Legislature(1995 - 1996)

05/07/1995 12:40 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                           May 7, 1995                                         
                           12:40 p.m.                                          
  TAPES                                                                        
                                                                               
  SFC-95, #65, Side 1 (370-end)                                                
  SFC-95, #65, Side 2 (575-375)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Rick Halford,  Co-chair,  convened  the meeting  at                 
  approximately 12:40 p.m.                                                     
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition  to  Co-chairmen Halford  and  Frank,  Senators                 
  Phillips, Rieger, Sharp, and Zharoff  were present.  Senator                 
  Donley was ill and did not attend.                                           
                                                                               
  ALSO ATTENDING:  Jerry McCune, representing Cordova District                 
  Fishermen  United and  United  Fishermen  of  Alaska;  Jerry                 
  Shriner, Legislative Liaison, Dept. of Corrections;  Juanita                 
  Hensley, Chief of  Driver Services, Dept. of  Public Safety;                 
  Daniella Loper aide  to Representative Porter; and  aides to                 
  committee members and other members of the legislature.                      
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 159 -  DWI LAWS/ MINOR IN POSSESSION LAWS                                 
                                                                               
            Discussion  was had  with  Jerry Shriner,  Juanita                 
            Hensley,  and   Daniella  Loper.     An  amendment                 
            replacing the word "reasonable" with "probable" at                 
            page 1, line 8, was adopted.  A motion to pass the                 
            bill from  committee was  made, and objection  was                 
            raised.   Since a bare  quorum of four members was                 
            present  at  the  time,  the   bill  was  held  in                 
            committee.                                                         
                                                                               
  HB 233 -  EXTENSION OF MISC BOARDS & COMMISSIONS                             
                                                                               
            The following amendments were adopted:                             
                                                                               
            1.  Change the extension date on Secs. 1, 2, 3, 4,                 
            5, 6,     7, and 8 to 1996.                                        
            2.   Change the  date on  Sec. 9  to December  31,                 
            1994.                                                              
            3.  Change the date on Sec. 10 to 1997.                            
            4.  Deletion of Sec. 11  with the exception of the                 
  last                sentence and removal  of the word "also"                 
                      within the remaining sentence.                           
                                                                               
            A motion to move the bill failed, and the bill was                 
                                                                               
                                                                               
            held in committee.                                                 
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 233(FIN) am                                            
                                                                               
       An Act extending the  termination date of the  Board of                 
       Clinical Social Work Examiners, Board of Marine Pilots,                 
       Board of  Marital  and Family  Therapy,  State  Medical                 
       Board,  Board of  Nursing,  Board  of Psychologist  and                 
       Psychological   Associate   Examiners,    Real   Estate                 
       Commission,   Special    Education   Service    Agency,                 
       Correctional  Industries   Commission,  and   Hazardous                 
       Substance   Spill   Technology   Review  Council;   and                 
       providing for an effective date.                                        
                                                                               
  Co-chairman  Halford  directed  that  CSHB  233  (Fin)am  be                 
  brought on for  discussion and advised that it  would extend                 
  some entities beyond the traditional four-year term prior to                 
  sunset review and reenactment or elimination.  Some entities                 
  are  recommended  for ten-year  extension or  exemption from                 
  sunset altogether.   He then voiced his  recommendation that                 
  extensions be  reduced, saying  that he  did  not intend  to                 
  extend beyond the four years established in sunset law.                      
                                                                               
  Senator Rieger  spoke to  an increasing  number of  problems                 
  resulting from restrictive statutory  licensing requirements                 
  that prohibit qualified individuals from practicing in their                 
  fields.  As  an example, he  noted that the licensing  board                 
  for physical therapists  has resisted efforts to  "open that                 
  up"  even  when  state hearing  officers  concluded  that an                 
  individual who applied was totally qualified but technically                 
  ineligible because of  statutory wording.  Concern  has been                 
  raised regarding whether  "our whole occupational  licensing                 
  statutes  are  really   properly  crafted."    The   Senator                 
  referenced a recent newspaper article  focusing on the state                 
  medical  board  as  a  further  example.    He  then  voiced                 
  discomfort with  extension of  existing boards  in light  of                 
  need  for overall review.   He  acknowledged need  for board                 
  certification to protect the  public but questioned economic                 
  manipulation  by  boards.    In   his  closing  remarks,  he                 
  referenced  a  recent exchange  with  a constituent  who was                 
  denied  licensing  by  the board  governing  acupuncture and                 
  suggested that  individuals  are prevented  from  earning  a                 
  livelihood as a  result of lack of overall  statutory review                 
  by the legislature.                                                          
                                                                               
  Co-chairman Halford observed  that Secs. 1 through  8 relate                 
  to occupational licensing.   Proposed extensions range  from                 
  2003 to 2005.   Noting that all of the  impacted boards have                 
  an additional  wind-down  year following  the actual  sunset                 
  date, he suggested that extensions be  changed to 1996.  The                 
  Co-chairman next  referenced extension  of the  correctional                 
  industries program, set  forth in Sec. 10,  and acknowledged                 
                                                                               
                                                                               
  that it is  unique in  that it  does not  enjoy a  wind-down                 
  period.  It would thus cease as of July 1, 1995.                             
                                                                               
  Referencing  Sec. 9  extension  of the  hazardous  substance                 
  spill technology  review council, Co-chairman  Frank advised                 
  that funding for the council  was removed from the operating                 
  budget because of impending sunset.                                          
                                                                               
  Senator Zharoff acknowledged  concern regarding extension of                 
  sunset boards beyond  five years but noted that dates within                 
  the bill  were recommended  by Legislative  Audit.   He then                 
  suggested that the  length of recommended extensions  be cut                 
  in half.  Senator Rieger recalled that the Legislative Audit                 
  report questioned need for legislation  every four years for                 
  boards that  are always  extended when  brought forward  for                 
  sunset  review.   The  recommendation  for those  boards was                 
  review  every  ten years.    The Senator  reiterated growing                 
  legislative  sensitivity   concerning  economic   regulation                 
  powers exerted by boards.  He cited recent debate associated                 
  with the board of marine pilots  as an example.  Co-chairman                 
  Halford  agreed  that creation  of  a regulatory  body gives                 
  control to the executive branch.  It then becomes  difficult                 
  or impossible to  effect amendments  until sunset, if  those                 
  amendments are opposed by the executive branch.                              
                                                                               
  Senator Sharp MOVED to change sunset dates in Secs. 1, 3, 4,                 
  5, 6, 7, and 8 to 1996, and to change the date in Sec. 10 to                 
  1997.  He advised  that Secs. 2 and 9 were  removed from the                 
  motion  since  the  board  of marine  pilots  (Sec.  2)  was                 
  recently  considered and funding  for the council  in Sec. 9                 
  may  have been  removed  from  the  budget.   Senator  Randy                 
  Phillips OBJECTED.  Co-chairman Halford called for a show of                 
  hands.   The motion  CARRIED on a  vote of 4  to 2,  and the                 
  AMENDMENT was ADOPTED.                                                       
                                                                               
  Co-chairman  Halford voiced  his understanding  that  Sec. 2                 
  extension  of  the   Board  of  Marine  Pilots  to  1999  is                 
  consistent with  legislation recently  passed by  committee.                 
  Senator Rieger  questioned whether the  committee would want                 
  to extend the board for that long should the legislation not                 
  pass  both  bodies.     Voicing  his  belief   that  earlier                 
  legislation would supercede HB 233,  Senator Rieger MOVED to                 
  change the extension  date in Sec.  2 to 1996.   Co-chairman                 
  Halford remarked that enactment of legislation  would depend                 
  upon  the  order in  which  it  is signed  by  the governor.                 
  OBJECTION to  the motion  was raised.   Co-chairman  Halford                 
  called for a show of hands.  The motion CARRIED on a vote of                 
  5 to 1, and the AMENDMENT was ADOPTED.                                       
                                                                               
  Co-chairman Halford  noted that Sec.  11 would no  longer be                 
  necessary since it  contains an  exemption from sunset  law.                 
  As a result  of amendments adopted  by committee, no  boards                 
  would  extended   beyond  the  statutory   four-year  sunset                 
  provision.   Senator  Phillips  subsequently  noted need  to                 
                                                                               
                                                                               
  retain the  last sentence  of Sec.  11 and  remove the  word                 
  "also" therefrom.   No  objection to  deletion of  the first                 
  portion  of  Sec.  11  or  retention  of the  last  sentence                 
  following removal of the word "also" having been raised, the                 
  bill was so AMENDED.                                                         
                                                                               
  JERRY McCUNE, representing the Prince  William Sound Science                 
  Center,  came  before committee  to  speak  to Sec.  9.   He                 
  explained  that  the  hazardous substance  spill  technology                 
  review  council  is in  its  wind-down  year.   A  number of                 
  projects  are underway,  and  approximately $1.7  million in                 
  funding from  "criminal money"  remains for  distribution to                 
  projects  statewide.   In  order  to  finish its  work,  the                 
  council requested an extension  of one year.  The  oil spill                 
  recovery  institute will  then  take  over  federal  moneys.                 
  Council operations will be derived from the $1.7 million.  A                 
  total  of 63  proposed  projects have  been narrowed  to 15.                 
  Decisions will have to be made as to which ones will receive                 
  funding and which will  not.  In response to  questions from                 
  Senator  Rieger,  Mr. McCune  advised  that the  15 projects                 
  would  utilize the $1.7  million.   In some  cases, projects                 
  will  be  contracted  while  the  council will  merely  make                 
  contractual recommendations on others.                                       
                                                                               
  Co-chairman Frank asked if  extension of an entire  year was                 
  necessary.   Mr.  McCune  responded affirmatively,  advising                 
  that the  council only meets four or five  times a year.  He                 
  attested to difficulties associated with getting all parties                 
  together.                                                                    
                                                                               
  End:      SFC-95, #65, Side 1                                                
  Begin:    SFC-95, #65, Side 2                                                
                                                                               
  Co-chairman Frank MOVED that  the Sec. 9 extension  date for                 
  the commission  be changed from  June 30, 1995,  to December                 
  31, 1994.    In  light  of  the  additional  wind-down  year                 
  associated  with  sunset,  the  amendment  would extend  the                 
  council for half a  year.  No objection having  been raised,                 
  the AMENDMENT was ADOPTED.                                                   
                                                                               
  Senator Rieger  MOVED for  passage of  SCS  CSHB 233  (Fin).                 
  Senator Zharoff OBJECTED.  Co-chairman  Halford called for a                 
  show of  hands.  The motion FAILED on a  vote of 3 to 3, and                 
  SCS CSHB 233 (Fin) was held in committee.                                    
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 159(JUD)                                               
                                                                               
       An Act allowing a person under age 21 to be arrested by                 
       a   peace  officer  without   a  warrant   for  illegal                 
       possession,   consumption,   or  control   of  alcohol;                 
       relating to  the offenses of  driving while intoxicated                 
       and failure to submit  to a chemical test of  breath or                 
                                                                               
                                                                               
       blood; and providing for an effective date.                             
                                                                               
  Co-chairman Halford directed that CSHB  159 (Jud) be brought                 
  on for discussion.   He noted that the bill was  held from a                 
  previous meeting for  development of  a fiscal note  showing                 
  potential revenues  from increased  fines as  well as  a new                 
  note from the Dept. of  Corrections evidencing reduced costs                 
  in  the  initial year  of  implementation.   The Co-chairman                 
  referenced  information indicating  that  while fines  might                 
  total $760.0, 80% to  90% will be uncollectible for  lack of                 
  financial resources on the part of defendants.  That reduces                 
  possible revenue to $114.0.   The new note for the  Dept. of                 
  Corrections  reduces  costs to  $540.0  for the  first year.                 
  That cost is based on the same number of convictions used in                 
  estimating revenues.                                                         
                                                                               
  Senator Sharp remarked  that although  $114.0 in revenue  is                 
  anticipated,  and  the   fiscal  note   for  the  Dept.   of                 
  Corrections has been  cut in half, costs associated with the                 
  bill total  approximately $1.2  million and  will result  in                 
  incarceration of an additional 300  people.  He then  voiced                 
  reluctance to pass  the bill  until day-fine legislation  is                 
  brought in line.                                                             
                                                                               
  Senator Phillips suggested that  a lien for the  unpaid fine                 
  be  placed   against  other  property  if   the  defendant's                 
  automobile is not of sufficient value.                                       
                                                                               
  Co-chairman  Halford   asked  that  legislative   staff  and                 
  representatives   of   impacted   departments  come   before                 
  committee.    JERRY  SHRINER, Special  Assistant,  Dept.  of                 
  Corrections;  JUANITA  HENSLEY,   Chief,  Driver   Services,                 
  Division  of  Motor Vehicles,  Dept.  of Public  Safety; and                 
  DANIELLA LOPER, aide to Representative Porter, came forward.                 
  Senator Phillips suggested  that defendants  covered by  the                 
  proposed bill  traditionally drive  junker cars with  little                 
  worth.   They cannot afford to pay their fines, and it costs                 
  too much to  put them in jail.  He then suggested that other                 
  property   be  seized.      Juanita  Hensley   concurred  in                 
  frustration associated with definitive  action against drunk                 
  drivers.  Experience over  the past 15 years evidences  that                 
  the  majority  of  the  defendants  are third,  fourth,  and                 
  subsequent offenders who  do not own  their own cars.   They                 
  drive automobiles of  little value  or borrow from  friends.                 
  In  applying its motor  vehicle forfeiture law,  the City of                 
  Anchorage found that  many confiscated vehicles do  not pass                 
  emission control inspection.   The city  then has to pay  to                 
  have the vehicles destroyed.   Mrs. Hensley deferred comment                 
  on seizure of other property to the Dept. of Law.                            
                                                                               
  Mr. Shriner commented  on information from the  court system                 
  indicating little ability  to collect fines  or the cost  of                 
  care from third and subsequent  offenders.  Senator Phillips                 
  reiterated need to seize something of value from defendants.                 
                                                                               
                                                                               
  Ms. Loper  stressed that  the proposed  bill would  commence                 
  evaluation of  alcohol screening.  That has  never been done                 
  before.   It is intended to provide evaluation regarding how                 
  to combat fourth and fifth repeat offenders.  Suspended jail                 
  time will also  be imposed upon  the convicted felon in  the                 
  hope that it will be a deterrent.  The bill  also authorizes                 
  the Court System to utilize  rehabilitative measures such as                 
  drug therapy, etc.                                                           
                                                                               
  Discussion of application of subsection (q) followed between                 
  Senator Rieger and Ms. Loper.   Ms. Loper explained that the                 
  fine would  be equal across the board, regardless of whether                 
  the  defendant  is  indigent  or   wealthy.    Mrs.  Hensley                 
  concurred  that  the  Court  System   assesses  a  fine  for                 
  everyone.  However, it also determines whether a  person can                 
  pay the fine.  If  found to be indigent, the defendant  does                 
  not pay.  A  finding of indigency is a  separate proceeding.                 
  Language in the  proposed bill says  that the court may  not                 
  suspend imposition of sentence on these defendants.  It must                 
  assess the $5,000 fine and impose jail time.                                 
                                                                               
  Senator Rieger next directed attention to page 1 of the bill                 
  and attested to ongoing discussion of the difference between                 
  "reasonable" and  "probable" cause.   He then attested  to a                 
  greater  level of comfort with "probable cause" and MOVED to                 
  substitute "probable" for  "reasonable" at  page 1, line  8.                 
  No objection having been raised, the AMENDMENT was ADOPTED.                  
                                                                               
  Senator Zharoff voiced concern that  abuse could result from                 
  provisions allowing for arrest without a warrant for alcohol                 
  related  crimes.    Co-chairman Halford  remarked  that  the                 
  standard of probable  cause is  the standard for  initiating                 
  action by a police officer for all crimes.                                   
                                                                               
  Referencing language  at page  1, line  11, Senator  Zharoff                 
  raised a question  concerning addition  of "or an  ordinance                 
  with  similar  elements."    Ms.  Loper explained  that  the                 
  language was added  "so that municipalities  may be able  to                 
  use this  law."   Juanita Hensley  added  that AS  04.16.050                 
  relates to possession,  control, and consumption of  alcohol                 
  by persons under  twenty-one.  It does not relate to sale of                 
  alcohol.                                                                     
                                                                               
  Discussion of warrant arrest followed between Senator Rieger                 
  and Ms. Loper.   Senator Rieger asked  if warrantless arrest                 
  also allows  for search.   Ms.  Loper responded  negatively.                 
  The Senator  stressed that  the  bill should  not provide  a                 
  loophole for warrantless searches.                                           
                                                                               
  Senator Rieger MOVED for passage of  SCS CSHB 159 (Fin) with                 
  individual recommendations.  Senator Zharoff OBJECTED.   Co-                 
  chairman Halford acknowledged a bare  quorum of four members                 
                                                                               
                                                                               
  in attendance and  objection to passage.   He then  directed                 
  that the bill be held in committee for full attendance.                      
                                                                               
  RECESS                                                                       
                                                                               
  The meeting was recessed at 1:25  p.m., subject to recall by                 
  the chair, for  possible continued  discussion later in  the                 
  day.                                                                         
                                                                               

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