Legislature(2001 - 2002)

04/29/2002 04:22 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 29, 2002                                                                                      
                              4:22 PM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-02 # 80, Side A                                                                                                             
SFC 02 # 80, Side B                                                                                                             
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Pete  Kelly convened the meeting at approximately  4:22 PM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Dave Donley, Co-Chair                                                                                                   
Senator Jerry Ward, Vice Chair                                                                                                  
Senator Loren Leman                                                                                                             
Senator Gary Wilken                                                                                                             
Senator Alan Austerman                                                                                                          
Senator Lyman Hoffman                                                                                                           
Senator Donald Olson                                                                                                            
                                                                                                                                
Also Attending:  MARY JACKSON,  Staff to Senator Torgerson, Chair of                                                          
the  Senate   Community  and  Regional   Affairs  Committee;   MARCO                                                            
PIGNALBERI, City  Manager, City of Haines; DAVID BLACK,  Mayor, City                                                            
of Haines; LUCY HARRELL,  Member, Haines Borough Assembly and Haines                                                            
School  Board;  WENDY  HALL,  Staff,  Co-Chair  Kelly;  PATTY  WARE,                                                            
Juvenile  Justice Program  Manager,  Division of  Juvenile  Justice,                                                            
Department   of  Health  and  Social   Services;  ROBERT   BUTTCANE,                                                            
Legislative  and  Administrative   Liaison,  Division   of  Juvenile                                                            
Justice,  Department of Health  and Social  Services; JANET  PARKER,                                                            
Retirement and Benefits  Manager, Health Benefits Sections, Division                                                            
of  Retirement  and Benefits,  Department  of  Administration;  GREG                                                            
ROTH,  Alaska  Juvenile   Correction  Officer  Association;   KRISTI                                                            
HELGEN, Juvenile Probation  Officer IV, Probation Services, Division                                                            
of  Juvenile Justice,  Department  of  Health and  Social  Services;                                                            
ROBERT BUTTCANE,  Legislative and  Administrative Liaison,  Division                                                            
of Juvenile Justice, Department of Health and Social Services;                                                                  
                                                                                                                                
Attending  via Teleconference:   From Fairbanks:  BERNARD  GATEWOOD,                                                          
Superintendent,  Fairbanks   Youth  Facility,  and  Alaska  Juvenile                                                            
Correction  Officer   Association;  JEFF  RIGA;  From   Mat-Su:  RAY                                                            
MICHAELSON,  Superintendent,  Mat-Su  Youth  Facility,  and  Member,                                                            
Alaska Juvenile Correction Officer Association;                                                                                 
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 359-MUNICIPAL ORGANIZATION GRANTS                                                                                            
                                                                                                                                
The Committee  heard from the sponsor  and the local governments  of                                                            
Haines. An amendment was  adopted and the bill moved from Committee.                                                            
                                                                                                                                
SB 367-PERS BENEFITS FOR JUV INSTIT EMPLOYEES                                                                                   
                                                                                                                                
The Committee  heard from the sponsor, the Department  of Health and                                                            
Social Services,  the Department of Administration  and employees of                                                            
the Division  of Juvenile Justice.  An amendment was considered  and                                                            
adopted and the bill was held in Committee.                                                                                     
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 359                                                                                                        
     "An Act relating to organization grants for mergers,                                                                       
     consolidations, or unifications involving third class                                                                      
     boroughs."                                                                                                                 
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MARY JACKSON,  Staff to Senator John Torgerson, Chair  of the Senate                                                            
Community  and  Regional Affairs  Committee,  which  sponsored  this                                                            
bill,  testified.   She spoke  of  two communities  contemplating  a                                                            
consolidation  and informed that a  review of statute revealed  that                                                            
the   proposed   consolidation    is   not   eligible   to   receive                                                            
organizational grants.                                                                                                          
                                                                                                                                
Ms. Jackson stated this  legislation would permit the receipt of the                                                            
organizational  grants, with $200,000  provided in the first  fiscal                                                            
year and  an additional $200,000  in the  second year. She  compared                                                            
this  to  the amounts  granted  to  other  entities  under  existing                                                            
statute  of $300,000  the  first fiscal  year, $200,000  the  second                                                            
fiscal year and $100,000 the third fiscal year.                                                                                 
                                                                                                                                
Senator Leman  commented that he supported  the efforts of  the City                                                            
of Haines  and the Haines  Borough to consolidate,  however,  he was                                                            
unclear  why  the State  of  Alaska  should pay  $400,000  for  this                                                            
process. He asked what  activities must be funded, and whether these                                                            
expenditures   were  incurred   by  the  State   when  other   local                                                            
governments  were consolidated,  such  as  the City  and Borough  of                                                            
Juneau,  the Anchorage  Municipality,  and the City  and Borough  of                                                            
Sitka, etc.  He understood the need  for the State to cover  certain                                                            
expenses for areas  that were not previously organized  to encourage                                                            
them to organize.                                                                                                               
                                                                                                                                
Ms. Jackson  answered this legislation  is specific for third-class                                                             
boroughs  and that Haines  is the only area  of the State with  this                                                            
form of government.                                                                                                             
                                                                                                                                
Ms. Jackson read from existing statute as follows.                                                                              
                                                                                                                                
     Sec. 29.05.190.   Organization grants to boroughs and unified                                                              
     municipalities.                                                                                                            
          (a) For the purpose of defraying the cost of transition                                                               
     to borough  government and to provide for interim  governmental                                                            
     operations,  each borough or unified municipality  incorporated                                                            
     after December 31,  1985, is entitled to organization grants as                                                            
     follows:                                                                                                                   
     …                                                                                                                          
                                                                                                                                
Senator  Leman asserted  there  is no  information  included in  the                                                            
backup information  for  this legislation  indicating the  necessity                                                            
for these expenditures in the Haines situation.                                                                                 
                                                                                                                                
Ms. Jackson  stated that the Senate  Community and Regional  Affairs                                                            
Committee determined it  is important that the organizational grants                                                            
be offered  to third-class  boroughs,  although in  a lesser  amount                                                            
than awarded to unorganized areas.                                                                                              
                                                                                                                                
Senator Leman  asked if this question arose in the  Senate Community                                                            
and Regional Affairs Committee.                                                                                                 
                                                                                                                                
Ms. Jackson  affirmed the question  was posed and it was  determined                                                            
that  some amount  should  be provided.  She expressed  that  budget                                                            
constraints are the "business" of the Senate Finance Committee.                                                                 
                                                                                                                                
Senator  Leman supported  efforts  to  encourage the  organizing  of                                                            
unorganized communities.                                                                                                        
                                                                                                                                
Senator  Leman reiterated  the  need to  understand  the reason  for                                                            
expending  the State funds.  He qualified  the expenditure  could be                                                            
justifiable and necessary,  but he had no information to prove this.                                                            
                                                                                                                                
MARCO  PIGNALBERI,  City  Manager,  City  of  Haines,  referenced  a                                                            
handout titled  "Outline Estimate  of Costs for Consolidation"  that                                                            
details  the anticipated  costs involved  in  coordination [copy  on                                                            
file]. He spoke to expenditures  made to date for such services as a                                                            
consultant  and legal fees  to address litigation  on the issue.  He                                                            
noted  that the local  governments  have covered  these expenses  to                                                            
date.                                                                                                                           
                                                                                                                                
Mr. Pignalberi  asked and answered  why the State must pay  $400,000                                                            
for these  expenses, asserting  the question  instead should  be why                                                            
the State does  not appropriate $600,000  for these efforts  because                                                            
that is the amount  currently authorized for newly  formed boroughs.                                                            
He stated  that  the Local  Boundary Commission  is  unsure why  the                                                            
consolidation  is excluded from existing  statute. He surmised  that                                                            
in 1985, when  third class boroughs  were deleted from this  portion                                                            
of statute  and the $600,000 grant  provision was added,  it was not                                                            
anticipated that the Haines governments would consolidate.                                                                      
                                                                                                                                
Mr. Pignalberi stated the  $600,000 grant program is for the purpose                                                            
of  establishing  first  class  city  and  borough  governments.  He                                                            
stressed this  process is "part of  the constitutional fulfillment"                                                             
that requires  the State to work toward  obtaining the least  number                                                            
of governmental  entities  and the  fewest number  of tax  assessing                                                            
entities.  He  asserted  this  has  been  the  goal  of  the  Haines                                                            
community since 1998. He  spoke of an upcoming election to determine                                                            
whether the city and borough governments should be consolidated.                                                                
                                                                                                                                
Mr.  Pignalberi  noted  a  cost  benefit  to  the  State  from  this                                                            
consolidation  in that  of one  less applicant  would be  requesting                                                            
state grant funds in the future.                                                                                                
                                                                                                                                
Mr. Pignalberi also stressed  the new city and borough would provide                                                            
a stronger local government.                                                                                                    
                                                                                                                                
Mr.  Pignalberi  also  pointed  out  a  stipulation  in  the  Alaska                                                            
Administrative Code requiring  that consolidations must be completed                                                            
within two years. He asserted  this could not be accomplished within                                                            
the deadline without the services of a contracted consultant.                                                                   
                                                                                                                                
Senator Ward  asked the consequence  if the  State does not  provide                                                            
the requested $400,000 in grant funding.                                                                                        
                                                                                                                                
DAVID  BLACK,  Mayor,  City  of  Haines,  surmised  the  city  would                                                            
continue its efforts  for consolidation. However,  he cautioned that                                                            
the anticipation that borough  residents would incur increased costs                                                            
could  provide  the  incentive  for  those  voters  to  not  support                                                            
consolidation.  He  informed  of  a recent  election  in  which  the                                                            
question  to  consolidate  failed  by two  votes.  He  surmised  the                                                            
proponents  of  the consolidation  "are  working  in a  very  narrow                                                            
margin."                                                                                                                        
                                                                                                                                
Senator Ward  asked if the election  included both city and  borough                                                            
residents.                                                                                                                      
                                                                                                                                
Mr. Black affirmed.                                                                                                             
                                                                                                                                
LUCY HARRELL,  Member,  Haines Borough  Assembly  and Haines  School                                                            
Board testified to comments  she has heard indicating that receiving                                                            
funding  for this  transition could  be the  "crucial" influence  to                                                            
convince voters to approve the consolidation.                                                                                   
                                                                                                                                
Ms. Harrell  reminded  that the current  Haines  Borough is a  third                                                            
class borough  and therefore  its authority  is limited to  taxation                                                            
and school operation.  She stated that current activities  are being                                                            
conducted   by  the  Borough  assembly   "in  gray  areas"   of  its                                                            
authorization.  As  a  result,  she stressed,  it  is  difficult  to                                                            
convince residents to run  for public office, given the questionable                                                            
legalities  of their actions  as a government.  She told of  the few                                                            
people holding  multiple offices. She asserted the  intent to create                                                            
a government that "represents all people in the area."                                                                          
                                                                                                                                
Ms. Harrell spoke  to the unfairness of providing  grant funding for                                                            
other organizational efforts  while excluding the Haines government.                                                            
She  asserted  the  Haines  consolidation  would  require  both  the                                                            
formation of  a new government and  the dissolution of the  existing                                                            
system.                                                                                                                         
                                                                                                                                
Amendment #1: This amendment  inserts language into the title of the                                                            
bill, following "boroughs", to read as follows.                                                                                 
                                                                                                                                
     An   Act  relating   to  organization   grants   for   mergers,                                                            
     consolidations,   or   unifications   involving   third   class                                                            
     boroughs; and relating  to identification by the Local Boundary                                                            
     Commission  of  areas  that  meet  the  standards  for  borough                                                            
     incorporation.                                                                                                             
                                                                                                                                
This amendment  also adds  a new bill section  on page 2,  following                                                            
line 2, to read as follows.                                                                                                     
                                                                                                                                
          Sec. 3. The uncodified law of the State of Alaska is                                                                  
     amended by adding a new section to read:                                                                                   
          REVIEW OF UNORGANIZED BOROUGH. The Local Boundary                                                                     
     Commission shall review  conditions in the unorganized borough.                                                            
               th                                                                                                               
     By  the 10   day of the  First Regular  Session of the  Twenty-                                                            
     Third Alaska State  Legislature, the commission shall report to                                                            
     the  legislature  the areas  it has  identified  that meet  the                                                            
     standards  for  borough incorporation  and  the  basis for  its                                                            
     determination,   and  make  recommendations   for  legislative                                                             
     consideration.                                                                                                             
                                                                                                                                
Senator Wilken moved for adoption.                                                                                              
                                                                                                                                
Senator Austerman objected for an explanation.                                                                                  
                                                                                                                                
Senator Wilken  stated this amendment  instructs the Local  Boundary                                                            
Commission to  identify those areas where organization  into a local                                                            
government  is feasible.  He recalled past  unsuccessful efforts  in                                                            
this  matter  and  assured  this  amendment  was  drafted  with  the                                                            
assistance  of  the  chair of  the  Local  Boundary  Commission.  He                                                            
emphasized  it is not his intent to  slow the process of  passage of                                                            
this legislation. However,  he stressed the matter requires "serious                                                            
consideration"  and that  he did not  anticipate  any member  of the                                                            
legislature  opposing the  identification of  "those areas  that are                                                            
able to help themselves."                                                                                                       
                                                                                                                                
Senator Austerman  commented he also did not want  to hamper efforts                                                            
in passage of this bill,  although he wanted input from the sponsor.                                                            
                                                                                                                                
Senator Wilken  assured that if the sponsor indicated  opposition to                                                            
this amendment, he would remove it at a later date.                                                                             
                                                                                                                                
Ms. Jackson agreed Senator  Torgerson has supported these efforts in                                                            
the past.  She qualified  he could  have concerns  if a fiscal  note                                                            
were generated.                                                                                                                 
                                                                                                                                
Senator  Hoffman  commented   that  it is  "highly   probable"  this                                                            
amendment   "drastically   slow   down   and  possibly   kill   this                                                            
legislation."                                                                                                                   
                                                                                                                                
Senator Austerman  asked if legislation  has been introduced  in the                                                            
House  of Representatives   that addresses  grant  funding  for  the                                                            
Haines government as well.                                                                                                      
                                                                                                                                
Co-Chair Kelly replied such a bill does exist.                                                                                  
                                                                                                                                
Senator  Austerman   removed  his  objection  to  adoption   of  the                                                            
amendment.                                                                                                                      
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Senator Ward  asked for  clarification of  the outline of  estimated                                                            
costs handout.  He questioned the  amount that must be spent  during                                                            
the first year  of consolidation rather than deferred  to the second                                                            
year.                                                                                                                           
                                                                                                                                
Mr.  Pignalberi  stressed  the  need to  undertake  the  process  as                                                            
quickly as possible.  He stated all expenditures would  not be known                                                            
until the  process is underway.  He expressed  intent to  accomplish                                                            
the  consolidation   in  one  year,   and  noted  statute   requires                                                            
completion in two years.                                                                                                        
                                                                                                                                
Senator   Ward  asked  for   an  explanation   of  the  "litigation                                                             
contingency."                                                                                                                   
                                                                                                                                
Mr.  Pignalberi  told of  the  previous  attempt  for consolidation                                                             
undertaken  in 1998  and a subsequent  lawsuit  involving a  utility                                                            
operating within  the city. He informed he has been  told that those                                                            
parties  opposing consolidation  would  attempt  to identify  issues                                                            
whereby a lawsuit could  be brought to stop the efforts. He noted an                                                            
on-going  legal  dispute  relating  to  consolidation   regarding  a                                                            
service area has incurred $25,000 in expenses.                                                                                  
                                                                                                                                
Senator Ward  asked what  would occur if this  bill passed  into law                                                            
yet the Haines voters rejected the consolidation proposal.                                                                      
                                                                                                                                
Mr. Pignalberi  noted the  Haines government  would not receive  the                                                            
funds. However,  he indicated that the efforts to  consolidate would                                                            
be repeated.                                                                                                                    
                                                                                                                                
Senator  Ward questioned  the manner  in which the  grants would  be                                                            
appropriated.                                                                                                                   
                                                                                                                                
Mr. Pignalberi  explained that the  funds would be appropriated  for                                                            
the fiscal year in which they would be expended.                                                                                
                                                                                                                                
Mr. Pignalberi  spoke to past grant  appropriations for other  newly                                                            
incorporated  boroughs and  surmised that  the Haines consolidation                                                             
process could  be completed in one  year if the funds were  provided                                                            
immediately.  He detailed the timeline  of conducting the  elections                                                            
to consolidate and choose new assembly members.                                                                                 
                                                                                                                                
Senator  Leman  referenced  the  aforementioned  handout,  which  he                                                            
totaled  at a  maximum of  $420,000 in  grant funding.  However,  he                                                            
pointed  out  the  language  of  the  legislation  states  "for  the                                                            
purposes  of defraying  the cost  of transition."  He remarked  this                                                            
appropriation  would cover the entire  identified cost, rather  than                                                            
just defray the cost.                                                                                                           
                                                                                                                                
Mr. Pignalberi  disagreed and listed expenditures  the city has paid                                                            
to date including  consulting fees and litigation  settlement costs.                                                            
He stated  the handout  identifies "broad  categories of costs  here                                                            
that are not meant  to be detailed because we have  no one available                                                            
to  us who  has  gone through  this  before."  He noted  the  city's                                                            
auditors have provided the estimates listed in the handout.                                                                     
                                                                                                                                
Senator  Leman  stated  the  legislature  as recently  as  1994  has                                                            
stated,  "these grants  don't  apply to  a borough  incorporated  by                                                            
consolidation or to a unified  municipality." He stressed the intent                                                            
is  for local  governments  to  consolidate  to form  boroughs,  and                                                            
expressed the situation in the community of Haines is different.                                                                
                                                                                                                                
Mr. Pignalberi  reiterated  the purpose of  the Haines effort  is to                                                            
fulfill the  Alaska constitutional  requirement to create  the least                                                            
number of government  units and taxation jurisdictions  and the most                                                            
effective  local  government.    He  again  referred  to  the  Local                                                            
Boundary Commission's  assertion that this effort  should be funded.                                                            
He remarked, "It's hard  to make a template" to fit "every situation                                                            
around the  State and fit it fairly."  He pointed to efforts  in the                                                            
City  of Skagway  to form  a borough  government  and stressed  that                                                            
community  would be eligible  to receive  $600,000 in grant  funding                                                            
for the effort.                                                                                                                 
                                                                                                                                
Senator  Leman agreed  the grant  funds  would be  available if  the                                                            
areas  considered for  consolidation  into  a borough  if the  Local                                                            
Boundary  Commission  determined  the  efforts  to be  feasible.  He                                                            
suggested  Haines, Skagway,  Gustavus and  Tenakee Springs  could be                                                            
consolidated into  one borough. He did not support  funding a change                                                            
of the City of Skagway to become the Borough of Skagway.                                                                        
                                                                                                                                
Mr. Pignalberi  expressed he could only comment on  the issue of the                                                            
Haines governments.                                                                                                             
                                                                                                                                
Mr. Pignalberi again spoke  of the $1 to $2 million State funds that                                                            
would  be  saved   within  ten  years  as  a  result   of  a  Haines                                                            
consolidation  because the City of Haines would no  longer exist and                                                            
therefore be eligible  to receive capital improvement  project (CIP)                                                            
grants.                                                                                                                         
                                                                                                                                
Ms. Harrell, commented  that a third class borough is not "a borough                                                            
as you  understand  it" but  is rather  a "sick  dinosaur" with  the                                                            
intention  of avoiding forming  a borough  government and  therefore                                                            
must be "put to rest".                                                                                                          
                                                                                                                                
Senator Leman did not oppose  this argument, but stressed that based                                                            
on  the information  provided  to  the Committee,  the  State  would                                                            
provide all  the transitional costs  as opposed to sharing  the cost                                                            
with the local government.                                                                                                      
                                                                                                                                
Ms. Harrell  responded $400,000 would  not pay all the transitional                                                             
costs. She  noted the borough is responsible  for school  operations                                                            
and  stressed  that  a  third  class  borough   is  prohibited  from                                                            
deferring  funds  from  school expenses  to  use  for consolidation                                                             
efforts.  She  listed political activities and economic  development                                                            
as  activities   the  third   class  borough   is  prohibited   from                                                            
participation.  She  stated this  appropriation  would  not pay  the                                                            
entire cost of consolidation, but only "a chunk".                                                                               
                                                                                                                                
Senator Wilken  moved "to  report SB 359  as amended from  Committee                                                            
with individual recommendations and attached fiscal note."                                                                      
                                                                                                                                
There was  no objection  and CS  SB 359 (FIN)  MOVED from  Committee                                                            
with  a $250,000  forthcoming  fiscal note  from  the Department  of                                                            
Community and Economic Development.                                                                                             
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 367                                                                                                        
     "An  Act  relating to  retirement  contributions  and  benefits                                                            
     under  the  public  employees'  retirement  system  of  certain                                                            
     juvenile   detention   employees  and   juvenile  correctional                                                             
     institution employees."                                                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
WENDY HALL,  Staff to Co-Chair Kelly,  testified that this  bill was                                                            
introduced  as an  effort to help  recognize  those individuals  who                                                            
serve  as juvenile  officers throughout  the  State. Currently,  She                                                            
said, Alaska statute provides  that peace officers and fire fighters                                                            
are entitled to  a 20-year retirement service system  while juvenile                                                            
officers  participate in  a 30-year  retirement  system. She  stated                                                            
that this bill would add  juvenile officers to the statute governing                                                            
the retirement system of peace officers and fire fighters.                                                                      
                                                                                                                                
PATTY WARE,  Juvenile Justice Program  Manager and Acting  Director,                                                            
Division  of  Juvenile  Justice, Department   of Health  and  Social                                                            
Services, testified  and read letter of support from  George Buhite,                                                            
Director of the Division  of Juvenile Justice, dated April 29, 2002,                                                            
into the record as follows [copy on file].                                                                                      
                                                                                                                                
     I  want  to  thank you,  the  members  of  the  Senate  Finance                                                            
     Committee  and the Alaska Legislature  for your support  of the                                                            
     Division  of Juvenile Justice. Because of this  support, we are                                                            
     able to  provide the people of  the state with a wide  range of                                                            
     restorative   justice  services  in  which  we   hold  juvenile                                                            
     offenders  accountable,   work  to repair  the  harm  to  those                                                            
     impacted  by juvenile  crime  and provide  offenders and  their                                                            
     families  with  opportunities   to develop  new  skills  to  be                                                            
     productive   and  contributing  members   of  our  schools  and                                                            
     communities.                                                                                                               
                                                                                                                                
     Over  the past several  years, the Legislature  has funded  the                                                            
     construction   and  operation  of  our  juvenile  correctional                                                             
     facilities  in support  of the public  safety component  of the                                                            
     Division's  restorative justice  mission. But buildings  in and                                                            
     of  themselves  do  not  make our  communities  safer  and  our                                                            
     offenders   better   equipped   to  change   their   behaviors.                                                            
     Ultimately,  it is the  people who staff  these facilities  who                                                            
     are responsible for  the positive outcomes that flow to victims                                                            
     and  communities.  It  is  our staff  who  guard,  control  and                                                            
     confront  the  most  hardened  juvenile  offenders,  who  guide                                                            
     parents to  better understanding and more effective  methods of                                                            
     regulating  their child's life,  who provide those impacted  by                                                            
     juvenile  crime with  information and  opportunities to  engage                                                            
     with a system that  strives to right the wrongs done to victims                                                            
     and communities.  These people,  these staff members,  are what                                                            
     make the difference in the end.                                                                                            
                                                                                                                                
     I genuinely  appreciate  the support that  you have shown  [the                                                            
     Division]  in providing  the means to  expand our bed  capacity                                                            
     throughout  Alaska. Today, [I]  am asking you to support  those                                                            
     who work on behalf  of our youth, our families, our victims and                                                            
     our communities by considering and passing SB 367.                                                                         
                                                                                                                                
     This legislation  addresses a long standing inequity  and would                                                            
     give  our youth counselors  the same  benefit now available  to                                                            
     each of  the other correctional  job classes in Alaska's  adult                                                            
     and  juvenile systems.  I  urge you to  pass SB  367 and  again                                                            
     appreciate  all that you have  done in support of our  juvenile                                                            
     justice system.                                                                                                            
                                                                                                                                
Senator  Wilken cited  page  3 line  25 of  the bill,  "…a  juvenile                                                            
detention  or juvenile correctional  facility…"  and asked  if these                                                            
facilities are defined elsewhere.                                                                                               
                                                                                                                                
Ms.   Ware  responded   that   juvenile   detention   and   juvenile                                                            
correctional facility  are defined in AS 47.14. She  noted this bill                                                            
does not apply  to any municipally funded or operated  facility, but                                                            
rather only to State facilities.                                                                                                
                                                                                                                                
Senator  Wilken understood,  but voiced  concern  that this  statute                                                            
could  be expanded  to juvenile  halfway  houses  or other  juvenile                                                            
facilities in the future.                                                                                                       
                                                                                                                                
ROBERT BUTTCANE,  Legislative and  Administrative Liaison,  Division                                                            
of  Juvenile Justice,  Department  of  Health and  Social  Services,                                                            
assured that statutory  language is specific as to  what constitutes                                                            
a juvenile detention facility.                                                                                                  
                                                                                                                                
                                                                                                                                
SFC 02 # 80, Side B 05:09 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr. Buttcane agreed  with Senator Wilken that it is  important to be                                                            
mindful to  avoid a reinterpreted  definition of juvenile  detention                                                            
facilities in a manner not intended.                                                                                            
                                                                                                                                
Senator  Ward  asked  what  other  states   provide  for  a  20-year                                                            
requirement system for juvenile justice correctional officers.                                                                  
                                                                                                                                
Mr. Buttcane replied  that he had researched the matter  and learned                                                            
there is no consistency.  He noted that counties rather  than states                                                            
administer most  juvenile systems. Therefore, he was  unable to make                                                            
an accurate comparison.                                                                                                         
                                                                                                                                
Senator Ward understood  a national organization of juvenile justice                                                            
correctional  officers  exists. He  surmised this  group would  have                                                            
records of this.                                                                                                                
                                                                                                                                
Mr.  Buttcane responded  that  the Division  made  inquiries of  the                                                            
American  Probation   and  Parole   Association  and  the   American                                                            
Corrections  Association  and  both  responded  they  do  not  track                                                            
retirement systems and referred him to individuals.                                                                             
                                                                                                                                
Senator Ward  asked if any other state  offers a 20-year  retirement                                                            
system.                                                                                                                         
                                                                                                                                
Mr. Buttcane did not know.                                                                                                      
                                                                                                                                
Senator Leman asked if a fiscal note is available.                                                                              
                                                                                                                                
Co-Chair Kelly  informed that a fiscal  note had not been  submitted                                                            
for this legislation to date.                                                                                                   
                                                                                                                                
Senator Leman  noted other discussions  entailed that employees  pay                                                            
the full actuarial costs  of an earlier retirement and asked if such                                                            
a method is proposed for this legislation as well.                                                                              
                                                                                                                                
Mr.  Buttcane  reminded  that  this  request  has  been  before  the                                                            
Legislature  for the  past 12  years. He  recalled  the most  recent                                                            
scenario  provided  that  the  participating  employee  would  incur                                                            
responsibility  for the entire  debt. However,  he pointed  out that                                                            
the  potential  benefit  is  "impractical"   for certain   employees                                                            
including   police  dispatchers,   none  of   whom  have  opted   to                                                            
participate  because  the  indebtedness  to the  employee  would  be                                                            
"several tens of thousands  of dollars". He shared that the Division                                                            
had  an opportunity  to  include  its  employees  in that  plan  but                                                            
determined  it would not  be practical  as well  as being a  "parody                                                            
issue"  in that  other correctional  officers  are  not required  to                                                            
incur  the  expenses.  He  stressed  the  employees  who  work  with                                                            
juvenile  delinquents face  the same dangers  as adult correctional                                                             
officers.                                                                                                                       
                                                                                                                                
JANET  PARKER,  Retirement  and Benefits  Manager,  Health  Benefits                                                            
Sections,  Division  of  Retirement   and Benefits,   Department  of                                                            
Administration, testified  the bill would have an indeterminate cost                                                            
to the State and  an actuarial cost to the participating  employees.                                                            
She  explained the  employees  would be  eligible  to claim  service                                                            
retroactive to their date  of hire with their indebtedness being the                                                            
difference  in the amount of contribution  to the retirement  system                                                            
for the previous  years of service.  She added that the State  would                                                            
pay  the  remainder  of  the  actuarial   cost.  She  informed  that                                                            
approximately 240 employees  would qualify under this system and the                                                            
total cost  would be  $7.2 million  with a  State rate contribution                                                             
increase of .0014  percent. She calculated the annual  State expense                                                            
at less  than $900,000  and that  $428,000 of  this amount would  be                                                            
charged to the general fund.                                                                                                    
                                                                                                                                
Senator Ward asked  of the 240 employees, how many  had served 15 to                                                            
20 years.                                                                                                                       
                                                                                                                                
Mr. Buttcane  replied  that approximately  46  employees were  hired                                                            
before 1986 and  are covered under the Tier I retirement  system. He                                                            
noted  these employees  have  served between  12 and  23 years.  The                                                            
remaining employees, he said, have served less than 12 years.                                                                   
                                                                                                                                
Senator Austerman  referred to page  2 of the fiscal note  and asked                                                            
if the $428,000  amount charged to general funds would  be an annual                                                            
cost.                                                                                                                           
                                                                                                                                
Ms. Parker affirmed.                                                                                                            
                                                                                                                                
Mr. Buttcane qualified  that the .14 percent rate could be paid from                                                            
the  Department's   budget  without   an  additional  appropriation                                                             
necessary.  He  noted   that  additional  expenses  resulting   from                                                            
unemployment insurance  rates increases and employee  leave cash-ins                                                            
are absorbed as well.                                                                                                           
                                                                                                                                
Mr. Buttcane  cited that  approximately 65  percent of employees  do                                                            
not remain  in this  field until  retirement. He  detailed the  high                                                            
stress and necessary  dedication to young people and  expressed that                                                            
the 35  percent who  remain in the  field for 12  or more years  are                                                            
"genuinely committed".  Therefore, he predicted the cost assumptions                                                            
might not "bear true", thus the indeterminate fiscal note.                                                                      
                                                                                                                                
Senator  Hoffman  asked  about hazardous  duties  incidents  of  the                                                            
previous five years.                                                                                                            
                                                                                                                                
Mr.  Buttcane   detailed  a  number   of  serious  and  significant                                                             
incidences  where  officers  were  strangled,  bitten,  kicked,  and                                                            
otherwise attacked. He  assured these are not daily occurrences, but                                                            
emphasized  that  smaller incidents  are  common. He  noted  workers                                                            
compensation  claims have decreased  from approximately $400,000  in                                                            
1997,  due  to increased  training  efforts,  additional  staff  and                                                            
reduced overcrowding.  He  pointed out the  youth facility  staff do                                                            
not have access  to many implements  utilized in adult correctional                                                             
facilities, including clubs, etc.                                                                                               
                                                                                                                                
Senator Ward  asserted this legislation  would allow trained  senior                                                            
officials  to retire  early and  subsequently reduce  the number  of                                                            
qualified staff.                                                                                                                
                                                                                                                                
Mr.  Buttcane  replied the  Division  anticipates  this legislation                                                             
would encourage employees  to stay longer than the average ten years                                                            
currently served and therefore  increase retention. He admitted some                                                            
who might  have worked 30  years would chose  to retire sooner,  but                                                            
reiterated   testimony  given   before  the   House  State   Affairs                                                            
Committee,  that the mean length of  service of employees  currently                                                            
eligible for 20-year retirement,  is 22 years. He informed that many                                                            
employees could not afford  to retire at 20 years of service, giving                                                            
as an example  employees who have children in collage  at that time.                                                            
He  noted  the average  annual  retirement  under  this  program  is                                                            
$18,000.                                                                                                                        
                                                                                                                                
Ms. Parker detailed  the approximately 45 percent  of salary paid in                                                            
retirement benefits.                                                                                                            
                                                                                                                                
Mr. Buttcane  reminded that  the salaries  for youth counselors  are                                                            
between  Range  11  and  13,  which  is  relatively  low  for  State                                                            
employees.                                                                                                                      
                                                                                                                                
Senator  Hoffman  asked  if were  possible  to  work as  a  juvenile                                                            
correction officer  for 20 years, work for a fire  department for an                                                            
additional  20  years  then  retire  with  two complete   retirement                                                            
packages.                                                                                                                       
                                                                                                                                
Ms. Parker answered no,  that the Public Employees Retirement System                                                            
(PERS) covers both fields.                                                                                                      
                                                                                                                                
GREG  ROTH,   Alaska  Juvenile   Correction   Officer  Association,                                                             
testified   the  Association  has   240  members  who  staff   seven                                                            
facilities  in the state.  He read  a statement  into the record  as                                                            
follows.                                                                                                                        
                                                                                                                                
     We specifically chose our name, Alaska Juvenile Correction                                                                 
     Officers Association,  because it accurately represents what we                                                            
     do in  our jobs. The  public and job  applicants are  sometimes                                                            
     confused  by  our  working  title  of  youth  counselors.  They                                                            
     mistakenly   believe  that  we  see  kids  in   offices  or  by                                                            
     appointment.  Nothing could be further from the  truth. In fact                                                            
     we  provide  24-hour  locked  correctional   care  and  custody                                                            
     related to  the incarceration of people against  their will. It                                                            
     also includes all the duties that entails.                                                                                 
                                                                                                                                
     Each  day in performance  of our duties,  youth counselors  are                                                            
     involved  in a  chain  of custody  with other  law enforcement                                                             
     professionals  across  the  State. Minors  are  brought to  our                                                            
     youth  facilities  in handcuffs  in the  back  of police  cars.                                                            
     They've been arrested  for a crime. They've been brought to our                                                            
     facilities  in an angry,  agitated or  assaultive state.  Often                                                            
     times,  they are violent or intoxicated.  The officers  turning                                                            
     these  youths  over  to youth  counselors  are  given  weapons,                                                            
     shields,  body armor and chemical  deterrents in order  to deal                                                            
     with these  offenders. Youth counselors use their  skill, their                                                            
     training  and their relationships they've formed  with the kids                                                            
     in order to conduct their duties safely.                                                                                   
                                                                                                                                
     We  also exchange custody  of minors  between youth  counselors                                                            
     and judicial  services officers  in the court buildings  across                                                            
     the  street and other  facilities around  the State. We  accept                                                            
     custody  from juvenile  probation  officers out  in the  field.                                                            
     Often  times  we assist  in  those arrests-juvenile   probation                                                            
     officers request our assistance in those cases.                                                                            
                                                                                                                                
     Some  of  our  offenders  are charged  with  very  serious  and                                                            
     violent  crimes  and  may spend  30,  60,  90 days  inside  our                                                            
     facilities  before being transferred  to an adult facility.  In                                                            
     those  cases, we  transfer our  kids over  to adult  correction                                                            
     officers. In the meantime,  we've held those juveniles the same                                                            
     as adult  correctional officers  would have held them  in their                                                            
     facilities.                                                                                                                
                                                                                                                                
     In addition  to custody transfers,  some of our youths  stay in                                                            
     our  facilities until  they are  age 20. So  we are stuck  with                                                            
     housing  adults in some of our  facilities. That happens  every                                                            
     day in the performance of our duties.                                                                                      
                                                                                                                                
     Also as mandated by  statute, youth counselors make independent                                                            
     arrests in the community  in the pursuit of juveniles that have                                                            
     absconded  from our facilities or from an escort  for a medical                                                            
     or  service  transport.  We in  fact make  arrests  out in  the                                                            
     community.                                                                                                                 
                                                                                                                                
     The  duties  of the  youth  counselor  position  require  solid                                                            
     training and excellent  skill development in handling resistive                                                            
     clients.  Peak mental and physical  condition is necessary  and                                                            
     critical  to safely carry out these duties. This  bill, SB 367,                                                            
     corrects  the  inequity  regarding  the  retirement   disparity                                                            
     between  youth  counselors and  all other  job  classes in  the                                                            
     chain of custody for offenders that currently exist.                                                                       
                                                                                                                                
     The bottom  line is that each  and every day, youth  counselors                                                            
     put  their lives on  the line to keep  Alaska safe and  improve                                                            
     public   protection   through   the  safe   incarceration   and                                                            
     rehabilitation   of   juvenile   offenders.   Alaska   Juvenile                                                            
     Correctional  Officers  Association appreciates  your time  and                                                            
     your consideration in support of this legislation.                                                                         
                                                                                                                                
Senator Ward reposed his  question of whether other states provide a                                                            
20-year retirement for youth counselors.                                                                                        
                                                                                                                                
Mr.   Roth   repeated   earlier   responses    that   counties   and                                                            
municipalities  in most states operate  youth counselor operations.                                                             
He added that  with the exception of Anchorage, most  municipalities                                                            
in  Alaska  could  not  afford  to  operate  juvenile  correctional                                                             
facilities.                                                                                                                     
                                                                                                                                
Senator  Ward  asked  of  a  municipality   that  offers  a  20-year                                                            
retirement to youth correctional officers.                                                                                      
                                                                                                                                
Mr.  Roth  replied  that  many  juvenile  detention  facilities  are                                                            
operated  by the county sheriff  system, many  of which are  covered                                                            
under a 20-year retirement system.                                                                                              
                                                                                                                                
Senator  Ward noted  sheriff deputies  are trained  and licensed  to                                                            
carry  firearms  and to  perform other  duties.  He  asked if  other                                                            
employees  who provide the  same duties as  the youth counselors  in                                                            
Alaska  receive a  20-year  retirement. He  expressed  he would  not                                                            
support this  legislation because  he has seen no evidence  of other                                                            
programs  offering a  20-year retirement  system.  He indicated  his                                                            
research  in the  matter has  shown  that most  juvenile  correction                                                            
officers qualify for a 30-year retirement system.                                                                               
                                                                                                                                
KRISTI HELGEN,  Juvenile Probation  Officer IV, Probation  Services,                                                            
Division  of  Juvenile  Justice, Department   of Health  and  Social                                                            
Services,  testified  about  the  inclusion  of  juvenile  probation                                                            
officers in  the 20-year retirement  system. She told of  personally                                                            
petitioning the court on  six cases of murder, one case of attempted                                                            
murder,  and numerous felony  and/or sexual  assaults. She  stressed                                                            
that  the  youths  who  committed  these  serious  crimes  were  all                                                            
detained at youth facilities under the care of youth counselors.                                                                
                                                                                                                                
Ms. Helgen spoke  of the dangers faced by youth counselors  who must                                                            
work in continuous direct  contact with these juveniles in an effort                                                            
to carry  out the  Division's mission  of restorative  justice.  She                                                            
stated  that in addition  to being  responsible  for protecting  the                                                            
public by  guarding these  youth, youth counselors  work with  these                                                            
youth to hold  them accountable for  their actions, repair  the harm                                                            
to victims  and community,  and assist youth  in the development  of                                                            
competencies  so that they may be  better citizens once released  to                                                            
the community.                                                                                                                  
                                                                                                                                
Ms. Helgen  noted that as  a juvenile probation  officer, she  could                                                            
request  assistance  from law  enforcement  when concerned  for  her                                                            
personal safety;  however youth counselors do not  have this option.                                                            
She  relayed  incidences  in  Bethel  where  youth  counselors  have                                                            
suffered injury.  She expressed  that as a "have", who benefits from                                                            
the 20-year retirement  system, she is embarrassed  to work with the                                                            
"have-nots", the  youth counselors who do not receive  this benefit.                                                            
                                                                                                                                
BERNARD  GATEWOOD,  Superintendent,  Fairbanks Youth  Facility,  and                                                            
Alaska  Juvenile  Correction  Officer  Association,   testified  via                                                            
teleconference   from  Fairbanks  to  encourage  support   for  this                                                            
legislation. He  stated this would correct an inequity  and spoke to                                                            
the "misnomer" of the title  "youth counselor" as these officers are                                                            
often the "last  line of defense between the Alaska  public and some                                                            
of the most serious juvenile  offenders in the correctional system."                                                            
He  detailed   the  range   of  counseling   services  intended   to                                                            
rehabilitate and  prevent the offenders from hurting  themselves and                                                            
others.                                                                                                                         
                                                                                                                                
JEFF RIGA testified  via teleconference from Fairbanks  to reiterate                                                            
the previous  witness' statement.  He added that he has experienced                                                             
during his 23 years in  this occupation, many of the same threats as                                                            
other youth correction officers.                                                                                                
                                                                                                                                
RAY MICHAELSON,  Superintendent, Mat-Su Youth Facility,  and Member,                                                            
Alaska  Juvenile  Correction  Officer  Association,   testified  via                                                            
teleconference from Palmer  about his career experience beginning as                                                            
a juvenile probation  officer in 1990. He talked about  the inequity                                                            
of  the 30-year  retirement  system  for youth  correction  officers                                                            
compared to the 20-year  system applicable for other law enforcement                                                            
personnel.                                                                                                                      
                                                                                                                                
[Note: Teleconference quality from this site is poor.]                                                                          
                                                                                                                                
Senator  Wilken  referred  to earlier  discussion  relating  to  the                                                            
definition  of youth  facilities and  requested  Mr. Buttcane  share                                                            
information recently discovered.                                                                                                
                                                                                                                                
Mr.  Buttcane   clarified   that  the  definition   includes   youth                                                            
facilities  operated by municipalities.  He suggested amending  this                                                            
bill to specify the 20-year  retirement applies only to employees of                                                            
state-operated   facilities   to   avoid  extending   provision   to                                                            
municipally operated facilities.                                                                                                
                                                                                                                                
Amendment #1:  This amendment clarifies  the definition of  juvenile                                                            
officer as it  relates to this legislation by specifying  employment                                                            
by the State  of Alaska. The amended  language in page 3,  following                                                            
line 22 reads as follows.                                                                                                       
                                                                                                                                
          Sec. 6. AS 39.35.680 is amended by adding a new paragraph                                                             
     to read:                                                                                                                   
                     (41) "juvenile officer" means a State of Alaska                                                            
          youth  counselor,  unit  leader,  or superintendent  in  a                                                            
          juvenile   detention  or juvenile  correctional   facility                                                            
          operated by the State of Alaska.                                                                                      
                                                                                                                                
Senator Wilken moved for adoption.                                                                                              
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Co-Chair Kelly ordered the bill HELD in Committee.                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Pete Kelly adjourned the meeting at 05:52 PM                                                                           

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