Legislature(2003 - 2004)
04/29/2004 09:05 AM 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
April 29, 2004
9:05 AM
TAPES
SFC-04 # 100, Side A
SFC 04 # 100, Side B
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately 9:05 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Donny Olson
Senator Ben Stevens
Senator Lyman Hoffman
Also Attending: SENATOR KIM ELTON; SENATOR GRETCHEN GUESS; GREG
PEASE, Executive Director, Gastineau Human Services; JERRY BURNETT,
Director, Administrative Services, Department of Corrections; MARC
ANTRIM, Commissioner, Department of Corrections; MYRA PUGH, Staff
to Senator Bettye Davis; RICHARD BENAVIDES, Staff to Senator Bettye
Davis; NANCY WELCH, Special Assistant to Commissioner Tom Irwin,
Department of Natural Resources; SHARON BARTON, Director, Permanent
Fund Dividend Division, Department of Revenue
Attending via Teleconference: From Offnet Sites: FRANK SMITH,
Independent Criminal Justice Researcher; DANA BROWN, Certified
Direct Entry Midwife and Director, Alaska Family Health & Birth
Clinic; ELISE HSIEH, Assistant Attorney General, Environmental
Section, Civil Division (Anchorage), Department of Law; BOB
LOEFFLER, Director, Division of Mining, Land and Water, Department
of Natural Resources; From Anchorage: SHELBY LARSEN, Administrator,
Certification & Licensing, Division of Public Health, Department of
Health and Social Services
SUMMARY INFORMATION
SB 313-FIRST SUPPLEMENTAL APPROPRIATION
The Committee adopted one amendment and reported the bill from
Committee.
SB 65-CORRECTIONAL FACILITY EXPANSION
The Committee heard from the bill's sponsor, the Department of
Corrections, and took public testimony. One amendment was adopted
and the bill reported from Committee.
SB 349-MIDWIFERY BIRTH CENTER LICENSING
The Committee heard from the bill's sponsor, the Department of
Health and Social Services, and took public testimony. The bill
reported from Committee.
SB 393-TAKE PERM FUND DIVIDEND FOR UNIV FEES
The Committee adopted a committee substitute and reported the bill
from Committee.
SB 282-PREPARED FOOD: WILD/FARMED FISH DISCLOSURE
The Committee heard from the bill's sponsor and the Department of
Law. The bill was held in Committee.
HB 486-MINING RECLAMATION ASSURANCES/FUND
The Committee heard from the Department of Natural Resources and
reported the bill from Committee.
SB 284-PF DIVIDEND APPLICATION RECORDS PRIVATE
The Committee heard from the bill'6s sponsor and the Department of
Revenue. A committee substitute was adopted and the bill was held
in Committee.
SB 393-TAKE PERM FUND DIVIDEND FOR UNIV FEES
This bill was scheduled but not heard.
SENATE BILL NO. 313
"An Act making supplemental and other appropriations; amending
appropriations; making an appropriation to capitalize a fund;
and providing for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Green reminded the Committee that during the previous
hearing on this bill, the discussion focused on the Department of
Natural Resources' and the Department of Revenue's involvement in
the endeavor to further a natural gas pipeline.
Amendment #5: This amendment inserts a new subsection into Section
14. DEPARTMENT OF NATURAL RESOURCES, page 20, line 11 as follows.
( ) The sum of $1,580,000 is appropriated from the
general fund to the Department of Natural Resources for risk
analysis related to the state gas pipeline and to bringing
North Slope natural gas to market.
( ) The sum of $3,900,000 is appropriated from the
general fund to the Department of Natural Resources for
permitting and application processing related to the state gas
pipeline right-of-way work related to bringing North Slope
natural gas to market.
In addition a new subsection is added to Sec. 16. DEPARTMENT OF
REVENUE, page 21, line 11 as follows.
( ) The sum of $3,400,000 is appropriated to the
Department of Revenue for work related to bringing North Slope
natural gas to market from the following sources:
General fund $2,400,000
Statutory designated
Program receipts 1,000,000
( ) The sum of $1,700,000 is appropriated to the
Department of Revenue for work related to bringing North Slope
natural gas to market from the following sources:
General fund $1,200,000
Statutory designated
Program receipts 500,000
For further clarification, the following language is included in
the amendment.
All the subsections added by this amendment are for capital
projects and lapse under AS 37.25.020.
The second subsection for the Department of Natural Resources,
totaling $3,900,000, is effective July 1, 2004.
The second subsection for the Department of Natural Resources,
totaling $1,700,000, is effective July 1, 2004.
Co-Chair Green moved to adopt Amendment #5.
Co-Chair Wilken objected for explanation.
Co-Chair Green explained that these funds would support the
Departments' involvement in the gas line endeavor. Adoption of the
amendment would oblige Governor Frank Murkowski's request "to move
forward" in furthering the gas pipeline project.
Co-Chair Wilken removed his objection.
There being no further objection, Amendment #5 was ADOPTED.
Co-Chair Wilken asked that the Legislative Legal and Research
Services Division be allowed to make technical changes to SB 313 as
deemed necessary.
There being no objection, the request was approved.
Co-Chair Green explained that, to date, $13 million of a total $15
million General Fund (GF) supplemental budget allowance that was
included in the FY 2004 budget, has been allocated. In prior years,
the supplemental appropriation request has been as much as $71
million. Tremendous effort has been undertaken regarding "what
truly needs to be included and what truly is important" in
determining the supplemental request amount that should be included
in the appropriation budget. She voiced appreciation to State
departments for the consideration given to the budgeting process,
the amendments to the supplemental budget, and the supplemental
requests that have been submitted.
Co-Chair Green reviewed the projects that have been added to the
bill thought the adoptions of Amendments #1 through #5.
Senator Bunde commented that, even though he did not object to
Amendment #5, he has concerns regarding the $10.5 million
expenditure. He acknowledged that the excitement of developing a
gas pipeline is a factor in the allowance of this request. However,
he declared that were other departments to submit "generalities" as
the Department of Natural Resources has, the Committee "would have
been very critical" and would have demanded more detail. While
other Departments "have been asked to be lean and mean and to do
more with less," the Committee has been incredibly flexible and
generous due to the nature of the request. In conclusion, he voiced
the "hope that our hopes are not misguided."
Co-Chair Green, noting that Senator Bunde had chaired the
Department of Natural Resources budget subcommittee, commented that
the overall Department budget is "lean and mean." It could be
argued that the State could never do enough in its endeavor to
develop its natural resources; and in that regard, the Department's
budget has been "on the shy side" in recent years. The Department
has stressed that it would attempt to generate revenue, would seek
matching funds, and would use these funds in the best manner
possible. She wished the Department success in its efforts to
further the gas pipeline project.
Senator Bunde agreed that the rest of Department's budget is lean
and mean; however, he argued that the addition of the gas pipeline
project funding would "dissipate" that leanness. He quoted that
"bureaucracies' first goal is to maintain and expand itself." The
Department would find a manner through which to expend every dollar
that is provided to them.
Co-Chair Wilken expressed confidence that the funds provided to
support the gas pipeline endeavor would be fruitful; particularly
as he respects the ability of Steve Porter, Deputy Commissioner,
Department of Revenue, to utilize his private sector experience to
further this endeavor.
Senator Olson voiced that it might be unrealistic for the
Departments to expend in excess of five million dollars on this
project before the end of the FY 04 fiscal year in approximately 60
days.
Co-Chair Green reminded the Committee of the Departments' testimony
regarding the "time-sensitive" nature of the work relating to this
request.
Senator Olson voiced surprise that the Departments could spend
approximately three million dollars a month in this endeavor.
Senator Dyson shared Co-Chair Wilken's confidence that the
Departments' project management team would be very "responsible in
their stewardship" of this endeavor. He compared the endeavor of
negotiating with the oil industry on this project to being a player
"in the world's biggest poker game," in that it requires a
tremendous amount of funds to play and that the rewards, while not
guaranteed, "are worth the risk." He expressed that the State has
reached a "critical juncture, and that opportunities such as this
are rare and should not be missed.
Senator Hoffman pointed out that the backup material specifies that
several of the natural gas pipeline projects must be funded beyond
the end of the FY 04 fiscal year.
Co-Chair Green pointed out that the explanatory comments attached
to Amendment #5 specify that $1.7 million of the Department of
Revenue and $3.9 million of the Department of Natural Resources
total requests would become available on July 1, 2004.
Senator Hoffman observed that similar differential funding
explanatory language is included in Amendment #4 for the Department
of Law.
Co-Chair Green concurred
Senator Dyson reminded that the Senate Resources Committee has on
contract, an internationally renowned resource professional who has
independently endorsed the Legislature's actions in this endeavor.
Senator Hoffman asked the total amount of general funds, federal
funds, and other funds, including funds provided by Amendments #1
through #5 that would be appropriated in this supplemental bill.
Co-Chair Green stated that this information would be provided.
AT EASE: 9:20 AM / 9:21 AM
Co-Chair Wilken moved to report SB 313, as amended, from Committee
with individual recommendations and accompanying fiscal note.
[NOTE: Due to technical difficulties, the following exchange was
not recorded.]
Senator Hoffman commented that this bill is an appropriation bill
and as such has no accompanying fiscal note.
Co-Chair Wilken acknowledged, and corrected his motion.
AT EASE 9:21 AM / 9:22 AM
[NOTE: Recording resumes.]
Co-Chair Green commented, for the record, that there has been
concern regarding payments for current and forthcoming long-term
health care. The Department of Health and Social Services is
attempting to rectify the situation in a manner that would incur
the least negative impact on individuals. This bill contains
authorization language that is required in order to release federal
funds that are available. This concern is the result of "a delay in
the payment" to certain vendors as opposed to "a non-payment"
scenario.
Senator Hoffman stated that a recent Anchorage Daily News newspaper
article alluded that these funds were being withheld by the
Legislative minority, as a negotiation tool. He declared, for the
record, that he has not been involved in any such tactics in this
regard.
Co-Chair Green furthered declared that none of the Committee's
members have participated in efforts in this regard.
There being no objection to the motion, CS SB 313(FIN) was REPORTED
from Committee.
[NOTE: Co-Chair Wilken chaired the remainder of the meeting.]
Co-Chair Wilken informed the Committee that the Constitutional
Budget Reserve (CBR) fund balance at the beginning of the FY 04
fiscal year was $2.07 billion, and, according to a recent
Legislative Finance Division projection, the balance on June 30,
2004 should be $2.4 billion. The increase is due to such things as
a recovering stock market.
SENATE BILL NO. 65
"An Act authorizing the Department of Corrections to enter
into agreements with municipalities for new or expanded public
correctional facilities in the Fairbanks North Star Borough,
the Matanuska-Susitna Borough, Bethel, and the Municipality of
Anchorage."
This was the sixth hearing for this bill in the Senate Finance
Committee.
Amendment #7: This amendment replaces the words "a minimum of 25-
years" with "a term not to exceed 25-years" in Section 5, page
four, line three, of the Version 23-LS0392\E committee substitute.
Co-Chair Green moved to adopt Amendment #7. This "technical"
amendment would address the leasing of correctional facility space.
There being no objection, Amendment #7 was ADOPTED.
Co-Chair Wilken noted that Co-Chair Green has provided a sectional
analysis [copy on file] for the Version "E" committee substitute
that was previously adopted by the Committee.
GREG PEASE, Executive Director, Gastineau Human Services and Board
Member representing the States of Washington, Oregon, Idaho,
Alaska, and Montana on the American Probation and Parole
Association, shared with the Committee "the importance of programs
that assist offenders, victims and communities, and community
assets" treatment and support groups; specifically faith-based
community initiatives that assist in re-entering violent offenders
back into the community. He noted that when contemplating
legislation such as this bill that addresses the expansion of
correctional facilities, it should be noted that current State
Statutes require that six months prior to an inmate's release date,
that individual should attend a community residential center that
would assist them in reentering a community. He urged that this
requirement be continued "if not expanded." He supported
incarcerating people in the State as opposed to outside of the
State facilities as it would allow them to be closer to their
families and support groups. Therefore, he urged the Committee to
be aware that, in addition to housing needs, program needs must be
provided for.
Mr. Pease also asked members to question the reason why so many
individuals are being incarcerated "to begin with." He noted that,
in this State, the majority of those incarcerated are Alaska
Natives. More importantly, he urged the Members to consider what
happens to inmates upon their release from jail. He expressed that
the United States has experienced "a prison/jail building boon"
which, he stated must be recognized as providing "short-term,
temporary low-income housing for, primarily, mental health
beneficiaries in this State." He pointed out that the majority of
the individuals serving time in State prisons and jails are
probation and parole violators.
Senator Dyson questioned the relevance of Mr. Pease's comments to
this bill.
Mr. Pease expressed that while this bill would provide more jail
facilities, it does not address the aftermath faced by those
incarcerated once they are released from prison. Other than
providing a big building, this legislation does not provide a
support system to assist individuals re-entering society. Absent
this focus, he attested, a cycle of re-offending would evolve. This
in turn would require more facilities to be available.
Senator Dyson ascertained; therefore, that the testifier is not
speaking in opposition to the bill, but is rather speaking to the
fact that this legislation only addresses a portion of the problem.
Mr. Pease commented that the number of incarcerated parole and
probation re-offenders is a testament that the State does not have
a proven success rate in keeping people from re-offending. In
addition to the money being expended to construct a prison
facility, funding must be included to support the Therapeutic Court
and other mandatory programs.
Senator Dyson understood therefore, that the testifier is not
against the bill.
Senator Bunde asked for clarification that the testifier is not
implying that people have been incarcerated without committing a
crime.
Mr. Pease responded no, the intent of his testimony is to highlight
the need to provide assistance to people while they are
incarcerated that would assist them upon their release.
Co-Chair Green, the bill's sponsor, informed the Committee that, at
her request, the Department of Corrections would be testifying to
provide expertise regarding the technical aspects of the bill. The
testimony would be provided in a neutral manner.
Co-Chair Wilken acknowledged Co-Chair Green's comments and
specified that, were the Department uncomfortable with a question,
Co-Chair Green would address it.
JERRY BURNETT, Director, Administrative Services, Department of
Corrections, read information from the aforementioned Sectional
Analysis of the Version "E" committee substitute as follows.
Sections 1, Section 2, and Section 3. Requires correctional
officers, parole officers, and probation officers working in
all correctional facilities in the State of Alaska to have a
valid certificate issued by the Alaska Police Standards
Council.
Section 4. Authorizes the Department of Corrections (not later
than July 1, 2009) to enter into agreements with the Fairbanks
North Star Borough, the Matanuska-Susitna Borough, Bethel,
Municipality of Anchorage and city of Seward for new or
expanded correctional facilities. The authorization is subject
to 5 conditions.
(1) Average capital cost per bed may not exceed $135,000 in
the Fairbanks North Star Borough (up to 80 beds),
Matanuska-Susitna Borough (1,200 to 2,251 beds),
Municipality of Anchorage (up to 200 beds) and City of
Seward (up to 144 beds); and must not exceed $155,000 a
bed for Bethel. These costs are adjusted for inflation.
(2) For new facility construction, the municipality will own
the facility and the state will operated the facility.
The state will lease the facility for a term of not more
than 25 years with annual lease payment not exceeding
$11,600 a bed. (Similar to Anchorage Jail and Spring
Creek Correctional Center in Seward)
(3) For expansion of existing facilities, there will be a
joint ownership agreement between the municipality and
the state and the state will operate the facility. The
state will lease for not more than 25 years and payments
may not exceed $16,700 a bed for the Bethel facility and
$14,600 a bed fro the Fairbanks, Anchorage and Seward
facilities. The state will own these facilities, so will
own the newly expanded parts as well).
(4) Lease agreements must allow the Commissioner of
Corrections to terminate the contract for cause.
(5) The Commissioner may not enter into an agreement if bonds
issued for the new or expanded facilities are below
investment grade. (Investment grade is a term of art that
means single A or better - see Alaska Permanent Fund
Statute: Investment responsibilities of the board AS
37.13.120(g)(7)
Further, expansion of the Anchorage jail may only occur if it
is funded by up to $30,000,000 in federal receipts.
Co-Chair Wilken asked for further information regarding the single
"A" bonding requirement.
Mr. Burnett stated that the language in Section 4, subsection (5)
indicates that a test regarding the bonding capacity of the bonding
community and the State must be considered, as the bonds would be
State debt under the aforementioned definition.
MARC ANTRIM, Commissioner, Department of Corrections, noted that
this language addresses one area of concern raised by the
Department of Corrections.
Mr. Burnett referred the Committee to the "CSSB 65 Version E Cost
Comparison" chart attached to the aforementioned Sectional
Analysis, that specifies that the total cost of expanding the
Fairbanks Correctional Facility by 80-beds would amount to
$10,800,000. To provide two additional security guards per shift,
11 new positions would be required. The City of Fairbanks' annual
lease debt service would equate to $1,076,000, the annual operating
expenses would be $1,329,200. Thus, the total annual cost would
amount to $2,405,200.
Co-Chair Wilken understood therefore that the total bond package
required to expand the Fairbanks correctional facility by up to 80-
beds would be $10,800,000, based on a per bed maximum expense of
$135,000. The State could not enter into a lease agreement
exceeding 25 years nor exceed an inflation adjusted amount of
$1,076,000 per year. Operating costs of $1,329,200 per year would
be borne by the State, and, at the end of those 25 years, the State
would own the expanded facility.
Mr. Burnett clarified that the aforementioned expansion expenses
would be in affect were a 15-year lease in place. Annual costs
would be lower were a 25-year lease in place.
Co-Chair Wilken understood therefore that an annual revenue stream
of $1,076,000 would be required to support bonds based on a 15-year
lease.
Mr. Burnett agreed that this would be the amount required to
support "the pass through lease cost net."
Senator Hoffman asked for confirmation that the "Annual Capital
Costs (lease debt service)" column on the chart depicts a 15-year
lease amount.
Mr. Burnett affirmed.
Mr. Burnett stated that the Department's fiscal note was calculated
based upon this Cost Comparison chart.
Mr. Burnett read the City of Whittier correctional facility
information, as depicted in Section 5 of the Sectional Analysis, as
follows.
Section 5. Authorizes the Department of Corrections (not later
than July 1, 2006) to enter into an agreement with the City of
Whittier to acquire correctional facility space for at least
25 years and facility operational services for not more than
five years. Before entering into a contract, Department of
Corrections and Administration must conduct a feasibility
study to determine whether the state can provide these
services for the same or less cost than a third-party
operator. An agreement with the City of Whittier cannot be
made unless the state cannot provide these services for the
same or less cost.
Further, an agreement between the state and the City of
Whittier requires an agreement between the City of Whittier
and a 3rd party contractor to construct and operate the
facility. The agreement between the City of Whittier and the
3rd party contractor must be based on a competitive bid
process. The City of Whittier must follow state procurement
procedures. The Commissioner of correction also must approve
the facility design before the agreement.
Authorization for the agreement is subject to 5 further
conditions:
(1) Must be a minimum of 1200 beds and a maximum of 2251 beds
and payments by DOC must be sufficient to cover all
capital and operating costs, not including inmate
transportation.
(2) The obligation of DOC to make payments is subject to
annual appropriation of funds by the legislature.
(3) The Commissioner of corrections retains the authority to
terminate the contract with the third party.
(4) The contract between the City of Whittier and the third
party must require culturally relevant reformation
services to incarcerated Alaska Native offenders.
(5) No agreement can be made if the bonds issue are rated
below investment grade (Single A or lower)
The City of Whittier may issue bonds to finance construction
of the facility.
Mr. Burnett reminded the Committee that the adoption of Amendment
#7 changed the lease agreement with Whittier to a term not to
exceed 25 years.
Co-Chair Wilken inquired the reason this agreement is specific to
the City of Whittier.
Co-Chair Green explained that this bill evolved as several
different pieces of legislation regarding prison issues were
consolidated.
Co-Chair Wilken asked that further discussion be held until after
Mr. Burnett concludes his review of the sectional analysis.
Mr. Burnett read the sectional analysis pertaining to Sections 6
and 7 as follows.
Section 6. Authorizes the state bond committee to issue
certificates of participation to provide state matching funds
to assist with the cost of construction of community jail
facilities in Kodiak and Dillingham ($4 million for both). The
annual rental obligations for the certificates ($400,000) will
be paid by the state on an annual basis. The total estimated
cost to the state to pay off the certificates is $6 million
(the estimate includes total payments, credit enhancement and
underwriting expenses, rating agency fees, bond counsel fees,
financial advisor fees, printing fees, trustee fees,
advertising fees, capitalized interest, interest earnings, and
other costs of issuance and required reserves). The state bond
committee may not authorize the issuance of certificates of
participation if the issuance lowers the state's credit and
the certificates are rated below investment grade.
Section 7. Approves community jail facilities to receive
proceeds of the certificates of participation authorized under
sec. 6 if the community is able to provide their share of the
matching funds ($1.5 million each) to be used for the upgrade,
expansion, or replacement of the jail facilities at Dillingham
Community Jail and Kodiak Community Jail. Subject to
appropriation, the Department of Corrections is authorized to
pay the annual operating costs associated with the addition of
new beds at those two facilities.
Mr. Burnett noted that the aforementioned chart depicts the
projected State debt service and increased operational costs
associated with expanding the Kodiak Jail by six beds and the
Dillingham Jail by 17 beds.
Mr. Burnett read the final portions of the sectional analysis.
Section 8. Provides notice and approval of the projects
described in sec. 6.
Section 9. Repeals existing statute.
Section 10. Provides an effective date of July 1, 2004.
Co-Chair Wilken ordered the bill HELD in Committee.
[NOTE: This bill was readdressed immediately following the 9:53 AM
recess.]
RECESS 9:53 AM / 2:59 PM
SENATE BILL NO. 65
"An Act authorizing the Department of Corrections to enter
into agreements with municipalities for new or expanded public
correctional facilities in the Fairbanks North Star Borough,
the Matanuska-Susitna Borough, Bethel, and the Municipality of
Anchorage."
Co-Chair Wilken announced that the bill is again before the
Committee. The sectional analysis review was completed during the
earlier hearing on the bill.
SFC 04 # 100, Side B 03:00 PM
FRANK SMITH, Independent Criminal Justice Researcher, testified via
teleconference from an offnet site to share comments based upon his
33-year experience in pre-and-post-prison releases and research
pertaining to the development of alternative programs in this
regard. For the past eight years, an area of focus has been the
development of private prisons. He voiced being pleased with some
of the inclusions in the committee substitute, specifically those
that would require guards and other employees to meet standards.
Several states are addressing similar issues. Continuing, he
stressed the importance of conducting an economic feasibility study
prior to furthering the construction of the Whittier prison, as
when a similarly remote site in Kansas was being considered for a
prison, a study was conducted. The study determined that the
facility would have been "impossible to staff." He anticipated that
a prison in Whittier would also have staffing issues. He recalled
that a study [copy not provided] that was conducted regarding the
construction of a prison in the Delta Junction area determined that
it would be impossible to make a profit at that location.
There being no further testifiers, Co-Chair Wilken announced that
public testimony on the bill was concluded.
Co-Chair Wilken stated, for the record, that he could not support
establishing a prison in Whittier, as it would place a strain on
the community, its schools and its utilities system. Furthermore,
as the City of Whittier's school system is a Rural Education
Attendance Area (REAA), it receives no local funding. Therefore, he
could not support construction of a prison facility in the
community until the City could absorb its school responsibility, as
other communities are required to do.
Co-Chair Green moved to report the bill, as amended, from Committee
with individual recommendations and accompanying fiscal notes.
There being no objection, CS SB 65 (FIN) was REPORTED from
Committee with a new $260,000 fiscal note, dated April 29, 2004
from the Department of Corrections.
SENATE BILL NO. 349
"An Act requiring licensure of midwifery birth centers; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill would establish a single
licensing standard for birthing centers in the State. He noted that
of the six birthing centers in the State, five are registered and
one is licensed.
MYRA PUGH, Staff to Senator Bettye Davis, the sponsor of the bill,
stated that the owners of the six birthing centers in the State
support the implementation of a single State licensing standard for
birthing centers as it would result in a single set of regulations
and annual facility inspections are in place. She noted that
through a collaborative effort, birth center owners reworked the
State's existing licensed birth center regulations that have been
in place since 1983 and submitted their recommendations to the
rewriting regulation process. Midwifes of Alaska support this
legislation and urge the Committee to do likewise.
RICHARD BENAVIDES, Staff to Senator Bettye Davis, referred the
Committee to the letter [copy on file] to Legislators, dated March
12, 2004, from Kay Kanne, Director of the Juneau Family Birth
Center. It explains the legislative history pertaining to
registered and licensed birth centers in the State.
DANA BROWN, Certified Direct Entry Midwife and Director, Alaska
Family Health & Birth Clinic, testified via teleconference from an
offnet site in Fairbanks in support of the bill, as it would
establish a single standard and licensing process for birth centers
in the State.
SHELBY LARSEN, Administrator, Certification & Licensing, Division
of Public Health, Department of Health and Social Services,
testified via teleconference from Anchorage and stated that the
Department supports the bill as the consensus is that licensing
standards for this industry should be established.
Co-Chair Green moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, SB 349 was REPORTED from Committee with
$19,400 fiscal note #1, dated February 24, 2004, from the
Department of Health and Social Services.
SENATE BILL NO. 393
"An Act relating to default on tuition, fees, and other
charges of the University of Alaska and to claims on permanent
fund dividends for tuition, fees, and other charges of the
University of Alaska that are in default."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill would allow the University to
garnish an individual's Permanent Fund Dividend (PFD) for tuition
and other University of Alaska debts owed by an individual. A new
committee substitute has been developed to address concerns
regarding the ranking of the University's claims in regards to
other claims against one's PFD.
Co-Chair Green moved to adopt the Version 23-LS1945\D committee
substitute as the working document.
There being no objection, the Version "D" committee substitute was
adopted as the working document.
Co-Chair Wilken explained that the ranking concern is addressed in
Section 2, on page two beginning on line ten of the committee
substitute. The University is now ranked in sixth place rather than
in fourth place as originally presented. Both the University and
the Alaska Permanent Fund Corporation are agreeable to this change.
Co-Chair Green moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS SB 393 (FIN) was REPORTED from
Committee a new $100,000 fiscal note, dated April 28, 2004 from the
University of Alaska and a new $15,000 fiscal note, dated April 25,
2004 from the Department of Revenue.
AT EASE: 3:12 PM / 3:13 PM
CS FOR SENATE BILL NO. 282(RES)
"An Act relating to the identification of finfish in food
products and to the misbranding of food products consisting of
or containing finfish."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken noted that this bill would require retail
restaurants to specify on their menus whether the finfish being
offered for consumption were farmed or wild fish. He pointed out
that the Senate Resources version of the bill, Version 23-LS1213\Q,
is before the Committee for consideration.
SENATOR KIM ELTON, the bill's sponsor, stated that he is carrying
the legislation on behalf of the Joint Legislative Salmon Task
Force, which unanimously approved it. This bill would require
restaurant menus to specify whether the fish being served are wild
or farmed. Currently, grocery store labeling must include this
information. This bill would simply extend that concept to
restaurants. Consumer awareness and consumer choice are important
issues, especially given the fact that toxicity levels being found
in fish are being discussed in the scientific and popular arena.
Many people prefer to eat fish at restaurants as opposed to
preparing it at home, as they feel that a restaurant has more
expertise than they do in this regard.
Senator Elton stated that the Joint Legislative Salmon Task Force
is comprised of processors, Legislators, and public members. One
question that arose during the bill's Senate Resources Committee
hearing was in regards to the restaurant industry's reaction to the
legislation. Only one restaurant has voiced the concern that this
labeling would incur additional costs; however, he opined that
because most fish is served fresh in restaurants, the information
would be on the daily or fresh menu as opposed to a printed menu.
Co-Chair Green asked regarding definition language in Section 2,
subsection (b)(1) and (2) on page three, following line 23, in that
while the definition of farmed fish is detailed, the definition of
fish is limited. The language in question, reads as follows.
(1) "farmed fish" means fish that is propagated, farmed,
or cultivated in a facility that grows, farms, or cultivates
the fish in captivity or under positive control but that is
not a salmon hatchery that is owned by the state or that holds
a salmon hatchery permit under AS 16.10.400; in this
paragraph, "positive control" has the meaning given in AS
16.40.199;
(2) "fish" means finfish;
Senator Elton understood that finfish is defined elsewhere in State
Statute. Continuing, he communicated that one definition of
"finfish" are those fish that are not shellfish.
Co-Chair Green asked for further clarification.
Senator Elton noted that, "for the purposes of this legislation,
fish is finfish and not shellfish."
Co-Chair Green asked whether the fish being referenced in Section
2, subsection (b)(2), on page three, line 30 is defined in current
State Statute or is specific to language in this legislation.
Senator Elton responded that the definition of fish is defined
elsewhere in State Statute.
ELISE HSIEH, Assistant Attorney General, Environmental Section,
Civil Division (Anchorage), Department of Law, testified via
teleconference from an offnet site and explained that "finfish," is
a commonly used term, which is included in the Department of Fish
and Game Chapter Title 16. She stated that finfish, shellfish, and
fish by-products are included in "the broader term, seafood."
Therefore, she supported Senator Elton's position "that finfish is
different than shellfish."
Co-Chair Green questioned the need to include the Section 2
definition language in the legislation, as the intent of the bill
is to address the difference between wild fish or farmed fish and
not to define "fish" as opposed to shellfish.
Senator Elton expressed that the inclusion of the "fish" definition
is the result of being "overly cautious" in its attempt to clarify
what finfish is in regards to the intent of this bill.
Co-Chair Wilken understood that the intent of the fish definition
would be to distinguish that the bill would not affect things such
as oysters.
Senator Elton concurred, and noted that "a more common" example
would be shrimp, as the majority of the shrimp that is imported
into the United States is farmed.
Co-Chair Wilken asked regarding the reason that schools and
correctional facilities are excluded from the disclosure
requirement denoted in Section 2, subsection (4) (B) and (C) on
page four, lines nine and eleven respectfully.
Senator Elton responded that the intent of this legislation is to
focus on businesses serving the open public rather than on those
that do not. While he would not be opposed to the inclusion of
those entities exempted in Section 2, subsection (4), it might
prove awkward were, for instance, British Petroleum (BP) required
to provide signage in its North Slope employee cafeteria.
Co-Chair Wilken acknowledged the explanation.
Co-Chair Wilken ordered the bill HELD in Committee.
CS FOR HOUSE BILL NO. 486(FIN)
"An Act relating to reclamation bonding and financial
assurance for certain mines; relating to financial assurance
limits for lode mines; establishing the mine reclamation trust
fund; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that the Senate Rules Committee by Request
of the Governor sponsors this bill, Version 23-GH2106\D. It would
remove the $750 per acre limitation currently in place on hard rock
or "lode mines" and would instead require "companies to bond for
reasonable and probable cost of reclamation." The bill is
accompanied by a zero fiscal note from the Department of Natural
Resources."
NANCY WELCH, Special Assistant to Commissioner Tom Irwin,
Department of Natural Resources, informed the Committee that the
Alaska Miners Association and the Council of Alaska Producers
support this bill. She was unaware of any opposition to the bill.
BOB LOEFFLER, Director, Division of Mining, Land and Water,
Department of Natural Resources, testified via teleconference from
an offnet site to comment that the State's current reclamation law
was established at a time when only placer mines were operating in
the State. This legislation would take into consideration bonding
requirements that better align with the State's current situation
that includes large mines such as the Fort Knox, Pogo, Red Dog, and
True North mines. The changes include the elimination of the bond
reclamation amount that could be charged as it was more appropriate
to placer mines and not to large mines; providing companies a
variety of options through which to adhere to State bonding
requirements, and providing the opportunity for mines to contribute
to a voluntary mine reclamation trust fund which the State would
manage until the funds were required. He voiced pleasure that the
bill has garnered support from the industry and reiterated that
there is no known opposition to the bill.
Senator Hoffman asked whether the bill would be limited to new
mines or would be retroactive.
Mr. Loeffler clarified that the reclamation bonding language would
remain unchanged in regards to placer mines. Were this legislation
adopted, the entirety of the large mines have agreed to waive the
required $750 per acre limitation and replace that requirement with
one of a variety of reclamation bonding options.
Senator B. Stevens moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, CS HB 486 (FIN) was REPORTED from
Committee with zero fiscal note #1, dated January 21, 2004 from the
Department of Natural Resources and a new $21,000 fiscal note,
dated April 26, 2004 from the Department of Revenue.
CS FOR SENATE BILL NO. 284(STA)
"An Act relating to an optional election to prevent the name
and address of a permanent fund dividend applicant from being
disclosed, except to a local, state, or federal government
agency, or in compliance with a court order."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this legislation would allow the
Permanent Fund Dividend Division in the Department of Revenue to
keep applicant information private, except in those situations in
which the disclosure of the information is required by federal or
State government.
Co-Chair Green moved to adopt the Version 23-LS1596\I committee
substitute as the working document.
Co-Chair Wilken, hearing no objection, announced that the Version
"I" committee substitute would be the working document.
SENATOR GRETCHEN GUESS, the bill's sponsor, stated that this
legislation would mandate that, with the exception of a person's
name, all Permanent Fund Dividend (PFD) application information
would be confidential. In addition to providing a degree of privacy
to individuals, keeping things such as a person's residential
address confidential is especially important for those threatened
by domestic violence. This would include keeping Post Office Box
addresses private, as someone could locate a person were that a
known element. Federal and State access to some of the dividend
application information would apply in such cases as child support
and jury duty communications.
Senator Guess noted that currently, a person could access the
Permanent Fund Dividend registry via the Internet and download it
in its entirety. The adoption of the Version "I" committee
substitute would reduce the original $15,000 Department of Revenue
fiscal note #1, dated February 24, 2004.
SHARON BARTON, Director, Permanent Fund Dividend Division,
Department of Revenue, confirmed that the Department's fiscal
expense associated with the Version "I" committee substitute would
be reduced to zero, as no cost would be incurred by only publishing
individuals' names on the registry.
Co-Chair Wilken asked for further information regarding the
Department's $15,000 fiscal note #1, dated February 24, 2004.
Ms. Barton responded that limiting the Permanent Fund registry to
only applicants' names, as specified in the Version "I" committee
substitute, would incur no expense to the Department, as it would
be accomplished by a small programming change. The previous version
of the bill would have allowed people to choose whether or not to
include their name and address on the Permanent Fund Dividend
registry. That ability to choose, she informed, would have resulted
in an expense to the Department.
Co-Chair Wilken understood therefore, that a new zero fiscal note
from the Department of Revenue would be forthcoming.
Ms. Barton concurred.
Co-Chair Green informed the Committee that she had been contacted
by a constituent who told her that, as a result of being on some
State registry, her name had been accessed by a mailing list and,
as a result, she had received a volume of unsolicited mail.
Therefore, Co-Chair Green suggested that this legislation be
expanded to provide privacy coverage to a multitude of State
registries. She noted that currently, each agency has its own
Statutes in this regard. The issue regarding privacy of information
should be further expanded to encompass all State agencies. She
stated that she would conduct further research in this regard.
Co-Chair Wilken noted that amending this legislation to address
those concerns could be an option. Therefore, he asked Co-Chair
Green to further her efforts.
Co-Chair Green concurred that the privacy issue is important.
Co-Chair Wilken commented that were the PFD database information
curtailed, the next commonly used database would be voter
registration lists.
Co-Chair Green responded that she would further efforts to address
these concerns.
Co-Chair Wilken commented that public officials access voter
registration lists to obtain constituency contacts.
Senator Guess voiced willingness to amend the legislation to
include other areas of concern. She understood that the PFD
database is the most commonly used database as it is the largest,
most accurate address registry available.
Co-Chair Wilken ordered the bill HELD in Committee in order to
address additional privacy concerns.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 03:37 PM
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