Legislature(2007 - 2008)SENATE FINANCE 532

05/04/2007 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 104 NATURAL GAS PIPELINE PROJECT TELECONFERENCED
<Bill Hearing Canceled>
+ SB 111 KODIAK NARROW CAPE PUBLIC USE AREA TELECONFERENCED
Moved CSSB 111(RES) Out of Committee
+ HB 215 TASK FORCE RE: COUNCIL ON DOM. VIOL. TELECONFERENCED
Moved SCS CSHB 215(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                            MINUTES                                                                                           
                    SENATE FINANCE COMMITTEE                                                                                  
                          May 4, 2007                                                                                         
                           9:23 a.m.                                                                                          
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair  Bert  Stedman  convened the  meeting  at  approximately                                                               
9:23:58 AM.                                                                                                                   
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
Also  Attending:   SENATOR  GARY  STEVENS;   REPRESENTATIVE  ANNA                                                             
FAIRCLOUGH; DOUG LETCH, Staff to Senator Gary Stevens                                                                           
                                                                                                                                
Attending  via  Teleconference:  For  an  Offnet  Location:  DICK                                                             
MYLIUS, Director, Division of Mining,  Land and Water, Department                                                               
of Natural  Resources; From Kodiak:  JEROME SELBY,  Mayor, Kodiak                                                               
Island Borough                                                                                                                  
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB 215-TASK FORCE RE: COUNCIL ON DOM. VIOL.                                                                                     
                                                                                                                                
The  Committee  heard  from  the   bill's  sponsor,  adopted  one                                                               
amendment, and reported the bill from Committee.                                                                                
                                                                                                                                
SB 111-KODIAK NARROW CAPE PUBLIC USE AREA                                                                                       
                                                                                                                                
The Committee  heard from the  bill's sponsor, the  Department of                                                               
Natural Resources,  and took public testimony.  The bill reported                                                               
from Committee.                                                                                                                 
                                                                                                                                
9:25:12 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 215(HES)                                                                                             
     "An Act relating to the establishment of a task force to                                                                   
     review the Council on Domestic Violence and Sexual                                                                         
     Assault."                                                                                                                  
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH, the  bill's sponsor, informed the                                                               
Committee that this  bill would establish a task  force to review                                                               
the  Council  on  Domestic  Violence   and  Sexual  Assault  (the                                                               
Council).   Section  1   of  the   bill  addresses   the  State's                                                               
"unfortunate"  distinction  of being  ranked  number  one in  the                                                               
nation for  rape for the  past 20 years and  in the top  five for                                                               
the past 27 years. The State  is also experiencing an increase in                                                               
domestic violence, sexual assault, and interpersonal violence.                                                                  
                                                                                                                                
Representative   Fairclough  deemed   this  legislation   as  "an                                                               
opportunity to bring  together Legislative bodies to  look at how                                                               
the  Council   is  functioning  now"  to   address  interpersonal                                                               
violence" in  Alaska. The  bill is supported  by the  Council and                                                               
the  Alaska  Network  on Domestic  Violence  and  Sexual  Assault                                                               
(Alaska Network).                                                                                                               
                                                                                                                                
Representative Fairclough stated that  the "seven distinct areas"                                                               
depicted  in Sec.  2  subsection (c)(1)  through  (c)(7), page  3                                                               
lines 9  through 15, have  been identified in  either Legislative                                                               
Audit Division reports or by  Legislators as issues of continuing                                                               
concern.  They  have been  points  of  contention each  time  the                                                               
Council has been considered for reauthorization.                                                                                
                                                                                                                                
Representative Fairclough contended that  the Council is burdened                                                               
by having to comply with  approximately 30 audit recommendations.                                                               
This  legislation would  present an  opportunity to  "streamline"                                                               
the Council's  duties in "responding to  crisis intervention" and                                                               
"prevent or  change the way  that society looks  at interpersonal                                                               
violence".                                                                                                                      
                                                                                                                                
9:27:07 AM                                                                                                                    
                                                                                                                                
Senator  Thomas  agreed   that  a  review  of   the  Council  was                                                               
warranted, as,  in a  statistical sense, it  has not  appeared to                                                               
have had much impact on interpersonal violence.                                                                                 
                                                                                                                                
Senator Thomas asked  how the make-up of the  proposed task force                                                               
was  determined.  Even  though the  individuals  might  represent                                                               
pertinent entities, a 15 member task force might prove unwieldy.                                                                
                                                                                                                                
9:28:00 AM                                                                                                                    
                                                                                                                                
Representative Fairclough worked with  the executive directors of                                                               
the Council  and the Alaska Network  to determine the make  up of                                                               
the task force. The 21 member  programs of the Alaska Network had                                                               
also been  conferred with about  who should  have "a seat  at the                                                               
table".  All   current  members   of  the  Council   were  deemed                                                               
appropriate for  inclusion on  the task  force. For  example, the                                                               
Department of Public Safety could  provide hindsight as well as a                                                               
look forward since they would  be responding to domestic violence                                                               
and sexual  assault occurrences and  the Department of  Law would                                                               
be involved in trying the cases.                                                                                                
                                                                                                                                
Representative  Fairclough advised  that the  only new  entity on                                                               
the  task force  beyond  existing Council  members  would be  the                                                               
Department of Corrections.                                                                                                      
                                                                                                                                
Representative  Fairclough advised  that the  executive directors                                                               
of  the Council  and the  Alaska Network  would be  designated ex                                                               
officio members  in order to avoid  having "too much bias  in the                                                               
vote". The  executive director of  the Alaska  Network represents                                                               
victim  services  while the  executive  director  of the  Council                                                               
represents the administrative side  of equation. Their membership                                                               
on  the  task force  would  provide  insight  to things  such  as                                                               
criticism that  grants have been  inappropriately managed  or the                                                               
issue of internal turnover.                                                                                                     
                                                                                                                                
Representative  Fairclough specified  that the  task force  would                                                               
address  criticisms about  the Council  and assist  in developing                                                               
positive solutions to the issues.                                                                                               
                                                                                                                                
9:29:28 AM                                                                                                                    
                                                                                                                                
Senator Elton also supported a  review of the Council's work. One                                                               
area  of  concern  identified  in  one of  the  audits,  but  not                                                               
included in  the list in Sec.  2 is the concern  about "conflicts                                                               
of interest  in terms of having  people who are going  to benefit                                                               
from  decisions made  by the  Council";  specifically the  Alaska                                                               
Network member programs.                                                                                                        
                                                                                                                                
Senator  Elton was  also uncertain  whether the  seven identified                                                               
issues  addressed two  other concerns  he  deemed important:  one                                                               
being "the  number of  State personnel who  serve on  the Council                                                               
and the other  is having representatives of  Departments who also                                                               
benefit from the dollars distributed by the Council".                                                                           
                                                                                                                                
Representative  Fairclough thought  that  item (3)  of the  list,                                                               
which was "the  appointment process for members  of the council",                                                               
would  partially address  Senator Elton's  concerns. The  current                                                               
appointment process had  been altered to address  the conflict of                                                               
interest concern raised in the  audit process. Names of non-State                                                               
entity  individuals proposed  for membership  on the  Council are                                                               
submitted  to  the governor  for  approval.  The names  of  State                                                               
personnel are forwarded to the Legislature for approval.                                                                        
                                                                                                                                
Representative   Fairclough  communicated   her   desire  to   be                                                               
appointed  a member  of the  task  force if  the legislation  was                                                               
adopted.  She hoped  to serve  in a  facilitator capacity  rather                                                               
than a  voting capacity to avoid  any chance her past  service in                                                               
victims' rights issues  might be considered a  conflict. The goal                                                               
is to achieve  the "appropriate" balance between  "the people who                                                               
direct the money" and the people who work on the issues.                                                                        
                                                                                                                                
9:31:41 AM                                                                                                                    
                                                                                                                                
Representative Fairclough  stated that  in addition  to enhancing                                                               
services provided by  the 21 member programs, there  was a desire                                                               
to uncover  new funding  sources and suggest  ways to  change and                                                               
educate  society   to  decrease  interpersonal   violence.  These                                                               
efforts might address some of Senator Elton's concern.                                                                          
                                                                                                                                
Representative  Fairclough noted  that the  bill is  supported by                                                               
numerous  House of  Representative members,  the Council  and the                                                               
Alaska Network. She  could address the concern  about the balance                                                               
of State employees  on the Council further if  necessary. To that                                                               
point, she  shared having  served on  a committee  that primarily                                                               
consisted  of private  sector members.  "That  committee was  not                                                               
very functional…"                                                                                                               
                                                                                                                                
9:32:29 AM                                                                                                                    
                                                                                                                                
Senator Elton  appreciated the sponsor's remarks,  but considered                                                               
the  language  in  Sec.  2(c)(3)  to  speak  in  general  to  the                                                               
appointment  process  rather  than   to  specify  "who  shall  be                                                               
appointed or who shall serve."                                                                                                  
                                                                                                                                
9:32:48 AM                                                                                                                    
                                                                                                                                
Representative Fairclough stated, "for  the record", that she was                                                               
"happy to  say that the  intent, if I serve  on that body,  is to                                                               
address  the  Alaska  Network on  Domestic  Violence  and  Sexual                                                               
Assault's   ability   to  move   forward   to   the  Governor   a                                                               
recommendation", as directed in a  finding of a Legislative Audit                                                               
Division report.                                                                                                                
                                                                                                                                
Representative  Fairclough stated  that  if this  intent was  not                                                               
sufficient, she would welcome a clarifying amendment.                                                                           
                                                                                                                                
9:33:10 AM                                                                                                                    
                                                                                                                                
Senator  Elton  spoke  to  another  item in  the  list  of  seven                                                               
concerns,  that being  the geographic  location of  the council's                                                               
office as  addressed in Sec. 3(c)(4)  page 3 line 12.  This issue                                                               
was of high  interest to him, and, since it  is seldom discussed,                                                               
he wondered why it was deemed  important enough to be included in                                                               
the list.                                                                                                                       
                                                                                                                                
9:33:45 AM                                                                                                                    
                                                                                                                                
Representative Fairclough stated that  the geographic location of                                                               
the Council's office  was added during the  bill's progression in                                                               
the  House  of  Representatives  in  response  to  the  issue  of                                                               
turnover   raised   in   an   audit    report.   There   was   an                                                               
"unsubstantiated"  allegation that  the  significant turnover  in                                                               
the  executive director's  position might  be the  result of  not                                                               
"drawing from the right employment pool".                                                                                       
                                                                                                                                
Representative  Fairclough considered  the  office's location  in                                                               
Juneau  "appropriate"; however,  agreed with  those in  the House                                                               
who  thought the  issue  was  worthy of  discussion.  If she  was                                                               
appointed to  the task force,  she would continue to  support the                                                               
office remaining  in Juneau since "the  heart of the State  is in                                                               
Juneau as far as legislative action".  Juneau is also the site of                                                               
the Alaska Network office.                                                                                                      
                                                                                                                                
Representative Fairclough reiterated that  this item was included                                                               
due to concern  in the House about the turnover  in the executive                                                               
director position. It  was not an effort on her  part to move the                                                               
office out of Juneau.                                                                                                           
                                                                                                                                
9:35:18 AM                                                                                                                    
                                                                                                                                
Senator  Elton asked  regarding the  use of  the word  "shall" in                                                               
Sec.  2 subsection  (c) page  3 line  8. This  language specifies                                                               
that "the  task force shall consider  and develop recommendations                                                               
that address"  the seven items might  "preclude" discussing other                                                               
issues.                                                                                                                         
                                                                                                                                
9:35:52 AM                                                                                                                    
                                                                                                                                
Representative Fairclough  did not consider  the use of  the word                                                               
"shall"  to  be  "confining".  The  endeavor  was  to  create  an                                                               
environment in  which the issues  identified in the  audits would                                                               
be  addressed.  The  size  of   the  task  force,  as  previously                                                               
discussed, was an effort to  include advocates from both sides of                                                               
an  issue,  those in  support  of  the recommendation  and  those                                                               
against  it,  to engage  in  "a  healthy debate"  and  ultimately                                                               
present findings  that would be  supported by both the  House and                                                               
the Senate.                                                                                                                     
                                                                                                                                
Representative  Fairclough  voiced  that  the  Council  has  been                                                               
conducting business  in the same  manner for at least  ten years.                                                               
Programs  are  operating  with  limited  resources  and  are  not                                                               
keeping pace  with inflation. Including  three members  from both                                                               
the House and the Senate on  the task force would further enhance                                                               
the opportunity  "for healthy discussion".  The goal is  that the                                                               
State would  consider different  opportunities through  which "to                                                               
really start turning the tide on interpersonal violence".                                                                       
                                                                                                                                
9:37:17 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman agreed  with the findings depicted  in Section 1                                                               
of the  bill. One issue  not addressed  is "the magnitude  of the                                                               
problem  in rural  areas of  the State".  While the  seven issues                                                               
identified  in  Sec. 2(c)  have  merit,  consideration should  be                                                               
given to reallocating  resources to rural areas as  that is where                                                               
the problem is most prevalent.                                                                                                  
                                                                                                                                
9:38:39 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  questioned why  the problems  being experienced                                                               
in rural areas were not  specifically identified as a focus item,                                                               
since the problems experienced in  Bethel, for example, have been                                                               
documented in "newspapers and other agencies in the State".                                                                     
                                                                                                                                
9:39:10 AM                                                                                                                    
                                                                                                                                
Representative Fairclough  agreed with Co-Chair  Hoffman's point.                                                               
Alaska Native  women are "disproportionately over  represented in                                                               
a population for rape". She was  unsure whether that was also the                                                               
case  for   domestic  violence   incidences.  However,   she  was                                                               
uncertain   whether  a   "consensus"  could   be  reached   about                                                               
increasing funding  to address such  issues in rural  Alaska. She                                                               
encouraged  Co-Chair  Hoffman  to develop  and  provide  language                                                               
specific to his concern for consideration.                                                                                      
                                                                                                                                
Representative  Fairclough informed  the  Committee that  Council                                                               
resources  are  limited.   To  that  point,  she   noted  that  a                                                               
representative from rural  Alaska who is on the  Council has been                                                               
"very influential in the funding  process". There is awareness on                                                               
the  Council  about  the  difficulty  experienced  in  delivering                                                               
services to rural areas.                                                                                                        
                                                                                                                                
Representative  Fairclough disclosed  that an  individual in  the                                                               
City of Fairbanks  is more likely to be raped  than anywhere else                                                               
in  the  nation.  Anchorage  is  number six  on  that  list.  The                                                               
reporting of assaults  in these higher population  bases tends to                                                               
lead to increased levels of  funding. Thus, while more funding is                                                               
desired  in  rural  Alaska,  the Council  is  challenged  by  the                                                               
limited  resources that  are available  to  the support  programs                                                               
throughout the State.                                                                                                           
                                                                                                                                
Representative Fairclough  communicated that  alternative funding                                                               
opportunities would  be welcome. This  was the reason  grants and                                                               
grants  management  issues were  included  in  the list.  In  her                                                               
opinion, the Council was "leaving a  lot of money on the table at                                                               
a  nationwide level,  specifically  with the  Center for  Disease                                                               
Control and looking at bringing  education dollars and prevention                                                               
dollars into our State."                                                                                                        
                                                                                                                                
Representative  Fairclough clarified  however,  that her  primary                                                               
focus when  developing this legislation  was the task  force. The                                                               
funding  issue  could  be  more   extensively  addressed  if  the                                                               
Committee desired. The programs were "certainly under-funded".                                                                  
                                                                                                                                
9:41:05 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman pointed  out that the language  in Sec. 2(c)(6),                                                               
page  3   line  14,  simply   referenced  "compliance   to  grant                                                               
management";  there was  no reference  to grant  allocation. That                                                               
was his concern.                                                                                                                
                                                                                                                                
9:41:29 AM                                                                                                                    
                                                                                                                                
Representative  Fairclough  was  unsure whether  the  task  force                                                               
"could bring  more money to the  table". They could ask  that the                                                               
Council  "be  managed and  formed  in  a  way that  provides  the                                                               
opportunity" for  the State, including  rural Alaska,  to receive                                                               
more funding. An amendment in this regard would be welcome.                                                                     
                                                                                                                                
Representative  Fairclough considered  the  issues identified  in                                                               
the  bill to  be those  she  "could bring  to the  House and  the                                                               
Senate with  a list  of criteria  that you could  look at  to say                                                               
that this is why we support doing things this way".                                                                             
                                                                                                                                
Representative Fairclough  believed "the  funding issue  will get                                                               
politicized".   Addressing   the    funding   issue   would   add                                                               
complexities,  but would  not be  "inappropriate". While  she was                                                               
willing  "to  look  at  making   recommendations  in  regards  to                                                               
allocation", she worried it "might  expand" the scope of the bill                                                               
beyond where she thought success could  be achieved in a one year                                                               
time period.                                                                                                                    
                                                                                                                                
Representative  Fairclough,  as  the  facilitator  of  the  bill,                                                               
thought success could be achieved  were the discussion limited to                                                               
the seven focus areas identified in the bill.                                                                                   
                                                                                                                                
9:42:41 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  reminded  Representative  Fairclough  she  had                                                               
"alluded  to addressing  hard issues".  The allocation  issue "is                                                               
one of the hardest and that is not being addressed".                                                                            
                                                                                                                                
9:42:55 AM                                                                                                                    
                                                                                                                                
Senator Dyson considered  the issues raised by  the Committee and                                                               
the  bill's  sponsor  to  be "valid".  In  consideration  of  the                                                               
approaching  adjournment of  this Legislative  Session, he  asked                                                               
whether  not passing  the legislation  this year  would have  any                                                               
detrimental affects.                                                                                                            
                                                                                                                                
Representative Fairclough thought  that, absent this legislation,                                                               
the "same  fights" would  ensue when  the issue  of reauthorizing                                                               
the Council  came before the  Legislature again.  The Legislature                                                               
would likely  reauthorize the  Council "for  a shorter  period of                                                               
time" based  on their position  that the Council has  not reacted                                                               
how  each body  or each  individual representative  of our  State                                                               
believed that they should do".                                                                                                  
                                                                                                                                
Representative Fairclough deemed  moving this legislation forward                                                               
to  be important.  The fiscal  impact of  the bill  was small  in                                                               
comparison  to the  benefits  that would  be  gained. Having  the                                                               
support of  both the House  and the  Senate in this  effort could                                                               
allow the funding  issue to be addressed. A lack  of support from                                                               
either  body would  negate  the  effort to  have  the task  force                                                               
provide recommendations in one year's  time that could be debated                                                               
for the good of the State.                                                                                                      
                                                                                                                                
Representative  Fairclough identified  her impetus  for advancing                                                               
this legislation, even  this late in the  Legislative Session, as                                                               
being  the desire  to educate  the Legislature  about the  issue,                                                               
particularly  as  25  percent  of  the people  in  the  House  of                                                               
Representatives this  year were  new. Even were  this legislation                                                               
not  passed this  year,  it  would still  put  us  "ahead of  the                                                               
curve".                                                                                                                         
                                                                                                                                
9:45:15 AM                                                                                                                    
                                                                                                                                
Senator Dyson  asked when  the Council  would next  be considered                                                               
for reauthorization.                                                                                                            
                                                                                                                                
Representative Fairclough  thought the next  reauthorization date                                                               
was 2010.                                                                                                                       
                                                                                                                                
Senator  Dyson concluded  that the  intent of  this bill  was "to                                                               
empower and direct the Council"  to address "issues that have not                                                               
been adequately dealt  with". He asked whether  the Council could                                                               
accomplish that without this legislation.                                                                                       
                                                                                                                                
Representative  Fairclough  clarified  that   the  goal  of  this                                                               
legislation was to generate "buy-in  from the political body that                                                               
reauthorizes"  the   Council.  The   task  force   would  develop                                                               
recommendations that would  be debated by both the  House and the                                                               
Senate. The outcome of that  effort would be that the Legislature                                                               
would be advocating the Council "to do the right thing".                                                                        
                                                                                                                                
Senator Elton  asked why  there was  no client  representation on                                                               
the 15 member Task Force.                                                                                                       
                                                                                                                                
Representative Fairclough  pointed out that the  Task Force would                                                               
include  two  members of  the  private  sector appointed  by  the                                                               
governor: one would represent a  rural community and the other an                                                               
urban  community.  One  of   those  individuals  would  represent                                                               
victims.                                                                                                                        
                                                                                                                                
9:46:41 AM                                                                                                                    
                                                                                                                                
Senator Elton  expressed that  the language  in question,  Sec. 2                                                               
subsection  (a)(3) page  2 lines  23 through  26, specifies  that                                                               
these  individuals  must "either  be  involved  with, or  have  a                                                               
history of  involvement in, the  delivery of services  to victims                                                               
of domestic  violence and  sexual assault".  "It doesn't  say the                                                               
acceptance of services."                                                                                                        
                                                                                                                                
Representative  Fairclough   appreciated  the   observation.  The                                                               
intent is  that these individuals  either be a victim  or someone                                                               
who receives  services. "It  can be  both." It  is common  that a                                                               
person working  in this  field "had  a personal  experience" with                                                               
domestic  violence  or  sexual  assault.  The  language  was  not                                                               
intended "to preclude a victim".                                                                                                
                                                                                                                                
9:47:34 AM                                                                                                                    
                                                                                                                                
Senator Thomas corrected previous  information regarding the next                                                               
reauthorization date for the Council. It would be in 2011.                                                                      
                                                                                                                                
Senator  Thomas suggested  that,  in order  to better  understand                                                               
reasons  for the  turnover in  the  executive director  position,                                                               
previous executive directors should be interviewed.                                                                             
                                                                                                                                
Representative Fairclough  acknowledged that such input  would be                                                               
welcome.                                                                                                                        
                                                                                                                                
9:48:19 AM                                                                                                                    
                                                                                                                                
Senator Olson,  noting that the  task force would be  required to                                                               
provide a report to the Legislature  by March 1, 2008, asked what                                                               
might occur were  the report not provided by April  16, 2008 when                                                               
the Act establishing the task force would be repealed.                                                                          
                                                                                                                                
Representative  Fairclough  asserted  that the  report  would  be                                                               
provided by the date specified in the bill.                                                                                     
                                                                                                                                
Representative Fairclough noted  that even if the  Task Force was                                                               
dismantled  and the  report  was incomplete,  it  would still  be                                                               
presented.                                                                                                                      
                                                                                                                                
9:48:51 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman directed  attention  to the  five fiscal  notes                                                               
accompanying the  bill. The fiscal  notes from the  Department of                                                               
Health  and  Social Services,  the  Department  of Law,  and  the                                                               
Legislative  Affairs   Agency  reflect  no  fiscal   impact.  The                                                               
Department  of Public  Safety and  the Department  of Corrections                                                               
reflect fiscal impacts of $8,000 and $3,000 respectfully.                                                                       
                                                                                                                                
9:49:26 AM                                                                                                                    
                                                                                                                                
Representative  Fairclough informed  the Committee  that each  of                                                               
the  affected  departments  has agreed  "to  internalize"  travel                                                               
costs. In  order to avoid  penalizing the budgets of  the Council                                                               
and  the  Alaska  Network,  the   expenses  for  their  executive                                                               
directors would be assumed by the Department of Public Safety.                                                                  
                                                                                                                                
9:50:04 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  suggested that  the costs associated  with this                                                               
effort  be revisited  in  a  year, particularly  as  the cost  of                                                               
traveling to rural communities might increase expenses.                                                                         
                                                                                                                                
Representative  Fairclough clarified  that  the  location of  the                                                               
Task Force meetings  would rotate to specific  communities in the                                                               
State. The  rural community that  would host one of  the meetings                                                               
has not  been identified, as  the desire  is that the  task force                                                               
would make that determination.                                                                                                  
                                                                                                                                
Representative Fairclough stated that  this bill would provide "a                                                               
framework"   through  which   the   task   force  could   develop                                                               
recommendations,  including   those  acknowledging   the  "unique                                                               
challenge" of providing services to rural Alaska.                                                                               
                                                                                                                                
9:51:31 AM                                                                                                                    
                                                                                                                                
Amendment #1: This amendment deletes  language directing the Task                                                               
Force  to   consider  and  make  recommendations   regarding  the                                                               
geographic  location of  the council's  office,  as specified  in                                                               
Sec. 2 subsection (c)(4) on page 3 line 12.                                                                                     
                                                                                                                                
Senator Elton moved Amendment #1.                                                                                               
                                                                                                                                
Co-Chair Stedman objected for purpose of discussion.                                                                            
                                                                                                                                
Senator  Elton repeated  his concern  that the  inclusion of  the                                                               
word "shall" in  the language in Sec. 2 subsection  (C) tended to                                                               
mandate  the Task  Force to  address  the seven  focus items.  He                                                               
would be more comfortable had the word "may" been utilized.                                                                     
                                                                                                                                
Senator  Elton has  never heard  anyone  attribute the  Council's                                                               
employee  turnover to  the location  of the  office. Furthermore,                                                               
concern about  the location of  the office has never  been raised                                                               
in any audit or by any Council client.                                                                                          
                                                                                                                                
Senator  Elton also  shared the  "philosophical  problem" he  had                                                               
with  things like  this. Recalling  that the  bill's sponsor  had                                                               
suggested  that a  change  of  venue might  "expand  the pool  of                                                               
potential applicants",  he voiced being sensitive  "to the notion                                                               
that we  hire people  and we  do it based  on the  convenience of                                                               
those people who may be willing  to serve". He was unsure whether                                                               
that should  be "a  threshold issue in  the hiring  of somebody".                                                               
For  these   reasons,  and  specifically  because   "no  one  has                                                               
demonstrated that the location of  the office" was a detriment to                                                               
the Council, he was offering the amendment.                                                                                     
                                                                                                                                
9:53:31 AM                                                                                                                    
                                                                                                                                
In response  to a question  from Co-Chair Stedman,  Senator Elton                                                               
stated  that  the  Council's  office  was  currently  located  in                                                               
Juneau.                                                                                                                         
                                                                                                                                
9:53:44 AM                                                                                                                    
                                                                                                                                
Senator  Dyson  advised  that  he   would  be  objecting  to  the                                                               
amendment because  he "trusted" that  the task force,  with their                                                               
"expertise and  perspective", would conduct "a  rational and fair                                                               
discussion" on the issue.                                                                                                       
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
Senator Dyson objected.                                                                                                         
                                                                                                                                
9:54:24 AM                                                                                                                    
                                                                                                                                
Senator  Olson  asked  whether   "a  more  centralized  executive                                                               
office" location  might provide "better coverage  and certainly a                                                               
greater sensitivity" to  some of the issues  being experienced in                                                               
the State.                                                                                                                      
                                                                                                                                
Senator Elton  responded that  while this  might be  a legitimate                                                               
observation in some circumstances, it  did not apply in this case                                                               
"as the  Council's function is  bureaucratic" rather than  one of                                                               
delivering  services   to  clients.   The  Council   consists  of                                                               
government  public  servants, most  of  who  currently reside  in                                                               
Juneau,  "who  are  making  a   decision  on  the  allocation  of                                                               
dollars".                                                                                                                       
                                                                                                                                
9:55:33 AM                                                                                                                    
                                                                                                                                
Senator  Olson  observed  that   the  majority  of  the  expenses                                                               
depicted in the fiscal notes  were travel related. A more central                                                               
location might reduce those costs.                                                                                              
                                                                                                                                
9:55:54 AM                                                                                                                    
                                                                                                                                
Senator Elton clarified that the  expenses depicted in the fiscal                                                               
notes accompanying the  bill were for travel  associated with the                                                               
task force. The  location of the Council office  would not affect                                                               
this bill's fiscal notes.                                                                                                       
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator  Thomas, Senator Elton, Senator  Olson, and Co-                                                               
Chair Hoffman                                                                                                                   
                                                                                                                                
OPPOSED: Senator Dyson and Co-Chair Stedman                                                                                     
                                                                                                                                
ABSENT: Senator Huggins                                                                                                         
                                                                                                                                
The motion PASSED (4-2-1)                                                                                                       
                                                                                                                                
AT EASE: 9:57:06 AM / 9:58:51 AM                                                                                                
                                                                                                                                
Amendment 1 was ADOPTED.                                                                                                        
                                                                                                                                
Co-Chair  Hoffman moved  to  report the  bill,  as amended,  from                                                               
Committee  with   individual  recommendations   and  accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
Senator  Elton   objected  to  thank   the  bill's   sponsor  for                                                               
presenting the  bill. He has  worked on similar issues  for quite                                                               
some time  and appreciated Representative Fairclough's  effort to                                                               
codify such issues in this bill.                                                                                                
                                                                                                                                
Senator  Olson,  who as  a  medical  professional has  worked  in                                                               
hospitals  and witnessed  the  adverse  affects of  interpersonal                                                               
violence,  also   objected  to  thank  the   bill's  sponsor  for                                                               
presenting the bill.                                                                                                            
                                                                                                                                
Both objections were removed.                                                                                                   
                                                                                                                                
Without objection,  SCS HB 215(FIN)  was REPORTED  from Committee                                                               
with  five  previous  fiscal  notes: zero  fiscal  note  #1  from                                                               
Department of  Health and  Social Services;  zero fiscal  note #2                                                               
from  the  Department  of  Law;  zero fiscal  note  #5  from  the                                                               
Legislative  Affairs  Agency;  $3,000  fiscal note  #6  from  the                                                               
Department of  Corrections; and  $8,000 fiscal  note #7  from the                                                               
Department of Public Safety.                                                                                                    
                                                                                                                                
10:00:25 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 111(RES)                                                                                            
     "An Act creating the Kodiak Narrow Cape Public Use Area."                                                                  
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Stedman,  who previously heard  this bill in  the Senate                                                               
Resources  Committee,  announced   that,  absent  any  unexpected                                                               
issues,  the  intent today  would  be  to  report the  bill  from                                                               
Committee.                                                                                                                      
                                                                                                                                
10:00:45 AM                                                                                                                   
                                                                                                                                
DOUG LETCH,  Staff to Senator  Gary Stevens, the  bill's sponsor,                                                               
displayed  a map  [copy on  file] depicting  the location  of the                                                               
46,000 acre  Narrow Cape Public  Use Area this  legislation would                                                               
establish on Kodiak  Island. This is a  popular recreational area                                                               
in   the   vicinity   of   the   Alaska   Aerospace   Development                                                               
Corporation's Kodiak Island Rocket  Launch Facility and a buffalo                                                               
range  that  offers  beachcombing, surfing,  and  numerous  other                                                               
activities.                                                                                                                     
                                                                                                                                
Mr. Letch stated  that the reason for designating this  site as a                                                               
public  use area  is to  preserve it  in its  current form.  This                                                               
designation  would  also ensure  that  the  Legislature would  be                                                               
involved  in any  future  decision regarding  State  land in  the                                                               
area.  He  reminded the  Committee  that  a  few years  prior,  a                                                               
University  of Alaska  lands bill  considered State  land in  the                                                               
Narrow  Cape   area.  That   legislation  raised   Kodiak  Island                                                               
residents'  concern about  Legislative decisions  about the  area                                                               
and was, in essence, "the impetus" for this bill.                                                                               
                                                                                                                                
Mr. Letch clarified  that the creation of the  Narrow Cape Public                                                               
Use Area  would not curtail activities  currently being conducted                                                               
in the  vicinity; specifically those  associated with  the Kodiak                                                               
Launch Site.                                                                                                                    
                                                                                                                                
Mr. Letch  informed that the bill's  sponsor "worked extensively"                                                               
with the  Department of Natural  Resources and the  Kodiak Island                                                               
Borough  to develop  the bill.  It is  supported by  the City  of                                                               
Kodiak,  the   Kodiak  Island   Borough,  the   Alaska  Aerospace                                                               
Development   Corporation,   and   the  Department   of   Natural                                                               
Resources.                                                                                                                      
                                                                                                                                
Mr. Letch  stated that the bill  is accompanied by a  zero fiscal                                                               
note from Department of Natural Resources.                                                                                      
                                                                                                                                
Mr. Letch  also noted  that Senator Dyson  was familiar  with the                                                               
area since he had attended the  first rocket launch at the nearby                                                               
rocket launch site.                                                                                                             
                                                                                                                                
Mr. Letch considered this a good  bill. The members of the Senate                                                               
Resources Committee, which included  Senator Huggins and Co-Chair                                                               
Stedman, recognized the intent of the bill.                                                                                     
                                                                                                                                
10:04:29 AM                                                                                                                   
                                                                                                                                
SENATOR GARY STEVENS,  the bill's sponsor, spoke in  favor of the                                                               
bill. It is supported by the residents of Kodiak Island.                                                                        
                                                                                                                                
Senator Stevens qualified  that even though Kodiak  Island is the                                                               
largest island  in the United  States, it had limited  public use                                                               
areas. Furthermore, two-thirds of  the island has been designated                                                               
a bear refuge.                                                                                                                  
                                                                                                                                
Senator  Stevens noted  that the  site being  considered in  this                                                               
legislation is a popular  recreational area located approximately                                                               
50  miles from  the City  of Kodiak.  In addition  to the  Kodiak                                                               
Island Rocket Launch site, other  nearby special use designations                                                               
include a buffalo ranch and grazing leases.                                                                                     
                                                                                                                                
10:06:04 AM                                                                                                                   
                                                                                                                                
Senator  Thomas  asked  the  intent  of  language  in  Section  1                                                               
subsection  Sec.  41.23.260(f)  page  3 lines  15  -21  regarding                                                               
"incompatible"  use  with  the area.  While  understanding  there                                                               
being  no intent  to  curtail current  users'  activities in  the                                                               
area,  some activities  must have  been deemed  incompatible with                                                               
the area in order for this language to be included.                                                                             
                                                                                                                                
10:06:46 AM                                                                                                                   
                                                                                                                                
Mr. Letch deferred to Dick  Mylius with the Department of Natural                                                               
Resources.                                                                                                                      
                                                                                                                                
10:07:03 AM                                                                                                                   
                                                                                                                                
DICK  MYLIUS,  Director,  Division  of Mining,  Land  and  Water,                                                               
Department  of Natural  Resources,  testified via  teleconference                                                               
from an offnet  location and informed the Committee  that at this                                                               
time, no  incompatibility activities  have been  identified. This                                                               
language  was simply  included  in the  bill  in anticipation  of                                                               
future issues or conflicts that might arise.                                                                                    
                                                                                                                                
Mr.  Mylius also  noted  that the  bill  contained language  that                                                               
provided the Department  the option to develop  a management plan                                                               
for the area if deemed necessary.  An earlier version of the bill                                                               
specified  that as  a mandatory  rather than  optional provision.                                                               
The Department does not anticipate  any immediate need to develop                                                               
a  land management  plan for  the  area since  they had  recently                                                               
completed a Kodiak Area Plan  which provided direction on how the                                                               
island's  State  land  would  be  managed.  This  legislation  is                                                               
consistent with the findings in that plan.                                                                                      
                                                                                                                                
10:08:41 AM                                                                                                                   
                                                                                                                                
Senator Olson asked who would  be responsible for maintaining the                                                               
area were this legislation approved.                                                                                            
                                                                                                                                
Senator Stevens again deferred to Mr. Mylius.                                                                                   
                                                                                                                                
10:08:52 AM                                                                                                                   
                                                                                                                                
Mr. Mylius responded  that this legislation would  not affect how                                                               
the land would be managed; it  would continue to be maintained by                                                               
the Division  of Mining,  Land and Water.  The bill  would simply                                                               
assure that the land would  remain "in public ownership" and that                                                               
it could "not be disposed of" without Legislative approval.                                                                     
                                                                                                                                
10:09:27 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman noted the bill  was accompanied by a zero fiscal                                                               
note from Department of Natural Resources.                                                                                      
                                                                                                                                
10:09:36 AM                                                                                                                   
                                                                                                                                
Senator Olson  asked whether this  land designation  would affect                                                               
any private property owners in the area.                                                                                        
                                                                                                                                
Senator  Stevens  understood  there   were  no  private  property                                                               
holdings in the area.                                                                                                           
                                                                                                                                
Mr. Letch  thought that the land  in the area belonged  to either                                                               
the State  or the  federal government.  The nearby  buffalo ranch                                                               
operated on  land leased  from those  entities. Mr.  Mylius could                                                               
confirm the status of the land holdings.                                                                                        
                                                                                                                                
10:10:18 AM                                                                                                                   
                                                                                                                                
Mr. Mylius  corrected the information.  Mr. Burton,  the operator                                                               
of the buffalo ranch, owned a  160 acre parcel of land within the                                                               
boundaries of  the proposed  public use area.  His land  had been                                                               
purchased from  the federal government  and was located  near the                                                               
airstrip north  of the  rocket launch  facility, depicted  on the                                                               
map. This land  would be unaffected by this  legislation since it                                                               
was considered "an in-holding" and  as such would not be included                                                               
in "the  definition of what's  included in the public  use area".                                                               
Only State-owned land is subject to this legislation.                                                                           
                                                                                                                                
10:10:54 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  inquired how language in  Section 1, subsection                                                               
Sec.  41.23.240(4)  page  1  lines  14 and  15,  which  gave  the                                                               
responsibility   of   managing   surface  and   subsurface   land                                                               
activities  to  the commissioner  of  the  Department of  Natural                                                               
Resources,  would affect  the public  use  area; specifically  in                                                               
regards to exploration and mining activities.                                                                                   
                                                                                                                                
Mr.  Mylius  expressed  that  mining   claims  could  be  staked,                                                               
explored, and developed in the area  and oil and gas leases could                                                               
be granted.  However, the  Department did  not believe  this area                                                               
held  "much potential  for minerals"  and no  oil and  gas fields                                                               
have been identified in the area.                                                                                               
                                                                                                                                
10:11:54 AM                                                                                                                   
                                                                                                                                
JEROME  SELBY,  Mayor,  Kodiak   Island  Borough,  testified  via                                                               
teleconference  from  Kodiak and  identified  this  as being  "an                                                               
important bill  for Kodiak,  primarily because  most of  the land                                                               
adjacent to  the Kodiak road  system is privately owned.  This is                                                               
the only significant  portion of land that's  publicly owned that                                                               
is available  for recreation. The  area is easily  accessible and                                                               
is heavily used for a  variety of recreation activities including                                                               
berry picking, fishing, surfing, and hiking.                                                                                    
                                                                                                                                
Mr.  Selby urged  the Committee  to recognize  the value  of this                                                               
land as a  recreational area and support the  bill. The community                                                               
desired to protect this land and  not be surprised to learn about                                                               
potential development plans  for it, as was the case  a few years                                                               
prior,  when  the community  read  about  a proposed  State  land                                                               
transfer  to   the  University  in   the  newspaper.   This  land                                                               
designation would  ensure that any  future discussion  about land                                                               
use changes  in this  area would undergo  a public  debate within                                                               
the Legislature.                                                                                                                
                                                                                                                                
Co-Chair Hoffman  moved to  report the  bill from  Committee with                                                               
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
Without  objection, CS  SB 111(RES)  was REPORTED  from Committee                                                               
with previous zero fiscal note  #1 from the Department of Natural                                                               
Resources.                                                                                                                      
                                                                                                                                
                                                                                                                                
10:15:16 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman   conducted  housekeeping  pertaining   to  the                                                               
Committee's afternoon meeting schedule.                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Bert Stedman adjourned the meeting at 10:15:44 AM.                                                                   

Document Name Date/Time Subjects