Legislature(2013 - 2014)SENATE FINANCE 532
03/11/2014 05:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| SB64 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | SB 138 | ||
| = | SB 64 | ||
SENATE FINANCE COMMITTEE
March 11, 2014
5:21 p.m.
5:21:22 PM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 5:21 p.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Bruce Campbell, Staff, Senator Pete Kelly; Joe Balash,
Commissioner, Department of Natural Resources; Michael
Pawlowski, Deputy Commissioner, Strategic Finance,
Department of Revenue; Christine Marasigan, Staff, Senator
Kevin Meyer; Jordon Shilling, Staff, Senator John Coghill.
SUMMARY
SB 64 OMNIBUS CRIME/CORRECTIONS BILL
SB 64 was HEARD and HELD in committee for further
consideration.
SB 138 GAS PIPELINE; AGDC; OIL & GAS PROD. TAX
SB 138 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 138
"An Act relating to the purposes of the Alaska Gasline
Development Corporation to advance to develop a large-
diameter natural gas pipeline project, including
treatment and liquefaction facilities; establishing
the large-diameter natural gas pipeline project fund;
creating a subsidiary related to a large-diameter
natural gas pipeline project, including treatment and
liquefaction facilities; relating to the authority of
the commissioner of natural resources to negotiate
contracts related to North Slope natural gas projects,
to enter into confidentiality agreements in support of
contract negotiations and implementation, and to take
custody of gas delivered to the state under an
election to pay the oil and gas production tax in
kind; relating to the sale, exchange, or disposal of
gas delivered to the state under an election to pay
the oil and gas production tax in kind; relating to
the duties of the commissioner of revenue to direct
the disposition of revenues received from gas
delivered to the state in kind and to consult with the
commissioner of natural resources on the custody and
disposition of gas delivered to the state in kind;
relating to the authority of the commissioner of
natural resources to propose modifications to existing
state oil and gas leases; making certain information
provided to the Department of Natural Resources and
the Department of Revenue exempt from inspection as a
public record; making certain tax information related
to an election to pay the oil and gas production tax
in kind exempt from tax confidentiality provisions;
relating to establishing under the oil and gas
production tax a gross tax rate for gas after 2021;
making the alternate minimum tax on oil and gas
produced north of 68 degrees North latitude after 2021
apply only to oil; relating to apportionment factors
of the Alaska Net Income Tax Act; authorizing a
producer's election to pay the oil and gas production
tax in kind for certain gas and relating to the
authorization; relating to monthly installment
payments of the oil and gas production tax; relating
to interest payments on monthly installment payments
of the oil and gas production tax; relating to
settlements between producers and royalty owners for
oil and gas production tax; relating to annual
statements by producers and explorers; relating to
annual production tax values; relating to lease
expenditures; amending the definition of gross value
at the 'point of production' for gas for purposes of
the oil and gas production tax; adding definitions
related to natural gas terms; clarifying that credit
may not be taken against the in-kind levy of the oil
and gas production tax for gas for purposes of the
exploration incentive credit, the oil or gas producer
education credit, and the film production tax credit;
making conforming amendments; and providing for an
effective date."
Vice-Chair Fairclough MOVED to ADOPT the proposed committee
substitute for CS SB 138 (FIN), Work Draft 28-GS2806\Y
(Bullock, 3/9/14).
Co-Chair Kelly OBJECTED for discussion.
5:23:11 PM
BRUCE CAMPBELL, STAFF, SENATOR PETE KELLY, discussed the
Proposed Changes in the Work Draft (copy on file):
Title
Page 1, lines 2-5
The CS adds title language related to the new
direction to the Alaska Gasline Development
Corporation (AGDC) to advance an Alaska liquefied
natural gas project, and sets up a new fund within
AGDC for that purpose. Also, conforming changes were
added related to expedited review by state agencies of
AGDC proposals. Creation of a new subsidiary was
removed.
Page 2, line 21, to page 3, line S
The CS adds direction to the governor to establish an
advisory board on municipal involvement in an Alaska
liquefied natural gas project; and direction to Alaska
Energy Authority (AEA) to develop an energy
infrastructure plan.
Page 3, line 6
Finally, the title reflects the addition of local
governments and Native corporations to those who may
be able, along with Alaskans, to own part of a
pipeline project through a plan to be developed by
Department of Revenue.
Intent Language
Page 4, line 24
The CS modifies the intent language added in Senate
Resources. On page 4, line 21 and line 24, the word
"maximum" is removed before "benefit", for clarity.
Also, the term "project labor agreements" is amended
to read "labor agreements." (SENATE AMENDMENT)
5:24:26 PM
Co-Chair Kelly remarked that the language concerning labor
agreements would be removed and replaced with a letter of
intent.
Mr. Campbell continued:
AGDC Sections
The CS makes extensive changes relating to AGDC,
including removal of language creating a new
subsidiary corporation to do a liquefied natural gas
project, giving that duty instead to AGDC.
5:25:37 PM
AT EASE
5:26:24 PM
RECONVENED
Mr. Campbell continued to discuss the changes:
Page 4, line 30, to page 5, line 9
Adds new overall direction to AGDC, giving AGDC the
primary state role in advancing an Alaska liquefied
natural gas project. Clarifies that AGDC's overriding
mission is to develop projects that benefit the state
and Alaskans, including delivering gas instate,
providing economic benefits, and providing revenue to
the state. Also, adds that AGDC's work developing
projects should assist the Department of Revenue and
Department of Natural Resources in their duties to
maximize the value of the state's royalty gas and
gas delivered as production tax.
Page 5, lines 18-25
Modifies original direction to participate in an
Alaska liquefied natural gas project; adds that AGDC
can't charge a state entity more for gas services than
it costs to provide those services.
Page 6, lines 7-8
Adds to AGDC's structure that it is created to act in
the best interests of the state, based on its purpose.
Page 6, lines 24-28
In clarifying the relationship between AGDC and state
departments also directly involved in a gas project,
prohibits the commissioners of Revenue and Natural
Resources from serving on AGDC's board. Originally, HB
4 prohibited the commissioners from board service
while AGIA (Alaska Gasline Inducement Act) was in
effect.
Page 6, line 29 to page 7, line 6
Adds a new subsection directing AGDC's board, to the
maximum extent possible, to maximize the efficient use
of state resources and to establish appropriate
firewalls and separations within the corporation to
protect commercially sensitive information.
Page 7, Section 6
Makes conforming changes. The prior version created a
subsidiary to work on an Alaska liquefied natural gas
project. This version removes creation of a statutory
subsidiary, and instead directs the corporation to
work on an Alaska liquefied natural gas project and
adds distinctions in AGDC's duties and
responsibilities between an instate natural gas
pipeline and an "Alaska liquefied natural gas
project."
Page 9, lines 6-7
Conforming; adds the new "Alaska liquefied natural gas
project fund."
Page 9, lines 18-24
Adds a new ability to ACDC to acquire an ownership
role in an Alaska liquefied natural gas project,
including liquefaction facilities. Later, on page 10,
lines 7-10, adds a new subsection that restricts a
part of AGDC working on an instate gas pipeline from
exercising the new powers related to a liquefaction
project.
Page 9, lines 26-27
Conforming; only an instate natural gas pipeline
regulated by the Regulatory Commission of Alaska is
required to hold an open season. An Alaska liquefied
natural gas project would not have to, and so would
not have to disclose results.
Page 10, lines 11-15
Adds a new subsection directing AGDC to provide
information relevant to royalty and tax paid with gas
contracts to DNR and DOR, subject to confidentiality
agreements.
Page 11, lines 27-30
Clarifies that AGDC can create subsidiaries
incorporated as nonprofits, or otherwise.
Page 12, section 13
Conforming; adds the new Alaska liquefied natural gas
project fund explicitly to AGOC's annual fund
reporting requirements under the Executive Budget Act.
Page 12, line 29, to page 13, line 31
Removes changes to the definition of "instate natural
gas pipeline." Adds new term, "Alaska liquefied
natural gas project," and defines it in the same terms
as in the Heads of Agreement for the AK LNG project.
Mr. Campbell noted a possible typo in the outline.
5:30:55 PM
AT EASE
5:31:27 PM
RECONVENED
5:31:32 PM
Mr. Campbell announced that the outline did not contain a
mistake. He continued to discuss the proposed changes:
Page 56, line 14
Repeals 31.25.080(f), which previously directed AGDC
to accommodate a larger project on certain
infrastructure. As this direction is now more fully
articulated in AGDC's purpose and the new Section 5,
31.25.080(f) is no longer required.
DNR authority sections
Page 15, lines 7-8
Clarifies that agreements to be entered into by the
Department of Natural Resources Commissioner include,
but are not limited to, balancing, marketing,
disposition of gas, and offtake agreements.
(FAIRCLOUGH AMENDMENT)
Page 15, lines 21-23
Conforming to legislative drafting style; re-words the
requirement that the commissioner may share
confidential information with the legislature only in
executive sessions or under confidentiality
agreements.
Page 18. line 8, to page 20. line 9
Re-works sections 18 and 19 (related to the
commissioner's ability to modify leases) for greater
clarity, (ADMINISTRATION AMENDMENT)
Page 18, lines 29-31
Modifications to net profit shares and sliding scale
royalty rates have to yield a value to the state that
is no less than the value the state would have
received before a modification. Previously, the lower
threshold for modifications was set at 12.5 percent.
(ADMINISTRATION AMENDMENT)
Page 20, lines 14-15; 23-24; and 30-31, and page 21.
lines 9-11
Conforming changes for clarity.
Page 21, lines 23-28
Adds and defines new term, "initial project term."
(ADMINISTRATION AMENDMENT)
Page 22, line 4-24
Adds three new sections with conforming changes. House
Bill 369 of 2010 gave special treatment to permits,
authorizations and rights-of-way issued to an instate
natural gas pipeline project. The changes make those
provisions apply to any project under AGDC.
(ADMINISTRATION AMENDMENT)
Public information sections
No changes
DOR authority sections
Page 28-MISSING SECTION, MISSING (15)
Tax sections
Page 28, line 9. to page 29, line 5
The original bill amended the extraction factor used
in calculating corporate income tax to accommodate the
new concept of taking gas as production tax. This
section is new, and amends the sales factor, which is
also used in calculating corporate income tax, to
incorporate the new tax as gas concept.
(ADMINISTRATION AMENDMENT) (Currently duplicated as
drafting error as new section 34, page 29, line 6 to
page 30, line 1- this needs
to be deleted.)
Page 30, line 10 and lines 19-20
Clarifies that reinjected gas is not included in
calculations for determining corporate income tax due.
Page 31, line 11
Increases the tax on gas from 10.5 percent to 13
percent (KELLY AMENDMENT)
Page 33, line 6
Removes the qualifier "irrevocable" from the election
a producer can make to pay tax with gas. (KELLY
AMENDMENT)
5:36:37 PM
Page 33, line 12 and line 15
Conforms to the prior change increasing the gas tax to
13 percent.
Page 34, line 21, to page 35, line 3
Conforming change related to the conforming changes
already in the prior version related to the
educational tax credit.
Page 42, line 11
Conforming to the new 13 percent gas tax.
Page 56, lines 6-7
The bill changes the definition of "point of
production." As the term is used in the Alaska Gasline
Inducement Act, this new section 57 clarifies that
point of production for purposes of AGIA is defined as
it was when AGIA was enacted. (ADMINISTRATION
AMENDMENT)
Technical sections
Page 56, lines 15-25
Adds new direction to the governor to establish an
advisory board on municipal involvement in a North
Slope gas project. (OLSON AMENDMENT)
Page 56, line 26, to page 57, line 16
Adds new direction to the Alaska Energy Authority to
develop a plan to extend energy infrastructure to
parts of the state without direct access to a North
Slope natural gas pipeline. AEA is to consult with
AGDC, AIDEA and the Department of Revenue in
developing the plan, which is due to the legislature
in January 2017. (HOFFMAN AMENDMENT)
Page 57, lines 19-20, line 24, line 27, and page 58
lines 4, 7-8, 11. 12 and 18
In the section requiring the Department of Revenue to
develop a plan for Alaskans to participate in owning
part of a North Slope natural gas pipeline, adds that
the plan should include ways for local governments and
Native corporations to also participate.
(FAIRCLOUGH/OLSON AMENDMENTS)
Page 59. lines 4-5 and lines 7-8
Makes conforming changes to the effective dates.
Page 59, line 6
Sets an effective date of Jan. 1, 2021, for section
40, which is the conforming section related to the
education tax credit.
5:41:50 PM
AT EASE
5:42:56 PM
RECONVENED
Senator Kelly REMOVED his OBJECTION. There being NO further
OBJECTION, the proposed committee substitute was adopted.
Senator Fairclough MOVED to ADOPT Amendment 10 (copy on
file).
Page 6:
Delete lines 18-28 (Section 4)
Co-Chair Kelly OBJECTED for discussion.
JOE BALASH, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES,
testified that Page 6, line 18, section 4 was a provision
that had not been in the original bill. He stated that
current law held that the board of directors for AGDG
should be comprised of 5 public members and 2 cabinet
members; however there was a restriction on DOR and DNR
employees from serving on the board as long as the AGIA
license was in place. The original bill had not included
the proposed language because it had been expected that the
enabling legislation would pass, the AGIA license would
concluded, and the governor would have full freedom to
appoint to the AGDC board whichever cabinet member he
wanted. The language being added in Section 4 would
restrict the governor's discretion in which cabinet
member's he permanently appointed to the board.
Co-Chair Kelly REMOVED his OBJECTION to Amendment 10. There
being NO OBJECTION, it was so ordered.
5:46:35 PM
Co-Chair Kelly directed committee attention to Page 18,
lines 29-31, which discussed modifications to net profit
shares and sliding scale royalty rates.
5:46:40 PM
Commissioner Balash stated that the section would allow for
the modification of existing leases; in particular, the
switching rights currently enjoyed by the department. He
noted additional provision concerning the taking of leases
with a net profit share component, or sliding scale royalty
component, and developing a modification that would
establish a fixed addition to the base royalty rate.
Co-Chair Kelly solicited further questions from the
committee.
5:49:05 PM
Vice-Chair Fairclough looked at Page 18, line 28 of the
bill. She noted that the previously fixed number had been
replaced with language and requested clarification as to
whether there was a 25 percent cap.
Commissioner Balash replied that the language crafted by
the Senate Resources Committee had established 12.5 percent
as the floor and the concern had been identified that some
of the leases in question had a higher royalty rate than
12.5 percent; some Port Thomson leases, in particular. He
shared that establishing 12.5 percent as the floor would
give the department room to lower base royalty rates and
would not be in line with the intent of the legislation.
5:50:02 PM
Vice-Chair Fairclough understood that there would still be
a combined rate cap of 25 percent under the legislation.
Mr. Pawlowski responded that the 13 percent tax rate that
the committee substitute amended; in combination with
section 18, would lead to the approximate 25 percent rate.
5:50:38 PM
Vice-Chair Fairclough looked at page 56, and wondered how
the definition of point of production from the previous
committee substitute was different than under AS 43.55.900.
Mr. Pawlowski stated that that the substantive changes to
the point of production proposed in the legislation could
be found on Page 55, but the section began on Page 54, line
30. He noted that in the calculation of the production tax,
the expenditures upstream from the point of production were
deductible lease expenditures, while expenditures
downstream from the point of production were recovered
through tariffs or fees on the infrastructure. The change
on Page 55, line 12, was to push the point of production
upstream to the farthest upstream of the inlet than any
pipeline transporting the gas to a gas treatment plant. He
said that setting that point of production as far upstream
within the definition of the Alaska LNG project as possible
had been key discussions in the Senate Resource Committee.
As the project was currently conceived, the inlet of the
transmission line for Point Thomson would be as the gas was
leaving Point Thomson; in Prudhoe Bay it would be the
transmission line from the Prudhoe Bay unit into the gas
treatment plant. He explained that expenditures downstream
would not be included as deductible lease expenditures and
would not have direct impact on the upstream fiscal system.
He furthered that the change on Page 56 had been
recommended by legislative legal. Inducements offered AGIA
had been tied to the point of production; the amendment was
a clarifying amendment generated by the change made by the
committee substitute.
Senator Hoffman WITHDREW Amendment 1, 28-GS2806\Y.1,
Nauman/Bullock, 3/9/14 (copy on file). There being NO
OBJECTION, it was so ordered.
Senator Olson WITHDREW Amendment 2, 28-GS2806\Y.2,
Nauman/Bullock, 3/9/14 (copy on file). There being NO
OBJECTION, it was so ordered.
Senator Olson MOVED to ADOPT Amendment 3, 28-GS2806\Y.3,
Nauman/Bullock, 3/9/14 (copy on file).
Page 3, line 7, following "project;"
Insert "relating to a restriction on employment after
leaving state service for a public officer who
negotiates a contract or develops terms for inclusion
in a proposed contract associated with a North Slope
natural gas project;"
Page 56, following line 14:
Insert a new bill section to read:
"Sec. 60. The uncodified law of the State of Alaska is
amended by adding a new section to read:
Restrictions on employment after leaving state service
for certain public officers. (a) Notwithstanding AS
39.52.180, a public officer who leaves state service
may not, for 10 years after leaving state service,
represent, advise, assist for compensation, or accept
employment from a person or an affiliate of a person
that was a party to a contract negotiated under the
authority of AS 38.05.020(b)(11), enacted by sec. 15
of the Act, that was under consideration or negotiated
by the administrative unit served by that public
officer, and in which the public officer participated
personally and substantially through the exercise of
official action.
(b) This section does not prohibit an agency from
contracting with a former public officer to act on a
matter of on behalf of the state.
(c) The application of (a) of the section may not be
waived.
(d) In this section, "administrative unit," "agency,"
and public officer" have the meanings given in AS
39.52.960."
Renumber the following bill sections accordingly.
Page 59, line 4:
Delete "63"
Insert "64"
Page 59, line 7:
Delete "secs. 64 and 65"
Insert "secs. 65 and 66"
Co-Chair Kelly OBJECTED for discussion.
5:55:56 PM
Senator Olson stated he was open to amending the 10 year
time period.
5:56:13 PM
Vice-Chair Fairclough MOVED to AMEND Amendment 3:
Line 12:
Delete "10"
Insert "3"
There being NO OBJECTION, it was so ordered.
Vice-Chair Fairclough REMOVED her OBJECTION to Amendment 3.
There being NO further OBJECTION, Amendment 3 was adopted
as amended.
5:57:54 PM
AT EASE
5:58:12 PM
RECONVENED
Co-Chair Kelly WITHDREW Amendment 4, 28-GS2806\Y.4,
Nauman/Bullock, 3/9/14 (copy on file). There being NO
OBJECTION, it was so ordered.
Co-Chair Kelly gave a brief explanation as to why he was
withdrawing Amendment 4.
Co-Chair Kelly WITHDREW Amendment 5, 28-GS2806\Y.5,
Nauman/Bullock, 3/9/14 (copy on file). There being NO
OBJECTION, it was so ordered.
5:59:35 PM
AT EASE
6:00:36 PM
RECONVENED
Co-Chair Kelly explained why he was withdrawing Amendment
5.
6:01:07 PM
AT EASE
6:01:18 PM
RECONVENED
6:01:27 PM
Co-Chair Kelly MOVED to ADOPT Amendment 6, 28-GS2806\Y.6,
Nauman/Bullock, 3/9/14 (copy on file).
Page 6, line 29:
Delete "a new subsection"
Insert "new subsections"
Pate 7, following line 6:
Insert a new subsection to read:
"(d) The board shall appoint a program director for an
Alaska liquefied natural gas project. The program
director appointed under this section shall
(1) serve at the pleasure of the board; and
(2) report to the board and the executive
director of the corporation."
Vice-Chair Fairclough OBJECTED for the purpose of
discussion.
Commissioner Balash explained that the provision was an
effort on the part of the department to reconcile where the
statutory subsidiary had begun in the original bill. He
felt that specific concerns had been addressed; however,
the work that AGDC had be narrowly focused. With the
amendment, AGDC would continue to pursue that as-soon-as-
possible effort with the addition of holding and investing
the state's interest in liquefaction.
Vice-Chair Fairclough REMOVED her OBJECTION. There being NO
further OBJECTION, Amendment 6 was ADOPTED.
6:03:30 PM
AT EASE
6:04:46 PM
RECONVENED
Co-Chair Kelly MOVED to ADOPT Amendment 7, 28-GS2806\Y.7,
Nauman/Bullock, 3/9/14 (copy on file).
Page 9, line 24, following "project":
Insert ":
(24) after consultation with the commissioner of
revenue and the commissioner of natural resources,
enter into contracts relating to an Alaska liquefied
natural gas project, including contracts for services
related to operation, marketing, transportation, gas
treatment, marine terminal operation or liquefaction"
Vice-Chair Fairclough OBJECTED for discussion.
6:05:04 PM
Commissioner Balash explained that the amendment would add
to the list of powers and duties of the corporation a
provision that, after consultation with the commissioner of
DOR and the commissioner of DNR, enter into contracts for
the Alaska LNG project. He said that this was in an effort
to flag the role that DOR and DNR would play in the
arrangement. He stated that AGDC would be signing the
equity agreements with the other project sponsors, that
that they would be doing so on behalf of the two
departments. The amendment would provide that the
departments received proper consultation.
Vice-chair Fairclough REMOVED her OBJECTION. There being NO
OBJECTION, Amendment 7 was ADOPTED.
Co-Chair Kelly MOVED to ADOPT Amendment 8 (copy on file).
Page 5, line 1:
Delete "that benefits the state and the"
Insert "for the maximum benefit of the"
Vice-Chair Fairclough OBJECTED for discussion.
Co-Chair Kelly stated that the amendment would edit the
purpose language of AGDC to match the Alaska State
Constitution, Article 8, section 2, "for the maximum
benefit of the people."
Vice-Chair Fairclough REMOVED her OBJECTION. There being NO
further OBJECTION, Amendment 8 was ADOPTED.
6:06:26 PM
Co-Chair Kelly MOVED to ADOPT Amendment 9 (copy on file).
Page 3, line 10, through page 4, line 26:
Section 1: Delete all
(This amendment would delete all intent language.)
Vice-Chair Fairclough OBJECTED for discussion.
Co-Chair Kelly explained that the amendment would remove
Section 1 and replace the section with a letter of intent.
Vice-Chair Fairclough REMOVED her objection. There being NO
OBJECTION, Amendment 9 was ADOPTED.
6:07:38 PM
AT EASE
6:07:55 PM
RECONVENED
6:07:59 PM
Co-Chair Kelly discussed housekeeping concerning SB 138.
SB 138 was HEARD and HELD in committee for further
consideration.
6:10:50 PM
AT EASE
6:15:14 PM
RECONVENED
SENATE BILL NO. 64
"An Act establishing the Alaska Sentencing Commission;
relating to jail-time credit for offenders in court-
ordered treatment programs; allowing a reduction of
penalties for offenders successfully completing court-
ordered treatment programs for persons convicted of
driving while under the influence or refusing to
submit to a chemical test; relating to court
termination of a revocation of a person's driver's
license; relating to limitation of drivers' licenses;
relating to conditions of probation and parole; and
providing for an effective date."
6:15:54 PM
Vice-Chair Fairclough MOVED to ADOPT the proposed committee
substitute for CS SB 65 (FIN), Work Draft 28-LS0116/S
(Gardner, 3/10/14). There being NO OBJECTION, it was so
ordered.
6:16:53 PM
CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, explained
the changes in the CS. She referred to a document that
outlined the changes (copy on file):
SFIN CS for S8 64 (JUO) makes the following changes:
•Increases the felony theft level from $750 to $1,200
There was consensus to move the felony theft level.
•Moves the 24/7 Sobriety testing program from
Department of Corrections to the Department of Health
and Social Services*
There is a pilot program currently in Health and
Social Services, a three year pilot project for 24/7
alcohol/drug testing in the communities of
Anchorage/Matsu/Fairbanks
•Moves the Recidivism Reduction Fund from Department
of Corrections to the Department of Health and Social
Services* As we heard in public testimony from the
Department of Corrections, they do not have
granting/receipt authority to do this and would have
to ramp up some infrastructure to do so. The program
will be a better fit in HSS.
•Completely removes the Alaska Criminal Justice
Commission* After committee discussion it was pointed
out that some of the same outcomes could be
accomplished with a taskforce or some other means
rather than have another ongoing commission, which
costs money that could be better used in programming.
There are several organizations that could be tasked
with evaluating or studying recidivism in Alaska-in
fact some already have: UAA Justice Center, Alaska
Native Justice Center, Alaska Immigration Justice
Project, the Recidivism Working Group, or ISER.
•Adds language to correctional screening for fetal
alcohol syndrome, fetal alcohol spectrum disorder or
another brain-based disorder. This was done in
consultation with both co-chairs, the vice chair and
the Alaska Mental Trust Authority.
•Changes should result in a substantially reduced
fiscal note from the Department of Corrections, a new
fiscal note from the Department of Health and Social
Services that while it will note costs, will be less
than what the Department of Corrections proposed. It
is anticipated that the Alaska Court System would
submit a zero fiscal note.
6:20:05 PM
Co-Chair Meyer noted that the new fiscal note for the
current bill version had yet to be presented to the
committee.
Ms. Marasigan replied that new fiscal notes would reflect
savings as a result of the work done in conjunction with
the Department of Health and Social Services (DHSS) and
Department of Corrections (DOC). She noted that staff from
each finance member's office contributed to providing the
language necessary to realize cost savings. She understood
that the elimination of the Alaska Criminal Justice
Commission would result in a zero fiscal note from the
court system.
Co-Chair Meyer stated that the fiscal notes would be
available in the morning.
6:22:16 PM
Co-Chair Kelly requested information regarding the
necessary language needed to separate property crimes from
the $500 theft level.
6:23:30 PM
JORDON SHILLING, STAFF, SENATOR JOHN COGHILL, referred to a
graph that illustrated the breakdown of the number of
charges under specific statutes. He said he would provide
further information on the subject.
6:24:24 PM
Ms. Marasigan interjected that she had done some research
which had revealed that the number of crimes that were
committed that involved property damage, and reached the
$500 threshold, were substantially lower than theft.
6:24:57 PM
Co-Chair Kelly asked if the property crime level had been
moved up as well as the theft.
Mr. Shilling replied in the affirmative.
SB 64 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
6:26:08 PM
The meeting was adjourned at 6:26 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 64 SFIN CS for SB 64 version S.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 64 |
| CS SB138 work draft Version Y.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 3 11 14 White Paper_TC Participation.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 1 - Hoffman.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 2 - Olson.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 3 - Olson.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 6 - Kelly.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 7 - Kelly.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 8 - Kelly.docx |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 9 - Kelly.docx |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Amendment 10 - Fairclough.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138 Changes in CS versionY.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| SB138TechnicalDraftingCorrections2.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 138 |
| CS SB64 Changes in version S.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 64 |
| CS SB64 Sise by Side Comparison version D to version S.pdf |
SFIN 3/11/2014 5:00:00 PM |
SB 64 |