Legislature(1993 - 1994)

03/19/1994 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                         March 19, 1994                                        
                            8:00 a.m.                                          
  MEMBERS PRESENT                                                              
  Representative Al Vezey, Chairman                                            
  Representative Gary Davis                                                    
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  Representative Fran Ulmer                                                    
  MEMBERS ABSENT                                                               
  Representative Pete Kott, Vice Chairman                                      
  Representative Bettye Davis                                                  
  COMMITTEE CALENDAR                                                           
  FRED DYSON          Confirmation to the State Human Rights                   
                      MOVED OUT OF COMMITTEE FOR JOINT SESSION                 
  DAVID H. CALL       Confirmation to the Personnel Board                      
                      MOVED OUT OF COMMITTEE FOR JOINT SESSION                 
  JULIE BENSON        Confirmation to the Public Offices                       
                      MOVED OUT OF COMMITTEE FOR JOINT SESSION                 
  MERLE JANTZ         Confirmation to the State Board of                       
                      Registration for Architects, Engineers                   
                      and Land Surveyors.                                      
                      MOVED OUT OF COMMITTEE FOR JOINT SESSION                 
  MICHAEL TAURIAINEN  Confirmation to the State Board of                       
                      Registration for Architects, Engineers                   
                      and Land Surveyors.                                      
                      MOVED OUT OF COMMITTEE FOR JOINT SESSION                 
  SB 135:             "An Act making a special appropriation                   
                      to the Department of Transportation and                  
                      Public Facilities to determine the cost                  
                      of acquiring real property within the                    
                      right-of-way of the proposed extension                   
                      of the Alaska Railroad from Eielson Air                  
                      Force Base to the Alaska-Canada border;                  
                      and providing for an effective date."                    
                      PASSED FROM COMMITTEE                                    
  HB 347:             "An Act relating to long-term plans of                   
                      certain state agencies and                               
                      recommendations regarding elimination of                 
                      duplication in state agency functions."                  
                      PASSED FROM COMMITTEE AS CSHB 347(HSTA)                  
  *HB 389:            "An Act relating to criminal mischief."                  
                      HELD IN COMMITTEE                                        
  WITNESS REGISTER                                                             
  FRED J. DYSON                                                                
  1223 Lugene Lane                                                             
  Eagle River, AK 99577                                                        
  Phone:  694-3744                                                             
  POSITION STATEMENT:  Gave background information                             
  DAVID H. CALL                                                                
  711 Gaffney Rd.                                                              
  Fairbanks, AK  99701                                                         
  Phone:  452-2211                                                             
  POSITION STATEMENT:  Gave background information                             
  JULIE BENSON                                                                 
  P.O. Box 75296                                                               
  Fairbanks, AK  99707                                                         
  Phone:  479-7655                                                             
  POSITION STATEMENT:  Gave background information                             
  MERLE JANTZ                                                                  
  1077 Vincent Ct.                                                             
  North Pole, AK  99705                                                        
  Phone:  451-9353                                                             
  POSITION STATEMENT:  Gave background information                             
  MICHAEL J. TAURIAINEN                                                        
  Box 937                                                                      
  Soldotna, AK  99669                                                          
  Phone:  262-4489                                                             
  POSITION STATEMENT:  Gave background information                             
  DIANE JENKINS                                                                
  P.O. Box 149                                                                 
  Tok, AK  99780                                                               
  Phone:  883-5887                                                             
  POSITION STATEMENT:  Inquired about HB 347                                   
  TERESA SAGER-STANCLIFF, Staff                                                
  Senator Mike Miller                                                          
  Alaska State Capitol, Room 423                                               
  Juneau, AK  99811-0460                                                       
  Phone:  465-4976                                                             
  POSITION STATEMENT:  Addressed CSSB 135 for Senator Mike                     
                       Miller, Sponsor                                         
  REPRESENTATIVE SEAN PARNELL                                                  
  Alaska State Legislature                                                     
  Alaska State Capitol, Room 513                                               
  Juneau, AK  99811-0460                                                       
  Phone:  465-2995                                                             
  POSITION STATEMENT:  Prime sponsor of HB 347                                 
  JACK FARGNOLI, Senior Policy Analyst                                         
  Director's Office                                                            
  Office of Management and Budget                                              
  P.O. Box 110020                                                              
  Juneau, AK  99811-0020                                                       
  Phone:  465-3568                                                             
  POSITION STATEMENT:  Supported HB 347                                        
  DENNIS POSHARD, Staff                                                        
  Representative Jim Nordlund                                                  
  Alaska State Capitol, Room 426                                               
  Juneau, AK  99811-0460                                                       
  Phone:  465-4968                                                             
  POSITION STATEMENT:  Addressed HB 389 for Representative                     
                       Nordlund, Sponsor                                       
  PREVIOUS ACTION                                                              
  BILL:  SB 135                                                                
  SPONSOR(S):MILLER,Sharp,Frank,Phillips; REPRESENTATIVE(S)                    
  JRN-DATE     JRN-PG               ACTION                                     
  02/26/93       504    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/26/93       504    (S)   TRANSPORTATION, FINANCE                          
  03/16/93              (S)   TRA AT 03:30 PM BELTZ ROOM 211                   
  03/16/93              (S)   MINUTE(TRA)                                      
  03/18/93       846    (S)   TRA RPT  4DP 1NR                                 
  03/18/93       846    (S)   FISCAL NOTE (DOT)                                
  04/15/93              (S)   FIN AT 06:45 PM SENATE FIN 518                   
  01/24/94      2580    (S)   FIN RPT CS 4DP 1NR SAME TITLE                    
  01/24/94              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  01/24/94              (S)   MINUTE(FIN)                                      
  01/26/94              (S)   RLS AT 11:30 AM FAHRENKAMP                       
                              ROOM 203                                         
  01/26/94              (S)   MINUTE(RLS)                                      
  01/28/94      2615    (S)   RULES RPT 1 CAL  2 CAL/NR                        
  01/28/94      2623    (S)   READ THE SECOND TIME                             
  01/28/94      2623    (S)   FIN CS ADOPTED UNAN CONSENT                      
  01/28/94      2623    (S)   ADVANCED TO THIRD READING                        
                              UNAN CONSENT                                     
  01/28/94      2623    (S)   READ THE THIRD TIME                              
                              CSSB 135(FIN)                                    
  01/28/94      2623    (S)   PASSED Y13 N3 E4                                 
  01/28/94      2624    (S)   EFFECTIVE DATE PASSED                            
                              Y16 N- E4                                        
  01/28/94      2624    (S)   Adams  NOTICE OF                                 
  02/01/94      2643    (S)   RECONSIDERATION NOT TAKEN UP                     
  02/01/94      2643    (S)   TRANSMITTED TO (H)                               
  02/02/94      2213    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/02/94      2213    (H)   TRANSPORTATION, STATE AFFAIRS,                   
  02/28/94      2557    (H)   TRA REFERRAL WAIVED                              
  02/28/94      2558    (H)   CROSS SPONSOR(S):  JAMES                         
  03/12/94              (H)   MINUTE(ECO)                                      
  03/19/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 347                                                                
  SHORT TITLE: STATE LONG-TERM PLANNING                                        
  SPONSOR(S): REPRESENTATIVE(S)PARNELL,Hanley,Therriault,                      
  JRN-DATE     JRN-PG               ACTION                                     
  01/07/94      2018    (H)   PREFILE RELEASED                                 
  01/10/94      2018    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/10/94      2019    (H)   STATE AFFAIRS, FINANCE                           
  01/12/94      2043    (H)   COSPONSOR(S): THERRIAULT                         
  01/13/94      2056    (H)   COSPONSOR(S):  B. DAVIS                          
  01/14/94      2084    (H)   COSPONSOR(S):  JAMES                             
  03/08/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/08/94              (H)   MINUTE(STA)                                      
  03/10/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/10/94              (H)   MINUTE(STA)                                      
  03/19/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 389                                                                
  SPONSOR(S): REPRESENTATIVE(S) NORDLUND,Finkelstein                           
  JRN-DATE     JRN-PG               ACTION                                     
  01/21/94      2124    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/21/94      2124    (H)   STATE AFFAIRS,JUDICIARY,FINANCE                  
  03/10/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/10/94              (H)   MINUTE(STA)                                      
  03/19/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  ACTION NARRATIVE                                                             
  TAPE 94-34, SIDE A                                                           
  Number 000                                                                   
  CHAIRMAN AL VEZEY called the meeting to order at 8:02 a.m.                   
  Members present were REPRESENTATIVES SANDERS, OLBERG and                     
  CHAIRMAN VEZEY moved to the Eagle River offnet                               
  teleconference site and opened discussion on the                             
  confirmation of FRED DYSON to the State Human Rights                         
  Number 032                                                                   
  FRED DYSON introduced himself.                                               
  (REPRESENTATIVE G. DAVIS joined the meeting at 8:03 a.m.  A                  
  quorum was present.)                                                         
  MR. DYSON stated he has always been against discrimination.                  
  The Human Rights Commission deals mostly with discrimination                 
  housing and employment.  He stated he has been in Alaska                     
  since 1964, living mostly in Anchorage and in Fairbanks for                  
  three years.  He has three children and works in commercial                  
  fish.  He worked in the oil industry for 13 years and has                    
  been in business for himself for the last 10 years.  He                      
  served on the Anchorage Assembly for six years and has been                  
  involved with other various community projects.                              
  REPRESENTATIVE GARY DAVIS moved that the committee has                       
  reviewed the qualifications of FRED DYSON and recommends the                 
  appointment be forwarded to a joint session for                              
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS                                
  MOTION PASSED                                                                
  CHAIRMAN VEZEY moved to the Fairbanks teleconference site.                   
  He opened discussion on the confirmation of DAVID H. CALL to                 
  the Personnel Board.                                                         
  Number 150                                                                   
  DAVID H. CALL introduced himself.                                            
  Number 160                                                                   
  REPRESENTATIVE FRAN ULMER asked if MR. CALL had requested                    
  appointment to the Personnel Board.                                          
  MR. CALL answered yes.                                                       
  Number 171                                                                   
  REPRESENTATIVE ULMER inquired why he wanted to serve on the                  
  Personnel Board.                                                             
  MR. CALL responded he wanted to engage in public service and                 
  the Personnel Board had the ability to do things of                          
  importance.  The board was not a figurehead group.  He                       
  stated he has actually served the board for about a year and                 
  he had the training to be a useful member.                                   
  Number 202                                                                   
  REPRESENTATIVE HARLEY OLBERG moved that the committee had                    
  reviewed the qualifications of DAVID H. CALL and recommends                  
  the appointment be forwarded to a joint session for                          
  Number 204                                                                   
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS                                
  MOTION PASSED                                                                
  CHAIRMAN VEZEY opened discussion on the confirmation of                      
  JULIE BENSON to the Public Offices Commission.                               
  Number 243                                                                   
  JULIE BENSON, from Fairbanks teleconference site, introduced                 
  Number 247                                                                   
  REPRESENTATIVE ULMER asked if MS. BENSON had ever worked on                  
  any campaigns.                                                               
  MS. BENSON stated she had not.                                               
  Number 250                                                                   
  REPRESENTATIVE ULMER asked if MS. BENSON was familiar with                   
  the Alaska Public Offices Commission (APOC) laws.                            
  MS. BENSON said she was.                                                     
  Number 253                                                                   
  REPRESENTATIVE ULMER commented that APOC laws were extremely                 
  complicated and would take a lot of time to understand them.                 
  She asked if MS. BENSON was currently employed.                              
  MS. BENSON replied she was not.                                              
  Number 256                                                                   
  REPRESENTATIVE ULMER asked if MS. BENSON could be a full-                    
  time volunteer and if she had already been serving the APOC.                 
  MS. BENSON responded yes she would serve as a full-time                      
  volunteer and she has been serving the APOC since April                      
  Number 260                                                                   
  REPRESENTATIVE ULMER asked if MS. BENSON had any opinions on                 
  how the APOC ought to be changed.                                            
  Number 264                                                                   
  MS. BENSON answered that APOC just needs more money.                         
  Number 270                                                                   
  REPRESENTATIVE ULMER inquired if the APOC needed more money                  
  because they do not have adequate staff to do the job.                       
  Number 274                                                                   
  MS. BENSON affirmed REPRESENTATIVE ULMER.  She stated they                   
  need a "xerox clerk" because, as it is now, staff has to                     
  stop whatever they are doing to do the xeroxing.  The public                 
  does not have instant access to information because they                     
  have to wait for a staff person to become available to do                    
  the xeroxing.  She stated they have been trying to obtain                    
  extra funds to hire a person for this job.                                   
  Number 285                                                                   
  CHAIRMAN VEZEY questioned if MS. BENSON had sat in on an                     
  APOC meeting yet and who she would be replacing on the                       
  MS. BENSON answered she had sat in on a meeting and she                      
  would be replacing Winston Burbank.                                          
  Number 291                                                                   
  REPRESENTATIVE G. DAVIS moved that the committee had                         
  reviewed the qualifications of JULIE BENSON and recommends                   
  that the appointment be forwarded to a joint session.                        
  Number 295                                                                   
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS                                
  MOTION PASSED                                                                
  CHAIRMAN VEZEY opened discussion on the confirmation of                      
  MERLE JANTZ to the State Board of Registration for                           
  Architects, Engineers and Land Surveyors.                                    
  Number 311                                                                   
  MERLE JANTZ introduced himself.  He stated he appreciated                    
  the opportunity to continue his public service in working                    
  with the Architects, Engineers and Land Surveyors Board.                     
  Number 319                                                                   
  REPRESENTATIVE G. DAVIS referred to the testing moneys for                   
  physical education exams that were "tied up," and asked if                   
  they were straightened out now.                                              
  MR. JANTZ answered they were informed the money situation                    
  had been resolved during their February 14-15 meeting in                     
  Number 329                                                                   
  CHAIRMAN VEZEY inquired how MR. JANTZ planned on finding                     
  time to do the extra work.                                                   
  Number 331                                                                   
  MR. JANTZ responded the board is a commitment.  He has been                  
  on the board since July 1993 and he appropriates his time                    
  for other projects wisely with evening and long distance                     
  work.  He often works early in the morning and weekends to                   
  spend the time he needs to with the board.                                   
  Number 341                                                                   
  CHAIRMAN VEZEY stated he appreciated his commitment.  He                     
  moved that the committee has reviewed the qualifications of                  
  MERLE JANTZ and recommends that the appointment be forwarded                 
  to a joint session for consideration.  He asked the                          
  committee secretary to call the roll.                                        
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS.                               
  MOTION PASSED                                                                
  CHAIRMAN VEZEY opened discussion on the confirmation of                      
  MICHAEL J. TAURIAINEN to the State Board for Architects,                     
  Engineers and Land Surveyors.                                                
  Number 358                                                                   
  MICHAEL TAURIAINEN introduced himself.  He stated with this                  
  confirmation, it would be his second term on the board.  He                  
  has been serving the board for four years and has been a                     
  registered civil engineer in Alaska since 1974.                              
  Number 366                                                                   
  REPRESENTATIVE ULMER inquired of how well the board is                       
  working.  Is the statute structured appropriately to keep                    
  their responsibilities reasonable in time commitment.  Did                   
  they have adequate resources for their job specification.                    
  Number 372                                                                   
  MR. TAURIAINEN answered the time commitment is significant,                  
  but not overwhelming.  Their board examiner is overwhelmed,                  
  however, with the number of applicants they have and is too                  
  busy doing other duties to help her.  He stated they a                       
  reallocation of dollars to help her do her work.                             
  Number 389                                                                   
  REPRESENTATIVE ULMER asked if the board was one which                        
  generates through fees, sufficient program receipts to not                   
  only hire a person to work for them, but also additional                     
  staff if the legislature grants that ability.                                
  Number 391                                                                   
  MR. TAURIAINEN responded the board believes it is.  He                       
  stated the board has discussed restructuring itself to be                    
  either independent or quasi-independent of the state.  He                    
  noted changes in both the Oregon and Delaware boards.                        
  Number 400                                                                   
  REPRESENTATIVE ULMER inquired if the board was actively                      
  considering "taking one step away from the state," in order                  
  to have the fees adequately cover the work to be done.                       
  Number 403                                                                   
  MR. TAURIAINEN answered the board is not actively                            
  considering it, but it remains on their agenda to consider                   
  it further.                                                                  
  Number 413                                                                   
  REPRESENTATIVE G. DAVIS commented he has known MR.                           
  TAURIAINEN for several years and he has worked for him and                   
  with him in the past.  He noted when the board had its                       
  reception in Juneau it was quite professional.                               
  REPRESENTATIVE G. DAVIS moved that the committee had                         
  reviewed the qualifications of MICHAEL J. TAURIAINEN and                     
  recommends that the appointment be forwarded to a joint                      
  session for consideration.                                                   
  Number 426                                                                   
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS.                               
  MOTION PASSED                                                                
  CHAIRMAN VEZEY opened CSSB 135, sponsored by SENATOR MIKE                    
  MILLER, for discussion.  Seeing no one present from the                      
  sponsor's office, he moved to the Tok teleconference site                    
  for testimony.                                                               
  COMMERCE, asked questions about CSSB 135.  She stated Tok                    
  did have an interest in CSSB 135.  She asked if the studies                  
  that had been done several years ago were being reactivated.                 
  CHAIRMAN VEZEY answered no, CSSB 135 only provides a small                   
  appropriation to the Department of Transportation and Public                 
  Facilities, to reevaluate the cost of acquiring the right-                   
  of-ways that have already been identified.  He noted the                     
  study had not been updated in 20-25 years.                                   
  Number 472                                                                   
  MS. JENKINS asked if there was any chance the old pipeline                   
  corridor or canal would be used.                                             
  CHAIRMAN VEZEY stated the study was not before him and CSSB
  135 was merely an appropriation bill to evaluate the right-                  
  of-way.  He did not believe the right-of-way in CSSB 135 was                 
  the same as the canal right-of-way.                                          
  Number 483                                                                   
  REPRESENTATIVE ULMER noted the committee did have access to                  
  the right-of-way information if Tok would like to see it.                    
  She mentioned the two listed in her packet entitled "The                     
  Alaska Railroad Extension Route Selection Report," from 1979                 
  and a follow up report which includes an environmental                       
  assessment of the route, from 1982.  She stated the title                    
  work done on the report was $66,000.                                         
  MS. JENKINS responded they would like a copy.                                
  Number 495                                                                   
  CHAIRMAN VEZEY returned to Juneau for testimony.                             
  sponsor statement for CSSB 135.  She stated CSSB 135 has a                   
  similar companion bill in the House, HB 484.  She reiterated                 
  CSSB 135 would provide a $10,000 appropriation for an update                 
  of the original study done in 1979.  The study was done on                   
  route selection for an extension of the railroad from                        
  Eielson to the Canadian border.  The study was updated in                    
  1982 and since then, there have been land transfers and                      
  acquisition in the area of the route.  The appropriation in                  
  CSSB 135 would update the title work so a new cost estimate                  
  of acquiring the property for the right-of-way could be                      
  Number 514                                                                   
  REPRESENTATIVE G. DAVIS moved to pass CSSB 135 from                          
  committee with individual recommendations and attached                       
  fiscal note.                                                                 
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS.                               
  MOTION PASSED                                                                
  HB 347 - STATE LONG-TERM PLANNING                                            
  347.  He mentioned the problems HB 347 was meant to address:                 
  1) the general distrust in government; 2) the lack of an                     
  objective way for the legislature or the executive branch to                 
  make budget choices; 3) the focus on programs, rather than                   
  the people being served; 4) the lack of accountability in                    
  the spending of the budget.  He stated when the departments                  
  testify about their job requirements and yearly results it                   
  has not been very useful, because they are not focusing on                   
  what the customer is receiving, or the end product.  For                     
  example, the Department of Public Safety should measure how                  
  many people were killed on the Seward highway, rather than                   
  how many roads they covered and how many less enforcement                    
  officers they have.  He felt the departments should be                       
  measured on more specific terms.                                             
  REPRESENTATIVE PARNELL commented during his initial days of                  
  working with the budget last year, he asked each department                  
  for their long range plans over the next 10-20 years.  He                    
  noted some departments had a relatively good "big picture                    
  view" of where they were headed, some wanted more money to                   
  develop a long range plan, and none had any objective set of                 
  measures for the legislature to use in evaluating their                      
  budget requests and their progress over time.  He felt HB
  347 is intended to offer this structure.  Planning would                     
  establish statewide direction in key policy areas and help                   
  the state move away from "prices policy decision making."                    
  State resources could be aligned in a rational manner.  HB
  347 could help establish the priorities needed to be set for                 
  budgeting.  He also mentioned with the present declining                     
  revenues, planning should help allocate resources in a way                   
  that is important to Alaskans.                                               
  REPRESENTATIVE PARNELL stated "performance based budgeting"                  
  is not a new procedure.  He noted Texas and Oregon as                        
  example states which presently use it.  HB 347 is modeled                    
  after Texas legislation because he felt their financial                      
  situation was most similar to Alaska.  He noted the main                     
  difference between Oregon and Texas legislation was that                     
  Oregon was public driven, while Texas was executive driven.                  
  Even with the different angles, the focus was still on the                   
  REPRESENTATIVE PARNELL outlined HB 347.  At the beginning of                 
  each governor's term, the governor will develop statewide                    
  goals to issue on May 1 of each odd numbered year.  He noted                 
  in the CSHB 347, version O work draft before the committee                   
  there was a discrepancy on page 1, line 8, whereby it should                 
  state "odd-numbered" instead of "even-numbered."  This would                 
  need to be corrected.  He stated the two year cycle would                    
  start and the Office of Management & Budget (OMB) would                      
  issue each principle department about the state's economy                    
  and population.  Between May 1 and July 1, those departments                 
  would develop their separate goals and objectives.  Between                  
  July 1 and October 1, the OMB would review and approve each                  
  agencies goal, so these performance measures could be                        
  included in the agency's budget submitted to OMB.  By Dec                    
  15, OMB and the governor would have compiled the plans into                  
  one strategic long range plan, and would submit it as part                   
  of the budget process.                                                       
  REPRESENTATIVE PARNELL commented long-term planning is meant                 
  to be an ongoing process as it will be reviewed every two                    
  years and updated.  He credited OMB for having been involved                 
  in "performance based budgeting" in the past.                                
  Number 629                                                                   
  CHAIRMAN VEZEY asked if REPRESENTATIVE PARNELL had a flow                    
  REPRESENTATIVE PARNELL stated a flow chart should be in the                  
  Number 639                                                                   
  CHAIRMAN VEZEY examined the flow chart and reiterated                        
  REPRESENTATIVE PARNELL's outline of the procedure in HB 347.                 
  He questioned if the process occurs in one calendar year.                    
  REPRESENTATIVE PARNELL affirmed CHAIRMAN VEZEY.                              
  Number 648                                                                   
  CHAIRMAN VEZEY asked what happened in the even-numbered                      
  REPRESENTATIVE PARNELL responded the OMB was still working                   
  on the specifics; however, they could either budget using                    
  the same performance measures or they could revise and                       
  update those performance measures.  Once HB 347 is in place,                 
  the agencies basically have the even years "off" in not                      
  having any active work.                                                      
  Number 656                                                                   
  indication that when he had asked for the goals of the                       
  departments they did not already have them.  He felt                         
  REPRESENTATIVE PARNELL was surprised.                                        
  Number 660                                                                   
  noted the plans in HB 347 are meant to be six year plans,                    
  however, they need to be on a two year cycle to stay                         
  Number 668                                                                   
  REPRESENTATIVE G. DAVIS stated he too had been surprised                     
  when he found there was not more organization when it was                    
  time to budget.  He noted the lack of prioritization within                  
  the departments.                                                             
  Number 675                                                                   
  REPRESENTATIVE ULMER commented HB 347 reminded her of 1978-                  
  1979 when "performance based budgeting" used to be done in                   
  Alaska.  Jay Hammond then termed it "management by                           
  objective," whereby objectives were set, measurements of                     
  attainment were set, and periodically the attainment was                     
  reviewed.  She noted the elements which made the program                     
  work: 1) training of agency managers; 2) commitment from the                 
  governor and OMB because it runs counter to the way business                 
  is usually done; 3) a person responsible for the follow                      
  TAPE 94-34, SIDE B                                                           
  Number 000                                                                   
  REPRESENTATIVE ULMER continued.                                              
  ...4) legislative involvement, brought in by the Executive                   
  branch, early in the process with an agreement that budgets                  
  would be based cooperatively on the stated goals and                         
  objectives; and 5) enforcement of policy goals with both                     
  rewards and penalties.  She stated without these elements                    
  the program would be short-lived, and to maintain them it                    
  takes money.  She directed the committee to the HB 347 zero                  
  fiscal notes and stated it would be like "passing crime                      
  bills without putting money into the Department of                           
  Corrections or Public Safety budget."  An appropriation to                   
  OMB or the Governor's office, which they could then                          
  distribute to the agencies, would have to be made.  She                      
  emphasized that existing personnel cannot just pick up                       
  another specific job.                                                        
  REPRESENTATIVE ULMER stated she encouraged the program and                   
  felt if the money was there to back up the program, it would                 
  be a good time to engage it again.                                           
  Number 052                                                                   
  REPRESENTATIVE PARNELL reiterated the elements                               
  REPRESENTATIVE ULMER referred to and stated he had witnesses                 
  available to testify on those areas.  He believed HB 347                     
  would change a person's job description, rather than add to                  
  it.  He recognized the program may not be enforced without                   
  additional money.                                                            
  REPRESENTATIVE ULMER commented "performance based budgeting"                 
  requires a focus on the long-term with external                              
  measurements, as opposed to simply numbers on paper.  She                    
  emphasized the program would depend upon enough people                       
  understanding the program, with a commitment.                                
  Number 112                                                                   
  happened to the previous program.                                            
  Number 115                                                                   
  REPRESENTATIVE ULMER answered the program was very active in                 
  the late 1970s and early 1980s, and it began to diminish                     
  around 1982.  The program failed because it was too much                     
  money.  She stated the tailored program became overwhelmed                   
  by the influx of money and the legislature's desire to do                    
  good by distributing money quickly.  She noted the time was                  
  at the very end of the Hammond Administration and priorities                 
  were changing.                                                               
  Number 157                                                                   
  CHAIRMAN VEZEY asked the advantage of Section 2 in HB 347.                   
  Number 160                                                                   
  REPRESENTATIVE PARNELL replied Section 2 directs Legislative                 
  Budget & Audit (LB&A) to evaluate laws and look for                          
  duplications.  The value is having someone to look for it.                   
  Section 2 was part of the Texas bill, and although he was                    
  not determined to include it, he felt it was a valuable                      
  Number 170                                                                   
  CHAIRMAN VEZEY stated he felt Section 2 just reiterates                      
  LB&A's authority and noted it states they will quit doing it                 
  December 31, 1997.                                                           
  Number 174                                                                   
  REPRESENTATIVE PARNELL corrected CHAIRMAN VEZEY in that                      
  Section 2 states the recommendations shall be submitted to                   
  the legislature by December 31, 1997.                                        
  Number 184                                                                   
  OFFICE OF MANAGEMENT & BUDGET (OMB), supported HB 347.  He                   
  stated OMB has been involved with performance measurement                    
  over the past year, and as of the past few months, the                       
  importance of the program elevated to something they                         
  definitely wanted to do and intend to develop for                            
  implementation in the coming 18 months independent of HB
  347.  He agreed with REPRESENTATIVE ULMER on elements                        
  necessary to make the program successful.  OMB intends to                    
  revamp the current budget process and supplant the new                       
  program into it.  They would prefer a system very closely                    
  integrated to the delivery of budget documents to the                        
  legislature, rather than a separate track of plans which                     
  may, or may not, be linked to the budget developing process.                 
  MR. FARGNOLI commented HB 347 is a large undertaking,                        
  especially in regards to commitment.  He stated the resource                 
  requirements were not as large as they could be, depending                   
  upon how the process is structured.  He has been directed,                   
  when session is over, to devote 100 percent of his time to                   
  working with the departments, the legislature, LB&A, and the                 
  finance committees to develop the process, identify the                      
  training requirements, and to develop budget instructions                    
  and forms.  The intention would be to focus on                               
  effectiveness, not so much efficiency.  He noted presently,                  
  when the  state looks into services it is providing to                       
  determine how successful they are, the state has very little                 
  budgetary apparatus for making those determinations.                         
  Performance based budgeting will provide a "budget based                     
  vocabulary" for making such determinations.                                  
  MR. FARGNOLI addressed HB 347 fiscal notes in the packets.                   
  He referred to them as preliminary because the majority of                   
  detailed discussions had not been engaged in yet.  He noted                  
  the departments have been asked to identify their training                   
  requirements, under the assumption OMB would provide all of                  
  the training necessary.  The responses he believed, would                    
  differ dramatically from department to department, but "none                 
  of them will be trivial either in scale or importance."  He                  
  stressed training for all levels is a key factor.                            
  Number 310                                                                   
  REPRESENTATIVE SANDERS stated he assumed from MR. FARGNOLI's                 
  opening statement that he supported HB 347.                                  
  MR. FARGNOLI affirmed REPRESENTATIVE SANDERS.                                
  Number 315                                                                   
  REPRESENTATIVE SANDERS mentioned the tremendous fiscal note                  
  HB 347 will have, and questioned if MR. FARGNOLI felt HB 347                 
  was a tool for moving towards a sixty or ninety day session.                 
  He believed the program would save a lot of money for the                    
  legislature because the finance committee would no longer                    
  have to constantly fly witnesses to Juneau to testify on                     
  programs.  He felt there would be a large net savings, in                    
  addition to the benefits of the planning.                                    
  Number 322                                                                   
  MR. FARGNOLI agreed with REPRESENTATIVE SANDERS, however,                    
  they did not view the process as encouraging to any one                      
  legislative approach.                                                        
  Number 329                                                                   
  REPRESENTATIVE SANDERS commented 75 percent of the work done                 
  deals with the budget and HB 347 would reduce it.                            
  Number 330                                                                   
  MR. FARGNOLI responded the intent would be to make the                       
  budget process more streamlined; however, reorientation more                 
  of their objective.                                                          
  Number 335                                                                   
  REPRESENTATIVE ULMER commented she thought MR. FARGNOLI was                  
  "exactly right."  In relation to the committee and                           
  subcommittee process, it is very generalized and fairly                      
  superficial.  She noted the subcommittee members do not                      
  always come prepared to meetings, so they do not know the                    
  goals, measurements, and how well they achieved them.  She                   
  felt this type of work could be done during the interim if                   
  performance based budgeting system was in place.  Periodic                   
  performance updates could also be sent out during the                        
  Number 360                                                                   
  REPRESENTATIVE G. DAVIS asked if there had been something to                 
  set off the OMB to be so wrong that they felt the change was                 
  Number 368                                                                   
  MR. FARGNOLI stated the OMB saw the absence of useful                        
  information in budget documents.  They need feedback on                      
  their policy choices, of which they have very little.                        
  Number 386                                                                   
  REPRESENTATIVE G. DAVIS agreed with MR. FARGNOLI and stated                  
  it was obvious to a lot of the them.  He referred to words                   
  which MR. FARGNOLI frequently used in his testimony such as                  
  "effectiveness" and "prioritization."  He noted he had not                   
  found the use of those words in HB 347.                                      
  Number 397                                                                   
  REPRESENTATIVE PARNELL offered on page 2, line 3, it could                   
  be amended to read, "an analysis of workload, priorities,                    
  and of the results..."                                                       
  Number 406                                                                   
  REPRESENTATIVE G. DAVIS stated he did not really have a                      
  (REPRESENTATIVE SANDERS left the meeting a 9:13 a.m.)                        
  Number 412                                                                   
  CHAIRMAN VEZEY stated he found Section 2 to be a little                      
  superfluous.  He asked for a comment.                                        
  Number 414                                                                   
  MR. FARGNOLI responded the OMB did not have a problem with                   
  Section 2.  They assumed Section 2, given the role and the                   
  function of a performance based budgeting system in                          
  evaluating agencies, would be helpful to investigate whether                 
  there are other statutes or regulations which bear on the                    
  question of how agencies should be measured.  Section 2                      
  would be a housekeeping measure and necessary for any new                    
  budget system in place.                                                      
  Number 431                                                                   
  REPRESENTATIVE PARNELL stated he was not opposed to the                      
  elimination of Section 2 if it were to suit the committee.                   
  CHAIRMAN VEZEY responded Section 2 did not seem to bother                    
  the other committee members.  He reminded the committee that                 
  committee substitute for HB 347 which reflects on page 1,                    
  line 8, "each odd-numbered year" needed to be adopted.                       
  (REPRESENTATIVE SANDERS returned to the meeting at 9:15                      
  Number 440                                                                   
  REPRESENTATIVE G. DAVIS so moved.                                            
  Number 446                                                                   
  CHAIRMAN VEZEY, hearing no objection, adopted the committee                  
  substitute to HB 347 reflecting the change on page 1, line                   
  8, which now read "each odd-numbered year."                                  
  Number 448                                                                   
  REPRESENTATIVE G. DAVIS directed to CHAIRMAN VEZEY's                         
  discussion on Section 2.  He clarified a department would                    
  not be duplicating work so much as LB&A would be to check                    
  interdepartmental work.  He stated Section 2 was important                   
  to have identified in CSHB 347 so duplication was not                        
  forgotten.  He noted it is not in the duties of department                   
  to check what other departments are doing so there is no                     
  Number 467                                                                   
  REPRESENTATIVE ULMER moved to pass CSHB 347 from committee                   
  with individual recommendations, asking unanimous consent.                   
  Number 468                                                                   
  CHAIRMAN VEZEY, hearing no objection, asked the committee                    
  secretary to call the roll.                                                  
  IN FAVOR:      REPRESENTATIVES VEZEY, ULMER, G. DAVIS,                       
                 SANDERS, OLBERG.                                              
  ABSENT:        REPRESENTATIVES KOTT, B. DAVIS.                               
  MOTION PASSED WITH DO PASS RECOMMENDATION                                    
  CHAIRMAN VEZEY called for a recess at 9:17 a.m.                              
  CHAIRMAN VEZEY reconvened the meeting at 9:25 a.m.  Members                  
  present were REPRESENTATIVES G. DAVIS and OLBERG.                            
  HB 389 - INCREASED PENALTIES FOR JOY RIDING                                  
  CHAIRMAN VEZEY opened HB 389, Sponsored by  REPRESENTATIVE                   
  JIM NORDLUND and Co-Sponsored by REPRESENTATIVE DAVID                        
  FINKELSTEIN, for discussion.                                                 
  Number 489                                                                   
  sponsor statement for HB 389.  He apologized for                             
  REPRESENTATIVE NORDLUND not being in attendance due to a                     
  prior personal commitment.  He stated HB 389 amends the                      
  criminal statutes to increase the penalties for joy riding.                  
  The current penalty for the first offense, Criminal Mischief                 
  III (a class A misdemeanor), would be changed to Criminal                    
  Mischief II (a class C felony).  He stated the penalty for a                 
  second offense, Criminal Mischief II, would be changed to                    
  Criminal Mischief I (a class B felony).                                      
  MR. POSHARD stated HB 389 was introduced because of the                      
  increase in auto theft and the lack of convictions.  Current                 
  laws allow many offenders to plea down to the lesser offense                 
  of joy riding.                                                               
  MR. POSHARD noted about 500 incidents per year of joy                        
  riding.  In 1993, only 99 cases were prosecuted, of which                    
  the vast majority were misdemeanors.  Only two cases went to                 
  trial on a contested basis.  In most cases the defendants                    
  plead guilty, or the charges were dropped in exchange for a                  
  plea of guilty to a lesser charge of driving while                           
  intoxicated or of theft.                                                     
  (REPRESENTATIVE SANDERS and ULMER rejoined the meeting at                    
  9:27 a.m.)                                                                   
  MR. POSHARD stated Anchorage Assembly members brought this                   
  problem to their attention.  A theft charge requires someone                 
  to have the intent to deprive someone of their property.  He                 
  stated the intent is what is difficult to proved, therefore                  
  it is easier to allow the defendant to plea down to the                      
  charge of joy riding.  Increasing the penalty for joy riding                 
  will help decrease the rising number of vehicles stolen and                  
  the tremendous dollar loss suffered by insurance companies                   
  and the victims of auto theft.  He stated HB 389 is heavily                  
  supported by the Anchorage Police Department.                                
  Number 541                                                                   
  CHAIRMAN VEZEY stated HB 389 was deleting some wording and                   
  replacing it with very similar wording.                                      
  MR. POSHARD clarified HB 389 would change the penalty for                    
  joy riding from Criminal Mischief III to Criminal Mischief                   
  Number 550                                                                   
  CHAIRMAN VEZEY turned to Section 1 and stated currently, to                  
  be under Criminal Mischief II there has to be damage to the                  
  vehicle or expenses incurred by the owner.  HB 389 would                     
  make the penalty Criminal Mischief II regardless of whether                  
  there are any expenses incurred by the owner.                                
  MR. POSHARD stated CHAIRMAN VEZEY was correct.  He replied                   
  the drafter of HB 389 felt this would be the cleanest way to                 
  make the change.                                                             
  Number 559                                                                   
  CHAIRMAN VEZEY read page 2, beginning with line 8, "(b)                      
  Except as provided in (c) of this section, criminal                          
  [CRIMINAL] mischief in the second degree is a class C                        
  felony."  He stated the exception under (c) provides a class                 
  B felony if a person has a prior conviction.                                 
  MR. POSHARD affirmed CHAIRMAN VEZEY.                                         
  Number 570                                                                   
  CHAIRMAN VEZEY stated in Section 3 of HB 389, criminal                       
  mischief III would still be a misdemeanor, but the                           
  exceptions in subsection (c) would be deleted.  He asked for                 
  an explanation.                                                              
  Number 575                                                                   
  MR. POSHARD explained Section 3 was a conforming amendment                   
  that deletes the exception for the joy riding provision                      
  referring to if the damage was less than $500.                               
  Number 579                                                                   
  CHAIRMAN VEZEY stated the question was over AS 11.46.484.                    
  Number 596                                                                   
  MR. POSHARD clarified Section 3, "[EXCEPT AS PROVIDED IN (c)                 
  OF THIS SECTION,...]," refers back to Section 2, "the person                 
  drives, tows away, or takes the propelled vehicle of                         
  another."  He noted Section 1 (4),"[THE PERSON DRIVES, TOWS                  
  AWAY, OR TAKES THE PROPELLED VEHICLE OF ANOTHER...]," was                    
  deleted.  Therefore, Section 3 is the conforming amendment                   
  deleting exemption which directly referred to the language                   
  in Section 1(4).                                                             
  Number 607                                                                   
  CHAIRMAN VEZEY stated the activity described under criminal                  
  mischief III is being classified as a class A misdemeanor,                   
  even though the existing statute provides it will be a class                 
  C felony if there were prior convictions.  He felt HB 389                    
  would be deleting the stipulation that under certain                         
  circumstances the offense could be a felony.  He believed HB
  389 made a violation of AS 11.46.484 a class A misdemeanor                   
  and would it not be a felony if was a repeat offense as                      
  described in Section 2(c).                                                   
  Number 620                                                                   
  MR. POSHARD clarified criminal mischief III would no longer                  
  be a penalty for joy riding or theft of an automobile                        
  because the language was deleted.                                            
  Number 624                                                                   
  REPRESENTATIVE ULMER made clear MR. POSHARD was referring to                 
  page 2, lines 20-21.                                                         
  (REPRESENTATIVE OLBERG and SANDERS left the meeting at 9:36                  
  Number 634                                                                   
  MR. POSHARD stated there may some language left in AS                        
  11.46.484 which may need to be deleted.  He noticed Section                  
  2 would allow for criminal mischief III to still be a                        
  misdemeanor.  He noted this was not the intent when HB 389                   
  was drafted.                                                                 
  Number 643                                                                   
  REPRESENTATIVE ULMER commented confusion arises because all                  
  of the provisions of AS 11.46.484 are not seen in HB 389.                    
  She referenced AS 11.46.484(b) in Section 3, line 20, which                  
  deletes [EXCEPT AS PROVIDED IN (c)...].  She clarified AS                    
  11.46.484(c) includes the provisions of the joy riding                       
  statute which is being deleted on page 1 of HB 389.                          
  Number 650                                                                   
  CHAIRMAN VEZEY stated page 1 is deleting wording in AS                       
  Number 651                                                                   
  REPRESENTATIVE ULMER agreed with CHAIRMAN VEZEY.  She                        
  responded AS 11.46.482 is referenced within AS 11.46.484 in                  
  the statute.  AS 11.46.482(a)(4) which is deleted in HB 389                  
  is embraced within AS 11.46.484 as an exception to the class                 
  A misdemeanor.  Therefore, the language must be deleted to                   
  make it no longer a misdemeanor.                                             
  Number 661                                                                   
  CHAIRMAN VEZEY stated he understood REPRESENTATIVE ULMER's                   
  clarification; however, he felt it did explain the changes                   
  to the other three sub-subsections of paragraph 3.  He                       
  stated under current law AS 11.46.484(a)(2) would also be a                  
  felony, but HB 389 would change it to a class A misdemeanor.                 
  Number 666                                                                   
  REPRESENTATIVE ULMER responded the structure of the language                 
  in AS 11.46.484(b) provides an exception to it being a                       
  misdemeanor.  Section (c) is being removed because HB 389 is                 
  changing the definition of the offense by deleting                           
  subsection (4).  She believed the drafter was correct.                       
  Number 674                                                                   
  CHAIRMAN VEZEY commented more work would have to be done on                  
  Section 3, but not at this time.  He inquired about Section                  
  MR. POSHARD replied Section 4 was a conforming amendment to                  
  AS 11.46.486(a).  The reference to AS 11.46.484(a)(2) was                    
  being deleted on page 3, line 1.                                             
  Number 692                                                                   
  CHAIRMAN VEZEY inquired about Section 5.                                     
  MR. POSHARD replied Section 5 deleted another reference to                   
  AS 11.46.482(a)(4) on line 4, page 3.  On page 3, line 3,                    
  the word "third" is replaced with "second" to comply with                    
  the intent of HB 389.                                                        
  TAPE 94-35, SIDE A                                                           
  Number 000                                                                   
  CHAIRMAN VEZEY clarified that Section 5 was a housekeeping                   
  measure.  He asked about Section 6.                                          
  Number 015                                                                   
  MR. POSHARD replied Section 6 dealt with sentencing.                         
  CHAIRMAN VEZEY stated Section 6 would mandate a minimum                      
  Number 019                                                                   
  MR. POSHARD agreed with CHAIRMAN VEZEY.  The misdemeanor                     
  charge would be changed to a felony charge.                                  
  Number 043                                                                   
  REPRESENTATIVE ULMER referred to the "Assumptions" section                   
  on page 2 of the Department of Corrections' fiscal note.  It                 
  states, "The Municipality of Anchorage, which has its own                    
  `joy riding' law now, prosecutes an additional 35 such cases                 
  per year...  It is assumed that the bill would have the                      
  effect of converting all the Municipality misdemeanor cases                  
  into State felony cases."  She asked if this effect has been                 
  discussed.  She was concerned about the statewide trend of                   
  all misdemeanor cases not being prosecuted at the municipal                  
  level, thereby leaving the state to "pick up the bag."                       
  MR. POSHARD said he could not comment because they have not                  
  spoken with the prosecutor's office for the municipality of                  
  Number 072                                                                   
  REPRESENTATIVE ULMER stated it would be worthwhile to find                   
  out their intentions as to whether or not they plan to                       
  continue to prosecute joy riding violations as misdemeanors.                 
  If the municipality of Anchorage did intend to continue,                     
  Department of Corrections may be able to down scale their                    
  fiscal note and reduce the state financial impact.                           
  Number 086                                                                   
  CHAIRMAN VEZEY stated he would like to see how much actual                   
  property damage is involved in joy riding.  If $1.5 million                  
  were to be spent on the incarceration of offenders, their                    
  cost to society should also be examined.                                     
  MR. POSHARD answered he did not know how much damage is done                 
  statewide, but he did have figures for Anchorage.  Over the                  
  past 5 years, approximately $51 million dollars in vehicles                  
  had been taken, of which nearly $6 million have never been                   
  Number 108                                                                   
  CHAIRMAN VEZEY commented those items not recovered would not                 
  fall under the statute referred to in HB 389.  Those items                   
  would be designated under theft.                                             
  Number 110                                                                   
  MR. POSHARD affirmed CHAIRMAN VEZEY.  He stated they contend                 
  that increasing the penalty for joy riding would also reduce                 
  theft because they would now both be carrying a felony                       
  charge.  He noted many of the vehicles involved in joy                       
  riding do end up with damage to them.  This proposes an                      
  added cost to insurance companies and victims.                               
  Number 129                                                                   
  CHAIRMAN VEZEY mentioned the fine connected with the charge                  
  of joy riding and the possibility of short-term jail time                    
  for those convicted.  He stated the loss of a driver's                       
  license could be considered as a penalty for joy riding in                   
  HB 389.  He commented most people convicted of joy riding do                 
  not get jail time and may or may not pay their fine;                         
  however, they still have their license intact.                               
  Number 159                                                                   
  MR. POSHARD responded CHAIRMAN VEZEY's assumptions about                     
  those individuals who commonly joy ride were correct.                        
  Regarding license revocation, he stated REPRESENTATIVE                       
  NORDLUND was open to changes on HB 389.  HB 389 was meant to                 
  facilitate discussion on different means to curb joy riding.                 
  Number 177                                                                   
  CHAIRMAN VEZEY, hearing no more questions, held HB 389 in                    
  committee for further review.  He asked MR. POSHARD to ask                   
  REPRESENTATIVE NORDLUND to examine Section 3, therewith a                    
  sponsor statement could be provided in explanation.  He was                  
  not convinced that the penalty in Section 3 was not being                    
  CHAIRMAN VEZEY, having no more business before the                           
  committee, adjourned the meeting at 9:54 a.m.                                

Document Name Date/Time Subjects