Legislature(1997 - 1998)

05/06/1998 09:40 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
MINUTES                                                                        
SENATE FINANCE COMMITTEE                                                       
6 May, 1998                                                                    
9:40 a.m.                                                                      
                                                                               
TAPES                                                                          
                                                                               
SFC 98  # 159, Side A (000-593)                                                
   Side B (593-173)                                                            
                                                                               
CALL TO ORDER                                                                  
                                                                               
Senator Bert Sharp, Co-Chair, convened the meeting at                          
approximately 9:40 a.m.                                                        
                                                                               
                                                                               
PRESENT                                                                        
                                                                               
In addition to Co-Chair Sharp, Senators Donley, Torgerson,                     
Adams, Parnell and Phillips were present when the meeting                      
was convened. Senator Pearce arrived later.                                    
                                                                               
Also Attending:  Senator LOREN LEMAN; Representative CON                       
BUNDE; Representative JOHN DAVIES; CAROL CARROLL, Director,                    
Division of Support Services, Department of Natural                            
Resources; BOB BARTHOLOMEW, Deputy Director, Division of                       
Income and Excise Audit, Department of Revenue; ROBERT                         
BUTTCANE, Administrative Probation Officer for Youth                           
Corrections, Division of Family and Youth Services,                            
Department of Health and Social Services; JON SHERWOOD,                        
Medical Assistance Program Officer, Division of Medical                        
Assistance, DHSS; MARILYN HOLMES, Direct Entry Certified                       
Midwife; MIKE GREANY, Director, Division of Legislative                        
Finance and aides to committee members and other members of                    
the Legislature.                                                               
                                                                               
                                                                               
via Teleconference: From Anchorage: KEVIN BANKS, Director,                     
Division of Oil and Gas, Department of Natural Resources;                      
BARBARA BRINKS, Director, Public Defender Agency, Department                   
of Administration; From Fairbanks: JEFF COOK, Vice                             
President, External Affairs and Administration, MAPCO Alaska                   
Petroleum.                                                                     
                                                                               
                                                                               
SUMMARY INFORMATION                                                            
                                                                               
                                                                               
HOUSE BILL NO. 469                                                             
"An Act approving the sale of Prudhoe Bay Unit royalty                         
oil by the State of Alaska to Mapco Alaska Petroleum,                          
Inc.; and providing for an effective date."                                    
                                                                               
Co-Chair Sharp asked if there was anyone present from the                      
Department of Natural Resources to speak to the bill and                       
open the dialog. CAROL CARROLL, Director of the Division of                    
Support Services, came to the table and introduced KEVIN                       
BANKS, Director of the Division of Oil and Gas, who was                        
linked to the meeting via teleconference from Anchorage.                       
Co-Chair Sharp requested an overview on what the bill would                    
do and the essentials of the contract.  Mr. Banks answered                     
as follows:                                                                    
                                                                               
"The contract that I helped to negotiate with MAPCO is a                       
five-year contract, which will begin in December 1, 1998 and                   
expire December 31, 2003.  We propose to sell to MAPCO                         
approximately 28,000 barrels a day of Prudoe Bay oil.  Or                      
that calculates in the contract specifically to about 20                       
percent of Prudoe Bay production, royalty production that                      
is, in the first year.  But that percentage will increase                      
each year as production declines to about 33.5 percent,                        
which will make for a relatively constant delivery of 28,000                   
barrels per day over the life of the contract."                                
                                                                               
"The price is calculated based on what we receive in for our                   
royalty in value paid by the lessees.  Actually, the volume                    
weighted average price that we receive from the lessees,                       
plus 15 cents."                                                                
                                                                               
"The contract also includes the provision in the event that                    
MAPCO defaults.  We have a - the contract is secured by a                      
letter of credit equal to a value - equal to the value of 75                   
days of delivery of royalty oil."                                              
                                                                               
"We have a provision that also requires that MAPCO process                     
up to at least 80 percent of the oil that we sell to them in                   
their North Pole refinery."                                                    
                                                                               
"And there is a local-hire provision as well in the contract                   
were we define Alaskan residents in the same way as they are                   
defined in the North Star lease amendments that were                           
approved by the Legislature in 1996.  Also the local hire                      
clause includes a provision that to the extent practicable,                    
MAPCO hire local contractors for the work that they do."                       
                                                                               
"I believe that sort of touches on most of the high points                     
on the contract. I'd be happy to take any questions at this                    
time."                                                                         
                                                                               
Senator Adams noted this proposed contract was for five                        
years and approximately 28,000 barrels per day.  He wanted                     
to know what were the provisions in the old contract with                      
MAPCO.  Mr. Banks responded that the other contract was for                    
25 years with 35,000 barrels of oil delivered per day.  That                   
contract would also expire on December 31, 2003.  He added                     
that there was also a one year contract that would expire                      
When this one began.  That contract was for 13,000 barrels a                   
day.                                                                           
                                                                               
Co-Chair Sharp called upon JEFF COOK, Vice President of                        
External Affairs and Administration for MAPCO Alaska                           
Petroleum, to testify next.  Mr. Cook spoke via                                
teleconference from Fairbanks as follows:                                      
                                                                               
"We appreciate the committee hearing this bill today.  We                      
feel that this bill both enables as well as expands a great                    
partnership between MAPCO and the State Of Alaska.  We are                     
well into our $70 million expansion."                                          
                                                                               
"This contract will feed what we call our 'crude unit number                   
three'."                                                                       
                                                                               
"We're - we probably have about 125 Alaska workers out there                   
right now and our primary contractor is TCI, Vern Boyles out                   
of Fairbanks."                                                                 
                                                                               
"This stand alone crude unit will process an additional                        
14,000 barrels of jet fuel a day and 3,000 barrels of                          
diesel.  We will not be able to refine any additional                          
gasoline with our new crude unit."                                             
                                                                               
"Last year we did tell you that if we were able to get jet                     
fuel tax equalization that we would expand.  We would put                      
people to work and we would make up the deficit of 14,000                      
barrels a day of jet fuel that now has to be imported from                     
outside the state.  And we're happy to report we're doing                      
that and I wish you could all be here to see the tremendous                    
progress on this project and to drive through the parking                      
lot and count up all the Alaska plates that I see out there                    
as I drive through every day."                                                 
                                                                               
"And with that - and I will say that we will refine all of                     
that crude oil.  We will exceed the 80 percent.  We will                       
refine all of that at our North Pole refinery."                                
                                                                               
"And with that I just appreciate your passing this bill out                    
today and getting it on its way so we can start refining                       
that crude in December.  And if there's any questions, I'd                     
be pleased to answer them."                                                    
                                                                               
Senator Adams wanted to know if with the acquisition of                        
MAPCO Company by Williams Energy Groups, would the local                       
hire provision be in place.  Would Alaskans stay on board                      
versus bringing in Oklahoma residents to take those jobs, he                   
asked.  Mr. Cook responded that the company had been under                     
the ownership of WEG since the end of March and had not seen                   
any changes.  He did not expect any changes in the local                       
hire provisions in the Alaskan operation.  They would all                      
carry on as before and WEG would assume the contracts with                     
the local hire obligations, he stated.                                         
                                                                               
Senator Phillips had a question for the representative of                      
the Division of Oil and Gas.  He had looked at the                             
background of the contract and saw that there had been no                      
public comment.  He asked if that was correct.  Mr. Banks                      
replied that the division had only received minimal comment                    
consisting of one letter faxed to the Royalty Board.                           
Senator Phillips wanted to know what were the comments, and                    
what consideration did they receive. Mr. Banks turned to the                   
letter, which was written by Hal Whitley, owner of Wet                         
Willy's Car Wash.  The letter expressed concerns about the                     
prices charged by MAPCO gas stations and that his gas                          
stations were having a difficult time trying to compete.                       
Senator Phillips clarified that the complaint was unfair                       
competition.  Mr. Banks agreed saying that Mr. Whitley                         
claimed that he was unable to buy gasoline wholesale for                       
less than the retail prices charged by MAPCO.                                  
                                                                               
Co-Chair Sharp noted there was no one else signed up to                        
testify and there were no further questions of the previous                    
speakers.                                                                      
                                                                               
Senator Adams offered a motion to move HB 469 from the                         
committee with accompanying fiscal notes.  Without                             
objection, Co-Chair Sharp so ordered.                                          
                                                                               
                                                                               
SENATE CS FOR CS FOR HOUSE BILL NO. 16(JUD)                                    
"An Act relating to delinquent minors, to the taking of                        
action based on the alleged criminal misconduct of                             
certain minors, to the services to be provided to the                          
victims of criminal misconduct of minors, and to agency                        
records involving minors alleged to be delinquent based                        
on their criminal misconduct; providing for the dual                           
sentencing of minors who commit certain felony                                 
offenses; relating to violations of municipal                                  
ordinances by minors and to civil penalties for                                
violation of municipal ordinances by minors; relating                          
to semi-secure residential child care facilities and                           
secure residential psychiatric treatment centers;                              
relating to programs and shelters for runaways;                                
relating to placement of children in need of aid and                           
delinquent minors in secure residential psychiatric                            
treatment centers; amending the Interstate Compact on                          
Juveniles to which the state is a party; allowing use                          
of hearsay evidence at temporary detention hearings in                         
juvenile delinquency proceedings; and amending Rules 3,                        
10(c), 21, and 27 and repealing Rules 6 and 7, Alaska                          
Delinquency Rules; and providing for an effective                              
date."                                                                         
                                                                               
                                                                               
Senator Tim Kelly was the sponsor of this bill and Co-Chair                    
Sharp called upon his aid, BRUCE CAMPBELL, to testify on its                   
behalf.  Mr. Campbell spoke as follows:                                        
                                                                               
"I'm pleased to bring you our priority legislation for this                    
session.  HB 16 is a long hard worked product of the last                      
several years.  It is a bill that deals with the juvenile                      
justice system and provides them a number of tools"                            
                                                                               
"Perhaps the most visible tool is going to be the dual                         
sentencing of serious offenders within the juvenile justice                    
system so that for Class C and B felonies, judges will have                    
an opportunity to give 17-year olds both a juvenile sentence                   
and an adult sentence.  If a kid re-offends then he would -                    
the judge would then have the opportunity to sentence him                      
right directly to adult jail.  And it's driven by the kid's                    
behavior.  And if he had repetitive or repeat offender or                      
some other problem like that then the judge will get to send                   
him right straight to adult jail."                                             
                                                                               
"But, equally important, perhaps more so, are some of the                      
tools we're trying to give communities to allow communities                    
to optionally get involved at lower and earlier levels of                      
juvenile misbehaviors.  We've learned from our work and from                   
work of many others nationwide, that it is that the                            
earliest, lowest offenses that a juveniles become amendable                    
to treatment.  And so we'll allow communities to get                           
involved in the process.  Anchorage as you know now has a                      
system where they take kids to civil court.  This makes it                     
clear that any community can do that.  And it makes it clear                   
that when they do that we ask them to send the records to                      
Health and Social Services so that they have a complete                        
pattern of records on those kids."                                             
                                                                               
"We're also allowing police officers to testify in                             
disciplinary hearings.  These correlate to the probable                        
cause hearing for an adult. And the police officer can                         
provide the testimony on the events, much as happens in the                    
adult treatment system and reducing the burden on victims.                     
We found that victims have a very difficult time getting                       
their part in the juvenile justice process and they often                      
feel like they're being burdened extensively by a system                       
that requires them to show up again and again and again for                    
hearings but they'll suddenly miss one and it drops through                    
the cracks."                                                                   
                                                                               
"We increase the amount of community service that - options                    
are available to judges.  We increase communications with                      
federal and state officials.  We did for - within state                        
agencies last year, but the agencies came back and said,                       
'Well that's nice but gee they passed this new federal law.                    
Can we include the Gang Crimes Commissions of the federal                      
agencies and some of the DEA groups that work with kids a                      
lot?'  And we said yes, and those are part of this bill."                      
                                                                               
"I'll certainly answer any questions."                                         
                                                                               
Senator Torgerson asked if currently municipalities were                       
required to give notice to the commission of the Department                    
of Health and Social Services on any juvenile violations.                      
Mr. Campbell was unsure what the City of Anchorage was                         
doing.  He believed they were working with the department.                     
It was not actually required.  But, he warned, if DHSS did                     
not have those records, they would not have the evidence to                    
make a more serious case.  Having the records helped                           
establish a pattern of behavior.                                               
                                                                               
Senator Torgerson wanted to know if that information wasn't                    
already available to the DHSS through the Alaska State                         
Troopers, the local police or the court.  He wondered if                       
because there already was a record, this would just be                         
duplication. Mr. Campbell said the bill would create a link                    
so that when the record was created in the court system that                   
it would be linked to DHSS.                                                    
                                                                               
Senator Torgerson's next questions related to page 5 line                      
15, where language referred to a certificate of a shelter                      
designated for runaways.  He read, "...is designated a                         
shelter for runaways by a corporation that is licensed to                      
make the designation..." and wanted to know what that meant                    
and if it wasn't a duplication of the requirement that the                     
department also make the designation.  Mr. Campbell said                       
that no, it was a collateral reference.  The term "non-                        
profit" was being taken out of several statutes.  Because of                   
that, reading only sections 10 and 11 would not make sense                     
unless the entire statute was taken into account.  The                         
issue, Mr. Campbell explained, was that Charter North,                         
Brightway Hospital in Utah, a small foster care facility in                    
Fairbanks and other entities wanted to be able to offer some                   
of these treatment services and they are corporations not                      
non-profits.  He spoke further about the requirements for                      
setting up a non-profit corporation.  He shared with the                       
committee Charter North's desire to set up a facility within                   
Alaska, which would save the trouble and expense of shipping                   
the youths out of state.                                                       
                                                                               
Senator Torgerson wasn't satisfied with the explanation for                    
shelter designation.  He didn't understand the language and                    
wanted to know what other corporation was going to make the                    
designation for the first corporation to have a license.                       
Mr. Campbell responded that the DHSS made that                                 
determination.  The only change made in the bill was the                       
word "non-profit" was deleted, he stressed.                                    
                                                                               
Senator Torgerson had another question.  On page eight,                        
language read, "...is charged by complaint or                                  
indictment...information..." He wanted to know more about                      
the "information".  Mr. Campbell explained that this was                       
language used in the criminal code.  The word "arraigned"                      
was being deleted.  To show the reason for this change, Mr.                    
Campbell referred to a recent incident in Anchorage where                      
two youth were killing taxi cab drivers.  When the court                       
system interpreted the statute to waive juvenile court, it                     
determined that names could not be released until after the                    
defendant received a grand jury indictment.  Mr. Campbell                      
felt the Legislature and the Attorney General's Office did                     
not intend that to be the case.  The DOL then asked the                        
language to be changed to reflect comparable language in the                   
adult criminal code, which said, "complaint, information or                    
indictment."  This referred to information supplied to the                     
court for indictment.                                                          
                                                                               
Senator Torgerson said he read the language differently and                    
had never heard the term, "charged by information."  He had                    
heard, "charged by complaint and indictment."  Senator                         
Parnell said that while he was not a criminal attorney, he                     
had some knowledge of the situation.  The word "information"                   
was a term used in criminal law that could say the same                        
thing as "complaint, he said."  Senator Torgerson was                          
satisfied, although he felt his task was to help write the                     
statutes in language that could be understood.                                 
                                                                               
Senator Parnell addressed Senator Torgerson's question on                      
page 5 line 13-16.  He had also been confused by the                           
language, but realized that in lines 13 and 14, it was the                     
corporation that was holding itself out as a shelter for                       
runaway miners.  Therefore, the corporation was making the                     
determination that the facility was a shelter and it was                       
licensed to run it as such.                                                    
                                                                               
Senator Adams told the committee he had an amendment to                        
offer, which pertained to Section 4 and affected the                           
implementation of provisions by an entity selected by the                      
department.  He detailed the proposed changes on page 25                       
starting on line eight.  The language would read, "...the                      
entity that the department may select in order to exercise                     
authors is limited to a municipality, a corporation, or two                    
or more persons recognized by the community and operating                      
under contract or license from the department.  He requested                   
that the sponsor's representative comment on the amendment.                    
                                                                               
Mr. Campbell responded that they supported the amendment                       
because it would allow DHSS to expand community involvement                    
throughout the state in bringing in communities with two or                    
more persons who could react more quickly to juvenile                          
matters.  He felt that was a very important option for                         
communities.                                                                   
                                                                               
Co-Chair Sharp indicated he wished the committee to hear all                   
testimony before beginning action on amendments.                               
                                                                               
There were no further questions of Mr. Campbell.  Co-Chair                     
Sharp noted ROBERT BUTTCANE, Administrative Juvenile                           
Probation Officer with Youth Corrections for the Division of                   
Family and Youth Services, DHSS, had signed up to comment                      
and answer questions.  He offered Mr. Buttcane an                              
opportunity to speak.  Mr. Buttcane identified himself and                     
testified as follows:                                                          
                                                                               
"The HB 16 before you is the outcome of the Governor's                         
Conference on Juvenile Justice that was held throughout the                    
state in 1996.  And a number of provisions in this bill have                   
come out of the recommendations of that statewide bipartisan                   
group."                                                                        
                                                                               
"We do support this bill.  We have worked closely with the                     
sponsor on crafting language that took care of a number of                     
some specific issues that we had in our delinquency                            
procedures and our philosophies."                                              
                                                                               
"I can go over section by section of the bill if you wish.                     
I know that you've got a busy schedule.  But basically I                       
think I will just be available for questions if you have                       
anything specific.  But that the department and the                            
Administration do support HB 16."                                              
                                                                               
Co-Chair Sharp chose the latter approach of posing specific                    
questions to Mr. Buttcane rather than having him detail each                   
section of the bill.                                                           
                                                                               
Senator Phillips wanted to know if by Mr. Buttcane's                           
comments that meant the Governor would sign the bill into                      
law.  Mr. Buttcane didn't pretend to speak for the Governor,                   
but he believed the department would make that                                 
recommendation that he do so.  Senator Phillips felt it                        
would be nice to have some sort of commitment one way or                       
another, but he understood Mr. Buttcane's position.                            
                                                                               
Senator Parnell asked if the department had any concerns or                    
questions with Amendment #1, drafted by Senator Adams.  Mr.                    
Buttcane replied they would support it, since it would                         
enable them to work more closely with communities in an                        
effective way to hold young offenders accountable.  He felt                    
it was an appropriate amendment.                                               
                                                                               
Senator Parnell wanted clarification of, "...two or more                       
persons recognized by the community..."  Mr. Campbell                          
explained that the department needed some vehicle to make                      
sure the individuals were at least known amongst the                           
community and recognized by the people in the community.                       
Senator Parnell asked, "recognized as what?"  Mr. Campbell                     
replied the individuals should be recognized as people able                    
to handle matters in a way the community was comfortable                       
with.  It was not intended to be any particular focus for                      
the department.                                                                
                                                                               
Senator Parnell wanted to know it the department was asking                    
that the people were competent and operating under contract,                   
or just be that others would recognize them on the street.                     
Mr. Campbell related an incident in a village where one                        
group claimed to be responsible for the community but the                      
mayor didn't actually recognize that group.  He felt it                        
would be of value to make sure the department had some sense                   
from the community that the group would be effective.                          
Senator Parnell asked if they were looking for some sort of                    
validation from a governing body.  Mr. Campbell listed some                    
of the options for recognition as access through a public                      
hearing process or a governing body.  Senator Parnell stated                   
that he had wanted some more information on the record as to                   
the meaning and intent of the language.                                        
                                                                               
Co-Chair Sharp noted there was no further questions of the                     
department or the sponsor, nor were there any others signed                    
up to testify.                                                                 
                                                                               
Senator Adams moved for adoption of Amendment #1.  There was                   
no objection and it was adopted.                                               
                                                                               
Senator Parnell offered a motion to move SCS CS HB 16 (FIN)                    
from committee with accompanying fiscal note.  Co-Chair                        
Sharp voiced concern with the price of this program of a                       
quarter million dollars to start with and escalating in                        
future years.  However, he was in favor of the legislation                     
and realized that the costs were necessary so he would not                     
object to the motion.  The bill was moved from committee                       
without objection.                                                             
                                                                               
Co-Chair Sharp announced there was someone signed up to                        
testify via teleconference from Anchorage he had overlooked.                   
Because the committee still had the bill in its possession,                    
it had the option of changing actions taken. He apologized                     
and called upon BARBARA BRINK from the Public Defender                         
Agency in the Department of Administration to offer her                        
comments.  She testified as follows:                                           
                                                                               
"I appreciate this opportunity to speak even though it                         
sounds like understandably this is a done deal.  I wanted to                   
point out a couple of my concerns because I want to thank                      
the sponsor who has worked with me carefully in narrowing                      
the scope of this bill and also addressing some of my                          
concerns.  But I still have a couple more and I wanted to                      
let the committee know about those concerns."                                  
                                                                               
"My number one concern Mr. Chairman, has to do with Section                    
52 on page 28, which amends Rule 10-C of the delinquency                       
rules.  And I heard the sponsor's aid comment that this                        
would simply bring how hearings are conducted in the                           
juvenile arena in line with how things are conducted in the                    
adult arena.  And I think this bill goes broader than that                     
and I wanted to explain how."                                                  
                                                                               
"A temporary detention hearing - a probable cause hearing is                   
sort of like a grand jury process in the adult world.  In                      
the adult world, hearsay evidence is not admissible in a                       
grand jury.  The point of a grand jury is to determine                         
whether or not there's probable cause to believe this                          
individual committed a crime.  And hearsay isn't admissible                    
at grand jury because it's not reliable it's not                               
trustworthy.  It's sort of like playing that game of                           
telephone when you were a child.  By the time it goes                          
through two or three people, it's not exactly what was said                    
initially.  You can introduce hearsay at a grand jury if you                   
prove manifest necessity and there are certain exceptions                      
for child sex abuse crimes.  But as a general rule you                         
cannot introduce hearsay testimony.  A police officer can                      
testify about what other police officers told them.  But not                   
about what the alleged victim is claiming happened."                           
                                                                               
"And so I really think that this section erodes the fairness                   
of the process in the juvenile world and it changes it much                    
more greatly than as expressed by the sponsor.  So if I had                    
anything to offer this committee, I would suggest that you                     
take a good hard look at Section 52 and question the wisdom                    
of allowing hearsay unreliable and untrustworthy testimony                     
at a probable cause hearing."                                                  
                                                                               
"Mr. Chairman, my other concern has to do with the dual                        
sentencing provision.  And part of it is simply a basic                        
philosophy question.  I understand that many states around                     
the country are moving toward treating more children as                        
adults.  I would just like to point out for the committee's                    
perusal the Department of Justice has indicated that there                     
is no evidence that treating kids like adults is a more                        
effective crime solution than keeping them in the juvenile                     
system.  There's no proof that it increases crime prevention                   
[undecipherable] rehabilitation or lowers crime in any way."                   
                                                                               
"Secondly, while we all think juvenile crime is going up and                   
up and up, that simply is not the case.  The Alaska justice                    
forum just printed a ten-year study from 1987 to 1996                          
showing that the rate of juvenile crime has actually                           
declined in the last ten years.  Now that's a myth that                        
permeates how we are creating criminal justice legislation,                    
not only in Alaska, but throughout the country.  And the                       
statistics hold true nationwide as well.  Juvenile crime is                    
not increasing."                                                               
                                                                               
"And finally, I just want to point out to this committee                       
that we already treat juveniles in the juvenile system very                    
harshly.  Alaska is fortunate in that we're 37th in the                        
country in the amount of juvenile crime that we have.  That                    
means only 13 states are doing better than we are.  But we                     
are second in the country in the numbers of kids that we                       
lock up and second in the country in how long we lock them                     
up for in the juvenile system.  So I think to pass this bill                   
because we think we're not treating kids harshly enough                        
would not be a correct reflection of how we are actually                       
dealing with juvenile crime."                                                  
                                                                               
"Finally, two other details I'd like to point out to the                       
committee.  We're actually creating a system where juveniles                   
get treated more harshly than adults.  In Section 25 at page                   
15 lines 29 through 30, we are passing a bill here that                        
requires juveniles to go to jail if they mess up on their                      
juvenile probation and get the adult sentence imposed.  That                   
section provides that they must have some portion of their                     
jail time imposed.  Even adults in the adult system don't                      
have that requirement for certain crimes."                                     
                                                                               
"And finally, we are treating children who violate their                       
probation much more harshly than adults because we let an                      
individual probation officer determine what conditions they                    
must obey.  And also we make the child, once it's proven                       
that there's been a violation, we make the child prove that                    
he is amenable to further treatment.  In the adult system if                   
you have [undecipherable] probation proven against you, the                    
judge takes everything into account from the day you were                      
released on probation 'til the end to decide whether or not                    
to impose further jail on you.  So we're actually creating a                   
system that's not parallel for adults and children.  We're                     
creating a system where the juvenile who fails in the                          
juvenile system is treated much worse than the adults in the                   
same system are."                                                              
                                                                               
"And finally, Mr. Chairman, I do support the idea of having                    
secure psychiatric facility within the state to send our                       
children to.  It is a problem when we end up sending                           
children outside.  The separation from their family actually                   
hurts in the rehabilitative process.  But I have concerns                      
that the system we've set up in this bill does not provide                     
the kind of due process that we provide for adults again.                      
For example, if you want to lock up an adult in API against                    
their will, they're entitled to a lawyer. They're entitled                     
to probable cause hearing within 72 hours. They're entitled                    
to another hearing for a 30-day commitment. They're entitled                   
to a jury trial if they are to be locked up over 90 days.                      
In this system, there's no right to jury trail.  A kid gets                    
a hearing only after 90 days and the state is allowed to                       
keep them against their will under a much lower standard.                      
So I just want to let the committee know I have some                           
concerns about the due process in the secure psychiatric                       
commitment portion of the bill."                                               
                                                                               
"Thank you very much Mr. Chairman.  I really appreciate the                    
time."                                                                         
                                                                               
There were no questions of Ms. Brink.                                          
                                                                               
                                                                               
SENATE CS FOR CS FOR HOUSE BILL NO. 239(TRA)                                   
"An Act relating to the liability of motor fuel dealers                        
for payment of tax imposed on certain credit                                   
transactions involving motor fuel sales or transfers                           
that become worthless debts or on sales or transfers to                        
persons who declare bankruptcy; and providing for an                           
effective date."                                                               
                                                                               
                                                                               
Representative GARY DAVIS, the bill's sponsor was invited to                   
join the committee.  He testified as follows:                                  
                                                                               
"HB 239 deals with an issue that was brought to my                             
attention.  Currently the motor fuels tax - the system that                    
we have in the state, we require the distributors that                         
deliver the fuel to customers to pay the tax to the state.                     
And then as it's - even prior to them receiving the payment                    
from the client.  And in a case, what this - and then the                      
distributor waits to get paid from the client for his fuel                     
and the taxes that he has paid on the fuel."                                   
                                                                               
"What this legislation does, there's been a couple                             
instances.  I don't know how many instances but it addresses                   
a case where there's been a major fuel delivery to a                           
customer and the distributor has paid the motor fuel taxes                     
to the state and then the customer has gone bankrupt so the                    
distributor doesn't get reimbursed.  Of course he doesn't                      
get reimbursed for his - get paid for his fuel plus his                        
taxes.  So what this does, in a situation like that when                       
it's - when he's paid over $500 in motor fuel taxes to the                     
state, and then doesn't receive those taxes back from the                      
client, then the state issues a credit to that distributor                     
until the amount of taxes that he's paid is retrieved by the                   
distributor."                                                                  
                                                                               
"That's in essence what the legislation does.  And I - you                     
know the rationale for it is of course, as a state we tell                     
him that he must pay the tax before he gets paid for the                       
tax.  So I feel the state has a responsibility in that                         
regard to assist them when they've actually made a payment                     
to the state and then have gotten shorted themself.  So                        
that's the rationale.  And as I indicated, it's not for                        
small amounts.  It's for when a distributor has a large tax                    
debt $500 or more that this comes into play."                                  
                                                                               
"The department is here.  It's hard to get a handle on the                     
possible fiscal impacts of this.  I believe they've, to try                    
and keep numbers nice and orderly they tried, I guess                          
they've used the estimate of one-tenth of one percent of                       
motor fuel taxes.  So I guess I think it's a possibility of                    
$40,000 as might be impact the state but that's easy to                        
understand that there'd be a real hard number to get a hold                    
of the actual fiscal impact to the state.  So, Mr. Chairman,                   
that's the essence of the bill and I'll be answer any                          
comments, like I indicated the department is here and I have                   
staff here who's worked on it that if I get stumped, I rely                    
on her."                                                                       
                                                                               
There were no questions of the sponsor at that time and Co-                    
Chair Sharp called upon BOB BARTHOLOMEW, Deputy Director of                    
the Division of Income and Excise Audit for the Department                     
of Revenue.  Mr. Bartholomew spoke as follows:                                 
                                                                               
"I guess I can just briefly give you the information we                        
gathered in taking a look at proposed legislation.  We were                    
working last year with the motor fuel industry to revise the                   
forms and to enhance our compliance effort.  And it was                        
during the time that we were working with the industry that                    
the issue of whether there should be some relief for bad                       
debt was brought up."                                                          
                                                                               
"What we did was contact some other states to find out one                     
if it's something that they do, and two, some experience on                    
the volumes of bad debt that they saw.  And we also - that's                   
what led to the requirements that you either had to be -                       
your customer either had to have claimed bankruptcy in the                     
courts or have met the IRS rules for writing off a bad debt.                   
So it's not like you can just not get paid and then claim it                   
from the state.  We tried to put some kind of guideline in                     
there that says basically you know usually don't get to the                    
bankruptcy stage or to the Internal Revenue Service                            
guidelines for writing something off until you've gone                         
through some sort of collection measure."                                      
                                                                               
"So that's the protections that we thought were important                      
for the state to have.  And the fiscal note basically, again                   
we don't have experience in Alaska.  They don't report to us                   
the history of bad debts.  In talking to other states, they                    
said it's a program that they do allow and that it has a                       
very small fiscal impact for them.  And that's what - were                     
we came up with our estimates of $44,000."                                     
                                                                               
Co-Chair Sharp wanted to know the procedure.  He outlined                      
what he understood the process to be.  If a distributor                        
filed with their monthly tax remittance, a credit for $300                     
worth of taxes previously submitted on a company that since                    
went bankrupt, the department would verify information and                     
give the distributor a credit to be used against future                        
taxes.  Mr. Bartholomew said his assessment of the process                     
was correct but that the tax payment would have to exceed                      
$500.  Anything below that amount would not qualify.                           
                                                                               
Senator Parnell asked if the legislation was retroactive or                    
would it only apply to bankruptcy filings done after the                       
effective date of the bill.  Mr. Bartholmew replied that the                   
sales transactions would have to take place after the date                     
of the bill becoming law in order to participate.                              
                                                                               
Co-Chair Sharp reiterated the qualifications for the bad                       
debt as bankruptcy filing or situations meeting the                            
guidelines for IRS bad debt deduction.  A bounced check or a                   
longtime outstanding account would not qualify alone, he                       
asked.  Mr. Bartholomew affirmed.                                              
                                                                               
Senator Parnell noted that the bill had a five-year life.                      
He asked what the life was of similar laws in other states.                    
Representative Davis replied that his staff was not aware of                   
any sunset provisions in the laws of the other states that                     
they contacted.                                                                
                                                                               
Senator Torgerson asked if the sponsor would object if the                     
sunset provision were removed from the bill.  Representative                   
Davis did not have any objection and told the committee that                   
the original bill did not have the clause. The House Finance                   
Committee inserted it during a meeting that he was not                         
present.  He felt the sunset provision was not altogether                      
bad, just that a five-year sunset would not be enough time                     
to gauge the program's performance.  He would prefer either                    
a greater sunset period or none at all.                                        
                                                                               
Senator Torgerson posed the same question to Mr.                               
Bartholomew.  Mr. Bartholomew said that when the proposed                      
legislation was brought to the attention of the                                
commissioner, Mr. Condon had the sense that it was an equity                   
or fairness issue.  He didn't think it was inappropriate for                   
the State to share in the risk of tax collection.  Mr.                         
Bartholomew qualified that while he had not spoken to Mr.                      
Condon specifically about the sunset issue, the commissioner                   
was in support of the bill and therefore, Mr. Bartholomew                      
felt the department would support the absence of a sunset                      
clause.                                                                        
                                                                               
Senator Donley had a question about the definition of a                        
dealer and asked for clarification of who it would apply to.                   
Did it include large multi-national companies, he asked.                       
His impression was to think of smaller "mom and pop"                           
establishments.  Mr. Bartholomew gave the definition as a                      
"qualified dealer".  The big fuel providers would generally                    
not qualify because they sell their product down through a                     
distribution chain.  Most of the refiners sold their fuel to                   
a distributor, and don't pay tax at the manufacturing level.                   
If a big manufacturer had its own distribution system, they                    
could qualify, he stated.  He gave further details of                          
possible examples of qualified dealers and potential                           
situations.                                                                    
                                                                               
Tape #159 Side B 10:25 a.m.                                                    
                                                                               
Senator Torgerson spoke of court action attempts to recoup                     
the lost revenue and commented on the option of dealers                        
checking credit history of its customers before selling fuel                   
on credit.                                                                     
                                                                               
Mr. Bartholomew said the tax would only be five to eight                       
percent of the total debt owed to the distributor.  The                        
distributor would therefore give greater effort to                             
collecting the larger portion of the debt rather than the                      
taxes owed, he speculated.                                                     
                                                                               
Senator Torgerson moved for adoption of Amendment #1, which                    
would extend the sunset clause.  He then moved to Amend                        
Amendment #1 to delete line 17 and essentially eliminate the                   
sunset clause.  He commented that no other states had the                      
sunset.  He felt that the dealer should not be saddled with                    
the uncollected tax because its customer went bankrupt.  He                    
offered that the Legislature could require a report each                       
year detailing the success of the program.  However, he did                    
not wish for any more reports.                                                 
                                                                               
Senator Phillips objected to the amendment to amendment.                       
                                                                               
Senator Parnell said he agreed with the policy being made.                     
He supported the original amendment Senator Torgerson                          
offered and felt that the Legislature should have the                          
opportunity to revisit the matter again.  He thought ten                       
years was a reasonable period of time.  He therefore opposed                   
the amendment to the amendment.                                                
                                                                               
With that, Senator Torgerson removed his amendment to                          
Amendment #1 without objection.                                                
                                                                               
There was no objection to Amendment #1 and Co-Chair Sharp                      
ordered it adopted.                                                            
                                                                               
Senator Torgerson offered a motion to move from committee                      
SCS CS HB 239 (FIN).  Without objection, Co-Chair Sharp so                     
ordered.                                                                       
                                                                               
                                                                               
SENATE CS FOR CS FOR HOUSE BILL NO. 459(HES)                                   
"An Act establishing new eligibility for medical                               
assistance for certain disabled persons and giving                             
their eligibility for services the highest priority                            
among optional services and groups under the medical                           
assistance program; amending the definition of                                 
'personal care services in a recipient's home' as used                         
in the medical assistance program; moving midwife                              
services from being the first to being the 14th service                        
eliminated under the medical assistance program when                           
there is insufficient funding; and adjusting the                               
priority of optional services and optional eligible                            
groups under the medical assistance program in order to                        
reflect the new priorities given to the newly-eligible                         
disabled persons and to midwife services but without                           
otherwise changing the relative order of the other                             
optional services and optional groups."                                        
                                                                               
After some discussion as to which version of the bill was                      
before the committee, it was noted that there were several                     
versions the committee could reference if desired.                             
                                                                               
Co-Chair Sharp spoke to his concerns to the bill as amended                    
saying that it re-prioritized the list for the eligibility                     
of midwives or any other services.  He noted the committee                     
already had other bills in its possession, which would put                     
other services higher on the list.  He did not want to get                     
into a battle of which services should be prioritized at                       
what level.  Different people had different ideas of where                     
the services should be listed.  He gave an example of                          
medical assistance for certain disabled persons.                               
                                                                               
He then invited Representative CON BUNDE, the bill's sponsor                   
to join the committee and speak to the bill.  Representative                   
Bunde commented as follows:                                                    
                                                                               
"Mr. Chairman, obviously I think the original idea was a                       
good and sound idea and do not find any fault with your                        
reasoning."                                                                    
                                                                               
Senator Parnell requested an explanation of the original                       
idea.  Representative Bunde continued:                                         
                                                                               
"Mr. Chairman, Senator Parnell, the original idea was to                       
allow people who have suffered serious disabilities, an                        
opportunity to get back to work."                                              
                                                                               
"Often after disabled people have gone through a recovery                      
period, they find it very difficult to get back to work                        
because their medical expenses are greater than what they                      
could earn and support themselves."                                            
                                                                               
"This bill basically allows them a period of time where they                   
can buy into Medicaid, go back to work, have this federal                      
medical insurance helping them out in a transition period.                     
And simply what it does, is it frees them of being prisoners                   
of their own disability because they can't work because the                    
SSI covers their medical but for their own self-worth, for                     
the betterment of the State.  For just the - I think to                        
improve their prospects of recovery.  Many of them would                       
love to go back to work but it's that catch-22.  If they do                    
they can't afford their medicine and this allows them a buy-                   
in on a sliding scale that gives them an opportunity to go                     
back to work.  And as I say, transition from full hundred                      
percent support on SSI and their medical expenses to the                       
point where they can be self-sufficient."                                      
                                                                               
"It certainly - the bill I think that is a benefit to people                   
who suffer from disabilities. And I guess we're all one                        
bicycle wreck away from that happening to us.  And it's                        
certainly a benefit to the State.  We'd have more working                      
and productive people in this era of welfare reform and                        
trying to get people an opportunity to work.  It seems as if                   
it is a very positive step."                                                   
                                                                               
Senator Parnell wanted an explanation of the changes that                      
were made to the bill, with regard to midwife services, as                     
it progressed through the Legislative process.  He also                        
wanted an overview of the testimony heard on the matter.                       
Representative Bunde requested his aide, Patty Swenson, be                     
allowed to speak on the topic.  He could not be present at                     
the committee meeting where the changes were made and sent                     
Ms. Swenson to sit in during his absence.  Ms. Swenson                         
testified as follows:                                                          
                                                                               
"The changes in the midwife - the change that occurred with                    
the midwifes occurred because an amendment was offered in                      
House Finance that would opened up or given a way around the                   
Medicaid list where people drop off.  So instead of giving                     
that way around, they chose to move midwives from the top of                   
the list to 15th. And it accomplished the same goal.  That's                   
why the bill changed that way."                                                
                                                                               
"And then in Senate HESS, I believe there was a formula -                      
the formula was tightened up as to how they figure out the                     
amount they get.  But Bob Briggs is here from the Disability                   
Law Center and he's done a lot of work on that bill.  If he                    
can come up and address that..."                                               
                                                                               
Representative Bunde felt that Mr. Briggs could also answer                    
Senator Parnell's question on the relationship with the                        
midwife and how the formula changed.  Senator Parnell                          
interjected that he understood how the formula worked, but                     
wanted to know why the change was made.                                        
                                                                               
Ms. Swenson responded that the change was made because if                      
they had given a way around the list for the midwives it                       
would have opened it up for other services to be paid.  For                    
that reason, the amendment was made.                                           
                                                                               
Co-Chair Sharp invited BOB BRIGGS, a staff attorney from the                   
Disability Law Center, to come to the table to answer                          
questions.                                                                     
                                                                               
Senator Parnell commented that the co-chair had made his                       
position clear about not making changes to the list of                         
priorities.  He wanted to hear the sponsor's wish.                             
Representative Bunde said he thought the version proposed by                   
the House HSS Committee accomplished the purpose of the                        
bill, which was to allow the disabled to return to work.                       
Senator Parnell clarified that the representative would like                   
the Senate Finance Committee to adopt the House HSS version.                   
Representative Bunde affirmed.                                                 
                                                                               
Co-Chair Sharp wanted to know how much was 250 percent of                      
the federal poverty level in Alaska for a family of four.                      
Mr. Briggs said he had previously submitted a breakdown of                     
figures to the committee showing the threshold of                              
eligibility.  For 1998, the federal Department of Health and                   
Human Services set the poverty guideline at $20,570 for a                      
family of four.  He calculated 250% of that amount to be                       
$51,425.  He said the eligibility standard was defined in                      
the Medicaid option that Congress provided.  The amount was                    
the maximum net earnings allowed for a family of four with                     
one disabled member to be eligible for this benefit.  But                      
only the disabled family member would be eligible for the                      
Medicaid benefit under this provision.                                         
                                                                               
Co-Chair Sharp asked what was the definition of a disabled                     
person that would qualify for under this.  Mr. Briggs                          
responded that the definition was established under federal                    
law and was based on eligibility and said that the person                      
must have impairment severe enough to meet a listing or                        
combination of impairments under Social Security law.  The                     
qualified individual must also continue to have those                          
medical limitations.                                                           
                                                                               
What was the length of the window of opportunity for a                         
qualified person to participate in the program and buy into                    
Medicare coverage, Co-Chair Sharp asked.  Mr. Briggs replied                   
that as long as the individual continued to qualify under                      
the federal disability guidelines and as long as they paid                     
their premium, they could participate.                                         
                                                                               
Co-Chair Sharp wanted to know if this would allow employers                    
to deny coverage to a new employee because that employee                       
already qualified under this plan.  Mr. Briggs thought there                   
were other laws that governed the extent to which an                           
employer could discriminate against a disabled person in                       
offering health insurance.  Typically, individuals who would                   
qualify for participation in this program already found it                     
difficult to get coverage he shared.  He gave examples of                      
some of his employed clients who had applied for health                        
insurance after satisfying their probationary period only to                   
be refused because of their medical conditions.  This was                      
due to the pre-existing clause in the insurance coverage.                      
However there were some protections under the federal Health                   
Insurance Portability Act that governed some situations but                    
was not an absolute solution for every person with a                           
disability.  To be covered by the act, the individual must                     
have coverage before becoming disabled, he explained.  He                      
felt that the program in this legislation would not allow                      
for a carte blanc denial of coverage by a new employer                         
simply because the employee could qualify for this coverage.                   
He suggested that this program would be a bridge to                            
employment and was not intended as a permanent reliance.                       
                                                                               
Co-Chair Sharp commented that the reason he brought the                        
question up was because he did not want this program to                        
become an excuse for employers to deny coverage to disabled                    
workers.                                                                       
                                                                               
Senator Donley was reluctant to dramatically change a system                   
overseen by the Health and Social Services committees                          
because that was not this committee's area of expertise.                       
But he also wanted to ask the sponsor what he wanted the                       
committee to do with this legislation.  Representative Bunde                   
stated he would like the bill to pass the Legislature and                      
become law.  If the midwives portion of the bill complicated                   
the process and hampered the success of the disabled workers                   
portion, he would rather eliminate the midwife portion.  His                   
ultimate goal was to help the disabled get back to work.                       
                                                                               
Senator Phillips wanted to make the record clear that the                      
sponsor supported the House HSS, version "B" of the bill.                      
There was some discussion to clarify the intended version.                     
                                                                               
Senator Donley noted a problem with returning to Version "B"                   
because the midwives section was added in the House Finance                    
Committee and would therefore need a title change.  Co-Chair                   
Sharp pointed out that the committee could adopt or draft                      
any version of the bill and if it involved a title change,                     
could write a resolution to do so.  There was more                             
discussion between Senator Donley and Ms. Swenson and it was                   
determined that the bill would not require a title change if                   
the "B" version were adopted.                                                  
                                                                               
Representative Bunde restated his ultimate goal of getting                     
the bill to the floor and deferred to the chair to determine                   
which version of the bill would go forward.  He excused                        
himself from the meeting to attend the House floor session.                    
Co-Chair Sharp assured him the committee would attempt to                      
pass a bill out that met the sponsor's goal.                                   
                                                                               
Co-Chair Sharp, Senator Phillips and Ms. Swenson discussed                     
the severity of the disability standards and income                            
requirements.                                                                  
                                                                               
MARILYN HOLMES was signed up to testify and Co-Chair Sharp                     
called upon her at this time.  She spoke as follows:                           
                                                                               
"I have some information here about the midwifery portion if                   
I could pass this out.  I don't know if you've received this                   
or not. [Undecipherable]"                                                      
                                                                               
Co-Chair Sharp allowed the material to be handed out to                        
committee members and staff.  Ms. Holmes continued:                            
                                                                               
"I appreciate your concerned about changing the laundry list                   
on Medicaid funding.  And I'm here to speak to that issue."                    
                                                                               
"One of the reasons that it's possible to change this right                    
now is that the federal Social Security Act provides for -                     
that Medicaid funds can be allotted directly to pregnant                       
women as a specific and special group.  This is a 1987                         
Social Security Act.  I believe its called Title 19.  And                      
the Department of Health and Social Services use this law as                   
the basis for legislation written for the Governor's Smart                     
Start Program earlier this session, which provided for the                     
allocation of Medicaid funds to Direct Entry Midwives."                        
                                                                               
"Now, one of the other reasons why this can be changed this                    
year is because of the S-Map funds, which I'm sure you're                      
all familiar with.  But those funds [Undecipherable]                           
allegedly are allocated to help children and pregnant women                    
in part.  I mean they're Medicaid funds but [U.S. Senator]                     
Murkowski and [President] Clinton have both made agreements                    
with our Governor that those funds should be used to help                      
children, families and improve health services through                         
Medicaid funding."                                                             
                                                                               
"Now, one of the things I'd like to point out about changing                   
this is we have been on the list for five years.  To start                     
funding Medicaid to Direct Entry Midwives would save the                       
state money.  Because right now 4500 pregnant women a year                     
only have access to the medical model, which costs 57 cents                    
more on the dollar than the midwifery model and has poorer                     
outcome.  It's been proven over and over and over again that                   
the European model of midwifery care has much healthier                        
outcomes for women and children.  As a matter of fact, the                     
five nations with the lowest infant mortality rate use                         
midwives for 70 percent of their births.  We use midwives                      
for five percent of our births in this country and we are                      
22nd on the list of developed countries for infant mortality                   
and Alaska is lower than the national average."                                
                                                                               
"So we've got a problem here and just legislation could                        
improve those outcomes and it could save money further down                    
the line because when you have midwifery birth you have less                   
technical intervention, you have healthier babies, you have                    
more independence and more self-responsibility on the part                     
of the mother and the families.  So all the way down the                       
line, you're getting a good deal financially on these                          
births.  I have no idea how much money would be saved                          
eventually."                                                                   
                                                                               
"This also has to do with restraint of trade in a way                          
because right now, midwives can not get third party                            
reimbursement for their services through Medicaid.  And all                    
other birth attendants can.  And somehow that's not quite                      
fair because they're not only a viable group but they                          
provide excellent health care all the way down the line."                      
                                                                               
"Now in countries that have the best birth outcomes, three                     
things happen.  One, there's universal health coverage.  In                    
Alaska that could be Medicaid funding for low-income                           
families.  There is reprossity between the medical and the                     
midwifery communities, which is our state our Board of                         
Direct Entry Midwives has two medical professionals out of                     
the five board members.  And the third thing that creates                      
healthy birth outcomes in those countries that have the low                    
infant mortality rates is they have continuous and early                       
health coverage for pregnant women.  And this would provide                    
that for low-income women."                                                    
                                                                               
"So I strongly urge you to not delete that section from this                   
bill and to consider the cost savings.  Plus there has not                     
been an uproar, Mr. Chairman, over changing this list and I                    
don't think you're going to get one.  Because there's just                     
too many things in its favor."                                                 
                                                                               
Senator Parnell was starting to understand what was                            
happening.  With the available Medicaid funds, the                             
department had cut the list off below midwife services so                      
they've never been funded even though it was in statute.                       
Other reproductive services were funded through Medicaid                       
except for midwife services, he pointed out.  He suggested                     
that part of the question was where on the list that should                    
they go at that point.  He felt that if the other birthing                     
services were covered, than midwives should be covered as                      
well.  He was unsure how to best accomplish that without                       
starting a feeding frenzy.                                                     
                                                                               
Senator Phillips noted that other conflicts could arise.                       
Ms. Holmes interjected that he was concerned about problems                    
that may or may not happen and that she didn't feel that                       
would happen.  Co-Chair Sharp pointed out that there were                      
already two other bills in the committee asking to change                      
the priority on other items.  Ms. Holmes argued that there                     
was federal legislation that allowed the change to                             
midwifery.                                                                     
                                                                               
There was further debate between members about the inclusion                   
of coverage for midwifery services and it's location on the                    
priority list.  Senator Donley felt the handout offered some                   
compelling arguments saying the change could actually save                     
the state money and possibly allow funding for services                        
further down the list.                                                         
                                                                               
There was discussion about incorporating HB 234 into the                       
same package.  Members debated that matter.                                    
                                                                               
Ms. Holmes interjected final comments saying that federal                      
legislation was moving toward helping families and this was                    
something that the Legislature could do to move toward that                    
goal.                                                                          
                                                                               
Co-Chair Sharp offered JON SHERWOOD of the Division of                         
Medical Assistance and opportunity to speak.  He testified                     
as follows:                                                                    
                                                                               
"I'd just like to say the department supports this bill.  We                   
support it as it is now or without the change in the                           
priority list.  We had similar language in a Governor's bill                   
that would have allowed us to cover midwife services.  But                     
it was never part of this legislation.  Never our intention                    
to attach these two pieces of legislation.  So either way we                   
would support this legislation."                                               
                                                                               
Senator LOREN LEMAN was invited to speak to the bill.  His                     
comments were as follows:                                                      
                                                                               
"Thank you Mr. Chairman, committee members.  I just                            
encourage you to adopt and report the Senate HSS Committee                     
version.  This is one that was worked out in arrangement                       
with the House and the Governor's office.  And for me the                      
reasons that Ms. Holmes just talked about, I believe this                      
will end up saving money.  The midwifery reorganization has                    
not been a controversial issue.  I don't believe it will be.                   
That was the one change we made the other was in the                           
transition provisions that we worked on and came up with                       
that in Senate HSS.  I believe both of those are important                     
provisions for you to consider.  So I'd recommend that you                     
take the Senate HSS Committee version."                                        
                                                                               
Co-Chair Sharp remembered when the Legislature added                           
midwifes certification and then added it to the priority                       
list.                                                                          
                                                                               
Senator Leman pointed out that under the current list, they                    
were not being funded so it was not possible to see the                        
benefit of the savings.  These women were going to deliver                     
their children.  The question was that some of them would                      
opt for the lower cost midwife alternative, he stated.                         
                                                                               
Senator Phillips requested an At Ease.  Co-Chair Sharp noted                   
committee members were due on the Senate Floor.  HB 459 was                    
set aside.                                                                     
                                                                               
                                                                               
ADJOURNMENT                                                                    
                                                                               
Co-Chair Sharp recessed the meeting subject to the call of                     
the chair, at approximately 11:05 a.m.                                         
SFC-98 (23) 5/06/98 am                                                         

Document Name Date/Time Subjects