Legislature(2001 - 2002)
05/12/2002 09:06 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 12, 2002
9:06 PM
TAPES
SFC-02 # 98, Side A
SFC 02 # 98, Side B
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 9:06 PM.
PRESENT
Senator Pete Kelly, Co-Chair
Senator Dave Donley, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Loren Leman
Senator Lyda Green
Senator Gary Wilken
Senator Lyman Hoffman
Senator Donny Olson
Senator Alan Austerman
Also Attending: REPRESENTATIVE HARRY CRAWFORD; REPRESENTATIVE JOHN
COGHILL; REPRESENTATIVE NORM ROKEBERG; DAVE D'AMATO, staff to
Representative Crawford; NICO BUS, Administrative Services Manager,
Division of Support Services, Department of Natural Resources; SUE
WRIGHT, Staff to Representative Chenault; HEATH HILYARD, Staff to
Representative James; JOHN MANLEY, Staff to Representative Harris;
MARGO KNUTH, Commissioner, Department of Corrections;
Attending via Teleconference: From an off-net site in Sterling:
DEE HUBBARD; From an off-net site in the State of Kansas: FRANK
SMITH; From an unspecified off-net site: RICHARD VAN HATTON, 16-
year correctional officer for the State of Alaska, and President,
Correctional Officer Chapter of the Public Safety Employees
Association; From an off-net site in Whittier: BEN BUTLER, Mayor,
City of Whittier
SUMMARY INFORMATION
HB 303-INDIVIDUAL INCOME TAX
The bill moved from Committee.
HB 317-STALKING & PROTECTIVE ORDERS
The Committee heard from the sponsor. The bill moved from
Committee.
HB 252-CHILDREN IN NEED OF AID: SERVICES & LIAB.
The Committee heard from the sponsor. A committee substitute was
adopted and the bill moved from Committee.
HB 131-FOREST RESOURCES & PRACTICES STANDARDS
The Committee heard from the Department of Natural Resources. An
amendment was adopted and the bill moved from Committee.
HB 489-CRUELTY TO ANIMALS
The Committee heard from the sponsor and the bill moved from
Committee.
HJR 35-REPEAL ESTATE TAX
The Committee heard from the sponsor and the bill moved from
Committee.
HB 27-HOME INSPECTORS/CONTRACTORS
The Committee heard from the sponsor and the bill moved from
Committee.
HB 498-CORRECTIONAL FACILITIES
The Committee heard from the Department of Corrections, industry
representatives and the City of Whittier. The bill moved from
Committee.
2d CS FOR HOUSE BILL NO. 303(RLS)(fld S)
"An Act relating to taxation of individual income; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Senator Leman commented that a personal income tax should be the
last option considered for bridging the State's fiscal gap rather
than the first option.
Senator Green "moved to report House Bill 303 out of Committee with
individual recommendations and accompanying fiscal note."
There was no objection and 2d CS HB 303(RLS)(fld S) MOVED from
Committee with accompanying fiscal note #2 for $3,940,200 from the
Department of Revenue.
AT EASE 9:08 PM / 9:10 PM
CS FOR HOUSE BILL NO. 317(FIN)
"An Act relating to stalking and to violating a protective
order; and amending Rules 4 and 65, Alaska Rules of Civil
Procedure, and Rule 9, Alaska Rules of Administration."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE HARRY CRAWFORD, sponsor, testified this bill closes
a loophole in Alaska law to allow unacquainted victims of a stalker
to receive the same security of a judicial protective order that
victims who have had a prior relationship with a stalker receive.
AT EASE 9:11 PM / 9:13 PM
Representative Crawford noted an anti-stalking law exists in the
domestic violence statues, but only applies to those offenders with
a prior relationship with the victim, such as husbands, ex-
boyfriends, etc., and does not apply to offenders who are strangers
to their victim. He emphasized if a stranger stalks a victim, the
anti-stalking law currently does not offer protection against the
offender.
Senator Green recalled discussions several years prior relating to
other domestic violence legislation in which a concern was raised
about a presumption of guilt. She noted the anti-stalking laws do
not contain a method for the accused to defend him or herself
against the allegations before a judicial order is issued. She
asked if this legislation contains provisions allowing the accused
proper notice and legal representation before such an order is
imposed.
Representative Crawford began to describe the three types of
protective orders currently available, including emergency
protective orders, which a police officer is able to issue.
DAVE D'AMATO, staff to Representative Crawford, testified that this
legislation has been under consideration for six to seven years in
part to address such issues as the concern Senator Green raised. He
informed that the attorney who drafted this bill, Jerry Luckhaupt,
subscribes to the theory that, "there should be no such thing as ex
parte protective orders" because of a presumption of guilt within
the community. Mr. d'Amato explained the provisions in this bill
"balances" the presumption of guilt with the need for protective
orders by allowing a party to obtain an 72-hour emergency
protective order but would not bar the accused party from their
home or work without receipt of proper notice, in which case the
accused would have an opportunity to challenge the order.
Senator Leman shared that he had sponsored anti-stalking
legislation that passed into law during a previous legislative
session. He expressed the protection is important and that he would
vote in favor of this bill.
Senator Leman "moved to report House Bill 317 from Committee with
individual recommendations and the accompanying zero and
indeterminate fiscal notes."
There was no objection and CS HB 317 (FIN) MOVED from Committee
with zero fiscal notes: #1 from the Department of Law, and #5 from
the Department of Public Safety; and indeterminate fiscal notes: #2
from the Department of Corrections, and #3 from the Department of
Administration.
SENATE CS FOR CS FOR HOUSE BILL NO. 252(JUD)
"An Act relating to the construction of certain statutes
relating to children; relating to the scope of duty and
standard of care for persons who provide services to certain
children and families; relating to civil liability for damages
to certain children and their families resulting from failure
to comply with certain statutes; relating to intensive family
preservation services; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE JOHN COGHILL, sponsor, testified this legislation
would accomplish four goals. He listed: 1)"sets the primacy of the
family in the discussion when it comes to children in need of aid,"
referencing the intent language of the bill as reflecting this; 2)
establishes "intensive family preservation services";
3)"establishes a civil liability issue with regard to the Children
in Need of Aid law, Title 47"; and 4) orders a study to learn the
need for these intensive family preservation services. He spoke to
the $80,000 fiscal note, which he informed would cover expenses for
additional staffing to oversee the intensive family services and
the study.
Representative Coghill pointed out language contained on page 5
following line 2 of the Senate Judiciary committee substitute,
which he stated should have been amended.
Sec. 7. AS 47.10.960 is amended to read:
Sec. 47.10.960. Civil liability [DUTY AND STANDARD
OF CARE NOT CREATED]. Failure by the department to
comply with a provision of [NOTHING IN] this chapter does
not, by itself, constitute a basis for civil liability
for damages [TITLE CREATES A DUTY OR STANDARD OF CARE FOR
SERVICES] to children and their families being served
under this chapter [AS 47.10].
New Text Underlined [DELETED TEXT BRACKETED]
Senator Leman moved to adopt SCS CS HB 252 (FIN), 22-LS0454\I, as a
working draft.
Representative Coghill detailed the committee substitute changes
the language in Section 7 to read as follows.
Sec. 7. AS 47.10.960 is amended to read:
Sec. 47.10.960. Civil liability [DUTY AND STANDARD
OF CARE NOT CREATED]. Failure to comply with a provision
of [NOTHING IN] this chapter does not, by itself,
constitute a basis for civil liability for damages [TITLE
CREATES A DUTY OR STANDARD OF CARE FOR SERVICES] to
children and their families being served under this
chapter [AS 47.10].
New Text Underlined [DELETED TEXT BRACKETED]
Representative Coghill explained this matter has been contentious
and the current language is the recommendation of the Department of
Law and the Legislative Division of Legal and Research Services. He
noted this language clarifies the party responsible for a failure
to comply with this statute and stipulates that this section
applies only to this chapter of law.
Senator Green "moved Senate CS for CS for House Bill 252 Version I
with individual recommendations and accompanying fiscal note."
Without objection SCS CS HB 252 (FIN) MOVED from Committee with
zero fiscal note #2 from the Department of Law and $80,000 fiscal
note #1 from the Department of Health and Social Services.
HOUSE BILL NO. 131
"An Act relating to standards for forest resources and
practices; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources testified this
legislation modifies the Forest Practices Act as a result of State,
private industry, resource agencies, university, and federal
government representatives' efforts of the previous two years. He
noted this bill amends standards applied to Region 3, Interior
Alaska and is intended to protect fish habitat and water quality,
support a healthy timber and fishing industry and incorporate the
best available science.
Co-Chair Kelly understood all parties involved are in support of
this legislation. He relayed he had spoken to miners and foresters
and was told of no objections. He also noted this legislation is of
a high priority.
Amendment #1: This amendment changes the effective date of this
legislation from September 1, 2001 to September 1, 2002.
Senator Green moved for adoption.
The amendment was ADOPTED without objection.
Senator Green "moved House Bill 131, Version A, out of Committee
with individual recommendations and accompanying zero fiscal note."
[It was the Committee's intent to report Version A as amended from
Committee.]
Without objection SCS HB 131 (FIN) with accompanying zero fiscal
note #2 from the Department of Natural Resources, MOVED from
Committee.
CS FOR HOUSE BILL NO. 489(JUD)
"An Act relating to cruelty to animals."
This was the first hearing for this bill in the Senate Finance
Committee.
SUE WRIGHT, Staff to Representative Chenault, sponsor, testified
this legislation would increase the penalties for animal cruelty.
She informed that this legislation is "event-driven" resulting from
an incident that occurred in Sterling, Alaska, in which it was
discovered that current statute was "lacking".
Senator Leman asked the reason community service as a form of
punishment, is not a requirement in this legislation. He noted that
the classification of the offense as a Class A misdemeanor allows
for the sentencing to include community service.
Ms. Wright stated that a specific provision requiring community
service had been included in an earlier version of this bill but
removed through the efforts of Representative Berkowitz by the
House Judiciary Committee. She suggested the matter could be
readdressed the next legislative session.
Senator Austerman asked the consequences of failing to report an
incident of animal cruelty.
Ms. Wright replied that consequences for this failure had been
included, and then amended from, the original version of the bill
by the Senate Judiciary Committee. As a result, she remarked, the
current version of the bill does not contain a provision for the
failure to report animal cruelty. She noted that Representative
Chenault is of the opinion that animal cruelty has been proven
through many reports to be a precursor to child and domestic
violence. She indicated a provision in the current committee
substitute stipulates that licensed veterinarians and animal
control officers reporting such an offense would be held harmless
from reporting the event.
Co-Chair Kelly informed the Committee that a jury trial is required
in the imposition of community service as a form of punishment.
Senator Austerman "moved House Bill 489 out of Committee with
individual recommendations and the accompanying notes."
There was no objection and CS HB 489 (JUD) MOVED from Committee
with indeterminate fiscal notes, #1 from the Department of
Corrections, and #2 from the Department of Law.
AT EASE 9:29 PM / 9:37 PM
Co-Chair Kelly announced bond bills would not be heard tonight.
AT EASE 9:38 PM / 9:38 PM
HOUSE JOINT RESOLUTION NO. 35 am
Relating to urging the United States Congress to amend the tax
code to permanently repeal the estate tax.
This was the first hearing for this resolution in the Senate
Finance Committee.
HEATH HILYARD, Staff to Representative James testified this
legislation is similar in "wording and intent" to HJR 34,
introduced by Representative Coghill during the Twenty-First Alaska
State Legislature. Mr. Hilyard shared that Representative James
chose to revisit this issued based on the 2001 action of President
George W. Bush signing into law, a tax relief act that includes a
temporary repeal of the "death tax". Mr. Hilyard noted that repeal
expires in September 2010.
Mr. Hilyard referenced the sponsor statement [copy on file], which
includes a timeline that demonstrates a graduated decline in tax
rates and the increasing exemption levels as a result of the 2001
federal law. He pointed out Alaska currently has an estate tax, AS
43.31, and that the tax rates are calculated as a portion of the
federal tax rate. He cited the State's Department of Revenue in
remarking that regardless of whether the federal repeal become
permanent, the temporary repeal would eliminate revenue to the
State from this source by FY 06.
Mr. Hilyard read from a statement in support of this legislation
submitted by the National Federation of Independent Business
(NFIB)/Alaska, "In addition to the tax itself, thousands of small
businesses are impacted each year by expensive fees paid to
attorneys, accountants, and life insurers necessary to prepare for
eventual death tax debt." He furthered that efforts to repeal the
estate tax are also supported by the National Black Chamber of
Commerce, the National Association of Women Business Owners, and
the National Congress of the American Indians, among others.
Mr. Hilyard remarked that the death tax affects disproportionate
demographic groups and "does not justify its own existence from a
fiscal perspective" because collection expenses are higher than
revenue generated.
Mr. Hilyard informed that Representative James' office has been "in
regular contact" with White House staff regarding the progress of
this resolution. Mr. Hilyard stated "the President is continually
seeking the support and efforts of individual legislators and state
legislatures as a whole for his tax relief efforts," according to
the director of the White House Office of Intergovernmental
Affairs.
Mr. Hilyard concluded with a recent quote from President Bush, "We
must make the repeal of this death tax permanent. I call upon
Congress to do this immediately."
Co-Chair Donley noted the fiscal note states this resolution would
have no impact on spending and asked why it does not reflect a loss
of revenue.
Mr. Hilyard responded that the federal law went into effect in 2001
and that the revenue decline would be realized in 2002. He
emphasized that regardless of the passage of this resolution;
revenue from an estate tax would be eliminated under current State
law, as it is based on federal tax rates. He qualified that
statutes could be amended to impose fees independently from the
federal tax rates, in which case revenues could continue to be
collected.
Senator Olson asked if any party was actively opposing this
resolution.
Mr. Hilyard was unaware of any opposition and stated he "did a fair
amount of research" attempting to locate any such parties.
Co-Chair Donley listed "a few thousand economists, the AFL-CIO
labor organization…there's a lot of opposition to it."
Senator Green "moved HJR 35 out of Committee with individual
recommendations and accompanying zero fiscal note."
There was no objection and HJR 35 am, with zero fiscal note #1 from
the Legislative Affairs Agency, MOVED from Committee.
SENATE CS FOR CS FOR HOUSE BILL NO. 27(JUD)
"An Act relating to the registration of individuals who
perform home inspections; relating to regulation of
contractors; relating to registration fees for specialty
contractors, home inspectors, and associate home inspectors;
relating to home inspection requirements for residential loans
purchased or approved by the Alaska Housing Finance
Corporation; relating to civil actions by and against home
inspectors and to civil actions arising from residential unit
inspections; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE NORM ROKEBERG, sponsor, testified to his four years
of effort on this matter. He explained this legislation would
regulate home inspectors, which Alaska currently does not regulate.
He noted "every other aspect" of home sales are regulated. He spoke
to the importance of this legislation to consumers, pointing out,
"anybody can go out and call himself a home inspector now; and
that's not good and that's not right."
Representative Rokeberg stated the legislation is lengthy because
of the necessary changes to the specialty contractor license
statutes. He noted this legislation imposes a $250 biannual license
fee, which he stated is less than would be required if a regulatory
board were established.
Senator Wilken relayed his experiences involving two "bad" home
inspectors.
Senator Wilken "moved to report House Bill 27 from Committee with
individual recommendations and attached fiscal notes."
Senator Olson objected to ask about the impact of this legislation
on inspections of homes in Rural Alaska.
Representative Rokeberg replied that currently home sales financed
by the Alaska Housing Finance Corporation (AHFC) must obtain an
inspection by an International Brotherhood of Electrical Workers
(IBEW) member home inspector. He noted that at the request of
AHFC, this practice would continue under the provisions in this
legislation. However, he pointed out, the current statutory
immunity from lawsuits, is removed for these inspectors.
Senator Olson asked how a rural homeowner or homebuyer obtains a
home inspection.
Representative Rokeberg responded that if a home inspector does not
reside in the area, a home inspector from another area could be
retained. He noted several hundred home inspectors operate in the
State and that many reside in smaller communities.
Senator Olson next asked about inspections of homes financed by
regional housing authorities and not through the AHFC.
Representative Rokeberg explained there is no statutory required
that a home inspection be conducted in the sale of a home. Rather,
he stated, lenders require the majority of home inspections.
Therefore, he assured, this legislation would have no impact on
regional housing authorities' activities.
Senator Olson removed his objection to the motion to report this
bill from Committee.
Without objection CS HB 27 (FIN) MOVED from Committee with zero
fiscal note #5 from the Department of Revenue, and $64,500 fiscal
note #6 from the Department of Community and Economic Development.
CS FOR HOUSE BILL NO. 498(FIN) am
"An Act expressing legislative intent regarding privately
operated correctional facility space and services; relating to
the development and financing of privately operated
correctional facility space and services; authorizing the
Department of Corrections to enter into an agreement for the
confinement and care of prisoners in privately operated
correctional facility space in the City of Whittier; giving
notice of and approving the entry into and the issuance of
certificates of participation for the upgrade, expansion, and
replacement of a certain correctional facility in the City of
Bethel; giving notice of and approving the entry into lease-
financing agreements for that project; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
JOHN MANLEY, Staff to Representative Harris, testified that
Representative Harris has been acting as the lead proponent of this
legislation in the House Finance Committee because the facility
would be located in his district. Mr. Manley read a statement into
the record as follows.
This bill authorizes construction of a government-owned and
privately managed one-thousand bed prison at Whittier and a
96-bed expansion of the Yukon-Kuskokwim Correctional Center in
Bethel. That was the Governor's number one priority in his
bill.
For the past eight years, we have sent thousands of prisoners
and millions of dollars to Arizona, displacing Alaska jobs and
losing economic benefit of spending those dollars in Alaska.
Our eight-year experience with private prison services in
Arizona has been a tremendous success and there's no reason we
cannot duplicate the success in Alaska.
As you're aware, we have tried this private prison concept in
South Anchorage, Delta Junction, and last year in Kenai. The
difference this year is we have a community that's done its
homework and wants the project. In over 12 hours of testimony
before the House and Senate, not a single resident of Whittier
has testified against the prison. Eighty percent of the
registered voters have actually signed a petition urging the
City [of Whittier] to move forward on the project.
As you know, Whittier is only 50 miles by highway from
Anchorage-approximately the same commuting distance as the
Mat-Su Valley. Whittier's proximity to Anchorage goods,
services and human resources, as well as its deep-water port,
and abundant utility infrastructure, makes the site both cost
effective and feasible.
This bill will create over 325 union construction jobs, 228
temporary indirect construction jobs, 225 permanent prison and
jail jobs, and over 200 permanent indirect jobs. At least
that's what we're estimating.
Mr. Manley referenced a handout that lists the comparative capital
and operating costs of the Governor's statewide expansion plan to
the Whittier facility plan [Copy on file.] He continued reading his
statement.
This bill will allow prisoners to return home from Arizona to
a prison that is situated near the program resources necessary
for effective rehabilitation and to provide relief to regional
jails by allowing sentenced felons to be transferred out of
regional jail beds.
AT EASE 9:52 PM / 10:00 PM
Senator Green indicated she had a concern with this legislation and
requested the bill be held until the following day to allow her an
opportunity for further consideration.
Senator Ward "moved Committee Substitute House Bill number 498…"
Co-Chair Kelly interrupted, noting that a witness was present and
waiting to testify.
Senator Ward continued, "…I hate to do that, but I do move
Committee Substitute House Bill number 498 Finance amended out of
Committee with individual recommendations and accompanying notes."
Senator Hoffman objected.
MARGO KNUTH, Commissioner, Department of Corrections, testified to
the concerns of the Administration regarding this legislation. She
pointed out this bill proposes the construction of a private prison
that would entail a 25-year contract for 1,000 beds at a cost of
$32 million annually. She stressed that this bill "targets one
portion of our population-the need for prison beds," but leaves
unmet the regional need for jail beds and community jail beds. She
therefore, remarked that this legislation does not provide an
economical proposal. She explained that 100 bed expansions would be
necessary for both the Fairbanks facility and the Mat-Su Pre-Trial
facility, and additional expansions would also be needed in other
locations to create beds to house inmates awaiting trial and
inmates serving short sentences. She noted it is not economical to
transport prisoners from remote areas to a centralized location.
Ms. Knuth asserted the process of gaining approval for the proposed
facility has not been open and competitive as established in the
State's procurement code. She suggested a cost-based competitive
process is integral to insuring that the State is receiving "the
most bang for its buck."
Ms. Knuth spoke to concerns of establishing Whittier as the
location of a private prison facility. She informed that the local
population is approximately 190 people and that the community lacks
the proper infrastructure to operate a 1,000-bed prison. She listed
fire protection, police protection, utility services, secondary
employment, housing for employees and families, as some of the
infrastructure necessary.
Ms. Knuth remarked that the Governor's proposed "regional approach"
legislation and other legislation sponsored by Senator Green are in
the better interest of the State of Alaska.
AT EASE 10:05 PM / 10:15 PM
DEE HUBBARD, Resident of Sterling, testified via teleconference
from an off-net site in Sterling about her efforts to place a
question before Kenai area voters as to whether the residents would
support a private prison facility in that community. She pointed
out the voters in the Kenai election rejected such a proposal, as
have voters in Wrangell in a separate election.
Ms. Hubbard surmised that Cornell Corrections of Alaska, Inc. "went
shopping" for a community to support the construction of a private
prison facility for the company to operate. She pointed out the
absence of a significant competitive bidding process and detailed a
letter sent by the company to the City of Whittier, which the City
utilized almost verbatim in an ordinance adopted on November 5,
2001. She continued describing other events demonstrating that a
competitive bidding process has not been employed.
Ms. Hubbard warned of the economical costs to the State as a result
of a binding contract with Cornell Corrections whereby the State
would be obligated to pay the company for beds not housing State
prisoners. She furthered that the company could transfer inmates
from other states to fill these empty beds and thus collect
additional fees.
FRANK SMITH testified via teleconference from an off-net site in
the State of Kansas that he has followed this legislation as it has
progressed through the Legislature. He was troubled because
"practically half the statements" made by proponents of a private
prison in Alaska, "have been nonfactual." He reiterated that the
process has not been competitive and indicated he has obtained many
documents proving this. He noted a competitor of Cornell has
offered to construct the same facility for $17 million less than
the amount Cornell proposes.
Mr. Smith remarked that the City of Whittier is a poor location for
any type of prison as it is "unstaffable" and the infrastructure is
"dismal" as there are no sewer facilities. He furthered that the
facility would be built next to a tank farm, thus raising
environmental concerns.
Mr. Smith referenced a front-page article in the Wall Street
Journal detailing the "troubled recent history" of Cornell
Corrections [copy not provided].
Mr. Smith surmised the only reason the Legislature is considering
this bill is because of campaign contributions received by a few
legislators.
Co-Chair Kelly interjected that it is inappropriate to testify
about campaign contributions.
Mr. Smith apologized and spoke of prison riots due in part to
under-trained and low paid correctional officers, asserting that
the operations of Cornell Correctional of Alaska, Inc. is
"unprofessional".
SFC 02 # 98, Side B 10:24 PM
Mr. Smith urged the Committee to reject this legislation.
Senator Leman requested the witness' affiliation.
Mr. Smith replied he is a citizen activist, an author of a recently
written chapter on Native Americans in private prisons for a
Canadian publisher, as well as an opinion article in the Anchorage
Daily News and is involved in research and service provision in
criminal justice for 30 years, including running programs in the
Palmer Pre-Trial facility and the Sutton prison. He emphasized he
has no financial interest in the outcome of this legislation.
AT EASE 10:26 PM / 10:31 PM
RICHARD VAN HATTON, 16-year correctional officer for the State of
Alaska, and President, Correctional Officer Chapter of the Public
Safety Employees Association, testified via teleconference from an
off-net site that every public vote on this matter has been
defeated by a wide majority. He stated the City of Whittier is a
poor choice for such a facility as it would be unable to provide
security in the event it was needed.
Senator Ward called for the question on the motion to report the
bill from Committee.
Senator Green objected and pointed out the Committee has not
discussed the certificates of participation, the sole source
process, the actual costs of the project in addition to the amounts
indicated in the fiscal notes, as well as other concerns. She
remarked that a financial obligation of this magnitude warrants
further hearings.
Senator Olson noted that although he has heard testimony in
opposition to this bill from witnesses who do not live in Whittier.
He asked if a resident of Whittier could testify as to the adequate
infrastructure.
BEN BUTLER, Mayor, City of Whittier, testified in Juneau that the
infrastructure issue has been researched and it has been determined
that electrical power is available through a new power line
installed in the Whittier Tunnel. He informed that the City
currently utilizes 14 percent of available power and that the
prison facility would utilize half the total available power. He
continued that natural gas is now supplied to the community and
ample water is available. He said no new roads would be
constructed, thus road maintenance costs would not increase. He
pointed out that septic treatment would be conducted on site and
that these expenses are included in the proposed costs of the
facility. He expressed, "we have a pretty good fire department in
Whittier," noting state of the art fire equipment is stationed at
the Whittier Tunnel and that an emergency plan would be employed by
the prison facility.
Mr. Butler detailed the process whereby the city government issued
a request for proposals (RFP) on a private facility to be located
in Whittier after the ballot initiative for such a facility in the
Kenai area failed. He asserted that this process was deemed by
legal advisors to be comparable to State-issued RFPs.
Mr. Butler emphasized that no Whittier residents have voiced
opposition to this legislation. He stated the intent to add value
to the State from the Whittier Tunnel by diversifying the economy
in Whittier.
Senator Wilken was concerned with large fiscal note and the legal
opinion issued by the Division of Legal and Research Services. He
questioned the construction of a 1,000-bed prison in a community of
190 residents.
A roll call was taken on the motion to report the bill from
Committee.
IN FAVOR: Senator Ward, Senator Austerman, Senator Hoffman, Senator
Leman, Co-Chair Donley and Co-Chair Kelly
OPPOSED: Senator Olson, Senator Wilken, and Senator Green
The motion PASSED (6-3)
CS HB 498 (FIN) am MOVED from Committee with $165,500 fiscal note
#3 from the Department of Corrections and zero fiscal note #4 from
the Department of Revenue.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 10:42 PM.
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