Legislature(2001 - 2002)

02/13/2002 09:12 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                         February 13, 2002                                                                                    
                              9:12 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-02 # 8, Side A                                                                                                              
SFC 02 # 8, Side B                                                                                                              
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Pete  Kelly convened the meeting at approximately  9:12 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Dave Donley, Co-Chair                                                                                                   
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Jerry Ward, Vice Chair                                                                                                  
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
Senator Lyman Hoffman                                                                                                           
Senator Donald Olson                                                                                                            
Senator Alan Austerman                                                                                                          
Senator Loren Leman                                                                                                             
                                                                                                                                
Also  Attending:   REPRESENTATIVE  KEN  LANCASTER;  CANDACE  BROWER,                                                          
Legislative  Liaison, Department of  Corrections; KERMIT  HUMPHRIES,                                                            
Program Specialist, National Institute of Corrections;                                                                          
                                                                                                                                
Attending via  Teleconference:  From Anchorage: JUDY  BITTNER, State                                                          
Historic  Preservation  Officer, and  Chief, Office  of History  and                                                            
Archaeology  Alaska Historical  Commission,  Division  of Parks  and                                                            
Outdoor  Recreation, Department  of Natural  Resources; TIM  ROGERS,                                                            
Member,  Board  of  Directors,  Alaska  Children's  Services;  LINDA                                                            
WILSON,  Deputy  Director,  Public Defender  Agency,  Department  of                                                            
Administration;  From Seward: SCOTT JANKE, Manager,  City of Seward;                                                            
RACHEL  JAMES, Planner,  Planning  and  Zoning Commission,  City  of                                                            
Seward,  and Staff,  Historical  Preservation  Commission,  City  of                                                            
Seward                                                                                                                          
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB  96-ACQUIRING JESSE LEE HOME                                                                                                 
                                                                                                                                
The Committee  heard  from the  sponsor, the  Department of  Natural                                                            
Resources,  the City of  Seward and Alaska  Children's Services.  An                                                            
amendment was considered and adopted. The bill was held.                                                                        
                                                                                                                                
HB  52-COMPACT FOR ADULT OFFENDER SUPERVISION                                                                                   
                                                                                                                                
The  Committee  heard  from  the  Department   of Corrections,   the                                                            
National  Institute  of  Corrections,   and  the  Council  of  State                                                            
Governments. The bill moved from Committee.                                                                                     
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 96(STA)                                                                                
     "An Act relating to acquisition and development of the Jesse                                                               
     Lee Home; and providing for an effective date."                                                                            
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  KEN LANCASTER,  sponsor of  the bill, addressed  the                                                            
fiscal note, stating  that during testimony in other  committees, he                                                            
had  understood  the amount  should  have  been zero.  However,  the                                                            
Department of Natural Resources  had recently submitted a new fiscal                                                            
note for $65,000.  He stressed that if there must  be a fiscal note,                                                            
the amount should be no higher than $55,000.                                                                                    
                                                                                                                                
Co-Chair  Kelly injected  he  had the  same understanding  that  the                                                            
fiscal note should be zero.                                                                                                     
                                                                                                                                
Representative  Lancaster  gave a  history  of the  Jesse Lee  Home,                                                            
which was  established  in Seward  in 1926 to  house Alaskan  Native                                                            
children who lost  their parents during a tuberculosis  epidemic. He                                                            
pointed out that  Benny Benson designed the Alaska  State Flag while                                                            
living at the Home and  the flag was officially raised for the first                                                            
time at the Home on July 9, 1927.                                                                                               
                                                                                                                                
Representative  Lancaster   informed  that  the  Home  was  severely                                                            
damaged during  the 1964 Earthquake and has been vacant  ever since.                                                            
He stated  that  a private  party purchased  the  facility with  the                                                            
intention  of  opening a  hotel,  but the  Kenai  Peninsula  Borough                                                            
foreclosed  on the property  to satisfy a  tax obligation.  He noted                                                            
the  City  of Seward  has  since  acquired  the  property  from  the                                                            
Borough.                                                                                                                        
                                                                                                                                
Representative  Lancaster stated the City of Seward  has cleared the                                                            
area  of overgrowth  and  erected  a  fence securing  the  Home.  He                                                            
remarked that  $5,000 from the Department  of Natural Resources  and                                                            
$5,000 from  the City of Seward had  been appropriated and  expended                                                            
to undertake initial soil testing.                                                                                              
                                                                                                                                
Representative  Lancaster informed  if this bill passes,  the intent                                                            
is  to hire  an  architect  to inspect  the  building  to  determine                                                            
whether it  could be saved. If the  building could not be  saved, he                                                            
said, a volunteer  task force would  be organized to consider  other                                                            
options for creating a historical site at the location.                                                                         
                                                                                                                                
Amendment #1: This amendment  replaces "2002" with "2003" on page 2,                                                            
line  8  of the  Senate  State  Affairs  committee  substitute.  The                                                            
amended  language  reads,  "The  department   shall  report  to  the                                                            
governor  and the legislature  by November  1, 2003, concerning  its                                                            
recommendations…" This  amendment also changes the effective date of                                                            
the bill from July 1, 2001, to July 1, 2002.                                                                                    
                                                                                                                                
Senator Ward  moved for adoption and  explained this is a  technical                                                            
amendment to  update the bill because  it did not pass into  law the                                                            
previous year.                                                                                                                  
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Senator  Green  voiced   concerns  regarding  an  unrelated   report                                                            
presented  by a task  force established  to  write regulations.  She                                                            
relayed that in this instance,  the legislature was not given notice                                                            
of the  actual  regulations and  it was  asserted  that because  the                                                            
legislature  authorized  the  creation  of the  task force,  it  was                                                            
assumed the legislature  gave automatic approval of  the forthcoming                                                            
regulations as  well. She wanted assurance this situation  would not                                                            
arise in regards to the task force proposed in this bill.                                                                       
                                                                                                                                
Representative   Lancaster  remarked   for  the  record   that  this                                                            
legislation   only  establishes  the   task  force  to  review   the                                                            
architectural and soil  surveys to determine possible future uses of                                                            
the site. He assured that  because the property is owned by the City                                                            
of  Seward,  future legislation  would  be  necessary  to  authorize                                                            
additional state expenditures.                                                                                                  
                                                                                                                                
Senator  Hoffman  asked   what  is  the  next  step  if  the  report                                                            
determines the facility is sound.                                                                                               
                                                                                                                                
Representative  Lancaster  replied  further  grant  funds  would  be                                                            
pursued.  He noted there  are no windows remaining  in the  Home and                                                            
that numerous other repairs are necessary.                                                                                      
                                                                                                                                
JUDY  BITTNER,  State  Historic  Preservation  Officer,  and  Chief,                                                            
Office  of History  and Archaeology  Alaska  Historical Commission,                                                             
Division  of Parks  and Outdoor  Recreation,  Department of  Natural                                                            
Resources,  spoke to the fiscal note.  She informed that  the Office                                                            
receives  federal  historic  preservation  grant  funds,  and it  is                                                            
intended a  portion of these funds  would be used to partially  fund                                                            
the task force.   She noted the Office awarded a $5000  grant to the                                                            
City of Seward  to begin the soil and building studies.  She said an                                                            
additional  $30,000 could  be appropriated  if  $25,000 in  matching                                                            
funds were provided. She  pointed out the Office is "project funded"                                                            
and the federal grants utilized require matching funds.                                                                         
                                                                                                                                
Co-Chair Kelly  stated the Committee  was under the impression  that                                                            
the  necessary matching  funds  were  already available  within  the                                                            
Department's budget.                                                                                                            
                                                                                                                                
Ms. Bittner  responded match funds  were not available for  the task                                                            
force itself.                                                                                                                   
                                                                                                                                
Co-Chair Kelly  referenced the $35,000 GF Match and  $30,000 general                                                            
funds contained  in the fiscal note. He surmised the  $30,000 amount                                                            
should not be included.                                                                                                         
                                                                                                                                
Ms. Bittner affirmed.                                                                                                           
                                                                                                                                
Co-Chair Kelly clarified  the total amount of the fiscal note should                                                            
actually be $35,000.                                                                                                            
                                                                                                                                
Ms. Bittner affirmed.                                                                                                           
                                                                                                                                
Co-Chair Donley  asked why the federal funds were  not listed in the                                                            
fiscal note.                                                                                                                    
                                                                                                                                
Co-Chair Kelly stated this would be corrected.                                                                                  
                                                                                                                                
Representative Lancaster affirmed.                                                                                              
                                                                                                                                
Co-Chair  Donley listed  the  travel, per  diem,  meeting space  and                                                            
meeting preparation  expenses involved  in the four meetings  of the                                                            
proposed  commission  at  a  cost  of  $4,500  each.  He  noted  the                                                            
legislation  does not stipulate that  a commission would  be formed.                                                            
He suggested  Seward residents could  undertake the efforts  with no                                                            
travel required.                                                                                                                
                                                                                                                                
Co-Chair Kelly requested the witness comment.                                                                                   
                                                                                                                                
Ms. Bittner  replied the  intent is to form  a task force  comprised                                                            
primarily  of  Seward  residents,  with  meetings  held  in  Seward.                                                            
However, she continued,  the intent is that professionals would need                                                            
to travel from elsewhere in the state to provide expertise.                                                                     
                                                                                                                                
Co-Chair Donley  pointed out the fiscal note indicates  an architect                                                            
consultant would be hired at a cost of $70,000.                                                                                 
                                                                                                                                
Co-Chair  Kelly announced  the  bill would  be held  to rectify  the                                                            
fiscal note concerns.                                                                                                           
                                                                                                                                
Co-Chair  Donley next  referred  to Section  2 of  the Senate  State                                                            
Affairs  committee   substitute,  and  asked  if  an  architectural                                                             
assessment was  currently available that determined  the building is                                                            
structurally sound and could be restored.                                                                                       
                                                                                                                                
Representative  Lancaster answered  such a  report was completed  in                                                            
1995  when the  building  was placed  on  the National  Registry  of                                                            
Historic Places. He said this report must be updated.                                                                           
                                                                                                                                
Co-Chair  Donley   commented  the  language  is  drafted   with  the                                                            
assumption  that the facility is restorable.  He suggested  it could                                                            
be determined the structure should be rebuilt instead.                                                                          
                                                                                                                                
Representative  Lancaster said the intent is to repair  the facility                                                            
if possible, but  an inspection is necessary before  such a decision                                                            
could be made.                                                                                                                  
                                                                                                                                
Senator Ward  added that  there is a possibility  that the  building                                                            
would be  removed and  replaced with  a monument.  He shared  he has                                                            
visited  the location  and did not  think the  structure was  sound,                                                            
although it  does have historical  significance and has "affected  a                                                            
lot of people's  lives." He  opined $70,000  "is a lot of money  for                                                            
something that  seems fairly obvious to me." He also  questioned the                                                            
placement  of a  statute  of Benny  Benson in  a congested  area  of                                                            
Anchorage,  and asserted most people  are unaware of its  existence.                                                            
He suggested relocating  the statue to the Jessie  Lee Home site. He                                                            
talked  of the  historical  and cultural  importance  of the  Seward                                                            
location.                                                                                                                       
                                                                                                                                
Co-Chair Kelly  referenced explanatory  language in the fiscal  note                                                            
"An Architectural  consultant will be secured. Anticipated  cost for                                                            
the architectural  consultant is $70,000,  of which half  is covered                                                            
by an  existing historic  preservation grant  program, so only  half                                                            
the match is requested  here." He ascertained the  match requirement                                                            
should  therefore  be reduced  to  $25,000  based  on this  and  the                                                            
matching funds  provided by the City of Seward.  He  also questioned                                                            
how the meeting expenses are calculated into the total request.                                                                 
                                                                                                                                
Senator  Green  was   unsure  if  similar  historical  preservation                                                             
projects  had been undertaken  in  the past using  state funds.  She                                                            
remarked  there are other  historical locations  in the Palmer  area                                                            
that  "we would  love to  have…added" to  the National  Registry  of                                                            
Historic Places. She surmised  there are many more such locations in                                                            
throughout the  state. She was concerned that that  this legislation                                                            
could start a trend for state funding.                                                                                          
                                                                                                                                
Co-Chair  Kelly commented  that  other  historical  sites have  been                                                            
addressed in  the past although they  generally do not receive  much                                                            
attention because  the funding is  appropriated through the  capital                                                            
budget process as opposed to individual legislation.                                                                            
                                                                                                                                
SCOTT JANKE, Manager,  City of Seward, testified via  teleconference                                                            
from Seward to inform that  the Seward City Council and the Historic                                                            
Preservation Commission  have each adopted resolutions in support of                                                            
the bill. He elaborated  on the efforts taken by the  City of Seward                                                            
in this  process to  acquire the  property and  secure it to  reduce                                                            
liability.  He detailed how $50,000  was expended for such  projects                                                            
as  boarding  windows  and  erecting  a fence.  He  spoke  of  media                                                            
attention given  to the Jesse Lee Home, both in Alaska  and Outside,                                                            
as a result  of these efforts. He  stressed, "this is a significant                                                             
historic resource for the  state, not just for Seward." He expressed                                                            
the rehabilitation  cost  is too  large for  the City  of Seward  to                                                            
cover in its entirety.                                                                                                          
                                                                                                                                
RACHEL  JAMES, Planner,  Planning  and  Zoning Commission,  City  of                                                            
Seward,  and Staff,  Historical  Preservation  Commission,  City  of                                                            
Seward, testified  via teleconference  from Seward about  the timing                                                            
                                                   th                                                                           
of passage  of this legislation to  coincide the 75   anniversary of                                                            
the design  and first  official raising  of the  Alaska flag  at the                                                            
Jesse Lee  Home site.  She also noted  the City  of Seward would  be                                                            
celebrating  the centennial of the  community in the year  2003. She                                                            
asserted it is  important for the state to take a  "leading role" in                                                            
this  project because  the  Home played  an  important  role in  the                                                            
state's history.                                                                                                                
                                                                                                                                
TIM ROGERS, Member, Board  of Directors, Alaska Children's Services,                                                            
testified  via  teleconference  from Anchorage  about  the  112-year                                                            
history  of  the  Alaska  Children's  Services  beginning  with  the                                                            
establishment  of  the  Jesse Lee  Home  in Unalaska.  He  spoke  of                                                            
services  offered  for troubled  children,  originally  focusing  on                                                            
orphaned children.  He stated that  in 1925, the Home was  relocated                                                            
to Seward, where  it operated as an orphanage until  the Good Friday                                                            
Earthquake  of 1964, at  which time  the facility  was moved  to its                                                            
current  location on  Abbott  Road in Anchorage.    He stressed  the                                                            
Seward site has significant  historical value to the organization as                                                            
well as  the state. He  stated that during  its operation in  Seward                                                            
"literally hundreds of  children" from all areas of Alaska, lived at                                                            
the Home.                                                                                                                       
                                                                                                                                
Co-Chair Kelly ordered the bill HELD in Committee.                                                                              
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 52 am                                                                                                       
     "An Act relating  to the Interstate Compact for  Adult Offender                                                            
     Supervision   and  the  State  Council  for  Interstate   Adult                                                            
     Offender Supervision;  amending Rules 4 and 24, Alaska Rules of                                                            
      Civil Procedure; and providing for an effective date."                                                                    
                                                                                                                                
                                                                                                                                
CANDACE  BROWER,  Legislative  Liaison,  Department  of Corrections                                                             
testified  the  purpose  of  the  bill  is  to  repeal  the  current                                                            
Interstate Compact for  Adult Offender Supervision, enacted in 1937.                                                            
She stated  efforts have  been made to update  the current  compact,                                                            
but  have  proven  impossible.  Therefore,   the  compact  is  being                                                            
rewritten with  the proposed compact reflected in  this legislation.                                                            
                                                                                                                                
Ms. Brower  said  the existing  compact governs  the state-to-state                                                             
movement  of offenders  and  equates  to a  "gentleman's  agreement"                                                            
between  states  that  does  not  provide  enough   supervision  for                                                            
tracking offenders and monitoring their behavior.                                                                               
                                                                                                                                
Senator Ward  asserted, "This needed  to be done." He asked  if such                                                            
an agreement  between  all 50 states  is reached,  whether a  charge                                                            
could be  levied by states  to house probationers  and parolees  who                                                            
relocate from other states.                                                                                                     
                                                                                                                                
Ms.  Brower   replied   the  state   of  Texas   currently   charges                                                            
probationers and  parolees who relocate to Texas from  other states,                                                            
for the cost of supervision.                                                                                                    
                                                                                                                                
Senator Ward  pointed out that in  Alaska, these costs are  incurred                                                            
by the state.                                                                                                                   
                                                                                                                                
KERMIT  HUMPHRIES,   Program  Specialist,   National  Institute   of                                                            
Corrections told  of his past employment with the  Alaska Department                                                            
of Corrections  and current employment  with the National  Institute                                                            
of Corrections,  a federal  governmental agency.  He commented  that                                                            
the  federal   agency  is  unusual   because  it  has  "no   federal                                                            
responsibility"  and serves as a training  and technical  assistance                                                            
resource to state and local correctional agencies.                                                                              
                                                                                                                                
Mr. Humphries  informed that for five years, he had  worked with the                                                            
Compact Administrators  Association and that by the year 1990 it was                                                            
thought  that  the original  compact  was  sufficiently  updated  to                                                            
provide a  fair system for  offenders who  move from state  to state                                                            
while assuring  adequate  tracking of this  population. However,  he                                                            
stated, there  were some "very bad  cases" that occurred  during the                                                            
middle 1990s  in which police officers  were killed, and  it "became                                                            
clear that  this was a major public  safety issue." As a  result, he                                                            
said,  states began  to take action  through  either legislation  or                                                            
executive  order  and  these  actions  were  inconsistent  with  the                                                            
compact.  The situation  evolved  to  where there  was  no longer  a                                                            
uniform agreement  between states, he informed, and  the states that                                                            
continued to comply  with the compact "effectively  were penalized".                                                            
He stated there was concern  the compact "was ready to collapse" and                                                            
there would be no interstate agreement.                                                                                         
                                                                                                                                
Mr. Humphries  continued that the National Institute  of Corrections                                                            
was then approached and  assistance was requested for drafting a new                                                            
interstate  compact. He said  public hearings  were held and  the US                                                            
Attorney General  appointed a board  of directors. He informed  that                                                            
this board  that determined the situation  with the current  compact                                                            
is "a  major public  safety issue"  and is a  "toothless tiger  that                                                            
looks  good,  it  sounds  good; there  are  rules,  but  there's  no                                                            
enforcement  and people don't follow  the rules." The board  advised                                                            
that a governing  structure is needed to allow states  to manage the                                                            
movement of interstate offenders.                                                                                               
                                                                                                                                
Mr.  Humphries  noted testimony  given  at  the public  hearings  by                                                            
representatives  of state  governments  indicated  that "the  states                                                            
couldn't manage this and  it needed to be turned over to the federal                                                            
government."  However, the  board ruled that  this should not  occur                                                            
and that "this  is uniquely a state  issue; states are the  ones who                                                            
really  need  to  manage  this  process  and need  to  work  on  the                                                            
governing  structure."  Therefore,  he stated  the  bill before  the                                                            
Committee  establishes  this governing  structure  for managing  the                                                            
movement of interstate offenders.                                                                                               
                                                                                                                                
Mr.  Humphries   remarked  this  proposal   "creates  a   couple  of                                                            
problems," one  being that states do not know the  rules at the time                                                            
they ratify  the compact. This, he  explained because the  rules are                                                            
to  be made,  after  the  compact  is ratified,  by  the  Interstate                                                            
Commission comprised of  voting representatives from each state that                                                            
chooses to adopt  the compact. He qualified that although  this is a                                                            
concern,  it also ensures  the process  "belongs  to the states"  as                                                            
opposed to an  external organization and also allows  the compact to                                                            
be updated over time.                                                                                                           
                                                                                                                                
Mr.  Humphries  continued  that  an  advisory  group,  comprised  of                                                            
representatives  from correctional agencies, state  legislatures and                                                            
the  court  system, was  formed  to  address  the specifics  of  the                                                            
governing  structure.  This  group  found  that  the  original  1937                                                            
compact is "legally deficient"  to address the increased mobility of                                                            
present day. He  listed a conservative amount of over  250,000 adult                                                            
probationers  and parolees  currently residing  in states other  the                                                            
state where  they were sentenced.  He surmised  this is a "very  low                                                            
figure."  He also  informed that across the country,  there are over                                                            
860 agencies  responsible for the  management of these probationers                                                             
and parolees and  over 3,300 separate probation and  parole offices.                                                            
He  reiterated the  current  system  could not  effectively  operate                                                            
without the changes proposed in this legislation.                                                                               
                                                                                                                                
Mr. Humphries  added that  the advisory group  also determined  that                                                            
the  board  may  understand  corrections  issues,  but  had  limited                                                            
knowledge of interstate  compacts and needed to obtain expertise. As                                                            
a result, he  said the board requested  assistance from the  Council                                                            
of State  Governments  and a cooperative  agreement  was reached  to                                                            
address this matter.                                                                                                            
                                                                                                                                
Mr. Humphries  outlined  the changes  proposed in  the new  compact,                                                            
including  the  establishment   of the  Interstate   Commission  and                                                            
establishment of state  councils. He explained the necessity for the                                                            
five-member  state councils  is partially  to address the  declining                                                            
importance  given  to  this  matter  within  state  governments.  He                                                            
remarked that  most judges are unfamiliar with the  specifics of the                                                            
compact.  He  spoke  of crime  victims,  and  noted  that  offenders                                                            
relocated  to other states  are less likely  to pay restitution.  He                                                            
also pointed  out that victims' risks  are reduced once an  offender                                                            
has moved away,  but when the offender  returns, the victim  may not                                                            
receive notification.                                                                                                           
                                                                                                                                
Mr. Humphries  assured  the intent of  the state  council is  not to                                                            
"create a new bureaucracy" but to provide "awareness".                                                                          
                                                                                                                                
Mr. Humphries  next  talked about  the number of  states that  would                                                            
participate in  the proposed compact. He stated that  response to an                                                            
earlier draft,  which stipulated  that a minimum  of 26 states  must                                                            
agree to participate before  the compact could be enacted, expressed                                                            
that a  higher number  of participating  states  is necessary.  As a                                                            
result, he stated the requirement was increased to 35 states.                                                                   
                                                                                                                                
Mr.  Humphries  referenced  a  United States  map,  [copy  on  file]                                                            
showing the status of similar  enabling legislation in other states.                                                            
He updated this information  noting legislation has passed the House                                                            
of Representatives  in  the states  of Mississippi  and Alabama.  He                                                            
said 25  states have  passed legislation  at present,  and "we  have                                                            
every reason  to believe  that in  the next two  or three months  we                                                            
will be at  the 35 states". Once this  has occurred, he stated,  the                                                            
Interstate Commission  Meeting would be held to establish  the rules                                                            
of the compact.                                                                                                                 
                                                                                                                                
Senator Olson  introduced students  visiting the Committee  from the                                                            
Lower Kuskokwim School  District as part of the Close-Up Program. At                                                            
his request, each student stood and announced their name.                                                                       
                                                                                                                                
RICK MASTERS,  Special Council,  The Council  of State Governments,                                                             
testified  that the  interstate compacts  are as  old as the  United                                                            
State's constitution.  In  regards to the  compacts, he stated,  "If                                                            
anything they're so old  that we've all forgotten about them and the                                                            
place that they  have in our federal system." He pointed  out Alaska                                                            
is part of the original compact.                                                                                                
                                                                                                                                
                                                                                                                                
SFC 02 # 8, Side B 10:00 AM                                                                                                     
                                                                                                                                
                                                                                                                                
Mr.  Masters  continued  this  compact  is the  one  mechanism  that                                                            
manages parolees  and probationers  who leave  the state where  they                                                            
served their sentence.                                                                                                          
                                                                                                                                
Mr.  Masters asserted  this  compact  is  an example  of  federalism                                                            
because  states are  able to maintain  control  rather than  federal                                                            
preemption.  He  relayed concerns  have  been  voiced  that the  new                                                            
Interstate  Commission  "may cause  some  problems"  for states.  He                                                            
qualified  this  would  be  possible,   but  stressed  that  such  a                                                            
delegation has  been recognized by the courts in addition  to the US                                                            
Constitution  as an  appropriate way  for states  to exercise  their                                                            
sovereignty.  He said that when the  1937 compact had been  enacted,                                                            
it was necessary  for each state to  give up "an appropriate  level"                                                            
of control in order for all states to have equal control.                                                                       
                                                                                                                                
Mr. Masters  listed reasons the existing  compact must be  replaced,                                                            
including the increase  in interstate travel; especially air travel.                                                            
In addition,  he noted,  administrative law  has changed and  become                                                            
more sophisticated.                                                                                                             
                                                                                                                                
Mr.  Masters also  pointed  out  the existing  compact  contains  no                                                            
enforcement provisions  in the event a state refuses  to comply with                                                            
other  provisions;  although a  US Supreme  Court  action has  ruled                                                            
compliance is required.                                                                                                         
                                                                                                                                
Mr. Masters  stated  the proposed  new compact  attempts to  resolve                                                            
compliance issues  "in a number of ways." He said  the assumption is                                                            
made that in  some cases, noncompliance  is the result of  ignorance                                                            
or neglect as opposed to  willful action. Therefore, he remarked the                                                            
compact  first  addresses  enforcement   "at  the  lowest  level  of                                                            
coercion necessary to make  sure everyone is following the rules" by                                                            
providing  technical assistance  to  those "who  are having  trouble                                                            
training  and understanding  how this  should  be implemented."  "If                                                            
reasonable  minds differ,"  he remarked, the  compact also  contains                                                            
provisions for  mediation and binding arbitration.  For those states                                                            
that  simply  refuse  to  participate,  he  informed,  the  proposed                                                            
compact contains stipulations  for sanctions in the form of fines or                                                            
judicial procedures as a last resort.                                                                                           
                                                                                                                                
Co-Chair Kelly asked what entity would impose these fines.                                                                      
                                                                                                                                
Mr.  Masters answered  the  Interstate  Commission,  which would  be                                                            
created   under  the  compact,   would  "determine   the  level   of                                                            
appropriate enforcement."                                                                                                       
                                                                                                                                
Co-Chair Kelly  asked what action would occur if a  state "neglects"                                                            
to sign the compact.                                                                                                            
                                                                                                                                
Mr. Masters explained  the process of convincing 35  states agree to                                                            
the compact.  He said a state  that did not  sign the compact  would                                                            
have  no authority  within  the  Commission  and could  possibly  be                                                            
prohibited from sending  a prisoner to states that do participate in                                                            
the compact.                                                                                                                    
                                                                                                                                
Co-Chair Kelly  asked the disadvantage for not signing  the compact.                                                            
                                                                                                                                
Mr.  Masters  told  of  the  possibility  of  "dumping",  whereby  a                                                            
participating  state  could  allow  probationers   and  parolees  to                                                            
relocate  to the  nonparticipating  state  without  an agreement  in                                                            
place.  He stated there  could be  limitations on  which states  the                                                            
nonparticipating state could send offenders.                                                                                    
                                                                                                                                
Senator  Ward commented  that  Co-Chair  Kelly's question  is  valid                                                            
because  although  participation  has advantages,  a  state  becomes                                                            
venerable  to being sued  by the Commission  or having fines  levied                                                            
against it.                                                                                                                     
                                                                                                                                
Senator  Ward asked  what efforts  have been made  to determine  the                                                            
cost of probation in one state versus another.                                                                                  
                                                                                                                                
Mr. Humphries  noted there are cost  differences between  states and                                                            
he said  he would provide  detailed information.  He qualified  each                                                            
state calculates these costs differently.                                                                                       
                                                                                                                                
Senator  Ward  asserted the  per-person  cost  is higher  in  Alaska                                                            
because  other programs,  such as  the Permanent  Fund Dividend  and                                                            
Denali  KidCare, are  available.  He opined  that  a probationer  or                                                            
parolee has  lost the privilege  to travel  from state to state.  He                                                            
emphasized  there are costs  to the state  which the probationer  or                                                            
parolee relocates  to. He asked if any consideration  has been given                                                            
to  the  additional  costs.  He understood  there  are  benefits  to                                                            
"starting over"  in a new location, but stressed there  are costs to                                                            
the state and suggested  these offenders should bear these expenses.                                                            
                                                                                                                                
Mr.  Humphries  referenced  page  14,  line  1 of  the  bill,  which                                                            
contains  the language  from Article  7, Section  G of the  proposed                                                            
compact.  This  language,  he  said,  stipulates   the "rulemaking"                                                             
functions  of the Interstate  Commission  in the  form of ten  items                                                            
that  the Commission  must address  within  12 months  of the  first                                                            
meeting.  Item   6,  he  pointed  out,  relates  to  collection   of                                                            
restitution and fees from offenders.                                                                                            
                                                                                                                                
Mr. Masters  agreed relocation is  a privilege for probationers  and                                                            
parolees and surmised  other states would be in the  "same position"                                                            
of incurring  additional expenses.  He stated it was determined  the                                                            
Commission  process would be the best  method to address  the matter                                                            
partially because  the specific rules would need to  be amended over                                                            
time.                                                                                                                           
                                                                                                                                
Mr. Humphries  added that the Commission could establish  rules that                                                            
apply to how charges would  be assessed or it could allow the states                                                            
to establish their own guidelines.                                                                                              
                                                                                                                                
Senator Ward  was concerned about  the cost for each probationer  or                                                            
parolee  and the potential  hardship  that could  result if a  large                                                            
number  of workers  relocated  to Alaska  during  construction of  a                                                            
natural gas pipeline.                                                                                                           
                                                                                                                                
Ms. Brower informed, "Alaska  is an exporter rather then an importer                                                            
of probationers  and  parolees."  She cited  the  previous year  330                                                            
Alaskan  offenders  were on  probation  or  parole in  other  states                                                            
compared to 220 offenders from other states residing in Alaska.                                                                 
                                                                                                                                
Senator Ward  commented, "I  don't see any  reason why, if we  had a                                                            
charge to be on probation  or parole, that we couldn't transfer that                                                            
cost to the  state they went to."  He added the state of  Texas does                                                            
not practice this.                                                                                                              
                                                                                                                                
Mr.  Masters   continued  stressing   enforcement  is  the   largest                                                            
difficulty   in   the   current   compact.    He   reiterated   that                                                            
administrative  law "has become a  very well developed body  of law"                                                            
and that under  the existing compact,  there is no control  over the                                                            
"rulemaking".   He  spoke  to  the  Parole  and  Probation   Compact                                                            
Administrators  Association, which  acts as the administrative  body                                                            
although  it is  not specified  in the  existing compact.   The  new                                                            
compact, he stated,  would contain "due process controls"  and would                                                            
also provide accountability.                                                                                                    
                                                                                                                                
Mr. Masters  cited that  three US  Supreme Court  rulings issued  in                                                            
1972 and 1973 "struck down"  part of the existing compact, including                                                            
Article  3,  which  was  found  unconstitutional.  He  explained  it                                                            
stipulates  officials   from  a "sending   state"  could  reenter  a                                                            
"receiving  state" and apprehend offenders  simply my demonstrating                                                             
they  are  "authorized  officers"  of the  "sending  state"  and  by                                                            
identifying  the offender. Two of  the rulings, he said,  determined                                                            
that a  "due process  type hearing"  before a  "neutral officer"  is                                                            
required before  parole or probation could be revoked.  He noted the                                                            
proposed compact accommodates these court rulings.                                                                              
                                                                                                                                
Mr. Masters  noted there  are issues related  to the "institutional                                                             
memory within  state government".  He explained  that in  explaining                                                            
this legislation in different  states, many legislators were unaware                                                            
that  the  original  compact  existed.  He stated  the  new  compact                                                            
addresses  this by instituting  state councils;  advisory groups  in                                                            
each  state  consisting  of  input  from  the  legislative   branch,                                                            
governor's  office and  the judicial  branch, to  meet on an  annual                                                            
basis within  the state  to address various  concerns including  the                                                            
cost issues as raised by Senator Ward.                                                                                          
                                                                                                                                
Mr. Masters next spoke  to accountability that has been added in the                                                            
proposed  compact  in  the  form of  annual  reports  to  the  state                                                            
legislatures,  governor's offices  and judiciaries. In addition,  he                                                            
stated the  Commission would  be audited annually.   He pointed  out                                                            
the existing compact has no reporting or auditing requirements.                                                                 
                                                                                                                                
Senator  Austerman  referenced  Article 4  of the  proposed  compact                                                            
relating  to the annual report  to state  legislatures. He  asked if                                                            
the financial audit is included in this report.                                                                                 
                                                                                                                                
Mr. Masters  affirmed and  elaborated the  financial audit  would be                                                            
included in the annual report.                                                                                                  
                                                                                                                                
LINDA WILSON,  Deputy Director, Public  Defender Agency,  Department                                                            
of Administration, testified  via teleconference from Anchorage that                                                            
this  compact would  likely  have  no fiscal  impact  on the  Public                                                            
Defender  Agency  (PDA).  She  explained  the  office  occasionally                                                             
provides  defense services  in cases involving  offenders  relocated                                                            
from other states,  but she did not anticipate the  proposed compact                                                            
would increase the amount of these cases.                                                                                       
                                                                                                                                
Ms. Wilson  told of people moving  to Alaska, committing  an offense                                                            
and after serving  their sentence,  returning to the support  system                                                            
in  their  home  state.  She  said  that  if  these   offenders  owe                                                            
restitution, "the  state is unlikely to send them  to another state"                                                            
because the current  compact contains no provision  for enforcement.                                                            
The  new compact,  she pointed  out,  would contain  provisions  for                                                            
enforcing restitution payments.  Because of this, she stated the PDA                                                            
supports  the   legislation.  She   stated  this  would   facilitate                                                            
successful  rehabilitation of offenders  on probation and  parole by                                                            
allowing them to relocate  to areas where they have a strong support                                                            
system and have the ability to earn money to pay restitution.                                                                   
                                                                                                                                
Senator  Austerman  had a  question regarding  the  fiscal note  and                                                            
whether the  amount projected has  been expended in prior  years for                                                            
probationers and parolees relocation efforts.                                                                                   
                                                                                                                                
Ms. Brower  spoke  to fees  of $400,  which were  increased  several                                                            
years ago  to $2000. She  listed the reason  for the increase  is to                                                            
"pay for oversight,  tracking, data systems, annual  meetings of the                                                            
commission  and other expenses necessary  to oversee a huge  program                                                            
such as this."                                                                                                                  
                                                                                                                                
Senator  Austerman  clarified  the  fiscal  note  proposes  spending                                                            
$24,000 annually versus the $2,000 that is spent currently.                                                                     
                                                                                                                                
Senator Leman  asked if there would  be any offset to the  state for                                                            
this increased expenditure.                                                                                                     
                                                                                                                                
Mr. Masters  responded  the $2000  expense would  be phased out.  He                                                            
stated  the new  compact would  provide an  agency staff  of six  to                                                            
eight positions  to actively administer  the program, including  the                                                            
information  system.  He  stressed   the  information  system  is  a                                                            
significant  part  of  the new  compact.  He  informed  the  current                                                            
tracking systems  are outmoded and that hard copies  of reports take                                                            
up  to six  months  to reach  other  states. He  said  that in  some                                                            
instances, the  offender "is long gone" when the report  reaches its                                                            
destination. He described the new encrypted electronic system.                                                                  
                                                                                                                                
Senator  Ward noted  the real problem  with  interstate movement  of                                                            
offenders is  that these citizens  are not law abiding and  at times                                                            
fail to register in the  state they have relocated to. He emphasized                                                            
not every  state  imposes a  penalty for  this and  that the  burden                                                            
falls to the new state.                                                                                                         
                                                                                                                                
Mr. Humphries  replied  the new  compact addresses  this concern  by                                                            
instituting  the process  using existing technology  through  a web-                                                            
based system. He said the  fiscal note reflects the cost of staff to                                                            
maintain  this   system.  Until  this   time,  he  pointed   out  no                                                            
organization  has been willing  to invest in  such a system  because                                                            
there are no requirements for participation.                                                                                    
                                                                                                                                
Mr. Masters  spoke to the  offenders who  "fall through the  cracks"                                                            
and "simply  walk  away from  the system"  once  they have  received                                                            
permission  to visit another  state. He stated  this is because  the                                                            
current process  is not always enforced or information  is outdated.                                                            
                                                                                                                                
Ms. Brower also pointed  out that not all states comply with all the                                                            
provisions  in  the  existing  compact  and the  new  compact  would                                                            
require  all states  comply. She qualified  that  Alaska has  a good                                                            
compliance record.                                                                                                              
                                                                                                                                
Mr. Humphries  told of his  experiences as  a probation officer  and                                                            
the process of notifying  another state that a probationer from that                                                            
state is in violation  of the terms of their probation.  He informed                                                            
that  often,  the  other  state  determines  that  transporting  the                                                            
offender back to that state  is too expensive and instead terminates                                                            
supervision.  He commented,  "The  geography really  plays into  the                                                            
inequity  of the  system when  everyone  isn't required  to  operate                                                            
under the same set of standards."                                                                                               
                                                                                                                                
Senator Leman  referenced language  on page  16, lines 19-21  of the                                                            
bill, which stipulates  amendments to the compact  are not effective                                                            
or binding unless  enacted by unanimous consent. He  noted this is a                                                            
"high  standard" and  asked if  this is  a "work-able"  standard  in                                                            
other compacts.                                                                                                                 
                                                                                                                                
Mr. Masters replied that  amending the compact would be possible and                                                            
stressed  a high  standard  is the  intent to  limit  the number  of                                                            
amendments in the same  manner as limited amendments are made to the                                                            
US Constitution.  He explained  this method  was chosen because,  "a                                                            
lot of the  day-to-day operational  details will be subsumed  within                                                            
the rulemaking  so  it won't  be necessary  to come  back and  amend                                                            
this."                                                                                                                          
                                                                                                                                
Senator Ward  understood that thousands  of people on probation  and                                                            
parole are  not United States  citizens and  asked how the  proposed                                                            
compact  applies  to them.  He  questioned  whether they  should  be                                                            
allowed  to relocate  to Alaska  during  their probation  or  parole                                                            
period.                                                                                                                         
                                                                                                                                
Mr. Humphries responded  these offenders are subject to the terms of                                                            
interstate  compact  agreement   unless  the  U.S.  Immigration  and                                                            
Naturalization Service (INS) is involved.                                                                                       
                                                                                                                                
Mr.  Masters  noted  the  INS could  be  included  as  a  non-voting                                                            
representation on the Commission.                                                                                               
                                                                                                                                
Senator  Ward  stated  there  are some  offenders  who  entered  the                                                            
country illegally  and have requested to relocate  to Alaska to work                                                            
in canneries.  He stressed that Alaska  could possibly be  fined for                                                            
not allowing  entry  for these  probationers  and parolees,  whether                                                            
Alaska ratifies the compact or not.                                                                                             
                                                                                                                                
Co-Chair  Donley  offered  a  motion  to  amend  the  Department  of                                                            
Corrections  fiscal note to delete  the $6,800 allocated  for travel                                                            
expenses and reduce the  appropriation accordingly. He suggested the                                                            
department  should  instead   cover  the  travel  costs  within  the                                                            
existing budget.                                                                                                                
                                                                                                                                
Co-Chair  Kelly noted Co-Chair  Donley would  serve as chair  of the                                                            
Conference Committee  assigned to make final determinations  for the                                                            
FY  03  budget  and  could  readdress  this  funding  if  necessary.                                                            
Therefore, Co-Chair Kelly supported the amendment.                                                                              
                                                                                                                                
There was no objection and the fiscal note was AMENDED.                                                                         
                                                                                                                                
Senator Ward stated  that he would not oppose this  bill, but wanted                                                            
consideration  for charging parolees  and probationers who  relocate                                                            
from other states to Alaska as Texas currently does.                                                                            
                                                                                                                                
Co-Chair Donley offered  a motion to report HB 52 am, from Committee                                                            
with the amended fiscal note.                                                                                                   
                                                                                                                                
The bill MOVED from Committee without objection.                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Pete Kelly adjourned the meeting at 10:36 AM                                                                           

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