCRO, MURKOWSKI                                                                               
 3/06/00      2420     (H)  ZERO FISCAL NOTE (DCED)                                                                             
 3/17/00      2598     (H)  CORRECTED L&C CS                                                                                    
 3/22/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 3/22/00               (H)  HEARD & HELD                                                                                        
 3/22/00               (H)  MINUTE(JUD)                                                                                         
 3/29/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 369                                                                                                                    
SHORT TITLE: PROPERTY EXEMPTIONS                                                                                                
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/11/00      2183     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/11/00      2184     (H)  L&C, JUD                                                                                            
 3/01/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
 3/01/00               (H)  Moved Out of Committee                                                                              
 3/01/00               (H)  MINUTE(L&C)                                                                                         
 3/03/00      2389     (H)  L&C RPT 2DP 2NR                                                                                     
 3/03/00      2389     (H)  DP: HARRIS, ROKEBERG; NR: MURKOWSKI,                                                                
 3/03/00      2389     (H)  HALCRO                                                                                              
 3/03/00      2389     (H)  ZERO FISCAL NOTE (LAW)                                                                              
 3/22/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 3/22/00               (H)  Heard & Held                                                                                        
 3/22/00               (H)  MINUTE(JUD)                                                                                         
 3/29/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 392                                                                                                                    
SHORT TITLE: CONTINUANCES OF CINA HEARINGS                                                                                      
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2216     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2216     (H)  HES, JUD                                                                                            
 2/29/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 2/29/00               (H)  Moved CSHB 392(HES) Out of Committee                                                                
 2/29/00               (H)  MINUTE(HES)                                                                                         
 3/01/00      2376     (H)  COSPONSOR(S): DYSON                                                                                 
 3/03/00      2392     (H)  HES RPT CS(HES) NT 4DP 1NR                                                                          
 3/03/00      2392     (H)  DP: DYSON, COGHILL, WHITAKER,                                                                       
                            KEMPLEN;                                                                                            
 3/03/00      2392     (H)  NR: BRICE                                                                                           
 3/03/00      2392     (H)  2 ZERO FISCAL NOTES (LAW, DHSS)                                                                     
 3/29/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 292                                                                                                                    
SHORT TITLE: DISCLOSURE OF CRIMINAL HISTORY RECORDS                                                                             
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/21/00      1954     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/21/00      1954     (H)  STA, JUD                                                                                            
 1/21/00      1955     (H)  ZERO FISCAL NOTE (DPS)                                                                              
 1/21/00      1955     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 2/22/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 2/22/00               (H)  Scheduled But Not Heard                                                                             
 2/29/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 2/29/00               (H)  Scheduled But Not Heard                                                                             
 3/02/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/02/00               (H)  Scheduled But Not Heard                                                                             
 3/07/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/07/00               (H)  Heard & Held                                                                                        
 3/07/00               (H)  MINUTE(STA)                                                                                         
 3/09/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/09/00               (H)  Heard & Held                                                                                        
 3/09/00               (H)  MINUTE(STA)                                                                                         
 3/16/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 3/16/00               (H)  Moved Out of Committee                                                                              
 3/16/00               (H)  MINUTE(STA)                                                                                         
 3/16/00      2566     (H)  STA RPT 1DP 4NR                                                                                     
 3/16/00      2566     (H)  DP: JAMES; NR: SMALLEY, KERTTULA,                                                                   
 3/16/00      2566     (H)  HUDSON, WHITAKER                                                                                    
 3/16/00      2566     (H)  ZERO FISCAL NOTE (DPS) 1/21/00                                                                      
 3/16/00      2566     (H)  REFERRED TO JUDICIARY                                                                               
 3/29/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 294                                                                                                                    
SHORT TITLE: DNA TESTING & REGISTRATION                                                                                         
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/21/00      1958     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/21/00      1958     (H)  JUD, FIN                                                                                            
 1/21/00      1958     (H)  INDETERMINATE FISCAL NOTE (ADM)                                                                     
 1/21/00      1958     (H)  ZERO FISCAL NOTE (DPS)                                                                              
 1/21/00      1958     (H)  GOVERNOR'S TRANSMITTAL LETTER                                                                       
 1/21/00      1958     (H)  REFERRED TO JUDICIARY                                                                               
 3/29/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JOHN MANLY, Staff                                                                                                               
   to Representative John Harris                                                                                                
Alaska State Legislature                                                                                                        
Capitol Building, Room 110                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented HB 398 and HB 369 on behalf of the                                                               
sponsor.                                                                                                                        
                                                                                                                                
JOHN GEORGE, Lobbyist for                                                                                                       
   American Council of Life Insurers                                                                                            
3328 Fritz Cove Road                                                                                                            
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified on HB 398.                                                                                       
                                                                                                                                
ROBERT SWEENEY, Representative                                                                                                  
American Council of Life Insurers                                                                                               
(Address not provided)                                                                                                          
Washington, D.C.                                                                                                                
POSITION STATEMENT:  Testified on HB 398.                                                                                       
                                                                                                                                
STAN RIDGEWAY, Deputy Director                                                                                                  
Division of Insurance                                                                                                           
Department of Community & Economic Development                                                                                  
P.O. Box 110805                                                                                                                 
Juneau, Alaska 99811-0805                                                                                                       
POSITION STATEMENT:  Testified on HB 398.                                                                                       
                                                                                                                                
CHRIS MILLER, Research & Analysis                                                                                               
Central Office                                                                                                                  
Division of Administrative Services                                                                                             
Department of Labor & Workforce Development                                                                                     
P.O. Box 21149                                                                                                                  
Juneau, Alaska 99802-1149                                                                                                       
POSITION STATEMENT:  Testified on HB 369.                                                                                       
                                                                                                                                
REPRESENTATIVE JIM WHITAKER                                                                                                     
Alaska State Legislature                                                                                                        
Capitol Building, Room 13                                                                                                       
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Sponsor of HB 392.                                                                                         
                                                                                                                                
BLAIR McCUNE, Deputy Director                                                                                                   
Central Office                                                                                                                  
Public Defender Agency                                                                                                          
Department of Administration                                                                                                    
900 West 5th Avenue, Suite 200                                                                                                  
Anchorage, Alaska 99501-2090                                                                                                    
POSITION STATEMENT:  Testified on HB 392.                                                                                       
                                                                                                                                
KENNETH E. BISCHOFF, Director                                                                                                   
Central Office                                                                                                                  
Division of Administrative Services                                                                                             
Department of Public Safety                                                                                                     
P.O. Box 111200                                                                                                                 
Juneau, Alaska 99811-1200                                                                                                       
POSITION STATEMENT:  Presented HB 292.                                                                                          
                                                                                                                                
GLADYS LANGDON, Children Services Manager                                                                                       
Anchorage Region                                                                                                                
Family Services                                                                                                                 
Division of Family & Youth Services                                                                                             
Department of Health & Social Services                                                                                          
550 West 8th Avenue, Suite 304                                                                                                  
Anchorage, Alaska 99501-3553                                                                                                    
POSITION STATEMENT:  Testified on HB 292.                                                                                       
                                                                                                                                
LINDA KESTERSON, Assistant Attorney General                                                                                     
Natural Resources Section                                                                                                       
Civil Division                                                                                                                  
Department of Law                                                                                                               
1031 West 4th Avenue, Suite 200                                                                                                 
Anchorage, Alaska 99501                                                                                                         
POSITION STATEMENT:  Testified on HB 292 in relation to the                                                                     
amendment to include the Alcoholic Beverage Control Board.                                                                      
                                                                                                                                
DOUG GRIFFIN, Director                                                                                                          
Alcoholic Beverage Control Board                                                                                                
550 West 7th Avenue, Suite 540                                                                                                  
Anchorage, Alaska 99501                                                                                                         
POSITION STATEMENT: Testified on HB 292 in relation to the                                                                      
amendment to include the Alcoholic Beverage Control Board.                                                                      
                                                                                                                                
DEL SMITH, Deputy Commissioner                                                                                                  
Office of the Commissioner                                                                                                      
Department of Public Safety                                                                                                     
P.O. Box 111200                                                                                                                 
Juneau, Alaska 99811-1200                                                                                                       
POSITION STATEMENT:  Presented HB 294.                                                                                          
                                                                                                                                
LEANE STRICKLAND, Supervisor                                                                                                    
Scientific Crime Detection Laboratory                                                                                           
Department of Public Safety                                                                                                     
5500 East Tudor Road                                                                                                            
Anchorage, Alaska 99507-1221                                                                                                    
POSITION STATEMENT:  Testified on HB 294.                                                                                       
                                                                                                                                
JOHN McKINNON, Officer                                                                                                          
Anchorage Police Department                                                                                                     
4501 South Bragaw Street                                                                                                        
Anchorage, Alaska 99507                                                                                                         
POSITION STATEMENT:  Testified on HB 294.                                                                                       
                                                                                                                                
JENNIFER RUDINGER, Executive Director                                                                                           
Alaska Civil Liberties Union                                                                                                    
P.O. Box 201844                                                                                                                 
Anchorage, Alaska 99520-1844                                                                                                    
POSITION STATEMENT:  Testified in opposition to HB 294.                                                                         
                                                                                                                                
ROBERT BUTTCANE, Juvenile Probation Officer                                                                                     
Youth Corrections                                                                                                               
Division of Family and Youth Services                                                                                           
Department of Health & Social Services                                                                                          
P.O. Box 110630                                                                                                                 
Juneau, Alaska  99811                                                                                                           
POSITION STATEMENT:  Testified in support of HB 294.                                                                            
                                                                                                                                
CANDACE BROWER, Parole Board Officer                                                                                            
Parole Board                                                                                                                    
Division of Community Corrections                                                                                               
Department of Corrections                                                                                                       
P.O. Box 112000                                                                                                                 
Juneau, Alaska 99811-2000                                                                                                       
POSITION STATEMENT:  Testified on HB 294.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-41, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOE GREEN called the House Judiciary Standing                                                                    
Committee meeting to order at 1:20 p.m.  Members present at the                                                                 
call to order were Representatives Green, Rokeberg, Murkowski,                                                                  
Croft and Kerttula.  No further members arrived after the meeting                                                               
was called to order.                                                                                                            
                                                                                                                                
HB 398 - LIFE AND HEALTH INSURANCE GUARANTY ASSN                                                                                
                                                                                                                                
REPRESENTATIVE GREEN announced the first order of business would be                                                             
HOUSE BILL NO. 398, "An Act relating to the Alaska Life and Health                                                              
Insurance Guaranty Association."                                                                                                
                                                                                                                                
Number 0068                                                                                                                     
                                                                                                                                
JOHN MANLY, Staff to Representative John Harris, Alaska State                                                                   
Legislature, presented the bill on behalf of the sponsor.  At the                                                               
last committee hearing, testimony had indicated that there was                                                                  
confusion on what the bill does, he noted.  Mr. Manly referred to                                                               
a handout titled "Summary of Principal Changes to the NAIC Life and                                                             
Health Insurance Guaranty Association Model Act" and indicated it                                                               
should help explain what the bill does.  He turned to Mr. John                                                                  
George to help explain the bill further.                                                                                        
                                                                                                                                
Number 0150                                                                                                                     
                                                                                                                                
JOHN GEORGE, Lobbyist for American Council of Life Insurers, came                                                               
before the committee to testify.  He had spoken on the bill last                                                                
week, he said, and instead of repeating himself he would prefer                                                                 
that the committee hear from an expert, Mr. Robert Sweeney.  He                                                                 
noted that there was a proposed amendment, which is very important                                                              
for technical reasons.  He explained that there was a                                                                           
misinterpretation of the bill drafter going from NAIC [National                                                                 
Association of Insurance Commissioners] model language to Alaska                                                                
statute language.  He said Robert Sweeney had worked hard with NAIC                                                             
in coming up with the model Act, and had worked hard with the bill                                                              
sponsor in coming up with the bill.                                                                                             
                                                                                                                                
Number 0271                                                                                                                     
                                                                                                                                
ROBERT SWEENEY, Representative, American Council of Life Insurers,                                                              
testified via teleconference from an off-net site in Washington,                                                                
D.C.  He referred committee members to the handout referenced                                                                   
above, which explains the concepts set forth in a series of                                                                     
amendments to the NAIC Life and Health Insurance Guaranty                                                                       
Association Model Act, he said, an Act that is very technical and                                                               
somewhat arcane.                                                                                                                
                                                                                                                                
MR. SWEENEY noted the following changes to the Act:  it facilitated                                                             
the implementation of guaranty association benefits more promptly                                                               
and efficiently, thereby providing benefits to policyholders more                                                               
expeditiously and at a lower cost; it clarified a number of                                                                     
provisions which could foster delay by promoting litigation; and it                                                             
provided additional benefits to policyholders.  Mr. Sweeney said                                                                
that a further amendment clarified the appropriate coverage limits                                                              
on equity indexed products, which he indicated is a relatively new                                                              
innovation in the insurance marketplace.                                                                                        
                                                                                                                                
Number 0384                                                                                                                     
                                                                                                                                
REPRESENTATIVE ERIC CROFT asked Mr. Sweeney whether the amendment                                                               
clarifies a number of provisions that could foster delay by                                                                     
promoting litigation or clarifies a number of provisions which, if                                                              
not fixed, could foster delay by promoting litigation.                                                                          
                                                                                                                                
MR. SWEENEY replied that the amendment clarifies a number of                                                                    
provisions that would eliminate frivolous and costly litigation in                                                              
many areas.                                                                                                                     
                                                                                                                                
Number 0428                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked Mr. Sweeney to indicate a few of the                                                                 
policy calls in the bill that might be controversial.  He conveyed                                                              
his understanding that most of what is in the bill is for technical                                                             
and updating purposes.                                                                                                          
                                                                                                                                
MR. SWEENEY replied he wouldn't say that anything in the bill is                                                                
controversial.  There are issues in this area that are                                                                          
controversial, but due to some unique Alaska code provisions the                                                                
amendment does not ask Alaska to adopt certain provisions.  For                                                                 
example, Alaska does not have a tax offset for assessments paid                                                                 
into the guaranty association.  There are some substantive issues                                                               
in the bill.  The amendment shifts the responsible guaranty                                                                     
association for structured settlement annuities - which are given                                                               
in a payout after a civil litigation - from the state of residence                                                              
of the owner to the state of residence of the payee, in order to                                                                
evenly spread the amounts paid by different state guaranty                                                                      
associations.  That same shift would apply to unallocated annuity                                                               
contracts, which are covered under the Alaska guaranty association                                                              
statute.  The amendments also give the Alaska State Life and Health                                                             
Insurance Guaranty Association the authority to play an active role                                                             
in determining how assets are distributed in insolvency, which is                                                               
entirely appropriate given the fact that they are often the largest                                                             
creditor involved.  The amendments also allow for the state                                                                     
guaranty association to propound a solvency plan.                                                                               
                                                                                                                                
Number 0645                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked Mr. Sweeney whether he is right in                                                                   
saying that the main challenge to the life and health guaranty                                                                  
association is the transfer to another person, while in comparison                                                              
the main challenge to property is to "wrap it up."                                                                              
                                                                                                                                
MR. SWEENEY replied that is a fair characterization.  The primary                                                               
distinction between the property and casualty fund, and the life                                                                
and health guaranty association is the movement of a block of                                                                   
business to a solvent carrier in order to continue payments to                                                                  
beneficiaries and annuitants.                                                                                                   
                                                                                                                                
Number 0707                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG noted that there was testimony in the House                                                             
Labor and Commerce Committee indicating some contention about the                                                               
use of the word "intervene" on page 13, line 20, of CSHB 398(L&C).                                                              
He asked Mr. George to discuss the process he went about in dealing                                                             
with the director of the Division of Insurance [Department of                                                                   
Community & Economic Development] to implement this bill.  He said                                                              
it is important that the committee members understand that the bill                                                             
has been fully reviewed by the director and that the process was a                                                              
mutual and balanced effort.                                                                                                     
                                                                                                                                
Number 0800                                                                                                                     
                                                                                                                                
MR. GEORGE replied that the NAIC model Act is a product of the                                                                  
National Association of Insurance Commissioners, and has been                                                                   
worked on continually and consistently by all of the states and                                                                 
industry members, for years, in order to come up with a plan that                                                               
will work generically in all states.  It is up to the director or                                                               
commissioner of each state to get the model Act adopted.  In                                                                    
Alaska, there were 21 points of discussion with the Division of                                                                 
Insurance in relation to the NAIC model Act.  Of those, 20 points                                                               
were worked out to where there is complete agreement.  He said:                                                                 
                                                                                                                                
     [There was] one thing that we agreed not to agree on, and                                                                  
     that was when going to court, the bill that was proposed                                                                   
     said that the guaranty association could appear in those                                                                   
     proceedings.  We wanted to add the word, "appear or                                                                        
     intervene," or "and intervene."  That was the amendment                                                                    
     in Labor and Commerce, ... to add "intervene" in a couple                                                                  
     of places.  Other than the word "to intervene," I believe                                                                  
     we have 100 percent agreement with the Division of                                                                         
     Insurance on the wording in this bill, and it's not                                                                        
     because we started out that way; it's because we worked                                                                    
     diligently, and I do give a lot of credit to the Division                                                                  
     of Insurance and also the ACLI [American Council of Life                                                                   
     Insurers] staff for coming together and coming up with                                                                     
     those agreements.  The last thing I wanted to do is bring                                                                  
     a bill in here with 21 talking points with the Division                                                                    
     of Insurance and have those discussions in this                                                                            
     committee.                                                                                                                 
                                                                                                                                
Number 0920                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Sweeney whether the amounts                                                                   
covered by the guaranty association have been revised in the bill                                                               
in any particular area.                                                                                                         
                                                                                                                                
MR. SWEENEY replied there were no changes made to the amounts.  It                                                              
was determined by the NAIC that it was not necessary at this time.                                                              
He noted that there were some increases to the amounts several                                                                  
years ago in the last round of amendments.                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Sweeney whether he was part of                                                                
the negotiating team for Alaska.                                                                                                
                                                                                                                                
MR. SWEENEY replied, "Yes."                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Sweeney to describe any changes                                                               
made from the NAIC model Act to accommodate the director of the                                                                 
Division of Insurance.                                                                                                          
                                                                                                                                
MR. SWEENEY explained that there were several instances when he was                                                             
able to talk to the director and agree to a few points that the                                                                 
division felt were very important.  He doesn't have the most recent                                                             
version of the bill before him, he noted, so he cannot speak                                                                    
further to any other changes.  He deferred to Mr. George.                                                                       
                                                                                                                                
MR. GEORGE said he isn't sure that he could point out the changes.                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG withdrew his question.  He said he'd wanted                                                             
to make the point that there was active bargaining with the                                                                     
director of the Division of Insurance because he has to implement                                                               
a substantial part of what is in the bill.                                                                                      
                                                                                                                                
Number 1064                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said:                                                                                                   
                                                                                                                                
     This may be a question for Mr. Ridgeway [Deputy Director,                                                                  
     Division of Insurance, Department of Community & Economic                                                                  
     Development], but in looking at the legislation it looks                                                                   
     like there's a number of exemptions to ... the coverage.                                                                   
     And, I'm looking at page 4 of the bill, and so, again, it                                                                  
     may be better to Mr. Ridgeway.  But it looks like if a                                                                     
     person who normally would be covered has any coverage by                                                                   
     an association of another state, they're exempted from                                                                     
     coverage here, and I just wondered why it's any coverage                                                                   
     and it's not drafted to be the part of the coverage that                                                                   
     is provided by the other association. ... I just wondered                                                                  
     if there might be circumstances where another association                                                                  
     gave half the coverage but not all the coverage.                                                                           
                                                                                                                                
Number 1114                                                                                                                     
                                                                                                                                
MR. SWEENEY replied that the provision is inserted purely to avoid                                                              
instances of duplicate coverage, in order to defray the Alaska Life                                                             
and Health Guaranty Association of potentially paying a covered                                                                 
individual or entity when another state is already covering that                                                                
individual or entity.                                                                                                           
                                                                                                                                
Number 1162                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said she can understand that.  She                                                                      
specified that she was troubled by the word "any."  There seems to                                                              
be a distinction between those who receive partial coverage, she                                                                
said.  The language reads, "that part of an unallocated annuity                                                                 
contract that is not issued ...."                                                                                               
                                                                                                                                
MR. SWEENEY replied that the word "any" is not intended to be                                                                   
misleading; it is meant to get at the very situation he had                                                                     
described earlier.  It is not meant to [imply] that a person would                                                              
not receive coverage in one state.                                                                                              
                                                                                                                                
Number 1216                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Sweeney whether the removal of                                                                
the word "any" would damage the bill.  She suggested the word                                                                   
"complete" instead.                                                                                                             
                                                                                                                                
REPRESENTATIVE GREEN responded:                                                                                                 
                                                                                                                                
     I would have a bit of a problem with that because if,                                                                      
     then, you say "coverage," then you add one of ten pieces                                                                   
     covered.  Would that suffice under here, as opposed to,                                                                    
     say, 30 percent or ...? ...I think that's what I'm                                                                         
     reading "any" to mean, but that may not be in fact what                                                                    
     it is.                                                                                                                     
                                                                                                                                
MR. SWEENEY said he thinks that Representative Green is correct.                                                                
                                                                                                                                
Number 1272                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Representative Green whether he likes                                                             
the word "any" better than the word "complete."                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN replied that he isn't sure.  He just doesn't                                                               
want to remove the word "any."                                                                                                  
                                                                                                                                
Number 1338                                                                                                                     
                                                                                                                                
STAN RIDGEWAY, Deputy Director, Division of Insurance, Department                                                               
of Community & Economic Development, came before the committee to                                                               
testify.  As Mr. George has indicated, there were 21 points of                                                                  
discussion and 20 points were agreed on.  The division supports the                                                             
bill.  In response to Representative Kerttula's question, he said                                                               
he doesn't have an answer; he would do some research and get back                                                               
to her.  It is his understanding, however, that the language was                                                                
taken directly from the NAIC model Act.  He thinks that there is a                                                              
reason for the word "any" instead of the word "complete."                                                                       
                                                                                                                                
Number 1375                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that there are different types of                                                                
coverage, and the word "any" is appropriate.  He doesn't have a                                                                 
problem with it.                                                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Ridgeway whether he is aware of                                                               
the proposed amendment in relation to the determination of the                                                                  
principal place of business.                                                                                                    
                                                                                                                                
MR. RIDGEWAY affirmed that.                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Ridgeway whether the Department                                                               
of Community & Economic Development has a problem with the proposed                                                             
amendment.                                                                                                                      
                                                                                                                                
MR. RIDGEWAY replied, "No."                                                                                                     
                                                                                                                                
Number 1410                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN, noting that there were no further testifiers,                                                             
closed the hearing to public testimony.                                                                                         
                                                                                                                                
Number 1415                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to adopt Amendment 1, version                                                             
1-LS1376\I.2, Ford, 3/22/00.  There being no objection, Amendment                                                               
1 was adopted.  It read as follows:                                                                                             
                                                                                                                                
     Page 3, line 9, following "chapter":                                                                                       
                                                                                                                                
          Insert ", whichever occurs first"                                                                                     
                                                                                                                                
     Page 27, line 20, through page 28, line 12:                                                                                
          Delete all material and insert:                                                                                       
          "Sec. 21.79.170.  Determination of principal place of                                                                 
     business.  The principal place of business of a plan sponsor                                                               
     consisting of                                                                                                              
          (1) a single employer or an employee organization is that                                                             
     state in which the plan sponsor exercises the direction,                                                                   
     control, and coordination of the operations of the entity, as                                                              
     determined by the association in its reasonable judgment by                                                                
     considering the following factors:  (A) the state in which the                                                             
     primary executive and administrative headquarters of the    entity                                                         
     are located; (B) the state in which the principal office of                                                                
     the chief executive officer of the entity is located; (C) the                                                              
     state in which the board of directors or a similar governing                                                               
     body of the entity conducts the majority of its meetings; (D)                                                              
     the state in which the executive or management committee of                                                                
     the board of directors or a similar governing body of the                                                                  
     entity conducts the majority of its meetings: (E) the state                                                                
     from which the management of the overall operations of the                                                                 
     entity is directed; and (F) in the case of a benefit plan                                                                  
     sponsored by affiliated companies making up a consolidated                                                                 
     corporation, the state in which the holding company or                                                                     
     controlling affiliate has its principal place of business as                                                               
     determined using the factors described in (A) - (E) of this                                                                
     paragraph; however, if more than 50 percent of the                                                                         
     participants in the benefit plan are employed in a single                                                                  
     state, that state is considered to be the principal place of                                                               
     business of a plan sponsor that is a single employer or an                                                                 
     employee organization;                                                                                                     
          (2) two or more employers or employee organizations is                                                                
     that state in which the employers or employee organizations                                                                
     have the largest investment in the benefit plan."                                                                          
                                                                                                                                
Number 1436                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to move CSHB 398(L&C),                                                                    
version 1-LS1376\I, as amended, out of committee with individual                                                                
recommendations and attached zero fiscal notes.                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN stated:                                                                                                    
                                                                                                                                
     The concern I would have with that, then, is if Mr. Ridgeway                                                               
     comes back with something, even though that is you say the                                                                 
     word in the model bill [is], "any".  Is there any concern                                                                  
     among any of the members of the committee that they would like                                                             
     to know for sure that ... that takes care of our concerns, our                                                             
     mutual concerns?                                                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA replied that if the chairman of the House                                                               
Labor and Commerce Committee [Representative Rokeberg] agrees that                                                              
there is a problem, then it can be taken care of on the floor of                                                                
the House of Representatives.                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG indicated that he wouldn't object, if there                                                             
is a problem.                                                                                                                   
                                                                                                                                
REPRESENTATIVE GREEN asked whether there was any objection to                                                                   
moving the bill out of committee.  There being none, CSHB 398(JUD),                                                             
moved from the House Judiciary Standing Committee.                                                                              
                                                                                                                                
HB 369 - PROPERTY EXEMPTIONS                                                                                                    
                                                                                                                                
REPRESENTATIVE GREEN announced the next order of business would be                                                              
HOUSE BILL NO. 369, "An Act relating to property exemptions under                                                               
the Alaska Exemptions Act; and providing for an effective date."                                                                
                                                                                                                                
Number 1530                                                                                                                     
                                                                                                                                
JOHN MANLY, Staff to Representative John Harris, Alaska State                                                                   
Legislature, came before the committee on behalf of the sponsor.                                                                
He informed members that there were two proposed committee                                                                      
substitutes [Version H, 1-LS1266\H,  and Version I, 1-LS1266\I].                                                                
One version [Version I] retains the indexing for monetary                                                                       
provisions in relation to the Consumer Price Index (CPI).  The                                                                  
other version [Version H] completely deletes the indexing provision                                                             
in relation to the CPI.  He noted that Chris Miller of the                                                                      
Department of Labor & Workforce Development was present to speak to                                                             
the indexing process and why the legislature changes it as much as                                                              
it does.                                                                                                                        
                                                                                                                                
Number 1583                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Manly to indicate which proposed                                                              
committee substitute (CS) was preferred by the sponsor, by Mr.                                                                  
Greer - "father" of the bill - and the Department of Labor &                                                                    
Workforce Development.                                                                                                          
                                                                                                                                
MR. MANLY replied that Mr. Greer had not expressed a preference in                                                              
relation to the indexing provision.  The provision was inserted                                                                 
into the original bill by the legal drafter [Terry Bannister,                                                                   
Attorney, Legislative Counsel, Legislative Legal and Research                                                                   
Services, Legislative Affairs Agency] because she felt that it                                                                  
needed attention.  The sponsor has indicated that he is willing to                                                              
support what the Department of Labor & Workforce Development                                                                    
prefers.                                                                                                                        
                                                                                                                                
Number 1656                                                                                                                     
                                                                                                                                
CHRIS MILLER, Research & Analysis, Central Office, Division of                                                                  
Administrative Services, Department of Labor & Workforce                                                                        
Development, came before the committee to testify.  He indicated                                                                
that the department would prefer to get out of the business of                                                                  
indexing.                                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG responded that he doesn't have a problem                                                                
with the department getting out of the business of indexing.  He                                                                
would, however, defer to the members of the committee and the legal                                                             
profession as to whether they want to continue updating the index.                                                              
He doesn't like indexing himself, he added.                                                                                     
                                                                                                                                
Number 1721                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT stated his belief that the indexing provision                                                              
ought to be deleted.  He also thinks that the figure of $250,000 is                                                             
"close," contrary to those who have indicated that it is high.  He                                                              
would prefer that the legislature periodically update the index in                                                              
statute rather than to have the Department of Labor & Workforce                                                                 
Development automatically update it.  In that way, a person can                                                                 
read the statute and understand the value of the index.  Right now,                                                             
$54,000, the value referred to in statute, doesn't mean $54,000; it                                                             
means something else that a person has to figure out.                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG interjected that a person has to wait until                                                             
October for the department to compute the value of the index.                                                                   
                                                                                                                                
Number 1770                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to adopt as a work draft the                                                                 
proposed CS for HB 369, Version H [1-LS1266\H, Bannister, 3/27/00].                                                             
There being no objection, Version H was before the committee.                                                                   
                                                                                                                                
Number 1782                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Miller how the figure of $250,000                                                                
compares with other states.                                                                                                     
                                                                                                                                
MR. MILLER replied that he doesn't know; he has not done a                                                                      
comparison of other states but has only looked at the figure in                                                                 
relation to the rest of the state.                                                                                              
                                                                                                                                
MR. MANLY said that testimony has indicated that a number of states                                                             
do not have a limit.                                                                                                            
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Manly whether it is a reasonable                                                                 
number.                                                                                                                         
                                                                                                                                
MR. MANLY replied that he would classify it as a reasonable number.                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG noted, for the record, that the committee                                                               
has received a couple of letters indicating that a joint exemption                                                              
equates to a half million dollars for a spousal combination.                                                                    
                                                                                                                                
Number 1830                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to move CSHB 369, Version H                                                               
[1-LS1266\H, Bannister, 3/27/00], out of committee with individual                                                              
recommendations and attached zero fiscal note.  There being no                                                                  
objection, CSHB 369(JUD) moved from the House Judiciary Standing                                                                
Committee.                                                                                                                      
                                                                                                                                
HB 392 - CONTINUANCES OF CINA HEARINGS                                                                                          
                                                                                                                                
REPRESENTATIVE GREEN announced the next order of business would be                                                              
HOUSE BILL NO. 392, "An Act relating to continuances for temporary                                                              
placement hearings that follow emergency custody of a minor; and                                                                
amending Rule 10, Alaska Child in Need of Aid Rules."  The                                                                      
committee would be taking up CSHB 392(HES), version 1-LS1224\G.                                                                 
                                                                                                                                
Number 1881                                                                                                                     
                                                                                                                                
REPRESENTATIVE JIM WHITAKER, Alaska State Legislature, came before                                                              
the committee as sponsor of the bill.  He was joined at the table                                                               
with staff, Lori Backes.  This bill, he said, is relatively simple.                                                             
The single largest complaint that his office receives is from                                                                   
parents or guardians in relation to the lack of time to understand                                                              
the circumstances surrounding the 48-hour hearing, which determines                                                             
whether a child is a "child in need of aid" (CINA).  Yet there is                                                               
a provision in statute for judges to explain the circumstances to                                                               
those involved, but it has not worked as well as hoped.  This bill,                                                             
therefore, makes it very clear that a judge must explain to parents                                                             
and/or guardians that they have the right to request a continuance.                                                             
This is in no way an attempt to circumvent the efforts of the                                                                   
Division of Family and Youth Services [Department of Health &                                                                   
Social Services].  This is merely an assertion of the rights of                                                                 
parents and guardians to understand their rights, to give them time                                                             
to think, and to get their act together.                                                                                        
                                                                                                                                
Number 1950                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT noted that the emergency custody provision                                                                 
remains intact.  In that way, a parent or guardian would not get a                                                              
child back during this period of time.                                                                                          
                                                                                                                                
REPRESENTATIVE WHITAKER affirmed that.                                                                                          
                                                                                                                                
Number 1961                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that the bill mandates that the                                                                  
hearing officer grant a continuance, but there don't seem to be any                                                             
limitations placed on a continuance.  How would that be handled?                                                                
                                                                                                                                
REPRESENTATIVE WHITAKER replied that the seven-day stipulation was                                                              
removed in the House Health, Education and Social Services                                                                      
Committee because there is a need for leeway on the part of the                                                                 
hearing officer or judge.  In that way, a hearing officer or judge                                                              
could grant a limited continuance or a series of continuances.                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Representative Whitaker whether these                                                             
types of hearings typically take place in a court or before a                                                                   
hearing officer.                                                                                                                
                                                                                                                                
REPRESENTATIVE WHITAKER replied, according to his understanding,                                                                
that a hearing officer is used in most cases.                                                                                   
                                                                                                                                
Number 2030                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Representative Whitaker whether it is                                                             
correct to say that a hearing officer "becomes the court" by way of                                                             
statutory construction of the bill.                                                                                             
                                                                                                                                
REPRESENTATIVE WHITAKER replied that he doesn't believe that it                                                                 
changes the statute in that regard.  He pointed out that the bill                                                               
does not require a continuance.  It simply requires that the                                                                    
hearing officer and/or judge inform the parent or guardian of the                                                               
right to request a continuance.  Upon a request, the hearing                                                                    
officer or judge then makes a determination as to whether it is a                                                               
valid request.                                                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Representative Whitaker whether a                                                                 
judge would have the discretion to set a follow-up hearing, for                                                                 
example.                                                                                                                        
                                                                                                                                
REPRESENTATIVE WHITAKER replied the hearing officer and/or judge                                                                
would make a determination on whether or not to grant a                                                                         
continuance.                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Representative Whitaker what happens                                                              
after the granting of a continuance.                                                                                            
                                                                                                                                
REPRESENTATIVE WHITAKER replied that a time stipulation is placed                                                               
on a continuance at the time it is granted.  The bill is not an                                                                 
attempt to endlessly draw out the process.  Judicial discretion is                                                              
maintained.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG commented that he is concerned about the                                                                
practical implications of the bill in relation to the judicial                                                                  
process.                                                                                                                        
                                                                                                                                
Number 2108                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Representative Whitaker whether the                                                                  
removal of the seven-day continuance was to allow for whatever                                                                  
might need to be done.  He posed a scenario:  "I'm a bad guy.  I've                                                             
been bad to my kids and I can't correct that in seven days, but,                                                                
maybe, I can go to some sort of a head-knock session, and in 14                                                                 
days I'll be clean."                                                                                                            
                                                                                                                                
REPRESENTATIVE WHITAKER replied no, that was not the intent.  The                                                               
single largest complaint that he hears from individuals in these                                                                
circumstances is that 48 hours isn't enough time to get over the                                                                
confusion, anger and panic of what to do when the state takes                                                                   
action to protect the safety of a child.  Generally speaking, these                                                             
individuals are not in the most comfortable of situations, and this                                                             
is a very rude awakening.  The bill allows for these individuals to                                                             
go to court and ask for a little time to get their act together.                                                                
The bill requires that the court advise the parent or guardian of                                                               
the right to request a continuance.  In most cases, he noted, the                                                               
individuals are not aware of the specific charges until the                                                                     
hearing.  He also noted that these are individuals who are somewhat                                                             
disenchanted with the so-called system to begin with, so this is a                                                              
chance to extend an open hand to give them time to think.                                                                       
                                                                                                                                
Number 2216                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Representative Whitaker whether there is                                                             
an upper limit for an extension.                                                                                                
                                                                                                                                
REPRESENTATIVE WHITAKER replied that it is fair to say that                                                                     
judicial discretion will rule the day.                                                                                          
                                                                                                                                
REPRESENTATIVE GREEN opened the meeting to public testimony.                                                                    
                                                                                                                                
Number 2248                                                                                                                     
                                                                                                                                
BLAIR McCUNE, Deputy Director, Central Office, Public Defender                                                                  
Agency, Department of Administration, testified via teleconference                                                              
from Anchorage.  The agency supports the bill, he told members.  A                                                              
lot of what is set out in the bill is "kind of" done in practice                                                                
now in the Anchorage courts and in most other areas throughout the                                                              
state.  A parent will come in, he explained, and want to have an                                                                
attorney appointed to help the parent through the 48-hour temporary                                                             
custody hearing.  That is what allows the agency to get involved                                                                
with the case.                                                                                                                  
                                                                                                                                
MR. McCUNE noted that in actuality continuances are for a few days,                                                             
and are used to look at medical records, for example.  Generally,                                                               
a continuance is granted for about a day or at the most two days.                                                               
In CINA cases, he explained, there is the initial 48-hour hearing                                                               
and then an adjudication hearing, which is about 120 days later.                                                                
It is important, therefore, for parents to understand where they                                                                
are going and what needs to be done.  He commented that this issue                                                              
was discussed in detail in the House Health, Education and Social                                                               
Services Committee, at which time it was decided not to put strict                                                              
time limits on a continuance in order to allow for a lot of                                                                     
judicial discretion.                                                                                                            
                                                                                                                                
Number 2354                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. McCune whether he was saying that                                                                
removing the seven-day limit is really just an extension of a few                                                               
days rather than an opened-ended limit.                                                                                         
                                                                                                                                
MR. McCUNE affirmed that.  He said it is extremely rare to get as                                                               
much as a seven-day continuance.  Leeway is important because some                                                              
cases might involve medical testimony, which requires checking the                                                              
medical records and consulting with the family doctor.  Those types                                                             
of cases are rare, but they might require a ten-day continuance                                                                 
rather than a seven-day continuance, for example.  It just didn't                                                               
seem right, he said, to include a strict time limit.  Normally,                                                                 
after reviewing the case, it is often decided that a family should                                                              
stipulate temporary custody, especially in the case of serious                                                                  
abuse.  The time is then spent trying to fix the problems.                                                                      
                                                                                                                                
Number 2417                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed out that there isn't a fiscal note                                                              
from the Public Defender Agency.  He asked Mr. McCune whether it is                                                             
typical for a public defender to be available at a 48-hour hearing                                                              
or if one has to be contacted by the parents or guardians for                                                                   
counseling.                                                                                                                     
                                                                                                                                
MR. McCUNE said that is a good question.  There is a bill, which                                                                
recently passed the House of Representatives and is now in the                                                                  
Senate, that lets the Public Defender Agency get involved earlier                                                               
in the process without an official appointment by the court.  As it                                                             
stands now, a parent or guardian goes through a financial screening                                                             
before a court issues an order to appoint a public defender to the                                                              
case.  Mr. McCune further stated that there is a zero fiscal note                                                               
from the Public Defender Agency because the language reads "may" be                                                             
represented by the Public Defender Agency, which allows for some                                                                
leeway.  He reiterated that the bill codifies current practices,                                                                
particularly in Anchorage, where about a half of the CINA cases are                                                             
located.  In most other areas of the state, the practice is to have                                                             
a shortened continuance in order to talk to the parent or guardian                                                              
to determine whether further investigation is needed.  The agency                                                               
doesn't expect much fiscal impact as a result of the bill.                                                                      
                                                                                                                                
TAPE 00-41, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN indicated that he is willing to take Mr.                                                                   
McCune's verbal input in relation to the zero fiscal note, but that                                                             
it might help to submit one.  He asked Mr. McCune whether a                                                                     
continuance would help to present a better case and more thorough                                                               
review in the arena of fairness.                                                                                                
                                                                                                                                
MR. McCUNE affirmed that, adding that it would allow for the parent                                                             
or guardian to consult with a lawyer, and it would expedite the                                                                 
process in a way.  For example, the department wouldn't have to                                                                 
"put out" proof if probable cause is stipulated, which could save                                                               
the court time and resources.                                                                                                   
                                                                                                                                
REPRESENTATIVE GREEN, noting that there were no further testifiers,                                                             
closed the meeting to public testimony.                                                                                         
                                                                                                                                
Number 0085                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA made a motion to move CSHB 392(HES),                                                                    
version 1-LS1224\G, out of committee with individual                                                                            
recommendations and attached fiscal notes.  There being no                                                                      
objection, CSHB 392(HES) moved from the House Judiciary Standing                                                                
Committee.                                                                                                                      
                                                                                                                                
HB 292 - DISCLOSURE OF CRIMINAL HISTORY RECORDS                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN announced the next order of business would be                                                              
HOUSE BILL NO. 292, "An Act adopting the National Crime Prevention                                                              
and Privacy Compact; making criminal justice information available                                                              
to interested persons and criminal history record information                                                                   
available to the public; making certain conforming amendments; and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
Number 0101                                                                                                                     
                                                                                                                                
KENNETH E. BISCHOFF, Director, Central Office, Division of                                                                      
Administrative Services, Department of Public Safety (DPS), came                                                                
before the committee to present the bill.  The primary purpose of                                                               
the bill is to adopt a national compact [the National Crime                                                                     
Prevention and Privacy Compact], which deals with criminal history                                                              
record background checks.  Over the years, the legislature has                                                                  
passed a number of statutes mandating background checks for                                                                     
employment and licensing purposes.  He cited teachers, school bus                                                               
drivers, and assisted living homes as examples.                                                                                 
                                                                                                                                
MR. BISCHOFF said that every state in the nation deals with the                                                                 
same issue when it comes to doing a national criminal history                                                                   
background check for these types of occupations.  The presumption                                                               
is that once it is important enough for the legislature to pass a                                                               
law, the DPS should use the best information available.  A national                                                             
compact would allow the department to have access to more timely                                                                
and complete criminal history records of other states.  In order to                                                             
do that, every state needs to agree to a common set of rules by                                                                 
which to exchange information.  The adoption of this compact would                                                              
do just that.  Mr. Bischoff encouraged the committee members to                                                                 
support the bill.  He noted that the department had submitted an                                                                
amendment [Amendment 1] that would allow the Alcoholic Beverage                                                                 
Control Board to do a national background check on their licensed                                                               
applicants.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Bischoff what the compact will                                                                   
provide.                                                                                                                        
                                                                                                                                
MR. BISCHOFF replied there will be a national pointer system                                                                    
established as each state comes online at the FBI [Federal Bureau                                                               
of Investigation] for civil purposes.  The pointer system will                                                                  
establish a unique federal identification number that will indicate                                                             
which states have information on a particular individual.  It will                                                              
allow the department to electronically query the system and go                                                                  
directly to each state to get background information.                                                                           
                                                                                                                                
Number 0231                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Bischoff how this can be done with                                                               
a zero fiscal note.                                                                                                             
                                                                                                                                
MR. BISCHOFF replied that as the system develops, there will be an                                                              
additional workload, but the trade-off is that for every arrest,                                                                
each state is required to send a duplicate set of fingerprints to                                                               
the FBI.  Under this system, a first-time arrest card will be sent                                                              
only once.  And once a federal identification number has been                                                                   
established, the department will not have to send any future cards                                                              
because they will be able to make an identification locally and                                                                 
update the record accordingly.  He noted that it costs about                                                                    
$30,000 for criminal arrest cards a year.                                                                                       
                                                                                                                                
Number 0278                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Bischoff whether the department gets                                                             
a lot of "hits" now from other states for information.                                                                          
                                                                                                                                
MR. BISCHOFF replied that about two years ago the legislature                                                                   
appropriated money to the DPS to upgrade their fingerprinting                                                                   
system, which allowed them to combine their system with those of                                                                
six other western states.  After the first year of operation and                                                                
searching the database, approximately 75 percent of the                                                                         
identifications were made using other states' records.                                                                          
                                                                                                                                
Number 0314                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN noted that earlier in the session it was                                                                   
suggested that Alaska might become a member of an interstate                                                                    
parole-type compact, but the idea fell on deaf ears.  He asked Mr.                                                              
Bischoff how this compact is different.                                                                                         
                                                                                                                                
MR. BISCHOFF replied that even though this is a national compact,                                                               
all 50 states had participated in drafting the language, getting it                                                             
through the President's office and submitting it to Congress for                                                                
adoption.  Furthermore, the mechanics of this system already exist                                                              
for law enforcement purposes, and it is being used by all 50 states                                                             
now.  The compact puts in place the rules to allow it to be used                                                                
uniformly for civil purposes.                                                                                                   
                                                                                                                                
Number 0401                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Bischoff to expand on what type                                                               
of information an agency or employer would get with the inclusion                                                               
of arrest information without court dispositions and information                                                                
beyond the ten-year unconditional discharge date.                                                                               
                                                                                                                                
MR. BISCHOFF explained that several years back, with the help of                                                                
the legislature, the department completely updated AS 12.62 by                                                                  
including model language from national groups.  The term                                                                        
"unconditional discharge date" is a fairly common term, but in                                                                  
Alaska it is a very difficult date to calculate.  He noted that the                                                             
Department of Corrections manually calculates the date and is                                                                   
moving towards automating the calculation with their new computer                                                               
system.  The reason for the change is because the state conducts                                                                
20,000 fingerprint-based applicant checks a year for employment and                                                             
licensing purposes, and the department would have to submit a major                                                             
fiscal note - and the process would slow down - if they couldn't                                                                
just give the regulatory agencies or authorized employers the                                                                   
complete record.                                                                                                                
                                                                                                                                
Number 0465                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Bischoff to explain what                                                                      
"unconditional discharge" would indicate to someone requesting this                                                             
type of information.                                                                                                            
                                                                                                                                
MR. BISCHOFF replied that unconditional discharge means that a                                                                  
person has served his incarceration time, is released on probation                                                              
or parole, and is being monitored.  It would indicate the date that                                                             
the person no longer has to report to a probation officer.  He                                                                  
reiterated that calculating the date is not a straightforward                                                                   
process.                                                                                                                        
                                                                                                                                
Number 0501                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA stated concern that it might mean that                                                                  
after a period of time the record is gone, similar to a suspended                                                               
imposition.  She asked Mr. Bischoff to explain the kinds of arrest                                                              
information.                                                                                                                    
                                                                                                                                
MR. BISCHOFF replied that Section 3 of the bill updates the list of                                                             
what is considered a serious offense.                                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA asked Mr. Bischoff whether a description                                                                
about an arrest is included, such as information on a mistaken                                                                  
arrest.                                                                                                                         
                                                                                                                                
MR. BISCHOFF replied that the criminal history report would include                                                             
the arrest card, the arresting agency, and the results of the                                                                   
fingerprint search.  The system currently does not include                                                                      
information from the prosecutor, so it usually requires a court                                                                 
disposition to update the record indicating innocence or guilt.                                                                 
The nature of information that a regulatory or employer needs                                                                   
varies.  When it comes to dealing with children, for example, a                                                                 
person may have four or five arrests but no convictions, which is                                                               
information that may be very helpful to the Division of Family &                                                                
Youth Services; setting a filter that denies them that type of                                                                  
information is not good public policy.  The department would prefer                                                             
to put the burden on the regulatory agency to decide what is                                                                    
relevant information because it is truly their decision.  Moreover,                                                             
he doesn't think that it is appropriate for his staff to make                                                                   
policy decisions for regulatory agencies.                                                                                       
                                                                                                                                
Number 0627                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked Ms. Langdon what type of arrest                                                                   
information the Division of Family & Youth Services gets.                                                                       
                                                                                                                                
Number 0651                                                                                                                     
                                                                                                                                
GLADYS LANGDON, Children Services Manager, Anchorage Region, Family                                                             
Services, Division of Family & Youth Services, Department of Health                                                             
& Social Services, came before the committee to answer                                                                          
Representative Kerttula's question.  The division gets an arrest                                                                
record and can get a criminal history.  It is very important that                                                               
they have access to the complete record, even beyond the ten-year                                                               
period.  She also noted that federal funding is dependent upon the                                                              
division having access to these types of records.                                                                               
                                                                                                                                
Number 0670                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA stated, then, that it is the division's job                                                             
to figure out if the arrests indicate anything or not.  She asked                                                               
Ms. Langdon whether she has seen circumstances where it was just an                                                             
arrest that kept a person from being able to get a license.                                                                     
                                                                                                                                
MS. LANGDON replied no.                                                                                                         
                                                                                                                                
Number 0691                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Bischoff how the department knows                                                                
who needs a record check.  Is it just for the employer who wants to                                                             
know about a particular person?                                                                                                 
                                                                                                                                
MR. BISCHOFF replied that the legislature has established which                                                                 
regulatory agencies need a background check.  The department lets                                                               
the regulatory agencies drive the request process, which equates to                                                             
20,000 [requests] a year.  The department first searches their                                                                  
records, and any qualifying offense is communicated to the                                                                      
regulatory agency.  If they don't get an identification, they then                                                              
ship the request to the FBI via the mail.  When the system is                                                                   
updated, he noted, the request will be sent via an electronic                                                                   
transfer, which will allow for a quicker turnaround time.                                                                       
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Bischoff whether there is a charge.                                                              
                                                                                                                                
MR. BISCHOFF replied yes, there is a $35 in-state charge, and the                                                               
FBI charges $24 for a national check.                                                                                           
                                                                                                                                
REPRESENTATIVE GREEN commented that it is self-funding.                                                                         
                                                                                                                                
Number 0778                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Bischoff whether this is the                                                                  
system that state employees had accessed a couple of years ago,                                                                 
which had created some controversy.                                                                                             
                                                                                                                                
MR. BISCHOFF replied that there was controversy surrounding the use                                                             
of the Alaska Public Safety Information Network, which is                                                                       
interfaced to the national system.  The bill, he noted, deals with                                                              
the national system.                                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Bischoff whether there is a                                                                   
separation between the two.                                                                                                     
                                                                                                                                
MR. BISCHOFF replied, "Yes."                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Bischoff whether he can assure                                                                
the committee members the abuses that may have taken place before                                                               
will not take place again.                                                                                                      
                                                                                                                                
MR. BISCHOFF replied that his staff, as a result of the                                                                         
controversy, has implemented a whole host of edits, to notify                                                                   
security if certain records are run against certain public                                                                      
officials.  An audit function has also been implemented.  There is                                                              
no way, however, that he can guarantee 100 percent that this will                                                               
never occur again.  But there are better tools to work with and a                                                               
keener sensitivity of the issue now.                                                                                            
                                                                                                                                
Number 0837                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Bischoff whether any of the                                                                   
agencies can get into that information.                                                                                         
                                                                                                                                
MR. BISCHOFF replied that the only way a person can query the                                                                   
compact for information is if there is a set of fingerprints, and                                                               
the applicant has to agree to a set of fingerprints.  The only                                                                  
authorized agency in the state to run a check is the Criminal                                                                   
Investigations Unit [DPS] in Anchorage.  In other words, there                                                                  
won't be 22,000 users querying the system for this type of                                                                      
information.                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG surmised that it is [Mr. Bischoff's] staff                                                              
that does the work for these agencies that have justified their                                                                 
request.                                                                                                                        
                                                                                                                                
MR. BISCHOFF affirmed that.                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN indicated that, in itself, should make a major                                                             
difference.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Bischoff how this system will                                                                 
interface with the court's computer system.  It is his                                                                          
understanding that the court system has an antiquated computer                                                                  
system, he added.                                                                                                               
                                                                                                                                
MR. BISCHOFF replied that the DPS speaks in favor of the capital                                                                
request from the court system to update their computer system.                                                                  
Currently, he explained, that the DPS receives court dispositions                                                               
in the mail and manually enters the information.  Once the court                                                                
system is automated the information will be transferred                                                                         
electronically.  He further explained that when an individual is                                                                
booked by the Department of Corrections and fingerprinted using a                                                               
live scan machine, the information is sent to the DPS, at which                                                                 
time staff processes the information through the Western                                                                        
Identification Network to verify the person's identity.  Upon                                                                   
identification, staff updates the person's criminal history record                                                              
in the Alaska Public Safety Information Network, and if it is a                                                                 
criteria offense, staff updates the national FBI system.                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that the courts are not hooked up                                                                
electronically.                                                                                                                 
                                                                                                                                
MR. BISCHOFF concurred.                                                                                                         
                                                                                                                                
Number 0971                                                                                                                     
                                                                                                                                
REPRESENTATIVE LISA MURKOWSKI commented that according to her                                                                   
understanding there are only a few states that have signed on to                                                                
the compact.  She asked Mr. Bischoff what would happen if the other                                                             
states do not sign on to the idea.  As she understands, it is just                                                              
an exchange of information between those states who have access to                                                              
the compact, she added.                                                                                                         
                                                                                                                                
MR. BISCHOFF replied that the information from the 50 states that                                                               
the FBI has converted would be available through the system.  The                                                               
states that do not adopt the compact would continue to send cards                                                               
to the FBI, and that information would be available through the                                                                 
system.  But, as more and more states join in the compact, Alaska                                                               
would have access to records that are not forwarded to the FBI.  He                                                             
cited that as much as 40 percent of the criminal history records                                                                
for the state of Oregon are not indexed with the FBI, so when they                                                              
sign up for the compact Alaska would have access to those records.                                                              
Oregon, he noted, is part of the Western Identification Network, a                                                              
consortium of seven western states and a reason why Alaska gets a                                                               
75-percent hit rate on out-of-state records.  He also said many                                                                 
drunk driving offenses in California are fingerprinted but not                                                                  
forwarded to the FBI, so when they sign up for the compact, Alaska                                                              
would have access to those records.  He noted that four states have                                                             
adopted the compact, six states are going through the process of                                                                
adopting the compact, and many states are considering going through                                                             
the process next year.  He hopes that in about five to six years a                                                              
majority of the states would be onboard.                                                                                        
                                                                                                                                
Number 1110                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Bischoff whether Alaska would                                                                
still have access to certain information from a state that does not                                                             
sign on to the compact.  In that way, there is still a networking                                                               
system that does not go away.                                                                                                   
                                                                                                                                
MR. BISCHOFF answered, "Correct."                                                                                               
                                                                                                                                
Number 1129                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Bischoff whether the states that                                                                 
sign on to the compact would go directly to Alaska for information,                                                             
while the rest of the states that do not sign on to the compact                                                                 
would go through the FBI.                                                                                                       
                                                                                                                                
MR. BISCHOFF affirmed that.                                                                                                     
                                                                                                                                
Number 1145                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr. Bischoff whether there is any                                                                
financial incentive for the states to sign on to the compact.                                                                   
                                                                                                                                
MR. BISCHOFF replied that there is a trade-off to signing on to the                                                             
compact.  The department has submitted a zero fiscal note because                                                               
even though there would be additional work, the system would reduce                                                             
the number of fingerprint cards that would have to be forwarded to                                                              
the FBI.  The department believes that it would be a "wash."                                                                    
                                                                                                                                
Number 1200                                                                                                                     
                                                                                                                                
LINDA KESTERSON, Assistant Attorney General, Natural Resources                                                                  
Section, Civil Division, Department of Law, testified via                                                                       
teleconference from Anchorage in relation to the amendment to                                                                   
include the Alcoholic Beverage Control Board.  The compact, she                                                                 
said, recognizes that there are non-criminal reasons for a criminal                                                             
background check, and that there are a number of governmental                                                                   
entities that have the ability in statute to collect that type of                                                               
information, as Mr. Bischoff has indicated.  The federal law                                                                    
specifically requires that there is a state statute authorizing                                                                 
these types of national background check.  The amendment,                                                                       
therefore, would change Title 4 to give the Alcoholic Beverage                                                                  
Control Board the authority to require an applicant to submit a                                                                 
fingerprint, which would then be submitted to the DPS for a                                                                     
criminal background check.  Without that, she said, the board can                                                               
only conduct an Alaska criminal background check, which eliminates                                                              
a lot of useful information to the board in determining whether or                                                              
not an applicant is a proper applicant for a liquor license.                                                                    
                                                                                                                                
Number 1319                                                                                                                     
                                                                                                                                
DOUG GRIFFIN, Director, Alcoholic Beverage Control Board, testified                                                             
via teleconference from Anchorage in support of the amendment to                                                                
include the Alcoholic Beverage Control Board.  This is a very high                                                              
priority for the board.  It is deemed as a good step in preventing                                                              
a problem of somebody holding a liquor license who has a criminal                                                               
background.  The board may not be aware of someone's criminal                                                                   
background given the present system.  It makes sense for an                                                                     
efficient government, for it's a lot more expensive to try and                                                                  
remediate a problem with a licensee with a criminal background who                                                              
shows irresponsibility in running his business than it is to                                                                    
prevent a problem.  The board hopes that the amendment is adopted                                                               
and that the bill moves forward.                                                                                                
                                                                                                                                
Number 1380                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA asked what kind of authority the board has                                                              
now before issuing a liquor license.  Can the board look at                                                                     
arrests?  How does the board screen out information that the board                                                              
doesn't have authority to review?                                                                                               
                                                                                                                                
MR. GRIFFIN replied this is for non-criminal purpose.  The issuance                                                             
of a liquor license.  The board has some authority to use the                                                                   
database when dealing with a criminal investigation, which is not                                                               
all that often.  For non-criminal purposes, the board has been                                                                  
submitting fingerprint cards to the DPS who then reviews them for                                                               
any criminal conviction within the state.  That information is                                                                  
forwarded to the board for consideration, and the applicant is                                                                  
given an opportunity to discuss the information with the board in                                                               
an executive session.  The information is treated as confidential.                                                              
                                                                                                                                
Number 1490                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA stated that it seems that the language in                                                               
the amendment is giving the board broad authority.  It reads, "The                                                              
board shall use the information obtained under this section in its                                                              
determination of the suitability for licensure of the person filing                                                             
or executing the application."                                                                                                  
                                                                                                                                
MS. KESTERSON said the statute entitles the board to gather                                                                     
background information in determining whether it is appropriate for                                                             
a person to hold a liquor license.  Specifically, AS 04.11.260                                                                  
indicates that [an applicant must include] any other information                                                                
required for the board.  And AS 04.11.300 indicates that the state                                                              
troopers shall assist the director in the investigation of                                                                      
applicants for new licenses and applicants for the transfer of                                                                  
existing licenses before the applications are considered by the                                                                 
board.  The policy has always been to conduct background checks on                                                              
applicants.  However, the way the law is written now, in order to                                                               
get any criminal background records from any state other than                                                                   
Alaska there has to be specific authority in statute, which is what                                                             
the amendment is meant to do.  She further asserted that the                                                                    
Alcoholic Beverage Control Board is the type of entity that should                                                              
be entitled to criminal background information in order to                                                                      
determine whether or not a person should hold a liquor license.                                                                 
                                                                                                                                
REPRESENTATIVE GREEN, noting that there were no further testifiers,                                                             
closed the meeting to public testimony.                                                                                         
                                                                                                                                
Number 1670                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to adopt Amendment 1.  There                                                              
being no objection, Amendment 1 was adopted.  It read as follows:                                                               
                                                                                                                                
     Page 1, line 3, following "public;"                                                                                        
                                                                                                                                
          Insert "providing for the use of criminal justice                                                                     
          information and records by the Alcoholic Beverage Control                                                             
          Board;"                                                                                                               
                                                                                                                                
     Page 1, following line 5:                                                                                                  
                                                                                                                                
          Insert a new bill section to read:                                                                                    
                                                                                                                                
     "*Section 1.  AS 04.06 is amended by adding a new section to                                                               
     read:                                                                                                                      
                                                                                                                                
          Sec. 04.06.095.  Criminal justice information and                                                                     
records.  (a)  The board shall require a person filing or executing                                                             
an application for the issuance, renewal, or transfer of a license                                                              
under this title to be fingerprinted.  The board shall submit the                                                               
fingerprints to the Department of Public Safety to obtain a report                                                              
of criminal justice information under AS 12.62 and a national                                                                   
criminal history record check.  The Department of Public Safety is                                                              
authorized to submit the fingerprints to the Federal Bureau of                                                                  
Investigation for a national criminal history record check.  The                                                                
board shall use the information obtained under this section in its                                                              
determination of the suitability for licensure of the person filing                                                             
or executing the application.                                                                                                   
                                                                                                                                
          (b) In this section, "criminal justice information" has                                                               
     the meaning given in AS 12.62.900."                                                                                        
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 16. Following line 20:                                                                                                
                                                                                                                                
          Insert new bill sections to read:                                                                                     
                                                                                                                                
          "*Sec. 9.  TRANSITION:  PENDING APPLICATIONS UNDER AS 04.                                                             
     Notwithstanding AS 04.06.095, enacted by sec. 1 of this Act,                                                               
     the Alcoholic Beverage Control Board may process an                                                                        
     application for a license under AS 04 without a national                                                                   
     criminal history record check from the Federal Bureau of                                                                   
     Investigation if that application was pending with the board                                                               
     on the effective date of sec. 1 of this Act.                                                                               
                                                                                                                                
          "Sec. 10.  Sections 1 and 9 of this Act take effect                                                                   
     immediately under AS 01.10.070(c)."                                                                                        
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 16, line 21:                                                                                                          
                                                                                                                                
          Delete "This"                                                                                                         
          Insert "Except as provided in sec. 10 of this Act, this"                                                              
                                                                                                                                
Number 1690                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA made a motion to move HB 292, version                                                                   
1-GH2014.A, as amended, out of committee with individual                                                                        
recommendations and attached fiscal notes.  There being no                                                                      
objection, CSHB 292(JUD) moved from the House Judiciary Standing                                                                
Committee.                                                                                                                      
                                                                                                                                
HB 294 - DNA TESTING & REGISTRATION                                                                                             
                                                                                                                                
REPRESENTATIVE GREEN announced the next order of business would be                                                              
HOUSE BILL NO. 294, "An Act relating to violations of an order to                                                               
submit to deoxyribonucleic acid (DNA) testing, to court orders and                                                              
conditions of parole to collect samples for DNA testing, to removal                                                             
of material from the DNA identification registration system; and to                                                             
the collection and processing of samples from certain burglary                                                                  
perpetrators for the DNA identification registration system; and                                                                
providing for an effective date."                                                                                               
                                                                                                                                
Number 1765                                                                                                                     
                                                                                                                                
DEL SMITH, Deputy Commissioner, Office of the Commissioner,                                                                     
Department of Public Safety (DPS), presented the bill via                                                                       
teleconference from Anchorage.  He explained that HB 294 expands a                                                              
bill passed by the legislature in 1995 that created the DNA                                                                     
[deoxyribonucleic acid] identification registration system.  That                                                               
bill only addressed DNA samples from those convicted of violent                                                                 
crimes against a person and minors 16 years of age, or older                                                                    
adjudicated delinquents for similar crimes.  The bill also added                                                                
methods by which to collect DNA samples.                                                                                        
                                                                                                                                
MR. SMITH noted that the DPS has been collecting samples since 1995                                                             
and storing them at the crime lab [Scientific Crime Detection                                                                   
Laboratory, DPS] in Anchorage.  The department is working hard at                                                               
storing the information in a database, and has become part of CODIS                                                             
[Combined DNA Index System].  House Bill 294 expands the collect of                                                             
DNA samples to include convictions for burglaries.  He stressed                                                                 
that the key word is "conviction" because according to research                                                                 
nationwide 52 percent of those convicted of person crimes have been                                                             
convicted previously, which indicates a crime of opportunity or a                                                               
continuance of burglar activity.  Mr. Smith thinks that it would be                                                             
good to capture a DNA sample early on for convictions of burglary                                                               
in the hopes of preventing person crimes later one.  The reverse of                                                             
that is the ability to determine who is not involved in a crime.                                                                
He noted that Ms. Leane Strickland of the crime lab is present to                                                               
answer any questions regarding DNA; and that officer John McKinnon                                                              
of the Anchorage Police Department is also present to answer                                                                    
questions regarding the collection of DNA.                                                                                      
                                                                                                                                
MR. SMITH continued.  He commented that technology has evolved to                                                               
the point that a blood sample is not needed for a sample,  Instead,                                                             
a swab of saliva can be taken as a sample.  In that way, most                                                                   
anybody can take a sample without any problems involving the proper                                                             
chain of custody.  The bill also expands who could take a sample to                                                             
include juvenile and adult correctional, probation and parole                                                                   
officers, and peace officers.  An increase of who can take a sample                                                             
would help solve some of the problems over the past five year of                                                                
obtaining a sample from all who are obligated to under the law.                                                                 
                                                                                                                                
Number 2071                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Smith whether an officer could take                                                              
a swab sample.                                                                                                                  
                                                                                                                                
MR. SMITH replied, "Yes."                                                                                                       
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Smith whether a swab sample is                                                                   
subject to distortion based on whatever is in a person's mouth.                                                                 
                                                                                                                                
MR. SMITH deferred the question to Ms. Leane Strickland.                                                                        
                                                                                                                                
Number 2109                                                                                                                     
                                                                                                                                
LEANE STRICKLAND, Supervisor, Scientific Crime Detection                                                                        
Laboratory, Department of Public Safety (DPS), testified via                                                                    
teleconference from Anchorage.  Yes, she said, there are some                                                                   
substances that may cause inhibitions when a sample is taken                                                                    
orally.  However, the lab has worked over the past three to four                                                                
years with hundreds and hundreds of oral samples, and there has                                                                 
only been one sample that they were not able to get a DNA profile                                                               
out of.  She said, "Again, any type of sampling that would be                                                                   
inhibited, we would not be getting an incorrect DNA profile, we                                                                 
would just not be getting a DNA profile from the sample."                                                                       
                                                                                                                                
Number 2167                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI said she is assuming that an oral sample                                                               
is as simple as taking a Q-tip swab to the saliva and putting it on                                                             
a test strip.  In that way, the results can be taken and processed                                                              
right there.                                                                                                                    
                                                                                                                                
MS. STRICKLAND replied that a Q-tip swab is used as well as an oral                                                             
scraper, which is a compacted cotton with serrated edges.  Testing,                                                             
however, is not performed immediately upon receipt of a sample.                                                                 
Testing is performed upon conviction.                                                                                           
                                                                                                                                
Number 2224                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Ms. Strickland whether there could                                                               
be a problem with the chain of custody, whereby a sample has been                                                               
taken and a period of time has elapsed so that it's not a correct                                                               
test.  Is an old sample such that it won't register?                                                                            
                                                                                                                                
MS. STRICKLAND replied that the lab is able to get a DNA profile                                                                
from an old sample.  Samples that are hundreds of years old, she                                                                
said, can show a DNA profile when stored in a dry environment.                                                                  
Samples are stored at the lab in such a way that over extended                                                                  
periods of time they are able to get profiles.                                                                                  
                                                                                                                                
Number 2325                                                                                                                     
                                                                                                                                
MR. SMITH pointed out that a person is obligated by law to give a                                                               
sample.  A sample could therefore be taken again if it is found to                                                              
be distorted or unreadable.  On the same token, a sample that                                                                   
indicated somebody else's profile could be taken again.  He said,                                                               
                                                                                                                                
     We're talking about a convicted offender database here.                                                                    
     And people that are obligated by law to do it.  If you                                                                     
     take a sample and the individual said that wasn't me that                                                                  
     the officer did then all he or she would have to do is                                                                     
     give a DNA sample.  We can compare and say something's a                                                                   
     foul here and the officer claimed it was somebody else.                                                                    
     I mean, there's a number of safeguards here in the DNA                                                                     
     process itself.  So, if the committee members were                                                                         
     concerned about that at all, I just wanted to point that                                                                   
     out.                                                                                                                       
                                                                                                                                
Number 2407                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked Mr. Smith to explain Section 6 of the                                                                
bill.  [Mr. Smith asked Ms. Strickland about it, and the short                                                                  
reply was cut off by the tape change.]                                                                                          
                                                                                                                                
TAPE 00-42, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
JOHN McKINNON, Officer, Anchorage Police Department, testified via                                                              
teleconference from Anchorage.  Section 6, he said, addresses an                                                                
administrative aspect of the bill in that there isn't a clear                                                                   
mechanism to remove a person's DNA from the registry.  Section 6                                                                
indicates that a person would have to pursue a court order in order                                                             
to remove his DNA from the registry.  In that way, the Department                                                               
of Public Safety would not have to continuously determine which                                                                 
person, which sample and which conviction date to manage the                                                                    
information between the court system and the department.  This                                                                  
should also prevent the removal of a DNA sample from the registry                                                               
that was not authorized to be removed, so that if in the future a                                                               
person committed another crime his sample still remained on the                                                                 
registry.                                                                                                                       
                                                                                                                                
Number 0157                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said he understands AS 44.41.035(i) and why it                                                             
is in the bill, but the changes shift the burden from the                                                                       
department to the person who was just declared innocent of a crime.                                                             
He said:                                                                                                                        
                                                                                                                                
     Not only do you have to go through all of the                                                                              
     determination to get "not guilty," now, you've got to                                                                      
     -you, instead of the government - [have] to take the                                                                       
     effort to get your DNA out of the database.  And it does                                                                   
     seem to me that if we're the person that's falsely                                                                         
     accused somebody, we ought to probably have the burden of                                                                  
     cleaning up our database on it.                                                                                            
                                                                                                                                
Number 0220                                                                                                                     
                                                                                                                                
MR. SMITH responded that he sees the language in Section 6 as a                                                                 
safeguard.  A person found "not guilty" in court can present that                                                               
information to the crime lab and have his or her DNA removed from                                                               
the system.  He is concerned that a court order not pursued                                                                     
vigorously by a defendant might be inadvertently left in the                                                                    
database.  The new language in Section 6 creates a clearer path to                                                              
get rid of a DNA sample, if it is suppose to be removed from the                                                                
database.  He sees it as an opportunity to ensure that it happens                                                               
rather than as a creation of more difficulties for a former                                                                     
defendant.                                                                                                                      
                                                                                                                                
Number 0299                                                                                                                     
                                                                                                                                
OFFICER McKINNON added that when Section 6 was drafted, the idea                                                                
was to provide a clear path for not only the DPS to carry out their                                                             
mission but for a person who has a court order to request the                                                                   
removal of his DNA from the registry.  It also helps the crime lab                                                              
feel more comfortable in their procedures.                                                                                      
                                                                                                                                
Number 0350                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said it is a more clear path, but it is at the                                                             
request of a person.  In other words, a request could have come                                                                 
from a lot of sources.  For example, the attorney general could ask                                                             
for a declaratory order to remove the DNA samples at the end of the                                                             
year for all those who had a conviction reversed.  He isn't sure                                                                
that the changes in Section 6 would allow that to happen now.  The                                                              
language reads, "... upon receipt of a court order issued at the                                                                
request of a person whose DNA has been collected ...."  He asked:                                                               
Why tie the state to only those types of requests when a court                                                                  
order could come at somebody else's request or even sua sponte?                                                                 
                                                                                                                                
Number 0434                                                                                                                     
                                                                                                                                
MR. SMITH replied that he understands what Representative Croft is                                                              
saying, but he's not prepared to deliver an answer.  He reiterated                                                              
that the language is trying to clear a path to ensure that a                                                                    
person's DNA is removed from the registry who has a court order.                                                                
There may be some inadvertent burden, but that is unintentional.                                                                
                                                                                                                                
Number 0479                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN suggested the following language:  "The                                                                    
Department of Public Safety shall upon the receipt of a court order                                                             
destroy the material in the system ...."  He asked Mr. Smith                                                                    
whether the above suggestion is too big of a cut.                                                                               
                                                                                                                                
MR. SMITH replied that the suggestion sounds reasonable.                                                                        
                                                                                                                                
Number 0485                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA pointed out that the original language in                                                               
statute doesn't require a court order; it puts the requirement on                                                               
the DPS.  She knows what Mr. Smith is saying, but there could be a                                                              
problem with a lot of people not knowing that they should do this.                                                              
She asked Mr. Smith whether he would be willing to amend the                                                                    
language as long as the Department of Law agreed to the change.                                                                 
                                                                                                                                
MR. SMITH replied, "Yes."                                                                                                       
                                                                                                                                
Number 0553                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN said he is concerned that without a court                                                                  
order the DPS may destroy a DNA sample that shouldn't be destroyed.                                                             
He agrees with Representative Croft in that it puts the burden on                                                               
the individual.  He wondered whether the language "court order"                                                                 
would be a safeguard or whether it would be unnecessary.  He said,                                                              
"At least you've got a court order saying you did it because you                                                                
had a court order."                                                                                                             
                                                                                                                                
Number 0607                                                                                                                     
                                                                                                                                
MS. STRICKLAND said she is concerned about a person who had a                                                                   
conviction overturned at the beginning of the year; and if there is                                                             
an extended period of time before the crime lab gets a list.  In                                                                
that way, a person's profile would have been searched nationally                                                                
for that extended period of time.  A person's profile could be                                                                  
removed quicker if he has the opportunity to get involved as the                                                                
bill indicates.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN suggested the following language:  "The                                                                    
Department of Public Safety shall upon receipt of a court order or                                                              
the request of the person whose DNA .... "  He explained that the                                                               
foregoing suggestion does not place a burden on the person, but                                                                 
creates an option for the person to have his sample removed at an                                                               
earlier time.                                                                                                                   
                                                                                                                                
REPRESENTATIVE CROFT pointed out that the language he had suggested                                                             
allows for anybody to come to the crime lab and request the removal                                                             
of his DNA sample.                                                                                                              
                                                                                                                                
Number 0698                                                                                                                     
                                                                                                                                
JENNIFER RUDINGER, Executive Director, Alaska Civil Liberties Union                                                             
[AkCLU], testified via teleconference from Anchorage in opposition                                                              
to HB 294.  She said she was there on behalf of the membership of                                                               
the AkCLU, which has 850 to 1000 [members] statewide.  She was also                                                             
there on behalf of the committee member's constituents who bombard                                                              
her office week after week expressing concern of the government's                                                               
ever increasing control over personal information, such as social                                                               
security numbers, census information, background checks, and DNA                                                                
and genetic types of information.  The concerns cross ideological                                                               
and party lines, she said, and many feel that the government has                                                                
not justified their demand for that type of information.  Many also                                                             
express concern that the government cannot be trusted to keep that                                                              
type of information confidential or limit its use for the initial                                                               
purpose for which it was collected.  The ACLU agrees with their                                                                 
expressed concerns, for they have seen evidence of this around the                                                              
country.  She read the following:                                                                                               
                                                                                                                                
     The Alaska Civil Liberties Union opposes HB 294 and                                                                        
     respectfully urges the committee to put an end to the                                                                      
     progressive expansion of DNA collection by the                                                                             
     government.  DNA collected from one person not only                                                                        
     reveals personal information about that person, much of                                                                    
     which has nothing to do with serving the needs of law                                                                      
     enforcement, but it also reveals very personal                                                                             
     information about everyone related to that person by                                                                       
     blood.  Unlike fingerprinting, which only reveals                                                                          
     information that can be used for identification purposes,                                                                  
     DNA gives the government control over a great deal of                                                                      
     personal, private information about anyone related to the                                                                  
     sample source.  Therefore, expansion of the government's                                                                   
     power to collect DNA from its citizens - even people                                                                       
     convicted of crimes - should not be taken lightly.                                                                         
     [House Bill] 294 proposes to invade the privacy of                                                                         
     innocent family members, and the government's only                                                                         
     justification is that burglars might later commit violent                                                                  
     crimes in which they leave DNA evidence at the scene.                                                                      
                                                                                                                                
     Initially, DNA storehouses were created to house                                                                           
     information about convicted sex offenders exclusively.                                                                     
     The argument was that sex offenders were especially prone                                                                  
     to recidivism.  They typically left DNA evidence at the                                                                    
     crime scene, and therefore, were important to identify.                                                                    
     Whether or not that argument was sufficient, we were                                                                       
     assured at the time that only convicted sex offenders                                                                      
     would be tested and the information gleaned from these                                                                     
     test would be used by law enforcement officials strictly                                                                   
     for identification purposes.                                                                                               
                                                                                                                                
     But, as often the case, that information initially                                                                         
     collected for one, limited purpose is before long used                                                                     
     for other purposes.  In less than a decade, law                                                                            
     enforcement official across the country have gone from                                                                     
     advocating collection of DNA from only convicted sex                                                                       
     offenders, and then to all violent offenders, and then to                                                                  
     all burglars, and in some states to anyone convicted of                                                                    
     any crime and even juvenile offenders.  And finally we                                                                     
     have recently seen proposals from as far up as Janet                                                                       
     Reno to collect DNA from people who are merely arrested                                                                    
     before they are even convicted regardless of whether                                                                       
     they're guilty of any wrong doing whatsoever.  And Rudy                                                                    
     Giuliani has not only voiced his support for this                                                                          
     proposal but he's gone so far as to say that he would                                                                      
     support the collection of DNA samples from all babies                                                                      
     born at birth giving the city a genetic database of all                                                                    
     of its citizens.  I wish that I were exaggerating here.                                                                    
                                                                                                                                
     The collection of DNA does have some good uses.  The ACLU                                                                  
     does not oppose any specific form of technology but                                                                        
     rather the government should have a very tight method                                                                      
     between the means and the ends.  Unlike sex offenders or                                                                   
     violent criminals who do leave DNA at the crime scene,                                                                     
     just to say that burglars might someday commit a violent                                                                   
     crime when they have never before committed a violent                                                                      
     crime is not a tight enough nexus between means and ends,                                                                  
     and simply does not justify collecting DNA, which as I                                                                     
     said before gives very personal information about anyone                                                                   
     related to the sample source.                                                                                              
                                                                                                                                
     I've given you a lot of information in a position paper                                                                    
     that I know you'll soon have a chance to review about                                                                      
     nationwide what we have seen in terms of DNA collection                                                                    
     and other types of information collection.  Three more                                                                     
     points I just want to make.                                                                                                
                                                                                                                                
     One is that again, unlike fingerprinting, you know DNA                                                                     
     has been touted as some sort of high-tech fingerprinting,                                                                  
     but in fact it provides a lot of information about a                                                                       
     person's ethnicity, their family relationships, their                                                                      
     family history and the likelihood of getting some 4,000                                                                    
     genetically conditioned diseases.  The folks that call my                                                                  
     office and write to my office every week about these                                                                       
     kinds of concerns say that this information belongs to                                                                     
     the individual; it's owned by the individual; it should                                                                    
     not be owned by the government again without some                                                                          
     compelling justification.                                                                                                  
                                                                                                                                
     The second point I want to make is that, to wrap up, is                                                                    
     that we've seen a long history in this country of                                                                          
     "function creep."  Function creep is a term that we've                                                                     
     created to describe where you're told that information                                                                     
     you surrendered to the government will only be used for                                                                    
     one function but ... that function kind of expands and                                                                     
     creeps and the argument by proponents is that, "Hey we've                                                                  
     already got the information, it's kind of related, what's                                                                  
     the harm."  For example, social security numbers were                                                                      
     initially intended only for use as an aid for tracking                                                                     
     social security payments, but are now universal                                                                            
     identifiers.  Another example, census records, a hot                                                                       
     topic today.  Census records created for general,                                                                          
     statistical purposes were actually used in 1942 to round                                                                   
     up Japanese-Americans and place them in internment camps                                                                   
     during World War II.                                                                                                       
                                                                                                                                
     And finally, there's something not in my position paper.                                                                   
     This bill just popped up on my radar screen recently and                                                                   
     there's another point that I would like to make that's                                                                     
     not in my paper.  But we do object to Section 8's                                                                          
     retroactivity.  The basis for our objection to making                                                                      
     this bill retroactive is that if somebody has done their                                                                   
     time and they now they've got their life together and                                                                      
     they have not been a recidivate of any crime and                                                                           
     certainly not a violent crime to have the government now                                                                   
     to go to them and ask for a DNA sample as though well we                                                                   
     know you've got your act together but we're still                                                                          
     suspicious.  Someday you might just commit a violent                                                                       
     crime.  We don't think the government can justify going                                                                    
     to that person.                                                                                                            
                                                                                                                                
     I appreciate again the opportunity to testify, and I need                                                                  
     to look into one point a little further.  I could find no                                                                  
     requirement either in this bill or the Alaska Statutes                                                                     
     that the DNA sample from which the genetic information is                                                                  
     taken must be destroyed.  If there is no such requirement                                                                  
     there certainly should be.  And I may have heard today                                                                     
     that samples of this are sitting around since 1995.  I                                                                     
     don't know.  I'd like to look into that a little bit                                                                       
     further, but I'm certainly open to any questions the                                                                       
     committee might have.  I thank you for your time.                                                                          
                                                                                                                                
Number 1232                                                                                                                     
                                                                                                                                
ROBERT BUTTCANE, Juvenile Probation Officer, Youth Corrections,                                                                 
Division of Family and Youth Services, Department of Health &                                                                   
Social Services, came before the committee to testify in favor of                                                               
HB 294.  He said he appreciates the concerns raised by the ACLU in                                                              
relation to an intrusion of the government, but this bill affects                                                               
those who are convicted of burglaries or an adjudicated delinquent                                                              
of burglary offenses.  These are very serious felony offenses.  He                                                              
noted that Burglary I is a class B felony.  It is not a small                                                                   
matter when somebody enters another person's home and commits a                                                                 
crime.  Statistically, there is a correlation between the                                                                       
commission of burglary and other serious acts against persons.  The                                                             
Administration is putting this bill forward in order to get "bad                                                                
guys" off the street.                                                                                                           
                                                                                                                                
MR. BUTTCANE noted that in FY [fiscal year] '99 there were                                                                      
approximately 50 delinquents adjudicated of burglary offenses out                                                               
of 7,484 referrals.  Even though 50 is not a big number, they                                                                   
caused considerable havoc to neighborhoods and communities, and                                                                 
they typically have a long history of offenses.  If the state can                                                               
identify them in future criminal activities through DNA sampling,                                                               
communities can feel safer and offenders can be held accountable to                                                             
conduct that a civilized community should expect.  The bill is                                                                  
really narrow in its focus of trying to identify those who pose a                                                               
serious concern to the safety of the public.  He encouraged the                                                                 
committee members to consider the bill favorably.  The concerns                                                                 
Representative Croft expressed in relation to Section 6, of the                                                                 
bill, can be worked out.  He suggested working with the Department                                                              
of Law in looking at how to balance the burden of removing DNA                                                                  
evidence after a conviction is either overturned or a person is                                                                 
found "not guilty."                                                                                                             
                                                                                                                                
Number 1401                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN expressed his appreciation of Mr. Buttcane's                                                               
suggestion in looking at the issue surrounding Section 6.  He                                                                   
agreed that there should be something in the bill indicating that                                                               
after a certain time or use, a DNA sample should be destroyed.                                                                  
                                                                                                                                
Number 1445                                                                                                                     
                                                                                                                                
CANDACE BROWER, Parole Board Officer, Parole Board, Division of                                                                 
Community Corrections, Department of Corrections, came before the                                                               
committee to testify.  She pointed out that the changes in the bill                                                             
allow for non-medical personnel to collect samples from convicted                                                               
felons.  This is a particular important part of the bill for the                                                                
Department of Corrections because in times of fiscal scarcity it                                                                
has become incumbent upon the department to collect the samples.                                                                
Generally, she explained, when someone has been convicted of a                                                                  
crime they are in a correctional institution, therefore, the                                                                    
medical staff of the Department of Corrections has been the ones                                                                
who predominately collect the samples, yet the medical staff is                                                                 
becoming scarcer and scarcer.  She believes that with the                                                                       
simplicity of gathering saliva samples and with appropriate                                                                     
training from medical personnel staff anyone could collect a sample                                                             
without problems.  She asked that the committee members consider                                                                
that part of the bill.                                                                                                          
                                                                                                                                
Number 1515                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN said he certainly concurs with the statements                                                              
made by Ms. Brower.  He announced that HB 294 would be held over.                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 1519                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Judiciary Standing Committee meeting was adjourned at 3:18 p.m.                                                                 

Document Name Date/Time Subjects