Legislature(1993 - 1994)

04/10/1993 10:15 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 10, 1993                                        
                           10:15 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-93, #50, Side 2 (end-000)                                                
  SFC-93, #52, Side 1 (355-end)                                                
  SFC-93, #52, Side 2 (end-000)                                                
  SFC-93, #56, Side 1 (000-135)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 10:15 a.m.                                                     
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chair Pearce,  Senators Kelly, Jacko  and                 
  Sharp  were  present.   Senator  Kerttula arrived  while the                 
  meeting  was in  progress.  Senators  Frank and  Rieger were                 
  absent.                                                                      
                                                                               
  ALSO ATTENDING:  Senators Randy  Phillips, Robin Taylor, and                 
  Rick Halford;  John Hansen, Jr., Gaming  Manager, Department                 
  of Commerce & Economic Development; Paul Fuhs, Commissioner,                 
  Department  of  Community  &  Economic Development;  Randall                 
  Hines, Program Officer, Division of Family & Youth Services,                 
  Department  of Health &  Social Services;  Annette Kreitzer,                 
  Aide  to  Senator  Leman,  prime  sponsor  of  SB  91;  Dave                 
  Williams, Department  of Health &  Social Services  Planner,                 
  Project Choice, Department of Health & Social Services; Kaye                 
  Kanne,  Certified  Direct-Entry  Midwife;   Marilyn  Holmes,                 
  Midwifery Consumers; Don Hitchcock, Director, Department  of                 
  Administration; Mike  Greany, Director, and  other analysts,                 
  Legislative  Finance  Division;   and  aides  to   committee                 
  members.                                                                     
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SB 51 -        An  Act providing  for establishment  of work                 
                 camps for  juveniles adjudicated  delinquent,                 
                 and extending to all cities and  to nonprofit                 
                 corporations authority to maintain facilities                 
                 for juveniles.                                                
                                                                               
                 Senator  Phillips,  sponsor  of  SB  51,  and                 
                 Randall Hines, Program  Officer, Division  of                 
                 Family &  Youth Services,  Dept. of Health  &                 
                 Social Services,  testified in support  of SB                 
                 51.  Discussion was had by Senators Kerttula,                 
                 Phillips and  Mr. Hines regarding  a previous                 
                 state program for youth.   SB 51 was REPORTED                 
                                                                               
                                                                               
                 OUT of committee  with a fiscal note  for the                 
                 Dept. of Health & Social Services for $9.3.                   
                                                                               
  CSSSSB 91 -    An  Act  prohibiting   unfair  discrimination                 
                 against                                                       
  (HES)          direct-entry  midwives  who  perform services                 
                 within  the  scope  of  their  certification;                 
                 providing  for  coverage of  midwife services                 
                 under  Medicaid;  reordering the  priority of                 
                 optional services provided by the state under                 
                 Medicaid;  and  providing  for  an  effective                 
                 date.                                                         
                                                                               
                 Annette  Kreitzer,  Aide  to  Senator  Leman,                 
                 sponsor of  SB 91,  spoke in  support of  the                 
                 bill.    Kaye  Kanne, Certified  Direct-Entry                 
                 Midwife,  and  Marilyn  Holmes  of  Midwifery                 
                 Consumers, also spoke in support of the bill.                 
                 Dave  Williams,  Dept.  of  Health  &  Social                 
                 Services  Planner,  Project Choice,  Dept. of                 
                 Health & Social Services, spoke to the fiscal                 
                 notes.   CSSSSB 91(HES)  was REPORTED OUT  of                 
                 committee   with   fiscal  notes   for  DH&SS                 
                 (Medical  Assistance, Medicaid  Non-facility)                 
                 of $65.0, DH&SS  (Medical Assistance,  Claims                 
                 Processing)  of  $41.2,  and  DH&SS  (Medical                 
                 Assistance, Medicaid Facility) of $(180.0).                   
                                                                               
  CSSB 45(HES) - An Act relating to persons  under 21 years of                 
                 age;  providing  for designation  of shelters                 
                 for runaway minors; relating to the detention                 
                 and  incarceration  of minors;  and providing                 
                 for an effective date.                                        
                                                                               
                 Senator  Phillips,  Randall   Hines,  Program                 
                 Officer, Division of Family & Youth Services,                 
                 Dept. of Health & Social Services,  and Donna                 
                 Schultz and Pat O'Brien, testified in support                 
                 of  the  bill.    Senator  Taylor  voiced his                 
                 opposition  to the  bill.   CSSB 45(HES)  was                 
                 HELD in committee until April 13, 1993.                       
                                                                               
  CSSB 141(L&C)- An  Act  relating  to  workers'  compensation                 
                 coverage for certain high school students  in                 
                 uncompensated work-study programs.                            
                                                                               
                 Senator Kelly,  sponsor of SB  141, testified                 
                 in support  of  the  bill.    Don  Hitchcock,                 
                 Director, Dept. of  Administration, spoke  to                 
                 the fiscal notes.  CSSB 141(L&C) was REPORTED                 
                 OUT of committee with fiscal notes  for Dept.                 
                 of    Education    of    $24.0,   Dept.    of                 
                 Administration of  $24.0, and  a zero  fiscal                 
                 note for the Dept. of Labor.                                  
                                                                               
                                                                               
  CSSB 153(RES)- An  Act relating to  the exchange  of certain                 
                 fish for seafood products,  custom processing                 
                 of certain fish, and use  of certain fish for                 
                 charitable purposes.                                          
                                                                               
                 Senator Taylor, sponsor of  SB 153, testified                 
                 in support of the bill.  Senator Jacko voiced                 
                 his  concern that  this  bill allowed  easier                 
                 export of  sport caught fish.   CSSB 153(RES)                 
                 was REPORTED  OUT of committee  with a fiscal                 
                 note for DEC of $5.0, and a  zero fiscal note                 
                 for DF&G.                                                     
                                                                               
  CSSB 76(JUD) - An  Act  requiring  regulations  relating  to                 
                 pull-tabs  adopted  by   the  Department   of                 
                 Commerce  and  Economic  Development   to  be                 
                 consistent  with  the  North American  Gaming                 
                 Regulators    Association    standards     on                 
                 pull-tabs;  allowing  permittees  to contract                 
                 with vendors to  sell pull-tabs on behalf  of                 
                 the  permittee;  restricting the  purchase of                 
                 pull-tabs by certain  persons; requiring  the                 
                 sale of pull-tabs by vendors  to be solely by                 
                 a   pull-tab   ticket   dispensing   machine;                 
                 requiring receipts before certain  prizes may                 
                 be   paid;   prohibiting   distributors  from                 
                 supplying pull-tabs to  vendors; relating  to                 
                 registration   of   vendors;   requiring  the                 
                 licensing   of  out-of-state   manufacturers;                 
                 allowing  public  or  nonprofit  broadcasting                 
                 stations to  sell pull-tabs at  more than one                 
                 location;  preventing  persons  with  certain                 
                 convictions from being involved in charitable                 
                 gaming activities as  a permittee,  licensee,                 
                 vendor, person responsible  for an  activity,                 
                 fund  raiser or consultant  of a licensee, or                 
                 employee  in  a  managerial   or  supervisory                 
                 capacity and providing exceptions for certain                 
                 persons  whose  convictions are  at  least 10                 
                 years old;  relating to  multiple-beneficiary                 
                 charitable gaming permits and door prizes for                 
                 charitable  gaming;  requiring  Department of                 
                 Commerce and Economic Development approval of                 
                 contracts    between     charitable    gaming                 
                 permittees  and  operators before  gaming may                 
                 occur;  limiting  the  amount  of  authorized                 
                 expenses  to a  percentage of  adjusted gross                 
                 income  for  a  charitable  gaming  activity;                 
                 relating to  the reporting  and payment of  a                 
                 percentage  of the  adjusted gross  income by                 
                 operators to permittees; requiring Department                 
                 of Commerce and Economic Development approval                 
                 of   contracts    between   permittees    and                 
                                                                               
                                                                               
                 operators;  allowing   the  commissioner   of                 
                 commerce  and  economic development  to issue                 
                 orders prohibiting violations of state gaming                 
                 laws;  relating  to  the   authority  of  the                 
                 commissioner   of   commerce   and   economic                 
                 development  to suspend  or revoke  a permit,                 
                 license,  or  registration;  relating to  the                 
                 uses to which charitable gaming proceeds  may                 
                 be  put;  relating  to `political  uses'  and                 
                 `political organizations' as those  terms are                 
                 used in  the charitable gaming  statutes; and                 
                 providing for an effective date.                              
                                                                               
                 Co-chair Pearce announced  that CSSB  76(FIN)                 
                 work  draft  "M"  was before  the  committee.                 
                 Discussion  was  had   by  Co-chair   Pearce,                 
                 Senator  Kelly,  Commissioner Paul  Fuhs, and                 
                 John  Hansen, Jr.,  Gaming Manager,  Dept. of                 
                 Commerce  &  Economic   Development.     CSSB                 
                 76(JUD) was HELD in committee until April 12,                 
                 1993.                                                         
                                                                               
  Bills scheduled but not heard:                                               
                                                                               
       SB 88  -  Capital Project Grants                                        
                                                                               
       SB 89  -  Approp: Capital Project Matching Grants                       
                                                                               
       SB 148 -  Alaska  Railroad  Corporation,  would not  be                 
                 heard and held in committee.                                  
                                                                               
                                                                               
  SENATE BILL NO. 51:                                                          
                                                                               
       An Act providing  for establishment  of work camps  for                 
       juveniles adjudicated delinquent, and  extending to all                 
       cities  and  to  nonprofit  corporations  authority  to                 
       maintain facilities for juveniles.                                      
                                                                               
  CO-CHAIR DRUE PEARCE invited Senator Randy Phillips, sponsor                 
  of SB 51,  to join the committee  at the table and  speak to                 
  the bill.                                                                    
                                                                               
  SENATOR  RANDY PHILLIPS  said similar  legislation had  been                 
  introduced several years  ago.  He  said that the work  camp                 
  facility  would be  used only  by minors.   The  individuals                 
  placed  in the  work camp could  be required to  do labor on                 
  buildings  or  perform  other  duties including  educational                 
  projects.  SB 51 would authorize  the Department of Health &                 
  Social Services  (DH&SS)  to establish  regulations for  the                 
  operation of these  work camps  and would place  delinquents                 
  into  work camps instead of detention  facilities.  It would                 
  also provide that  a city  or non-profit organization  could                 
                                                                               
                                                                               
  maintain  a  juvenile  work  camp  under regulations  to  be                 
  adopted  by DH&SS.  There are  23 states that have some kind                 
  of boot  or work  camps as  an alternative  for young  adult                 
  offenders.  He said the bill carried a fiscal note for DH&SS                 
  in the  amount of $9.3  to set up  regulations.  He  said he                 
  provided  the  committee with  a  sectional analysis,  and a                 
  handout describing a successful boot camp in Nevada (copy on                 
  file).                                                                       
                                                                               
  SENATOR JAY  KERTTULA said  that state  work camps had  been                 
  established right after  statehood.  It seemed  to work very                 
  well until special  interest groups  began to provide  full-                 
  cost-of-care.    The   result  was  that   full-cost-of-care                 
  services  for the  least of  the delinquents cost  the state                 
  more per  person per day than  it did after  the program was                 
  decreased  to  half and  only  the incorrigibles  were being                 
  served.  He warned that this well-meaning program could turn                 
  into a disaster.                                                             
                                                                               
  Senator Phillips pointed  out that SB 51  had passed through                 
  the Health & Social Services and Judiciary Committee with no                 
  changes.                                                                     
                                                                               
  Co-chair  Pearce  invited  Randall Hines,  Program  Officer,                 
  Division of Family & Youth Services,  Department of Health &                 
  Social Services, to join the committee at the table.                         
                                                                               
  RANDALL HINES spoke to the fiscal note in the amount of $9.3                 
  which would fund the design  of the regulations establishing                 
  the  work camp  as outlined  in  SB 51.   He  said  that the                 
  department was in support of the legislation.                                
                                                                               
  SENATOR TIM KELLY asked if this facility could be contracted                 
  out.  Mr. Hines  said that it would not have  to operated by                 
  the state.                                                                   
                                                                               
  Senator Kerttula  spoke in  support of  SB 51  but felt  the                 
  fiscal note  would not cover  the total expense  of starting                 
  this  program.  He  reiterated his support  but advised that                 
  this was a  multi-million dollar program.   Possibly it  was                 
  the least  expensive way to  handle youth problems  but felt                 
  the department should be more realistic about the real cost.                 
  Mr. Hines said the department was  just beginning to develop                 
  the program, and had not decided what individuals  would fit                 
  into  it.   He  said  that  money is  being  spent  on these                 
  individuals  now  and  hopefully that  same  money  would be                 
  transferred to this program.                                                 
                                                                               
  Senator  Phillips  said  that  the   department  could  draw                 
  sufficient information from the work  camps in other states.                 
  He felt the intention was  to go slowly and do it right.  He                 
  pointed out Sec. 4 outlined who could run a work camp.                       
                                                                               
  Senator Kelly MOVED for passage of SB 51 from committee with                 
                                                                               
                                                                               
  individual recommendations.  No  objections being heard,  SB                 
  51  was   REPORTED   OUT  of   committee   with   individual                 
  recommendations and with a fiscal note for the Department of                 
  Health  &  Social  Services  for  $9.3.    Co-chair  Pearce,                 
  Senators  Kelly  and  Sharp  signed  "do  pass."    Senators                 
  Kerttula  and  Jacko signed  "no  recommendation."   Senator                 
  Frank had left the meeting and did not sign.                                 
                                                                               
                                                                               
  CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 91(HES):                       
                                                                               
       An  Act  prohibiting   unfair  discrimination   against                 
       direct-entry midwives  who perform services  within the                 
       scope of their certification; providing for coverage of                 
       midwife   services   under  Medicaid;   reordering  the                 
       priority  of optional  services provided  by the  state                 
       under Medicaid; and providing for an effective date.                    
                                                                               
  Co-chair  Pearce invited  Annette Kreitzer, Aide  to Senator                 
  Loren Leman, prime sponsor  of SB 91, to join  the committee                 
  at the table and give an overview of the bill.                               
                                                                               
  ANNETTE KREITZER said that SB  91 would add certified direct                 
  entry midwives to the optional services covered by Medicaid.                 
  It would reorder  the priority of optimum  services provided                 
  by  the State under  Medicaid which would  make midwives the                 
  first to  be dropped  from the  list in  case there  was not                 
  enough coverage for  all services.   It was  amended in  the                 
  Health & Social  Services Committee to add  certified direct                 
  entry  midwives   to  the  statute  that   prohibits  unfair                 
  discrimination  by  insurance  companies   against  midwives                 
  providing midwifery services.  She  explained that this bill                 
  would  not  add to  the  numbers  of pregnant  women  who do                 
  presently qualify for Medicaid.   She wanted it to  be clear                 
  that  this bill would not expand Medicaid roles, but instead                 
  would allow the  state to stretch  its dollars for  services                 
  provided under Medicaid.                                                     
                                                                               
  DAVE  WILLIAMS,  Department  of  Health  &  Social  Services                 
  Planner, Project  Choice,  Department  of  Health  &  Social                 
  Services, said the fiscal note  for Medicaid Facility showed                 
  a projected savings to the department of $180.0 under SB 91.                 
  The department projected that 250  women would use certified                 
  direct entry midwives, and that half of these women would be                 
  Medicaid eligible.  It  was suggested that it may  be higher                 
  than the projection.  He said  the department felt that more                 
  mothers  would  seek  care  and  seek  it earlier  in  their                 
  pregnancy if midwifery was  an option.  That cost  was shown                 
  on  the Medicaid  non-facility fiscal  note for $65.0.   The                 
  fiscal  note for  claims  processing was  in  the amount  of                 
  $41.2.                                                                       
                                                                               
  KAYE  KANNE, Certified  Direct-Entry Midwife,  said that  in                 
                                                                               
                                                                               
  addition  to  the  savings  pointed  out by  Dave  Williams,                 
  because  midwifes  see  their  patients  more often,  better                 
  educate their patients, and stress  the need for self  care,                 
  healthier babies are born providing even more savings to the                 
  state.                                                                       
                                                                               
  MARILYN  HOLMES  of   Midwifery  Consumers  said  that   the                 
  midwifery group  costs run about  37 percent of  the medical                 
  group.   If  women go  to doctors because  they do  not have                 
  access  to  midwives  through  Medicaid  the fee  is  $5,000                 
  (physician and  hospital combined).   She  pointed out  that                 
  midwifery  births result  in 50-70  percent less  c-sections                 
  which  cost about  $8,000.  She  pointed out  that midwifery                 
  care is more  comprehensive and  includes information  about                 
  nutrition and breast feeding.   Midwives also visit the home                 
  at  least four times after the birth.   This results in less                 
  costs after the birth because the infants receive extra care                 
  that  they  would not  receive  in  a medical  setting.   By                 
  reading the fiscal  notes, she said  that by the end  of the                 
  decade,  SB 91 could save  the state a  quarter of a million                 
  dollars a year.                                                              
                                                                               
  Co-chair Pearce  asked how  many communities  in Alaska  had                 
  licensed midwives.  Ms. Kanne said that she did not know but                 
  approximately 15 communities.                                                
                                                                               
  Senator Kelly MOVED for passage of SB 91 from committee with                 
  individual recommendations.   No objections being heard,  SB                 
  91   was   REPORTED   OUT  of   committee   with  individual                 
  recommendations,  and three fiscal  notes for the Department                 
  of  Health  & Social  Services  for $65.0  --  Medicaid Non-                 
  facility,  $41.2  --  Claims  Processing  and  $(180.0)   --                 
  Medicaid  Facility.   Co-chair  Pearce,  Senators Kelly  and                 
  Sharp  signed  "do   pass."     Senator  Jacko  signed   "no                 
  recommendation."  Senators  Frank and Kerttula had  left the                 
  meeting and did not sign.                                                    
                                                                               
                                                                               
  CS FOR SENATE BILL NO. 45(HES):                                              
                                                                               
       An  Act relating  to  persons under  21  years of  age;                 
       providing  for  designation  of  shelters  for  runaway                 
       minors; relating to the detention and  incarceration of                 
       minors; and providing for an effective date.                            
                                                                               
  Senator Randy  Phillips said that  SB 45 dealt  with runaway                 
  youth under the age of  21.  According to the  Department of                 
  Health  &  Social Services,  there  are about  3,500 runaway                 
  youth  in  Alaska every  year.   He  noted that  a sectional                 
  analysis and a position paper by  the Department of Health &                 
  Social Services had been provided to  the committee (copy on                 
  file).  He said  that this bill focuses on  some problems of                 
  youth by changing the statutes relating to persons under the                 
                                                                               
                                                                               
  age of 21  as well  as providing a  mechanism for  licensing                 
  shelters.    It   would  also   change  the  definition   of                 
  contributing  to  the  delinquency  of  a  minor.    Current                 
  statutes provide  that a person over  the age of  19 may not                 
  aid, induce, cause or  encourage a child under the age of 16                 
  to be absent from the custody of a parent or legal guardian.                 
  The bill  raises that  age from  16 to  18.   It also  would                 
  prohibit  an unemancipated  minor from  working  without the                 
  permission of the minor's legal guardian after 10:00 p.m. or                 
  9:00 p.m.  on school  nights if the  minor is under  age 16.                 
  The bill would  also allow parents of a minor  child to file                 
  an  emancipation petition with  the court  on behalf  of the                 
  minor.  It would allow parents who cannot compel  a child to                 
  remain in their custody and control, to initiate the process                 
  that would make the child solely accountable for his/her own                 
  actions.  It  would require  parents to take  steps to  work                 
  with the child before a minor could be emancipated.  He said                 
  that this bill also would add sections from SB 25, sponsored                 
  by Senator Jim Duncan.  He said that SB 45 was intended as a                 
  one-step  comprehensive  look at  statutes  that pertain  to                 
  minor children.  As a result of a conference held in Wasilla                 
  in December 1991,  the "Children's Crisis Booklet"  had been                 
  written and was offered to the committee.                                    
                                                                               
  Senator Phillips noted that the committee had before them an                 
  amendment that  provided an exemption for  runaway shelters.                 
  He said the amendment  was at the request of  Covenant House                 
  Alaska, a runaway crisis center in Anchorage.                                
                                                                               
  RANDALL HINES, Program  Officer, Division of Family  & Youth                 
  Services, Department of Health & Social Services, introduced                 
  Donna  Schultz,  Associate  Coordinator  and  Pat   O'Brien,                 
  Program Officer, both from the Department of Health & Social                 
  Services.  Mr. Hines confirmed that  the department had been                 
  working with  Senator Phillips on  the issue of  runaway and                 
  homeless   youth   in   his  district   and   had  developed                 
  recommendations that came out of the aforemen-tioned runaway                 
  and homeless youth conference.   Another conference was held                 
  this year and additional recommendations would be  available                 
  soon.                                                                        
                                                                               
  Senator Phillips asked for an  explanation of sections taken                 
  from  SB   25.     DONNA  SCHULTZ,  Associate   Coordinator,                 
  Department  of  Health &  Social  Services, said  that those                 
  sections would prohibit  the confinement of youth  in lockup                 
  jails  and  correctional  facilities  except  under  special                 
  conditions.    The conditions  that  would allow  the lockup                 
  would be that a juvenile could be held on a criminal offense                 
  for up to six  hours before being transferred to  a juvenile                 
  facility.  They  may be held  longer if transportation to  a                 
  juvenile facility is  not possible.  Such  a situation could                 
  happen in the bush if a plane or weather made  it impossible                 
  to transport the juvenile.   Or a juvenile could  be held in                 
  protective custody if the juvenile was intoxicated.                          
                                                                               
                                                                               
  Senator Kelly said that  six hours seemed too short  a time.                 
  Ms. Schultz said  that the  six hour restriction  had to  do                 
  with  federal  regulations that  the  state was  required to                 
  monitor.  Senator Kelly  asked if an exception was made if a                 
  juvenile was under the influence of drugs.  Ms. Schultz said                 
  she did not  know but if  the juvenile was incapacitated  it                 
  seemed that  would apply.   She also said  another exception                 
  was made that a  juvenile could be held for  longer than six                 
  hours if they  had been waived  to adult jurisdiction.   She                 
  said that since 1990 work was  being done so the state could                 
  receive federal funding money  in this area.  She  said that                 
  the state  received about  $325.0 a  year to  deal with  the                 
  juvenile  justice program,  and for  the last few  years the                 
  state  has had  to seek  waivers since  it  has not  met the                 
  federal   mandates.    The   jail  removal  legislation  was                 
  dependent upon the state receiving those federal dollars.                    
                                                                               
  SENATOR ROBIN TAYLOR voiced  his concern that SB 45  did not                 
  have  a Judiciary  Committee referral.   He  cited the  long                 
  battle regarding juvenile legislation.  He felt  there was a                 
  series of problems with SB 45 that would further  confiscate                 
  the opportunity of a parent or  the police to reasonably act                 
  in  regard to minors.   He pointed  out that there  is not a                 
  juvenile facility in Ketchikan.                                              
                                                                               
  Ms. Schultz said that one option  since 1989 in Ketchikan as                 
  well as  other communities  is a  non-secured shelter  where                 
  juveniles  can  be  placed  instead of  a  lock-up  or  jail                 
  facility.   She  said that it  cost $171.0  to set  up these                 
  shelters.   If  the  police  cannot  find the  parents  then                 
  juveniles can be  placed in these shelters  and arrangements                 
  can be made to find the parents or the juvenile can be taken                 
  to another detention facility.                                               
                                                                               
  Senator   Taylor  raised   a   question  regarding   private                 
  residences not  being  able  to be  used  for  shelters  for                 
  runaway minors, unless they are  designated as a shelter for                 
  runaways by a non-profit corporation that is  licensed to do                 
  that work.  He did not think there  was one home established                 
  in the area he represented.                                                  
                                                                               
  PAT O'BRIEN, Program Officer, Department  of Health & Social                 
  Services, said that  those shelters Senator Taylor  spoke to                 
  were  not available  currently,  but  that this  legislation                 
  would create shelters.   These shelters differ from the non-                 
  secured shelters that Ms. Schultz  described.  She said that                 
  in Wrangell  and Craig, eight or nine people were on call to                 
  care for juveniles.                                                          
                                                                               
  Co-chair Pearce said that  Sec. 3 through 8 changed  the way                 
  juveniles could be emancipated and allowed a parent or legal                 
  custodian  to petition to emancipate a  juvenile.  She asked                 
  what happened  to a  minor that was  emancipated by  his/her                 
                                                                               
                                                                               
  parent or  guardian.   Ms. Schultz  said that although  this                 
  would  allow  a parent  or guardian  to  file a  petition to                 
  emancipate a juvenile it would  not change the standards  by                 
  which the judge would base that  decision.  Ms. Schultz said                 
  the judge would  have to  look a the  juvenile's ability  to                 
  support   him/her  self   because  the  juvenile   would  be                 
  considered as an adult in all  aspects from the point he/she                 
  is emancipated.                                                              
                                                                               
  End SFC-93 #50, Side 1                                                       
  Begin SFC-93 #52, Side 1                                                     
                                                                               
  SENATOR BERT SHARP voiced his objection to the inclusion  of                 
  Sec. 13 in SB  45.  Senator  Kelly asked why  SB 45 had  not                 
  gone to the Judiciary Committee.   Co-chair Pearce suggested                 
  that the committee  pass the  bill out of  committee with  a                 
  recommendation  of  referral  to  the  Judiciary  Committee.                 
  Senator Taylor said  that he would  be willing to work  with                 
  Senator Phillips regarding some of the issues raised.                        
                                                                               
                         Recess 11:05am                                        
                        Reconvene 11:11am                                      
                                                                               
  End SFC-93 #52, Side 1                                                       
  Begin SFC-93 #52, Side 2                                                     
                                                                               
  Senator  Kelly MOVED for adoption of an amendment by Senator                 
  Phillips dated March  22, 1993 "8-LS0355\J.1 (copy  on file)                 
  amended to  change "47.10.350(a)  or" to "47.10.350(c)  or".                 
  Co-chair Pearce asked for a show of hands.  The amendment as                 
  amended was adopted on a vote of  4 to 1.  (Senators Pearce,                 
  Jacko, Kelly, and Sharp  were in support.  Senator  Kerttula                 
  was opposed.)                                                                
                                                                               
  Co-chair Pearce announced that CSSB 45(FIN) would be HELD in                 
  committee until Tuesday, April  13, 1993, enabling  Senators                 
  Phillips and Taylor  to develop amendments  on the areas  of                 
  concern.                                                                     
                                                                               
                                                                               
  CS FOR SENATE BILL NO. 141(L&C):                                             
                                                                               
       An  Act relating to  workers' compensation coverage for                 
       certain   high   school   students   in   uncompensated                 
       work-study programs.                                                    
                                                                               
  Senator Kelly said  that SB 141 sponsored  by Representative                 
  Bettye Davis was  designed to  provide workers  compensation                 
  for work study students receiving  vocational training for a                 
  profit employer.   The employers will not  hire the students                 
  because they are  liable and the  students are not  eligible                 
  for workers  compensation.  This  legislation would  provide                 
  workers  compensation taking  the  liability  away from  the                 
                                                                               
                                                                               
  employer.     Since  the   students  do   not  receive   any                 
  compensation  for  the work  study  program, they  would not                 
  receive any compensation if they  were injured.  Only  their                 
  medical expenses would be covered.                                           
                                                                               
  Discussion  followed   between  Senators  Sharp   and  Kelly                 
  regarding  the  coverage  provided  under this  legislation.                 
  Senator Taylor  voiced  his  support  of SB  141,  and  felt                 
  similar legislation should be passed providing  coverage for                 
  prisoners on work programs.                                                  
                                                                               
  SENATOR GEORGE JACKO MOVED for passage of CSSB 141(L&C) from                 
  committee with  individual recommendations.   No  objections                 
  being heard,  CSSB 141(L&C)  was REPORTED  OUT of  committee                 
  with a do pass, with  a zero fiscal note for  the Department                 
  of  Labor,   and  fiscal   notes  for   the  Department   of                 
  Administration  for   $24.0,  and  for  the   Department  of                 
  Education for $24.0.  Co-chair Pearce, Senators Kelly, Jacko                 
  and  Sharp  signed  "do  pass."   Co-chair  Frank,  Senators                 
  Kerttula and Rieger did not sign.                                            
                                                                               
  CS FOR SENATE BILL NO. 153(RES):                                             
                                                                               
       An Act  relating to  the exchange  of certain  fish for                 
       seafood products,  custom processing  of certain  fish,                 
       and use of certain fish for charitable purposes.                        
                                                                               
  Senator Robin  Taylor, prime  sponsor of  SB 153, said  that                 
  this bill would allow sport  caught fish to be brought to  a                 
  seafood processor where  it could be  smoked or canned.   He                 
  pointed out  that a tremendous volume of  seafood leaves the                 
  state every year as whole fish  either frozen or fresh.   If                 
  those fish were processed in Alaska, it could mean more jobs                 
  for Alaskans.   Most  sport fishermen  are on  a tight  time                 
  frame and they cannot wait for their fish to be processed in                 
  Alaska.   This bill  would allow  for an  exchange of  sport                 
  caught fish  for already  processed fish.   A  fee would  be                 
  charged   for  processing.      The   processor  could   use                 
  commercially caught  fish to  provide the  exchange but  the                 
  sport caught fish could  not be sold commercially.   He said                 
  that  this  arrangement  is  already  being done  in  Alaska                 
  illegally.  He also felt that SB 153 would provide a  way to                 
  assess the amount of sport caught  salmon leaving the state,                 
  besides  providing  more  jobs  in  Alaska.   Ketchikan  had                 
  estimated that SB 153  would provide a minimum of  $1M worth                 
  of  additional employment  the first  year.   He  said other                 
  areas of the state would benefit also.  The Alaska Troller's                 
  Association had voiced  its concern  over SB 153.   He  said                 
  that a letter  of intent had  been adopted in the  Resources                 
  Committee   which  spoke   to   concerns  regarding   export                 
  limitations and possession  limits, and  asked the Board  of                 
  Fish  to  consider these  concerns  at their  next regularly                 
  scheduled meeting.                                                           
                                                                               
                                                                               
  Senator Jacko voiced his concern regarding  SB 153.  He felt                 
  that it would make it easier for sport caught  fish to leave                 
  the state.  Discussion was had  by Senators Taylor and Jacko                 
  regarding the  procedure for  processing and  the export  of                 
  sport caught  fish.   Senator Jacko  said  that the  tension                 
  between sport and  commercial fishermen was on  the increase                 
  and felt that SB 153 would aggravate it  even more.  Senator                 
  Taylor  argued  that  this   legislation  would  allow   the                 
  Department of Fish and  Game to keep track of  the amount of                 
  sport caught fish  leaving the  state, and through  analysis                 
  decide  whether  more limitations  on  sport fish  should be                 
  established.                                                                 
                                                                               
  Senator  Kelly  MOVED  for  passage  of CSSB  153(RES)  from                 
  committee  with individual  recommendations.   Senator Jacko                 
  OBJECTED.   Co-chair  Pearce announced  that  CSSB  153(RES)                 
  would be held in committee until April 12, 1993.                             
                                                                               
  At the end  of the  meeting, Senator Kelly  again MOVED  for                 
  passage  of  CSSB 153(RES)  from  committee with  individual                 
  recommendations.  No  objections being heard, CSSB  153(RES)                 
  was   REPORTED    OUT   of    committee   with    individual                 
  recommendations, with a zero fiscal  note for the Department                 
  of  Fish  &  Game,  a  fiscal  note for  the  Department  of                 
  Environmental Conservation for $5.0, and  a letter of intent                 
  from  the Resources  Committee.   Co-chair Pearce,  Senators                 
  Kelly, and Sharp signed "do pass."  Senator Jacko signed "no                 
  recommendation."    Co-chair  Frank,  Senators Kerttula  and                 
  Rieger did not sign.                                                         
                                                                               
                                                                               
  CS FOR SENATE BILL NO. 76(JUD):                                              
                                                                               
       An Act  requiring  regulations  relating  to  pull-tabs                 
       adopted  by  the  Department of  Commerce  and Economic                 
       Development  to be consistent  with the  North American                 
       Gaming Regulators Association  standards on  pull-tabs;                 
       allowing permittees  to contract with  vendors to  sell                 
       pull-tabs on  behalf of the permittee;  restricting the                 
       purchase of pull-tabs by certain persons; requiring the                 
       sale of pull-tabs by vendors to be solely by a pull-tab                 
       ticket  dispensing  machine; requiring  receipts before                 
       certain prizes  may be  paid; prohibiting  distributors                 
       from  supplying  pull-tabs   to  vendors;  relating  to                 
       registration  of  vendors; requiring  the  licensing of                 
       out-of-state   manufacturers;   allowing    public   or                 
       nonprofit  broadcasting stations  to sell  pull-tabs at                 
       more than one location; preventing persons with certain                 
       convictions from  being involved  in charitable  gaming                 
       activities  as a  permittee,  licensee, vendor,  person                 
       responsible for an activity,  fund raiser or consultant                 
       of  a  licensee,   or  employee  in  a   managerial  or                 
       supervisory  capacity  and  providing   exceptions  for                 
                                                                               
                                                                               
       certain persons whose convictions are at least 10 years                 
       old; relating to multiple-beneficiary charitable gaming                 
       permits   and  door   prizes  for   charitable  gaming;                 
       requiring   Department   of   Commerce   and   Economic                 
       Development  approval  of contracts  between charitable                 
       gaming  permittees  and  operators  before  gaming  may                 
       occur; limiting the amount of  authorized expenses to a                 
       percentage of  adjusted gross  income for a  charitable                 
       gaming activity; relating to the reporting  and payment                 
       of  a  percentage  of  the  adjusted  gross  income  by                 
       operators  to  permittees;   requiring  Department   of                 
       Commerce and Economic Development approval of contracts                 
       between   permittees   and   operators;  allowing   the                 
       commissioner of  commerce and  economic development  to                 
       issue  orders prohibiting  violations  of state  gaming                 
       laws; relating to the authority  of the commissioner of                 
       commerce and economic development  to suspend or revoke                 
       a  permit, license,  or  registration; relating  to the                 
       uses to which  charitable gaming  proceeds may be  put;                 
       relating   to   `political    uses'   and    `political                 
       organizations'  as  those   terms  are   used  in   the                 
       charitable  gaming  statutes;  and   providing  for  an                 
       effective date.                                                         
                                                                               
  Co-chair Pearce announced  that CSSB 76(FIN) work  draft "M"                 
  was before the committee.  Senator Jacko MOVED  for adoption                 
  of the "M" version of CSSB  76(FIN).  Hearing no objections,                 
  IT WAS SO ORDERED.                                                           
                                                                               
  Co-chair Pearce, prime sponsor of SB  76, spoke to the bill.                 
  She said the original bill excluded some felons from  access                 
  to gaming in  Alaska in  terms of acting  as supervisory  or                 
  management personnel.  Secondly,  it prevented proceeds from                 
  gaming  to  be used  for  direct contributions  to political                 
  candidates.  She said the Department of Commerce  & Economic                 
  Development had requested some additions to the legislation.                 
  She explained that the finance version would still include a                 
  prohibition  against using  net proceeds  to pay  registered                 
  lobbyists.  It also added third party  vendor language which                 
  allows    charitable    organizations    direct   profitable                 
  alternatives by placing their permits with profit operators.                 
  Permittees who operate their own  permits often double their                 
  net proceeds.  It  allows these permittees to  contract with                 
  vendors to sell  pull tabs for them.  It  also adds multiple                 
  beneficiary permit  language which allows the  department to                 
  issue permits authorizing  two to six permittees  to jointly                 
  operate under  one permit.   This enables the  permittees to                 
  band together and allows  them to hire a management  team to                 
  run  their  games that  is  answerable  only to  them.   The                 
  permittees would have  the direct  hire and fire  authority.                 
  The Department of Commerce & Economic Development also asked                 
  to  approve  contracts  between  operators  and  permittees.                 
  Language has  been included  that allows  the department  to                 
  revoke a permit  license or  vendor registration upon  proof                 
                                                                               
                                                                               
  that insider information was given or  acted upon.  She said                 
  that  language  has  also  been   included  that  gives  the                 
  department  discretion  over  mandating the  use  of  ticket                 
  dispensing machines  for pull tabs.  There  is a requirement                 
  that the department would license out of state manufacturers                 
  of pull  tabs.   She also  stated that  Alaska Public  Radio                 
  Network  had  asked  for  a  statewide on-line  game.    The                 
  language in the bill  clarifies the type of game  APRN could                 
  run.    The  proceeds from  that  game  would  then fund  an                 
  endowment that would eliminate the need for APRN to continue                 
  receiving general funds from the state.                                      
                                                                               
  Co-chair Pearce said that a teleconference had been held  on                 
  SB 76 and two main concerns had been raised and addressed in                 
  this  legislation.     First,   because  of  problems   with                 
  dispensing  machines,  their  use  has   been  left  to  the                 
  discretion of  the department.   Secondly,  language in  the                 
  bill has been changed to say that direct payment from gaming                 
  cannot  be  made to  a  registered lobbyist  or  a political                 
  candidate.                                                                   
                                                                               
  Senator  Kelly voiced  his  opinion  that  SB 76  allowed  a                 
  statewide  lottery  for  public radio.    JOHN  HANSEN, JR.,                 
  Gaming   Manager,   Department   of  Commerce   &   Economic                 
  Development, said that this legislation  would allow APRN to                 
  sell a larger series pull tab game in more than one location                 
  on  a  given  day.   It  would  also provide  them  with the                 
  opportunity to have that game extended to include a drawing.                 
  The provisions  of the  drawing are  currently in  the state                 
  regulations.                                                                 
                                                                               
  Senator Kelly asked if this was  not the same as authorizing                 
  a  statewide  lottery.   Mr.  Hansen  said that  there  were                 
  significant  differences  between  this  legislation  and  a                 
  statewide  lottery,  but  confirmed that  there  had  been a                 
  similar game  without the  drawing that had  been shut  down                 
  some years back.                                                             
                                                                               
  PAUL FUHS, Commissioner, Department of Community &  Economic                 
  Development, said he wanted it to be clear that the Governor                 
  was not  in support of the section  of the bill that applied                 
  to the APRN gaming.   Co-chair Pearce said that  section had                 
  been  added  in the  Judiciary  Committee by  Senator Jacko.                 
  Senator Kelly asked  where the  provision was that  provided                 
  for an  endowment  with  the  proceeds  of  the  APRN  game.                 
  Senator Kelly voiced his concern that APRN would be the only                 
  organization that could  profit from such a  statewide game.                 
  Co-chair Pearce asked if Senator Kelly  would be in favor of                 
  APRN  paying a  portion of their  proceeds into  the general                 
  fund.  Discussion was had by  Senators Kelly, Pearce and Mr.                 
  Fuhs regarding the APRN game.                                                
                                                                               
  Commissioner Fuhs  also pointed  out that  CSSB 76(FIN)  was                 
  different than the Judiciary CS in  that it removes as third                 
                                                                               
                                                                               
  party vendor outlets, retail and  eating establishments.  He                 
  said that  the department  was strongly  in support  of that                 
  action because gaming is an adult activity.   Discussion was                 
  had by  Senator Kelly,  Mr.  Hansen and  Mr. Fuhs  regarding                 
  vendors, operators, and the percentage of profit outlined in                 
  the bill.                                                                    
                                                                               
  End SFC-93 #52, Side 2                                                       
  Begin SFC-93 #56, Side 1                                                     
                                                                               
  Senator Sharp asked for clarification regarding the adjusted                 
  gross income in regard  to gaming.  Mr. Fuhs  explained that                 
  the adjusted gross  income is the  total amount of  proceeds                 
  minus prizes and taxes.  After that, the overhead of running                 
  the  operation   is  subtracted,   and  according  to   this                 
  legislation, only 70  percent of that  can be subtracted  as                 
  overhead.   Mr. Hansen said  that there  are two  acceptable                 
  accounting methods  in  the statutes.    One method  is  the                 
  actual cash  method where  every night  sales are  reported.                 
  The other method is the ideal method, where a number of pull                 
  tabs are  considered  for sale  and the  accounting is  done                 
  around that  number.  The only difference  between the ideal                 
  net and the  adjusted gross are  the taxes  owed -- a  three                 
  percent pull tab tax and any federal income tax.                             
                                                                               
  Senator Kelly  MOVED  amendment  #1  that would  add  a  new                 
  section to read "Section  1. SHORT TITLE.   This act may  be                 
  known as  the Gaming Reform  Act 1993"  (copy on file).   No                 
  objections being raised, it was ADOPTED.                                     
                                                                               
  In answer to Senator Sharp, Mr. Hansen said that the percent                 
  required by  operators to  pay permittees  each quarter  was                 
  reduced from  15 to 10 percent  for non-pull tabs.   He said                 
  that about 80  percent of  the gaming activity  is pull  tab                 
  activity.  Of that remaining 20  percent about 17 percent is                 
  bingo.  In  the past, many  operations have used other  non-                 
  pull   tab  expenses  to  reduce   pull  tab  income.    The                 
  percentages in  this version of legislation  are significant                 
  because they no longer allow the losses  of other activities                 
  to offset the pull tab activity.   Mr. Fuhs said that in the                 
  some village operations 15 percent is too high.  If bingo is                 
  even one percent it helps a lot on the pull tab because they                 
  can't  write  the  losses  off.    He felt  10  percent  was                 
  reasonable.                                                                  
                                                                               
  Senator  Jacko  MOVED  for  passage  of  CSSB  76(FIN)  from                 
  committee with  individual recommendations.   Senator  Kelly                 
  OBJECTED.  Co-chair Pearce announced that CSSB 76(FIN) would                 
  be HELD in committee until April 12, 1993.                                   
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 12:12 a.m.                        
                                                                               
                                                                               

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