Legislature(2011 - 2012)SENATE FINANCE 532
03/10/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB34 | |
| SB58 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 34 | ||
| = | SB 58 | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 10, 2011
9:05 a.m.
9:05:42 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:05 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Senator Bill Wielechowski; Michelle Sydeman, Staff, Senator
Wielechowski; Wanetta Ayers, Department of Commerce,
Community and Economic Development, Division of Economic
Development; Doug Wooliver, Administrative Attorney, Alaska
Court System.
PRESENT VIA TELECONFERENCE
Mike Borgford, made in Mat-Su Association, Wasilla; Brooke
McLaughlin, Crabby Sisters, Anchorage; Chris Shutte,
Executive Director, Anchorage Downtown Partnership; Erik
O'Brien, Southwest Alaska Municipal Conference; Jason Hoke,
Executive Director, Copper Valley Development Association;
Carl Berger, Lower Kuskokwim Economic Development Council,
Bethel; Tracy Lebarge, Tracy's King Crab Shack; Lt. Dial,
Alaska State Troopers; Quinlan Steiner, Director, Public
Defender Agency, Department of Administration.
SUMMARY
SB 34 SMALL BUSINESS REVOLVING FUND
SB 34 was HEARD and HELD in Committee for further
consideration.
SB 58 INCREASING NUMBER OF SUPERIOR CT JUDGES
SB 58 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 34
"An Act establishing the Alaska small business
revolving loan fund; relating to the fund and loans
from the fund; and providing for an effective date."
9:06:07 AM
SENATOR BILL WIELECHOWSKI introduced the legislation. He
noted that the governor presented a similar bill last year.
Last year's bill did not pass. He recalled conversations
with a number of small business owners who were passionate
about the issue and he attempted many times to contact the
governor's office. No reply was given. His intent was to
file SB 34 as bipartisan legislation from the Senate. He
commented that small business owners report great difficulty
accessing credit. Banks are reluctant to lend to start up
firms or small businesses without an established track
record.
9:08:47 AM
MICHELLE SYDEMAN, STAFF, SENATOR WIELECHOWSKI, introduced
the PowerPoint presentation: "SB 34: Alaska Small Business
Revolving Loan Fund."
Ms. Sydeman began with Slide 2: "Prime Sponsors
(Bipartisan)."
Senators Wielechowski, Menard, Ellis, Paskvan, McGuire,
and Thomas.
Ms. Sydeman discussed Slide 3: "Purpose."
To promote economic development by helping small
businesses in Alaska to access critically needed
capital.
Ms. Sydeman discussed Slide 4: "The Need."
· Nationally, the number of small business able to obtain
adequate financing has steadily decreased in the last
several years.
· In 2010, only 50 percent of small businesses reported
adequate access to capital.
· This is down from 78 percent in August 2008 and 62
percent in July 2009. (National Small Business
Association.)
Ms. Sydeman introduced Slide 5: "Fewer Loans."
· In 2009, new small business loans fell 33 percent to
$192 billion, the lowest total since 2000. (Federal
Financial Institutions Examination Council)
· Small business use of nearly every financing mechanism
has decreased--from traditional bank loans to credit
cards to vendor loans. (NSBA)
9:10:20 AM
Ms. Sydeman moved to Slide 6: "Credit Crunch."
· 80 percent of business owners -4 out of 5- report that
their company has been impacted by the credit crunch.
Ms. Sydeman detailed Slide 7: "Why is this a problem?"
· Small firms tend to drive job growth, particularly
during recoveries. They employ roughly half of all
American workers and account for about 60 percent of
job creation.
· Businesses less than 2 years old are especially vital.
Over the past 20 years, start-ups have accounted for
roughly 25 percent of job creation. When capital flows
more freely, small businesses add new jobs.
Ms. Sydeman detailed Slide 8: "Is Alaska Different?"
· Probably not, according to experts. In fact, Alaska's
higher business costs could exacerbate the problem.
· Support for small businesses is as important here as
elsewhere.
Ms. Sydeman discussed Slide 9: "Given this…"
· Perhaps we should listen to Fed Chairman Ben Bernanke,
who recently said:
· "Making credit accessible to sound small businesses is
crucial to our economic recovery and so should be front
and center among our current policy challenges." (June
9, 2010)
9:11:52 AM
Ms. Sydeman discussed Slide 10: "One Answer: Micro-Loans."
· The Small Business Revolving Loan Fund Senate Bill 34
proposes is modeled after a program currently operated
by the federal Small business Administration.
Ms. Sydeman presented Slide 11: "An Unmet Need."
· 46 other states have "micro-loan" programs
· Alaska does not because an intermediary lender is
required and no lenders meeting SBA qualifications have
been identified to date in the state.
9:12:51 AM
Ms. Sydeman noted Slide 12: "A Little History."
· Last year, Governor Parnell introduced HB 412 to create
a state micro-loan program.
· The bill passed the House unanimously on April 13 but
stalled in the Senate.
· Over the interim, we tried unsuccessfully to ascertain
whether the Governor intended to re-introduce the bill.
Ms. Sydeman discussed Slide 13: "Senate Bill 34."
· As a result, a bipartisan group of Senators decided to
introduce SB 34.
· This bill differs from HB 412 in that the maximum loan
amount has been slightly increased in response to
comments from small business owners and new federal
guidelines.
Ms. Sydeman detailed Slide 14: Senate Bill 34, cont."
· The Senate bill also require applicants for loans over
$35,000 to prove they have been turned-down from a
local financial institution before requesting a state
loan.
· It also requires that applicants provide a minimum 20
percent match for the loan.
9:14:36 AM
Ms. Sydeman discussed Slide 15: "Loan Eligibility."
· Applicants must be Alaska residents and their
businesses must be located in Alaska.
· They must provide sufficient collateral to secure the
loan.
Ms. Sydeman detailed Slide 16: "Loan Terms."
· The loans would bear an interest rate of prime plus 1
percent, with a floor of 6 percent and a cap of 8
percent.
· The maximum term would be 6 years.
Ms. Sydeman discussed Slide 17: "Loan Terms, cont."
· Loans could not exceed $50,000 for 1 individual and
$100,000 for 2 or more individuals.
· The program would be housed within Department of
Commerce, Community and Economic Development.
9:15:43 AM
Co-Chair Hoffman asked about the variation of 6 percent to 8
percent. He asked to know the criteria used to determine the
6 percent versus the 8 percent. Ms. Sydeman responded that
loan officers sometimes look at the business plan and types
of collateral of loan applicants.
Co-Chair Stedman referred to Page 4, Line 9, which
illustrated the interest rate at prime plus 1. Ms. Sydeman
responded that if the prime were lower than 3.5 percent,
then the floor would be the next step. If the prime was
greater than 8 percent then the next step would be the
ceiling.
9:17:13 AM
Ms. Sydeman presented Slide 18: "Other Programs."
This program would complement two existing programs
administered by the Division of Economic Development:
1. The Small Business Economic Development Revolving
Loan Fund
2. The Rural Development Initiative Fund
Ms. Sydeman discussed Slide 19: "Economic Development Fund
(SBEDRLF)."
Economic Development Fund (SBEDRLF)
· This program relies on funding from the federal
EDA and is targeted at communities experiencing
economic hardship.
· Funds are primarily used for long-term financing
and numerous federal requirements must be met.
9:17:54 AM
Ms. Sydeman detailed Slide 20: "Rural Development Fund
(RDIF)."
· Created with state funds, primarily for long-term
financing.
· Only available in communities of 5000 or less (if not
connected by road or rail Anchorage or Fairbanks) or
communities of less than 2000 (if connected).
Ms. Sydeman discussed Slide 21: "Alaska Small Business
Loans."
· Would provide relatively short-term, low-interest loans
to Alaska small businesses.
· Could be used for working capital, purchasing
machinery, equipment, inventory and leasehold
improvements.
9:18:39 AM
Ms. Sydeman discussed Slide 22: "Statewide Eligibility."
· Loans would be available in all regions of the state.
· The application process would be streamlined and fees
would be modest: $100 to apply and 1 percent
origination fee.
Co-Chair Stedman called attention to the table "Loan
Servicing Report" (copy on file).
Ms. Sydeman discussed Slide 23: "Capitalization."
· The fund would be capitalized with $3.5 million.
· All earnings and loan repayments would be retained by
the fund for future loans.
· And operating expenses would be paid from fund
earnings.
Ms. Sydeman detailed Slide 24: "Potential Fund Sources."
· Two possibilities:
1. General funds
2. State Small Business Credit Initiative funding
through the US Treasury
Ms. Sydeman discussed Slide 25: "Small Business Credit
Initiative"
· New federal program created by the Small Business Jobs
Act of 2010.
· $1.5 billion appropriated to "strengthen state programs
that support lending to small businesses and small
manufacturers."
Ms. Sydeman detailed Slide 26: "Small Business Credit
Initiative, cont."
· Alaska's share = More than $13 million
· State has filed letter of intent to apply
· Application deadline: June 27, 2011
9:20:38 AM
Ms. Sydeman discussed Slide 27: "Revolving Loan Funds: Self
Sustaining."
· Assumptions: 20 loans in first year
· Average loan = $35,000
· 25 in second year and every year thereafter
· By FY17, all principle pushed out
· Fund starts earning money and re-lending
9:21:05 AM
Ms. Sydeman discussed Slide 28: "Widespread Support For
Micro-Loans."
Business groups from across the state recognize the
need for a micro-lending program, such as that proposed
by S.B 34.
Ms. Sydeman detailed Slide 29: Bristol Bay Economic
Development Corporation."
"By far, the most challenging aspect of starting a
small business in our region is lack of capital; even
when it involves a very small amount of money.
Traditional sources of capital such as banks and other
financial institutes are not viable sources of capital
such as banks and other financial institutes are not
viable sources of capital for small entrepreneurs in
rural Alaska."
H. Robin Samuelsen
Chief Executive
9:21:40 AM
Ms. Sydeman discussed Slide 30: "Anchorage Economic
Development Corporation."
"The modest investment by the state of Alaska could
yield significant benefits for communities in every
region of the state. The sizes of the loan are quite
modest, as are the corresponding fees and interest
rates charged. The infusion of capital this program
offers will help both existing businesses and start-up
businesses to bridge short-term funding gaps, purchase
new equipment, expand services and employ more Alaska
citizens."
Bill Popp
President and CEO
Slide 31: "Alaska Small Business Development Center."
"Micro-lending is an opportunity for many small
businesses who typically do not find lending options
with banks due to the small amount of their loan
request. Many lending institutions prefer loan
applications with values of $100,000 or more. The
approval of micro-lending bills will significantly
impact and support many small businesses throughout
Alaska…"
Debi Fowler
Associate State Director
9:22:37 AM
Ms. Sydeman discussed Slide 32: Southwest Alaska Municipal
Conference."
"In Southwest Alaska, a revolving loan fund could help
small boat owners or smaller fish processors with
equipment purchases. It could assist bed and breakfast
owners with upgrades to their homes and business. Or it
could provide much needed capital to mechanics, day
care providers, and a host of other small business
startups and entrepreneurs."
Ms. Sydeman discussed Slide 33: "Alaska Small Business
Development Center."
"As a small business owner, I depend on credit to place
orders for inventory, expansion, advertising and
payroll during slow times. Availability of this credit
has allowed many businesses to weather economic
slowdowns in the past and even to emerge stronger when
the economy recovers. This recession is different: all
forms of available credit have dried up, especially
those for small business."
Ted Ragains
Ms. Sydeman detailed Slide 34: "Alaska Bankers Association."
· SB 34 even has the support of the Alaska Bankers
Association.
· The sponsors of this legislation worked closely with
them to resolve any concerns they had.
9:23:28 AM
Ms. Sydeman concluded with Slide 35: "Closing Thoughts."
· Small loans, many under $15,000
· Alaska residents only
· Quick pay-back
· The difference between success and failure, especially
when credit is tight
· Possible federal funding
· Self-sustaining, including operating costs
9:24:00 AM
Co-Chair Stedman asked if the loans can be stacked. Ms.
Sydeman did not know. She deferred to Director Ayers.
Co-Chair Stedman asked about the federal micro-loan program.
Ms. Sydeman understood that 46 other states have programs
under the Small Business Association (SBA) guidelines. She
stated that two other states access programs run by
neighboring states and two states, including Alaska are
without existing microloan programs.
9:24:55 AM
Co-Chair Stedman asked about the response from the industry
and the burden of the regulations. Ms. Sydeman deferred the
question to Director Ayers.
9:25:51 AM
Co-Chair Stedman clarified that a denial letter is not
necessary unless the amount is greater than $35 thousand and
the loan cap is $100 thousand. Ms. Sydeman agreed and stated
an additional difference in the governor's bill where an
applicant could borrow up to $70 thousand without a turn
down provision.
Co-Chair Stedman clarified that a document must be presented
exhibiting decline from a lending institution when applying
to borrow $35 thousand. He asked about a minimum amount. He
added that 20 percent is required despite the loan amount.
Ms. Sydeman replied that 20 percent is a minimum amount, the
department can require more. The department works closely
with loan requestors. No minimum loan amount is written into
the bill.
9:27:43 AM
Co-Chair Stedman mentioned the first fiscal note, which was
a fund transfer of $3.5 million in general funds to
capitalize the loan fund. The second fiscal note is for
$85.3 thousand to cover the cost of one new position to
administer the loan fund. The expense will be paid from the
earnings of the fund.
9:28:34 AM
MIKE BORGFORD, MADE IN MAT-SU ASSOCIATION, WASILLA (via
teleconference), testified in support of the legislation. He
stated that many small business owners in the Wasilla area
require additional funding to expand businesses. He shared a
story about a fellow business person in his area who was
struggling to secure financing for her business.
9:30:35 AM
BROOKE MCLAUGHLIN, CRABBY SISTERS, ANCHORAGE (via
teleconference), testified in support of the legislation.
She provided history of her business and her participation
in financial analysis and projection seminars. She mentioned
the market potential and the high consumer demand for her
product, which leads to growth and expansion. Her business
requires a loan to meet the need for cash flow. She and her
business partner are categorized as a start up business,
which provides a red flag to financial institutions. She
believed that she is a qualified candidate for the microloan
program.
9:33:50 AM
CHRIS SHUTTE, EXECUTIVE DIRECTOR, ANCHORAGE DOWNTOWN
PARTNERSHIP (via teleconference), testified in support of
the legislation. He noted the lack of capital for various
small businesses in his area. He echoed the need for
financing to allow for new business growth. He mentioned
needs from an architectural firm and a small hotel. He added
that the access to capital would benefit the economy in
Alaska.
9:35:55 AM
ERIK O'BRIEN, SOUTHWEST ALASKA MUNICIPAL CONFERENCE (via
teleconference), testified in support of the legislation. He
believed that additional money in the economy would be
accomplished with help from the microloan program. He noted
that Alaska has a lack of available capital and liquidity.
He offered a perspective regarding economic development. He
explained the state's potential regarding natural resources.
He shared a story regarding a small business and missed
opportunities.
9:40:31 AM
JASON HOKE, EXECUTIVE DIRECTOR, COPPER VALLEY DEVELOPMENT
ASSOCIATION (via teleconference), testified in support of
the legislation. He noted the lack of ability for many new
businesses to secure funding.
9:41:50 AM
CARL BERGER, LOWER KUSKOKWIM ECONOMIC DEVELOPMENT COUNCIL,
BETHEL (via teleconference), testified in support of the
legislation. He commented on the lack of access to funding
for small businesses. He supported the bipartisan support
and thanked Co-Chair Hoffman for the support.
9:43:48 AM
TRACY LEBARGE, TRACY'S KING CRAB SHACK (via teleconference),
testified in support of the legislation. She stated that
access to this type of loan would have provided her an
opportunity to retain greater than 60 percent of her sales.
She stressed the importance of microloans to small
businesses.
9:45:52 AM
WANETTA AYERS, DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT, DIVISION OF ECONOMIC DEVELOPMENT
introduced herself.
Co-Chair Stedman asked how the bill would work for an
applicant in a rural area. He asked how legitimacy of the
microloan applicants is determined by the department.
Ms. Ayers responded that the loan application processes can
be accessed on the state website allowing people across the
state to apply with ease. She stated that the loan demand
would be monitored by the department. She added that staff
in Juneau and Anchorage would ascertain the location of the
loan demand thereby determining placement of the position
required to staff the microloan program. She explained that
84 percent of the current loans are outside of Anchorage,
Fairbanks, and Juneau. She stated confidence in Alaska's
stable banking community. She added that the banking
communities wish to compete for the opportunity to provide
the microloans to accepted businesses.
9:49:12 AM
Co-Chair Stedman asked about loans for inventory and
management of cash flow. He wondered about proof of an
applicant's legitimacy. Ms. Ayers responded that collateral
and documentation are required as part of the application
process. Some borrowers may require additional help
determining their request in relation to capacity.
Co-Chair Stedman asked about the collateral requirements.
Ms. Ayers responded that in some cases, collateral
requirements exceed the loan amount by two-to-one. She
mentioned work with the fishing industry to determine a
business' capacity and the subsequent scope of the loan. She
was unsure about the use of inventory as a form of
collateral.
9:52:22 AM
Co-Chair Stedman expected that the loan requirements for the
small business would be for the purpose of obtaining
additional inventory. He asked about recourse versus
nonrecourse loans. Ms. Ayer did not know and offered to
respond to the committee in the near future. Co-Chair
Stedman explained that with a recourse loan, the bank can
collect any possession to address the debt.
Ms. Ayer stated that current loans have been foreclosed upon
and the history of recovery is good within the division.
Co-Chair Stedman asked for additional information regarding
resource loans. Ms. Ayers offered to provide the
information.
9:54:01 AM
Senator Thomas asked about Page 4, Line 11. He recalled
reading about the need for collateral considered acceptable
to the commissioner. He wondered about other language
indicating acceptable collateral. Ms. Ayers responded that
she would provide additional resources to answer the
question.
Senator Thomas responded that a list of acceptable
collateral would provide the answer he sought. He asked
about the low percent of loan delinquency in the state. He
wondered if was typical among banks and other financial
institutions or specific to small business loans. Ms. Ayers
responded that the delinquency rate is less than one
percent. She mentioned various management plans that allow
for ease with loans containing multiple streams of
requirements.
9:57:02 AM
Senator Thomas asked if Alaska's loan delinquency rates are
typical for the industry. Ms. Ayers replied that Alaska's
delinquency rates fall significantly below the national
standard.
9:57:52 AM
Co-Chair Stedman recalled conversations regarding a document
providing education about the available Alaskan small
business loans. He stated that an effort to update the
document or publication was underway. He requested
reevaluation of the legislation to bring the bill into
compliance with the goals of the committee.
SB 34 was HEARD and HELD in Committee for further
consideration.
10:00:04 AM
SENATE BILL NO. 58
"An Act increasing the number of superior court judges
designated for the third judicial district; and
providing for an effective date."
Co-Chair Stedman noted the first hearing of SB 58 in the
Senate Finance Committee (SFC).
DOUG WOOLIVER, ADMINISTRATIVE ATTORNEY, ALASKA COURT SYSTEM,
stated that two new superior court judges were needed in
Anchorage to preside over civil cases. The additional judges
are required because Anchorage has the highest caseload in
Alaska. Anchorage judges handled 687 cases per judge last
year. Changes in Child In Need of Aid (CINA) cases require
additional staff in the form of standing masters. The change
resulted in the superior court judge having better knowledge
of the family. The better a judge knows a family, the more
trust develops, which benefits the family. The change also
takes more of the judge's time. He encouraged status
hearings in the courts, much like the therapeutic court
program.
Mr. Wooliver mentioned the value of deadlines for the
litigants. He stated that encouraging regular hearings in
front of a judge would greatly encourage family unification.
He believed that the process would result in better
outcomes. The child in need of aid statutes adopted by the
legislature strongly encourage family reunification. While
valuable, the status hearings require judicial time.
10:06:38 AM
Mr. Wooliver remarked on the second change to the Alaska
judicial system involving family law cases. He stated that
33 percent of cases have attorneys on both sides, but 38
percent are without attorneys. Unrepresented litigants are
time consuming for the court system. He pointed out that
while family law cases were very emotional, many families
did not have adequate legal knowledge to argue specific
legal issues. He stressed the issue of motion practices,
with a 34 percent increase in motion practices in family law
cases. He added that the cases are equally important to the
courts and the litigants despite the increased use of
judicial time. The Alaska court system is dedicated to
ensuring the accessibility of the court system. Divorce and
child custody cases represent a majority of cases seen in
family law court rooms.
10:11:00 AM
Mr. Wooliver added that additional educational opportunities
exist for people required to testify in a court of law. He
noted that the court system is using the efforts to better
manage the cases. He stated that Anchorage is asking for two
new superior court judges, but the need is really for three.
Better management techniques would allow the municipality to
utilize only two additional superior court judges.
Co-Chair Stedman noted two numeric changes in the one
paragraph bill.
10:13:41 AM
Co-Chair Hoffman asked about the numbers of case filings
presented. He requested a three year average of case files.
He asked about the last time that Anchorage received a new
superior court judge. Mr. Wooliver responded that Anchorage
received new judges in 2006 and prior to that in 2001. He
offered to update the material to contain additional current
information for FY 11.
Co-Chair Hoffman clarified his question. He requested a
three year average for case files. Mr. Wooliver agreed to
provide the information.
Co-Chair Stedman mentioned SB 246, which requested one
superior court judge for Anchorage. He wondered about a
change in the request. He wondered why only one judge was
requested last year.
10:15:26 AM
Mr. Wooliver responded that the superior court in Anchorage
asked the Supreme Court for three new judges, but the
Supreme Court decided to ask the legislature for only one.
The plan to incorporate additional improvements was
considered, as mentioned earlier in the meeting. Since then,
the caseload in Anchorage has increased by another 662
cases. The higher caseload justified the request for two
judges.
10:15:54 AM
Senator Ellis commented about prior discussion in the
Judiciary Committee where Senator Paskvan stated another
reason to have divorce cases heard in district court is to
allow the mandatory right of appeal to superior court, but
not to the Supreme Court. This recommendation for two
additional judges is approved by the Supreme Court as a
request to the legislature.
Mr. Wooliver responded that he met with the Supreme Court
and with Senator Paskvan. The Supreme Court does not support
a specifically designated family law bench in Anchorage. He
stated that historically, a family court division leads to
judicial burnout. Some states address the problem by
allowing for a revolving family law bench. Another option is
the creation of a family law court. A family law judge can
then apply for the position if necessary. The courts concern
with the model is judicial burnout. In addition, the
applicant pool is often narrow.
10:20:21 AM
Mr. Wooliver stated that the district court is a high volume
business. The district court spends a short time on each
case. District courts can have arraignments with 100 people
in the morning and 50 defendants in the afternoon. He added
that small claims cases are addressed very quickly. Family
law cases can last for years and do not work in a district
court calendar.
Mr. Wooliver stressed that the Supreme Court is not asking
for additional help with the appeals of family law cases.
Placing the district court in charge of family law cases
would not work in the district law calendar.
10:21:30 AM
Senator McGuire commented about a conversation with Justice
Morgan Christian regarding the possibility of a subcommittee
of lawmakers, staff, and the Justice to address the issue.
She agreed that citizens want the opportunity to appeal to
the Supreme Court. She spoke about burnout. She stated that
many attorneys are ill equipped to deal with family law. She
mentioned an Oregon model which includes mediation. The
model serves as a filter to provide a liaison or mediator as
a precursor to court.
10:24:29 AM
Senator McGuire stated that only one superior court judge
exists in South Central Alaska. She pointed out that women
in South Central Alaska have no gender choice when seeking a
superior court judge. She wondered about recruiting
additional women to the bench. One report showed that many
female names have been put forward over the years, and the
head of state chose males over females. She stressed that
Alaska must have more women on the bench.
10:27:55 AM
Co-Chair Hoffman requested additional information regarding
caseloads for district court judges.
10:28:18 AM
Senator Egan asked about the request of $425 for remodeling
seen in fiscal note one. He queried the interim location of
the courts for the period of remodel. Mr. Wooliver replied
that the judicial council utilizes several months to choose
the judge. By the time the judges are seated, the remodels
are scheduled to be finished.
Senator Egan asked if the fiscal note would be lessened as a
result. Mr. Wooliver responded that retired superior court
judges will substitute until additional judges are chosen.
10:29:58 AM
Senator Thomas asked about the percentage of cases filed
that are ultimately contested. Mr. Wooliver offered to
provide the information.
Co-Chair Stedman detailed the eight different fiscal notes.
The total cost by the administration and the court system is
$2,400,600 for a total of 16 new positions.
10:32:44 AM
Co-Chair Stedman asked about the addition of a new probation
officer for the civil court cases.
10:33:03 AM
LT. DIAL, ALASKA STATE TROOPERS (via teleconference),
responded that additional judges, even civil court judges
will generate additional work for the judicial services unit
in Anchorage. That work includes assignments to hearings for
security reasons and to process and serve paperwork and
subpoenas generated by the new judges. To adequately provide
for the needs of the court, the request for one new court
service officer was made.
10:33:49 AM
Co-Chair Stedman asked about the caseloads and the existing
public defenders and public advocacy attorneys regarding
child in need of aid cases.
10:34:25 AM
QUINLAN STEINER, DIRECTOR, PUBLIC DEFENDER AGENCY,
DEPARTMENT OF ADMINISTRATION (via teleconference) addressed
Co-Chair Stedman's query. He stated that the fiscal note
illustrates proposed funding for a position and a support
staff position in Anchorage. The additional position will
accelerate the workload for the civil division. He mentioned
a push for more status hearings and the additional judges
will place pressure on the attorneys to be prepared for the
hearings. Additionally, the rest of the state carries mixed
caseloads. He added that CINA cases are increasing. The
Anchorage unit specializes to provide assistance in both
case oversight and training and the additional pressure is
placed on Anchorage. The additional attorney will require
support.
Co-Chair Stedman asked about SB 246 and the zero fiscal
note. He wondered why SB 58 has a positive fiscal note. Mr.
Steiner offered to revisit the past fiscal note and provide
an explanation.
Co-Chair Stedman stated that a request of one agency
sometimes leads to additional requests from other agencies.
10:37:41 AM
Senator McGuire asked about the governor's operating budget
and the overarching fiscal concerns. Co-Chair Stedman stated
that the committee has been supportive of the expansion of
the court system's capital needs. He noticed $4 million in
court renovations located in the capital budget.
10:39:18 AM
Senator McGuire pointed out that the office of public
advocacy and the CINA issues can be addressed in the
administrative and operating levels. She commented that
Ketchikan might be in need of one more judge.
Co-Chair Stedman added that the numbers may change along the
way. He requested a ratio for the sake of saving the
committee members' time.
Senator McGuire asked if judges rotate throughout
communities.
Mr. Wooliver responded that the judges travel exclusively
throughout Southeast and Southwest Alaska.
10:41:37 AM
SB 58 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
10:42:33 AM
The meeting was adjourned at 10:42 AM.