Legislature(2011 - 2012)SENATE FINANCE 532

04/06/2011 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 84 VOC ED FUNDING/BASE STUDENT ALLOCATION TELECONFERENCED
Moved CSSB 84(FIN) Out of Committee
+ SB 15 SEX OFFENDER/UNDERAGE ALCOHOL OFFENSE TELECONFERENCED
Heard & Held
+= SB 58 INCREASING NUMBER OF SUPERIOR CT JUDGES TELECONFERENCED
Moved SB 58 Out of Committee
+= SB 90 BOARD OF PUBLIC ACCOUNTANCY SECRETARY TELECONFERENCED
Moved SB 90 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 6, 2011                                                                                            
                         9:05 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:05:20 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                                                                                                                  
                                                                                                                                
Darwin  Peterson, Staff,  Senator Stedman;  Laury Scandling,                                                                    
Assistant  Superintendant,  Juneau   School  District;  Anne                                                                    
Kurland,  Juneau;   Ellen  Pavitt,  Juneau;   Corey  Pavitt,                                                                    
Juneau;  Mary  Halcala,  Juneau; Shelley  Wright,  Executive                                                                    
Director, Southeast  Conference; Andi  Story, Vice-President                                                                    
Juneau School Board;  Glenn Gelbrich, Superintendent, Juneau                                                                    
School District; Carl  Rose, Executive Director, Association                                                                    
of  Alaska  School  Boards;  John  Alcantra,  Juneau;  Bruce                                                                    
Johnson,;  Elizabeth  Nudelman,  Director,  School  Finance,                                                                    
Department   of  Education;   Senator  Kevin   Meyer;  Annie                                                                    
Carpeneti,  Department of  Law; Christine  Marasigan, Staff,                                                                    
Senator  Meyer;  Doug   Wooliver,  Administrative  Attorney,                                                                    
Alaska  Court System;  Dana Owen,  Staff, Senator  Egan; Max                                                                    
Mertz, //;                                                                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Steve  Bradshaw, Sitka  School  District; Bridget  Kauffman,                                                                    
Sitka; Karen  Martinsen, Sitka; Jim  Nygaard, Superintendent                                                                    
of Schools,  Cordova; Pete Hoepfner, School  Board, Cordova;                                                                    
Pete  Lewis, Superintendent,  Fairbanks  North Star  Borough                                                                    
School  District;  Sue  Hull,   North  Star  Borough  School                                                                    
District, Fairbanks;  Babes Hudson, North Pole;  Bill Bjork,                                                                    
Education  Association,  Fairbanks;  Dave  Jones,  Assistant                                                                    
Superintendent,  Kenai  Peninsula Borough  School  District,                                                                    
Soldotna;   LaDawn   Druce,   President,   Kenai   Peninsula                                                                    
Education  Association,  Soldotna;   Sammy  Crawford,  Kenai                                                                    
Peninsula  Borough  School  Board; Bill  McLeod,  Dillingham                                                                    
School  District,  Dillingham;  Sergio  Acuna,  Construction                                                                    
Industry, Anchorage; Pat Falor,  Local 341, Anchorage; Stacy                                                                    
Allen, Local 341, Anchorage; Kelly  Nash, Kodiak; Luke Fulp,                                                                    
Kodiak; Bill  Watkins, Kodiak; Stuart McDonald,  Kodiak; Ian                                                                    
Dutton,  Alaska Sea  Life Center;  Fred Parady,  North Slope                                                                    
School  District;  Lon   Garrison,  Sitka;  Russell  Nelson,                                                                    
Dillingham   School  District,   Dillingham;  Pearl   Strub,                                                                    
Bristol  Bay Economic  Development Corporation,  Dillingham;                                                                    
Nicole Strub,  University of  Alaska Fairbanks,  Bristol Bay                                                                    
Campus, Dillingham                                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB  15    SEX OFFENDER/UNDERAGE ALCOHOL OFFENSE                                                                                 
                                                                                                                                
     SB 15 was HEARD and HELD in Committee for further                                                                          
     consideration.                                                                                                             
                                                                                                                                
SB  58    INCREASING NUMBER OF SUPERIOR CT JUDGES                                                                               
                                                                                                                                
     SB 58 was REPORTED out of committee with individual                                                                        
     recommendations   accompanying   new   and   previously                                                                    
     published fiscal notes.                                                                                                    
                                                                                                                                
SB  84    VOC ED  FUNDING/BASE STUDENT ALLOCATION                                                                               
                                                                                                                                
     CSSB 84 (FIN) was REPORTED out of committee with a "do                                                                     
     pass" recommendation and with accompanying fiscal                                                                          
     notes.                                                                                                                     
                                                                                                                                
SB  90    BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                                 
                                                                                                                                
     SB 90 was REPORTED out of committee with individual                                                                        
     recommendations and accompanying fiscal notes.                                                                             
                                                                                                                                
                                                                                                                                
SENATE BILL NO. 84                                                                                                            
     "An Act relating to funding  for high school vocational                                                                    
     education  as   a  component  of  funding   for  public                                                                    
     schools;  increasing the  base student  allocation used                                                                    
     in  the public  school funding  formula; and  providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
9:06:30 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT  proposed CSSB 84(FIN), work                                                                    
draft 27-LS0465\T.                                                                                                              
                                                                                                                                
Co-Chair Stedman OBJECTED for purpose of discussion.                                                                            
DARWIN  PETERSON,  STAFF,  SENATOR  STEDMAN,  explained  the                                                                    
committee substitute.  He stated that sections  1 through 3,                                                                    
which pertained to the vocational  education factor of 1.01,                                                                    
remained the same as the  previous version as did section 4;                                                                    
the base student  allocation of $110 increase in  FY 12. The                                                                    
$115 base student allocation for  FY 13 and $120 increase in                                                                    
FY  14  had  been  removed. He  continued  that  sections  5                                                                    
through  11 added  a new  entity that  would be  eligible to                                                                    
receive  cash contributions  that  corporations could  write                                                                    
off. These  entities included any learning  center under the                                                                    
Coastal America  Partnership.  He  stated that the  tax that                                                                    
the  credit  could be  applied  towards  already existed  in                                                                    
statue. He stated that sections  12 and 13 were new sections                                                                    
that  referred to  the tax  credits. The  additional Coastal                                                                    
American Partnership  learning center  that was  being added                                                                    
would be  repealed in 2021.  Section 13 extended  the sunset                                                                    
date for  the changes made  to the education tax  credits in                                                                    
SB  236, an  Omnibus  Education Tax  Credit  Bill, to  2021.                                                                    
Section 14 was the effective date of July 1, 2011.                                                                              
                                                                                                                                
9:09:08 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  no                                                                    
further OBJECTION  CSSB 84(FIN), work draft  27-LS0465\T was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
Senator Thomas  pointed out to  the committee that  the bill                                                                    
would  provide one  year of  stable school  funding so  that                                                                    
districts could  concentrate on educational  outcomes rather                                                                    
that cutting  budgets and laying  off faculty. He  noted the                                                                    
dedicated funding stream  for vocational/technical education                                                                    
written into  the bill,  which had  been lacking  support in                                                                    
previous  years. He  urged support  for the  passage of  the                                                                    
legislation.                                                                                                                    
9:11:02 AM                                                                                                                    
Co-Chair Stedman  noted the two  new SFIN fiscal  notes, one                                                                    
for the  Department of Education and  Early Development, one                                                                    
for  the  K-12  Foundation   Program,  one  for  the  Alaska                                                                    
Challenge  Youth  Academy.  He stated  that  updated  fiscal                                                                    
notes to  replace the  SFIN notes would  be required  by the                                                                    
committee.                                                                                                                      
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
STEVE BRADSHAW, SITKA  SCHOOL DISTRICT (via teleconference),                                                                    
spoke in support of SB 84.                                                                                                      
                                                                                                                                
BRIDGET  KAUFFMAN,  SITKA  (via  teleconference),  spoke  in                                                                    
support of  SB 84. She  expressed concern for  rising parent                                                                    
fees for school language  and athletic programs. She worried                                                                    
that parents  were struggling financially  in order  to give                                                                    
their   children   the   opportunity   to   participate   in                                                                    
extracurricular activities.                                                                                                     
                                                                                                                                
KAREN  MARTINSEN, SITKA  (via teleconference),  testified in                                                                    
support of  SB 84. She  hoped that  the passage of  the bill                                                                    
would enhance  training in  career and  technical education.                                                                    
She  revealed  that   within  the  last  3   years  she  had                                                                    
personally spent  $1,600 in vocational program  fees for her                                                                    
child. She feared that other  children in the community were                                                                    
not able to afford such fees.                                                                                                   
                                                                                                                                
JIM  NYGAARD,   SUPERINTENDENT  OF  SCHOOLS,   CORDOVA  (via                                                                    
teleconference), spoke  in support of  SB 84. He  added that                                                                    
the  district  needed  more  funding   in  order  to  retain                                                                    
programs and staff.                                                                                                             
                                                                                                                                
9:17:50 AM                                                                                                                    
                                                                                                                                
PETE HOEPFNER,  SCHOOL BOARD, CORDOVA  (via teleconference),                                                                    
testified in  support of SB  84. He stated that  Cordova was                                                                    
being  forced to  decrease  staff, while  at  the same  time                                                                    
class sizes were increasing.                                                                                                    
                                                                                                                                
9:18:57 AM                                                                                                                    
                                                                                                                                
PETE  LEWIS, SUPERINDENDENT,  FAIRBANKS  NORTH STAR  BOROUGH                                                                    
SCHOOL DISTRICT  (via teleconference),  spoke in  support of                                                                    
SB  84.  He explained  the  district  was short  on  funding                                                                    
despite the  various attempts  that had  been made  to spend                                                                    
responsibly.                                                                                                                    
                                                                                                                                
SUE  HULL, NORTH  STAR  BOROUGH  SCHOOL DISTRICT,  FAIRBANKS                                                                    
(via teleconference), testified in support of SB 84.                                                                            
                                                                                                                                
9:20:06 AM                                                                                                                    
                                                                                                                                
BABES HUDSON, NORTH POLE  (via teleconference), testified in                                                                    
support  of SB  84.  She  stated that  the  bill would  help                                                                    
special needs  children who  might not  go to  a traditional                                                                    
college, but would benefit from vocational training.                                                                            
9:21:46 AM                                                                                                                    
                                                                                                                                
BILL   BJORK,   EDUCATION    ASSOCIATION,   FAIRBANKS   (via                                                                    
teleconference), spoke  in support  of SB  84. He  felt that                                                                    
the  number  one resource  development  issue  in the  state                                                                    
should  be the  development of  our children.  He felt  that                                                                    
this could not be done without quality schools.                                                                                 
                                                                                                                                
9:23:12 AM                                                                                                                    
                                                                                                                                
DAVE  JONES,   ASSISTANT  SUPERINTENDENT,   KENAI  PENINSULA                                                                    
BOROUGH  SCHOOL  DISTRICT,  SOLDOTNA  (via  teleconference),                                                                    
testified  in support  of SB  84. He  relayed that  the base                                                                    
student allocation  increase was necessary in  order for the                                                                    
continuation of  programmatic staffing.  He stated  that the                                                                    
vocation  courses  in  schools   within  the  district  were                                                                    
perpetually  full which  resulted in  children being  turned                                                                    
away from programs.                                                                                                             
                                                                                                                                
9:24:47 AM                                                                                                                    
                                                                                                                                
LADAWN   DRUCE,   PRESIDENT,   KENAI   PENINSULA   EDUCATION                                                                    
ASSOCIATION,   SOLDOTNA  (via   teleconference),  spoke   in                                                                    
support  of SB  84. She  stressed education  accountability,                                                                    
and accountability of teachers. She  shared that there was a                                                                    
pilot  teacher evaluation  program beginning  her area.  She                                                                    
stressed  that  standardized  testing   should  not  be  the                                                                    
statewide indicator successful schools.                                                                                         
                                                                                                                                
9:26:24 AM                                                                                                                    
                                                                                                                                
SAMMY CRAWFORD,  KENAI PENINSULA  BOROUGH SCHOOL  BOARD (via                                                                    
teleconference), testified  in support of SB  84. She stated                                                                    
that her  district had not  added any new programs,  but had                                                                    
are  still suffered  from  budget cuts.  She  said that  the                                                                    
borough had worked to become  more cost effective by cutting                                                                    
energy costs  and rebidding copy  contracts and  bus routes,                                                                    
but cost continued to rise.                                                                                                     
9:28:02 AM                                                                                                                    
                                                                                                                                
BILL  MCLEOD, DILLINGHAM  SCHOOL  DISTRICT, DILLINGHAM  (via                                                                    
teleconference), spoke in support of  SB 84. He stressed the                                                                    
importance  of career  and technical  education programs  in                                                                    
improving graduation rates. He  remarked that the passing of                                                                    
the bill would allow for  a reading specialist, which was of                                                                    
great need in the community.                                                                                                    
9:31:19 AM                                                                                                                    
                                                                                                                                
SERGIO   ACUNA,   CONSTRUCTION  INDUSTRY,   ANCHORAGE   (via                                                                    
teleconference), spoke in support of  SB 84. He stressed the                                                                    
importance of vocational training.                                                                                              
                                                                                                                                
9:32:24 AM                                                                                                                    
                                                                                                                                
PAT  FALOR,  LOCAL   341,  ANCHORAGE  (via  teleconference),                                                                    
testified  in   support  of  SB   84.  He   highlighted  the                                                                    
importance  that other  avenues were  available to  students                                                                    
that were not going to a traditional college.                                                                                   
                                                                                                                                
9:32:56 AM                                                                                                                    
                                                                                                                                
STACY  ALLEN,  LOCAL  341, ANCHORAGE  (via  teleconference),                                                                    
spoke in support of SB 84.                                                                                                      
                                                                                                                                
9:33:43 AM                                                                                                                    
                                                                                                                                
KELLY  NASH,  KODIAK   (via  teleconference),  testified  in                                                                    
support of SB 84.                                                                                                               
                                                                                                                                
9:34:28 AM                                                                                                                    
                                                                                                                                
LUKE FULP, KODIAK (via teleconference),  spoke in support of                                                                    
SB  84. As  the Director  of Finance  for the  Kodiak Island                                                                    
Borough  School   District  he  believed  that   without  an                                                                    
increase  in the  base student  allocation  Kodiak could  be                                                                    
facing  a budget  shortfall of  approximately $2  million in                                                                    
FY12.                                                                                                                           
                                                                                                                                
9:35:12 AM                                                                                                                    
                                                                                                                                
BILL  WATKINS,  KODIAK  (via teleconference),  testified  in                                                                    
support  of SB  84. He  relayed that  the dropout  rates for                                                                    
high school  students in Kodiak  were very high.  He pointed                                                                    
out to the  committee that any student that  had a departure                                                                    
from school after their freshman  year was determined a drop                                                                    
out,  even if  that student  returned to  finish at  a later                                                                    
date. The  graduation rate Representative Salmon  based on a                                                                    
student finishing  in four years. He  believed that learning                                                                    
was the constant  and time was the variable.  He argued that                                                                    
there were  numerous variable not associated  with education                                                                    
that  could cause  a  student to  drop out  of  school on  a                                                                    
temporary  basis.  Most  school  districts  had  alternative                                                                    
programs  in place  to assist  the students.  He noted  that                                                                    
because the  student would not  graduate in four  years they                                                                    
would be counted as dropouts  or non-graduates. He felt that                                                                    
without  SB  84  the  graduation rates  would  decrease  and                                                                    
dropout rates would increase.                                                                                                   
                                                                                                                                
9:37:20 AM                                                                                                                    
                                                                                                                                
STUART MCDONALD,  KODIAK (via teleconference),  testified in                                                                    
support  of  SB  84.  He   expressed  concern  for  academic                                                                    
opportunities for students in  logging camps and other small                                                                    
pockets communities throughout the  state. He stated that SB
84 would help to keep education relevant in rural Alaska.                                                                       
                                                                                                                                
9:40:08 AM                                                                                                                    
                                                                                                                                
IAN  DUTTON, ALASKA  SEA LIFE  CENTER (via  teleconference),                                                                    
spoke in support of SB 84.                                                                                                      
                                                                                                                                
9:40:53 AM                                                                                                                    
                                                                                                                                
FRED    PARADY,   NORTH    SLOPE   SCHOOL    DISTRICT   (via                                                                    
teleconference), testified  in support  of SB 84.  He stated                                                                    
that  his district  cut 17  jobs  in 2010,  and without  the                                                                    
increase would be forced to do the same this year.                                                                              
                                                                                                                                
9:42:18 AM                                                                                                                    
                                                                                                                                
LON GARRISON,  SITKA (via teleconference), spoke  in support                                                                    
of  SB  84.  He  shared  that the  Sitka  School  Board  had                                                                    
unanimously passed a resolution to support the legislation.                                                                     
                                                                                                                                
9:43:13 AM                                                                                                                    
                                                                                                                                
RUSSELL NELSON, DILLINGHAM  SCHOOL DISTRICT, DILLINGHAM (via                                                                    
teleconference), testified in support of SB 84.                                                                                 
9:43:46 AM                                                                                                                    
                                                                                                                                
PEARL STRUB,  BRISTOL BAY ECONOMIC  DEVELOPMENT CORPORATION,                                                                    
DILLINGHAM (via teleconference), spoke in  support of SB 84.                                                                    
She  believed that  vocational  and  technical offerings  in                                                                    
rural high schools should be strengthened.                                                                                      
                                                                                                                                
9:45:06 AM                                                                                                                    
                                                                                                                                
NICOLE STRUB,  UNIVERSITY OF  ALASKA FAIRBANKS,  BRISTOL BAY                                                                    
CAMPUS,  DILLINGHAM   (via  teleconference),   testified  in                                                                    
support of SB 84.                                                                                                               
9:46:49 AM                                                                                                                    
                                                                                                                                
LAURY  SCANDLING,  ASSISTANT SUPERINTENDANT,  JUNEAU  SCHOOL                                                                    
DISTRICT, spoke  in support  of SB 84.  She shared  that the                                                                    
district  took seriously  the  issue  of accountability  and                                                                    
that  improvements   had  been   made  in   achievement  and                                                                    
graduation  rates.   She  relayed  that  the   district  was                                                                    
reconfiguring resources  to reflect an investment  in career                                                                    
and technical education. She opined  that layoffs were still                                                                    
expected even with the base student allocation increase.                                                                        
                                                                                                                                
9:49:07 AM                                                                                                                    
                                                                                                                                
ANNE KURLAND,  JUNEAU, testified  in support  of SB  84. She                                                                    
said that the  district had already cut $4  million from the                                                                    
budget and without the allocation  increase an additional $1                                                                    
million would need to be cut.                                                                                                   
                                                                                                                                
9:50:20 AM                                                                                                                    
                                                                                                                                
ELLEN PAVITT, JUNEAU, spoke in strong support of SB 84.                                                                         
                                                                                                                                
9:50:59 AM                                                                                                                    
                                                                                                                                
COREY PAVITT, JUNEAU, testified in support of SB 84.                                                                            
                                                                                                                                
9:51:43 AM                                                                                                                    
                                                                                                                                
MARY HALCALA,  JUNEAU, referred  to a  letter in  the packet                                                                    
from the  Juneau Economic Council.  She spoke in  support of                                                                    
SB 84.                                                                                                                          
                                                                                                                                
SHELLEY  WRIGHT, EXECUTIVE  DIRECTOR, SOUTHEAST  CONFERENCE,                                                                    
referred  to   a  letter   from  the   Southeast  Conference                                                                    
expressing  support  of  SB  84.  She  personally  spoke  in                                                                    
support of SB 84.                                                                                                               
                                                                                                                                
9:55:13 AM                                                                                                                    
                                                                                                                                
ANDI  STORY, VICE-PRESIDENT  JUNEAU SCHOOL  BOARD, testified                                                                    
in support  of SB 84.  She referred  to a letter  of support                                                                    
from the Juneau Board of Education.                                                                                             
                                                                                                                                
9:56:17 AM                                                                                                                    
                                                                                                                                
GLENN  GELBRICH,  SUPERINTENDENT,  JUNEAU  SCHOOL  DISTRICT,                                                                    
spoke in support of SB 84.                                                                                                      
9:57:19 AM                                                                                                                    
                                                                                                                                
CARL ROSE, EXECUTIVE DIRECTOR,  ASSOCIATION OF ALASKA SCHOOL                                                                    
BOARDS, testified in support of SB 84.                                                                                          
                                                                                                                                
JOHN ALCANTRA, JUNEAU, spoke in  support of SB 84. He stated                                                                    
that  the  National   Education  Association  supported  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:59:06 AM                                                                                                                    
                                                                                                                                
BRUCE JOHNSON, JUNEAU, testified in support of SB 84.                                                                           
                                                                                                                                
9:59:32 AM                                                                                                                    
                                                                                                                                
ELIZABETH NUDELMAN, DIRECTOR,  SCHOOL FINANCE, DEPARTMENT OF                                                                    
EDUCATION,  addressed  the   department's  position  of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
10:01:15 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED to  report  CSSB  84 (FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying new  fiscal note(s). There being  NO OBJECTION,                                                                    
it was so ordered.                                                                                                              
                                                                                                                                
CSSB  84 (FIN)  was REPORTED  out  of committee  with a  "do                                                                    
pass" recommendation and with accompanying fiscal notes.                                                                        
                                                                                                                                
10:01:54 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:04:01 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 15                                                                                                            
                                                                                                                                
     "An Act relating to penalties for certain alcohol                                                                          
     offenses involving persons under 21 years of age                                                                           
     committed by a sex offender or child kidnapper."                                                                           
                                                                                                                                
10:04:10 AM                                                                                                                   
                                                                                                                                
SENATOR KEVIN  MEYER explained  that SB  15 would  raise the                                                                    
penalty of  contributing to the  delinquency of a  minor for                                                                    
registered sex offenders.                                                                                                       
                                                                                                                                
10:05:41 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman looked  at  the two  fiscal  notes in  the                                                                    
packet.  He  stated  that  it   was  the  intention  of  the                                                                    
committee upon the  next reading of the bill  to replace the                                                                    
Department of Corrections fiscal  note with an indeterminate                                                                    
Senate Finance Committee fiscal note.                                                                                           
                                                                                                                                
10:06:14 AM                                                                                                                   
                                                                                                                                
Senator  Thomas  wondered  if the  developmentally  disabled                                                                    
were  currently protected  under  statute from  exploitation                                                                    
due to the distribution of alcohol.                                                                                             
                                                                                                                                
Senator Meyer replied that  the developmentally disabled had                                                                    
not been considered during the crafting of the legislation.                                                                     
                                                                                                                                
10:07:18 AM                                                                                                                   
                                                                                                                                
ANNIE  CARPENETI,  DEPARTMENT  OF  LAW,  CRIMINAL  DIVISION,                                                                    
clarified  that  the   substantive  laws  currently  covered                                                                    
people who  were unable to  protect themselves, such  as the                                                                    
developmentally   disabled.  She   added  that   there  were                                                                    
aggravating  factors  during   sentencing  for  those  found                                                                    
guilty  of  committing  sexual   acts  on  people  who  were                                                                    
particularly vulnerable.                                                                                                        
                                                                                                                                
10:08:10 AM                                                                                                                   
                                                                                                                                
Senator Olson  wondered whether studies  had shown  that the                                                                    
increased  penalties  had  cut  down  on  the  instances  of                                                                    
assaults.                                                                                                                       
                                                                                                                                
Ms. Carpeneti replied that the  theory was that children who                                                                    
consumed alcohol were more vulnerable  to sexual attacks and                                                                    
that sex offenders had already displayed predatory conduct.                                                                     
                                                                                                                                
10:09:26 AM                                                                                                                   
                                                                                                                                
Senator  Olson probed  what was  ultimately  expected to  be                                                                    
accomplished through the legislation.                                                                                           
                                                                                                                                
Senator Meyer replied that there  were no documented studies                                                                    
that showed  that passing legislation  of this  kind lowered                                                                    
the instances  of registered offenders deploying  alcohol to                                                                    
exploit  minors.  He said  that  the  bill was  intended  to                                                                    
remove  sex offenders  who temped  minors with  alcohol from                                                                    
the streets and place them in rehabilitation.                                                                                   
                                                                                                                                
10:11:27 AM                                                                                                                   
                                                                                                                                
Senator McGuire  commented that  as the  committee discussed                                                                    
fixing  societal  wrongs  it   was  important  to  take  the                                                                    
weaknesses  in the  corrections  system into  consideration.                                                                    
She  asked  about family  members  who  were registered  sex                                                                    
offenders buying for minor family  members, and wondered how                                                                    
many  felons   would  be   created  as   a  result   of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator  Meyer understood  that if  it was  proven in  court                                                                    
that a  family member  on the  sex offender  registry bought                                                                    
alcohol for  a minor family  member - the  legislation would                                                                    
apply.                                                                                                                          
                                                                                                                                
CHRISTINE  MARASIGAN, STAFF,  SENATOR MEYER,  responded that                                                                    
according to  the Anchorage  Police Department  in 2006-2007                                                                    
there  were 701  reported  sexual assaults.  Of  all of  the                                                                    
reported cases, 30 percent of  the assaults involved victims                                                                    
19 years  old and younger. She  relayed that for all  of the                                                                    
reported   assaults,  more   than  half   involved  alcohol.                                                                    
According  to national  statistics people  who used  alcohol                                                                    
who were between  the ages of 12 and 20  were not purchasing                                                                    
the alcohol themselves. She concluded  that the intention of                                                                    
the legislation  was to keep  minors from  obtaining alcohol                                                                    
from predatory  people who used  alcohol as a  grooming tool                                                                    
in order to entice young people into sexual situations.                                                                         
                                                                                                                                
SB  15  was   HEARD  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
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."                                                                                          
                                                                                                                                
10:15:54 AM                                                                                                                   
                                                                                                                                
DOUG   WOOLIVER,  ADMINISTRATIVE   ATTORNEY,  ALASKA   COURT                                                                    
SYSTEM, explained  the bill. He stated  that the legislation                                                                    
would add  two new  superior court  judges to  the Anchorage                                                                    
bench who would  be assigned to civil cases.  He stated that                                                                    
litigants  in family  law areas  arriving  to court  without                                                                    
representation were  increasing. He stated that  the overall                                                                    
caseload in Anchorage was  significantly higher in Anchorage                                                                    
than in any other city in the state.                                                                                            
                                                                                                                                
Co-Chair Stedman discussed the eight fiscal notes.                                                                              
                                                                                                                                
10:18:38 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  SB 58  out of  committee                                                                    
with  individual recommendations  and  the accompanying  new                                                                    
fiscal  note(s):  COR,  SFIN/DPS  and  previously  published                                                                    
fiscal impact  notes: #1  CRT, #2  CRT, #3  ADM, #4  ADM, #7                                                                    
LAW, #8.                                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
SB  58  was  REPORTED   out  of  committee  with  individual                                                                    
recommendations  accompanying new  and previously  published                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
SENATE BILL NO. 90                                                                                                            
                                                                                                                                
     "An Act classifying and setting a monthly salary for                                                                       
     the executive secretary of the Board of Public                                                                             
     Accountancy."                                                                                                              
                                                                                                                                
10:19:32 AM                                                                                                                   
                                                                                                                                
Senator Egan referred stated that  the bill would reclassify                                                                    
a position according to legislation passed in 2010.                                                                             
                                                                                                                                
10:20:02 AM                                                                                                                   
                                                                                                                                
DANA OWEN,  STAFF, SENATOR EGAN,  explained that  during the                                                                    
26th  legislature the  committee had  authorized a  position                                                                    
for the Board of Accountancy  and had included in the budget                                                                    
funds   to  pay   for  a   range  23.   The  Department   of                                                                    
Administration  had  insisted   on  a  classification  study                                                                    
before the  law could  be implemented. The  study determined                                                                    
that the range should be a  19 and not a 23. The legislation                                                                    
argues that  a range 19  was inappropriate to  the position;                                                                    
the  position required  a more  highly  skilled and  trained                                                                    
individual than  would normally be  found at a range  19. He                                                                    
pointed  out  to  the  committee  that  the  money  for  the                                                                    
position was drawn  entirely from fees, which  resulted in a                                                                    
zero fiscal note.                                                                                                               
                                                                                                                                
10:21:23 AM                                                                                                                   
                                                                                                                                
Senator Olson asked if an attempt  had been made to fill the                                                                    
position at a range 19.                                                                                                         
                                                                                                                                
Mr. Owen replied no.                                                                                                            
                                                                                                                                
Senator  Olson  understood  that  the  position  was  for  a                                                                    
secretary.                                                                                                                      
                                                                                                                                
Mr.  Owen  replied  that the  position  had  been  retitled:                                                                    
Administrative Director.                                                                                                        
                                                                                                                                
10:22:25 AM                                                                                                                   
                                                                                                                                
MAX  MERTZ, CERTIFIED  PUBLIC ACCOUNTANTS,  BOARD OF  PUBLIC                                                                    
ACCOUNTANCY, stated that an  investigation into the position                                                                    
had revealed  the details of  the position for  other boards                                                                    
of  accountancy  around the  country  and  had compared  the                                                                    
general market  for the CPA  community in Alaska.  From that                                                                    
investigation a salary range had  been determined that would                                                                    
be necessary in order to hire  a person who met the position                                                                    
requirements.                                                                                                                   
                                                                                                                                
10:23:17 AM                                                                                                                   
                                                                                                                                
Senator Olson highlighted  that there had been  no effort to                                                                    
hire for  the position at a  range 19. He said  that a study                                                                    
had  been   done  that  indicated  that   the  position  was                                                                    
appropriate at a 19 pay range.                                                                                                  
                                                                                                                                
Mr. Mertz explained that  the Department of Administration's                                                                    
study,  which  compared  the statutory  requirement  of  the                                                                    
position  with  the  statutory requirements  of  nurses  and                                                                    
medical administrators, had not evaluated the position                                                                          
against the market or positions that were similar.                                                                              
                                                                                                                                
Senator Olson wondered if there was a requirement for the                                                                       
position to be filled by a licenses CPA.                                                                                        
                                                                                                                                
Mr. Mertz replied that it was not a requirement.                                                                                
                                                                                                                                
10:24:47 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman MOVED to report SB 90 out of committee                                                                         
with individual recommendations and the accompanying fiscal                                                                     
note(s).                                                                                                                        
There being NO OBJECTION it was so ordered.                                                                                     
                                                                                                                                
SB 90 was REPORTED out of committee with individual                                                                             
recommendations and accompanying fiscal notes.                                                                                  
                                                                                                                                
10:25:24 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:25 AM.                                                                                          

Document Name Date/Time Subjects
SB 84 History of funding.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 Support Statements 2.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 sponsor statement Letterhead.docx SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 Support Statements.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 15 Support Letter APOA AACP WPA.pdf SFIN 4/6/2011 9:00:00 AM
SFIN 4/8/2011 9:00:00 AM
SB 15
SB 15 Support Ltr ABADA AMHB.pdf SFIN 4/6/2011 9:00:00 AM
SFIN 4/8/2011 9:00:00 AM
SB 15
CSSB 15 Spronsor Statement version E.pdf SFIN 4/6/2011 9:00:00 AM
SFIN 4/8/2011 9:00:00 AM
SB 15
SB 23 FIN Version S.pdf SFIN 4/6/2011 9:00:00 AM
SB 23
SB 84 JEDC Resolution 04-11.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 JEDC Support Letter.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 58 SFIN 2011 Fiscal Note - DPS.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB 58 SFIN 2011 Fiscal Note - OPA.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB 58 SFIN 2011 Fiscal Note DOL.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB 58 SFIN 2011 Fiscal Note - PDA.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB 84 $11M_VocEd_thruFoundation_4-4-11 (2).pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 Voc Ed steps.docx SFIN 4/6/2011 9:00:00 AM
SB 84
04 05 11 SB 58 SFIN 2011 Fiscal Note - DPS (2).pdf SFIN 4/6/2011 9:00:00 AM
SB 58
NEW - SB58-DOC-OC-03-10-11.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB058-DOA-OPA-1-29-11.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB058-DOA-PDA-1-29-11.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB058-LAW-CIV-01-29-11.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB058-OOG-DOE-1-28-11.pdf SFIN 4/6/2011 9:00:00 AM
SB 58
SB 84 - CSSB 84 (FIN) v.T Fiscal Note 1.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 DEED New SFIN Fiscal Note - 2.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 DEED New SFIN Fiscal Note.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 SFIN Fiscal Note AK Challenge Youth Academy.pdf SFIN 4/6/2011 9:00:00 AM
SB 84
SB 84 FN SFIN for Foundaton Program.pdf SFIN 4/6/2011 9:00:00 AM
SB 84