Legislature(2007 - 2008)SENATE FINANCE 532

04/08/2008 04:00 PM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Immediately Following Session --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 289 EMPLOYMENT TAX EXEMPTION: SPILL RESPONSE TELECONFERENCED
Moved CSHB 289(FSH) Out of Committee
+= HB 307 ASSAULTS: REPEAT OFFENDERS TELECONFERENCED
Moved SCS CSHB 307(JUD) Out of Committee
+= HB 406 CONTRACTS FOR PREPARATION OF BALLOTS TELECONFERENCED
Moved CSHB 406(STA) Out of Committee
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 8, 2008                                                                                            
                         4:27 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee meeting                                                                    
to order at 4:27:25 PM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Fred Dyson                                                                                                              
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative    Lindsey   Holmes;    Representative    Anna                                                                   
Fairclough; Katie  Shows, Staff, Representative  Paul Seaton;                                                                   
Chris Ashenbrenner,  Executive Director, Council  on Domestic                                                                   
Violence  and   Sexual  Assault;  Gail  Fenumiai,   Director,                                                                   
Division of Elections, Office of the Lieutenant Governor                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 289(FSH)                                                                                                                   
                                                                                                                                
          "An   Act    exempting   employers    from   paying                                                                   
          unemployment  tax for  temporary services  provided                                                                   
          by  fishing  vessel   crewmembers  and  related  to                                                                   
          emergency   oil   spill   training   and   response                                                                   
          activities; and providing for an effective date."                                                                     
                                                                                                                                
          CSHB 289  (FSH) was REPORTED out of  Committee with                                                                   
          no recommendations  and an accompanying  previously                                                                   
          published fiscal note  from the Department of Labor                                                                   
          and Workforce Development.                                                                                            
                                                                                                                                
CSHB 307(FIN)                                                                                                                   
                                                                                                                                
          "An Act relating to  penalizing certain misdemeanor                                                                   
          domestic violence assaults as felonies."                                                                              
                                                                                                                                
          SCS CSHB  307 (JUD)  was REPORTED out  of Committee                                                                   
          with  a "do pass"  recommendation and  accompanying                                                                   
          new fiscal  notes from  the Department of  Law, the                                                                   
          Department  of Administration,  the Senate  Finance                                                                   
          Committee,   the   Alaska   Court  System   and   a                                                                   
          previously  published  zero  fiscal note  from  the                                                                   
          Department of Public Safety.                                                                                          
                                                                                                                                
CSHB 406(STA)                                                                                                                   
                                                                                                                                
          "An Act  relating to contracts for  the preparation                                                                   
          of election ballots."                                                                                                 
                                                                                                                                
          CSHB 406  (STA) was REPORTED out of  Committee with                                                                   
          a  "do   pass"  recommendation  and   a  previously                                                                   
          published zero  fiscal note from the  Office of the                                                                   
          Governor.                                                                                                             
                                                                                                                                
4:27:38 PM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 289(FSH)                                                                                                
                                                                                                                                
     "An  Act exempting  employers  from paying  unemployment                                                                   
     tax for  temporary services  provided by fishing  vessel                                                                   
     crewmembers and related to  emergency oil spill training                                                                   
     and response activities;  and providing for an effective                                                                   
     date."                                                                                                                     
                                                                                                                                
4:28:43 PM                                                                                                                    
                                                                                                                                
KATIE SHOWS, STAFF, REPRESENTATIVE PAUL SEATON presented an                                                                     
overview of the bill by referring to the Sponsor Statement:                                                                     
                                                                                                                                
     HB  289  encourages  participation  in the  state's  oil                                                                   
     spill  response  program  by  exempting  fishing  vessel                                                                   
     owners  and  crew who  participate  from  having to  pay                                                                   
     unemployment taxes  while they are performing  oil spill                                                                   
     response                                         duties.                                                                   
                                                                                                                                
     Vessel  owners  and  crew   members  undergo  oil  spill                                                                   
     response  training to  be prepared  to respond  to state                                                                   
     disasters  as a  service  to the  state  on a  voluntary                                                                   
     basis. Training for the program  and responding to small                                                                   
     spills  only  takes  a  few   days  at  a  time,  filing                                                                   
     paperwork  and  paying  unemployment  taxes for  such  a                                                                   
     short  period  of service  is  unreasonably  burdensome.                                                                   
     Because   commercial  fisherman   are  not  covered   by                                                                   
     unemployment  insurance when  they engage in  commercial                                                                   
     fishing, most  will not be in a position  to have enough                                                                   
     service  time  accrued  to  collect  unemployment  after                                                                   
     having only  worked a handful  of qualified days  in the                                                                   
     oil spill response program.                                                                                                
                                                                                                                                
     In the unfortunate  event of a large spill  (such as the                                                                   
     Exxon   Valdez),  if   vessels  spend   seven  or   more                                                                   
     continuous  days  responding  to  an  oil  spill  vessel                                                                   
     owners   would  be  required   to  participate   in  the                                                                   
     unemployment  system and  their crew  would be  covered.                                                                   
                                                                                                                                
     In summary,  HB 289 encourages fisherman  to continue to                                                                   
     participate  in the state's  oil spill response  program                                                                   
     by  removing burdensome  unemployment requirements.  The                                                                   
     state needs more vessels  willing and able to respond to                                                                   
     such  disasters  and must  work  to remove  barriers  to                                                                   
     their participation.                                                                                                       
                                                                                                                                
Ms. Shows remarked that commercial  fishermen are exempt from                                                                   
paying and  filing unemployment taxes  as they are paid  on a                                                                   
percentage of  catch bases. She  explained that  the response                                                                   
training program is  only for a few days a  year therefore it                                                                   
would be unreasonable  to expect fishermen to  file the paper                                                                   
work for  unemployment  benefits they  probably would  not be                                                                   
eligible   to  receive.   Many   commercial  fishermen   have                                                                   
threatened to quit  the program when they were  made aware of                                                                   
the   requirement  to   file   unemployment  insurance.   She                                                                   
referenced letters of support  for the bill (Copies on file).                                                                   
                                                                                                                                
Senator  Thomas  expressed his  understanding  regarding  the                                                                   
situation   but  was   curious   about   the  definition   of                                                                   
"temporary" being less than seven continuous days.                                                                              
                                                                                                                                
Ms.  Shows   responded  that   "temporary"  would   be  seven                                                                   
continuous days regardless of  when it takes place within the                                                                   
year. This number was arrived  at after consultation with the                                                                   
Department of Commerce and boat captains.                                                                                       
                                                                                                                                
4:32:37 PM                                                                                                                    
                                                                                                                                
Senator Olson inquired how many  oil spills there had been in                                                                   
the last five years.                                                                                                            
                                                                                                                                
Ms. Shows responded she did not have those numbers.                                                                             
                                                                                                                                
Senator  Olson  questioned  how   many  fishermen  have  quit                                                                   
participating in the oil spill  response program because this                                                                   
bill was not in place.                                                                                                          
                                                                                                                                
Ms. Shows  responded that  no one has  quit at this  time but                                                                   
letters  have been  received  from fishermen  threatening  to                                                                   
quit.                                                                                                                           
                                                                                                                                
4:33:32 PM                                                                                                                    
                                                                                                                                
Senator  Olson asked  if  there had  been  any opposition  to                                                                   
bill. Ms. Shows responded there was no opposition.                                                                              
                                                                                                                                
Senator  Olson  MOVED  to  REPORT   CSHB  289  (FSH)  out  of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
CSHB  289  (FSH)  was  REPORTED  out  of  Committee  with  no                                                                   
recommendations  and  an  accompanying  previously  published                                                                   
fiscal  note  from  the Department  of  Labor  and  Workforce                                                                   
Development.                                                                                                                    
                                                                                                                                
4:34:52 PM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 307(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating  to  penalizing  certain  misdemeanor                                                                   
     domestic violence assaults as felonies."                                                                                   
                                                                                                                                
4:34:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LINDSEY HOLMES,  the bill sponsor,  presented                                                                   
an  overview the  bill. She  stressed the  intent behind  the                                                                   
bill was to target the critical  problem of domestic violence                                                                   
in Alaska.  He noted  that in  2005 there  were six  thousand                                                                   
reported  cases  of  domestic  violence in  this  state.  Ms.                                                                   
Holmes referred to the Sponsor Statement:                                                                                       
                                                                                                                                
     Alaska's domestic violence  rates are one of the highest                                                                   
     in  the country.  Alaska currently  has the highest  per                                                                   
     capita  rate   of  female  homicide  death   by  a  make                                                                   
     perpetrator.  This violence  becomes a  vicious cycle  -                                                                   
     according  to the  National  Coalition against  Domestic                                                                   
     Violence, boys  who witness domestic violence  are twice                                                                   
     as likely to  abuse when they become adults.  This cycle                                                                   
     of violence needs to stop.                                                                                                 
                                                                                                                                
     House  Bill 307  seeks  increased penalties  for  repeat                                                                   
     domestic  violence offenders. The  bill provides  that a                                                                   
     domestic  violence misdemeanor assault  is treated  as a                                                                   
     felony  if the offender  has two  prior convictions  for                                                                   
     domestic  violence  felonies  or for  domestic  violence                                                                   
     misdemeanor assault.  The bill is narrowly  tailored. It                                                                   
     applies prospectively only,  so all three offenses would                                                                   
     need to occur  after the effective date of  the bill. It                                                                   
     contains  a 10  year look  back, so  all three  offenses                                                                   
     would need to occur within 10 years of each other.                                                                         
                                                                                                                                
     As  of  2005,  at  least 18  other  states  had  enacted                                                                   
     enhanced   penalties   for  repeat   domestic   violence                                                                   
     offenders. With this bill,  Alaska will join these other                                                                   
     states   in  sending  a   strong  message   that  serial                                                                   
     battering will not be tolerated.                                                                                           
                                                                                                                                
     Alaskans need  to feel safe in their homes  and in their                                                                   
     relationships.  Domestic  violence harms  everyone in  a                                                                   
     community, not just the victims. Increasing penalties                                                                      
     to repeat offenses is just one part of the solution to                                                                     
     this complex problem.                                                                                                      
                                                                                                                                
Representative  Holmes declared  that many domestic  violence                                                                   
perpetrators  have a  dozen or more  misdemeanor assaults  on                                                                   
their record. She  stressed that this bill is  not similar to                                                                   
the California "three strikes"  where after three strikes the                                                                   
person is  locked up for  life. She  noted that the  bill has                                                                   
changed through  the Committee  process and now  provides the                                                                   
best  opportunity  of  actually  convicting  repeat  domestic                                                                   
violence  offenders. She  referred to  letters of support  on                                                                   
file.                                                                                                                           
                                                                                                                                
4:38:28 PM                                                                                                                    
                                                                                                                                
Senator Olson inquired about the  changes made by the various                                                                   
committees.                                                                                                                     
                                                                                                                                
Representative Holmes responded  that the bill was originally                                                                   
retrospective  but  now  is a  prospective  bill.  Originally                                                                   
there was not a  ten year "look back." She  revealed the most                                                                   
drastic  change  is originally  it  would have  required  the                                                                   
prosecutors  to  actually  prove   the  element  of  domestic                                                                   
violence.                                                                                                                       
                                                                                                                                
4:40:07 PM                                                                                                                    
                                                                                                                                
Senator Huggins asked what prison  time the felony conviction                                                                   
carried.                                                                                                                        
                                                                                                                                
Representative  Holmes  replied  a felony  conviction  for  a                                                                   
first time  felon ranges  from zero to  two years;  for those                                                                   
with prior felonies it would be two to five years.                                                                              
                                                                                                                                
4:40:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  reported that  the public defenders  in the                                                                   
Office  of Public  Advocacy  are  requesting  a new  employee                                                                   
position.  He inquired  if  the Department  of  Law would  be                                                                   
absorbing an extra work load.                                                                                                   
                                                                                                                                
Representative  Holmes responded that  the Department  of Law                                                                   
should address that question.                                                                                                   
                                                                                                                                
Co-Chair  Stedman referred  to the fiscal  notes attached  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
4:42:22 PM                                                                                                                    
                                                                                                                                
CHRIS ASHENBRENNER,  EXECUTIVE DIRECTOR, COUNCIL  ON DOMESTIC                                                                   
VIOLENCE AND SEXUAL ASSAULT spoke  in support of the bill and                                                                   
referred to  the letters  of support  available on  file. She                                                                   
believed that  repeat assailants  should be held  accountable                                                                   
by moving their repeat crimes  from misdemeanors to felonies.                                                                   
                                                                                                                                
4:44:17 PM                                                                                                                    
                                                                                                                                
Senator Olson  inquired if there  was any documentation  that                                                                   
the implementation this bill would  cut down on the number of                                                                   
repeat offenders.                                                                                                               
                                                                                                                                
Ms.  Ashenbrenner  responded  that  many  states  carry  this                                                                   
progressive penalty  but she was not aware of  any studies to                                                                   
measure the effect.                                                                                                             
                                                                                                                                
4:45:03 PM                                                                                                                    
                                                                                                                                
Senator Huggins  MOVED to  REPORT SCS CSHB  307 (JUD)  out of                                                                   
Committee  with   individual  recommendations   and  attached                                                                   
fiscal notes.                                                                                                                   
                                                                                                                                
Senator Elton OBJECTED for discussion.                                                                                          
                                                                                                                                
Senator Elton  warned the Department  of Corrections  that in                                                                   
the  future he  many not  support legislation  that does  not                                                                   
reflect  the  true cost  component  in  the fiscal  note.  He                                                                   
believed that  prisons often were just  warehousing prisoners                                                                   
who were then released to commit the same crimes again.                                                                         
                                                                                                                                
4:47:56 PM                                                                                                                    
                                                                                                                                
Senator Elton WITHDREW his OBJECTION.  There being NO further                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SCS  CSHB 307  (JUD) REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and accompanying new fiscal  notes from                                                                   
the Department of Law, the Department  of Administration, the                                                                   
Senate  Finance  Committee, the  Alaska  Court  System and  a                                                                   
previously published zero fiscal  note from the Department of                                                                   
Public Safety.                                                                                                                  
                                                                                                                                
4:48:42 PM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 406(STA)                                                                                                
                                                                                                                                
     "An Act relating to contracts for the preparation of                                                                       
     election ballots."                                                                                                         
                                                                                                                                
4:48:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH  provided an overview of bill.                                                                   
She  explained  that  the  bill  addresses  ballot  printing.                                                                   
Currently the state  does not use the procurement  code, only                                                                   
a sole source method, to supply  printed ballots for Alaska's                                                                   
election  system.  This  bill  proposes  a  process  that  is                                                                   
competitive but  with quality  assurance and timeliness.  She                                                                   
noted that  quality ballots  are essential  to good  election                                                                   
processes  in   the  state.  She  referred  to   letters  and                                                                   
departments who supported the bill.                                                                                             
                                                                                                                                
Representative Fairclough explained  the changes in the bill.                                                                   
On page 1, line  14, the word "may" has been  substituted for                                                                   
"shall."  In  Section  1515.031,  page  4, it  lays  out  the                                                                   
ability for the Division of Elections  to look at preparing a                                                                   
contract  for bid with  the procurement  process. Inside  the                                                                   
bid process, it is the intention  to provide an Alaska bidder                                                                   
preference  as  referred to  on  line  10, with  the  outline                                                                   
definition of an  "Alaska offeror." On page 4,  line 28 there                                                                   
is a definition of an "Alaska product" preference.                                                                              
                                                                                                                                
Co-Chair Stedman questioned if  this would have any effect on                                                                   
the upcoming fall 2008 elections.                                                                                               
                                                                                                                                
Representative  Fairclough responded it  will not  effect the                                                                   
upcoming  elections  since  the  bill  will  take  effect  in                                                                   
January 2009.                                                                                                                   
                                                                                                                                
4:52:09 PM                                                                                                                    
                                                                                                                                
Senator  Elton  asked  about   the  timelines  and  mechanics                                                                   
related to  this change. He wondered  if the time  lines were                                                                   
being moved  up to a  point where it  might be difficult  for                                                                   
the division to obtain requests for proposals.                                                                                  
                                                                                                                                
4:53:19 PM                                                                                                                    
                                                                                                                                
GAIL  FENUMIAI, DIRECTOR,  DIVISION OF  ELECTIONS, OFFICE  OF                                                                   
THE LIEUTENANT  GOVERNOR reported  that since the  bill would                                                                   
start during  an "off"  election year  the division  plans to                                                                   
send out  requests for proposals  in the early part  of 2009.                                                                   
The Division feels that starting  on smaller locals elections                                                                   
will give  them an  opportunity to  test contractors  and not                                                                   
have to search for competitive  contracts during a primary or                                                                   
election year.                                                                                                                  
                                                                                                                                
Senator  Elton  questioned  how  the "cost"  terms  would  be                                                                   
negotiated.                                                                                                                     
                                                                                                                                
Ms. Fenumiai replied  that the Division had not  settled on a                                                                   
final decision but it would probably  be on a "market basket"                                                                   
approach involving  different pricing  specs based  on needed                                                                   
sizes and numbers.                                                                                                              
                                                                                                                                
Senator Elton  questioned the difficulty of the  process when                                                                   
candidates may not be known until the last minute.                                                                              
                                                                                                                                
4:55:48 PM                                                                                                                    
                                                                                                                                
Ms. Fenumiai responded that there would be flexibility for                                                                      
vendors and bid solicitors.                                                                                                     
                                                                                                                                
4:56:18 PM                                                                                                                    
                                                                                                                                
Senator Thomas MOVED to REPORT CSHB 406 (STA) out of                                                                            
Committee with individual recommendations and attached                                                                          
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
CSHB 406 (STA) was REPORTED out of Committee with a "do                                                                         
pass" recommendation and an accompanying previously                                                                             
published zero fiscal note from the Office of the Governor.                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 4:57 PM                                                                                            
                                                                                                                                

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