Legislature(2005 - 2006)
05/04/2005 04:45 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| HB61 | |
| HB33 | |
| HB149 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 4, 2005
4:45 p.m.
CALL TO ORDER
Co-Chair Green convened the meeting at approximately 4:45:43 PM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Fred Dyson
Senator Bert Stedman
Senator Donny Olson
Senator Lyman Hoffman
Also Attending: SENATOR BEN STEVENS; SENATOR RALPH SEEKINS
REPRESENTATIVE JAY RAMRAS; REPRESENTATIVE MARK NEUMAN; GINGER
BLAISDELL, Staff to Co-Chair Green; JOAN BROWN, Chief Budget
Analyst, Office of Management and Budget, Office of the Governor;
SHALON SZYMANSKI, Staff to Representative Lesil McGuire; MICHAEL
PAWLOWSKI, Staff to Representative Kevin Meyer; STEVE WEAVER,
Assistant Attorney General, Legislation & Regulations Section,
Office of the Attorney General, Department of Law; JANE PEARSON,
Staff to Representative Ramras, DEAN GUANELI, Chief Assistance
Attorney General, Criminal Division, Office of the Attorney
General, Department of Law
Attending via Teleconference: From an Offnet Site: JEFF BARNHILL,
Palmer Golf Course
SUMMARY INFORMATION
SB 46-BUDGET: CAPITAL & OTHER/ BRF
The Committee heard from the Co-Chair's staff, the Office of
Management and Budget and Senator Seekins. Amendments to the bill
were considered. The bill was held in Committee.
HB 61-GAMING: CALCUTTA POOLS & CRANE CLASSICS
The Committee heard from the bill's sponsor and Representative Mark
Neuman. Public testimony was taken and the bill was held in
Committee.
HB 33-REGULATIONS AFFECTING SMALL BUSINESSES
The Committee heard from the bill's sponsor and the Department of
Law. The bill was held in Committee.
HB 149-CONTROLLED SUBSTANCES
The Committee heard from the bill's sponsor and the Department of
Law. The bill was held in Committee.
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This bill had previously been heard in the Senate Finance
Committee. Unless otherwise noted, amendments are considered to the
committee substitute, Version "Y" adopted at the previous hearing.
Amendment #35: This amendment inserts a new subsection into Section
52. DEPARTMENT OF ADMINISTRATION., on page 119, following line 26
to read as follows.
(c) The sum of $4,350,000 is appropriated from the
general fund to the Department of Administration,
commissioner's office, for distribution to state agencies to
offset the increased chargeback rates for statewide services
as identified in the statewide federal cost allocation plan.
AND
Amendment #36: This amendment inserts two new subsections into
Section 20. FUND TRANSFERS., on page 96, following line 18 to read
as follows.
(d) The sum of $12,000,000 is appropriated from the
general fund to the Alaska public building fund (AS
37.05.570).
(e) The amount necessary to have an unobligated balance
of $5,000,000 in the state insurance catastrophe reserve
account in accordance with AS 37.05.289 is appropriated from
the general fund to the state insurance catastrophe reserve
account (AS 37.05.289).
This amendment also deletes "$300,000" from subsection (b) of
Section 52. DEPARTMENT OF ADMINISTRATION., on page 119, line 25 and
inserts "$40,300,000". The amended language reads as follows.
(b) The sum of $40,300,000 is appropriated from the
general fund to the information services fund (AS
44.21.045(a)).
The Committee adopted the two amendments at the previous hearing.
Co-Chair Wilken offered a motion to rescind action taken on
Amendments #35 and #36.
There being no objection, the Committee's action adopting Amendment
#35 and Amendment #36 was RESCINDED.
Co-Chair Green announced that these amendments would be replaced
with a new amendment.
Amendment #35 & 36(A): This amendment reads as follows.
This amendment corrects amendments #35 and #36
This allows the authorization to spend from the funds that are
capitalized.
SB 46 "F"
Amendment offered by Senator Green
Add:
Sec. 1.
Enterprise Technology $7,959,500 Information Svcs Fund
Services and Statewide Administrative
System Replacement capital projects
Deferred Maintenance for $12,000,000 Public Building Fund
Buildings in the Public
Building Fund
Sec. 20. FUND TRANSFERS. (c) The sum of $40,000,000 is
appropriated from the general fund to the information services
fund.
(d) The amount necessary to have an unobligated balance of
$5,000,000 in the state insurance catastrophe reserve account
in accordance with AS 37.05.289 is appropriated from the
general fund to the state insurance catastrophe reserve
account.
New Section XX. Department of Administration. The sum of
$4,350,000 is appropriated to the Department of
Administration, Commissioner's Office for the distribution to
state agencies to offset the increased chargeback rates for
statewide services as identified in the Statewide Federal Cost
Allocation Plan.
GINGER BLAISDELL, Staff to Co-Chair Green, explained the new
Amendment #35 & 36(A), saying it would have a net zero impact.
[Note: The Committee's intent was to adopt the amendment, although
no motion was made to do so.]
Co-Chair Green determined the amendment to be ADOPTED without
objection.
Amendment #37: This amendment inserts two new bill sections to read
as follows.
Sec. XX. DEPARTMENT OF HEALTH AND SOCIAL SERVICES PERSONAL
NEEDS ALLOWANCE FOR ASSISTED LIVING HOMES. (a) It is the
intent of the legislature that the Department of Health and
Social Services repeal 7 AAC 43.1058(k)(1)(B) effective July
1, 2005.
(b) It is the further intent of the legislature that the
Department of Health and Social Services shall adopt new
emergency regulations establishing a personal needs allowance
for recipients residing in an assisted living facility equal
to the monthly income limit set in AS 47.07.020(b)(6) minus
$260.00. Until such time as the department can adopt these
regulations at 7 AAC 43.1058(k)(1)(B), the department shall
apply personal needs allowance for recipients residing in an
assisted living facility equal to the monthly income limit set
in AS 47.07.020(b)(6) minus $260.00. This meets the
requirements for finding of a public, health, safety and
welfare emergency under AS 44.62.250.
(c) The sum of $363,500 is appropriated to the Department
of Health and Social Services, senior and disabilities
Medicaid services in order to adopt new emergency regulations
as outlined in subsections (a) and (b) of this section for the
fiscal year ending June 30, 2006, from the following sources
in the amounts stated:
Federal Receipts $209,300
General Fund Match 154,200
Sec.__. EFFECTIVE DATE. (a) Section XX (a) is effective July
1, 2005.
(b) Section XX (b) is effective July 2, 2005.
Co-Chair Green moved for adoption and outlined the amendment.
There being no objection, Amendment #37 was ADOPTED.
Amendment #38: This amendment inserts a new subsection in to
Section 20. FUND TRANSFERS., on page 96, following line 18 to read
as follows.
(d) The sum of $2,693,700 is appropriated from the
general fund to the Alaska marine highway system fund (AS
19.65.060(a)).
This amendment also stipulates an effective date of July 1, 2005
for the inserted subsection. Accompanying explanatory language
reads as follows.
DESCRIPTION: Marine highway fuel increase
The FY 06 Governor's request as proposed in December 2004 was
based on $1.17 per gallon of fuel. The volatility of fuel
prices is reflected in the $1.54 per gallon average price to
date in FY 05. If we use the Alaska Department of Revenue's
Spring Forecast to estimate prices in FY 06, the result is a
delivered fuel price for the AMHS at a slightly lower average
price of $1.425 per gallon estimate. The marine highway system
is projected to use approximately 10.7 million gallons of fuel
in FY 06.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected for an explanation.
Ms. Blaisdell explained that this amendment would appropriate over
$2 million general funds for Alaska marine highway vessel
operations. The amount approved in the FY 06 operating budget
legislation would be insufficient.
Senator Dyson understood therefore that this is a FY 06 operating
budget expenditure.
Co-Chair Green clarified this would be a supplemental appropriation
to the amount provided in the operating budget.
Ms. Blaisdell informed that this amendment was offered at the
request of the Office of Management and Budget and the Department
of Transportation and Public Facilities. The need for additional
funding was realized at the time that the operating budgets for the
Department of Transportation and Public Facilities was closed out.
Senator Dyson clarified this is not an FY 05 supplemental
appropriation.
Co-Chair Wilken affirmed.
There being no objection, Amendment #38 was ADOPTED.
Amendment #39: This amendment deletes the City of Sand Point -
Purchase and Upgrade of Old Reeve Aleutian Airways Building (HD 37)
component of the Airport Improvement Program Budget Request Unit
(BRU), Department of Transportation and Public Facilities on page
49, lines 29 - 32 and the $1 million allocation to that component.
This amendment also deletes the Ketchikan: Airport Improvements (HD
1) component of the Airport Improvement Program BRU, Department of
Transportation and Public Facilities on page 51, lines 5 and 6 and
the $500,000 allocation to that component.
This amendment also deletes Sand Point: Terminal Redevelopment Plan
(HD 37) of the Airport Improvement Program BRU, Department of
Transportation and Public Facilities on page 52, lines 31 and 32
and the $200,000 allocation to that component.
This amendment also adds a new City of Sand Point - Purchase and
Upgrade of Old Reeve Aleutian Airways Building (HD 37) component to
the Congressional Earmarks BRU, Department of Transportation and
Public Facilities on page 65, line 6 and allocates $1 million to
the component.
This amendment also adds a new Ketchikan: Airport Improvements (HD
1) component to the Congressional Earmarks BRU, Department of
Transportation and Public Facilities on page 65, line 6 and
allocates $500,000 to the component.
This amendment also adds a new Sand Point - Terminal Redevelopment
Plan (HD 37) component to the Congressional Earmarks BRU,
Department of Transportation and Public Facilities on page 65, line
6 and allocates $200,000 to the component.
Accompanying explanatory language reads as follows.
Description:
These projects are Congressional Earmarks, rather than Airport
Improvement Projects. The funding source (federal receipts)
does not change. This amendment just moves the projects from
the Airport Improvement Program appropriation to the
Congressional Earmarks appropriations.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell characterized this as a technical amendment. She
proposed changes to the amendment to delete the City of Sand Point
- Purchase and Upgrade of Old Reeve Aleutian Airways Building and
corresponding $1 million allocation and change the title of the
Sand Point - Terminal Redevelopment Plan (HD 37) component to read,
"Sand Point - Terminal Redevelopment (HD 37) and increase the
allocation to that component to $1 million.
4:53:37 PM
Ms. Blaisdell continued to outline the proposed amendment to the
amendment.
Co-Chair Green clarified the projects should be categorized as
congressional earmarks.
Ms. Blaisdell affirmed, noting the federal funds.
[Note: The Committee intent was to amend the amendment to
incorporate the changes proposed by the witness, although no motion
was made.]
Co-Chair Green determined Amendment #39 to be AMENDED and ADOPTED
without objection.
4:54:17 PM
Amendment #40: This amendment increases the appropriation to the
Alaska Aviation Safety Project Phases 2 and 3 (HD 1-40) component
of the Department of Military and Veterans Affairs on page 38,
lines 13 through 15 from $8,452,000 Other Funds to $11,452,000
Other Funds. Accompanying explanatory language reads as follows.
Description: Alaska Aviation Safety Project Phases 2 and 3 (HD
1-40)
The department has recently received word that NASA will be
increasing this grant by $3 million.
This project involves mapping the most dangerous major air
corridors in Alaska using ortho-rectified, remote imaging and
digital elevation models to create 3-D visual fly-throughs.
The aviation community, Rescue Coordination Center (RCC) and
the Medallion Foundation will use these renderings. The goal
of this research is to apply advanced sciences and technology
to decrease aircraft accidents and related fatalities.
Co-Chair Wilken moved for adoption.
Co-Chair Green overviewed the explanatory statement.
There being no objection, Amendment #40 was ADOPTED.
4:54:53 PM
Amendment #41: This amendment deletes the language pertaining to FY
03 from subsection (d) of Section 35. RATIFICATIONS., on page 106,
lines 12 through 14. The amended language reads as follows.
(d) The expenditures by the Department of Commerce,
Community and Economic Development for a qualified trade
association contract for the fiscal year ending June 30, 2004,
are ratified in the amount of $158,174.
Accompanying explanatory language reads as follows.
Description: Technical correction to reflect just fiscal year
2004.
Co-Chair Wilken moved for adoption.
Co-Chair Green clarified this is a technical amendment.
JOAN BROWN, Chief Budget Analyst, Office of Management and Budget,
Office of the Governor, affirmed this is a technical amendment to
eliminate ratification amounts for FY 03 from this provision.
AT EASE 4:56:13 PM / 4:56:15 PM
There being no objection Amendment #41 was ADOPTED.
4:56:43 PM
Amendment #42: This amendment changes the funding source of the
$55,400 appropriation to the Interior Region Timber Marketing
Prospectus (HD 6) component of the Department of Natural Resources
on page 40, lines 30 and 31 from Statutory Designated Program
Receipts (Fund 1108) to Timber Sales Receipts (Fund 1155).
Accompanying explanatory language reads as follows.
Description: Interior Region Timber Marketing Prospectus
There is no source of SDPR for the Interior Region Timber
Marketing Prospectus.
Timber Sales Receipts could fund this program.
Co-Chair Wilken moved for adoption.
Co-Chair Green explained this is another technical change.
There being no objection, Amendment #42 was ADOPTED.
4:57:11 PM
Amendment #43: This amendment increases the allocation to the
Fairbanks International Airport: Terminal Area Development (HD 7-
11) component of the Airport Improvement Program BRU, Department of
Transportation and Public Facilities on page 50, lines 19 through
21 from $2.2 million to $40.6 million. A notation states "This will
change the Airport Improvement Program appropriation amount on page
48." Accompanying explanatory language reads as follows.
Description:
New fund sources: $3,000,000 Federal Receipts (Fund 1002)
10,000,000 International Airport Revenue
Funds (Fund 1027)
27,600,000 International Airport
Construction Funds
(Fund 1112)
This funding change was submitted in the March 25, 2005
amendment package sent to the Legislature.
A terminal area development plan was completed for FAI under
the guidance and direction of the FAI Terminal Development
Technical Committee consisting of representatives from FAI,
DOT&PF, FAA (Federal Aviation Administration) and the
airlines. As a subtask of this effort, a deficiency evaluation
was completed for the facility. This deficiency study notes
that three independent structural evaluations found portions
of the building to be structurally unsound and that under a
design level seismic event the building will be subject to
possible collapse and significant damage. The study also noted
that portions of the facility Department of Education and
Early Development not meet required fire and life safety
codes, are functionally deficient and that the buildings'
physical systems (HVAC, electrical, etc.) were near the end of
their useful life and will require major repair or replacement
in the near future. A preferred alternative for replacing and
upgrading portions of the facility to address the noted
deficiencies while providing adequate space for the expected
growth in passenger traffic in the near term was developed and
agreed upon by the members of the Technical Committee.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell explained that the Office of Management and Budget
has identified additional funds, none of which are general funds.
Co-Chair Green clarified this amendment would have no net increase
in general fund expenditure.
Ms. Blaisdell stressed the significant increase in use of other
funds.
There being no objection, Amendment #43 was ADOPTED.
4:58:23 PM
Amendment #44: This amendment inserts a new subsection into Section
22. OFFICE OF THE GOVERNOR., on page 98, line 9 to read as follows.
(a) Section 8(a), ch. 6, SLA 2005, is amended to read:
(a) The sum of $375,000 is appropriated from
the general fund to the Office of the Governor for
direct support of national efforts to open the
coastal plain of the Arctic National Wildlife
Refuge for oil and gas exploration and development,
and other oil and gas and natural resource
development projects, for the fiscal years ending
June 30, 2005, and June 30, 2006.
New Text Underlined
This amendment then renumbers the existing subsections of Section
22 accordingly. Accompanying explanatory language reads,
"Description: This extends the purpose of the appropriation."
Co-Chair Wilken moved for adoption.
Co-Chair Green objected for explanation, noting it was offered at
the request of the Office of Management and Budget.
Ms. Blaisdell explained this amendment relates to "appropriation
items that are in the gas pipeline section of the supplemental
portion of this bill."
Co-Chair Green ordered the amendment TABLED.
4:59:11 PM
Amendment #45: This amendment adds "and other oil and gas and
natural resource development projects" to subsection (a) of Section
22. OFFICE OF THE GOVERNOR., on page 98, lines 9 through 12. The
amended subsection reads as follows.
(a) The sum of $125,000 is appropriated from the Alaska
Permanent Fund Corporation receipts to the Office of the
Governor for direct support of national efforts to open the
coastal plain of the Arctic National Wildlife Refuge for oil
and gas exploration and development, and other oil and gas and
natural resource development projects, for the fiscal years
ending June 30, 2005, and June 30, 2006.
Accompanying explanatory language reads, "Description: This expands
the purpose of the appropriation."
Co-Chair Wilken moved for adoption.
Ms. Blaisdell explained that this amendment is similar to Amendment
#44.
Co-Chair Green objected to the motion and ordered the amendment
TABLED.
4:59:41 PM
Amendment #46: This amendment increases the general fund
appropriation to the Management Information System (HD 1-40)
component of the Department of Law on page 38, lines 8 and 9 from
$500,000 to $1 million. Accompanying explanatory language reads as
follows.
Description:
This amendment restores this project to the full amount
requested in the Governor's Capital Budget. The agency is
concerned that reducing this appropriation to 50% jeopardizes
its ability to purchase needed software and hardware to
achieve critically needed improvements in technology in the
State's largest law office. The current timekeeping and
billing system is outdated, case management and document
management is practically nonexistent when measured against
industry standards. The agency is hampered in its ability to
supply accurate and dependable management information that
would be the cornerstone of meaningful and measurable
performance information.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell outlined the explanatory statement.
There being no objection, Amendment #46 was ADOPTED.
5:00:37 PM
Amendment #47: This amendment deletes the language of Section 10.
NATIONAL PETROLEUM RESERVE - ALASKA IMPACT GRANT PROGRAM; INTENT.
(b), on page 92, lines 16 - 20 and inserts new language to read as
follows.
(b) The sum of $24,706,539, received by the National
Petroleum Reserve - Alaska special revenue fund (AS 37.05.530)
under 42 U.S.C. 6508 by August 31, 2005, is appropriated to
the Department of Commerce, Community and Economic Development
from capital project grants under the National Petroleum
Reserve - Alaska impact grant program to the following
municipalities for the purposes stated in the amounts set out:
MUNICIPALITY PROJECT AMOUNT
(1) North Slope Borough Social and cultural $275,880
study - phase 2
(2) North Slope Borough Wainwright youth 229,500
program
(3) Nuiqsut Local government 468,000
operations/cultural
coordinator
(4) North Slope Borough Wainwright softball 35,000
field
(5) Barrow City impound and 174,389
disposal site project
(6) North Slope Borough Atqasuk energy 100,042
assessment
(7) North Slope Borough Wainwright local 311,500
government operations
(8) Barrow City Hall building 69,413
addition feasibility
study
(9) Nuiqsut Youth center operations 150,000
and maintenance
(10) Atqasuk Atqasuk local 336,468
government operations
(11) Barrow Roller rink renovation 63,556
feasibility study
(12) North Slope Borough Utility master plan/ 106,221
emergency plan
(13) North Slope Borough Misdemeanor probation 346,071
officer
(14) North Slope Borough Fire equipment and 250,000
training
(15) Barrow Barrow local 1,385,843
government operations
(16) Nuiqsut Design/install 200,000
retractable boat ramp
(17) North Slope Borough Continuing studies to 2,461,368
investigate
wildlife/subsistence
(18) North Slope Borough Oil spill response team 737,867
(19) North Slope Borough Police officers for 1,486,689
NPR-A villages
(20) North Slope Borough Health, survival, and 654,426
sustainability of key
subsistence resources
(21) North Slope Borough Workforce development 3,729,451
program
(22) North Slope Borough Mayor's job program 2,527,961
(23) North Slope Borough Police importation 1,101,512
combat program
(24) North Slope Borough North Slope science 425,578
initiative
(25) North Slope Borough Village capacity 968,182
building
(26) North Slope Borough NPR-A technical 1,468,508
review team
(27) North Slope Borough Allied health 3,400,000
training center
(28) North Slope Borough Wainwright city office 38,114
renovation
(29) Atqasuk Youth center addition 680,000
to community center
(30) North Slope Borough Wainwright lagoon 525,000
boat launch
(c) If the amount available for appropriation from the
National Petroleum Reserve - Alaska special reserve fund (AS
37.05.530) under (b) of this section is less than $24,706,539,
then each of the appropriations made by (b)(1) - (30) of this
section is reduced in proportion to the amount of the
shortfall.
This amendment also stipulates a lapse date of June 30, 2006 for
the appropriations made in Section 10(b)(1)-(13); a lapse date of
June 30, 2007 for the appropriations made in subsections (14)-(16);
a lapse date of June 30, 2008 for the appropriations made in
subsections (17)-(26); and a lapse date of June 30, 2009 for the
appropriation made in subsection (27). The appropriations made in
subsections (28)-(30) lapse under AS 37.25.020.
Co-Chair Wilken announced this amendment would be NOT OFFERED, as
it is a duplicate of Amendment #30, which was adopted at the
previous hearing.
5:00:49 PM
Amendment #48: This amendment inserts a new subsection to Section
10. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT GRANT PROGRAM;
INTENT., on page 92, following line 20 to read as follows.
(c) That portion of the amount appropriated by (B) of
this section that is not subject to a signed grant agreement
between the Department of Commerce, Community and Economic
Development and an impacted municipality by August 31, 2005,
lapses into the National Petroleum Reserve - Alaska special
revenue fund (AS 37.05.530) September 1, 2005.
Accompanying explanatory language reads as follows.
Description:
This amendment is needed to allow lapsing into the NPR-A Fund
for funds that do not have a signed grant agreement.
Co-Chair Wilken moved for adoption.
Co-Chair Green understood this to be a technical amendment.
Ms. Blaisdell affirmed and explained the language had been
inadvertently omitted.
There being no objection, Amendment #48 was ADOPTED.
5:01:41 PM
Amendment #49: This amendment inserts "and construction" to the
title of the Lower Kuskokwim - Kilbuck Elementary Deferred
Maintenance, Bethel (HD 38) component of the Major Maintenance
Grant Fund (AS 14.11.007) BRU, Department of Education and Early
Development on page 79, lines 22 through 24. The amended component
title is "Lower Kuskokwim - Kilbuck Elementary Deferred
Maintenance, and Construction, Bethel (HD 38)". The $24,251,565
general fund allocation remains unchanged.
Senator Hoffman moved for adoption.
Co-Chair Green objected for an explanation.
Senator Hoffman explained this amendment would provide the Lower
Kuskokwim School District the option to utilize the funds to
construct a new school if deemed appropriate.
Co-Chair Wilken understood that the Department of Education and
Early Development must first review new school construction
projects. He asked if this facility has undergone the approval
process.
Senator Hoffman responded that this project has completed the
Department of Education and Early Development review.
Senator Stedman clarified the estimated cost of deferred
maintenance needs for the school is $24 million.
Senator Hoffman affirmed.
Co-Chair Green requested Senator Hoffman explain how the estimate
was achieved.
Senator Hoffman replied that the Lower Kuskokwim School District
submitted this amount to the Department after prioritizing the
needs.
Senator Stedman asked if the theory is that demolishing the
existing school and constructing a new facility might be more
economical.
Senator Hoffman affirmed that such a determination could be made.
There being no objection, Amendment #49 was ADOPTED.
5:03:36 PM
Amendment #50: This amendment adds a new Special Olympics Games
component to the Grants to Named Recipients (AS 37.05.316) BRU,
Department of Commerce, Community and Economic Development on page
3 line 30 and 31 and appropriates $250,000 general funds to the
component.
Senator Dyson moved for adoption.
Senator Dyson offered a motion to amend the amendment. The
amendment to the amendment reduces the general fund appropriation
to the Special Olympics Games from $250,000 to $125,000.
The amendment to the amendment also adds a new Arctic Winter Games
component to the Grants to Named Recipients BRU and appropriates
$125,000 general funds to that component.
The amendment to the amendment also adds a new 2006 National
Veterans Wheelchair Games component to the Grants to Named
Recipients BRU and appropriates $250,000 general funds to that
component.
The total appropriation to the amended amendment is $500,000
general funds.
The amendment was AMENDED without objection.
Without further objection Amendment #50, as amended, was ADOPTED.
5:04:51 PM
Amendment #51: This amendment adds a new Fraternal Order of Alaska
State Troopers (FOAST) room conversion and facility upgrades
component to the Grants to Named Recipients BRU, Department of
Commerce, Community and Economic Development on page 3, lines 30
and 31 and appropriates $12,000 general funds to the component.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected.
Co-Chair Green asked if Members had further objection and hearing
none, declared Amendment #51 ADOPTED.
5:05:17 PM
Amendment #52: This amendment inserts a new Fraternal Order of
Alaska State Troopers (FOAST) Photo/Video Project Program
Implementation component to the Grants to Named Recipients BRU,
Department of Commerce, Community and Economic Development on page
3, lines 30 and 31 and appropriates $50,000. The fund source is not
specified.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected to the motion and ordered the Amendment
TABLED.
5:05:31 PM
Amendment #53: This amendment inserts a new City of Adak - Adak
Arctic Shuttle Pre-Feasibility Study component to the Grants to
Municipalities (AS 37.05.315) BRU, Department of Commerce,
Community and Economic Development on page 8, lines 11 and 12 and
appropriates $50,000 to the component. The fund source is not
specified.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected to the motion and TABLED the amendment.
AT EASE: 5:05:48 PM / 5:06:17 PM
Amendment #54: This amendment inserts a new Service High School
PTSA Scoreboard Improvement component to the Grants to Named
Recipients BRU, Department of Commerce, Community and Economic
Development on page 3 lines 30 and 31 and appropriates $20,000 to
the component. The fund source is not specified.
Co-Chair Wilken moved for adoption.
There being no objection, Amendment #54 was ADOPTED.
5:06:31 PM
Amendment #55: This amendment inserts a new Municipality of
Anchorage - 74th Ave Pedestrian Facilities - Arctic Boulevard to
Chad St. component to the Grants to Municipalities BRU, Department
of Commerce, Community and Economic Development on page 8, lines 11
and 12 and appropriates $250,000 to the component. The fund source
is not specified.
Co-Chair Wilken moved for adoption.
There being no objection, Amendment #55 was ADOPTED.
5:06:36 PM
Amendment #56: This amendment increases the general fund
appropriation to the Municipality of Anchorage - Kincaid Park
Summer and Winter Recreational Improvements, Fields, Paving and
Equipment (HD 17-32) component in the Grants to Municipalities BRU,
Department of Commerce, Community and Economic Development, on page
23, lines 18 through 23 from $480,000 to $730,000.
Co-Chair Wilken moved for adoption.
There being no objection, Amendment #56 was ADOPTED.
Co-Chair Green requested clarification of the project.
Ms. Blaisdell explained the improvements would be made to the
recreational facilities of Kincaid Park in Anchorage.
5:07:01 PM
Amendment #57: This amendment changes the title of the City of
Sterling - Sterling Senior Center Kitchen Equipment (HD 33-35)
component in the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 12, lines 23
through 25, to read "Sterling Senior Citizens, Inc. - Sterling
Senior Center Kitchen Equipment (HD 33-35). The general fund
appropriation to the component of $64,000 is reduced to $58,000.
This amendment also changes the title of the Kenai Peninsula
Borough - Kenai Road Improvements (HD 33-35) component in the
Grants to Municipalities BRU, Department of Commerce, Community and
Economic Development on page 14, lines 25 through 27, to read "City
of Kenai - Kenai Road Improvements (HD 33-35)". The general fund
appropriation remains unchanged.
This amendment also reduces the general fund appropriation to the
Kenai Peninsula Borough - Nikiski Elementary School Bicycle Trail
(HD 33-35) component in the Grants to Municipalities BRU,
Department of Commerce, Community and Economic Development on page
14, lines 31 - 33, from $154,400 to $137,000.
This amendment also reduces the general fund appropriation to the
Kenai Peninsula Borough - Ninilchik Pressure Reducing Station (HD
33-35) component in the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 15, lines 3,
through 5 from $225,000 to $210,000.
This amendment also changes the title of the Kenai Peninsula
Borough - Ninilchik Pumper Tanker Truck (HD 33-35) component in the
Grants to Municipalities BRU, Department of Commerce, Community and
Economic Development on page 15, lines 6 through 8, to read
"Ninilchik Emergency Services, Inc. - Ninilchik Pumper Tanker Truck
(HD 33-35)". The general fund appropriation to the component is
reduced from $154,000 to $140,000.
This amendment also changes the title of the Kenai Peninsula
Borough - Soldotna Road Improvements (HD 33-35) component in the
Grants to Municipalities BRU, Department of Commerce, Community and
Economic Development on page 15, lines 16 through 18, to read "City
of Soldotna - Soldotna Road Improvements (HD 33-35)". The general
fund appropriation remains unchanged.
Co-Chair Wilken moved for adoption of the amendment.
Co-Chair Green characterized this as a "neutral" amendment, in
which some funding reductions are made.
There being no objection, Amendment #57 was ADOPTED.
5:07:40 PM
Amendment #58: This amendment increases the general fund
appropriation to the Matanuska-Susitna Borough - Academy Charter
School/Administrative Building Improvements (HD 13-16) component in
the Grants to Municipalities BRU, Department of Commerce, Community
and Economic Development on page 16, lines 7 through 10, from
$20,000 to $35,000.
Co-Chair Wilken moved for adoption.
Ms. Blaisdell explained this is a technical correction.
There being no objection, Amendment #58 was ADOPTED.
5:08:16 PM
Amendment #59: This amendment inserts a new 2006 National Veterans
Wheelchair Games component to the Grants to Named Recipients BRU,
Department of Commerce, Community and Economic Development on page
3, lines 30 and 31 and appropriates $250,000 general funds to the
component.
Co-Chair Green announced this amendment would be NOT OFFERED due to
action taken on Amendment #50.
AT EASE 5:08:41 PM / 5:10:07 PM
Amendment #60: This amendment deletes the Denali Borough - Anderson
School/Septic Leach Field Replacement (HD 7-11) component from the
Grants to Municipalities BRU, Department of Commerce, Community and
Economic Development on page 13, lines 17 through 19, and the
$77,800 general fund appropriation to that component.
This amendment also inserts a new World War 2 Memorial component to
an unspecified BRU and department and appropriates $35,200 to the
component. The fund source is not specified.
This amendment also deletes the Denali Borough - Cantwell
School/Sprinkler System Fire Upgrade and New Well (HD 7-11)
component from the Grants to Municipalities BRU, Department of
Commerce, Community and Economic Development on page 13, lines 20
through 23, and the $182,400 general fund appropriation to that
component.
This amendment also inserts a new Ester Volunteer Fire Department
component to an unspecified BRU and department and appropriates
$125,000 to the component. The fund source is not specified.
This amendment also inserts a new Morris Thompson Cultural Center
component to an unspecified BRU and department and appropriates
$100,000 to the component. The fund source is not specified.
A notation on the amendment reads "net zero technical change".
Co-Chair Green announced this amendment would be NOT OFFERED..
Amendment #61: This amendment changes the title of the City of San
Point - Purchase and Upgrade of Old Reeve Aleutian Airways Building
(HD 37) component in the Grants to Municipalities BRU, Department
of Commerce, Community and Economic Development on page 49, lines
29 through 32 to read, "City of Sand Point - Airport Terminal
Project (HD 37). Accompanying explanatory language reads as
follows.
Amendment is requested by the City of Sand Point at the
recommendation of Kip Knudson, Deputy Director for Aviation,
DOT. Knudson advised that the inclusion of the word "purchase"
may overly limit the use of funds in the event the Reeve
building is not totally recoverable for renovation. The
requested broader language will give the City of Sand Point
the flexibility to build a new terminal if and when the actual
condition of the Reeve building is determined.
Co-Chair Green announced this amendment would be NOT OFFERED.
Amendment #62: [Note: The amendment specifies the following be
inserted "following page 15, line 9, under Department of Fish and
Game". This page of the committee substitute contains Grants to
Municipalities BRU components. Appropriations to the Department of
Fish and Game are contained on page 35, lines 11 through 32.] This
amendment inserts a new Implementation of Intensive Management Laws
component and appropriates $250,000 general funds to the component.
Accompanying explanatory language reads as follows.
The Board of Game has authorized several predator control
programs in an effort to allow major depleted ungulate
populations that have been limited by predation to increase.
In order to sustain these programs long enough to be
effective, and in recognition of the need for additional
similar programs in other areas, there is a need for
biological inventories and studies to gather information upon
which the Board can base its decisions. This information also
represents the basis for defending the programs from legal
challenges.
The existing intensive management programs and requests for
similar programs from other parts of the state have placed a
major financial burden on the Division of Wildlife
Conservation in the Department of Fish and Game. Although
funds have been prioritized within the division to cover many
of the most important expenses for these programs, the
biological data gathering and administrative costs needed to
support these programs has escalated beyond the capacity of
the division to respond.
This CIP [capital improvement project] demonstrates the
legislature's intent that the Intensive Management laws be
implemented to the maximum extent possible.
Co-Chair Wilken moved for adoption.
5:10:48 PM
Co-Chair Green overviewed the explanatory statement.
Senator Hoffman supported the amendment.
Co-Chair Wilken commented that the commissioner had submitted a
funding request approximately one month ago. However, the plan he
proposed was unclear. Upon the Committee's request, the Department
resubmitted a plan detailing the predator control program
specifically targeting wolf and bear.
There being no objection, Amendment #62 was ADOPTED.
AT EASE 5:12:10 PM / 5:13:10 PM
Amended Amendment #9: This amendment inserts a new Bristol Bay
Borough Community Mapping Project component to the Grants to
Municipalities (AS 37.05.315) BRU of the Department of Commerce,
Community and Economic Development on page 8, lines 11 and 12. This
amendment also appropriates $150,000 general funds to the
component.
This amendment also increases the general fund appropriation to the
Department of Commerce, Community and Economic Development, Grants
to Municipalities (AS 37.05.315) BRU, City of Unalaska - Boat
Harbor (HD 37) component on page 13 lines 3 and 4 from $2 million
to $4 million.
This amendment also adds a new Togiak/Twin Hills Bridge Feasibility
Study component to the Department of Transportation and Public
Facilities and appropriates $150,000 general funds to the
component.
This amendment also increases the general fund allocation to the
Department of Education and Early Development, School Construction
Grant Fund (AS 14.11.005) BRU, Dillingham Middle/High School
construction and renovation - Dillingham City Schools (HD 38)
component on page 83 lines 14 - 17 from $7 million to $9.5 million.
The amendment to the amendment also adds a new Aleutians East
Borough - Cold Bay Airport Terminal component to the Grants to
Municipalities (AS 37.05.315) BRU, Department of Commerce,
Community and Economic Development and appropriates $500,000
general funds to the component.
Co-Chair Green announced that Amendment #9 was again before the
Committee. This amendment was amended and adopted at the previous
hearing.
Ms. Blaisdell reminded that this amendment had been amended and
outlined the changes.
Ms. Blaisdell indicated the amendment to the amendment to remove
from the amendment, the Cold Bay access Improvements component from
the Surface Transportation Improvements, Department of
Transportation and Public Facilities, on page 58, lines 30 and 31,
and the increased general fund appropriation to the component was
in error.
Ms. Blaisdell stated that the amendment to the amendment should
have provided that the component remain in the bill and the $2
million appropriation contained in the committee substitute remain
unchanged.
5:15:08 PM
Senator Olson asked if the airport terminal project is located at
Cold Bay or Sand Point.
Ms. Blaisdell responded the appropriation would be made to the
Aleutians East Borough not to Sand Point.
Co-Chair Green clarified the grant would be provided to the
Aleutians East Borough and is comprised of general funds.
[Note: No motions were offered and no formal action was taken on
the amendment. The Committee's intent was not specified.]
AT EASE 5:16:03 PM / 5:35:19 PM
Amendment #63: This amendment inserts a new bill section to
appropriate $985,000 general funds to the Department of Fish and
Game for Chitna Personal Dip Net Fishery (HD 99). Accompanying
explanatory language reads as follows.
This amendment funds dumpsters, transporter vehicle to carry
dumpsters to the landfill, portable outhouses, service truck
to service outhouses and concession building all to be located
at Chitna for the services of the Chitna personal dip net
fishery. Also includes signage and access design.
Co-Chair Wilken moved for adoption.
Co-Chair Green objected.
Co-Chair Wilken corrected the amendment to appropriate the funding
to the Department of Natural Resources rather than the Department
of Fish and Game.
Co-Chair Wilken explained the need for facilities at the Chitna
River to provide access. This funding request is the result of
months of consideration and negotiation between the Native
corporation landowner and the Department of Natural Resources. A
survey would be conducted to establish future claims.
Senator Stedman clarified this request is for "start-up money" and
to develop a plan for future operations.
Co-Chair Wilken understood this is a capital appropriation. The
intent is that user fees collected from fishers would support the
program in the future.
SENATOR RALPH SEEKINS elaborated about the personal use fishery at
Chitna, which he is very familiar with. A dip net fishery plan to
mitigate the impact of the fishery on the local community has been
anticipated. Approximately 20,000 personal use dip net permits are
sold for this fishery every year. Administration of the mitigation
program would be similar to that utilized for a State park.
Participants would be required to utilize the facilities provided
and minimize impact. Previously, facilities such as dumpsters and
portable toilets were not available, which resulted in an unhealthy
and unsightly situation. This funding request is to address the
first stage of the need and is supported by Department of Natural
Resources Commissioner Tom Irwin and Governor Murkowski.
5:41:11 PM
Co-Chair Green thanked Senator Seekins for proposing the amendment.
Co-Chair Green ordered the amendment HELD in Committee. She noted
that all State parks are in need of funds and should be addressed.
Senator Seekins emphasized the significant impact of the 20,000
participants to the area.
Co-Chair Green ordered the bill HELD in Committee.
5:42:44 PM
AT EASE 5:43:08 PM / 5:44:18 PM
CS FOR HOUSE BILL NO. 61(FIN)
"An Act relating to Calcutta pools and crane classics as
authorized forms of charitable gaming."
This was the first hearing for this bill in the Senate Finance
Committee.
SHALON SZYMANSKI, Staff to Representative Lesil McGuire, the bill's
sponsor, explained that current State law contains "a very narrow
and specific list of allowable games of chance and skill for
charitable purposes". This bill would add Calcutta pools and crane
classics to that list. "Calcutta pools have been held in the past
and they have proven to be a very effective way to raise money for
charities across the State." The operation of a Calcutta pool would
consist of the following scenario: the day before the sporting
event, people would bid, in an auction format, on the team that
they believe would win the tournament; and the winning team's high
bidder would receive a predetermined percentage of the pot. This
bill would require that at least 50-percent of the pot be provided
to the charity. Other limitations specify that a Calcutta pool
could only be held in conjunction with a sporting event occurring
within the State of Alaska; could not be held in conjunction with
elementary, secondary, or post-secondary schools or other youth
sporting event organizations; bid participants must be at least 18
years of age; and the event must be conducted in an auction format
to which a permit issued by the Department of Revenue must be
acquired.
5:46:26 PM
Ms. Szymanski pointed out that only one Calcutta permit could be
issued per event, and that the only entity that could obtain the
permit would be the person or organization holding the event. For
example, only one Calcutta permit could be issued in regards to the
Iditarod Sled Dog Race, and the Iditarod Committee would be the
only entity that could request that permit from the Department of
Revenue. She reiterated that no less than 50-percent of the
Calcutta earnings could be provided to the charity.
Ms. Szymanski avowed that inclusion of Calcutta games in the list
of allowable games of chance would incur "no more harm than other
charitable games events" that are permitted. Examples of permitted
games would include rat races, pull-tabs, and classics.
5:47:26 PM
Co-Chair Green asked for clarity as to whether a Calcutta pool
permit would be limited to a specific one-time event.
Ms. Szymanski replied in the affirmative. One permit per sporting
event would be issued.
Co-Chair Green understood therefore that a single permit could not
be utilized for an entire football season.
Ms. Szymanski affirmed that it could not; an individual permit
would be required for each football game.
Senator Stedman professed being unfamiliar with this gambling
scenario, and, to that point, he asked for further clarification as
to whether the football game, for example, must occur in the State
of Alaska.
Ms. Szymanski confirmed that the game must take place within the
State.
Co-Chair Wilken asked whether Calcutta pools are currently being
conducted in the State.
Ms. Szymanski replied that, "there have been Calcutta pools held in
the past". A [unidentified] legal opinion issued a few years
earlier ruled, "that Calcutta pools are an illegal activity". Most
organizations ceased conducting Calcutta pools after that ruling.
Co-Chair Wilken understood therefore that the State does not
differentiate between Calcutta games conducted by non-profit
organizations or other entities. Therefore, the Court ruling could
be characterized as "a blanket" ruling that prohibited any Calcutta
game from occurring in the State.
Ms. Szymanski affirmed.
Co-Chair Wilken understood therefore that this legislation would
alter that scenario.
Ms. Szymanski affirmed.
Co-Chair Green interjected that this legislation would specifically
state that Calcutta games would be limited to charitable gaming.
Senator Dyson furthered Senator Stedman's question by asking for
confirmation that both the Calcutta pool and the event must be held
in the State of Alaska.
Ms. Szymanski clarified that the event must be held in the State.
For instance, a hockey game to which a Calcutta pool was being held
must be played in the State.
Senator Dyson asked whether for-profit businesses could be involved
in organizing and conducting a Calcutta game.
Ms. Szymanski expressed that the bill would specifically apply to a
non-profit organization that is raising money for charitable
purposes. Therefore, a for-profit business would not be eligible to
obtain a permit for a Calcutta pool.
5:50:37 PM
Senator Dyson noted however, that there are numerous "organizations
hustling around looking for charities who, they can 'quote help
out' by doing some charitable gaming for them. Such organizations
make a significant amount of revenue out of doing this charitable
gaming fundraising activity on behalf of some charity." The
question is therefore, whether this legislation would "engender
that activity".
Ms. Szymanski replied that "significant changes" have been made "to
the bill to insure that its only non-profit organizations that can
obtain the permit".
Senator Dyson opined that for-profit entities seek out non-profit
organizations; they "offer to help" the non-profit by raising money
from a large number of people who traditionally had not helped that
organization. They offer to assist in obtaining the permit,
conducting the event, and to share the proceeds with the non-profit
organization.
Ms. Szymanski stated that the bill does contain language to prevent
the hiring of an outside operator to run the event. That language
is located in Sec. 4 page two beginning on line 19.
Senator Dyson appreciated the inclusion of such language.
Co-Chair Green asked for further explanation of the "other than a
Calcutta pool" language specified in Sec. 4.
Ms. Szymanski expressed that that language would prohibit the
hiring of an operator to run the pool.
5:53:03 PM
Co-Chair Green asked for "the best example" of an event and how the
pool would be facilitated.
Ms. Szymanski expressed that most organizations would hold a
reception the evening before the actual sporting event. An auction
would be conducted at that reception. People would bid on the team
they thought would win. Traditionally, Calcutta games have been
held in conjunction with pool or golf tournaments due to the large
number of teams that are usually involved.
Co-Chair Green ascertained therefore that the income would be
generated from the people who bet on the different teams. 50-
percent of the money received would be provided to the winner of
the pool and 50-percent would be provided to the charity.
Ms. Szymanski affirmed.
Co-Chair Green understood that there would be no holding, handling,
finders, or event fees.
Ms. Szymanski stated that that was correct.
5:54:29 PM
Senator Stedman noted that most of the information in the bill
packet examples Calcutta pools that have been held in states such
as Montana, Wyoming, and North Dakota. He was curious as to the
impact these pools might have incurred to those states and their
citizens. He asked whether these games would be more popular in one
region of the state verses another; in other words, would there be
an expectation that this game would be more popular in Anchorage
and Fairbanks than in other areas of the State.
Ms. Szymanski stated that Calcutta pools could occur in any area of
the State. An area with a large number of golf courses might
experience more golf-related Calcutta events.
5:55:53 PM
Co-Chair Green surmised that "the normal trend" would be that the
event must attract a crowd. Therefore a more populated area might
hold more Calcutta events.
Ms. Szymanski agreed. Another factor would be the charity itself.
The goal would be to attract as many people as possible to the
auction in order to raise money for the charity.
Senator Stedman asked the reason that more states are not involved
in this endeavor.
Ms. Szymanski replied that Alaska is "one of the few states that
does not allow legalized gambling", even on the reservations. This
"is very different" from other states, many of which have casinos.
North Dakota and Montana are similar to Alaska in this regard.
Co-Chair Green stated that Alaska is one of the few states that
limits gaming to pull-tabs and bingo.
Ms. Szymanski affirmed. The State is "very strict when it comes to
allowing the expansion of gaming in any way". The scenario is
however "different when it comes to raising money for charities".
It is "a fun way to raise money for charities" as long as
limitations are in place. The State would not allow "charitable
gaming to rise to a level that none of us would want to see". This
bill would incorporate "significant limitations to insure that the
charitable gaming in this case would not get out of hand…"
Senator Dyson asked regarding the magnitude of the monetary prize
in a Calcutta event involving 300 people.
Ms. Szymanski responded that it would depend on the amount of money
that was raised during the auction. People might bid anywhere from
$20 to $1,000 on a team. At the end of the auction, the money would
be placed into a pot, and upon the conclusion of the sports
tournament, the high bidder of the winning team would be given
their percentage of the money. The amount of that money would
depend on a number of factors including the number of bidders and
the amount of money being bid on each team.
5:59:15 PM
Senator Dyson asked whether a $300,000 pot might be possible.
Ms. Szymanski affirmed that it could.
Senator Hoffman asked regarding the Sand Hills Crane Classic.
Ms. Szymanski noted that the Sand Hills Crane Classic was added
during the bill's hearing in the House of Representatives House
Finance Committee, at the urging of Representative Mark Neuman. The
Sand Hills Crane Classic occurs in the Talkeetna area. People would
guess the time and date of when the cranes would land on a pond in
that area. People would buy a ticket and make their guess. The
person closest to the actual time would win a percent of the money
raised through the ticket sales.
REPRESENTATIVE MARK NEUMAN explained that a group of public radio
supporters in Talkeetna have a non-profit gaming license though
which they are seeking to hold an event to raise money for the
public radio station. The event would be similar to the Nenana Ice
Classic, as the organizers would set of a series of cameras to film
the Sand Hills Cranes as they land on the pond during their annual
migration through the area. In addition to supporting Talkeetna
public radio, a portion of the money would be used to protect the
area in which the pond is located. The Sand Hills Crane Classic
must be added to the list of permissible gaming events in order to
conduct the event.
6:02:15 PM
JEFF BARNHILL, Representative, Palmer Golf Course, testified via
teleconference from offnet site and voiced support for the
legislation. Like other golf courses, tournaments comprise 30-
percent of the Palmer Golf Course's business. The majority of the
tournaments are fund-raisers for non-profits. A Calcutta would
provide another opportunity through which to raise money for non-
profits such as the Boys and Girls Clubs. Any additional
tournaments that might result would positively impact the golf
course by encouraging more business. Most areas of the State host
some events to which a Calcutta could apply. A Calcutta would not
incur any costs to the State.
6:05:23 PM
Co-Chair Green noted that the testifier had identified a youth
organization as a possible recipient of Calcutta funds. To that
point, she asked whether youth organizations would be eligible for
Calcutta events.
Ms. Szymanski clarified that the only restriction in the bill is
that a Calcutta could not be held in regards to a youth
organization's sporting event such as a youth soccer game. However,
money could be raised to support a youth organization.
Co-Chair Green understood therefore that raising money for a youth
organization would be permissible.
Ms. Szymanski affirmed.
Senator Stedman asked whether a fishing derby could qualify as a
Calcutta.
Ms. Szymanski qualified that the event must include teams that
could be auctioned off.
Senator Stedman asked whether a boat or a team on a boat could be
recognized as a team.
Ms. Szymanski affirmed that competing boats would qualify for a
Calcutta as people could bid on which boat would win.
6:06:59 PM
Senator Olson asked the origin of the name.
6:07:10 PM
Ms. Szymanski stated that the game had originated in regards to
horseraces that were held in Calcutta India.
Senator Olson asked whether a single entrant such as a dog team in
the Iditarod Sled Dog Race would qualify as a team as opposed to a
basketball team.
Ms. Szymanski responded that an entrant could be a team or an
individual.
AT EASE 6:08:04 PM / 6:09:52 PM
The bill was HELD in Committee.
CS FOR HOUSE BILL NO. 33(FIN)
"An Act relating to required notification of the Department of
Commerce, Community, and Economic Development, economic effect
statements, and regulatory flexibility analyses regarding the
adoption of regulations that may govern the conduct of small
businesses; relating to a private cause of action, regulation
invalidation, and judicial review related to required
notification, economic effect statements, and regulatory
flexibility analyses for the adoption of regulations that may
govern the conduct of small businesses; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
MICHAEL PAWLOWSKI, Staff to Representative Kevin Meyer, the bill's
sponsor, explained that the basis for this bill was the federal
Regulatory Flexibility Act of 1980. That Act directed regulatory
agencies to "first consider the economic effect" a regulation would
incur on small businesses, and secondly "consider an alternative
method of achieving the same statutory or regulatory goal". While
this Act has been in effect for 25-years, President George Bush has
furthered "the Small Business Regulatory Reform Act as a model for
states to adopt to consider ways of lowering the burden of state
regulations on small businesses."
Mr. Pawlowski characterized this bill as being "loosely patterned
after the model legislation that the Office of Small Business
Administration made available for states". A "significant and
detailed process" has been conducted "to bring it into alliance and
to make it work for the State of Alaska". It would direct four
designated state agencies "to consider the economic impact of their
regulations on small business". Consideration should be given to
such things as "the cost of compliance" and to determine other
methods through which to accomplish such compliance. The Department
of Commerce, Community and Economic Development would be asked to
take the "lead advisory role, essentially a small business advocate
position" in this endeavor "to provide a check in the regulatory
process and a voice for the needs of small businesses".
Mr. Pawlowski noted that Members' packets contain a letter of
support from the Alaska State Chamber of Commerce, dated March 15,
2005 [copy on file] and addressed to Representative Meyer.
Co-Chair Wilken voiced his support for the effort and intent of the
legislation. However, he questioned the need to add a $100,000 a
year position to coordinate the program, as reflected in the April
15, 2005 fiscal note #11 from the Department of Commerce, Community
and Economic Development. He opined that the Department should be
able to conduct this effort through its "normal course of everyday
business".
Mr. Pawlowski informed the Committee that several fiscal notes were
added to the bill during its deliberations in the House of
Representatives. One of those notes was as high as $217,000.
Representative Meyer "was taken aback" at the agencies' position
that "the expertise" that would be required to conduct this program
was currently unavailable in the departments. While current
department personnel "are really dedicated to achieving the
statutory goals that are put on them, and, as the same time they
come up with regulations …. the thought process of what that small
business is going to have to go through to meet the demands of the
regulations doesn't happen". The Governor's Office "felt very
strongly that an adequately funded and very strong position to be
that small business advocate would make this program successful
given the experience in the current regulatory format".
Mr. Pawlowski conveyed that utilizing small business license fees
to fund this position had been discussed but not advanced, as not
doing so would "demonstrate" to small businesses "that the State
was giving back to small businesses from the fees that they were
paying into the State". Representative Meyer supported that
decision and believes that the position is necessary.
Co-Chair Green asked for an example of how the program would work.
6:14:55 PM
Mr. Pawlowski directed Members to a flowchart titled "Steps in the
Regulation Adoption Process Under HB33" [copy on file], which
depicts how the process would be conducted. The basis for the
flowchart is the current "Drafting Manual for Administrative
Regulations". The shaded portions on the chart indicate the steps
that would be added to the process by the adoption of this bill.
Mr. Pawlowski noted that the Department of Transportation and
Public Facilities is not designated as one of the four agencies to
which this legislation would apply as the manner in which that
Department conducts its business is deemed as being "outside of the
intent of the bill". A standard has been designated, as reflected
in Sec. 1(i)(3) on page four lines 20-23 that would apply to "the
regulations that govern the conduct of small businesses; that means
the manner in which a small business conducts its business
activities". The issue pertinent to the bill is exampled by a
recent Department of Health and Social Services regulations
pertaining to child care centers that describe such things as the
size of the required trashcans; the size of the waste paper baskets
that those trashcans must contain; and provisions requiring that a
toy that has gone into the mouth of a child must be sanitized
before it could be used by another child. The question is what how
much money it would cost a childcare center, serving 30 children
for example, to adhere to all the regulations. That is what governs
the conduct standard "that would trigger when this review would be
necessary".
Mr. Pawlowski explained that this legislation would incur a change
in the process when the agency making the regulation would consult
with the Department of Law in that regard as reflected at Step 4 on
the aforementioned flowchart. The change would be that the agency
must also notify the person holding the new position requested in
fiscal note #11, in the Department of Commerce, Community and
Economic Development, who would then assist and advise throughout
the public comment process. Then the agency, assisted by the person
from Department of Commerce, Community and Economic Development,
would utilize information obtained from the public comment process
and other information from their files to follow the nine Economic
Effect Statement criteria added by this bill and depicted in the
large shaded area on the flowchart. This criterion is specified as
follows.
Economic Effects Statement:
· Estimate of small businesses effected.
· Proposed recordkeeping and admin. Costs.
· Statement of economic effect.
· Description of alternate methods.
Regulatory Flexibility Analysis: (examine)
· Less stringent compliance or reporting requirements.
· Less stringent compliance or reporting deadlines.
· Consolidation or simplification of compliance or reporting.
· Establishment of performance standards to replace design or
operational standards.
· Exemption of small businesses.
Mr. Pawlowski stated that the alternative methods included in the
Economic Effect Statement "would be achieved by working through the
Regulatory Flexibility Analysis", whose components have been
utilized for 25-years at the federal level. The development of less
stringent compliance or reporting deadlines could be accomplished
by simply allowing a business to report annually, quarterly,
monthly, or biannually depending on the size of the business.
Mr. Pawlowski stated that poorly written regulations would be
resubmitted to the Legislature for further reworking. "HB 33 is
about trying to do it right in the first place."
6:20:05 PM
Co-Chair Wilken recalled that Senator Gene Therriault had, in the
last few years, submitted legislation that had inserted the
Legislature into the flow chart process.
Co-Chair Green asked whether that legislation had pertained to the
Administrative Regulation Review process.
Co-Chair Wilken could not recall the exact bill number, but did
recall that it had allowed the Legislature to be included in the
process by the inclusion of a Regulations Review Committee. He
questioned the reason that that recently added step was not
reflected in the flowchart.
Mr. Pawlowski affirmed that legislation establishing the
Administrative Regulation Review process was adopted two years
prior. Further clarification of its inclusion was conducted the
previous Session. That step is reflected on the chart at Step 11.
He noted that the bill's sponsor feels that HB 33 is necessary
because, rather than taking "the word" of the Administrative
Regulation Review Committee, this legislation would provide written
documentation based on the nine aforementioned guidelines that the
regulations pertaining to small businesses would be analyzed to the
benefit of small businesses.
Co-Chair Wilken acknowledged.
6:22:49 PM
STEVE WEAVER, Assistant Attorney General, Legislation & Regulations
Section, Office of the Attorney General, Department of Law, shared
that the Governor Frank Murkowski Administration supports the bill.
The impact of regulations on small businesses "has been an
important issue" to the Governor for quite a while. The legislation
has, as a result of its Legislative hearings, evolved into a very
workable bill for the State. The Small Business Advocate position
that would be created in the Department of Community and Economic
Development "would be very helpful in the process" as it would
assist the agencies "to put considerations of small business
impacts into the process in a consistent fashion; to provide a one
stop shopping source for that, and to avoid more costly alternative
processes such as hiring outside consultants which agencies might
need to do otherwise. The emphasis was on making this bill as cost
effective as possible for the Administration."
6:24:20 PM
Co-Chair Green voiced acceptance of the Small Business Advocacy
position. However, she noted that legislative mandates such as the
requirement that businesses must have insurance coverage, impacts
businesses across the state, regardless of their size. Another
broad size requirement is exampled by licensing fees.
6:25:30 PM
Co-Chair Green inquired as to whether the emphasis on small
businesses is due to the fact that there is a Small Business
Administration.
Mr. Pawlowski replied that the emphasis on small business, which is
defined as a business with 100 or less employees, would affect more
than 170,000 people in the State. "That's over half of the State's
workforce." The emphasis is due to the fact that "small businesses
typically do not have the resources to be involved in the
regulatory process. They don't have the ability or attention to pay
or the time to pay; their workforce is spread relatively thin. A
large business would have the time to devote to it."
Mr. Pawlowski noted that such things as user fees would not be
affected by this legislation. Continuing, he noted that the
Medicaid and Medicare cost reimbursement regulations are excluded
from the legislation, for "when the Legislature directs something
as a cost containment provision" to, for instance, the Department
of Health and Social Services, it might "save up to $15 million
dollars a year", and a one-day delay in the issuance of those
regulations could cost the State between $40,000 and $57,000. The
cost benefits to a business would not be that extreme.
6:26:34 PM
Co-Chair Green voiced appreciation for the explanation.
The bill was ordered HELD in Committee.
6:26:44 PM
SENATE CS FOR CS FOR HOUSE BILL NO. 149(JUD)
"An Act relating to controlled substances regarding the crimes
of manslaughter and misconduct involving a controlled
substance; relating to the manufacture of methamphetamine and
to the sale, possession, and delivery of certain substances
and precursors used in the manufacture of methamphetamine;
relating to listing certain anabolic steroids as controlled
substances; relating to the listing of property that
constitutes an illegal drug manufacturing site; amending Rule
41, Alaska Rules of Criminal Procedure; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
6:27:16 PM
JANE PEARSON, Staff to Representative Jay Ramras, the bill's
sponsor, stated that this bill, which is a hybrid of "the best"
components of SB 70-CRIMES INVOLVING CONTROLLED SUBSTANCES and SB
106-SALE OF METHAMPHETAMINE AND PRECURSORS, has evolved into "a
truly comprehensive piece of legislation". By dealing "directly
with the problems our society is facing regarding the growing abuse
of methamphetamines and anabolic steroids", this bill "would serve
to combat the growing and immediate problems associated with drug
manufacturing abuse in the State".
Ms. Pearson informed that Alaska is experiencing "a growing problem
with methamphetamines being made in small local mom and pop type
laboratories". The manufacturing of methamphetamines produces toxic
waste into the environment. The activity is dangerous as it could
result in fires, explosions, and endangerment to law enforcement,
other emergency service personnel, and the community. Seven pounds
of toxic waste could be the byproduct of each pound of
methamphetamine (meth) that is produced.
Ms. Pearson stated that by limiting the quantity of sole ingredient
pseudoephedrines that could be purchased in a 30-day period to nine
grams, this legislation would impact the ability of criminals to
purchase pseudoephedrines, iodine crystals, and phosphorus, which
are the three products utilized to manufacture methamphetamines. In
addition, such products would be contained behind a service counter
in a store and a log of such purchases must be kept and made
available to law enforcement officers upon request. "Iodine crystal
purchases must also be logged". The logs would allow law
enforcement officers to "see who is purchasing the chemicals".
Other components of the bill would implement distribution,
registration and record-keeping provisions for wholesalers,
manufacturers, distributors, and retailers who sell such products.
Those who knowingly violate the requirements would face a Class "A"
misdemeanor charge, "punishable by a fine of up to $10,000".
Ms. Pearson also noted that the bill would allow for a charge of
manslaughter to be levied against the manufacturer or deliverer of
meth were a person to die from its usage.
Ms. Pearson stated that due to the dangers imposed by the
manufacturing of meth, this bill "would increase the bond for a
meth manufacturer with a previous felony methamphetamine conviction
to a minimum of a $250,000 cash bond". Presumptive sentencing of
both "A" and "B" felonies for a person manufacturing meth with a
child present would also be increased.
Ms. Pearson conveyed that this legislation would also serve to make
anabolic steroids a Class 5A controlled substance. Use of steroids,
which are used to increase muscle mass, has been on the increase in
the State, and abuses is occurring in people as young as the junior
high school level. These abuses have been found to cause heart
disease, liver damage, and other unwanted physical side affects.
Ms. Pearson stated that "the bill would also amend" State Statutes
pertaining to the requirement that the Department of Environmental
Conservation keep records of certain contaminated drug
manufacturing sites on their website. This information must be
maintained "on the website for five years after the property has
been deemed fit for use".
Ms. Pearson reiterated that meth production and use, and steroid
abuses are on the increase in the State. She asked the Committee to
support the bill and move it out of Committee.
[NOTE: Co-Chair Wilken assumed chair of the Committee.]
6:31:09 PM
REPRESENTATIVE JAY RAMRAS, the bill's sponsor, informed the
Committee that Ms. Pearson and Senator Gretchen Guess have assisted
in the development of this "terrific omnibus drug bill" which would
address a multitude of concerns, including the increased use and
manufacturing of meth. The bill would also include provisions
through which to hold landlords more responsible for whom they rent
to. He reiterated Ms. Pearson's comments that the legislation would
"help control" the availability of substances sold by retailers
that are used in the manufacturing of meth.
Representative Ramras explained that the regulations in the bill
that are applicable to retailers would assist in deterring the
practice referred to as "smerfing". Smerfing occurs "when a
collection of young people … who use meth, gather up the raw
ingredients and deliver them to the meth cook and the meth lab".
Representative Ramras addressed the bill's fiscal impact by stating
that the bill would generate a positive fiscal note, as other
states that "have adopted a very proactive approach" in restricting
the supply of products used in meth manufacturing via such means as
requiring retailers to log such product purchases, have experienced
a tremendous decline in meth production and meth labs; thereby
allowing law enforcement resources to be used elsewhere. A
reduction in steroid use would also occur. This legislation would
be beneficial to the State.
Co-Chair Wilken noted that, due to the fact that a [unspecified]
testifier who supports the bill would not be available until the
following day, the bill would be held in Committee.
Senator Olson understood that the maximum amount of pseudoephedrine
that could be purchased was nine grams.
Ms. Pearson expressed that the nine-gram quantity would equate to
three boxes of the specified drugs.
Senator Olson asked regarding language in Sec. 3(d)(2) page four,
line nine of the bill that specifies a quantity "of less than 24
grams" of the affected drugs.
Ms. Pearson clarified that the bill was amended to include that
language. It is specific to the quantities that could on hand at
such places as lodges, schools, daycare centers, or treatment
centers. Those places might purchase larger quantities due to the
nature or location of their activity. Such items must be secured in
a locked storage area.
Senator Olson asked the nature of the log that a small remotely
located business would be required to maintain pertaining to the
sale of the over-the-counter drug "Sudafed".
Ms. Pearson stated that the information required in the log would
include valid government issued photo identification and other
information as determined by the Department of Public Safety.
Senator Olson remarked that this "would be quite a burden for
someone" who just wanted to purchase Sudafed to relieve their cold
symptoms.
Representative Ramras acknowledged that the concern about "how to
apply this fairly" has been an issue throughout the development of
the bill. While the meth issue is primarily an urban problem, any
action addressing it would affect, for instance, elderly tourists
who might be seeking cold relief or people living in rural areas in
which meth abuse is less frequent of an issue. Some supporters of
this legislation desire to have the information in the logbooks
electronically transmitted to the Department of Public Safety.
However, he had countered that such action would serve to inform
the Department of Public Safety of everyone who had a cold last
year. "The middle road" that has been developed would include
having a logbook that would be kept confidential so that such
things as identity thief and target marketing would be kept to a
minimum. Local law authority would be able to access the logs. As
an aside he noted that the community of "North Pole is a particular
hot bed for meth labs". Specific language in this regard is located
in Sec. 11(e) pertaining to municipalities and Sec. 11(f)
pertaining to law enforcement agency as denoted on page ten, lines
22 through 30.
(e) Notwithstanding (a) of this section, if a municipality
enacts an ordinance requiring wholesalers, manufacturers, and
distributors to report the information maintained under (a) of
this section, each wholesaler, manufacturer, and distributor
shall regularly report that information to the municipal
police department at intervals required in the ordinance.
(f) Upon the written request of any law enforcement agency,
any wholesaler, manufacturer, distributor, or a retailer shall
report electronically or by mail the information collected in
(a) or (b) of this section for the six month period following
the written request.
Representative Ramras acknowledged that the concern voiced by
Senator Olson about how this legislation would affect a small
retailer in a remote community in which there is no meth problem
has not been addressed in this bill. Unfortunately, while there
might not currently be a meth problem in an area, the problem "pops
up everywhere". Any community could be "vulnerable" to it. The
requirement would be that a logbook be kept and provided, upon
request, to law enforcement. There would be no requirement to
transmit the information at specified intervals unless a
municipality adopted such policy.
6:38:00 PM
Senator Olson agreed that a meth lab could operate anywhere. One
was recently discovered in the community of Bethel. His concern
however, was to evaluate whether the logbook requirement would be a
burden on "small mom and pop stores".
6:38:37 PM
Representative Ramras voiced that the desire was to prevent the
provisions of the bill from being such "a burden on commerce" that
a small convenience store might choose not to carry Sudafed. That
action could be detrimental to a small business, as customers,
knowing that Sudafed was no longer available there, would shop at a
larger store to buy, not only Sudafed but also other incidentals
that they would have purchased had they shopped at the convenience
store. The intent would not be to drive business from small
independent businesses to larger businesses such as WalMart or Fred
Meyer or Safeway. He disclosed, "being mindful of that burden
throughout" the development of this bill. He stressed that signing
the logbook would be no different that showing identification to
enter a bar or signing for a prescription at a drug store.
Senator Olson understood that the logbook would require the
purchaser's signature.
Representative Ramras deferred to Dean Guaneli of the Attorney
General's Office to answer that question.
6:40:26 PM
DEAN GUANELI, Chief Assistance Attorney General, Criminal Division,
Office of the Attorney General, Department of Law, informed the
Committee that the entirety of the provisions that were included in
SB 70-CRIMES INVOLVING CONTROLLED SUBSTANCES, which was legislation
sponsored by Governor Frank Murkowski, have been included in this
"comprehensive methamphetamine bill". The Department of Law
supports all the provisions in HB 149. Representative Ramras worked
diligently with the pharmaceutical industry to develop provisions
that were acceptable to them as well as to address the needs of law
enforcement.
Mr. Guaneli stated that the nine-gram determination "is actually a
fair amount of pseudoephedrine". Other states have adopted a six-
gram level. The largest packet available for resale contains 96
pills, which is "just under three grams". This supply would equate
to 24 days of usage for an adult and twice that for a child. The
warnings on the packet specify seeking a doctor's advice if more
than a seven days usage is needed for treatment. In summary, the
nine-gram quantity would allow people in Rural Alaska and elsewhere
to have an amount that would sustain their needs for a long period
of time.
Co-Chair Wilken, noting that Senator Gretchen Guess was in
attendance, asked the Senator to participate in the discussion, as
he understood that portions of a separate bill she had developed
had been incorporated into this bill.
6:42:30 PM
Senator Olson pointed out that numerous products containing the
drugs and chemicals specified in this bill were available for
purchase over the Internet or through the mail.
Mr. Guaneli communicated that this would continue to be a challenge
to law enforcement. Law enforcement officers have testified that
"100-percent of the product uncovered at meth labs" found in the
State, are in the pure form available at local retail outlets.
"Once that source of raw material dries up", other sources would be
sought. Other pseudoephedrine sources might include the Internet.
Other bulk pseudoephedrine sources could be uncovered.
Mr. Guaneli likened the transport of these items to the transport
of illegal substances such as cocaine and heroine that are
manufactured outside of the State and brought in. Law enforcement
would need "to be vigilant at airports" and continue their good
working relationship with the United States Postal Service in order
to seize contraband items prior to their reaching the State. "It
would be a constant challenge." Law enforcement personnel "are
aware that a shift" to other sources would occur.
6:44:26 PM
Representative Ramras stated that meth distribution in California
"is so advanced" that the people involved have masqueraded as
Federal Express personnel and have stolen "cases and cases of
Sudafed". Meth abuse should be addressed at the federal level.
35,000 pharmacies and large drug manufacturers have organized to
encourage federal regulation. Major drug manufacturers are
investigating how to produce Sudafed so that its active ingredients
could not be "cooked out".
Representative Ramras noted that most "meth heads don't have credit
cards"; they are "unsophisticated" cash buyers "who prey upon
communities".
6:45:44 PM
Co-Chair Wilken asked whether the logbook entries would be
sufficient to get a warrant.
6:46:01 PM
Mr. Guaneli understood that logbook entries would be one of the
components that could substantiate the issuance of a warrant.
"Possessing nine-grams is prima facie evidence of intent to sell."
A scenario could include that of a law enforcement officer asking
someone who was manufacturing meth where they got their raw
materials; the response might be that they got it from someone who
got it at the local WalMart. Law enforcement officers could then
review WalMart's logbook. Findings that that person had made a
number of such purchases over a period of time would provide
sufficient information to garner a warrant to search someone's car
and/or apartment. He noted however, that the purchase of more than
nine-grams in a 30-day period would carry more weight than a nine -
gram purchase over a six-month period. The shorter timeframe-
purchasing situation would likely be required in conjunction with
another illegal activity in order to have a warrant issued.
Representative Ramras shared that in the Fairbanks area, a member
of a group of "meth heads" "was arrested in three consecutive weeks
at three different hotels". A written record would assist in
tracking such individuals. The cost and time associated with
pursuing these illegal activities should also be a consideration.
Representative Ramras shared a story told to him by a woman who
works at a Fred Meyer store, whose corporate policy is that Sudafed
be kept behind the counter and purchases be limited to two boxes.
Through an activity referred to as "smerfing", groups of young
people, typically arriving in one car, would converge on a store
and individually go in and each buys two boxes of Sudafed. Through
such activity, the group could purchase between eight and twelve
boxes of Sudafed. The woman told him that after one recent smerfing
incident, she wrote down the license plate number of the car and
reported it to the Department of Public Safety. Good citizens are
concerned about the situation. The logbook would be very helpful to
law enforcement officials "for the purposes of a warrant or the
purpose of connecting all these people to the purchases of this
drug."
6:49:13 PM
Co-Chair Wilken asked regarding the criteria through which a law
enforcement officer could access the logbook.
Mr. Guaneli responded that the bill contains language to the effect
that they could access the logbook "at any reasonable time". No
warrant would be required.
6:49:48 PM
Co-Chair Wilken, noting the inclusion of a letter in Member's
packets from Carrs/Safeway, dated April 26, 2005 [copy on file],
mentioned that he had, just today, received a "well-written letter"
from Carrs/Safeway [copy not provided] about how this legislation
would affect their 25-stores. While he did not have the letter with
him, he asked that Representative Ramras review the letter and
respond to the concerns and points specified. He asked that a copy
of that response be provided to his office.
SENATOR GRETCHEN GUESS asked the date of the letter being
referenced.
Co-Chair Wilken was uncertain as to whether the letter was the one
in the packets or a more recent one.
Senator Guess informed the Committee that the Senate Judiciary
Committee had discussed the concerns specified in the April 26,
2005 letter, and that, with the lone exception being the continued
inclusion of the logbook; the store's concerns had been addressed
in the Judiciary committee substitute Version 24-LS0596\V before
the Committee. During the discussions with the store, their lack of
support for the logbook requirement was apparent. However, through
compromise, the Judiciary Committee included language that would
repeal the logbook in two years. However, the logbook issue could
be revisited were the Department of Public Safety and the
Legislature to determine that the logbook was essential in
deterring meth lab activity.
Co-Chair Wilken stated that he would verify the date of the letter
in question.
6:51:09 PM
Representative Ramras noted that in his experience as the owner of
several establishments that serve alcoholic beverages, a trained
bartender, regardless of how busy he or she was, would scrutinize a
piece of identification in order to assure that the name and face
on the identification were legitimate. "This is a reasonable burden
to put on somebody." While he appreciated the concerns brought by
Carrs/Safeway, "the greater good" would prevail. Similar
legislation in other states has achieved "extraordinary success".
6:52:07 PM
Representative Ramras expressed personally witnessing the
devastation created by meth addiction. It is easy to get "hooked
on". Rather than short-lived errant behavior, meth addiction
"wreaks" people as addiction could occur after using the drug even
one or two times. "They are lost to society." Therefore, "whatever
inconvenience the retailer has to suffer for the time being until
the pharmaceutical companies catch up to problem is okay by me".
While this might create a burden on commerce, Meth use is a
tremendous problem and "is a scourge on men and women age 18 to 29
and it is wreaking our homes and our schools and our workforce. It
is everywhere in our community. It is causing crime. Its something
that Carrs/Safeway needs to do as good corporate citizens and being
good neighbors."
6:53:17 PM
Co-Chair Wilken referred to the section of the April 26, 2005
letter from Carrs/Safeway, which expressed that the logbook would
be contrary to someone's right to privacy. A law-abiding citizen
simply seeking cold remedy should not be subject to such a public
event. It would be okay for law enforcement officers to review the
logbook were there cause, however, it would be unacceptable were
police simply "on a fishing expedition" and noted a law-abiding
citizen's name reflected there. That customer could get upset with
the retailer were that to occur. He asked how "a balance" could be
reached in this regard.
6:54:23 PM
Mr. Guaneli stated that from a legal standpoint, "the activity of
buying an over the counter drug in a large store is a lot different
than buying prescription medication where you go up to the
pharmacist counter and no one knows what you are buying". One could
simply take an over-the-counter drug off the shelf and proceed to
the regular checkout stand. There is a "much less expectation of
privacy" at a checkout stand.
Mr. Guaneli shared that shortly before the state of Iowa passed its
pseudoephedrine restrictions, a university consumer survey was
conducted. It found that 95-percent of consumers of such products
purchased one box at a time and 75-percent of the consumers did not
object to showing some sort of identification when making that
purchase. "Most people understand that there is a value to the
logbooks and they support that." In addition to the law enforcement
value, logbooks would provide "a deterrent effect for people", who
desire to misuse these products. To this point, Alaska State
Troopers have determined that people who use these drugs develop
paranoia, which would prevent them from wanting to show their
identification. "There are a lot of benefits to be gained."
Mr. Guaneli stated that it would be unlikely that the Alaska Court
System would "allow a lawsuit against a store" given "the nature of
the problem in Alaska and given that the material must be kept
confidential except for law enforcement use. The stores would be
"simply following the law as it's written" … that would not "be
cause for liability".
6:57:11 PM
Co-Chair Wilken asked whether this exposure issue had been
discussed with Carrs/Safeway to "some resolution".
Senator Guess affirmed that the issue had been addressed. The
Senate Judiciary Committee added an amendment to exempt stores from
civil liability "unless they knowingly or intentionally" broke the
confidentially requirement. This language is included in Sec. 11(g)
beginning on page ten, line 31 and continuing through line seven on
page eleven.
(g) The log required to be maintained by a retailer under (b)
of this section and the information entered into the log is
confidential. The retailer may not allow access to the log or
release information contained within the log except to the
Department of Public Safety or other law enforcement officers.
A retailer is not liable in a civil action for release of
information contained in the log in violation of the
confidentially requirement of this section unless the retailer
intentionally released the information or was aware at the
time of the release that the information was being released in
violation of this section.
6:57:52 PM
Representative Ramras noted that when processed in a meth lab,
Sudafed is "remarkable" as it delivers a substance that is 90-
percent pseudoephedrine. "Other multi-ingredient cold medicines"
produce only seven-percent pseudoephedrine substance. Thus, one
would be required to purchase in excess of $60 of other products to
yield the same amount of pseudoephedrine as a four-dollar Sudafed
purchase would yield. Were a consumer uncomfortable with the
logbook, they could purchase one of several hundred other multi-
ingredient cold medicines that would not be subject to this
legislation, which is specific to single ingredient cold
medications. Therefore, while a consumer might be discouraged from
purchasing a particular brand, other over the counter medicines
would be available. He noted that this differs from cigarette
purchases in that all cigarettes are located behind a secured
counter.
6:59:29 PM
Senator Hoffman asked whether the legislation includes any
provisions regarding the cross-referencing of logbooks by law
enforcement officials.
Mr. Guaneli clarified that the legislation does not contain any
"specific provisions" in this regard. He understood that larger
retail chains would be utilizing electronic formatted logbooks,
which could be easily sorted. Smaller stores would be more limited
in how their logbooks are organized. For investigative purposes, it
would be likely that the Alaska State Troopers could be required to
implement electronic sorting so that the files would be easier to
view.
7:00:27 PM
Senator Hoffman asked the reason that such specifications were not
included in the legislation, as cross-checking of names would be
helpful.
Mr. Guaneli noted that this issue was discussed during the bill's
development. In an effort to balance law enforcement needs with the
burden on small businesses, the language in the bill was deemed
acceptable to the needs of the Department of Public Safety.
Senator Hoffman argued that this "additional step should be taken"
given the fact that, as pointed out by Representative Ramras, using
meth even one or two times could be addictive. Non-aggressive
action in this manner would indicate that the nationwide meth
threat is not as severe as stated.
Representative Ramras stated that "we are trying to give law
enforcement the tools they asked for". It was determined, after
discussing the issue with the Department of Public Safety, that the
logbooks would be utilized as a reference. "For the Department to
have a record of everyone in the State who has had a cold in the
last twelve months" would be burdensome. The desire is that the
deterrents in this bill, combined with the child endangerment
language penalties, would sufficiently curtail the supply. Similar
legislation has proven to be quite successful in states such as
Oregon, Iowa, Oklahoma, and Nebraska. Such action would allow law
enforcement to redirect some of their resources toward other
endeavors.
7:03:43 PM
Representative Ramras expressed that setting up meth labs in rural
areas is attractive as the cooking process produces a terrible
smell. However, rural settings are not always the norm, as a meth
lab was found in an apartment building in Fairbanks in which the
District Attorneys' office occupied the first floor. This occurred
even though the landlord conducts thorough background checks on its
tenants. "This stuff is everywhere."
Representative Ramras commented that while there might be a desire
to more thoroughly perfect this process, the purpose of the
legislation is to identify those who are smerfing rather than the
tourist who is purchasing Sudafed to address a cold.
7:04:57 PM
Representative Ramras thanked the Committee for its attention to
"such an important issue" in the "waning days" of the Session.
Co-Chair Wilken noted that the bill would be HELD in Committee. It
would be brought back before the Committee the following day in
order to allow for additional testimony.
ADJOURNMENT
Co-Chair Wilken adjourned the meeting at 07:05 PM
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