Legislature(1993 - 1994)
03/04/1994 01:15 PM House JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE JUDICIARY STANDING COMMITTEE
March 4, 1994
1:15 p.m.
MEMBERS PRESENT
Rep. Brian Porter, Chairman
Rep. Jeannette James, Vice-Chair
Rep. Pete Kott
Rep. Joe Green
Rep. Jim Nordlund
Rep. Cliff Davidson
MEMBERS ABSENT
Rep. Gail Phillips
COMMITTEE CALENDAR
SB 239: "An Act relating to evidence of financial
responsibility provided by persons who conduct oil
operations; and providing for an effective date."
CSSB 239 MOVED FROM COMMITTEE
HB 418: "An Act extending the termination date of the
Board of Parole; and providing for an effective
date."
MOVED FROM COMMITTEE
HB 299: "An Act relating to education programs on
consumption of alcohol and to revocation of a
driver's license for illegal consumption of
alcohol; and providing for an effective date."
CSHB 299 MOVED FROM COMMITTEE
HB 439: "An Act enacting the Uniform Fraudulent Transfer
Act."
NOT HEARD
WITNESS REGISTER
ANNETTE KREITZER, Committee Aide
Senate Oil and Gas Committee
Alaska State Legislature
State Capitol, Room 413
Juneau, AK 99801-1182
465-3711
Position Statement: Testified in support of CSSB 239
SEN. BERT SHARP
Alaska State Legislature
State Capitol, Room 514
Juneau, AK 99801-1182
465-3005
Position Statement: Testified in support of HB 239
RAY GILLESPIE, Lobbyist
Refined Fuel Dealers
9478 Riverbend Court
Juneau, AK 99801
Position Statement: Testified in support of HB 239
MIKE CONWAY, Director
Division of Spill Prevention and Response
Department of Environmental Conservation
410 Willoughby Ave., Suite 302
Juneau, AK 99801-1795
465-5250
Position Statement: Answered questions on SB 239
RENEE CHATMAN, Legislative Aide
Rep. Bettye Davis
Alaska State Legislature
State Capitol, Room 432
Juneau, AK 99801-1182
465-3875
Position Statement: Represented prime sponsor of HB 418
RICHARD COLLUM, Executive Director
Parole Board
Department of Corrections
P.O. Box 112000
Juneau, AK 99811
465-3304
Position Statement: Testified in support of HB 418
REP. CYNTHIA TOOHEY
Alaska State Legislature
State Capitol, Room 104
Juneau, AK 99801-1182
465-4919
Position Statement: Prime Sponsor of HB 299
JUANITA HENSLEY, Chief
Driver Services
Division of Motor Vehicles
Department of Public Safety
P.O. Box 20020
Juneau, AK 99802
465-4335
Position Statement: Testified in support of HB 299
MARGOT KNUTH, Assistant Attorney General
Criminal Division
Department of Law
Room 17, Court Bldg.
Juneau, AK 99811
465-3428
Position Statement: Answered questions on HB 299
DANIELLA LOPER, Staff Counsel
House Judiciary Committee
State Capitol, Room 122
Juneau, AK 99801-1182
465-4930
Position Statement: Addressed HB 299
PREVIOUS ACTION
BILL: SB 239
SHORT TITLE: OIL OPERATIONS:FINANCIAL RESPONSIBILITY
SPONSOR(S): SPECIAL COMMITTEE ON OIL AND GAS
JRN-DATE JRN-PG ACTION
01/10/94 2457 (S) READ THE FIRST TIME/REFERRAL(S)
01/10/94 2457 (S) O&G, JUD
01/25/94 (S) O&G AT 03:00 PM BUTROVICH
ROOM 205
01/25/94 (S) MINUTE(O&G)
02/04/94 2681 (S) O&G RPT CS 3DP 2NR
NEW TITLE
02/04/94 2681 (S) ZERO FISCAL NOTE TO SB &
CS (DEC)
02/02/94 (S) MINUTE(O&G)
02/04/94 (S) JUD AT 01:30 PM BELTZ RM 211
02/04/94 (S) MINUTE(JUD)
02/07/94 2718 (S) JUD RPT 2DP O&G(CS) 2NR
02/07/94 2719 (S) PREVIOUS ZERO FN (DEC)
02/08/94 (S) RLS AT 01:00 PM FAHRENKAMP
ROOM 203
02/09/94 (S) RLS AT 01:00 PM FAHRENKAMP
ROOM 203
02/09/94 (S) MINUTE(RLS)
02/11/94 2786 (S) 3 RLS TO CALENDAR 1NR 2/11/94
02/11/94 2799 (S) READ THE SECOND TIME
02/11/94 2800 (S) O&G CS ADOPTED Y14 N5 E1
02/11/94 2800 (S) ADVANCED TO THIRD READING UNAN
CONSENT
02/11/94 2800 (S) READ THE THIRD TIME CSSB
239(O&G)
02/11/94 2801 (S) PASSED Y14 N5 E1
02/11/94 2801 (S) EFFECTIVE DATE SAME AS PASSAGE
02/11/94 2801 (S) Zharoff NOTICE OF
RECONSIDERATION
02/14/94 2841 (S) RECON TAKEN UP - IN THIRD
READING
02/14/94 2841 (S) PASSED ON RECONSIDERATION Y18
N- E2
02/14/94 2841 (S) EFFECTIVE DATE SAME AS PASSAGE
02/14/94 2843 (S) TRANSMITTED TO (H)
02/15/94 2400 (H) READ THE FIRST TIME/REFERRAL(S)
02/15/94 2401 (H) JUDICIARY
03/04/94 (H) JUD AT 02:00 PM CAPITOL 120
BILL: HB 418
SHORT TITLE: EXTEND BOARD OF PAROLE
SPONSOR(S): REPRESENTATIVE(S) B.DAVIS
JRN-DATE JRN-PG ACTION
01/31/94 2205 (H) READ THE FIRST TIME/REFERRAL(S)
01/31/94 2205 (H) HES, JUDICIARY, FINANCE
02/17/94 (H) HES AT 03:00 PM CAPITOL 106
02/17/94 (H) MINUTE(HES)
02/18/94 2454 (H) HES RPT 5DP
02/18/94 2454 (H) DP: G.DAVIS,BUNDE,TOOHEY,
B.DAVIS,BRICE
02/18/94 2454 (H) -ZERO FISCAL NOTE (CORR) 2/18/94
03/04/94 (H) JUD AT 02:00 PM CAPITOL 120
BILL: HB 299
SHORT TITLE: DRIVER'S LIC REVOCATION;ALCOHOL/DRUGS
SPONSOR(S): REPRESENTATIVE(S) TOOHEY,Bunde,Mulder
JRN-DATE JRN-PG ACTION
05/06/93 1664 (H) READ THE FIRST TIME/REFERRAL(S)
05/06/93 1664 (H) HES, JUDICIARY, FINANCE
02/17/94 (H) HES AT 03:00 PM CAPITOL 106
02/17/94 (H) MINUTE(HES)
02/18/94 2450 (H) HES RPT CS(HES) NEW TITLE 6DP
02/18/94 2451 (H) DP: G.DAVIS, BUNDE, TOOHEY,
B.DAVIS
02/18/94 2451 (H) DP: NICHOLIA, BRICE
02/18/94 2451 (H) -FISCAL NOTE (DPS) 2/18/94
02/18/94 2451 (H) -ZERO FISCAL NOTE (LAW) 2/18/94
03/04/94 (H) JUD AT 02:00 PM CAPITOL 120
BILL: HB 439
SHORT TITLE: UNIFORM FRAUDULENT TRANSFER ACT
SPONSOR(S): JUDICIARY
JRN-DATE JRN-PG ACTION
02/04/94 2256 (H) READ THE FIRST TIME/REFERRAL(S)
02/04/94 2256 (H) LABOR & COMMERCE, JUDICIARY
03/01/94 (H) L&C AT 03:00 PM CAPITOL 17
03/01/94 (H) MINUTE(L&C)
03/02/94 2575 (H) L&C RPT 5DP
03/02/94 2575 (H) DP: PORTER,GREEN,WILLIAMS,
MULDER,HUDSON
03/02/94 2575 (H) -ZERO FISCAL NOTE (LAW) 3/2/94
03/04/94 (H) JUD AT 02:00 PM CAPITOL 120
ACTION NARRATIVE
TAPE 94-32, SIDE A
Number 000
The House Judiciary Standing Committee was called to order
at 2:10 p.m. on March 23, 1994. A quorum was present.
Chairman Porter announced that the committee would take up
CSSB 239 first, then HB 418, HB 299, and HB 334.
SB 239 - OIL OPERATIONS:FINANCIAL RESPONSIBILITY
Number 030
ANNETTE KREITZER, Legislative Aide to the Senate Special
Committee on Oil and Gas, Prime Sponsor of CSSB 239, gave a
brief history of SB 239 and read from a sectional analysis,
which follows:
Section 1.
Subsection (b)(1) The OFFSHORE exploration or
production financial responsibility requirement of $50
million is UNAFFECTED by this amendment.
Subsection (b)(2) The amended language clarifies that
financial responsibility should be greater for an onshore
facility producing more than 10,000 barrels per day of oil,
than for an onshore facility producing 2,5000 barrels or
less per day.
Subsection (b)(3) Limits the financial responsibility
for an onshore exploration facility to $1,000,000.
Section 2.
Chapter 102, SLA 1992 gives the Department of
Environmental Conservation the authority to waive its
requirement that financial responsibility instruments
provide for a direct action and appointment of an agent for
service of process. The direct action provision is NOT
AVAILABLE in marine pollution insurance, and has not been
available since about 1989.
Section 6 of Ch. 102, SLA 1992 repealed this temporary
law effective June 1, 1994. Rather than grant another two-
year exemption, the Committee Substitute repeals the
repealer and allows the DEC to grant waivers until direct
action again becomes available.
Section 3.
Makes certain there is no gap between the effective
date and the date of the repeal of the former temporary
waiver.
Section 4.
Immediate effective date.
In summary, MS. KREITZER said, SB 239 repeals the temporary
provision to waive mandatory insurance requirements.
Instead, the waiver would be established in statute. In
addition, Section 1 would reduce the mandatory liability
limits to a more reasonably available level.
Number 158
SEN. BERT SHARP, member of the Senate Special Committee on
Oil and Gas, said the current insurance requirements were
prohibitively high for onshore exploration. He said SB 239
would reduce the mandatory liability limits to a more
reasonable level. He read the sponsor statement for CSSB
239(O&G), which follows:
The Oil and Gas CS for SB 239 recognizes that existing
statutes mandates levels of proof of financial
responsibility liability that are so unrealistic that
coverage is not available and have has been.
This is true as much for AS 46.04.040(b) onshore oil and gas
exploration activity as it is for moving refined products
along the waterways of Alaska.
Section 1 only reduces the mandatory liability limits to
more reasonably available levels. The reduced levels are
still approximately 10 times higher than other oil producing
states.
The 20 million dollar requirement for onshore production
facilities remains intact for facilities producing over
10,000 barrels of oil per day. Requirements are stair
stepped down from over 10,000 B/P/D/, to 5,000 - 10,000,
2,500 - 5,000 and 2,500 and under. It seems to make sense
that producers handling less daily volumes would create less
of a spill potential.
This bill provides for reductions for onshore oil and gas
exploration activities that in nine out of 10 cases, never
involve an exposure to on site crude oil. If the activity
is successful, the safety devices and their operations
required are highly developed and effective.
There has never been an onshore crude spill in Alaska caused
by an exploration rig.
This bill is an attempt to open the door of opportunity a
little bit. This would create a more realistic environment
for small independent exploration firms to operate in
Alaska.
Let me point out that AS 46.04.040(b) is not the only proof
of financial liability required of onshore exploration.
It's only one of many.
The Division of Oil and Gas requires the posting of a bond
in paragraph 23 of their lease contract as well as satisfy
requirements in 11 AAC 83.160.
The Division of Oil and Gas can also require supplemental
bonding if it believes the nature of the surface and its
uses or the degree of risk justifies an increased bond.
The Alaska Oil and Gas Conservation Commission also requires
a lessee to post a separate bond of at least $100,000
dollars prior to any drilling activity.
With many of the major oil companies now redirecting their
exploration efforts overseas, it would only seem prudent to
remove impossible liability requirements presently required
which virtually shuts out independent exploration and
producers in our state.
I believe this legislation is a reasonable move to correct
this situation.
This bill, along with a balanced "exploration licensing"
bill, may well stimulate renewed exploration activity in our
state, thereby creating not only new jobs for Alaskans, but
new revenue sources to the state treasury.
I ask for your support of this bill.
Number 340
There was general discussion of the resolution passed in
both houses of congress regarding offshore exploration,
drilling, and transportation of oil.
Number 380
RAY GILLESPIE, Representing the Trade Association - Refined
Fuel Distributors, testified in support of SB 239. He noted
the difficulty for companies to provide the mandatory
insurance.
Number 436
MIKE CONWAY, Director, Division of Spill Prevention and
Response, Department of Environmental Conservation, made
himself available to answer any questions the committee had
regarding SB 239.
Number 468
REP. NORDLUND asked what would happen in the event there is
a spill and the cost of cleanup is higher than the company's
insurance coverage.
Number 470
MR. CONWAY responded by saying the department would ensure
the company had up to one million dollars of resources to
cover costs. In the event that the damage caused by the
company exceeded their means to pay, the state would fund a
cleanup from the 470 Fund.
REP. KOTT moved CSSB 239 with individual recommendations and
zero fiscal note.
REP. DAVIDSON objected. A roll call vote was taken. Voting
yes: Reps. James, Kott, Green, Nordlund and Porter. Voting
no: Rep. Davidson. CSSB 239 passed from committee.
HB 418 - EXTEND BOARD OF PAROLE
Number 510
CHAIRMAN PORTER announced that HB 418 would be taken up
next.
Number 515
RENEE CHATMAN, Legislative Aide to Rep. Bettye Davis, Prime
Sponsor of HB 418, spoke on behalf of Rep. Davis and read a
sponsor statement. In summary, the bill would simply extend
the Board of Parole. She noted that there was a zero fiscal
note. The sponsor statement follows:
HB 418 would extend the Board of Parole for the customary
four-year period un A.S. 44.66.010(c). Under current law,
and without passage of this legislation, the Board is
scheduled to sunset on June 30, 1994.
The State Board of Parole was created in 1960 and has been
an essential component of Alaska's criminal justice system.
There are currently 70 felons on parole supervision. EAch
year, about 400 prisoners are eligible to be released to
discretionary parole supervision for a portion of their
sentence. In addition, 500 prisoners are released to
mandatory parole supervision for a period equal to one-third
of their sentence.
Expiration of the Parole Board will not alter the state's
responsibility under Title 33, Chapter 16, which provides
for prisoners to be eligible for and supervised on
discretionary and mandatory parole. The State will almost
certainly be a party to costly litigation to determine the
legal status of prisoners, parolees and victims.
The Board of Parole has been an effective vehicle in
administering the parole process. I urge your support of HB
418.
Number 547
RICHARD COLUMN, Executive Director, Parole Board, Department
of Corrections, testified in support of HB 418. He made
himself available for questions.
Number 564
REP. JAMES motioned to move HB 418 from committee with
individual recommendations and a zero fiscal note.
With no objection, HB 418 was moved from committee.
HB 299 - DRIVER'S LIC REVOCATION;ALCOHOL/DRUGS
CSHB 299(JUD): "An Act relating to revocation of a driver's
license for illegal possession or use of a controlled
substance or illegal possession or consumption of alcohol;
to fees for reinstatement of a driver's license; and
providing for an effective date."
Number 575
CHAIRMAN PORTER announced that HB 299 would be heard next
and introduced Rep. Toohey.
Number 580
REP. CYNTHIA TOOHEY, Prime Sponsor of HB 299, read from a
sponsor statement. She said the intent of HB 299 is to
deter teens from engaging in the use and abuse of a
controlled substance. The bill would provide the Department
of Public Safety with a tool to help discourage youth from
starting the dangerous and often fatal association of
controlled substances and alcohol with driving. She said an
individual who is at least 14, but not yet 21, who has
illegally consumed or possessed alcohol or a controlled
substance, would have their license revoked. If that
individual did not have a license at that time, the
privilege to attain a driver's license would be temporarily
withheld.
Number 626
REP. GREEN motioned to adopt CSHB 299. Without objection
CSHB 299 was adopted.
Number 630
REP. DAVIDSON asked Rep. Toohey how the teenagers would know
the consequences of their actions.
Number 668
JUANITA HENSLEY, Division of Motor Vehicles, Department of
Public Safety, responded to Rep. Davidson's concerns by
stating the division of Alaska State Troopers has a
community service bureau. That bureau would provide
information to the public of the provisions outlined in the
bill.
Number 687
REP. DAVIDSON said he would like to have something in the
testing booklet for when an individual is taking the permit
test that pertains to the provision of HB 299.
Number 696
MS. HENSLEY said that was an option the department could
provide for.
Number 702
REP. NORDLUND asked how long the revocation period was.
MS. HENSLEY said the first offense would be ninety days, the
second offense would be one year.
Number 720
REP. NORDLUND asked the chairman to explain the differences
in the CSHB 299 and the original bill.
MS. HENSLEY responded by saying that page 3 of the committee
substitute would allow for the individual to complete an
alcohol education, rehabilitation examination. She said a
further provision was added to allow a sworn report to be
submitted at a hearing rather than the peace officer being
required to be present.
Number 725
CHAIRMAN PORTER clarified the statement Ms. Hensley made
regarding the completion of an alcohol rehabilitation
program. He noted that not all individuals would have to
complete this program, only those who have been screened and
referred for this type of program.
Number 757
REP. KOTT asked for clarification of the intent of the bill.
Number 762
MS. HENSLEY said this bill is intended as a deterrent.
Number 780
CHAIRMAN PORTER asked about the provision on page 5, lines
21 and 22, regarding testimony at hearing not being
admissable in criminal trial. He asked if this was new.
Number 790
MARGOT KNUTH, Assistant Attorney General, Criminal Division,
Department of Law, said it was not new and that it was
modeled after the DWI statute.
Number 801
DANIELLA LOPER, Staff Counsel, House Judiciary Committee,
asked about the issuance of a temporary license in the case
of an appeal.
Number 813
MS. HENSLEY said a temporary license would be issued pending
the outcome of the case. She said it is the same as in the
case of a DWI appeal. In conclusion, she said the temporary
driver's license is issued for seven days.
Number 829
REP. GREEN asked if there were any statistics of a person
who had been granted a temporary license who had been
arrested for the same offense, during the time of which they
have their temporary license.
Number 828
MS. HENSLEY said she had no statistics on that, but had not
heard of that happening very often.
Number 855
REP. KOTT asked about federal grants that would provide
funds for the educational pamphlets regarding the provisions
outlined in the bill.
MS. HENSLEY noted that at this time congress had not passed
the legislation that would provide the grants. In addition,
Alaska has qualified for some grant money because of the
passage of some legislation last year.
Number 010
There was general discussion about the fiscal note and it
was agreed that the program would be funded by program
receipts.
Number 137
CHAIRMAN PORTER asked if there was further discussion
regarding the adoption of CSHB 299. Being none, CSHB 299
was adopted.
CHAIRMAN PORTER noted there were two amendments before the
committee. He addressed Amendment 1, which would add a
provision that an individual who was in violation of this
law and was directed to attend a treatment facility would
have to pay that cost.
Number 162
REP. JAMES moved Amendment 1. With no objection, Amendment
1 was adopted.
Number 165
CHAIRMAN PORTER addressed Amendment 2. He said Amendment 2
would raise the reinstatement fee from $100.00 to $250.00.
Number 196
REP. GREEN said he supported Amendment 2.
Number 200
CHAIRMAN PORTER noted that both the sponsor and the
department supported the amendments.
Number 205
There was general discussion regarding the $250.00 fee being
high.
MS. KNUTH commented that $250.00 was a standard amount.
Number 220
REP. JAMES aired a concern that the relationship between a
drinking violation and a driver's license revocation was
inconsistent.
Number 381
REP. KOTT pointed out that perhaps the fine was too high and
could not support Amendment 2.
Number 417
MS. HENSLEY pointed out that these young adults pay money
for drugs or alcohol and often pay more than the cost of the
proposed fine.
REP. TOOHEY noted that if the fine deters one child from
drinking and driving, it was worth it.
Number 504
REP. JAMES maintained her concern.
Number 536
CHAIRMAN PORTER asked if there was any further discussion on
Amendment 2.
REP. KOTT maintained his objection. A roll call vote was
taken. Voting yes: Reps. Green, Nordlund, James, Porter.
Voting no: Rep. Kott. Amendment 2 passed.
Number 568
REP. GREEN moved CSHB 299 as amended, with individual
recommendations and attached fiscal note. With no
objection, it was so moved; CSHB 299 was moved out of
committee.
Number 578
CHAIRMAN PORTER said the committee would attach a letter of
intent with regard to the expenditure of the $250.00
reinstatement fee.
Number 581
REP. KOTT reiterated his concern about a fine and suggested
community service instead of a higher reinstatement fee.
With no objection, CSHB 299 was moved from committee.
The House Judiciary Committee adjourned at 3:30 p.m.
BILL(S) NOT HEARD
HB 439 - UNIFORM FRAUDULENT TRANSFER ACT
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