Legislature(1993 - 1994)

04/29/1994 09:20 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 29, 1994                                        
                            9:20 a.m.                                          
  TAPES                                                                        
                                                                               
  SFC-94, #78, Side 1 (000-end)                                                
  SFC-94, #78, Side 2 (575-end)                                                
  SFC-94, #80, Side 1 (000-317)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-chairman   Steve   Frank   convened    the   meeting   at                 
  approximately 9:20 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Pearce  and Frank, Senators  Kelly                 
  and Sharp  were present  when the  meeting began.   Senators                 
  Rieger  and  Kerttula  arrived  moments  after  the  meeting                 
  commenced.  Senator Jacko arrived as it was in progress.                     
                                                                               
  ALSO   ATTENDING:      Senator   Leman;   Senator   Lincoln;                 
  Representative  James;  Nancy  Slagle,  Director  of  Budget                 
  Review,  Office of  Management  and Budget;  Helvi  Sandvik,                 
  Deputy Commissioner,  Dept.  of  Transportation  and  Public                 
  Facilities; C. W. Swackhammer, Deputy Commissioner, Dept. of                 
  Public Safety; Kate Tesar, representing  the City of Haines;                 
  Portia  Babcock,  aide  to   Senator  Leman;  Mike   Greany,                 
  Director, Legislative Finance  Division; Fred Fisher, fiscal                 
  analyst,  Legislative   Finance  Division;   and  aides   to                 
  committee members and other members of the legislature.                      
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SB 363 -  ACT  MAKING  APPROPRIATIONS  FOR  CAPITAL  PROJECT                 
  MATCHING       GRANT FUNDS AND FOR CAPITAL PROJECTS                          
                                                                               
            Discussion of  CSSB 363 (Finance)  work draft  "J"                 
  was had        together with Amendments  1 through 14  which                 
                 were reviewed  for possible  offering on  the                 
                 floor of the Senate rather than incorporation                 
                 within  the Senate  Finance bill.    CSSB 363                 
                 (Finance) was then REPORTED OUT of  committee                 
                 with a "do pass" recommendation.                              
                                                                               
  HB 351 -  CONCEALED HANDGUN PERMITS;WEAPONS POSS.                            
                                                                               
            Representative  James,  Portia  Babcock, and  C.W.                 
            Swackhammer came  before committee to speak to the                 
            bill.  It  was subsequently HELD in  committee for                 
            further discussion.                                                
                                                                               
  SB 363                                                                       
                                                                               
                                                                               
  SB  363  -  ACT MAKING  APPROPRIATIONS  FOR  CAPITAL PROJECT                 
  MATCHING           GRANT FUNDS AND FOR CAPITAL PROJECTS                      
                                                                               
  [The first portion of  the meeting on tape SFC-94,  78, Side                 
  1,  did  not  record.    Minutes  reflect  transcription  of                 
  shorthand notes.]                                                            
                                                                               
  Upon convening the meeting, Co-chair Pearce directed that SB
  363 (Act making appropriations  for capital project matching                 
  grant funds and  for capital projects; and  providing for an                 
  effective date)  be  brought on  for discussion.   She  then                 
  referenced work  draft  CS  SB  363  (Finance)  (8-GS2043\J,                 
  Cramer,  4/27/94)  which  she  explained  had  earlier  been                 
  distributed to members.  Senator Sharp MOVED for adoption of                 
  work draft "J."   No objection  having been raised, the  "J"                 
  version of CSSB 363 (Finance was ADOPTED.                                    
                                                                               
  Co-chair  Pearce  next  directed attention  to  a  packet of                 
  amendments   which  she  explained  would  be  discussed  in                 
  committee for possible offering on the floor  of the Senate.                 
  She  advised that  all amendments have  the approval  of the                 
  House Finance Committee.  Senator Kerttula indicated he also                 
  had amendments he wished to offer.                                           
                                                                               
  Amendment No. 1 and 1A (Sen. Pearce/OMB)                                     
                                                                               
  Co-chair  Pearce  initially  referred  to  Amendment  No.  1                 
  listing  a series  of  increases  and  offsetting  decreases                 
  totaling $665.0 in  general funds.   The original  Amendment                 
  No.  1  was subsequently  replaced  with Amendment  1A which                 
  effected the following increases and decreases:                              
                                                                               
       Increases                                                               
            DNR-State Land Acquisition              $  265.0                   
            DF&G-Mgmt. under ANILCA                    200.0                   
                                                     +   200.0                 
  F&G                                                                          
                                                                               
  Funds                                                                        
            DNR-Forest Practices                       200.0                   
       Decreases                                                               
            DH&SS-API Repairs                          400.0                   
            DNR-RS 2477                                300.0                   
            DF&G-Statewide Maintenance                 300.0                   
            DOTPF-Central Region Def.Maint.          1,680.0                   
                  Northern Region Def. Maint.        1,610.0                   
                  Southeast Def. Maint.              1,085.0                   
                  Dalton Highway Def. Maint.           890.0                   
                                                                               
  (See  pages  7,  8,  and  9  of these  minutes  for  further                 
  discussion of Amendment 1A.)                                                 
                                                                               
  Amendment No. 2 (Sen. Pearce)                                                
                                                                               
                                                                               
  Co-chair Pearce explained  that the amendment would  add "or                 
  from another lender" to language relating to construction of                 
  the Port  Chilkoot cruise ship dock at Haines.  (See pages 5                 
  and 6 for further discussion of Amendment No. 2)                             
                                                                               
  Amendment No. 3 (Sen. Sharp)                                                 
                                                                               
  Co-chair Pearce indicated  that funding within the  Dept. of                 
  Revenue  slated   for  public   housing  (AHFC)   should  be                 
  appropriated separately under the federal grants and special                 
  needs  housing program  and  affordable  housing and  energy                 
  efficiency  programs.     Separate  appropriation   provides                 
  accountability and instruction to the corporation  regarding                 
  legislative intent.  The Co-chair further directed attention                 
  to a tabulation listing specific projects and appropriations                 
  therefor.  She added that the agency came to the legislature                 
  with the $41  million request.   (See page 6 for  additional                 
  comments on Amendment No. 3)                                                 
                                                                               
  Amendment No. 4 (Sen. Pearce)                                                
                                                                               
  Amendment  No.  4  would  add  funding  for  Central  Region                 
  programs  and  Anchorage  International   Airport  equipment                 
  purchases.  It also inserts a new allocation under Southeast                 
  Region programs.  Co-chair Pearce  explained that the latter                 
  insertion is  necessary because  funding  for Sitka  Airport                 
  lighting  improvements  was inadvertently  left  out  of the                 
  Senate draft.  The insertion does not change the match.                      
                                                                               
  Amendment No. 5 (Sen. Pearce)                                                
                                                                               
  Co-chair Pearce said  that Amendment No. 5  effects a change                 
  in intent language relating to  RuralCap, requiring a report                 
  to the legislature  on use  of CSBG funds  for the  economic                 
  development catalog "before grant funds are released" rather                 
  than  in  the  next  fiscal  year.    An  additional  change                 
  substitutes "will provide" for  "has provided" in enumerated                 
  requirements the catalog must meet.                                          
                                                                               
  Amendment No. 6 (Sen. Pearce/OMB)                                            
                                                                               
  Co-chair Pearce  indicated that funding and language changes                 
  for municipal  matching grants and  unincorporated community                 
  matching  grants set forth on Amendment No. 6 were requested                 
  and approved by the Office of Management and Budget.                         
                                                                               
  Amendment No. 7 (Sen. Pearce/OMB)                                            
                                                                               
  Co-chair Pearce indicated  that projects in Amendment  No. 7                 
  were requested and approved by  the Office of Management and                 
  Budget.  In response to questions from Senator Rieger, NANCY                 
  SLAGLE, Director of Budget Review,  Office of Management and                 
  Budget, came before committee.                                               
                                                                               
                                                                               
  [The remainder of  the minutes reflect transcription  from a                 
  tape recording of the meeting.]                                              
                                                                               
  Mrs.  Slagle  explained  that   communities  listed  in  the                 
  amendment  identified projects  for which  additional moneys                 
  are needed.   The  amendment makes  funding adjustments  for                 
  communities  with  remaining  balances  in  their  accounts.                 
  Senator Rieger questioned  whether funding from FY  94 would                 
  already have  been appropriated to another  federal matching                 
  grant.   Mrs. Slagle indicated  that transitional procedures                 
  allow OMB to provide moneys to  communities until the end of                 
  the fiscal year.  The proposed amendment could provide  both                 
  FY 94 and 95,  together, so that communities would  have the                 
  funding available for next year.  She further explained that                 
  moneys  set  forth  on the  amendment  would  flow from  the                 
  capital matching grant fund rather than the general fund.                    
                                                                               
  Amendment No. 8 (Sen. Pearce/DOE, Postsecondary)                             
                                                                               
  Co-chair  Pearce  noted  that  intent language  relating  to                 
  appropriation of  $100.0 in  corporate receipts  for a  cost                 
  benefit analysis  of  contracting out  Alaska  Student  Loan                 
  Program servicing  to a third-party, private  contractor was                 
  requested by  the Postsecondary Education  Commission.  Such                 
  an arrangement has been discussed for many years.  The board                 
  approached local  banks with  the prospect,  but banks  have                 
  declined  interest.    The  new  director  of  Postsecondary                 
  Education feels  there may  be an  opportunity to  "get some                 
  national firm to come in."                                                   
                                                                               
  Amendment No. 9 (Sen. Adams)                                                 
                                                                               
  Co-chair  Pearce pointed to amendment language, requested by                 
  Senator Adams, for capital grant projects for the  cities of                 
  Mountain Village and Unalakleet.   Dollar amounts remain the                 
  same.                                                                        
                                                                               
  Amendment No. 10 (Sen. Pearce)                                               
                                                                               
  Co-chair  Pearce  explained  that  the  amendment   contains                 
  language  effecting  changes  in  descriptions  of  election                 
  districts  to  fit projects  in the  proper districts.   She                 
  noted movement of major highways into  statewide designation                 
  within ED 99  and need to  change the Seward Highway  Canyon                 
  Creek project  from Anchorage  areawide to  statewide.   Co-                 
  chair Pearce further pointed to page 18, lines 23 and 24, of                 
  the draft capital budget and noted that land acquisition for                 
  the  Galbraith  Airport is  not  on the  priority  list from                 
  municipalities.   It should thus  be deleted from  the bill.                 
  The same is true for land acquisition for the Prospect Creek                 
  Airport shown on page 19, lines 14 and 15.  Amendment No. 10                 
  also inserts the word "roof" to language relating to funding                 
  for the Ryan Middle School at Fairbanks.                                     
                                                                               
                                                                               
  Amendment No. 11 (Sen. Kerttula)                                             
                                                                               
  Senator  Kerttula  explained   that  rural  districts   have                 
  requested  increased funding  for public  broadcasting.   He                 
  then directed attention  to the list of  stations to receive                 
  portions of the $590.6 request.                                              
                                                                               
  Amendment No. 12 (Sen. Kerttula)                                             
                                                                               
  Senator  Kerttula   explained  that  the   requested  $119.4                 
  relating  to  the  potato seed  virus  study  was originally                 
  requested by  the governor.    The project  is statewide  in                 
  nature.  The  studies would be  conducted by a scientist  in                 
  Fairbanks.                                                                   
                                                                               
  Co-chair Pearce subsequently  advised that, in an  effort to                 
  keep the  capital budget below  $100 million--the  agreement                 
  between  the   House  and  Senate--she  would   oppose  both                 
  Amendments 11 and 12  when they are offered on  the floor of                 
  the Senate.   Senator Kerttula subsequently advised  that he                 
  would withdraw Amendment No. 12.                                             
                                                                               
  Amendment No. 2                                                              
                                                                               
  Senator Rieger asked that discussion revert to Amendment No.                 
  2  and raised  questions regarding proposed  construction of                 
  the  Haines  dock.   He  voiced his  understanding  that the                 
  proposed $1 million loan would be matched by a "term loan of                 
  some sort."  He said he was uneasy with language  within the                 
  bill  and requested  additional information.   Reading  from                 
  backup material, Co-chair Pearce explained that grant  funds                 
  would combine with  city funds and loan  proceeds to provide                 
  an estimated $2.3 million in total construction costs.  That                 
  would build a 120 foot extension, seaward from  the existing                 
  dock.  The  City of  Haines and Haines  Chamber of  Commerce                 
  have  spent $35 for  preliminary engineering and permitting.                 
  The  city  has expended  an  additional $17.0  for lighting.                 
  Preliminary   analysis  shows   that  dock   revenue,  after                 
  operating  expenses  supplemented with  local  tax revenues,                 
  will service debt of $600.0 to $800.0.                                       
                                                                               
  Senator Rieger asked what would happen should the project be                 
  redesigned to cost $1.1  million.  Would the city  only have                 
  to borrow $100.0  while the $1  million would flow from  the                 
  state?  KATE TESAR,  came before committee on behalf  of the                 
  city of  Haines.  She  explained that language  requested in                 
  Amendment No. 2 was proposed as  a result of efforts between                 
  the city and the Dept. of Commerce and Economic  Development                 
  to develop a funding plan for  submission to AIDEA, once the                 
  $1  million  is  in  place.   That  is  the  reason  for the                 
  contingency language.  The loan would  not flow to Haines if                 
  the total funding package does not materialize.  The wording                 
  "or from another lender"  was added to allow the  project to                 
                                                                               
                                                                               
  expand to other  lenders in the  event total funding is  not                 
  provided by  AIDEA, and  the city  must seek  other sources.                 
  Current language only allows for procurement of funding from                 
  AIDEA.   The city seeks the flexibility  of obtaining moneys                 
  elsewhere.  Senator  Rieger asked  if the arrangement  would                 
  involve a term loan.   Ms. Tesar responded affirmatively and                 
  indicated a term of twenty or thirty years.                                  
                                                                               
  Directing attention to page 3, line 12, Senator Sharp voiced                 
  concern that "$900,000 or another amount" could be construed                 
  as a lesser amount.   He then voiced his  understanding that                 
  the amount would  commence at  $900,000 and increase  rather                 
  than  decrease.    Kate  Tesar  explained that  the  present                 
  funding package calls  for a total  of $2.2 million.   Plans                 
  have been in place for a number of years, and the  city does                 
  not foresee spending more than $2.2  million.  Senator Sharp                 
  suggested addition of "at least"  before the $900,000 figure                 
  in the  bill.   He  said that  would allay  fears that  city                 
  participation  might  decrease  substantially.   Kate  Tesar                 
  responded that  she did  not foresee  the amount  decreasing                 
  below $900,000 because that amount  would be needed to  fund                 
  the plan now in place.                                                       
                                                                               
  Senator Rieger  and Senator  Sharp advised  that they  would                 
  work on possible amendment language  to apply when Amendment                 
  No. 2 is offered on the floor of the Senate.                                 
                                                                               
  Amendment No. 3                                                              
                                                                               
  Redirecting attention  to  Amendment No.  3, Senator  Rieger                 
  noted earlier concerns pertaining to  the Cedar Park Housing                 
  project in  Juneau.  He questioned expenditure of $8 million                 
  to  rebuild  39 units.    Senator  Sharp explained  that  in                 
  discussions of  low-income, rental  housing  with AHFC,  the                 
  corporation assured it would receive $4.5 million in federal                 
  funds for the project.  That is a major change.   The amount                 
  of  needed  corporate  receipts  was  thus reduced  from  $8                 
  million to $3.5  million.  Those receipts  will leverage the                 
  federal moneys.   Senator Rieger  voiced concern that  total                 
  funding of $8  million for  39 units equates  to $200.0  per                 
  unit.  That  appears out of  line for a multifamily  housing                 
  project.  Co-chair Pearce voiced her understanding that even                 
  if  the  project is  not rebuilt,  the old  project contains                 
  asbestos and would have to be torn down.  A large portion of                 
  the $8 million funds removal of the old building.                            
                                                                               
  Co-chair  Pearce  directed  that   the  meeting  be  briefly                 
  recessed pending receipt  of two additional  amendments from                 
  the Office of Management and Budget.                                         
                                                                               
                       RECESS - 9:50 A.M.                                      
                     RECONVENE - 10:05 A.M.                                    
                                                                               
  Amendment No. 13 (Sen. Miller)                                               
                                                                               
                                                                               
  Upon  reconvening  the  meeting,  Co-chair  Pearce  directed                 
  attention  to  Amendment  No.  13 by  Senator  Miller.   She                 
  explained that the Tanana River road, located in Nenana,  is                 
  in need of  stabilization.  The proposed  amendment contains                 
  the proper description change.                                               
                                                                               
  Amendment No. 14                                                             
                                                                               
  Amendment No. 14 was not presented for discussion.                           
                                                                               
  Amendment No. 15 (Senator Jacko)                                             
                                                                               
  Senator Jacko explained  that Amendment No. 15  would reduce                 
  the  amount  of   funding  flowing   from  the  power   cost                 
  equalization endowment for  small utility improvements  from                 
  $2  million  to $500.0.    In  response to  a  question from                 
  Senator Rieger, Senator Jacko explained that the $66 million                 
  endowment  funds PCE throughout the  year.  There is concern                 
  that withdrawals will  quickly diminish the principal.   The                 
  original intent was that the endowment last for 20 years.                    
                                                                               
  Amendment No. 1A (Office of Management and Budget)                           
                                                                               
  At  this  point in  the meeting,  attention reverted  to the                 
  tabulation  set  forth  on Amendment  1A.    Co-chair Pearce                 
  pointed to  page 9,  lines 37  and 38  of the  bill and  the                 
  $100.0  for  statewide  advanced  project definition.    She                 
  explained that the  Office of Management and  Budget earlier                 
  requested that  the  $100.0 be  deleted and  added to  other                 
  projects.   OMB  has since determined  it needs  the funding                 
  because it provides for preliminary work on projects that do                 
  not fit  federal requirements.   In  order to  reinstate the                 
  project, $25.0 was  taken from deferred maintenance  in each                 
  of DOTPF's  four regions.   Other changes on  the tabulation                 
  include increasing DNR  state land acquisition from  zero to                 
  $265.0.   Alaska has provided  the federal government a list                 
  of all lands selected under state entitlement.  Efforts must                 
  continue, however, on  that acquisition, classification, and                 
  assessment.    The original  request  was for  $650.0.   The                 
  legislature proposed  zero.   The  new legislative  proposal                 
  provides $265.0.   For  Dept. of  Fish and  Game efforts  in                 
  protecting  Alaska's  right  to manage  its  resources under                 
  ANILCA, the administration sought $500.0 for the second year                 
  of the project.  The legislature  proposed zero.  The Office                 
  of Management and  Budget and the department returned with a                 
  request for $200.0 in general funds  plus $200.0 in fish and                 
  game funds.  That has  been provided.  The Dept.  of Natural                 
  Resources further requested $300.0 for  forest practices act                 
  effectiveness  research.   Again,  the legislature  proposed                 
  zero.  The department, Office  of Management and Budget, and                 
  the timber  association requested that funding  be increased                 
  as  much as  possible.   A  total  of $200.0  had  thus been                 
  provided.   In addition  to the $25.0  decrease for deferred                 
                                                                               
                                                                               
  maintenance  in   each  of  DOTPF's  four  regions,  further                 
  decreases consist of a reduction of  funding to the Dept. of                 
  Health and Social Services for API repairs  from $1,032.5 to                 
  $400.0,  reduction  of Dept.  of  Natural Resources  RS 2477                 
  moneys from $400.0 to  $300.0, and a reduction in  statewide                 
  maintenance  for  Dept.  of Fish  and  Game  facilities from                 
  $650.0  to  $300.0.   Co-chair  Pearce  reiterated  that the                 
  foregoing  increases and  reductions have  been  approved by                 
  both the House and the Office of Management and Budget.                      
                                                                               
  Senator Sharp  voiced concern  over reductions  in Dept.  of                 
  Natural  Resource  RS  2477  moneys.   He  stressed  that if                 
  rights-of-way associated with state trails are not asserted,                 
  they will be lost  forever.  He voiced further  concern over                 
  the quality and usefulness of forest practices act research.                 
                                                                               
                                                                               
  Co-chair  Pearce advised that CS SB 363 (Finance) reflects a                 
  capital  budget  utilizing  general  funds  of  $99,996,600,                 
  including  amendments  proposed  for  the  floor,  with  the                 
  exception  of  Senator Kerttula's  amendment for  the Alaska                 
  Public Radio Network  which would  boost the capital  budget                 
  beyond  $100  million.    Federal  funds   total  $567,601.6                 
  million.     Authorizations   for   DOTPF   stem  from   the                 
  department's construction season list for 1994 and 1995.                     
                                                                               
  SENATOR  LINCOLN   pointed   to   funding   for   Dept.   of                 
  Transportation   and   Public  Facilities   projects,  noted                 
  deletion of the  Denali project and addition  of funding for                 
  improvements  and rehabilitation of  the Steese  Highway and                 
  Chena Hot  Springs Road,  and raised  questions   concerning                 
  whether the  Steese Highway  project was  ready to  proceed.                 
  Co-chair  Pearce  explained  that  the  Denali  project  was                 
  deleted because of  public outcry over  proposals to pave  a                 
  road  that is  only open a  portion of  the year.   She then                 
  noted that Chena Hot Springs is on the department's Priority                 
  I list.   While improvements to  the Steese Highway show  as                 
  Priority II, the project  has been on the six-year  list for                 
  approximately five years.                                                    
                                                                               
  HELVI SANDVIK, Deputy Commissioner, Dept. of  Transportation                 
  and Public Facilities, came before committee.  She concurred                 
  that Steese Highway improvements  are presently Priority  II                 
  and have  been under design  for some  period of time.   The                 
  project is thus design  ready.  It is listed as  Priority II                 
  rather than  Priority I because  current maintenance efforts                 
  have enabled the  department to "keep the  roadway in pretty                 
  good shape."  While the design stage is complete, the public                 
  involvement  process to  get the project  on the  three year                 
  state transportation  improvement program (STIP) has not yet                 
  occurred.  The  Chena Hot Springs project  has not undergone                 
  planning and design and cannot be  construction ready in the                 
  next two years.   Senator  Lincoln voiced her  understanding                 
  that although the  legislature is providing $3.7  for Steese                 
                                                                               
                                                                               
  Highway improvements and  $3 million  for Chena Hot  Springs                 
  Road rehabilitation, the Dept. of Transportation  and Public                 
  Facilities will not be able to  implement the projects.  Ms.                 
  Sandvik said that the Steese  Highway project could commence                 
  upon conclusion  of the public  involvement process.   It is                 
  unlikely, however, that  the Chena Hot Springs  Road will be                 
  in a position to go forward in the next two years.                           
                                                                               
  In  response  to  a further  question  from  Senator Lincoln                 
  concerning the  availability of other projects,  Ms. Sandvik                 
  said  that  projects  on  the  construction  season forecast                 
  reflect work the department believes it can  get done within                 
  the prescribed time frame.                                                   
                                                                               
  End, SFC-94, #78, Side 1                                                     
  Begin, SFC-94, #78, Side 2                                                   
                                                                               
  Further discussion followed between Ms. Sandvik and  Senator                 
  Rieger  regarding   the  scheduling   of  other   department                 
  projects.   Co-chair Pearce  voiced  committee concern  that                 
  moneys allocated  to statewide enhancement,  statewide rural                 
  village  roads and  trails,  safety,  or  contingency  might                 
  instead be applied to the Copper River Highway.  Ms. Sandvik                 
  responded that that was not the department intent.                           
                                                                               
  Discussion  regarding use  of  contingency funding  followed                 
  between Ms. Sandvik and Senator Rieger.                                      
                                                                               
  Co-chair Pearce  called for  further discussion of  proposed                 
  amendments.  None was raised.  She then queried the audience                 
  for public testimony.  None was forthcoming.                                 
                                                                               
  Senator  Rieger MOVED  that CS  SB 363  (Finance) pass  from                 
  committee  with  individual recommendations.    No objection                 
  having  been raised, CSSB 363 (Finance)  was REPORTED OUT of                 
  committee.  All members present  signed the committee report                 
  with  a  "do  pass"  recommendation  with the  exception  of                 
  Senator Kerttula  who signed "no  rec."  [Senator  Jacko was                 
  temporarily absent from the meeting and did not sign.]                       
                                                                               
  Co-chair   Pearce  directed  that  the  meeting  be  briefly                 
  recessed prior to proceeding with the agenda.                                
                                                                               
                       RECESS - 10:20 A.M.                                     
                     RECONVENE - 10:40 A.M.                                    
                                                                               
                                                                               
  HB 351 - CONCEALED HANDGUN PERMITS;WEAPONS POSS.                             
                                                                               
  Co-chair Pearce directed that CSHB  351 (Fin)am (efd add) be                 
  brought  on  for  discussion and  noted  that  file material                 
  consists of  the bill transmitted  by the House,  the Senate                 
  State  Affairs version, three fiscal notes, a list of groups                 
                                                                               
                                                                               
  supporting  the  bill, an  analysis  of both  the  House and                 
  Senate  State Affairs versions,  a sponsor statement, policy                 
  briefing, and various articles.                                              
                                                                               
  REPRESENTATIVE  JAMES,  sponsor  of  the  legislation,  came                 
  before committee.   She noted that the  bill was extensively                 
  rewritten  as  it  made  its  way  through  the  House,  and                 
  additional changes  were effected  by Senate State  Affairs.                 
  She attested to  support for the legislation which  she said                 
  balances the issue  and provides  that law abiding  citizens                 
  will be able  to carry  concealed weapons for  self-defense,                 
  after  having  taken  training  to   ensure  that  they  are                 
  knowledgeable about the firearm.  Senator Kerttula asked who                 
  would  provide  required  training.    Representative  James                 
  explained that  the bill  presently calls  for provision  by                 
  private industry, per approval by the department.                            
                                                                               
  Discussion   followed   between    Senator   Kerttula    and                 
  Representative James regarding the  type of container needed                 
  for transport of a firearm.                                                  
                                                                               
  PORTIA BABCOCK,  Senate State  Affairs committee aide,  came                 
  before committee to provide a section-by-section analysis of                 
  bill  provisions  and  changes   effected  by  Senate  State                 
  Affairs:                                                                     
                                                                               
  Sec. 1.   Allows  a permit to carry a concealed weapon as an                 
            affirmative defense to possession.                                 
                                                                               
  Sec. 2.   Provides that transport  of a firearm in  a closed                 
            container designed for transporting  firearms does                 
            not constitute carrying a concealed weapon.                        
                                                                               
  Sec. 3.   The  Senate State  Affairs bill effected  a change                 
            clarifying  the difference  between  a loaded  and                 
            unloaded firearm.  The Dept.  of Public Safety has                 
            no opposition to the change.                                       
                                                                               
  Sec. 4.   Makes provisions for permits to carry concealed                    
            handguns and delineates criteria an applicant must                 
            meet to receive  a permit.   Fingerprints must  be                 
            taken by  individuals qualified by  the department                 
            to take fingerprints.  Language  in the House bill                 
            required action on applications for permits within                 
            30 days of receipt of background information.  The                 
            Senate bill requires approval  or rejection within                 
            15  days   of  receipt   of  "permit   eligibility                 
            information."                                                      
                                                                               
            The House  bill provided  for licensing for  three                 
            years while  the  Senate version  provides  for  a                 
            five-year  license.    The   Senate  bill  adds  a                 
            requirement  that  the  holder  complete  a   full                 
            handgun  training course  every five  years.   The                 
                                                                               
                                                                               
            House bill  required only  a refresher course  for                 
            alternate renewals (every six years).                              
                                                                               
            Ms.  Babcock  pointed  specifically  to  statutory                 
            citations on page 4  of both the House and  Senate                 
            versions  and   explained  that  they   relate  to                 
            misdemeanor offenses.   If  one or  more of  those                 
            misdemeanors is  committed by an  applicant within                 
            five years immediately preceding application for a                 
            permit to carry a  concealed weapon, the applicant                 
            will not qualify for the  permit.  The Senate bill                 
            also adds  subsection (5) language  requiring that                 
            the applicant not  have been "convicted of  two or                 
            more class A misdemeanors of this state or similar                 
            laws of another jurisdiction within the five years                 
            immediately preceding the application.   The Dept.                 
            of Public Safety has no problem with the addition.                 
                                                                               
            In response  to a question from  Senator Kerttula,                 
            Ms. Babcock  advised  that  illegally  carrying  a                 
            concealed weapon constitutes  misconduct involving                 
            weapons   in   the   fifth  degree,   a   class  A                 
            misdemeanor.                                                       
                                                                               
            Ms. Babcock referenced interaction  with the Dept.                 
            of Health and Social  Services regarding access to                 
            mental health records,  alcohol treatment  program                 
            records, etc.  That discussion lead to development                 
            of  Senate  State  Affairs  language  at  page  5,                 
            subsections (14) and (15).                                         
                                                                               
            Speaking to  information which  must be  contained                 
            within  the  application   to  carry  a  concealed                 
            handgun, Ms. Babcock noted a  change in the Senate                 
            bill at  page 5,  line 15,  whereby the  applicant                 
            must provide  information concerning the  city and                 
            state of each  place the applicant has  resided in                 
            the five years immediately  preceding application.                 
            That allows the  Dept. of  Public Safety to  check                 
            misdemeanor records for the previous five years.                   
                                                                               
            Ms.  Babcock  next directed  attention to  page 6,                 
            line 1,  and noted  that the  Senate bill  changes                 
            language relating to permit eligibility from "may"                 
            to "will."                                                         
                                                                               
            Subsection (b) at  the top of  page 6 was part  of                 
            previous  House versions  of the bill  although it                 
            was not included in the version transmitted to the                 
            Senate.      Senate   State   Affairs   reinserted                 
            provisions  prohibiting  demand   for  information                 
            beyond  that   set  forth   on  the   application,                 
            including  information on  firearms  owned by  the                 
            applicant.                                                         
                                                                               
                                                                               
            Referencing provisions  relating to  demonstration                 
            of competence with handguns, Ms. Babcock explained                 
            that  the House  bill,  in describing  the weapon,                 
            referred to type  and size.  Senate  State Affairs                 
            did not  feel that was  clear.  Language  was thus                 
            changed to refer to action, type,  and caliber.  A                 
            permittee may  carry as  a concealed handgun  only                 
            the  caliber  of  the action  type  for  which the                 
            permittee  has  demonstrated  competence,  or  any                 
            lesser  caliber  of  the same  action  type.   The                 
            department shall approve  the personal  protection                 
            course offered by  the National Rifle  Association                 
            and  any  other  handgun  course  that  tests  the                 
            applicant's (1)  knowledge of Alaska  law relating                 
            to  firearms  and  the  use  of deadly  force  (2)                 
            familiarity with  the basic  concepts of  the safe                 
            and responsible use of handguns; (3) knowledge  of                 
            self-defense   principles;   and    (4)   physical                 
            competence  with each  action type of  handgun the                 
            applicant wishes to carry under the permit.                        
                                                                               
            Senator  Kerttula asked  how  competence would  be                 
            demonstrated and approval garnered in rural areas.                 
            Representative James voiced her understanding that                 
            most  individuals  carrying  concealed weapons  in                 
            rural  Alaska would  be  protected under  existing                 
            law.  That  is not going  to change.  She  further                 
            pointed to options allowing communities to opt out                 
            of  concealed  weapon permitting.   Representative                 
            James further voiced her belief that, upon passage                 
            of  concealed  weapon  legislation,  more  handgun                 
            courses  by which  an  individual may  demonstrate                 
            competence  would  become  available  to  a  wider                 
            number of people  in both  urban and rural  areas.                 
            Ms. Babcock stressed that,  under present law,  an                 
            individual  can  carry   a  concealed  weapon   if                 
            involved in a lawful outdoor activity.                             
                                                                               
            Senator Rieger pointed to  Senate language stating                 
            that the department "shall approve the  protection                 
            course  offered  by   the  NRA,"  noted  that   it                 
            represents  a change  from the  House  version and                 
            asked why  it was included.   Ms. Babcock  said it                 
            was   inserted  at   the   request  of   certified                 
            instructors  who  now  offer  personal  protection                 
            courses   sponsored   by   the    National   Rifle                 
            Association.  It is intended  to provide a measure                 
            of comfort to instructors who  fear they might not                 
            be approved in deference  to a state-sponsored  or                 
            alternative program.                                               
                                                                               
            Pointing to  page 6,  line 29,  Ms. Babcock  noted                 
            that  the  Senate   bill  removes  House  language                 
                                                                               
                                                                               
            relating  to  refresher  courses  and  substitutes                 
            completion of a handgun course every five years.                   
                                                                               
            At  page   7,  line  11,   Senate  State   Affairs                 
            established  a cap  on fees.   Thirty-four  states                 
            have  some  form  of concealed  weapon  permitting                 
            system  with  fees set  in statute.   The  fee for                 
            Alaska is established  at $125 with a  renewal fee                 
            not to exceed $50.  Those costs are in addition to                 
            the cost  of the  personal protection  course, the                 
            cost of  fingerprinting, pictures, etc.   Alaska's                 
            fees are at the higher end of the spectrum.                        
                                                                               
            Page 7, lines 17, contains provisions and criteria                 
            for permit renewal,  including a $25 late  fee.  A                 
            new  subsection (d) at  page 8  applies restricted                 
            information    provisions    for    the   original                 
            application to renewal as well.                                    
                                                                               
            Ms.  Babcock next spoke to provisions allowing for                 
            suspension rather than revocation of permits.  She                 
            further pointed to language at  page 9 relating to                 
            revocation of  the permit  if a  permit holder  is                 
            convicted  of two  class A  misdemeanors within  a                 
            five year period.                                                  
                                                                               
            Pointing to page  9, line 24, Ms. Babcock  noted a                 
            language  change  from  "The  department, and  its                 
            officers and  employees, are  not liable" to  "The                 
            state, and  its  officers and  employees, are  not                 
            liable."   The court  system requested  the change                 
            since the Dept. of  Public Safety is not the  only                 
            state agency that will be dealing with permits and                 
            permittees.    That language  was  included in  an                 
            earlier  House  bill but  was  not in  the version                 
            transmitted to the Senate.                                         
                                                                               
            The House bill provides that  failure to carry the                 
            concealed   weapon   permit   and   proper   other                 
            identification  when  carrying a  concealed weapon                 
            constitutes a class  B misdemeanor.   Senate State                 
            Affairs  changed  that  to  a  violation.    House                 
            legislation provides that  failure of a  permittee                 
            to inform a  peace officer  that the permittee  is                 
            carrying a concealed weapon  when the permittee is                 
            contacted  by   police  constitutes   a  class   B                 
            misdemeanor.  The  Senate bill  changes that to  a                 
            class A misdemeanor.                                               
                                                                               
            Pointing to language allowing  a peace officer  to                 
            secure a  handgun,  Senator Rieger  asked if  that                 
            means the gun  could be taken  away.  Ms.  Babcock                 
            answered affirmatively, advising that it could  be                 
            "secured"  for the  duration  of contract  between                 
                                                                               
                                                                               
            police and the  permittee.  A peace  officer could                 
            not take the handgun  and not give it back  if the                 
            permittee is  not arrested or taken  into custody.                 
            Provisions are intended  to assist peace  officers                 
            in  situations  where  they   feel  uncomfortable.                 
            Senator Rieger  asked if  an  individual would  be                 
            required  to  yield an  unconcealed  weapon  to an                 
            officer as  well.  Ms.  Babcock said  she did  not                 
            know.   Senator Rieger  voiced concern that, under                 
            bill provisions, a peace officer might be required                 
            to return a concealed weapon  to an individual who                 
            continues    to    be    agitated   following    a                 
            confrontation.      C.   W.  SWACKHAMMER,   Deputy                 
            Commissioner, Dept. of Public Safety, came  before                 
            committee  in   response  to  the  question.    He                 
            explained that  a  police officer  would take  the                 
            weapon, regardless  of whether it is  concealed or                 
            not, if  the officer  believes the  gun holder  is                 
            dangerous to himself, herself, or other people.  A                 
            permit holder who refuses to  surrender his or her                 
            concealed  weapon  when requested  to  do so  by a                 
            police officer  could be arrested for violation of                 
            a class A misdemeanor.                                             
                                                                               
            Ms. Babcock  next directed attention  to page  10,                 
            line 21,  and noted  reinsertion of  language from                 
            earlier House versions of the  bill.  It prohibits                 
            the  carrying  of   a  concealed  weapon  into   a                 
            courthouse or  courtroom unless the  permittee (A)                 
            is a judge; or (B) has been  authorized to possess                 
            a concealed handgun  by a  judge presiding at  the                 
            courthouse or  courtroom.   Co-chair Pearce  asked                 
            why  judges   were  singled  out.     Ms.  Babcock                 
            explained that  language was  lifted from  Florida                 
            statutes.  It  responds to increased instances  of                 
            weapons  brought  into  courthouses   and  threats                 
            against judges and prosecutors.                                    
                                                                               
                                                                               
  End, SFC-94, #78, Side 2                                                     
  Begin, SFC-94, #80, Side 1                                                   
                                                                               
            Ms.  Babcock  next  attested  to additional  areas                 
            where  possession   of  a  concealed   handgun  is                 
            prohibited,  noting  specifically:     state   and                 
            federal   offices   and   offices   of   political                 
            subdivisions, airline  terminals, a vessel  of the                 
            Alaska    marine    highway    system,   financial                 
            institutions,   etc.      She   also  noted   that                 
            municipalities  or   established  villages   could                 
            prohibit possession of concealed  handguns through                 
            opt-out provisions of the legislation.                             
                                                                               
            Page 11, lines  12 through 21, speak to  misuse of                 
                                                                               
                                                                               
            permits and penalties therefor.   The Senate  bill                 
            splits out  and  places  in  separate  subsections                 
            language relating  to penalties for  displaying an                 
            expired  permit and  possession  and display  of a                 
            suspended or revoked permit.   Those displaying an                 
            expired permit are  guilty of a violation  with an                 
            associated $100 fine while display  of a suspended                 
            or  revoked   permit   constitutes   a   class   A                 
            misdemeanor.                                                       
                                                                               
            Discussion   followed   between   Senator   Jacko,                 
            Representative  James,  and Ms.  Babcock regarding                 
            application  of the  proposed bill to  fish camps,                 
            etc.    Ms.  Babcock  noted  need  to  review  the                 
            definition  of  "established  village" in  present                 
            law.    Opt-out provisions  at  page 12,  line 16,                 
            speak  to  both  municipalities   and  established                 
            villages.                                                          
                                                                               
            Ms. Babcock referenced new Senate language at page                 
            12,  lines  13  -  15,  relating  to  a  municipal                 
            preemption.   She explained  that state law  would                 
            apply  unless  prohibited   by  the   municipality                 
            through the opt-out election.  Senator Jacko asked                 
            if  the  reverse  approach   had  been  considered                 
            whereby  a municipality  would have  to opt-in  to                 
            allow  the  carrying of  concealed  weapons.   Ms.                 
            Babcock  said   that  while   that  approach   was                 
            considered,  it   became  evident   it  would   be                 
            impractical   in   that   every  municipality   or                 
            established  village   would  have   to  have   an                 
            election.   That was neither  popular nor feasible                 
            and did not provide for uniform state law.                         
                                                                               
            Directing  attention  to  page  13, line  30,  Ms.                 
            Babcock referenced the  meaning of "derringer" and                 
            said  that  the  definition  was  included at  the                 
            request of the Dept. of Public Safety.                             
                                                                               
            The  Senate State  Affairs  bill  provides for  an                 
            effective date of October 1,  1994.  The effective                 
            date of the House version is January 1, 1995.                      
                                                                               
  Discussion  followed between Senator  Rieger and Ms. Babcock                 
  regarding definitions  relating to derringers  and miniature                 
  handguns as well  as competency testing  for firearms.   Ms.                 
  Babcock advised  that the National Rifle  Association course                 
  consists of 12 hours of classroom time  plus two, two-and-a-                 
  half hour instruction periods at the shooting range.                         
                                                                               
  In response to  further questions  from Senator Rieger,  Ms.                 
  Babcock summarized Senate changes to the House bill as:                      
                                                                               
       1.   Clarification of what  type of firearms permittees                 
                                                                               
                                                                               
  will                                                                         
            be allowed to carry (action, type, and caliber).                   
                                                                               
       2.   Narrowing the description of permit eligibility.                   
                                                                               
       3.   Changing the permit approval or denial period from                 
  30                                                                           
            to 15 days.  She stressed that this time period is                 
            flexible.   When an  application is  received, the                 
            department    must    submit    the    applicant's                 
            fingerprints for tracking within 5 days of receipt                 
            of  the application.   Once  information from  the                 
            computerized  record  search   is  received,   the                 
            department has 15 days to respond.                                 
                                                                               
       4.   Removal of misdemeanor driving offenses as a cause                 
            for permit suspension or revocation.                               
                                                                               
       5.   Rewording and clarification  of sections  relating                 
  to        mental health  and alcohol program  involvement by                 
            permittees.                                                        
                                                                               
       6.   Requiring  the  retaking  of  the  entire  handgun                 
  competency          course  every  five  years  for  renewal                 
                      rather than a refresher course every six                 
                      years.                                                   
                                                                               
       7.   Establishment  of  caps  on  fees.    Ms.  Babcock                 
  stressed that       the  department  is  required to  charge                 
                      only for  the actual cost  of processing                 
                      the application.   She  then voiced  her                 
                      hope that  the cost would  be less  than                 
                      the $125 cap.                                            
                                                                               
       8.   The  narrowing  of  information  required  of  the                 
  applicant.                                                                   
                                                                               
       9.   Addition of the municipal preemption.                              
                                                                               
      10.   Change of the effective date to October 1, 1994.                   
                                                                               
  Senator Kerttula attested  to concerns  raised by a  grocery                 
  store  owner  that, under  the  proposed bill,  he  would be                 
  forced  to  carry  a  weapon  because shoplifters  could  be                 
  carrying concealed weapons.  He  further attested to worries                 
  associated with permittees who might carry concealed weapons                 
  into bars and other areas where alcohol is involved.  Deputy                 
  Commission Swackhammer explained that being in possession of                 
  a  firearm  in an  establishment  that is  selling alcoholic                 
  beverages for retail is against current law.                                 
                                                                               
  Co-chair  Pearce  called  for additional  questions  on  the                 
  legislation.  None were forthcoming at  this time.  She then                 
  advised of a number of people  who wished to testify on  the                 
                                                                               
                                                                               
  bill and directed that it be HELD for further discussion.                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 11:35 a.m.                        
                                                                               
                                                                               

Document Name Date/Time Subjects