Legislature(2001 - 2002)

05/06/2001 09:20 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                           May 06, 2001                                                                                       
                             9:20 A.M.                                                                                        
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-01 # 98,  Side A                                                                                                            
SFC 01 # 98,  Side B                                                                                                            
SFC 01 # 99,  Side A                                                                                                            
SFC 01 # 99,  Side B                                                                                                            
                                                                                                                                
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Pete Kelly convened  the meeting at approximately 9:20 A.M.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Dave Donley, Co-Chair                                                                                                   
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Lyda Green                                                                                                              
Senator Alan Austerman                                                                                                          
Senator Lyman Hoffman                                                                                                           
Senator Donald Olson                                                                                                            
Senator Loren  Leman                                                                                                            
Senator Gary  Wilken                                                                                                            
                                                                                                                                
Also Attending:  REPRESENTATIVE  BRIAN PORTER; REPRESENTATIVE NORMAN                                                          
ROKEBERG;  NICO BUS, Administrative  Services  Manager, Division  of                                                            
Support  Services, Department  of  Natural Resources;  JOHN  MANLEY,                                                            
Staff,  Representative   John  Harris;   ELMER  LINDSTROM,   Special                                                            
Assistant,  Office of  the Commissioner,  Department  of Health  and                                                            
Social   Services;   CATHERINE  REARDON,   Director,   Division   of                                                            
Occupational  Licensing,   Department  of  Community   and  Economic                                                            
Development;  ED SASSER, Tobacco Enforcement  Coordinator,  Division                                                            
of Public  Health,  Department  of Health  & Social  Services;  DOUG                                                            
WOOLIVER,  Administrative  Attorney,  Office of  the Administrative                                                             
Director,   Alaska  Court  System;   BRUCE  JOHNSON,  Commissioner,                                                             
Department  of Education  & Early  Development;  TOM WRIGHT,  Staff,                                                            
Speaker  of the House,  Representative Brian  Porter; MIKE  TIBBLES,                                                            
Staff, Representative Williams.                                                                                                 
                                                                                                                                
Attending via Teleconference:   From Anchorage: BLAIR MCCUNE, Deputy                                                          
Director,  Public Defender  Agency,  Department  of Administration,                                                             
Anchorage; Lieutenant Dunnagan, Department of Public Safety.                                                                    
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 186-MUNICIPAL TAX:PIPELINE PROP/G.O.BOND DEBT                                                                                
                                                                                                                                
Following discussion, CS  SB 186 (FIN) was reported out of Committee                                                            
with  a "do  pass" recommendation  and  with  a fiscal  note by  the                                                            
Senate Finance Committee and the Department of Revenue.                                                                         
                                                                                                                                
HB   8-LEGIS.PIONEER ROAD DEVELOPMENT TASK FORCE                                                                                
                                                                                                                                
Following a brief  discussion, SCS CS HB 8(TRA) was  reported out of                                                            
Committee with  a "do pass" recommendation  and with fiscal  note #1                                                            
by the  Legislative Council,  #2 by Department  of Transportation  &                                                            
Public Facilities  and a new note  by the Department of Community  &                                                            
Economic Development.                                                                                                           
                                                                                                                                
HB  32-SEX CRIME AND PORNOGRAPHY FORFEITURES                                                                                    
                                                                                                                                
Following  clarification,  SCS CS  HB 32(JUD)  was  reported out  of                                                            
Committee with  "no recommendation"  and with fiscal note  #1 by the                                                            
Alaska Court System and #2 by the Department of Public Safety.                                                                  
                                                                                                                                
HB  71-EDUC. OF DISABLED OR GIFTED CHILDREN                                                                                     
                                                                                                                                
Following  discussion,   CS  HB  71  (FIN)am  was  reported  out  of                                                            
Committee with  a "do pass" recommendation  and with fiscal  note #1                                                            
by the Department of Education & Early Development.                                                                             
                                                                                                                                
HB  76-NEW FACILITIES FOR API                                                                                                   
                                                                                                                                
Following the  adoption of Amendment  #1, SCS CS SS HB 76  (FIN) was                                                            
reported out of  Committee with "no recommendation"  and with fiscal                                                            
note  #1  by  the  House   HESS  Committee,  #2  by  Department   of                                                            
Transportation & Public  Facilities and #3 by Department of Revenue.                                                            
                                                                                                                                
HB  90-MUNICIPAL SCHOOL BOND REIMBURSEMENT                                                                                      
                                                                                                                                
Following discussion,  CS HB 90 (FIN) was reported  out of Committee                                                            
with  "individual  recommendations"   and with  fiscal  note  #1  by                                                            
Department of Education & Early Development.                                                                                    
                                                                                                                                
HB 108-DEPT NATURAL RESOURCES RECORDING FEES                                                                                    
                                                                                                                                
Following discussion,  HB 108 was  reported out of Committee  with a                                                            
"do  pass"  recommendation  and  with  a  new  fiscal  note  by  the                                                            
Department of Natural Resources.                                                                                                
                                                                                                                                
HB 132-ALCOHOL:LOCAL OPTION/DWI/LICENSING                                                                                       
                                                                                                                                
Following  discussion,  SCS  CS  HB 132(FIN)  was  reported  out  of                                                            
Committee with  "no recommendations", a House Letter  of Intent, and                                                            
with  new fiscal  notes  by  Department of  Corrections  (2  total),                                                            
Department  of  Law,  Department  of Health  &  Social  Services  (2                                                            
total),   the  Alaska   Court   System,   and  the   Department   of                                                            
Administration (2 total).                                                                                                       
                                                                                                                                
HB 172-THERAPEUTIC COURTS/ SUPERIOR COURT JUDGES                                                                                
                                                                                                                                
Following  discussion,  SCS  CS  HB 172(FIN)  was  reported  out  of                                                            
Committee with  "no recommendation" and with fiscal  notes #2 by the                                                            
Department  of Corrections,  #5  by Department  of  Health &  Social                                                            
Services, #8  by the Department of  Law and new notes by  the Alaska                                                            
Court System and the Department of Administration.                                                                              
                                                                                                                                
HB 179-UNDERAGE DRINKING & DRUG OFFENSES                                                                                        
                                                                                                                                
Following introduction  and discussion, CS HB 179(FIN)  was reported                                                            
out of Committee  with a "no recommendation"  and with fiscal  notes                                                            
#2 by the Department of  Corrections, #5, #6 & #10 by the Department                                                            
of Health & Social Services,  #8 by Department of Administration, #9                                                            
by the Alaska Court System, and #11 by the Department of Law.                                                                   
                                                                                                                                
HB 228-SALE OF TOBACCO PRODUCTS                                                                                                 
                                                                                                                                
Following discussion, CS  HB 228 (FIN) was reported out of Committee                                                            
with  "no  recommendation"   and  with  new  fiscal   notes  by  the                                                            
Department of  Community & Economic Development, Department  of Law,                                                            
and the Department of Health & Social Services.                                                                                 
                                                                                                                                
HB 234-TOBACCO SETTLEM'T:BONDS & SMOKING PROGRAM                                                                                
                                                                                                                                
Following Committee discussion,  SCS CS HB 234(FIN) was reported out                                                            
of Committee  with a "no recommendation"  and with two fiscal  notes                                                            
by the Department of Revenue.                                                                                                   
                                                                                                                                
HB 250-OPERATING BUDGET MISSIONS AND MEASURES                                                                                   
                                                                                                                                
Following  discussion,  SCS CS  HB  250 (FIN)  was reported  out  of                                                            
Committee with  "no recommendation"  and with fiscal note  #1 by the                                                            
House Finance Committee.                                                                                                        
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 108                                                                                                         
     "An Act relating to the accounting for and appropriation of                                                                
     fees for recording and related services by the Department of                                                               
     Natural Resources; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
NICO  BUS, Administrative   Services Manager,  Division  of  Support                                                            
Services,  Department of  Natural Resources,  indicated that  HB 108                                                            
would set up  an account within the  general fund and that  it would                                                            
require the  Recorder's Office to  submit that annual operating  and                                                            
capital budget  for Legislative  appropriation.   He added  that the                                                            
legislation  was  patterned   after  HB  418,  in which,   similarly                                                            
situated  programs had been  switched to  a Receipt Support  Service                                                            
funding source.                                                                                                                 
                                                                                                                                
Mr. Bus commented that  the Recorder's Office collects approximately                                                            
$4 million  dollars  in fees  from customers.    Currently the  $2.4                                                            
million dollars  in that office is  used strictly for that  office's                                                            
business.  There are fourteen  offices in the State, eleven of which                                                            
are  paid for  by that  budget.   Three  of  the offices  are  still                                                            
located in the Court System.   The facility grant is paid for by the                                                            
Department  of  Administration.    The  intent  of the  bill  is  to                                                            
establish a stable funding source.                                                                                              
                                                                                                                                
Co-Chair Kelly noted that  last year, the concern had been discussed                                                            
through SB 119.  He inquired  if Committee members believed that the                                                            
request  could  fall   within  the  category  of  receipts   support                                                            
services.                                                                                                                       
                                                                                                                                
Co-Chair  Donley  questioned   the  reasons  why  it  had  not  been                                                            
transferred into that classification before.                                                                                    
                                                                                                                                
Mr. Bus  explained that last  year there  was legislation which  was                                                            
attempting  to change the way that  recording in the State  is done.                                                            
Since the legislation  has been passed,  the Division would  like to                                                            
change  the  funding   source  from  program  receipts   to  receipt                                                            
supported services.                                                                                                             
                                                                                                                                
Co-Chair Donley  asked if the $150,000 increase would  be necessary.                                                            
                                                                                                                                
Mr. Bus explained  that funding was needed in order  to maintain the                                                            
basic level of operation.                                                                                                       
                                                                                                                                
Co-Chair Kelly  asked if that had  been discussed during  the budget                                                            
process.                                                                                                                        
                                                                                                                                
Mr. Bus responded  that it had been discussed in the  budget process                                                            
and also in  Subcommittee.  Because  of the legislation,  a decision                                                            
was made to address these needs through a fiscal note.                                                                          
                                                                                                                                
Co-Chair  Kelly asked  if Senator Leman,  who was  the Chair  of the                                                            
Natural Resources Subcommittee agreed with that ascertation.                                                                    
                                                                                                                                
Senator Leman acknowledged that he did.                                                                                         
                                                                                                                                
Co-Chair Donley  referenced the two  fiscal notes.  He asked  if the                                                            
                           th                                                                                                   
fiscal note  dated April 25   would replace the note  from February.                                                            
                                                                                                                                
Mr. Bus acknowledged that it would.                                                                                             
                                                                                                                                
Co-Chair  Donley interjected  that  he supported  changing the  fund                                                            
source,  however,   thought  it  should   be  handled  through   the                                                            
subcommittee process.                                                                                                           
                                                                                                                                
Co-Chair Kelly  observed that the  Subcommittee had not prioritized                                                             
that  concern with  the understanding  that  it would  be  addressed                                                            
through a fiscal note.                                                                                                          
                                                                                                                                
Senator Leman noted that  he did not remember.  He agreed to go back                                                            
and check those conversations and requested an at-ease.                                                                         
                                                                                                                                
AT EASE 9:30 AM/ 9:42 AM                                                                                                        
                                                                                                                                
Senator Leman  stated that the Subcommittee had recommended  funding                                                            
at the Governor's requested  level.  In the slow-track supplemental,                                                            
the  Subcommittee  recommended  a  $100  thousand  dollar  increase.                                                            
During the Subcommittee  process, the increased costs were discussed                                                            
and it was decided that  it should be taken care of through a fiscal                                                            
note.                                                                                                                           
                                                                                                                                
Co-Chair  Kelly  recommended  that  only $75,000  of  the  requested                                                            
fiscal note be funded.                                                                                                          
                                                                                                                                
Co-Chair Donley  recommended that  in the future, the subcommittees                                                             
should  not structure  budgets based  on increased  requests in  the                                                            
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair  Donley moved to  adopt a new fiscal  note, reflecting  the                                                            
$75,000 dollar increase.   There being no objection, a change to the                                                            
fiscal note was ADOPTED.                                                                                                        
                                                                                                                                
Co-Chair  Donley  moved  to report  HB  108 out  of  Committee  with                                                            
individual recommendations  and with the amended fiscal note.  There                                                            
was no objection.                                                                                                               
                                                                                                                                
HB 108  MOVED from  Committee with  a "do pass"  recommendation  and                                                            
with a new fiscal note by the Department of Natural Resources.                                                                  
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 228(FIN)                                                                                             
     "An  Act  relating to  the  accounting  of fees  from  business                                                            
     license  endorsements for tobacco  products, to the  disclosure                                                            
     of   certain  confidential   cigarette   and  tobacco   product                                                            
     information,    to   notification    regarding   a    cigarette                                                            
     manufacturer's  noncompliance  with the tobacco product  Master                                                            
     Settlement  Agreement,  to business  license  endorsements  for                                                            
     sale  of  tobacco  products,  to citations  and  penalties  for                                                            
     illegal  sales  of  tobacco  products;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
JOHN MANLEY, Staff, Representative  John Harris, advised that Alaska                                                            
has a problem  with the selling of  tobacco products to kids.   In a                                                            
recent  survey  of tobacco  retailers  initiated  by  Department  of                                                            
Health  & Social  Services, it  was determined  that  nearly 2/3  of                                                            
vendors in  rural Alaska  sold tobacco products  to children,  while                                                            
more than 1/3 of those vendors did in urban Alaska did.                                                                         
                                                                                                                                
HB 228 seeks to derail  some of the ever-growing problems associated                                                            
with tobacco sales to minors  and the consequences that should occur                                                            
by "beefing"  up enforcement of State  laws prohibiting those  sales                                                            
to minors.                                                                                                                      
                                                                                                                                
Mr. Manley continued, the  bill would increase revenues from tobacco                                                            
vendors to help  pay for enforcement efforts by raising  the fee for                                                            
a  tobacco  endorsement  on a  business  license  from $25  to  $100                                                            
dollars.   It would  also require  a separate  endorsement for  each                                                            
location at  which a retailer sells  tobacco products.  Current  law                                                            
requires  only requires  one  endorsement,  regardless  of how  many                                                            
locations or  outlets a business has  in which it can sell  tobacco.                                                            
Mr.  Manley concluded  that  the bill  adds  language  to allow  the                                                            
Department  of Revenue to keep better  track of compliance  with the                                                            
tobacco settlement.                                                                                                             
                                                                                                                                
Co-Chair  Kelly understood  that there was  no language in  the bill                                                            
which  kept   vendors  from   being  in   compliance  with   federal                                                            
regulations.  He then referenced the fiscal note.                                                                               
                                                                                                                                
ELMER LINDSTROM, Special  Assistant, Department of Health and Social                                                            
Services, Department of  Health and Social Services, stated that the                                                            
standard non-compliance  penalty would  be the $1.5 million  dollars                                                            
which is 40% of the substance  abuse block grant.  Congress, several                                                            
months ago, passed  legislation that would allow for  an alternative                                                            
penalty.   That  penalty clarifies  that it  would be  based on  the                                                            
amount  of the block  grant and  the percentage  out of compliance.                                                             
That  number could  satisfy the  penalty.   The  fiscal note  number                                                            
really  reflects  the  alternative  penalty  amount  and is  not  an                                                            
arbitrary  figure.   He  believed  that with  these  resources,  the                                                            
compliance  rate could be  brought down.   He stated that the  funds                                                            
would be put to good use.                                                                                                       
                                                                                                                                
Co-Chair Kelly  asked if the amount  of funding was associated  with                                                            
the statutes.   He asked  if the federal  government was asking  the                                                            
State to place $485 thousand dollars into enforcement.                                                                          
Mr.  Lindstrom  explained  that  there  is  a formula.    For  every                                                            
percentage  which the State is out  of compliance, would  be applied                                                            
against  the total  block grant.   That  amount  would generate  the                                                            
amount of new  resources needed to satisfy the alternative  and that                                                            
is the  amount reflected  in the  fiscal note.   He reiterated  that                                                            
those expenditures would be used for good purposes.                                                                             
                                                                                                                                
Co-Chair Kelly asked how  much of the $487 thousand dollars would be                                                            
associated with the new law being created.                                                                                      
                                                                                                                                
Mr. Lindstrom  advised that those  funds would be used for  a number                                                            
of new purposes  which relate to the enforcement program.   He added                                                            
that the Department of  Health & Social Services portion of the $487                                                            
thousand dollars would  fund the activities in the Department of Law                                                            
related to the  suspension of tobacco endorsements  and fund all the                                                            
activities  in the  Division  of Occupational  Licensing  to  pursue                                                            
those suspensions.                                                                                                              
                                                                                                                                
Mr. Lindstrom  added that  the Department would  like to be  able to                                                            
fund merchant  education in order  to train clerks and retailers  to                                                            
not sell tobacco to minors.                                                                                                     
                                                                                                                                
Co-Chair Kelly asked if  the enforcement could be funded without the                                                            
use of statutes.                                                                                                                
                                                                                                                                
Mr. Lindstrom agreed it  could.  He explained that the bill involves                                                            
many  agencies    coming  to the  table  to  address  the  situation                                                            
statewide.    He stressed  that  the  bill would  be  meaningful  in                                                            
streamlining  that process  in order  to have  a better enforcement                                                             
program.                                                                                                                        
                                                                                                                                
Co-Chair Kelly  thought that within the bill, the  fiscal note would                                                            
be creating the statute.                                                                                                        
                                                                                                                                
Senator Green  inquired the  process used  to determine the  State's                                                            
compliance rate.                                                                                                                
                                                                                                                                
Mr. Lindstrom  advised that under  federal law, the State  of Alaska                                                            
is required  every year to  get a random  sample from outlets,  paid                                                            
for endorsement  for  their business  license  to sell  tobacco.   A                                                            
random sample  is taken from that database and then  the Division is                                                            
charged with  providing a  compliance check.   The State works  with                                                            
the local police  departments; it hires minors to  go and attempt to                                                            
buy tobacco.   He reiterated that  the compliance rate statewide  is                                                            
unacceptable at 34%.  The goal and target is 20%.                                                                               
                                                                                                                                
Senator Green  inquired if Alaska uses the same procedures  as other                                                            
states.                                                                                                                         
                                                                                                                                
Mr. Lindstrom thought that  it was.  He clarified that it is what is                                                            
required under  federal law.  However, how it is addressed  probably                                                            
varies from state to state.                                                                                                     
                                                                                                                                
Mr. Lindstrom  interjected  that there  are several  aspects of  the                                                            
bill waiting for the master tobacco settlement.                                                                                 
                                                                                                                                
Senator  Green  questioned  if  this  year's  fiscal  request  would                                                            
represent that which was intended to be used for next year.                                                                     
                                                                                                                                
Mr.  Lindstrom   stated  that   it  would   be  an  annual   federal                                                            
requirement.   He thought  that the State  would likely be  found in                                                            
non-compliance next year,  based on the check from last fall.  Until                                                            
the  concern  is addressed,  this  will  continue  to be  an  annual                                                            
problem.    The federal  government  is  getting  more  rigorous  in                                                            
defining the law.                                                                                                               
                                                                                                                                
AT EASE 10:01 AM/10:10 AM                                                                                                       
                                                                                                                                
Senator Green  asked if the report  regarding the location  data had                                                            
been distributed.                                                                                                               
                                                                                                                                
Mr. Lindstrom  noted that he would  research that and would  provide                                                            
the information to Committee members.                                                                                           
                                                                                                                                
Senator  Austerman  asked  why  there  had  been no  change  in  the                                                            
compliance.                                                                                                                     
                                                                                                                                
Mr. Lindstrom  explained  that Alaska  simply has  not enforced  the                                                            
statues consistently.   Because there are so many agencies involved,                                                            
making progress  in any given year,  is dependent on personalities.                                                             
Some police are attempting  to make it work.  He stressed that there                                                            
must be interest  on the local level.  And the State  has not done a                                                            
very good job.                                                                                                                  
                                                                                                                                
Senator  Green voiced  frustration that  laws adopted  six to  seven                                                            
years ago are  not currently being  enforced, and now, more  funding                                                            
was being requested for  further enforcement.  She did not foresee a                                                            
change unless law enforcement becomes more aggressive.                                                                          
                                                                                                                                
LIEUTENANT  DUNNAGAN,  Department of  Public Safety,  testified  via                                                            
teleconference  from Anchorage  and offered  to answer questions  of                                                            
the Committee.   He noted that the  Department of Public  Safety has                                                            
taken up  a new interest  in the  problem.   Presently, officers  do                                                            
write tickets  to juveniles  that are smoking,  however, it  is "hit                                                            
and miss" based  on the attitude of  certain officers.  He  believed                                                            
that this was a correctable problem.                                                                                            
                                                                                                                                
Co-Chair Donley  referenced fiscal note #4, Department  of Community                                                            
& Economic Development.   He asked about the FY02 change in revenues                                                            
requesting additional licensing fees.                                                                                           
                                                                                                                                
CATHERINE  REARDON, Director,  Division of  Occupational  Licensing,                                                            
Department  of Community  and Economic Development,  explained  that                                                            
the  bill  changes  the  law  to require  each  outlet  to  have  an                                                            
endorsement.  Current law  provides for each  business to have  only                                                            
one endorsement.   Under the proposed bill, each business  will need                                                            
five  endorsements.   She  stated  that the  Division  will be  busy                                                            
selling more endorsements.                                                                                                      
                                                                                                                                
Ms.  Reardon  pointed  out  that  the  first  section  of  the  bill                                                            
clarifies  that  the  receipts  would  be  deposited  and  that  the                                                            
Division would not be spending those receipts.                                                                                  
                                                                                                                                
Senator Donley inquired where they would be deposited.                                                                          
                                                                                                                                
Mr. Lindstrom pointed out  that in the Department of Health & Social                                                            
Services fiscal  note, in the out  years, those designated  receipts                                                            
would be indicated as revenue.                                                                                                  
                                                                                                                                
Co-Chair Donley asked if  that was intended to reduce what was taken                                                            
from the tobacco settlement.                                                                                                    
                                                                                                                                
Mr. Lindstrom  explained that originally,  it had been submitted  as                                                            
general  funds.  The  House Finance  Committee changed  that  to the                                                            
Tobacco Settlement Funds.                                                                                                       
                                                                                                                                
ED  SASSER, Tobacco  Enforcement  Coordinator,  Division  of  Public                                                            
Health, Department  of Health & Social  Services, noted that  the at                                                            
present  time, the  State does  not know  how many  tobacco  vendors                                                            
there are.   The  police departments  do maintain  a database.   The                                                            
bill  would  help the  State  to identify  who  is  selling  tobacco                                                            
statewide.    The endorsement  fee  would  assist  with enforcement                                                             
activity by  increasing revenue.   The enforcement authority  in the                                                            
bill would help  the State cover the areas that the  troopers cannot                                                            
get to.   It would be most  efficient to  continue to contract  with                                                            
the police  departments throughout  the State as they are  currently                                                            
doing the  best job.   It has not  been the intent  to create  a new                                                            
infrastructure.   Mr. Sasser pointed out that the  State is starting                                                            
to  see  good  results.     He  believed  that  there   are  certain                                                            
methodologies  that  the  State  can use  for  a  statewide  tobacco                                                            
enforcement program to bring it into a compliance ratio.                                                                        
                                                                                                                                
Co-Chair  Donley offered a  motion to report  CS HB 228(FIN)  out of                                                            
Committee with  individual recommendation and with  the accompanying                                                            
fiscal notes.                                                                                                                   
                                                                                                                                
Senator Leman  indicated that the  fiscal notes show the  expense as                                                            
on going.   He asked what would happen  if Alaska reached  its' goal                                                            
of 20%.                                                                                                                         
                                                                                                                                
Mr. Lindstrom  believed that the State  could make good progress  in                                                            
the  future.   Enforcement  is only  one  piece of  a comprehensive                                                             
tobacco control program.   When the State does not need to spend the                                                            
money on enforcement, there  are other elements of a control program                                                            
that would suggest to be  appropriate and that the Legislature would                                                            
be able at that time to  revisit the issue.  He assumed that for the                                                            
next  few  years,  the  requested  amount  would  be  the  level  of                                                            
expenditure needed.                                                                                                             
                                                                                                                                
Co-Chair  Donley   withdrew  his  motion  to  move   the  bill  from                                                            
Committee.  There being no objection, the motion was withdrawn.                                                                 
                                                                                                                                
Co-Chair Kelly  recommended a sunset  clause so that the  bill would                                                            
come before the Committee for review at a certain time.                                                                         
                                                                                                                                
Senator  Leman reiterated  his concerns,  questioning  how the  out-                                                            
years could create the best use of the State's money.                                                                           
                                                                                                                                
Mr. Lindstrom acknowledged that point was well taken.                                                                           
                                                                                                                                
Co-Chair Kelly  recommended that the  Committee zero out  the fiscal                                                            
note for the out years.                                                                                                         
                                                                                                                                
Co-Chair  Donley  thought  that the  Administration  would  use  the                                                            
fiscal  notes to their  advantage.   He agreed  that they should  be                                                            
zeroed out.   Senator Donley recommended  adding a Letter  of Intent                                                            
on the Senate Floor, which  would state that if the State comes into                                                            
compliance, the program should be phased out.                                                                                   
                                                                                                                                
Senator Leman  interjected if it was not phased out,  it should then                                                            
be revisited  to  determine if  that would  be the  best use of  the                                                            
State's money.                                                                                                                  
                                                                                                                                
                                                                                                                                
SFC 01 # 98, Side B 10:27 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair Kelly recommended  zeroing out the fiscal note and adding a                                                            
Letter of Intent.                                                                                                               
                                                                                                                                
Senator Green thought that the penalty was still in "limbo".                                                                    
                                                                                                                                
Mr. Lindstrom  advised that the federal  requirements are  evolving.                                                            
He thought that perhaps  over time, the component could be made into                                                            
a separate category.                                                                                                            
                                                                                                                                
Senator Austerman  noted that if the Legislation required  an annual                                                            
report, then  the concern would come  back to the Legislature  every                                                            
year.                                                                                                                           
                                                                                                                                
Co-Chair Kelly  thought that would be addressed in  Intent Language.                                                            
                                                                                                                                
Co-Chair  Kelly MOVED  to zero out  the fiscal  note for FY2005  and                                                            
draft intent language for the Senator floor.                                                                                    
                                                                                                                                
Co-Chair  Donley referenced  fiscal  note #2, pointing  out a  civil                                                            
position which he thought  could be phased out.  He pointed out that                                                            
there  currently   are  two   employees  within   the  Division   of                                                            
Occupational Licensing.                                                                                                         
                                                                                                                                
AT EASE 10:35 AM/ 10:36 AM                                                                                                      
                                                                                                                                
Co-Chair  Donley moved  that  all spending  portions  of the  fiscal                                                            
notes,  #5, #4,  #2,  be zeroed  out  for FY2005.   There  being  no                                                            
objection, the motion was ADOPTED.                                                                                              
                                                                                                                                
Co-Chair Donley  inquired if there currently were  personnel working                                                            
on the tobacco endorsements.                                                                                                    
                                                                                                                                
Ms. Reardon replied there are.                                                                                                  
                                                                                                                                
Co-Chair Donley questioned the necessity of adding a new clerk.                                                                 
                                                                                                                                
Ms. Reardon explained  that volume was being increased.   She stated                                                            
that  it would  be "good"  if the  Division became  more  proactive,                                                            
stressing that to date, the Division has been very passive.                                                                     
                                                                                                                                
Co-Chair  Donley thought the  position would  be a more appropriate                                                             
part-time position.                                                                                                             
                                                                                                                                
Ms. Reardon  suggested that "might"  be true.  She thought  that the                                                            
Division would  need a two-year position because first,  there would                                                            
be the  need for the multiple  endorsements.   She pointed  out that                                                            
half of  all the businesses  would need to  have their endorsements                                                             
within the  second year.   She acknowledged  that once everyone  had                                                            
signed up, there would probably be less work in the out years.                                                                  
                                                                                                                                
Co-Chair  Donley  asked  if  the fiscal  note  could  designate  the                                                            
investigator   only  in   the  out   years.     He  reiterated   the                                                            
recommendation for a temporary position only.                                                                                   
                                                                                                                                
Ms. Reardon commented that  the program could be re-evaluated by the                                                            
Legislature in the out years.                                                                                                   
                                                                                                                                
Co-Chair  Donley offered a  motion to the  Division of Occupational                                                             
Licensing,  Department of  Community & Economic  Development  fiscal                                                            
note, to delete  the two positions in the out years  from FY2005 on,                                                            
reduce the two full-time  position to one for the years FY2002-2004,                                                            
and add  a temporary  position  for FY2002  & 2003.   He added  that                                                            
language  should be  inserted to  indicate that  the Legislature  is                                                            
adding the temporary  position to assist with the  outreach database                                                            
with anticipation that  once that database is built, then one person                                                            
would be able to address it.                                                                                                    
                                                                                                                                
Ms. Reardon  commented that there  will be convictions for  sales to                                                            
minors  after FY2005.   If  the State  has  any need  to respond  to                                                            
convictions,  she would not be able  to bill the applications.   She                                                            
stressed  that the Division  needs to  be able  to bill the  tobacco                                                            
business license program for any enforcement activity.                                                                          
                                                                                                                                
Co-Chair Donley restated the motion.                                                                                            
                                                                                                                                
There being no objection, fiscal note #4 was AMENDED.                                                                           
                                                                                                                                
Co-Chair  Kelly requested  that Senator  Leman draft  the Letter  of                                                            
Intent.                                                                                                                         
                                                                                                                                
Co-Chair Kelly read proposed language for a Letter of Intent:                                                                   
                                                                                                                                
     "It is the intent of the Legislature that the Department of                                                                
     Health & Social Services annual report its progress in meeting                                                             
     federal compliant standards to reduce tobacco sales to                                                                     
     minors."                                                                                                                   
                                                                                                                                
Co-Chair  Donley moved  to report  CS HB 228(FIN)  out of  Committee                                                            
with individual  recommendations and with the amended  fiscal notes.                                                            
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
CS HB 228 (FIN)  MOVED from Committee  with "no recommendation"  and                                                            
with new  fiscal notes  by the  Department of  Community &  Economic                                                            
Development,  Department  of Law,  and the  Department  of Health  &                                                            
Social Services.                                                                                                                
                                                                                                                                
AT EASE 10:45 AM/10:47 AM                                                                                                       
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 172(JUD)                                                                               
     "An Act relating to therapeutic courts for offenders; to the                                                               
     authorized number of superior court judges; and amending Rule                                                              
     35, Alaska Rules of Criminal Procedure."                                                                                   
                                                                                                                                
HOUSE  SPEAKER REPRESENTATIVE  BRIAN  PORTER explained  that HB  172                                                            
would establish  two therapeutic court  pilot projects in  Anchorage                                                            
and Bethel.  The courts  are designed to serve as working models for                                                            
the development of other similar courts throughout the State.                                                                   
                                                                                                                                
The therapeutic courts are designed to:                                                                                         
                                                                                                                                
     ·    Assist offenders toward lasting sobriety;                                                                             
     ·    Protect society from alcohol and drug related crime;                                                                  
      ·    Provide prompt payment of restitution to victims;                                                                    
     ·    Encourage effective interaction and use of resources                                                                  
          among criminal justice and community agencies; and                                                                    
     ·    Reduce long-term costs relating to arrest, trial and                                                                  
          incarceration.                                                                                                        
                                                                                                                                
The pilot  projects would  be implemented  through joint efforts  of                                                            
the Court  System, Department  of Law, the  Public Defender  Agency,                                                            
the Department  of Corrections,  the Department  of Health  & Social                                                            
Services  and other agencies  in accordance  with a mutually  agreed                                                            
upon plan.  The courts  are to use existing public agencies, medical                                                            
and treatment  services, housing and other public,  private and non-                                                            
profit  community services  as well.   The Bethel  pilot project  is                                                            
designed to coordinate  services with municipal and  local entities,                                                            
taking into consideration  local resources and cultural  traditions,                                                            
to facilitate rehabilitation.                                                                                                   
                                                                                                                                
Co-Chair  Donley asked  for assurance  that should  the therapeutic                                                             
courts  go away  that  the  number of  judges  would decrease.    He                                                            
questioned how the bill would address that mechanism.                                                                           
                                                                                                                                
Representative  Porter  understood  that  the  pilot  program  would                                                            
sunset.                                                                                                                         
                                                                                                                                
Co-Chair  Donley asked which  section of the  bill provided  for the                                                            
sunset reference.                                                                                                               
                                                                                                                                
Representative  Porter noted that  the language was located  on Page                                                            
2, Line 7.                                                                                                                      
                                                                                                                                
Co-Chair Donley  reiterated his concern that when  the pilot program                                                            
ends,  that  there  is no  language  which  repeals  the  additional                                                            
judges.                                                                                                                         
                                                                                                                                
Representative Porter reiterated  that it was his understanding that                                                            
the  positions would  stay  in effect  until  the sunset  date.   He                                                            
recommended that the Courts address that concern.                                                                               
                                                                                                                                
Co-Chair  Kelly advised  that  the fiscal  note indicates  that  the                                                            
positions  stay "out into  the future".  He  recommended that  it be                                                            
revised.                                                                                                                        
                                                                                                                                
DOUG   WOOLIVER,    Administrative    Attorney,   Office    of   the                                                            
Administrative  Director, Alaska Court  System, explained  that now,                                                            
the way the bill reads,  the judges would remain in statute.  If the                                                            
Legislature  wanted to sunset  those positions,  the language  would                                                            
need to change.   It is difficult to "un-seat" a sitting  judge.  If                                                            
the statute  was changed,  when a positions  opens, it would  not be                                                            
filled.                                                                                                                         
                                                                                                                                
Co-Chair Donley  recommended that a sunset provision  be placed into                                                            
Section 2 of the bill.                                                                                                          
                                                                                                                                
Representative  Porter  commented  that  it  would  be a  policy  of                                                            
whether to place  that language into the bill now  or wait until the                                                            
end of the three  years and bring it back for legislative  approval.                                                            
                                                                                                                                
Co-Chair  Donley advised  that it  would take another  bill to  make                                                            
that change.                                                                                                                    
                                                                                                                                
Mr. Wooliver discussed  that the Court System supports  HB 172.  The                                                            
bill builds upon the pioneering  work that Judge Wannamaker has done                                                            
in  the  district  court  with  misdemeanor   DWI's  (Driving  While                                                            
Intoxicated)  and applies that work  to felonies on DWI's.   It will                                                            
address those  persons with serious  drinking problems who  have not                                                            
responded to the current  system.  Both Anchorage and Bethel already                                                            
have more felony  filings than they can handle.  Bethel  is the most                                                            
overwhelmed  court in the  State of Alaska  handling over twice  the                                                            
number  of cases  per judge.  The  extra work  that  comes with  the                                                            
therapeutic model would be too much for the State to handle.                                                                    
                                                                                                                                
Mr. Wooliver  added  that if  the two  judges were  brought in,  the                                                            
benefit would be much broader  than just the therapeutic courts work                                                            
and would allow  all felony cases  to work through the process  more                                                            
quickly.  He encouraged members to pass the bill from Committee.                                                                
                                                                                                                                
AT EASE 11:00 AM / 1:21 PM                                                                                                      
                                                                                                                                
Co-Chair  Kelly advised that  there was an  amendment being  drafted                                                            
for the bill.                                                                                                                   
                                                                                                                                
Mr. Wooliver  reminded  Committee  members that  the Superior  Court                                                            
position in  Bethel is actually an  upgrade of an existing  district                                                            
court position.   The funding  offsets that  which was provided  for                                                            
the district court judge.                                                                                                       
                                                                                                                                
Co-Chair Kelly  clarified that the  $486,000 was a net amount  "over                                                            
and above",  and would not create  something new but rather  upgrade                                                            
the current district court judge.                                                                                               
                                                                                                                                
Mr. Wooliver affirmed that information.                                                                                         
                                                                                                                                
Co-Chair  Kelly stated that  HB 172 would  be HELD in Committee  for                                                            
further consideration.                                                                                                          
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 90(FIN)                                                                                              
     "An Act relating to reimbursement of municipal bonds for                                                                   
     school construction; and providing for an effective date."                                                                 
                                                                                                                                
                                                                                                                                
Co-Chair  Kelly commented that  HB 90 was  the technical fix  to the                                                            
bonds,  which had been  authorized  by the communities.   A  problem                                                            
with the date, prohibited action from being taken.                                                                              
                                                                                                                                
Co-Chair Kelly referenced Page 5, Line 5, the language "or 10".                                                                 
                                                                                                                                
Senator Hoffman  noted that a proposed  pending amendment  would add                                                            
two  schools  in  the  Seward  area, Akutan  and  False  Pass.    He                                                            
reiterated  that the amendment was  still pending.  He advised  that                                                            
those communities had already built their schools.                                                                              
                                                                                                                                
Amendment #1:  Senator Hoffman moved  to adopt. [Copy on  File].  He                                                            
noted  a technical  change  to  Amendment  #1 on  Page  2, Line  22,                                                            
deleting "350" and inserting  "290" and deleting "372" and inserting                                                            
"305".                                                                                                                          
                                                                                                                                
Co-Chair Donley  objected to Amendment #1.  He asked  if there was a                                                            
revised fiscal note indicating the cost of the change.                                                                          
                                                                                                                                
Senator  Hoffman  remembered  that  the cost  would  be 70%  of  the                                                            
requested $1.1  million dollars for Akutan and $1.4  million dollars                                                            
for False Pass School.                                                                                                          
                                                                                                                                
Co-Chair Donley  recommended that  the amendment be proposed  on the                                                            
Senate Floor.                                                                                                                   
                                                                                                                                
Senator Hoffman  agreed and  WITHDREW the  motion to pass  Amendment                                                            
#1.                                                                                                                             
                                                                                                                                
Co-Chair  Donley moved  to report CS  HB 90 (FIN)  out of  Committee                                                            
with individual  recommendations  and with  the accompanying  fiscal                                                            
note.  There being no objection, it was so ordered.                                                                             
                                                                                                                                
CS   HB   90   (FIN)   MOVED  from   Committee    with  "individual                                                             
recommendations" and with  fiscal note #1 by Department of Education                                                            
& Early Development.                                                                                                            
                                                                                                                                
AT EASE 1:30 PM / 1:35 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 186                                                                                                        
     "An Act establishing a limit on the general obligation debt                                                                
     that may be authorized and issued by home rule and general law                                                             
     municipalities; and providing for an effective date."                                                                      
                                                                                                                                
                                                                                                                                
Co-Chair Donley pointed  out the new fiscal note.  He moved the note                                                            
from the Senate Finance  Committee dated 5/5/01 for adoption.  There                                                            
being no objection, it was ADOPTED.                                                                                             
                                                                                                                                
Co-Chair Donley  moved to adopt committee  substitute #22-LS0851\F,                                                             
Cook,  5/4/01  and  report  it  out  of Committee   with  individual                                                            
recommendations and with the adopted amended fiscal note.                                                                       
                                                                                                                                
Senator Olson  objected.   He stated that  the bill was complex  and                                                            
voiced  concerned with  the  consequences  of the  legislation.   He                                                            
noted that ex-Attorney  General Avrum Gross has stated that the bill                                                            
would have  a negative  impact on  the North Slope  and the  capital                                                            
improvement projects.                                                                                                           
                                                                                                                                
Senator Olson  pointed out that presently, there are  three villages                                                            
that do  not have running  water or flush  toilets.  There  are four                                                            
villages that have incomplete  water and sewer projects.  He worried                                                            
about  the  negative   effects  of  the  proposed  legislation   and                                                            
reiterated his opposition to passage of the bill.                                                                               
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR:       Green, Leman, Ward, Wilken, Donley, Kelly                                                                       
OPPOSED:        Hoffman, Olson                                                                                                  
                                                                                                                                
Senator Austerman was not present for the vote.                                                                                 
                                                                                                                                
The motion PASSED (6-2).                                                                                                        
                                                                                                                                
CS  SB   186  (FIN)   MOVED  from   Committee  with   a  "do   pass"                                                            
recommendation   and  with  fiscal  notes  by  the  Senate   Finance                                                            
Committee and the Department of Revenue.                                                                                        
                                                                                                                                
AT EASE 1:40 PM / 1:51 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 250(FIN)                                                                                             
     "An  Act relating  to missions  and measures  to be applied  to                                                            
     certain   expenditures  by  the   executive  branch   of  state                                                            
     government   and the  University   of  Alaska  from  the  state                                                            
     operating budget for  the fiscal year ending June 30, 2002; and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
Amendment  #1: Senator  Leman moved  to adopt [Copy  on File].   The                                                            
amendment would  insert language:  "Investment returns expressed  in                                                            
terms of  most recent 5-year  and 1-year  averages measured  against                                                            
performance benchmarks."                                                                                                        
                                                                                                                                
There being no objection, Amendment #1 was ADOPTED.                                                                             
                                                                                                                                
Amendment #2: Senator Leman moved to adopt [Copy on File].                                                                      
                                                                                                                                
Co-Chair  Donley explained  that Amendment  #2 would encourage  that                                                            
the  ASMI (Alaska  Seafood  Marketing  Institute)  program  maximize                                                            
Alaska resident  employment.  It would  also encourage the  Division                                                            
of Libraries,  Archives, and Museums  to facilitate the transfer  of                                                            
library services  and training to local governments.   Additionally,                                                            
the  amendment   would   suggest  that   the  Alaska  Postsecondary                                                             
Commission try  to maintain competitive rates.  The  amendment would                                                            
request that the  Division of Sport Fish, Department  of Fish & Game                                                            
change the language measuring "success".                                                                                        
                                                                                                                                
There being no objection, Amendment #2 was adopted.                                                                             
                                                                                                                                
                                                                                                                                
SFC 01 # 99, Side A 2:03 PM                                                                                                     
                                                                                                                                
                                                                                                                                
Senator Leman  moved to report SCS CS HB 250 (FIN)  out of Committee                                                            
with  individual  recommendations  and with  the  accompanying  zero                                                            
fiscal note.  There being no objection, it was so ordered.                                                                      
                                                                                                                                
SCS CS HB 250  (FIN) MOVED from Committee  with "no recommendation"                                                             
and with a House Finance fiscal note #1.                                                                                        
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 71(FIN) am                                                                                           
     "An   Act  relating   to  the   education   of  children   with                                                            
     disabilities   and  of   gifted  children;   relating   to  the                                                            
     Governor's  Council on Disabilities and Special  Education; and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
Senator  Green  stated  that  HB 71  was  a bill  requested  by  the                                                            
Governor.   Federal education regulations  took effect in  May 1999.                                                            
The  bill  would  amend  inconsistent  components   of  the  State's                                                            
statutes to  bring Alaska into compliance  with the current  federal                                                            
special education mandates,  including emphasizing the participation                                                            
of  parents  in  making  decisions  relating  to  special  education                                                            
eligibility and services.                                                                                                       
                                                                                                                                
She  added that  an important  protection  provided  to both  school                                                            
districts  and  children  with  disabilities,   was  a  due  process                                                            
hearing.   The  bill claries  the procedures  for  requesting a  due                                                            
process  hearing  and  streamlines  that  process  for  selecting  a                                                            
hearing  officer  by having  the  Department  of Education  &  Early                                                            
Development   assign  officers  from   a  list  maintained   by  the                                                            
Department.                                                                                                                     
                                                                                                                                
Alaska  law  presently  requires  that  a  school  district  provide                                                            
special education services  to children with disabilities who reside                                                            
in the  district.  State  law also exempts  children from  attending                                                            
public  school if  they are  enrolled  in an  alternative  education                                                            
program.   That aspect  has resulted  in confusion  regarding  which                                                            
school district  of another  educational agency  is responsible  for                                                            
providing  special   education  services.    HB  71  addresses   the                                                            
allocation  problems of  the responsibilities  and coordination  for                                                            
the  provision  of special  education  services  among  the  various                                                            
educational agencies.                                                                                                           
                                                                                                                                
BRUCE  JOHNSON,  Commissioner,   Department  of  Education  &  Early                                                            
Development, voiced support for the bill.                                                                                       
                                                                                                                                
Senator Green  moved to report CS HB 71 (FIN) out  of Committee with                                                            
individual  recommendations and with  the accompanying fiscal  note.                                                            
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
CS HB 71 (FIN) MOVED from  Committee with a "do pass" recommendation                                                            
and with  fiscal  note #1  by the Department  of  Education &  Early                                                            
Development.                                                                                                                    
                                                                                                                                
AT EASE 2:00 PM / 6:29 PM                                                                                                       
                                                                                                                                
Senator  Green moved  to  rescind  action taken  on  adopting CS  HB
71(FIN)am.  There being no objection, the action was RESCINDED.                                                                 
                                                                                                                                
Senator  Green   moved  to  report   the  amended  version   of  the                                                            
legislation, 22-GH1010\L.a,  CS HB 71(FIN) am, out of Committee with                                                            
individual recommendations  and the accompanying fiscal note.  There                                                            
being no objection, it was so ordered.                                                                                          
                                                                                                                                
CS  HB   71(FIN)  am  MOVED   from  Committee   with  a  "do   pass"                                                            
recommendation  and  with  fiscal  note  #1  by  the  Department  of                                                            
Education & Early Development.                                                                                                  
                                                                                                                                
AT EASE 6:30 PM / 6:34 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 234(FIN) am                                                                                          
     "An  Act relating to  the tobacco use  education and  cessation                                                            
     fund and to smoking  education and cessation programs; relating                                                            
     to  funding  the tobacco  use  education  and  cessation  fund;                                                            
     relating to financing  of construction and major maintenance of                                                            
     public  school facilities,  facilities  for  the University  of                                                            
     Alaska, and  facilities for ports and harbors;  authorizing the                                                            
     commissioner of revenue  to sell the right to receive a portion                                                            
     of   the  anticipated   revenue  from   a  tobacco   litigation                                                            
     settlement to the  Northern Tobacco Securitization Corporation;                                                            
     relating  to the deposit of certain anticipated  revenue from a                                                            
     tobacco  litigation  settlement;  authorizing  the issuance  of                                                            
     bonds by  the Northern Tobacco Securitization  Corporation with                                                            
     proceeds  to  finance  public  school  construction  and  major                                                            
     maintenance,  facilities  for  the  University of  Alaska,  and                                                            
     facilities   for ports   and  harbors;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
AT EASE 6:36 PM / 6:42 PM                                                                                                       
                                                                                                                                
Co-Chair  Donley  moved to  adopt work  draft  version 22-LS0863\W,                                                             
Cook, 5/6/01,  as the version before  the Committee with  one change                                                            
to   Page  5,   Line   7,  deleting   "$3,000,000"   and   inserting                                                            
"$6,000,000".   He added that Line  11 would need to be adjusted  to                                                            
reflect that change.                                                                                                            
                                                                                                                                
Senator Hoffman OBJECTED.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:       Ward, Wilken, Austerman, Green, Leman, Donley, Kelly                                                            
OPPOSED:        Olson, Hoffman                                                                                                  
                                                                                                                                
The motion PASSED (7-2).                                                                                                        
                                                                                                                                
AT EASE 6:44 PM / 6:52 PM                                                                                                       
                                                                                                                                
Co-Chair Donley moved to  report SCS CS HB 234(FIN) out of Committee                                                            
with  individual  recommendations  and  with  the  corrected  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
Senator Hoffman and Senator Wilken objected.                                                                                    
                                                                                                                                
Senator Wilken commented  that 99% of those schools listed on Page 3                                                            
were  from unorganized  Alaska.   He added  that  Fairbanks has  had                                                            
success  with  prototype  schools.    He  spoke  to  how  much  more                                                            
expensive  education  is in the  Bush Alaska  and  questioned if  it                                                            
could really  be ten times  more expensive.   He thought that  there                                                            
could be  a better way.   Senator Wilken  recommended standardizing                                                             
the schools.   He suggested that the  Legislature should  accept the                                                            
challenge of exploring ideas for the prototype schools.                                                                         
                                                                                                                                
Senator Wilken WITHDREW HIS OBJECTION.                                                                                          
                                                                                                                                
Senator Hoffman  stated that  he objected because  all of the  major                                                            
maintenance concerns which  need to be addressed.  If these concerns                                                            
are not  addressed,  they will  become more  expensive projects  and                                                            
then become  school construction projects.   He stressed  that there                                                            
is enough  work to do on  the present school  list without  ignoring                                                            
the major  maintenance  issues.   Those issues  should be  addressed                                                            
now.                                                                                                                            
                                                                                                                                
Senator  Olson  spoke to  the  shortsightedness  voiced  by  Senator                                                            
Wilken.  He claimed that  one of the reasons that the numbers are so                                                            
high is  that there  was inadequate  funding in  the beginning.   If                                                            
there  had been  better planning  from  the beginning,  the  numbers                                                            
would not be so  high.  He stated that the proposed  legislation was                                                            
a "band-aid" approach.                                                                                                          
                                                                                                                                
Co-Chair  Kelly interjected  that the  list was  not intended  to be                                                            
directed  at  the  Senators   from  Bush  Alaska  and  that  it  was                                                            
coincidental  that the schools were  from the districts of  Senators                                                            
Hoffman and Olson.   He  reiterated that there was no politics being                                                            
played with the way the list came about.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:       Ward, Wilken, Austerman, Green, Leman, Donley, Kelly                                                            
OPPOSED:        Olson, Hoffman                                                                                                  
                                                                                                                                
The motion PASSED (7-2).                                                                                                        
                                                                                                                                
SCS  CS HB  234(FIN)  was  reported  out  of Committee  with  a  "no                                                            
recommendation"  and  with two  fiscal notes  by  the Department  of                                                            
Revenue.                                                                                                                        
                                                                                                                                
AT EASE 6:59 PM / 7:07 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76(FIN)                                                                       
     "An  Act  providing   for  and  relating  to  the  issuance  of                                                            
     certificates of participation  to finance construction of a new                                                            
     facility  to  be known  as the  Alaska  Psychiatric  Institute;                                                            
     giving notice of and  approving the entry into and the issuance                                                            
     of certificates of  participation in a lease-purchase agreement                                                            
     for construction  of a new facility  to be known as  the Alaska                                                            
     Psychiatric   Institute;  giving  notice   of  the  intent  and                                                            
     approval   to   retain   investment   income   from   pertinent                                                            
     appropriations  to be applied to the cost of  construction of a                                                            
     new facility  to be known as the Alaska Psychiatric  Institute;                                                            
     relating  to the construction of a facility to  be known as the                                                            
     Alaska  Psychiatric Institute;  and providing for an  effective                                                            
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
Amendment #1: Co-Chair  Donley stated that he had contacted the U.S.                                                            
Congressional  office and they indicated  that they were  willing to                                                            
attempt to secure  federal funding to guarantee that  the bill could                                                            
function.  He noted  that with  that information  available, he  had                                                            
introduced  Amendment  #1.  [Copy  on File].   The  amendment  would                                                            
delete all material  on Page 4, Line 19 and would  add new language.                                                            
                                                                                                                                
Co-Chair Donley moved to adopt Amendment #1.                                                                                    
                                                                                                                                
Co-Chair  Kelly objected for  the purpose of  an explanation  of the                                                            
impact of the amendment.                                                                                                        
                                                                                                                                
Co-Chair  Donley  explained   that  the  amendment  would  make  the                                                            
legislation  contingent   upon  federal  funding   for  the  project                                                            
demolition.  He feared  that without that money available, the State                                                            
would be at a great loss.                                                                                                       
                                                                                                                                
Co-Chair Kelly withdrew his objection.                                                                                          
                                                                                                                                
Senator  Green asked if  the only  place that  the money could  come                                                            
from would be U.S. Congress.                                                                                                    
                                                                                                                                
Co-Chair  Donley replied  that the only  recommendation of  possible                                                            
funds for the demolition has been the federal government.                                                                       
                                                                                                                                
Without further discussion, Amendment #1 was ADOPTED.                                                                           
                                                                                                                                
Co-Chair  Donley  moved  to report  SCS  CS  SS  HB 76(FIN)  out  of                                                            
Committee with individual  recommendations and with the accompanying                                                            
fiscal notes.  There being no objection, it was so ordered.                                                                     
                                                                                                                                
SCS CS SS HB 76 (FIN) MOVED  from Committee with "no recommendation"                                                            
and  with  fiscal notes  #1  by  the  House HESS  Committee,  #2  by                                                            
Department  of  Transportation   &  Public  Facilities   and  #3  by                                                            
Department of Revenue.                                                                                                          
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 8(TRA)                                                                                 
     "An Act establishing  the Legislative Pioneer  Road Development                                                            
     Task Force; and providing for an effective date."                                                                          
                                                                                                                                
                                                                                                                                
REPRESENTATIVE NORMAN ROKEBERG  stated that the proposed legislation                                                            
would establish  a Legislative Pioneer  Road Development  Task Force                                                            
whose duties would include:                                                                                                     
                                                                                                                                
     ·    Research  existing   plans for  road  development  in  the                                                            
          State;                                                                                                                
     ·    Identify  roads  that  are important  to  Alaska's  future                                                            
          economic development;                                                                                                 
     ·    Study  feasibility  of developing  or  upgrading roads  in                                                            
           order to promote future economic development;                                                                        
     ·    Determine  availability and source of  funds to develop or                                                            
          upgrade those roads;                                                                                                  
     ·    Review    alternative   funding   sources    for   ongoing                                                            
          maintenance; and                                                                                                      
     ·    Establish  a priority ranking  for projects to  develop or                                                            
          upgrade those roads identified by the Task Force.                                                                     
                                                                                                                                
The  Task  Force  would  complete  that  work  and  would  make  the                                                            
recommendations  in  January  2002.      The  legislation  would  be                                                            
                     th                                                                                                         
repealed on March 15, 2002.                                                                                                     
                                                                                                                                
Senator Leman  asked why  the State Board  of Registration  had been                                                            
included in Item #4, Page 1.                                                                                                    
                                                                                                                                
Representative  Rokeberg replied that  portion of the bill  had been                                                            
amended in the  last Committee of referral.  The intent  was to move                                                            
to a non-governmental area.                                                                                                     
                                                                                                                                
Senator  Leman  asked which  version  of  the  bill was  before  the                                                            
Committee.                                                                                                                      
                                                                                                                                
Representative  Rokeberg  replied  that  the  Senate Transportation                                                             
version was before the Senate Finance Committee.                                                                                
                                                                                                                                
Senator  Austerman   questioned  from   where  the  road   list  had                                                            
originated.                                                                                                                     
                                                                                                                                
Representative Rokeberg  replied it resulted from the "fruits of all                                                            
the members" in the Legislature.                                                                                                
                                                                                                                                
Co-Chair Donley  moved to report SCS  CS HB 8(TRA) out of  Committee                                                            
with individual  recommendations  and with  the accompanying  fiscal                                                            
notes.  There being no objection, it was so ordered.                                                                            
                                                                                                                                
SCS  CS   HB  8(TRA)  MOVED   from  Committee   with  a  "do   pass"                                                            
recommendation and with  fiscal notes #1 by the Legislative Council,                                                            
#2 by Department  of Transportation  & Public  Facilities and  a new                                                            
note by Department of Community & Economic Development.                                                                         
                                                                                                                                
AT EASE 7:16 PM / 9:54 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 32(JUD) am                                                                                           
     "An Act relating to  the forfeiture of property used to possess                                                            
     or distribute child  pornography, to commit indecent viewing or                                                            
     photography,  to  commit  a  sex offense,  or  to  solicit  the                                                            
     commission  of,  attempt  to  commit,  or  conspire  to  commit                                                            
     possession  or  distribution  of  child  pornography,  indecent                                                            
     viewing or photography, or a sexual offense."                                                                              
                                                                                                                                
                                                                                                                                
Senator Ward  moved to report  SCS CS HB 32  (JUD) out of  Committee                                                            
with individual  recommendations  and with  the accompanying  fiscal                                                            
notes. There being no objection, it was so ordered.                                                                             
                                                                                                                                
SCS CS HB 32(JUD) MOVED  from Committee with "no recommendation" and                                                            
with  fiscal  notes  #1  by  the  Alaska  Court  System  and  #2  by                                                            
Department of Public Safety.                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 172(JUD)                                                                               
     "An Act  relating to therapeutic  courts for offenders;  to the                                                            
     authorized  number of superior court judges;  and amending Rule                                                            
     35, Alaska Rules of Criminal Procedure."                                                                                   
                                                                                                                                
BLAIR MCCUNE,  Deputy Director, Public  Defender Agency,  Department                                                            
of Administration,  testified via Teleconference from  Anchorage and                                                            
voiced support  for the proposed  legislation.   He pointed  out the                                                            
positive results  that type of court  has achieved in the  Anchorage                                                            
area.  He reiterated strong support for the bill.                                                                               
                                                                                                                                
Co-Chair  Donley  referenced  work  draft  22-LS0612\U,   Luckhaupt,                                                            
5/6/01 and explained how it differed from the other versions.                                                                   
                                                                                                                                
Co-Chair  Kelly asked what  the impact would  be of sun-setting  the                                                            
judges positions.                                                                                                               
                                                                                                                                
Mr.  Wooliver explained  that  the  way in  which the  amendment  is                                                            
written, the sunset  provision, reduces the number  of judges in the                                                            
 th                                                                                                                             
4  Judicial District back  down to six and reduces the number in the                                                            
 rd                                                                                                                             
3   Judicial District  back  down to  17.   The amendment  does  not                                                            
tailor those reductions  to the communities of Anchorage and Bethel.                                                            
The amendment does not  identify which communities that those judges                                                            
would  actually  be  vacated  from.    Most of  the  judges  are  in                                                            
Anchorage.  Although, there  would continue to be the same number of                                                            
judges as now,  it does not tailor  the vacancy to Anchorage  and/or                                                            
Bethel.                                                                                                                         
                                                                                                                                
Co-Chair  Donley  moved to  adopt  the work  draft version  "U"  and                                                            
conceptual  Amendment #1 on  Page 7, Lines  2-4.  He noted  that the                                                            
conceptual deletion would  place a sunset of the Bethel Court.  That                                                            
would make the Bethel position  permanent and the Anchorage position                                                            
would be deleted at the time of the sunset.                                                                                     
                                                                                                                                
Mr.  Wooliver advised  that  would solve  the potential  problem  in                                                            
Bethel, however,  it would be disruptive  in Anchorage.   He agreed,                                                            
it would  be less  disruptive in  Anchorage, as  they have far  more                                                            
judges.  The Court  System would rather not see a  sunset provision.                                                            
Mr. Wooliver  noted  that the current  drafting  was an improvement                                                             
over the original draft.                                                                                                        
                                                                                                                                
There being no objection, version "U' was ADOPTED and AMENDED.                                                                  
                                                                                                                                
Amendment  #2:  Senator Donley  moved  to  adopt Amendment  #2,  22-                                                            
LS0612\W.1,  Luckhaupt, 5/6/01, inserting  the language "an  offense                                                            
under AS 11.41.130"  on Page 4, Line 19.  There being  no objection,                                                            
the amendment was ADOPTED.                                                                                                      
                                                                                                                                
Senator Donley moved to  report SCS CS HB 172 (FIN) out of Committee                                                            
with individual  recommendations  and with  the accompanying  fiscal                                                            
note modified  to reflect the sunset  date and all notes  except the                                                            
one for  the Public Defender,  Department  of Administration.   That                                                            
note would be zeroed out.                                                                                                       
                                                                                                                                
Co-Chair Kelly OBJECTED.                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:       Ward, Austerman, Leman, Olson, Donley                                                                           
OPPOSED:        Wilken, Hoffman, Kelly                                                                                          
                                                                                                                                
Senator Green was not present for the vote.                                                                                     
                                                                                                                                
The MOTION PASSED (5-3).                                                                                                        
                                                                                                                                
Co-Chair  Kelly clarified  that  in the  vote, fiscal  note #7,  the                                                            
Public  Defender  Agency, Department  of  Administration,  had  been                                                            
zeroed out.                                                                                                                     
                                                                                                                                
Senator Donley moved to  report SCS CS HB 172 (FIN) out of Committee                                                            
with individual  recommendations  and with  the accompanying  fiscal                                                            
notes.  There being no objection, it was so ordered.                                                                            
                                                                                                                                
SCS CS  HB 172(FIN) MOVED  from Committee  with "no recommendation"                                                             
and  with fiscal  notes  #2  by Department  of  Corrections,  #5  by                                                            
Department of Health &  Social Services, #8 by Department of Law and                                                            
new notes by the Alaska Court System.                                                                                           
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 32(JUD) am                                                                                           
     "An Act relating to  the forfeiture of property used to possess                                                            
     or distribute child  pornography, to commit indecent viewing or                                                            
     photography,  to  commit  a  sex offense,  or  to  solicit  the                                                            
     commission  of,  attempt  to  commit,  or  conspire  to  commit                                                            
     possession  or  distribution  of  child  pornography,  indecent                                                            
     viewing or photography, or a sexual offense."                                                                              
                                                                                                                                
                                                                                                                                
Senator  Ward  moved  to  rescind  action  taken  on  moving  CS  HB
32(JUD)am  from Committee.    There being  no objection,  action  on                                                            
moving the bill from Committee was RESCINDED.                                                                                   
                                                                                                                                
Senator Ward moved to report  a different version, SCS CS HB 32{JUD)                                                            
from  Committee   with  individual  recommendations   and  with  the                                                            
accompanying  fiscal  notes. There  being  no objection,  it was  so                                                            
ordered.                                                                                                                        
                                                                                                                                
SCS CS HB 32(JUD)  MOVED from Committee  with a "no recommendation"                                                             
and  with fiscal  notes #1  by the  Alaska  Court System  and #2  by                                                            
Department of Public Safety.                                                                                                    
                                                                                                                                
                                                                                                                                
AT EASE 10:18 PM / 10:44 PM                                                                                                     
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 179(FIN)                                                                                             
     "An Act relating to underage drinking and drug offenses; and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  ROKEBERG presented  HB 179.  He pointed out  that in                                                            
1994,  the  Legislature  enacted  the  "Use  It, Lose  It"  law  (AS                                                            
28.15.183)  for minors who are caught  possessing or using  alcohol.                                                            
If a minor is caught using  alcohol, their driver's license would be                                                            
revoked for a period of time.                                                                                                   
                                                                                                                                
In December  2000, in a  case called State  versus Niedermeyer,  the                                                            
Alaska  Supreme Court  found  that taking  away a  minor's  driver's                                                            
license for  possession or  consumption of  alcohol or a  controlled                                                            
substance,  without  giving  them  a trial,  was  a violation  of  a                                                            
minor's constitutional right to due process.                                                                                    
                                                                                                                                
HB  179 would  impose  appropriate  punishments  on minors  who  use                                                            
alcohol,  and would  be a  deterrent to  minors  when they  consider                                                            
drinking.    Statistics  show  that  the  earlier  a  person  begins                                                            
drinking,  the more likely  they are to have  problems with  alcohol                                                            
later  in life.   The bill  would establish  a  graduated system  of                                                            
punishment  for  minors  who are  caught  consuming,  possessing  or                                                            
controlling alcohol.                                                                                                            
                                                                                                                                
     ·    On a minor's first offense, they would be subject to a                                                                
          fine  of between  $200-$600 dollars,  must attend  alcohol                                                            
          information school, and would be placed on probation.                                                                 
     ·    On a minor's second offense, the minor would be guilty of                                                             
          repeat  minor consuming and would be subject  to a fine of                                                            
          $1000,  at  least  48 hours  of  community  service  work,                                                            
           three-month license revocation and probation.                                                                        
     ·    A minor's third offense would cause them to be guilty of                                                              
          habitual  minor  consuming.    That  would  be a  Class  B                                                            
          misdemeanor,  which  results in  up to  $1000 fine and  90                                                            
          days  in jail.   In addition, the  minor would lose  their                                                            
          license   for a  period  of  six  months,  would  also  be                                                            
          required  to complete at least 96 hours  of community work                                                            
          service, and would be placed on probation.                                                                            
                                                                                                                                
Representative  Rokeberg  pointed out  that the  fiscal notes  total                                                            
$1.1  million  dollars.   He  noted  that  the  requested  treatment                                                            
provisions had  been reduced by recommending a pilot  treatment-only                                                            
program in Ketchikan, Kotzebue,  Fairbanks and Juneau.  He urged the                                                            
Committee's support of the legislation.                                                                                         
                                                                                                                                
BLAIR  MCCUNE,  Deputy Director,  Alaska  Public  Defenders  Agency,                                                            
Department  of Administration,  testified  via  teleconference  from                                                            
Anchorage and  voiced concern with the mandatory hours  of community                                                            
work service.   The  judge should  be given  discretion whether  the                                                            
child should  spend more time  at school or  at home rather  than do                                                            
the community work service.                                                                                                     
                                                                                                                                
                                                                                                                                
SFC 01 # 99, Side B 10:50 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr.  McCune continued  that  the Public  Defender  usually does  not                                                            
represent  Section  #2, the  repeat  offender  as a  violation  with                                                            
community work  service.  He added  that he has tried to  reduce the                                                            
regular 75%  estimate to about 40%  because it presents a  violation                                                            
in  the  fiscal  note.   He  offered  to  answer  questions  of  the                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Austerman referenced the fiscal notes.                                                                                  
                                                                                                                                
ELMER  LINDSTROM, Special  Assistant,  Office of  the Commissioner,                                                             
Department  of Health  and Social  Services,  addressed the  reduced                                                            
fiscal  note  from  the version  introduced  in  the  House  Finance                                                            
Committee.  He noted that  fiscal note had been dramatically reduced                                                            
in that Committee.                                                                                                              
                                                                                                                                
Senator Wilken moved to  report CS HB 179(FIN) out of Committee with                                                            
individual recommendations  and with the accompanying  fiscal notes.                                                            
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
CS HB 179(FIN)  MOVED from Committee with a "no recommendation"  and                                                            
with fiscal notes  #2 by Department of Corrections,  #5, #6 & #10 by                                                            
the Department  of Health  & Social  Services, #8  by Department  of                                                            
Administration,  #9  by the  Alaska  Court System,  and  #11 by  the                                                            
Department of Law.                                                                                                              
                                                                                                                                
AT EASE 10:53 PM / 11:06 PM                                                                                                     
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 132(2d RLS)                                                                                          
     "An Act relating to  the possession, distribution, importation,                                                            
     and  transportation   of  alcohol  in  a  local   option  area;                                                            
     requiring liquor license  applicants to submit fingerprints for                                                            
     the purpose of conducting  a criminal history background check,                                                            
     and relating to the  use of criminal justice information by the                                                            
     Alcoholic  Beverage Control Board; relating to  the offenses of                                                            
     operating  a  motor  vehicle,  aircraft,  or  watercraft  while                                                            
     intoxicated  and refusal  to take  a breath  test; relating  to                                                            
     implied   consent  to  take   a  chemical  test;  relating   to                                                            
     presumptions  arising from the amount of alcohol  in a person's                                                            
      breath or blood; and providing for an effective date."                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair Kelly stated that  the fiscal notes had been written to the                                                            
wrong version  of the bill, making  implementation of the  bill much                                                            
more expensive.  He noted  that the "cure" to the situation would be                                                            
on Page 13, Line 14, Section 21, the effective date.                                                                            
                                                                                                                                
MIKE TIBBLES,  Staff, Representative  Williams,  commented that  the                                                            
fiscal  notes  were   based  on  a  10-month  effect   for  the  DWI                                                            
provisions, Sections 10  & 15.  On Page 13, Line 14, Sections 10 and                                                            
15 of the act take effect on September 1, 2001.                                                                                 
                                                                                                                                
Co-Chair  Donley moved  the suggestions  made  by Mr.  Tibbles  as a                                                            
conceptual  amendment.   There being  no objection,  the  conceptual                                                            
amendment was ADOPTED.                                                                                                          
                                                                                                                                
Representative  Rokeberg noted that  the State could be at  risk for                                                            
about $800 thousand  dollars of public safety transportation  money.                                                            
                                                                                                                                
Senator Hoffman  addressed Section  2.  He noted that the  limit had                                                            
been established  by legislation he submitted twelve  years ago.  He                                                            
suggested  that it be reduced  to 10.5 liters  and recommended  that                                                            
the possession section, Section 1, be eliminated.                                                                               
                                                                                                                                
Representative Rokeberg  agreed with Senator Hoffman.  He noted that                                                            
the  current  language  was taken  from  a suggestion  made  by  the                                                            
Department of Law.                                                                                                              
                                                                                                                                
Amendment #2:  Senator Hoffman moved  to adopt conceptual  Amendment                                                            
#2, which would eliminate  Section 1, and in Section 2, would reduce                                                            
12 liters to 10.5 liters.                                                                                                       
                                                                                                                                
Representative   Rokeberg  pointed   out  that  there  was   another                                                            
reference in Section  9 to that concern.  There being  no objection,                                                            
Amendment #2 was ADOPTED.                                                                                                       
                                                                                                                                
Representative  Rokeberg informed  Committee  members that the  bill                                                            
would provide  assistance  for the Department  of Public Safety  and                                                            
the Department of Law in  implementing the $1.5 million dollar grant                                                            
to help curb "bootlegging"  in the State of Alaska.  He thought that                                                            
it was unfair  that other agencies had attached fiscal  notes to the                                                            
bill.                                                                                                                           
                                                                                                                                
Representative  Rokeberg noted that the House had  attached a Letter                                                            
of Intent with  the bill to limit any State money  requiring a 50/50                                                            
local match.   He added  that the bill included  a provision,  which                                                            
allowed  the Alcohol  Beverage Control  (ABC)  Board to fingerprint                                                             
applicants under Title  IV.  That would allow them to have access to                                                            
the criminal records.  He addressed the "look back" provision.                                                                  
                                                                                                                                
Representative  Rokeberg  stated  that  he would  prefer  the  other                                                            
legislation, but understood the time restraint.                                                                                 
                                                                                                                                
Co-Chair Kelly  advised that the bill in reference  had not yet been                                                            
received in the  Committee.  Otherwise, he would have  been be "glad                                                            
to accommodate" Representative Rokeberg.                                                                                        
                                                                                                                                
Senator  Leman  asked about  the  risk associated  with  creating  a                                                            
delayed effective  date.  He questioned  if that would hold  even if                                                            
the changes were made by the end of this fiscal year.                                                                           
                                                                                                                                
Representative  Rokeberg replied that  there is some question  about                                                            
that.  He noted  that  they had  requested  that the  Department  of                                                            
Transportation   &  Public  Facilities  give  a  definitive   answer                                                            
regarding  that concern.   There is a possibility  that it  could be                                                            
prorated.                                                                                                                       
                                                                                                                                
Representative  Rokeberg  added that  the federal  statutes  require                                                            
that sanctions  be placed on the State  for federal road  money.  If                                                            
the State does  not have the .04 in place, the State  could start to                                                            
lose  money.     He  noted  that   in  discussions  with   the  U.S.                                                            
Congressional  delegation, it  was claimed  that there is no  chance                                                            
that Congress  would repeal or backtrack  the .08 station.   This is                                                            
an appropriate time that the issue be addressed.                                                                                
                                                                                                                                
Senator Leman stated that  he preferred the most immediate effective                                                            
date and requested that  the Department of Transportation and Public                                                            
Facilities provide an answer.                                                                                                   
                                                                                                                                
Representative  Rokeberg indicated  that this  question had  already                                                            
been asked from  the Department and that he was unsure  if they were                                                            
able to answer it.                                                                                                              
                                                                                                                                
Senator Leman  recommended that the  legislation should be  referred                                                            
back  to  the  Senate   Transportation  Committee   to  answer  that                                                            
question.                                                                                                                       
                                                                                                                                
BLAIR  MCCUNE,  Deputy  Director,  Alaska  Public  Defender  Agency,                                                            
Department  of Administration,  testified  via  teleconference  from                                                            
Anchorage  and agreed  with Representative  Rokeberg  regarding  the                                                            
bootlegging enforcement in rural Alaska.                                                                                        
                                                                                                                                
Senator Wilken moved to  report SCS CS HB 132 (FIN) out of Committee                                                            
with  individual recommendation  and  with the  accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
Co-Chair  Donley objected  for a question.   He  requested that  the                                                            
suggestions  Representative Rokeberg  referenced be included  in the                                                            
fiscal notes.                                                                                                                   
                                                                                                                                
Representative  Rokeberg  stated  that the  fiscal  notes  currently                                                            
attached to the bill are  base on an agency-wide assumption that the                                                            
.08 would  be based  on a 2% increase  in arrests  because of  a new                                                            
standard.   He  asserted that  data from  the Department  of  Public                                                            
Safety  has shown  over the  past three  years that  rates would  be                                                            
lower  than  that.  He  thought  that  the  number  indicates  gross                                                            
inflation.   Representative Rokeberg  suggested a five-percent  (5%)                                                            
assumption  should be  used instead.   He  agreed there  could  be a                                                            
slight increase in the arrest rate.                                                                                             
                                                                                                                                
Representative  Rokeberg  sighted the  Department  of Public  Safety                                                            
fiscal  notes in  HB 4,  with the  differential  between the  higher                                                            
assumption  and  the lower  assumption.    He recommended  that  the                                                            
Committee  adopt a  "policy directive"  in  the fiscal  notes.   All                                                            
agencies that have a .08 note are aware of the concern.                                                                         
                                                                                                                                
Co-Chair  Donley thought the  fiscal notes  could be reduced  by 50%                                                            
and that the agencies could  amend their fiscal notes to represent a                                                            
5% rather than a 10% increased caseload.                                                                                        
                                                                                                                                
Co-Chair Donley  moved to amend the previous motion  made by Senator                                                            
Wilken and  ask that the  fiscal notes be  modified to reflect  a 5%                                                            
anticipated  increase.   There being  no objection,  the change  was                                                            
made to the fiscal notes and the motion was AMENDED.                                                                            
                                                                                                                                
Senator Wilken moved to  report SCS CS HB 132 (FIN) out of Committee                                                            
with individual  recommendation  and with  the accompanying  amended                                                            
fiscal notes.  There being no objection, it was so ordered.                                                                     
                                                                                                                                
SCS CS HB 132(FIN)  MOVED from Committee with "no  recommendations",                                                            
a House Letter  of Intent, and with  new fiscal notes by  Department                                                            
of Corrections (2 total),  Department of Law, Department of Health &                                                            
Social Services  (2 total), the Alaska Court System,  and Department                                                            
of Administration (2 total).                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Pete Kelly adjourned the meeting at 11:33 P.M.                                                                         

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