Legislature(1993 - 1994)
04/26/1994 05:55 PM Senate FIN
| Audio | Topic |
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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
March 3, 1994
9:20 a.m.
TAPES
SFC-94, #31, Side 1 (000-end)
SFC-94, #31, Side 2 (end-750)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 9:20 a.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Kelly,
Kerttula, Rieger and Sharp were present. Senator Jacko did
not attend the meeting.
ALSO ATTENDING: Duncan Fowler, Ombudsman, Office of the
Ombudsman; Bob Poe, Director, Information and Administrative
Services, Department of Environmental Conservation; C.E.
Swackhammer, Deputy Commissioner, Department of Public
Safety; Kenneth Bischoff, Division of Administrative
Services, Department of Public Safety; Lauren Campbell,
Director, Alaska Highway Safety Planning Agency, Department
of Public Safety; Dean J. Guaneli, Chief, Legal Services
Section, Criminal Division, Department of Law; Chip Thoma,
self; Virginia Stonkus, fiscal analyst, Legislative Finance
Division; and aides to committee members and other members
of the legislature.
VIA TELECONFERENCE: Walt Furnace, General Manager, Alaska
Support Industry Alliance, Anchorage, testified in support
of SB 215. Wayne Coleman, RCAC, Prince William Sound,
Kodiak, was on-line but due to lack of time did not testify.
SUMMARY INFORMATION
Cambridge Energy Research Associates, Inc. Contract:
Senator Kerttula spoke in support of contracting
Cambridge Energy Research Associates, Inc. to
provide a forecast of oil prices to the
Legislature. Senator Kerttula MOVED for
acceptance of the contract by the committee. No
objections being heard, IT WAS SO ORDERED and
signed by all members present.
SB 276: An Act relating to criminal justice information;
providing procedural requirements for obtaining
certain criminal justice information; and
providing for an effective date.
The committee ADOPTED CSSB 276(FIN) work draft
dated February 16, 1994 which incorporated Senate
Judiciary Committee amendments of February 15,
1994. Dean J. Guaneli, Chief, Legal Services
Section, Criminal Division, Department of Law,
testified in support of SB 276, and offered
amendment 1 which replaced wording for mandatory
fingerprinting. Discussion followed between Co-
chairs Pearce, Frank, Senators Kerttula, Kelly,
Rieger, and Sharp regarding various aspects of the
bill. Duncan Fowler, Ombudsman, Office of the
Ombudsman, spoke in support of SB 276. Amendment
1 was ADOPTED. Senators Rieger, Kerttula and
Kelly agreed to form a subcommittee to propose
amendments on issues discussed. CSSB 276(FIN)
work draft as amended was HELD in committee until
March 12, 1994 or until the subcommittee proposes
a new work draft.
SB 278: An Act relating to sobriety checkpoints; and
providing for an effective date.
C.E. Swackhammer, Deputy Commissioner, Department
of Public Safety testified in support of SB 278.
Discussion followed between Senators Kerttula,
Sharp, Rieger, Kelly, and Co-chair Frank regarding
fiscal notes, funding, and other related concerns.
Kenneth Bischoff, Division of Administrative
Services, Department of Public Safety, and Lauren
Campbell, Director, Alaska Highway Safety Planning
Agency, Department of Public Safety, appeared
briefly before committee to answer questions. SB
278 was HELD in committee until March 12, 1994.
CSSB 215: An Act relating to oil and hazardous substances;
(RES) redesignating the oil and hazardous substance
release response fund and its uses; repealing the
authority in law by which marine highway vessels
may be designed and constructed to aid in oil and
hazardous substance spill cleanup in state marine
water using money in the oil and hazardous
substance release response fund and the authority
of the Department of Environmental Conservation to
levy and collect fees for review of certain
submissions related to oil; altering requirements
applicable to liens for recovery of state
expenditures related to oil or hazardous
substances; terminating the nickel-per-barrel oil
conservation surcharge; levying and collecting two
new oil surcharges; and providing for the
suspension and reimposition of one of the new
surcharges; and providing for an effective date.
A teleconference was held and testimony was heard
by Walt Furnace, General Manager, Alaska Support
Industry Alliance, Anchorage, in support of SB
215. Wayne Coleman, RCAC, Prince William Sound,
Kodiak, was on-line but was not heard due to lack
of time. SB 215 was HELD in committee and another
teleconference will be held if requested.
Cambridge Energy Research Associates, Inc. Contract:
SENATOR KERTTULA MOVED that Cambridge Energy Research
Associates, Inc. contract be adopted. He went on to speak
in support of their work, felt they provided a separate
point of view and were very accurate in their forecasting of
oil prices. No objections being heard, the contract was
ADOPTED and signed by Co-chairs Pearce and Frank, Senators
Kerttula, Rieger, Kelly, and Sharp.
SENATE BILL NO. 276
An Act relating to criminal justice information;
providing procedural requirements for obtaining certain
criminal justice information; and providing for an
effective date.
CO-CHAIR PEARCE invited Dean J. Guaneli, Chief, Legal
Services Section, Criminal Division, Department of Law, to
speak to SB 276.
DEAN GUANELI said that for a number of years it had been
recognized that the state statutes relating to criminal
justice information systems, providing safeguards and
oversight over those systems, were in need of amendment. He
noted that the legislative auditor, the Division of
Legislative Legal Services, and consultants with the
Department of Public Safety had recommended changes. SB 276
was a product of several years of effort to provide
oversight over criminal justice information systems, to set
guidelines of how the information in those computer systems
would be disseminated, and to make other changes to the
system that were needed to provide adequate and
comprehensive records. He informed the committee that, at
the present time, no state statute required an individual
under arrest to be fingerprinted. In a large number of
instances, fingerprints were not taken. He said the only
way to have an accurate information system, which keeps
track of criminal history records, was to link those records
to fingerprints. This bill mandated that fingerprints be
taken and if for some reason a person bypassed the first
process, it mandated they be taken at the next stage of the
process.
Mr. Guaneli felt that the need for this legislation was also
made clear by federal legislation. The Brady Bill was on
example. He felt strongly that if criminal history records
were going to be given out - they should be accurate. The
FBI had criminal standards for criminal justice information
systems and those standards had been followed in SB 276. He
pointed out that there had been a separate bill going
through Senate Judiciary Committee that addressed
fingerprinting requirements only, and more simply and
directly than SB 276. From that bill, he had drafted a
finger-printing provision preferable to the section in SB
276 in the form of amendment 1, and offered it to the
committee for consideration.
Co-chair Pearce reminded the committee that when SB 276 had
been received in the Senate Finance Committee that the
Senate Judiciary Committee had passed SB 276 with an
amendment dated February 15, 1994, without drafting a CS.
She directed the members' attention to CSSB 276(FIN) work
draft dated February 16, 1994 that did incorporate those
Senate Judiciary amendments. Co-chair Frank MOVED for
adoption of CSSB 276(FIN) work draft dated February 16, 1994
for discussion purposes. No objection being heard, it was
ADOPTED.
Discussion was had by Senators Kerttula and Kelly regarding
the fiscal notes attached to the bill. Senator Kelly asked
if the fiscal note for the Department of Corrections in the
amount of $181,874 would include staffing requirements
required SB 276. Since there was not a representative from
the Department of Corrections, Co-chair Pearce requested the
department to provide that information to the committee.
Senator Kelly asked if the amendment now incorporated in
CSSB 276(FIN) work draft would effect the Department of
Corrections fiscal note.
Senator Kelly asked what fiscal effect amendment 1 would
have on SB 276. Mr. Guaneli said that the Department of
Corrections already required that everyone brought into
their facilities be fingerprinted. In some instances,
however, individuals were being missed, and this legislation
would tighten up procedures. He said the Department of
Corrections did not anticipate any significant increase in
the number of fingerprints taken, and therefore did not
believe there would be a fiscal impact. He believed there
might be a slight impact on local police agencies, but
admitted it was hard to assess. The bill had the backing of
the Alaska Association of the Chiefs of Police because they
realized fingerprinting requirements, although a small
burden, was necessary in order to provide an accurate
criminal justice information system.
Mr. Guaneli felt that SB 276 established a framework to
improve the information systems that currently exist.
Efforts were underway to link existing systems scattered
among the departments and make them more efficient. This
bill would also establish a board consisting of
commissioners from effected departments to oversee that
effort.
Senator Kerttula said this system was going to cost money.
He objected to fiscal notes that did not lay out the
complete cost. Mr. Guaneli said he would like to point out
that the improvements in this bill would be supported
partially by federal funding. If this legislation is in
place, the Department of Safety could take advantage of
federal funding and federal information systems. Mr.
Guaneli did admit the state would have some expenses in
setting up the new framework.
In answer to Senator Rieger, regarding page 4, lines 12-14,
stating that the commissioner could exempt certain persons
from the fingerprinting requirements, Mr. Guaneli said it
was intended to prevent certain circumstances where
fingerprints would have to be taken repetitively. Senator
Rieger asked if the provision requiring fingerprinting to be
done within 24 hours was always practical, and could it
cause any kind of "Miranda rights" allowing a person to go
free if the fingerprints were not taken. Mr. Guaneli felt
the 24-hour requirement was reasonable and if it did not
happen, technically an arrest warrant could be issued. More
practically, when the person appeared in court, the judge
would probably order fingerprints taken at that time. He
did not believe it could cause a person to be set free.
However, he believed if a person was arrested again and had
not been fingerprinted the first time, their offense could
be treated as a first rather than a second offense.
In answer to Senator Rieger, Mr. Guaneli voiced his opinion
that it was reasonable for regulations to be adopted, people
to be trained, and the advisory board to be formed in order
to make policy decisions by the July 1, 1994 effective date.
DUNCAN FOWLER, Ombudsman, Office of the Ombudsman, testified
in support of SB 276. He said the Office of the Ombudsman
had been interested in this legislation for the past three
years. He felt it was an important piece of policy
legislation that insured the integrity of the criminal
justice system records, enabled citizens to correct errors
in their criminal records, and most importantly, defined
rules for the collection, access and use of criminal justice
information. It would also set out penalties for the abuse
of information which was not addressed now. He said over
the past few years, one to two serious complaints a year had
been filed regarding the misuse of criminal justice
information. He believed some of them were serious enough,
if this framework had been in place, to have been
prosecuted. He reiterated that he supported SB 276 and felt
it would significantly assist the state in tying up loose
ends in this area.
Senator Kerttula said that California was using
fingerprinting to detect welfare fraud. Senator Rieger
asked if Senator Kerttula was suggesting an amendment to SB
276. Senator Kerttula agreed that he would not be opposed
to it.
CHIP THOMA, testifying as a private citizen, spoke in
support of SB 276. He said that in 1972 he worked with the
late Senator Terry Miller on previous legislation SB 378 and
SJR 9 on the right to privacy. He said legislative history
and the public's perception of the possible misuse of police
records supported the reasoning for this legislation. He
urged the committee's support of SB 276.
Co-chair Pearce asked the committee's will on amendment 1.
Mr. Guaneli again spoke to the amendment. Senator Sharp
MOVED for the conceptual adoption of amendment 1 by Mr.
Guaneli. No objection having been raised, the amendment was
ADOPTED for incorporation within a new Finance Committee
Substitute for the bill.
In answer to Senator Rieger, regarding page 8, provisions on
how criminal justice information may be released, Mr.
Guaneli said that there were no specific provisions, but at
this time it was done occasionally on a case by case basis.
Mr. Guaneli said these new provisions were recommendations
made several years ago by consultants to the Department of
Public Safety in a report that had found its way into SB
276. Senator Kerttula voiced his concern over privacy abuse
issues in those provisions. Mr. Guaneli said that the
preface for the entire section declared criminal justice
information confidential. That provision did not currently
exist. In addition, the United States Supreme Court had
interpreted the law to say that information within criminal
justice information systems (computerized data bases)
involve some questions of privacy even when all that was
kept are public records and convictions. If anything more
than statistics were given out, such as names and dates, the
law recognized this as confidential information. He felt it
was a good idea to have protections on this information. He
spoke of an instance where records were requested for
members of the ethic's committee and the department asked
the members to sign a waiver. This helped the department
realize from time to time the legislature would request such
information.
In answer to Senator Rieger, Mr. Guaneli said current
offender information refers to someone who was currently
charged with an offense, was moving their way through the
criminal justice information system, or was under the
supervision of the system (someone in prison, etc.).
Senator Rieger asked if a request could be made for a list
of individuals who had been convicted of a felony in the
last ten years. Mr. Guaneli said that this legislation
allowed the Department of Safety to charge a fee for that
service. He said that at the present the courts were not
linked by any computer system. Those records were kept
within the Department of Public Safety and were public.
Senator Rieger said that a blanket release of past criminal
offenses or past convictions which would include
misdemeanors made him very uncomfortable. Senator Kelly
voiced similar concerns.
Senators Sharp and Kelly asked for clarification on the
fiscal note for the Department of Corrections regarding
overtime for training and the length of the training.
Co-chair Pearce asked Senator Rieger to chair a subcommittee
which included Senators Kelly and Kerttula. She announced
that SB 276 would be HELD in committee until March 12, 1994,
or until the subcommittee proposed a new work draft.
SENATE BILL NO. 278
An Act relating to sobriety checkpoints; and providing
for an effective date.
Co-chair Pearce announced that SB 278 was before the
committee. She invited C.E. Swackhammer, Deputy
Commissioner, Dept. of Public Safety, to join the committee
at the table and speak to SB 278.
MR. SWACKHAMMER said that one mission of the Department of
Public Safety was to protect the traveling public on the
highways. In 1992, there were 89 traffic crashes that
resulted in 108 deaths, and 58.3% were alcohol related
accidents. He believed advertising in the media the
initiation of sobriety checkpoints would provide a deterrent
for impaired drivers, and, secondly, would remove impaired
drivers from the highways. The way the bill read was that
law enforcement agencies must submit a plan to the court
specifying time, location, implementation, sequence,
justification of the location, time, date, and within 10
days report back to the court with the information obtained.
End SFC-94 #31, Side 1
Begin SFC-94 #31, Side 2
Senator Kerttula pointed out that the state police had a
limited budget and already were putting a lot of time on the
highway. He proposed the idea that state police did not
spend enough time off the highways and in the community. He
suggested hiring security guards to staff such sobriety
checkpoints and have one trooper supervise the process. Mr.
Swackhammer said that federal funds would be used to
implement the checkpoints. The estimated cost for one four-
hour checkpoint would be $2,500 as detailed in the DOS
fiscal note. He admitted troopers would be paid overtime
for these checkpoints. Senator Kerttula reiterated his
concern regarding state trooper overtime and added expense
to the state.
Senator Sharp understood that because the helmet bill was
not going to pass, there would be federal funds available to
the Department of Safety in the amount of $2.5-5M. He said
the checkpoints would qualify for these federal funds up to
three years. He still felt it was a lot of money focused on
less than 10 percent of the causes of accidents in the
state. He listed other statistics that said, of the total
16,000 accidents, only 1,400 were alcohol related. He felt
that state troopers would be more effective on the road. He
did not deny that it was a good place to focus but felt the
troopers better served the state on the highway.
Mr. Swackhammer said that in citing accidents, 60 percent of
the people killed were in alcohol related accidents.
Senator Sharp disputed his statistics but agreed that it was
a disaster.
Senator Kerttula again asked why security guards could not
be used in the checkpoints. He asked Mr. Swackhammer to
propose that to the administration. Mr. Swackhammer said
that police officer training took about 16 weeks. He
maintained that processing a DWI was quite complicated, took
about 3 hours, and he did not believe it was a place where
security guards could be used.
Senator Rieger commented that the bill seemed to allow
municipal police and VPSOs to be used in sobriety
checkpoints. He asked if an arrest could be made for other
reasons than the purpose of the checkpoint. Mr. Swackhammer
said that there was no limitation once the stop had been
made but as a practical matter, the goal was to detect
impaired drivers and not impede the traveling public more
than needed. Mr. Swackhammer thought the troopers would not
write someone up for an equipment violation because of the
time it would take. Senator Rieger agreed that driving was
a privilege and not a right but he felt that the checkpoint
was an intrusion in people's lives. Mr. Swackhammer said,
as a practical matter, that would not be a problem.
Co-chair Frank shared Senator Rieger's concern regarding
privacy. He said that the checkpoint was mostly a deterrent
effect. He felt though, that to be an effective deterrent,
there must be a recurrent occurrence of the checkpoints. He
also felt the fiscal note should reflect that recurrent
occurrence and it would make it a very large expense.
Mr. Swackhammer quoted someone as saying that more troopers
on the road would be a deterrent. He said sobriety
checkpoints were just a small part of that deterrent. If
the department were to stage a checkpoint at $2,500 and
found no impaired drivers, that would be a success simply
because of the advertisement acting as a deterrent to drunk
driving. He stated there was not enough money to put
troopers in villages, or to have the presence needed to
deter but that should not prevent the department from trying
to reduce alcohol related fatalities. He said that was what
this legislation was about. Research would be done to
choose the best time for the best effect possible.
Co-chair Frank asked if the department had considered
confiscating the car when an individual has been convicted
of a DWI. He said that airplanes and guns could be taken
away. He felt chronic drinkers seem to be the problem and
deterrents such as checkpoints would not seem to effect the
chronic drunk driver. Mr. Swackhammer said that those
individuals somehow manage to find automobiles. Co-chair
Frank said that it would take a wide net to deter the
chronic drunk driver.
Senator Kelly asked for an explanation of page 3, line 18-
19, "sobriety checkpoint shall substantially conform." Mr.
Swackhammer said that guidelines would be set but the
choices of whether to stop every third car or every second
could be decided by the flow of traffic, etc. Senator Kelly
said he had concerns regarding the word "substantially."
In answer to Senator Kelly, Mr. Swackhammer said on page 4,
line 11, the words "production of documents" meant asking an
individual for their driver's license and registration.
Senator Kerttula said that maybe it should say exactly that.
Senator Kerttula asked for a breakdown of the checkpoint
costs. Mr. Swackhammer stated that it would consist of
paying four troopers four hours of overtime ($500 each) plus
equipment rental. Senator Kerttula observed that a
substantial amount of money was obtained from federal funds
for safety. In answer to Senator Kerttula, Mr. Swackhammer
did not believe that federal money could be used for
enhancing the training of VPSOs or increasing salaries.
LAUREN CAMPBELL, Director, Alaska Highway Safety Planning
Agency, Department of Public Safety, answered that federal
funds cannot be used for on-going programs. It also cannot
be used for salaries or to increase salaries. It was
designated for special enforcement projects that would
reduce serious injury or fatal accidents. Senator Kerttula
reiterated his proposal to hire security guards instead of
using state troopers on an overtime basis.
Senator Sharp asked Mr. Swackhammer to provide the committee
with 1993 statistics including alcohol related traffic
deaths on the highways.
Co-chair Frank asked how a fiscal note for $2,500 would
relate to SB 278, and did they intend to have more than one
checkpoint as the fiscal note presented. Mr. Swackhammer
said that the fiscal note represented one checkpoint. The
Department of Safety would apply for grant money to
implement the sobriety checkpoint program. Grant money and
resources dedicated to that program would determine the
number of checkpoints.
Co-chair Frank asked if the federal money was likely and
what other funds might be available for this program. Mr.
Campbell said that other moneys were available beside the
helmet money. Enacting the sobriety checkpoints would allow
a 5 percent increase, or about a $10,000 increase in federal
funds. He agreed that a grant could be written using
personnel other than troopers. In answer to Co-chair Frank,
Mr. Swackhammer said that using other than trooper personnel
in the checkpoints had more to do with management policy
than employee contracts. Mr. Swackhammer said that most
intoxicated individuals were not the most congenial and
cooperative people to deal with and specially trained
individuals were needed in those circumstances.
Co-chair Frank asked for a projection of a one-year program
rather than a fiscal note for one checkpoint.
Co-chair Pearce announced that SB 278 would be HELD in
committee until March 12, 1994. She asked committee members
to present amendments to SB 278 to her office no later than
March 11, 1994.
CS FOR SENATE BILL NO. 215(RES)
An Act relating to oil and hazardous substances;
redesignating the oil and hazardous substance release
response fund and its uses; repealing the authority in
law by which marine highway vessels may be designed and
constructed to aid in oil and hazardous substance spill
cleanup in state marine water using money in the oil
and hazardous substance release response fund and the
authority of the Department of Environmental
Conservation to levy and collect fees for review of
certain submissions related to oil; altering
requirements applicable to liens for recovery of state
expenditures related to oil or hazardous substances;
terminating the nickel-per-barrel oil conservation
surcharge; levying and collecting two new oil
surcharges; and providing for the suspension and
reimposition of one of the new surcharges; and
providing for an effective date.
Co-chair Pearce announced SB 215 was before the committee.
She said that Bob Poe, Director, Information and
Administrative Services, Department of Environmental
Conservation, and two individuals, via teleconference, were
waiting to testify.
WALT FURNACE, General Manager, Alaska Support Industry
Alliance (ASIA), Anchorage, said he hesitated to testify
again but wanted to take a little different stand. He said
ASIA was in strong support of SB 215. He wanted to address
some concerns others had voiced regarding this bill. The
first was that the split-nickel would not be sufficient
moneys to fund the oil and hazardous substance release
response fund. Testimony supported, under the split-nickel
approach fund, balances could range from $16-26M annually.
He believed expected expenditures of the fund had been
stated at $10-13M. It would appear there were more than
sufficient funds to meet the needs of the response fund.
The second concern voiced was that SB 215 represented a tax
break for the industry. The intent of the 1989 amendment to
Chapter 43 was to levy a 5-cent a barrel surcharge until the
sum of $50M was accumulated and then suspend that
collection. Testimony to date supported collection of from
$112-150M. Under SB 215, it appeared that, rather than a
tax break, it would provide for a proper adjustment of the
fund to include assurances of funding the $50M oil and
hazardous substance release contingency and abatement
mitigation account. Thirdly, there had been a rumor that
the fund was broke. He stated the fund was not broke and
anticipated the generation of $112-150M. SB 215 would
provide an opportunity to fine tune the fund. Lastly, the
taxing power was vested in the state, but the privilege of
taxing policy must be exercised carefully and equitably.
The general philosophy of taxation should be to only assess
tax to the extent needed to support services of government.
We must acknowledge that the petroleum industry provided
over 80 percent of state revenue. In regard to additional
taxes on this industry, how much is too much, and at what
point did the taxing policy become a deterrent to business
***FIN116PM
0AASFIN 0426941755
MINUTES
SENATE FINANCE COMMITTEE
April 26, 1994
5:55 p.m.
TAPES
SFC-94, #81, Side 1 (000-end)
SFC-94, #81, Side 2 (end-000)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 5:55 p.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Rieger,
Kerttula, Kelly, and Sharp were present. Senator Jacko did
not attend the meeting.
ALSO ATTENDING: Cheryl Sutton, aide to Representative
Moses, sponsor of HJR 34; Tim Sullivan, aide to
Representative Eldon Mulder, sponsor of HB 421; Don
Stolworthy, Director, Charitable Gaming Division, Department
of Revenue; Tom Dow, Vice President of Hotels, Princess
Tours; Clark Gruening, lobbyist, Alaska Visitor Association;
Jetta Whittaker, fiscal analyst, Legislative Finance
Division; representatives of the media, aides to committee
members and other members of the legislature.
SUMMARY INFORMATION
CSSB 341(RES): An Act relating to the Alaska Tourism
Marketing Council; and providing for an
effective date.
Discussion was had by Co-chair Frank, Pearce,
Senators Sharp and Kelly regarding "pro rata
share." Even though he had not planned to
speak to SB 341, Tom Dow, Vice President of
Hotels, Princess Tours, shared information
with the committee regarding the vacation
planner. Clark Gruening, lobbyist, Alaska
Visitor Association, also spoke to the bill.
Amendment 1 was ADOPTED. CSSB 341(FIN) was
REPORTED out of committee with individual
recommendations and a zero fiscal note for
the Department of Commerce & Economic
Development.
CSSB 370(JUD): An Act providing an exemption from gambling
laws for gambling conducted by cruise ships
for their ticketed passengers in the offshore
water of the state outside of ports;
requiring certain disclosures in connection
with promotions on board cruise ships and
making violation of that provision an unfair
trade practice; defining `cruise ship'; and
providing for exemption fees for certain
cruise ships before they can conduct gambling
in the offshore water of the state.
CSSB 370(FIN) work draft "D" was ADOPTED.
Amendment 1 was ADOPTED changing the word
"fees" in the title to the word "procedures."
Amendment 2 was ADOPTED providing for a
sunset for Sections 1, 2 and 3. CSSB
370(FIN) as amended was REPORTED out of
committee with individual recommendations,
and a zero fiscal note for the Department of
Revenue showing a revenue of $(295.0).
HB 421: An Act authorizing grants for temporary
housing assistance during emergencies and
disasters.
Tim Sullivan, aide to Representative Eldon
Mulder, testified in support of HB 421.
Discussion was had by Co-chairs Frank,
Pearce, Senators Rieger and Kelly regarding
assistance grants and temporary housing.
Conceptual Amendment 1 and 2 were ADOPTED.
HB 421 was HELD in committee until new
language for SCSHB 421(FIN) was complete and
could be rescheduled.
HJR 34: Requesting the Department of Commerce to give
a high priority to fisheries development
project grants for the Alaska salmon
industry.
Cheryl Sutton, aide to Representative Carl
Moses, sponsor of HJR 34, testified in
support of HJR 34. HJR 34 was REPORTED out
of committee with a "do pass" and a zero
fiscal note for the Department of Fish &
Game.
HOUSE JOINT RESOLUTION NO. 34:
Requesting the Department of Commerce to give a high
priority to fisheries development project grants for
the Alaska salmon industry.
CO-CHAIR PEARCE said that HJR 34 was before the committee.
She invited Cheryl Sutton to join the members at the table.
CHERYL SUTTON, fisheries specialist, aide to Representative
Carl Moses, House Special Committee on Fisheries, said that
HJR 34 requested that the United States Department of
Commerce give high priority to fisheries development grants
for the Alaska salmon industry. Ground fish development in
Alaska had received strong attention by the U.S. Department
of Commerce. She pointed out that the salmon industry had
undergone new stresses in its ability to compete in a
changing world market. The Saltonstall-Kennedy Act made
available to the Secretary of Commerce up to 30 percent of
the gross receipts under the customs laws from duties on
fisheries products. Each year the Secretary must use a
portion of those funds to make grants available to assist
persons in carrying out research and development projects
which address aspects of U.S. fisheries. These projects can
include harvesting, processing, associated infrastructures,
and other projects. The National Marine Fisheries Service
issues the conditions under which applications would be
accepted and funded. HJR 34 would ask Congress to place
salmon technology development in a prominent position for
project funding consideration. This form of governmental
assistance would benefit the industry, the state, and the
harvesters and processors in the salmon industry. She asked
for support for HJR 34.
Senator Rieger MOVED for passage of HJR 34 from committee
with individual recommendations. No objection being heard,
HJR 34 was REPORTED OUT of committee with a "do pass," and a
zero fiscal note for the Department of Fish & Game. Co-
chairs Pearce and Frank, Senators Rieger, Kelly, Kerttula
and Sharp signed "do pass."
HOUSE BILL NO. 421:
An Act authorizing grants for temporary housing
assistance during emergencies and disasters.
Co-chair Pearce announced that HB 421 was before the
committee.
Tim Sullivan, aide to Representative Eldon Mulder, said this
bill was introduced by request of Alaska Division of
Emergency Services. Currently people that were displaced
from their homes during a state-declared disaster have
temporary housing arrangements negotiated individually by
the Department of Military & Veteran Affairs. This can be a
lengthy and tedious process that takes time and energy away
from other disaster assistance. FEMA had streamlined this
process during a federal-declared disaster by making grants
directly to displaced individuals. These individuals made
their own housing arrangements reducing costs and removing
liability from the government as a lessor. This change in
state statutes would result in a more efficient response to
temporary housing needs during a state-declared disaster.
Senator Rieger asked if this would allow the Governor to
have his own capital budget for building or providing
housing. Mr. Sullivan said that during a state disaster,
individuals could find their own housing and they would
receive the grant directly.
In answer to Co-chair Pearce, Mr. Sullivan said he did not
know if there was a limit to the amount of the grant. Co-
chair Frank thought individuals were eligible for a $2,500
grant during disasters.
Senator Kelly voiced his concern that state grants be
subordinate to FEMA and other private insurance assistance
available. He MOVED conceptual amendment 1, changing page
1, line 11, to read "make temporary housing assistance
grants, subordinate to FEMA and private insurance
assistance." Senator Kerttula asked if the individual
amount should be capped. Co-chair Pearce reworded the
amendment to read "make grants for temporary housing
assistance subordinate to FEMA and private insurance
assistance, to eligible disaster victims who have located
temporary housing." Co-chair Frank referred to AS 26.23.090
that indicated, the "Governor was authorized to make
financial grants to an individual or family to meet disaster
related necessary expenses or serious needs of individuals
or families adversely affected by the disaster that cannot
otherwise adequately be met from other means of assistance."
He then referred to AS 26.23.100 relating to temporary
housing which said the department would make arrangements
for temporary housing. Mr. Sullivan reiterated that the
purpose of the legislation was to give individuals grants so
they could make their own temporary housing arrangements.
Senator Kelly MOVED conceptual amendment 1. No objection
being heard, amendment 1 was ADOPTED.
Co-chair Frank MOVED conceptual amendment 2 that said grants
to any individual or family made under AS 26.23.100 and AS
26.23.090 should not exceed $5000. No objection being
heard, it was ADOPTED.
Co-chair Pearce announced that a SCSHB 421(FIN) would be
HELD until another work draft could be written.
CS FOR SENATE BILL NO. 341(RES):
An Act relating to the Alaska Tourism Marketing
Council; and providing for an effective date.
Co-chair Pearce announced that CSSB 241(RES) was before the
committee. She said the Resources CS raised the
contribution by Alaska Tourism Marketing Council (ATMC) from
15 to 25 percent, and the sunset date extended to 1996.
In answer to Co-chair Frank, Co-chair Pearce said that under
the powers of ATMC, they could provide space to a qualified
trade association in publications and promotional materials
developed by the Council. She read from the statutes and
explained that for the Travel Planner that was out now, the
production costs were around $400,000 and the "pro rata
share" paid by the trade association was $200,000 or 50
percent. She understood that their contracted share was 50
percent but under the statute it referred to it as a "pro
rata share".
TOM DOW, Vice President of Hotels, Princess Tours, said that
he was not expecting to testify on SB 341 but he offered
information. He said the Vacation Planner contained
advertising which was sold to raise money for the industry
match, and the sale of labels were the two major fund
raising mechanisms. Those pages dedicated to advertising
were considered the "pro rata share" of the trade
association to carry the cost of the contribution. If the
book cost $400,000, and half of the book was advertising,
then that was how the 50 percent cost was reached. Co-chair
Pearce said that Bob Jacobson had just called those figures
into the committee.
After discussion was had by Co-chairs Pearce and Frank, and
Mr. Dow regarding budget figures and the pro rata share, Mr.
Dow indicated that the AA Board was in town tonight and
would be willing to answer questions for the committee. Co-
chair Frank asked what the pro rata share would be at 25
percent. Co-chair Pearce compared pro rata shares with
House and Senate numbers.
CLARK GRUENING, lobbyist for Alaska Visitors Association
(AVA), said that 15 percent was presently in statute and
that was calculated on the total amount of the budget which
included the industry contribution. One of the problems AVA
would face with a reduced state contribution was the ability
to sell ads at the present rate which raised $1.3M for the
current year. If the state share would go down (and it
would with either the House or Senate numbers) the price of
the ads would have to be raised and coverage would be
reduced.
Co-chair Frank said that if the budget was reduced, the
amount of ads would not have to be raised. Mr. Gruening
disagreed and said there would be slippage. Senator Sharp
said that was under the assumption that they would want to
reduce the program.
Co-chair Pearce read from the statute AS 44.33.715(a). Co-
chair Frank MOVED amendment 1 which deleted the word "not"
to subsection (13). No objection being heard, amendment 2
was ADOPTED.
End SFC-93 #81, Side 1
Begin SFC-93 #81, Side 2
Discussion was held by Co-chairs Frank and Pearce, and
Senator Kelly regarding ad sales and label sales for ATMC
matching money.
Co-chair Frank MOVED for passage of CSSB 341(FIN) from
committee with individual recommendations. No objection
being heard, CSSB 341(FIN) was REPORTED OUT of committee
with "individual recommendations," and a zero fiscal note
for the Department of Commerce & Economic Development. Co-
chairs Pearce and Frank signed "do pass." Senators Kelly,
Rieger and Sharp signed "no recommendation."
CS FOR SENATE BILL NO. 370(JUD):
An Act providing an exemption from gambling laws for
gambling conducted by cruise ships for their ticketed
passengers in the offshore water of the state outside
of ports; requiring certain disclosures in connection
with promotions on board cruise ships and making
violation of that provision an unfair trade practice;
defining `cruise ship'; and providing for exemption
fees for certain cruise ships before they can conduct
gambling in the offshore water of the state.
Co-chair Pearce announced that a proposed CSSB 370(FIN) work
draft "D" was before the committee. Co-chair Frank MOVED
for adoption of CSSB 370(FIN) work draft "D" for discussion
purposes. No objection being heard, it was ADOPTED.
Co-chair Pearce said CSSB 370(FIN) continued an exemption to
cruise ships so they can conduct gambling in the offshore
waters of Alaska if they pay an exemption fee. The fees
were found on page 2. She noted that there are no cruise
ships that came to Alaska carrying more than 2,000
passengers. The company also could decide to not exempt a
ship. Section 4 and 5 were added over co***FIN116PM
0AASFIN 0426941755
MINUTES
SENATE FINANCE COMMITTEE
April 26, 1994
5:55 p.m.
TAPES
SFC-94, #81, Side 1 (000-end)
SFC-94, #81, Side 2 (end-000)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 5:55 p.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Rieger,
Kerttula, Kelly, and Sharp were present. Senator Jacko did
not attend the meeting.
ALSO ATTENDING: Cheryl Sutton, aide to Representative
Moses, sponsor of HJR 34; Tim Sullivan, aide to
Representative Eldon Mulder, sponsor of HB 421; Don
Stolworthy, Director, Charitable Gaming Division, Department
of Revenue; Tom Dow, Vice President of Hotels, Princess
Tours; Clark Gruening, lobbyist, Alaska Visitor Association;
Jetta Whittaker, fiscal analyst, Legislative Finance
Division; representatives of the media, aides to committee
members and other members of the legislature.
SUMMARY INFORMATION
CSSB 341(RES): An Act relating to the Alaska Tourism
Marketing Council; and providing for an
effective date.
Discussion was had by Co-chair Frank, Pearce,
Senators Sharp and Kelly regarding "pro rata
share." Even though he had not planned to
speak to SB 341, Tom Dow, Vice President of
Hotels, Princess Tours, shared information
with the committee regarding the vacation
planner. Clark Gruening, lobbyist, Alaska
Visitor Association, also spoke to the bill.
Amendment 1 was ADOPTED. CSSB 341(FIN) was
REPORTED out of committee with individual
recommendations and a zero fiscal note for
the Department of Commerce & Economic
Development.
CSSB 370(JUD): An Act providing an exemption from gambling
laws for gambling conducted by cruise ships
for their ticketed passengers in the offshore
water of the state outside of ports;
requiring certain disclosures in connection
with promotions on board cruise ships and
making violation of that provision an unfair
trade practice; defining `cruise ship'; and
providing for exemption fees for certain
cruise ships before they can conduct gambling
in the offshore water of the state.
CSSB 370(FIN) work draft "D" was ADOPTED.
Amendment 1 was ADOPTED changing the word
"fees" in the title to the word "procedures."
Amendment 2 was ADOPTED providing for a
sunset for Sections 1, 2 and 3. CSSB
370(FIN) as amended was REPORTED out of
committee with individual recommendations,
and a zero fiscal note for the Department of
Revenue showing a revenue of $(295.0).
HB 421: An Act authorizing grants for temporary
housing assistance during emergencies and
disasters.
Tim Sullivan, aide to Representative Eldon
Mulder, testified in support of HB 421.
Discussion was had by Co-chairs Frank,
Pearce, Senators Rieger and Kelly regarding
assistance grants and temporary housing.
Conceptual Amendment 1 and 2 were ADOPTED.
HB 421 was HELD in committee until new
language for SCSHB 421(FIN) was complete and
could be rescheduled.
HJR 34: Requesting the Department of Commerce to give
a high priority to fisheries development
project grants for the Alaska salmon
industry.
Cheryl Sutton, aide to Representative Carl
Moses, sponsor of HJR 34, testified in
support of HJR 34. HJR 34 was REPORTED out
of committee with a "do pass" and a zero
fiscal note for the Department of Fish &
Game.
HOUSE JOINT RESOLUTION NO. 34:
Requesting the Department of Commerce to give a high
priority to fisheries development project grants for
the Alaska salmon industry.
CO-CHAIR PEARCE said that HJR 34 was before the committee.
She invited Cheryl Sutton to join the members at the table.
CHERYL SUTTON, fisheries specialist, aide to Representative
Carl Moses, House Special Committee on Fisheries, said that
HJR 34 requested that the United States Department of
Commerce give high priority to fisheries development grants
for the Alaska salmon industry. Ground fish development in
Alaska had received strong attention by the U.S. Department
of Commerce. She pointed out that the salmon industry had
undergone new stresses in its ability to compete in a
changing world market. The Saltonstall-Kennedy Act made
available to the Secretary of Commerce up to 30 percent of
the gross receipts under the customs laws from duties on
fisheries products. Each year the Secretary must use a
portion of those funds to make grants available to assist
persons in carrying out research and development projects
which address aspects of U.S. fisheries. These projects can
include harvesting, processing, associated infrastructures,
and other projects. The National Marine Fisheries Service
issues the conditions under which applications would be
accepted and funded. HJR 34 would ask Congress to place
salmon technology development in a prominent position for
project funding consideration. This form of governmental
assistance would benefit the industry, the state, and the
harvesters and processors in the salmon industry. She asked
for support for HJR 34.
Senator Rieger MOVED for passage of HJR 34 from committee
with individual recommendations. No objection being heard,
HJR 34 was REPORTED OUT of committee with a "do pass," and a
zero fiscal note for the Department of Fish & Game. Co-
chairs Pearce and Frank, Senators Rieger, Kelly, Kerttula
and Sharp signed "do pass."
HOUSE BILL NO. 421:
An Act authorizing grants for temporary housing
assistance during emergencies and disasters.
Co-chair Pearce announced that HB 421 was before the
committee.
Tim Sullivan, aide to Representative Eldon Mulder, said this
bill was introduced by request of Alaska Division of
Emergency Services. Currently people that were displaced
from their homes during a state-declared disaster have
temporary housing arrangements negotiated individually by
the Department of Military & Veteran Affairs. This can be a
lengthy and tedious process that takes time and energy away
from other disaster assistance. FEMA had streamlined this
process during a federal-declared disaster by making grants
directly to displaced individuals. These individuals made
their own housing arrangements reducing costs and removing
liability from the government as a lessor. This change in
state statutes would result in a more efficient response to
temporary housing needs during a state-declared disaster.
Senator Rieger asked if this would allow the Governor to
have his own capital budget for building or providing
housing. Mr. Sullivan said that during a state disaster,
individuals could find their own housing and they would
receive the grant directly.
In answer to Co-chair Pearce, Mr. Sullivan said he did not
know if there was a limit to the amount of the grant. Co-
chair Frank thought individuals were eligible for a $2,500
grant during disasters.
Senator Kelly voiced his concern that state grants be
subordinate to FEMA and other private insurance assistance
available. He MOVED conceptual amendment 1, changing page
1, line 11, to read "make temporary housing assistance
grants, subordinate to FEMA and private insurance
assistance." Senator Kerttula asked if the individual
amount should be capped. Co-chair Pearce reworded the
amendment to read "make grants for temporary housing
assistance subordinate to FEMA and private insurance
assistance, to eligible disaster victims who have located
temporary housing." Co-chair Frank referred to AS 26.23.090
that indicated, the "Governor was authorized to make
financial grants to an individual or family to meet disaster
related necessary expenses or serious needs of individuals
or families adversely affected by the disaster that cannot
otherwise adequately be met from other means of assistance."
He then referred to AS 26.23.100 relating to temporary
housing which said the department would make arrangements
for temporary housing. Mr. Sullivan reiterated that the
purpose of the legislation was to give individuals grants so
they could make their own temporary housing arrangements.
Senator Kelly MOVED conceptual amendment 1. No objection
being heard, amendment 1 was ADOPTED.
Co-chair Frank MOVED conceptual amendment 2 that said grants
to any individual or family made under AS 26.23.100 and AS
26.23.090 should not exceed $5000. No objection being
heard, it was ADOPTED.
Co-chair Pearce announced that a SCSHB 421(FIN) would be
HELD until another work draft could be written.
CS FOR SENATE BILL NO. 341(RES):
An Act relating to the Alaska Tourism Marketing
Council; and providing for an effective date.
Co-chair Pearce announced that CSSB 241(RES) was before the
committee. She said the Resources CS raised the
contribution by Alaska Tourism Marketing Council (ATMC) from
15 to 25 percent, and the sunset date extended to 1996.
In answer to Co-chair Frank, Co-chair Pearce said that under
the powers of ATMC, they could provide space to a qualified
trade association in publications and promotional materials
developed by the Council. She read from the statutes and
explained that for the Travel Planner that was out now, the
production costs were around $400,000 and the "pro rata
share" paid by the trade association was $200,000 or 50
percent. She understood that their contracted share was 50
percent but under the statute it referred to it as a "pro
rata share".
TOM DOW, Vice President of Hotels, Princess Tours, said that
he was not expecting to testify on SB 341 but he offered
information. He said the Vacation Planner contained
advertising which was sold to raise money for the industry
match, and the sale of labels were the two major fund
raising mechanisms. Those pages dedicated to advertising
were considered the "pro rata share" of the trade
association to carry the cost of the contribution. If the
book cost $400,000, and half of the book was advertising,
then that was how the 50 percent cost was reached. Co-chair
Pearce said that Bob Jacobson had just called those figures
into the committee.
After discussion was had by Co-chairs Pearce and Frank, and
Mr. Dow regarding budget figures and the pro rata share, Mr.
Dow indicated that the AA Board was in town tonight and
would be willing to answer questions for the committee. Co-
chair Frank asked what the pro rata share would be at 25
percent. Co-chair Pearce compared pro rata shares with
House and Senate numbers.
CLARK GRUENING, lobbyist for Alaska Visitors Association
(AVA), said that 15 percent was presently in statute and
that was calculated on the total amount of the budget which
included the industry contribution. One of the problems AVA
would face with a reduced state contribution was the ability
to sell ads at the present rate which raised $1.3M for the
current year. If the state share would go down (and it
would with either the House or Senate numbers) the price of
the ads would have to be raised and coverage would be
reduced.
Co-chair Frank said that if the budget was reduced, the
amount of ads would not have to be raised. Mr. Gruening
disagreed and said there would be slippage. Senator Sharp
said that was under the assumption that they would want to
reduce the program.
Co-chair Pearce read from the statute AS 44.33.715(a). Co-
chair Frank MOVED amendment 1 which deleted the word "not"
to subsection (13). No objection being heard, amendment 2
was ADOPTED.
End SFC-93 #81, Side 1
Begin SFC-93 #81, Side 2
Discussion was held by Co-chairs Frank and Pearce, and
Senator Kelly regarding ad sales and label sales for ATMC
matching money.
Co-chair Frank MOVED for passage of CSSB 341(FIN) from
committee with individual recommendations. No objection
being heard, CSSB 341(FIN) was REPORTED OUT of committee
with "individual recommendations," and a zero fiscal note
for the Department of Commerce & Economic Development. Co-
chairs Pearce and Frank signed "do pass." Senators Kelly,
Rieger and Sharp signed "no recommendation."
CS FOR SENATE BILL NO. 370(JUD):
An Act providing an exemption from gambling laws for
gambling conducted by cruise ships for their ticketed
passengers in the offshore water of the state outside
of ports; requiring certain disclosures in connection
with promotions on board cruise ships and making
violation of that provision an unfair trade practice;
defining `cruise ship'; and providing for exemption
fees for certain cruise ships before they can conduct
gambling in the offshore water of the state.
Co-chair Pearce announced that a proposed CSSB 370(FIN) work
draft "D" was before the committee. Co-chair Frank MOVED
for adoption of CSSB 370(FIN) work draft "D" for discussion
purposes. No objection being heard, it was ADOPTED.
Co-chair Pearce said CSSB 370(FIN) continued an exemption to
cruise ships so they can conduct gambling in the offshore
waters of Alaska if they pay an exemption fee. The fees
were found on page 2. She noted that there are no cruise
ships that came to Alaska carrying more than 2,000
passengers. The company also could decide to not exempt a
ship. Section 4 and 5 were added over concern regarding
promotions on board the cruise ships.
Co-chair Pearce said that on page 1, line 4, the word
"procedures" should replace the word "fees". Senator Kelly
MOVED amendment 1 making the word change. Senator Rieger
conceptually OBJECTED to the reason behind this amendment.
No further objection being heard, amendment 1 was ADOPTED.
Co-chair Frank MOVED amendment 2 which would sunset Sections
1, 2, and 3 as of December 30, 1996. Senator Kelly
OBJECTED. Co-chair Pearce called for a show of hands and
the motion carried on a vote of 3-2 (Co-chairs Pearce and
Frank, and Senator Sharp were in favor. Senators Rieger and
Kelly were opposed. Senator Kerttula was absent from the
meeting when the vote was taken.)
Co-chair Pearce estimated income from the exemption
procedures to be approximately $590,000. In answer to
Senator Kelly, she said there was no way to know if all
would play.
Co-chair Pearce asked if an exemption rather than an actual
license would result in a lower fiscal note for the
Department of Revenue.
DON STOLWORTHY, Director, Charitable Gaming Division,
Department of Revenue, agreed that the term exemptions
rather than licenses removed the inferred procedures. He
said processing the ships this year would not be very
expensive and he estimated the new fiscal note to be
somewhere between $50-80,000. Co-chair Frank pointed out
that if only 5 companies were involved, the ships could be
processed all at once.
Discussion followed between Co-chairs Frank and Pearce,
Senator Kelly, and Mr. Stolworthy, regarding how the
department would enforce this legislation. Co-chair Pearce
suggested that the Department not bring a $50-80,000 fiscal
note to the department.
TOM DOW, Vice President of Hotels, Princess Tours, spoke in
support of CSSB 370(FIN). He was surprised at the sunset
that was added to the bill. He said it would cause an air
of uncertainty in several years. He asked the committee to
reconsider the sunset. He thought it would also cause some
cumbersome analysis for those that were doing planning 3-4
years out.
Co-chair Pearce voiced her opinion that all gaming should be
stopped on ships or anywhere. She also said, that if gaming
took place, the state should receive a percent of the take
and that the books should be available to the state. She
said the sunset in two or three years would provide a place
for the legislature to analyze if gambling on cruise ships
should continue.
In answer to Senator Kelly, Mr. Dow said that all six of the
Princess Tour cruise ships would pay for the exemption as
provided for in the bill.
Senator Kelly MOVED for passage of CSSB 370(FIN) from
committee with individual recommendations. No objection
being heard, it was REPORTED OUT with individual
recommendations and with a fiscal note for $43.6 showing a
revenue of $620.0. Co-chair Frank, and Senator Rieger
signed "do pass." Senator Sharp and Kelly signed "no
recommendation."
ADJOURNMENT
The meeting was recessed at approximately 7:15 p.m.
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