Legislature(1993 - 1994)
04/19/1994 08:30 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 19, 1994
8:30 a.m.
TAPES
SFC-94, #64, Side 1 (000-end)
SFC-94, #64, Side 2 (575-end)
SFC-94, #66, Side 1 (000-139)
CALL TO ORDER
Co-chair Drue Pearce convened the meeting at approximately
8:30 a.m.
PRESENT
In addition to Co-chair Pearce, Senators Kelly, Rieger, and
Sharp were present. Co-chair Frank arrived soon after the
meeting began, and Senator Kerttula arrived as it was in
progress. Senator Jacko did not attend.
ALSO ATTENDING: Representative Williams; Former
Representative Alyce Hanley; Randy Welker, Legislative
Auditor; Margot Knuth, Assistant Attorney General, Dept. of
Law; Bob Lohr, Executive Director, Alaska Public Utilities
Commission; Art Snowden, Administrative Director, Alaska
Court System; Clyde Stoltzfus, Special Assistant, Dept. of
Transportation and Public Facilities; Jerry Gallagher,
Director, Division of Mining, Dept. of Natural Resources;
Jimmy Jackson, GCI; Dana Tindall, GCI; Kevin Richie,
Director, Division of Personnel/EEO, Dept. of
Administration; Mike McMullen, Manager, System Services,
Division of Personnel/EEO, Dept. of Administration; Jayne
Andreen, Executive Director, Council on Domestic Violence
and Sexual Assault, Dept. of Public Safety; Mike Greany,
Director, Legislative Finance Division; Peter Ecklund, aide
to Representative Williams; Walt Wilcox, aide to
Representative James; Carol Carrol, aide to Senator
Kerttula; and aides to committee members and other members
of the legislature.
SUMMARY INFORMATION
SB 213 - APUC EXTENSION AND REGULATORY COST CHARGE
Testimony was provided by Former Representative
Alyce Hanley and Bob Lohr of the Alaska Public
Utilities Commission. Amendments 1 through 5 were
presented and Amendments 2, 4, and 5 were adopted.
CSSB 213 (Fin) was REPORTED OUT of committee with
zero fiscal notes from the Dept. of Commerce and
Economic Development and Dept. of Revenue.
SB 313 - HEALTH CARE: INSURANCE;DATA;PRICES
Testimony was presented by Carol Carroll, aide to
Senator Kerttula. The bill was then REPORTED OUT
of committee with a zero fiscal note from the
Dept. of Commerce and Economic Development.
SB 333 - DISCLOSURE OF EXEC.BR. CLOSE ASSOCIATIONS
Testimony was provided by Randy Welker, Kevin
Richie, and Mike McMullen. Amendment No. 1,
proposed by Mr. Welker, was adopted. CSSB 333
(Fin) was REPORTED OUT of committee with a $24.3
fiscal note from the Dept. of Administration and
zero notes from the Dept. of Law and Office of the
Governor.
SB 350 - ARREST FOR VIOLATING RELEASE CONDITIONS
Testimony was provided by Margot Knuth, Jayne
Andreen, and Art Snowden. The bill was REPORTED
OUT of committee with a $11.3 fiscal note from the
Dept. of Corrections and zero notes from the Dept.
of Law, Dept. of Public Safety, and Dept. of
Administration (Public Defender Agency and Office
of Public Advocacy.)
HB 28 - PENALTY FOR PROVIDING ALCOHOL TO A MINOR
Testimony was provided by Rep. Williams and his
aide, Peter Ecklund. CSHB 28(Jud)am was REPORTED
OUT of committee with a $57.9 fiscal note from the
Dept. of Corrections, an $18.8 note from the Court
System, $2.2 note from the Dept. of Revenue, and
zero notes from the Dept. of Public Safety, Dept.
of Law, and Dept. of Administration (Public
Defender and Office of Public Advocacy).
HB 119 - AUTHORIZE USE OF DAY FINES IN MISD. CASES
Testimony was presented by Art Snowden on behalf
of the Court System. SCS CSHB 119 (Fin) was
REPORTED OUT of committee with an $80.1 fiscal
note from the Court System and zero notes from the
Dept. of Law, Dept. of Corrections, Dept. of
Public Safety, and Dept. of Administration (Office
of Public Advocacy and Public Defender Agency).
HB 183 - TRANSPORTATION CORRIDOR: FAIRBANKS-NOME
Walt Wilcox presented testimony on behalf of
Representative James. SCS CSHB 183 (TRA) was
REPORTED OUT of committee with a zero House
Finance Committee fiscal note for the Dept. of
Transportation and Public Facilities.
HB 453 - TAX ON RESIDUAL MARINE FUEL OIL
CSHB 453 (Finance) was REPORTED OUT of committee
with zero fiscal notes from the Dept. of
Transportation and Public Facilities and the Dept.
of Revenue.
HB 498 - MINERAL EXPLORATION INCENTIVE CREDITS
Jerry Gallagher, Dept. of Natural Resources,
briefly testified, and two amendments to the bill
were noted. The bill was subsequently HELD in
committee for discussion at the afternoon meeting.
SB 213 - APUC EXTENSION AND REGULATORY COST CHARGE
Co-chair Pearce directed that SB 213 be brought on for
discussion and referenced proposed amendments. She then
spoke specifically to Amendment No. 1, requested by
Anchorage Municipal Light and Power, and noted that since no
one had furthered need for the amendment, the assumption is
that it will not be offered. No one indicated to the
contrary.
Co-chair Pearce next directed attention to Amendment No. 2,
proposed by GCI and supported by Co-chair Frank. Senator
Rieger
OFFERED Amendment No. 2 for discussion purposes. He then
questioned the following language:
Bonds or other debt issued to finance unregulated,
competitive ventures by a municipally owned utility
shall not be incurred in a manner that would permit a
creditor, on default, to have recourse to the assets of
the basic regulated utility business.
advising that while it appears, on balance, to be good
policy, arguments could be made either way. He suggested
that it would require much stricter separation of an entity
"that has a regulated monopoly power." Senator Sharp voiced
need for a clear understanding that the legislative intent
is not to allow shifting of costs to any portion of a
regulated monopoly. He said that was the basis of his
support for the amendment. Co-chair Pearce called for a
show of hands on adoption of Amendment No. 2. Amendment No.
2 was ADOPTED with all four members present indicating
support.
Co-chair Pearce announced that while Amendment No. 3 was
logged in, it does not reflect an actual amendment.
Committee attention was directed to Amendment No. 4 by
Senator Sharp. Senator Sharp OFFERED Amendment No. 4 for
discussion purposes. Co-chair Pearce OBJECTED. Senator
Sharp said that he met with APUC representatives and other
interested parties in an attempt to develop "more gentle,
kinder wording" to that inserted by Senate Judiciary.
Research on wording in authorizing statutes from New York
and Wisconsin produced the language proposed in Amendment
No. 4. It is intended to provide APUC the tools it needs to
properly regulate and make emergency decisions on service
areas. Senator Rieger said he was comfortable with existing
language. He then suggested that if the amendment is to be
adopted, the word "necessarily" should be deleted and
"reasonably" inserted in lieu thereof. APUC has given
reasonable examples of need to go beyond the express
granting of power in statute. Senator Rieger then formally
MOVED to change "necessarily" to "reasonably." Co-chair
Pearce called for objections. None were raised, and the
Amendment to Amendment No. 4 was ADOPTED.
[Co-chair Frank arrived at this time.]
FORMER REPRESENTATIVE ALYCE HANLEY, Alaska Public Utilities
Commission Member, and BOB LOHR, Executive Director, Alaska
Public Utilities Commission, came before committee. Mr.
Lohr said that language within Amendment No. 4 "looks
better" following the adopted language change. He
referenced earlier submission of six versions of sample
language based on other utility commissions nationwide as
well as language designed to address environmental issues
and ensure that they do not "come up" as implied powers.
They have to be explicitly granted by the legislature.
As an alternative to Amendment No. 4, Mr. Lohr advised that
existing statutory language could simply be amended by
placing a period after the citation to AS 42.05.711. (See
CSSB 213 (Jud), page 1, line 9.)
Senator Sharp referenced recent judicial decisions stemming
from lack of specificity in terms of powers and duties for
various agencies. Under that decision making process both
the legislature and agencies lose control. He voiced a
preference for inclusion of language that "at least gives
some direction and some legislative intent on what the
duties are . . . ." Co-chair Frank stressed need for
reasonable middle ground and voiced his belief that language
within Amendment No. 4 meets that goal.
[Senator Kerttula arrived at this time.]
Co-chair Pearce called for a show of hands on adoption of
Amendment No. 4. The motion CARRIED on a vote of 5 to 1
(Senator Kerttula was opposed), and Amendment No. 4 was
ADOPTED.
Senator Kelly explained that Amendment No. 5 would delete
language mandating cable television regulation by APUC. He
suggested that the issue represents a policy call that
should be made on its own merits rather than as part of
sunset legislation. At the present time, cable television
may be regulated if regulation is requested. Co-chair
Pearce voiced support for Senate Judiciary inclusion of
cable television regulation. She further advised that the
sunset process is specifically designed to bring policy
calls back before the legislature. Senator Kelly MOVED for
adoption of Amendment No. 5. Co-chair Pearce OBJECTED.
Mrs. Hanley voiced her understanding that Amendment No. 5
would maintain the status quo. Cable television has not
been regulated unless subscribers petition the commission
for regulation. Co-chair Frank voiced his understanding
that in situations where competition cannot be achieved and
the result is a monopoly provider, regulation is somewhat
reluctantly endorsed since it provides a measure of
protection to the public. He then inquired concerning the
philosophy behind deregulation of cable television. Mr.
Lohr said that regulation is less compelling for television
because it is not an essential service as is water or
electricity. The monopoly status is no longer as natural as
it once was in that there is limited competition and
alternative ways of delivering signals. Many local exchange
companies nationwide are "looking at providing cable
service" through fiber optic telephone lines. At that
point, there will be substantial competition for cable
services.
Mr. Lohr next spoke to the implications of excluding basic
tier cable service from regulation. That is the only issue
in question. The federal cable reregulation act of 1992
preempts state regulation of anything (premium channels)
above the basic tier. If the state were to statutorily
exclude basic tier regulation, the federal government, in
regulations under new federal legislation, would preempt the
state, and the FCC would assume jurisdiction over basic tier
channels. Mr. Lohr voiced his understanding that the
amendment would continue to allow subscribers in Alaska to
petition for regulation by APUC. However, if opportunity
for petition is closed, the federal government would preempt
state regulation and would regulate basic tier service from
Washington, D.C., through a cumbersome complaint process
that is not adaptable to local conditions. Co-chair Frank
voiced his understanding that Amendment No. 5 would leave
petition opportunities in tact. Mr. Lohr concurred.
Co-chair Frank said he had heard no good reasons for
exempting cable television from regulation. Senator Kelly
noted that premium channels are regulated by federal law.
Co-chair Frank asked if the federal government also
regulates basic tier service. Mr. Lohr responded
affirmatively, explaining that federal regulation applies in
"any community where effective competition is not found to
exist." Co-chair Pearce voiced her understanding that while
the cost of basic service decreased following passage of
federal law, the package most people subscribe to, which
includes "some sort of a premium channel," increased.
Regulation thus resulted in higher fees. Mr. Lohr explained
that the complex federal formula said that the average
monthly revenues of a cable utility could not increase.
However, the formula allows cable companies to shuffle rates
within that package. Since that time, the FCC issued a
subsequent order resulting in an average 7% reduction. It
was recognized that the original intent of federal
legislation was not being accomplished.
Discussion followed concerning the number of subscribers
needed to petition the APUC for regulation.
Further discussion followed regarding the cost of cable
television regulation. Mr. Lohr explained that regulation
for basic tier would make the company's basic tier gross
revenues subject to the regulatory cross charge of 4/10 of a
percent. Senator Kelly voiced concern raised by utilities
that in addition to the RCC rate, they expend thousands of
dollars for attorneys to put rate-case packets together.
The cost to businesses is higher than merely the RCC rate.
Mr. Lohr concurred that preparation of rate cases involves
both attorneys and accountants. Senator Kelly noted that
this cost is passed on to the consumer.
Co-chair Frank voiced concern that regulation would prevent
additional competition in the market. Further noting the
costs involved and the fact that federal regulation is in
place, the Co-chair voiced support for Senator Kelly's
amendment.
In final comments on the issue, Senator Kelly voiced his
understanding that new federal regulations cover all cable
television premium channels. Mr. Lohr explained that the
regulations apply to all premium channels "for which there
is not effective competition."
Co-chair Pearce called for a show of hands on adoption of
Amendment No. 5. The motion CARRIED on a vote of 4 to 2
(Co-chair Pearce and Senator Rieger were opposed), and
Amendment No. 5 was ADOPTED.
Senator Kelly MOVED that CSSB 213 (Finance) pass from
committee with individual recommendations. No objection
having been raised, CSSB 213 (Finance) was REPORTED OUT of
committee with zero fiscal notes from the Dept. of Revenue
and the Dept. of Commerce and Economic Development. Co-
chairs Pearce and Frank and Senators Kelly, Rieger, and
Sharp signed the committee report with a "do pass"
recommendation. Senator Kerttula signed "no
recommendation."
CS FOR HOUSE BILL NO. 453(FIN)
An Act establishing, for purposes of the levy and
collection of the motor fuel tax and for a limited
period, a different tax levy on residual fuel oil used
in and on certain watercraft; and providing for an
effective date.
Co-chair Pearce directed that CSHB 453 (Fin) be brought on
for discussion and noted discussion of the identical Senate
version at the previous meeting. Senator Rieger MOVED that
CSHB 453 (Fin) pass from committee with individual
recommendations. No objection having been raised, CSHB 453
(Fin) was REPORTED OUT of committee with zero fiscal notes
from the Dept. of Revenue and the Dept. of Transportation
and Public Facilities. Co-chairs Pearce and Frank and
Senators Kelly, Rieger, and Sharp signed the committee
report with a "do pass" recommendation. Senator Kerttula
signed "no recommendation."
SENATE BILL NO. 333
An Act relating to disclosure of close economic
associations by certain state employees and to the
prohibition against nepotism in the executive branch of
state government; and providing for an effective date.
Co-chair Pearce directed that SB 333 be brought on for
discussion and referenced file material relating to the
bill.
RANDY WELKER, Legislative Auditor, came before committee.
He explained that the bill was introduced by the Legislative
Budget and Audit Committee in response to an audit of the
Dept. of Public Safety, Fish and Wildlife Protection
Division. While the legislature had earlier passed law that
made it illegal for fish and wildlife protection officers to
be licensed as guides, the audit highlighted potential for
an additional problem: close economic association. Those
involved in the legislative branch of government are
required to disclose such associations. There is no such
requirement in the executive branch ethics act. During the
audit, evidence was found of fish and wildlife protection
officers who either own commercial fishing permits or
commercial fishing vessels, or have spouses who own permits
or vessels. There were also indications of significant
property transactions between fish and wildlife protection
officers and those they regulate. Nothing currently
requires disclosure of these associations. This situation
is not unique to the Dept. of Public Safety. Law does not
presently prohibit an ABC investigator from being co-owner
of a liquor license. Further, an oil and gas auditor
within the Dept. of Revenue is not required to disclose that
he or she owns significant stock in an oil company. The
proposed bill requires that those who exercise substantial
discretion in regulatory or audit matters be required to
disclose economic associations to their supervisors. The
legislation also provides for action by the supervisor in
either reassigning duties or ordering divestiture of the
interest.
Section 2 of the bill extends provisions of the current
nepotism statute. The present prohibition only extends to
blood relations to the executive head of the department.
The law should include all employer/subordinate
relationships in state government. Section 2 expands the
current prohibition. The fiscal note from the Dept. of
Administration relates to changes in the nepotism statute.
Discussion followed regarding the definition of
"supervisor." Mr. Welker explained that it is described as
"a position as immediate supervisor or as a supervisor
within the organizational structure." Co-chair Pearce asked
if the child of the Governor's chief of staff could work in
one of the departments. Mr. Welker said a legal
interpretation of that situation would have to be made.
In response to a question from Senator Kelly concerning the
definition of "public officer," Mr. Welker voiced his
understanding that it refers to "any state employee."
Senator Kelly stated his discomfort with broad application
of expanded nepotism provisions.
Senator Sharp voiced his understanding that private sector
nepotism restrictions generally allow for situations where a
family member was an employee prior to hire of the related
supervisor. Co-chair Pearce suggested that the employee
would not necessarily have to be discharged, in the noted
situation, but merely transferred to a different section.
Mr. Welker concurred.
Senator Kerttula attested to substantial abuse in areas
covered by the proposed bill.
Mr. Welker directed attention to page 1, line 14, and noted
language requiring that the "personnel board" adopt
associated regulations. The administration pointed out that
all executive branch ethics regulations are developed and
defined by the Attorney General. The administration has
thus asked that "personnel board" be deleted and "Attorney
General" inserted in lieu thereof. Mr. Welker recommended
the change.
KEVIN RICHIE, Director, Division of Personnel/EEO, Dept. of
Administration, and MIKE McMULLEN, Personnel Manager, System
Services, Division of Personnel/EEO, Dept. of
Administration, came before committee. Mr. Richie
referenced the $24.3 fiscal note and reiterated that it
relates to expanded nepotism provisions. He noted that
current statutes provide no waiver for nepotism. Proposed
new law extends to a "regular member of the household" as
well. That includes "other people living in the household
that weren't related by blood." It includes a larger number
of people than previously covered, and it is assumed that
grievances will be filed over this issue.
Senator Rieger directed attention to page 2, lines 4 and 5,
and requested an explanation of "official action in a matter
that directly involves a person . . . ." He then asked how
the language would be interpreted by the Attorney General.
Mr. McMullen explained that the executive branch ethics act
contains an assumption that relationships exist. Minor
interactions are not conflicts of interest.
Co-chair Pearce asked representatives from the department if
they were supportive of the language change recommended by
Mr. Welker. Both Mr. Richie and Mr. McMullen responded
affirmatively. Mr. McMullen indicated that the change would
reduce the fiscal note by $1.5.
Discussion followed regarding expansion of nepotism
prohibitions to cover regular members of a household. Mr.
Richie acknowledged that inclusion represents a policy call.
He noted that today's households contain equivalents of
family members that are not related by blood or marriage.
Senator Kerttula MOVED for adoption of the language change
from "personnel board" to "Attorney General" at page 1, line
14. No objection having been raised, Amendment No. 1 was
ADOPTED.
Senator Sharp MOVED that CSSB 333 (Fin) pass from committee
with individual recommendations and accompanying fiscal
notes. Senator Kelly OBJECTED. He attested to the small
size of the state population and the number of households
with members working for state government. He voiced his
belief that certain nepotism prohibitions within the bill
were too broad.
End: SFC-94, #64, Side 1
Begin: SFC-94, #64, Side 2
Co-chair Pearce called for a show of hands on the motion.
CSSB 333 (Fin) was REPORTED OUT of committee on a vote of 4
to 1. It was accompanied by zero fiscal notes from the
Office of the Governor and the Dept. of Labor and a $24.3
note from the Dept. of Administration. Co-chairs Pearce and
Frank and Senators Kerttula, Rieger, and Sharp signed the
committee report with a "do pass" recommendation. Senator
Kelly signed "no recommendation."
Senator Kerttula asked for a brief recess.
RECESS - 9:15 A.M.
RECONVENE - 9:30 A.M.
SENATE BILL NO. 350
An Act relating to a defendant's violation of
conditions of release; and providing for an effective
date.
Co-chair Pearce reconvened the meeting with both co-chairs
and Senators Kelly, Rieger, and Sharp in attendance. She
then directed that SB 350 be brought on for discussion and
referenced file materials.
MARGOT KNUTH, Assistant Attorney General, Dept. of Law, came
before committee, accompanied by JAYNE ANDREEN, Executive
Director, Council on Domestic Violence and Sexual Assault,
Dept. of Public Safety. Ms. Knuth explained that under
existing law, police officers have authority to make a
warrantless arrest for any felony offense and for certain
misdemeanors: DWI, domestic violence, etc. The proposed
bill authorizes peace officers to make a warrantless arrest
when a defendant has violated conditions of release in those
same cases.
Under present law, when a person is arrested, he or she is
brought before the court and either held in jail pending
trial or released. In most instances defendants are
released, and conditions such as a monetary bail amount,
custody arrangement, etc. are placed upon that release.
Individuals remain under release until trial and conviction.
The state is finding that many defendants violate conditions
of release, and it often takes days to bring them back
before the court and to get them into custody. Further,
defendants are often again released under more stringent
conditions.
The proposed bill deals with immediate intervention for
violation of release conditions involving domestic violence,
rape, sexual abuse, and assault cases. Senator Rieger noted
carefully crafted language at page 2 and raised a question
concerning need for specific rather than more general
language. Ms. Knuth pointed to language at page 3 and noted
that in all instances of rape or sexual assault, it does not
matter whether the defendant and victim have a relationship
or not. Language at page 2, regarding felony assault and
the relationship between the defendant and victim is
intended to balance the defendant's freedom again public
safety interests in immediately bringing the defendant back
before the court through a warrantless arrest. Specific
language attempts to achieve that balance by saying that
when the defendant knows the victim in an assault or sexual
abuse case, concern for the victim and protection of society
outweigh the defendant's liberty interests.
JAYNE ANDREEN voiced support for the legislation. She said
that the bill targets the types of crime that involve both
violence and the threat of violence. Victims may presently
obtain a civil, temporary restraining order against the
perpetrator. Violation of that order entails immediate
arrest. Under current criminal law, those who violate
conditions of release cannot be so readily arrested. Ms.
Andreen stressed that in instances of domestic violence and
stalking, if the system works very quickly, chances of
recidivism are lowered.
In response to a question from Senator Kerttula, Ms. Andreen
voiced her understanding that the idea behind the proposed
bill responds to a request from Alaska judges. ART SNOWDEN,
Administrative Director, Alaska Court System, advised that
the court system has no objection to the bill.
Senator Kerttula MOVED that SB 350 pass from committee with
individual recommendations. No objection having been
raised, SB 350 was REPORTED OUT of committee with a $11.3
fiscal note from the Dept. of Corrections and zero notes
from the Dept. of Law, Dept. of Public Safety, and Dept. of
Administration (one each from both the Office of Public
Advocacy and the Public Defender Agency). All members
present signed the committee report with a "do pass"
recommendation. (Senator Jacko was absent from the meeting
and did not sign.)
CS FOR HOUSE BILL NO. 119(JUD) am
An Act authorizing a sentencing court to impose a
sentence of a day fine instead of a sentence of
imprisonment on a defendant convicted of a misdemeanor;
directing the Alaska Supreme Court to develop and
implement a day fine plan; requiring the Alaska Court
System to report to the legislature on the use of day
fines; amending Alaska Rule of Criminal Procedure 32;
and providing for an effective date.
Co-chair Pearce directed attention to CSHB 119 (Jud)am and
noted a draft Senate Finance Committee Substitute (work
draft 8-LS0496\R, Luckhaupt, 4/18/94). She further
referenced associated fiscal notes and the fact that while
the bill was waived from committee last year, it was
returned for adoption of the proposed work draft. Senator
Rieger MOVED for adoption of SCS CSHB 119, "R" version. No
objection having been raised, SCS CSHB 119 (Fin) was
ADOPTED.
Senator Rieger explained that the only change embodied
within the Senate Finance version relates to provisions
requiring that moneys collected under the new day-fine
system be separately accounted for in the general fund.
Provisions also allow the legislature to appropriate one-
quarter to the violent crimes compensation board and one-
quarter to the council on domestic violence and sexual
assault.
Senator Kelly inquired concerning a definition of "day
fine." ART SNOWDEN, Administrative Director, Alaska Court
System, again came before committee. He explained that the
"day-fine" system has been used for many years in Europe and
in many local jurisdictions within the United States. Such
fines will be imposed for non-violent state misdemeanors.
Mr. Snowden referenced the current backlog of almost a year
prior to incarceration of misdemeanants and stressed need
for an economic sanction instead. A day fine takes two
elements into consideration:
1. The seriousness of the crime.
2. The income of the perpetrator.
Mr. Snowden voiced his belief that economic sanctions would
provide great deterrence to these types of crimes.
Discussion followed regarding use of permanent fund
dividends to pay day fines.
Senator Kelly suggested that someone who shoplifts food
would not be able to pay the fine. Mr. Snowden advised of
alternative community service for working off the fine.
Senator Sharp asked if day fines would cover DWI offenses.
Mr. Snowden responded negatively, noting that DWI involves a
mandatory jail sentence.
Senator Kerttula MOVED for passage of SCS CSHB 119 (Fin)
with individual recommendations. No objection having been
raised, SCS CSHB 119 (Fin) was REPORTED OUT of committee
with an $80.1 fiscal note from the Court System, and zero
notes from the Dept. of Law, Dept. of Public Safety, Dept.
of Corrections, and Dept. of Administration (one each from
the Office of Public Advocacy and the Public Defender
Agency). All members present signed the committee report
with a "do pass" recommendation. (Senator Jacko was absent
from the meeting and did not sign.)
CS FOR HOUSE BILL NO. 28(JUD) am
An Act relating to the penalty for providing alcoholic
beverages to a person under the age of 21; and
providing for an effective date.
Co-chair Pearce directed that CSHB 28(Jud)am be brought on
for discussion and referenced accompanying fiscal notes and
other file materials.
PETER ECKLUND, aide to Representative Williams, came before
committee. He then read the sponsor statement (appended to
these minutes as Attachment A) accompanying the bill. He
noted that the bill was introduced in response to the tragic
alcohol-related deaths of two youths in Ketchikan. The
purpose of the legislation is to strengthen the penalty for
providing alcoholic beverages to a person under the age of
21. Provisions of the bill change the penalty for second or
subsequent violations of law to a class "C" felony with a
maximum penalty of five years in prison and a $50,000 fine,
if the offender has been convicted within the past five
years. It also requires that warning signs be posted in
places where alcohol is sold.
In response to a question from Senator Kerttula, Mr. Ecklund
said the bill would not change current law. It merely
increases the penalty for second or subsequent offenses.
REPRESENTATIVE BILL WILLIAMS came before committee. Senator
Rieger referenced AS 04.16.051 and noted that it speaks to
furnishing (rather than selling) alcohol to minors. He then
voiced concern that an individual providing a beer to a
young adult might be guilty of a class C felony. He
inquired concerning other felonies within that class, noting
discussion of an earlier bill that listed stalking as an
unclassified misdemeanor. Representative Williams stressed
that class C felony provisions in the bill apply to a second
offense within five years. Senator Rieger voiced need to
reconcile the severity of the crime with the proposed
penalty. Mr. Ecklund noted that the first offense for
furnishing alcohol to a minor is a class A misdemeanor
involving up to one year in jail and a $5,000 fine.
Senator Kerttula raised concerns regarding private parties
in private homes involving a broad spectrum of ages (little
theater groups were used as an example). Although care is
taken to ensure that those under age do not imbibe, there
are nonetheless instances where temporary lack of vigilance
might place the host in jeopardy for unintentionally
furnishing alcohol to a minor. Representative Williams
noted the difference between being offered alcohol and
taking it and advised that the proposed bill is not aimed at
the situation described by Senator Kerttula.
Representative Williams advised that similar discussion was
had in both House Judiciary and House Finance. The bill
passed the House with no votes against it.
In the course of further discussion, Mr. Ecklund advised
that the statute makes no distinction between provision and
sale of alcohol to a minor.
Co-chair Pearce called for additional testimony on the bill.
None was forthcoming.
Senator Sharp MOVED that CSHB 28(Jud)am pass from committee
with individual recommendations. No objection having been
raised, CSHB 28(Jud)am was REPORTED OUT of committee with
the following fiscal notes:
Dept. of Corrections $57.9
Dept. of Revenue 2.2
Alaska Court System 18.8
Dept. of Law 0
Dept. of Public Safety 0
Dept. of Administration (OPA) 0
(PDA) 0
Co-chair Frank and Senators Kelly, Kerttula, and Sharp
signed the committee report with a "do pass" recommendation.
Co-chair Pearce and Senator Rieger signed "no
recommendation."
CS FOR HOUSE BILL NO. 183(FIN) am
An Act directing the identification and delineation of
a transportation and utility corridor between Fairbanks
and the Seward Peninsula; and providing for an
effective date.
Co-chair Pearce directed that CSHB 183(Fin)am be brought on
for discussion and referenced file materials, including a
position paper from the Dept. of Transportation and Public
Facilities indicating opposition to a portion of the bill.
WALT WILCOX, aide to Representative James, came before
committee. Directing attention to earlier mention of a
position paper from the Dept. of Transportation and Public
Facilities, Mr. Wilcox referenced a subsequent position
statement and noted that the objectionable section has been
removed from the bill. Co-chair Pearce sought verification
from the department. CLYDE STOLTZFUS, Special Assistant,
Dept. of Transportation and Public Facilities, indicated
support for the bill.
Senator Sharp noted that Senate Transportation added
language to accommodate Senator Kerttula. He then
specifically noted the following wording at page 1, lines 12
and 13:
together with adjacent sites that can be developed for
necessary construction materials
Senator Sharp then MOVED that SCS CSHB 183 (TRA) pass from
committee with individual recommendations and the
accompanying zero fiscal note. No objection having been
raised, SCS CSHB 183 (TRA) was REPORTED OUT of committee
with a zero House Finance Committee fiscal note for the
Dept. of Transportation and Public Facilities. Co-chair
Frank and Senators Kelly, Rieger, and Sharp signed the
committee report with a "do pass" recommendation. Co-chair
Pearce and Senator Kerttula signed "no recommendation."
CS FOR HOUSE BILL NO. 498(FIN)
An Act providing for exploration incentive credits for
activities involving locatable and leasable minerals
and coal deposits on certain land in the state; and
providing for an effective date.
Co-chair Pearce directed that CSHB 498(Fin) be brought on
for discussion and explained that it began the same as SB
371 which was heard by committee at the prior meeting. She
then referenced Amendment No. 1, by Senator Kerttula, and
Amendment No. 2, by Co-chair Frank. Senator Kelly voiced
his understanding that previous discussion of the issue
included limiting the bill to new exploration projects. He
then noted that the oil and gas incentive credit earlier
passed by the Senate reflects a "much tighter bill." He
spoke to provisions of that legislation and asked that CSHB
498(Fin) be held for consideration at a subsequent meeting.
Senator Kerttula asked that department staff speak to his
local hire amendment. Co-chair Pearce also noted that
Amendment No. 2, by Co-chair Frank, was requested by the
department and asked that staff come before committee at
this time.
JERRY GALLAGHER, Director, Division of Mining, Dept. of
Natural Resources, explained that Amendment No. 2 relates to
a concern expressed in Senate Resources regarding impact on
trust lands. The proposed amendment would allow the
department to make that determination by regulation. He
voiced his belief that credits could not be granted on trust
lands.
Senator Rieger inquired concerning amounts involved in
retroactive provisions back to January 1, 1994. Mr.
Gallagher remarked that no real answer is available since
the credit only applies to new mines that go into production
within the next fifteen years. Ongoing exploration as of
this date would be covered by the retroactive clause.
Senator Rieger asked if the credit would be applied "mine by
mine." Mr. Gallagher responded affirmatively. He directed
attention to page 3, line 2, and noted that addition of
"based on the production from the parcel or site" ties the
credit to a specific piece of land. Both exploration
expenditures and the credit are property specific.
Co-chair Pearce directed that the bill be HELD for action at
the evening meeting.
End: SFC-94, #64, Side 2
Begin: SFC-94, #66, Side 1
SENATE BILL NO. 313
An Act relating to the Comprehensive Health Insurance
Association and to health insurance provided to
residents of the state who are high risks; and
providing for an effective date.
Co-chair Pearce directed that SB 313 be brought on for
discussion. She noted that the bill was heard by both
Senate Labor and Commerce and Senate Health and Social
Services and that a majority of the committee had discussed
it in earlier committees.
CAROL CARROLL, aide to Senator Kerttula, came before
committee. She explained that the bill amends legislation
relating to a high risk health insurance pool established in
1992. It responds to problem areas identified by the
comprehensive health insurance association and would extend
existing legislation to health maintenance organizations.
Sections 3 and 4 provide additional forms of deductibles,
copayments, and maximums. After a year of experience, the
Association has indicated that some individuals would
purchase high risk insurance if it could be applied to
catastrophic illness and entail a large deductible. Section
5 broadens Association power to offer policies to groups
that maintain healthy lifestyles. Section 6 further defines
eligibility for the state plan. It would disqualify
residents eligible for coverage under small employer health
reinsurance association legislation passed last year.
Sections 7 and 8 require payment of the premium with the
request for insurance. Section 9 explicitly gives the
director of insurance ability to formulate policy and adopt
regulations. Section 10 provides Association board members
immunity from civil or criminal liability for acts and
omissions. This is especially important for public members.
Section 11 allows the director to accept an application for
coverage in cases where two denials of coverage seem to be
superfluous. Ms. Carroll further directed attention to the
sponsor statement (Attachment B) and sectional analysis
(Attachment C).
Co-chair Pearce queried members regarding disposition of the
legislation. Senator Kerttula attested to benefits of both
this and past legislation to small business owners. Co-
chair Frank MOVED that SB 313 pass from committee with
individual recommendations and the accompanying zero fiscal
note. Senator Sharp seconded the motion, voicing support
for passage. No objection having been raised, SB 313 was
REPORTED OUT of committee with a zero note from the Dept. of
Commerce and Economic Development. Co-chairs Pearce and
Frank and Senators Kerttula and Sharp signed the committee
report with a "do pass" recommendation. All other members
had left the meeting and did not sign the report.
RECESS
Co-chair Pearce announced that the meeting would be recessed
at this time and scheduled to reconvene at 5:30 p.m. The
meeting was recessed at approximately 10:30 a.m.
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