Legislature(1993 - 1994)

02/08/1994 09:30 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                        February 8, 1994                                       
                            9:30 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #19, Side 2 (end-000)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue  Pearce,  Co-chair, convened  the  meeting  at                 
  approximately 9:30 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Pearce and Frank,  Senators Sharp,                 
  and Kerttula were present.  Senators Kelly and Rieger joined                 
  committee after the  meeting was in progress.  Senator Jacko                 
  was absent.                                                                  
                                                                               
  ALSO ATTENDING:  Representative Eldon  Mulder, sponsor of HB
  137;  Representative  Terry  Martin;  Thomas  C.   Williams,                 
  Director,  Permanent Fund  Dividend Division,  Department of                 
  Revenue; Richard Collum,  Executive Director, Parole  Board,                 
  Department of Corrections; Karl  Luck, Director, Division of                 
  Occupational  Licensing, Department  of Commerce  & Economic                 
  Development; and Mike Greany,  Director, Legislative Finance                 
  Division; and aides  to committee members and  other members                 
  of the legislature.                                                          
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSHB 137(JUD): An Act authorizing special medical parole for                 
                 terminally ill prisoners.                                     
                                                                               
                 Representative  Eldon  Mulder, sponsor  of HB
                 137, testified  in support of  CSHB 137(JUD).                 
                 Discussion was held between  Co-chairs Pearce                 
                 and Frank  regarding who would  determine the                 
                 terminally  ill   inmates.    The   bill  was                 
                 REPORTED OUT  of committee  with a "do  pass"                 
                 and  three   zero  fiscal   notes  from   the                 
                 Department of Administration, #1631  and #43,                 
                 and the Department of Corrections.                            
                                                                               
  HB 144:        An Act relating to fees  for certain costs of                 
                 administering  the  permanent  fund  dividend                 
                 program.                                                      
                                                                               
                 Thomas C. Williams, Director,  Permanent Fund                 
                 Dividend  Division,  Department  of  Revenue,                 
                                                                               
                                                                               
                 testified    in    support    of   HB    144.                 
                 Representative Terry Martin later  joined him                 
                 and  answered  questions from  the committee.                 
                 Discussion  was  held by  Senators  Frank and                 
                 Kelly regarding  attachments and  assignments                 
                 of  PFDs.    The  bill  was REPORTED  OUT  of                 
                 committee  with  individuals  recommendations                 
                 and a zero fiscal note from the Department of                 
                 Revenue.                                                      
                                                                               
  SCSHB 294      An Act extending the  termination date of the                 
                 Board                                                         
  (L&C):         of Pharmacy;  and providing for  an effective                 
                 date.                                                         
                                                                               
                 Testimony  was  heard  in  support  of  SCSHB
                 294(L&C) by Karl  Luck, Director, Division of                 
                 Occupational    Licensing,    Department   of                 
                 Commerce  &  Economic Development.   Co-chair                 
                 Pearce  questioned  Mr.  Luck  regarding  the                 
                 Pharmacy Board.  The bill was REPORTED OUT of                 
                 committee with a "do pass"  and a zero fiscal                 
                 note  from  the   Department  of  Commerce  &                 
                 Economic Development.                                         
                                                                               
  CS FOR HOUSE BILL NO. 137(JUD):                                              
                                                                               
       An   Act  authorizing   special   medical  parole   for                 
       terminally ill prisoners.                                               
                                                                               
  CO-CHAIR  PEARCE announced  that  CSHB  137(JUD) was  before                 
  committee  and invited Representative Mulder, sponsor of the                 
  bill, to join the committee at the table.                                    
                                                                               
  REPRESENTATIVE MULDER said  that HB 137  was the product  of                 
  the Alaska  Sentencing Commission's  recommendations to  the                 
  legislature, and a cooperative effort between the Department                 
  of Corrections, the Parole Board, and  himself.  The bill is                 
  a cost  avoidance measure intended to save the Department of                 
  Correction and hence,  the state,  a considerable amount  of                 
  money in the future.   It relates to special  medical parole                 
  for terminally ill prisoners.  The Department of Corrections                 
  is  responsible for inmates'  medical costs as  long as they                 
  are  in  custody.    Covering  health  costs  is  a  serious                 
  financial  burden particularly  when a  terminal illness  is                 
  involved.  Once paroled, the  medical costs could be  picked                 
  up  by  Medicare  or  Medicaid,  easing  the  burden  on the                 
  Department of  Corrections and the  state.  This  bill would                 
  allow the  parole board  when appropriate  to grant  special                 
  medical parole  for terminally  ill patients.   It  contains                 
  certain criteria the board must follow before parole  can be                 
  granted.   It  must  be  determined  that  the  prisoner  is                 
                                                                               
                                                                               
  suffering   from   the   terminal   illness,  a   reasonable                 
  probability exists that  the prisoner  will not violate  any                 
  laws  or conditions imposed  by the board,  and finally, the                 
  prisoner will  not pose  a threat  to society  and that  the                 
  release of  the prisoner will  not diminish the  severity of                 
  the crime.   Passage of this  bill should save the  state of                 
  Alaska a substantial amount of money in the future and urged                 
  the   committee  to   support   HB  137.     He   said  that                 
  representatives  from the Department  of Corrections and the                 
  Sentencing Commission  were present  and welcomed  questions                 
  from the committee.                                                          
                                                                               
  In answer to Co-chair Pearce, Representative Mulder said the                 
  Parole Board would determine a  "terminally ill" inmate with                 
  strict and limited definitions.  Co-chair Pearce pointed out                 
  that this might effect more than just elderly prisoners.                     
                                                                               
  In answer to Co-chair Frank, Representative Mulder urged the                 
  committee  to  remember  all  the  conditions that  will  be                 
  considered,  and  that  the person  suffering  from  such an                 
  illness  carries with him  a tremendous medical  cost to the                 
  state.  In addition, the  factors outlined (specifically, to                 
  not diminish the  severity of  the crime  or to  not pose  a                 
  threat to society) limits the scope of the usage of HB 137.                  
                                                                               
  In answer to Co-chair Pearce, Representative Mulder informed                 
  the committee the inmates paroled could  go home or to other                 
  medical  facilities  where  costs  could  be  picked  up  by                 
  Medicare or Medicaid.                                                        
                                                                               
  SENATOR KERTTULA asked what would happen if, after a  period                 
  of time, the inmate was no longer considered terminally ill.                 
  RICHARD COLLUM, Executive Director, Parole Board, Department                 
  of Corrections, assured the committee that if an illness was                 
  turned  around   that  would   not  be   reason  enough   to                 
  reincarcerate the  prisone but  if any of  the other  parole                 
  conditions were violated,  the board  would put the  parolee                 
  back into prison.                                                            
                                                                               
  In  answer to  Co-chair Pearce, Mr.  Collum, although  not a                 
  medical professional, believed that Alzheimer's disease  was                 
  considered a terminal illness.                                               
                                                                               
  SENATOR  SHARP  MOVED  for  passage  of CSHB  137(JUD)  from                 
  committee  with individual  recommendations.   No objections                 
  being raised, CSHB 137(JUD) and three zero fiscal notes from                 
  the Department  of Administration,  #1631 and  #43, and  the                 
  Department  of Corrections,  was REPORTED OUT  of committee.                 
  Co-chairs Pearce and  Frank, Senators Rieger, Kerttula,  and                 
  Sharp  signed  the   committee  report  with  a   "do  pass"                 
  recommendation.                                                              
                                                                               
  HOUSE BILL NO. 144:                                                          
                                                                               
                                                                               
       An  Act  relating   to  fees   for  certain  costs   of                 
       administering the permanent fund dividend program.                      
                                                                               
  Co-Chair Pearce announced  that HB 144 was  before committee                 
  and invited  Thomas C.  Williams,  Director, Permanent  Fund                 
  Dividend  Division,  Department  of  Revenue,  to  join  the                 
  committee at the  table.  She  explained the only reason  HB
  144 was  brought back  to Senate Finance  from Senate  Rules                 
  Committee was a new Department of Revenue fiscal note.                       
                                                                               
  THOMAS C. WILLIAMS said  the fiscal note changed due  to the                 
  estimate of the  amount of revenues  that would be  received                 
  assuming a $2  fee would be adopted  instead of a $5  fee on                 
  which the original fiscal note was based.                                    
                                                                               
  In  answer to  Co-chair  Frank, Mr.  Williams said  that the                 
  original estimate only covered the staff cost for processing                 
  the applications.                                                            
                                                                               
  At this time  Co-chair Pearce invited Representative  Martin                 
  to join Mr. Williams at the table.                                           
                                                                               
  Co-chair Frank commented that he was encouraged that the fee                 
  was as low as $2 in estimating processing costs.                             
                                                                               
  REPRESENTATIVE  MARTIN  added that  HB  144 would  allow the                 
  recipients of the money, pay for the work involved.                          
                                                                               
  In answer  to Co-chair  Frank, Mr.  Williams explained  that                 
  last year the  estimated cost of processing  attachments and                 
  assignments was  approximately  $60.0,  not  including  data                 
  processing time.  Since they felt $1 fee would not cover the                 
  costs,  a  $2   was  chosen  as   a  even  fee  that   would                 
  approximately cover costs.  Mr. Williams said that the costs                 
  are now shown as administrative fees.                                        
                                                                               
  Discussion was  held between  Co-chair Frank,  Senator Kelly                 
  and   Mr.   Williams   regarding   false   assignments   and                 
  attachments.                                                                 
                                                                               
  CO-CHAIR FRANK  MOVED for passage  of HB 144  from committee                 
  with  individual  recommendations.     No  objections  being                 
  raised, HB 144 and a zero fiscal note from the Department of                 
  Revenue was REPORTED OUT of committee.  Co-chairs Pearce and                 
  Frank,  Senators   Kelly,  Rieger,  and   Sharp  signed  the                 
  committee report with  a "do pass" recommendation.   Senator                 
  Kerttula signed no recommendation.                                           
                                                                               
  SENATE CS FOR HOUSE BILL NO. 294(L&C):                                       
                                                                               
       An  Act extending the termination date  of the Board of                 
       Pharmacy; and providing for an effective date.                          
                                                                               
                                                                               
  Co-Chair Pearce  announced  that SCSHB  294(L&C) was  before                 
  committee  and  invited  Karl Luck,  Director,  Division  of                 
  Occupational Licensing,  Department of  Commerce &  Economic                 
  Development, to join the committee at the table.                             
                                                                               
  KARL LUCK testified  in support of SCSHB  294(L&C) extending                 
  the Board of Pharmacy's term to 1999.  In answer to Co-chair                 
  Pearce, he  said that  the total number  of pharmacists  was                 
  approximately 549, and that fees have been increased to $180                 
  for each pharmacist and  $200 for each pharmacy.   These new                 
  fees will begin to be collected as of June 1994.                             
                                                                               
  SENATOR KELLY informed the committee  that the L&C committee                 
  substitute  was  a  result  of  an  audit  that  recommended                 
  extending terms  to  ten years  of  those  non-controversial                 
  boards  and commissions.    Mr. Luck  pointed  out that  the                 
  boards  at  ten-year terms  were  staggered.   Senator Kelly                 
  explained that  the SCSHB  294(L&C) set  the Pharmacy  board                 
  with a six-year term.                                                        
                                                                               
  Co-chair Pearce  noted that  the audit recommended  revising                 
  the statutes as they have not kept pace with the practice of                 
  pharmacy.  Senator  Kelly informed the committee  that those                 
  recommendations by  the auditors  were being  taken care  of                 
  administratively and did not require  legislation.  Mr. Luck                 
  said  that  the  pharmacy  board  is working  diligently  on                 
  updating their statutes and regulations  but did not believe                 
  that would be accomplished  this session.  In answer  to Co-                 
  chair Pearce, Mr.  Luck said that  the pharmacy board was  a                 
  five-member board.                                                           
                                                                               
  Senator  Kelly  MOVED  for passage  of  SCSHB  294(L&C) from                 
  committee with  individual recommendations.   No  objections                 
  being raised, SCSHB  294(L&C) was REPORTED OUT  of committee                 
  with a zero  fiscal note from  the Department of Commerce  &                 
  Economic Development.  Co-chairs Pearce and  Frank, Senators                 
  Kelly,  Kerttula, Rieger,  and  Sharp  signed the  committee                 
  report with a "do pass" recommendation.                                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:10 a.m.                        

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