Legislature(1993 - 1994)

04/26/1994 05:55 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                            March 3, 1994                                      
                            9:20 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #31, Side 1 (000-end)                                                
  SFC-94, #31, Side 2 (end-750)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Drue  Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 9:20 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Pearce and Frank,  Senators Kelly,                 
  Kerttula, Rieger and  Sharp were present.  Senator Jacko did                 
  not attend the meeting.                                                      
                                                                               
  ALSO ATTENDING:   Duncan  Fowler, Ombudsman,  Office of  the                 
  Ombudsman; Bob Poe, Director, Information and Administrative                 
  Services,  Department  of  Environmental Conservation;  C.E.                 
  Swackhammer,  Deputy  Commissioner,  Department   of  Public                 
  Safety;   Kenneth   Bischoff,  Division   of  Administrative                 
  Services,  Department  of  Public Safety;  Lauren  Campbell,                 
  Director, Alaska Highway Safety  Planning Agency, Department                 
  of Public  Safety; Dean  J. Guaneli,  Chief, Legal  Services                 
  Section,  Criminal Division, Department  of Law; Chip Thoma,                 
  self; Virginia Stonkus, fiscal  analyst, Legislative Finance                 
  Division; and aides  to committee members and  other members                 
  of the legislature.                                                          
                                                                               
  VIA TELECONFERENCE:   Walt Furnace, General Manager,  Alaska                 
  Support Industry  Alliance, Anchorage, testified  in support                 
  of  SB  215.   Wayne  Coleman, RCAC,  Prince  William Sound,                 
  Kodiak, was on-line but due to lack of time did not testify.                 
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  Cambridge Energy Research Associates, Inc. Contract:                         
                                                                               
            Senator Kerttula  spoke in support  of contracting                 
            Cambridge  Energy  Research  Associates,  Inc.  to                 
            provide   a  forecast   of   oil  prices   to  the                 
            Legislature.      Senator   Kerttula   MOVED   for                 
            acceptance of the  contract by the committee.   No                 
            objections  being  heard, IT  WAS  SO  ORDERED and                 
            signed by all members present.                                     
                                                                               
  SB 276:   An Act  relating to criminal  justice information;                 
            providing  procedural  requirements  for obtaining                 
                                                                               
                                                                               
            certain   criminal   justice    information;   and                 
            providing for an effective date.                                   
                                                                               
            The  committee  ADOPTED CSSB  276(FIN)  work draft                 
            dated February 16, 1994 which incorporated  Senate                 
            Judiciary  Committee  amendments  of February  15,                 
            1994.    Dean J.  Guaneli,  Chief,  Legal Services                 
            Section,  Criminal  Division,  Department of  Law,                 
            testified  in  support  of  SB  276,  and  offered                 
            amendment 1 which  replaced wording for  mandatory                 
            fingerprinting.  Discussion  followed between  Co-                 
            chairs  Pearce,  Frank, Senators  Kerttula, Kelly,                 
            Rieger, and Sharp regarding various aspects of the                 
            bill. Duncan  Fowler,  Ombudsman,  Office  of  the                 
            Ombudsman, spoke in support of  SB 276.  Amendment                 
            1 was  ADOPTED.   Senators  Rieger,  Kerttula  and                 
            Kelly  agreed to  form a  subcommittee to  propose                 
            amendments  on issues  discussed.   CSSB  276(FIN)                 
            work draft as amended was  HELD in committee until                 
            March  12, 1994 or until the subcommittee proposes                 
            a new work draft.                                                  
                                                                               
  SB 278:   An  Act  relating  to  sobriety  checkpoints;  and                 
            providing for an effective date.                                   
                                                                               
            C.E. Swackhammer, Deputy  Commissioner, Department                 
            of Public Safety  testified in support of  SB 278.                 
            Discussion  followed  between  Senators  Kerttula,                 
            Sharp, Rieger, Kelly, and Co-chair Frank regarding                 
            fiscal notes, funding, and other related concerns.                 
            Kenneth  Bischoff,   Division  of   Administrative                 
            Services, Department of  Public Safety, and Lauren                 
            Campbell, Director, Alaska Highway Safety Planning                 
            Agency,  Department  of  Public  Safety,  appeared                 
            briefly before  committee to answer questions.  SB
            278 was HELD in committee until March 12, 1994.                    
                                                                               
  CSSB 215: An Act relating to oil and hazardous substances;                   
  (RES)     redesignating  the  oil  and  hazardous  substance                 
            release response fund and its  uses; repealing the                 
            authority in law by  which marine highway  vessels                 
            may be designed and constructed to aid in  oil and                 
            hazardous substance spill  cleanup in state marine                 
            water  using  money  in  the  oil  and   hazardous                 
            substance release response fund and the  authority                 
            of the Department of Environmental Conservation to                 
            levy  and  collect  fees  for  review  of  certain                 
            submissions related to oil;  altering requirements                 
            applicable   to  liens   for  recovery   of  state                 
            expenditures   related   to   oil   or   hazardous                 
            substances; terminating the  nickel-per-barrel oil                 
            conservation surcharge; levying and collecting two                 
                                                                               
                                                                               
            new  oil   surcharges;  and   providing  for   the                 
            suspension and  reimposition  of one  of  the  new                 
            surcharges; and providing for an effective date.                   
                                                                               
            A teleconference was held  and testimony was heard                 
            by Walt  Furnace, General Manager,  Alaska Support                 
            Industry  Alliance,  Anchorage, in  support  of SB
            215.  Wayne Coleman,  RCAC, Prince William  Sound,                 
            Kodiak,  was on-line but was not heard due to lack                 
            of time.  SB 215 was HELD in committee and another                 
            teleconference will be held if requested.                          
                                                                               
  Cambridge Energy Research Associates, Inc. Contract:                         
                                                                               
  SENATOR  KERTTULA  MOVED   that  Cambridge  Energy  Research                 
  Associates, Inc. contract be  adopted.  He went on  to speak                 
  in  support of  their  work, felt  they provided  a separate                 
  point of view and were very accurate in their forecasting of                 
  oil prices.   No  objections being  heard, the contract  was                 
  ADOPTED and signed  by Co-chairs Pearce and  Frank, Senators                 
  Kerttula, Rieger, Kelly, and Sharp.                                          
                                                                               
  SENATE BILL NO. 276                                                          
                                                                               
       An  Act  relating  to  criminal  justice   information;                 
       providing procedural requirements for obtaining certain                 
       criminal  justice  information;  and  providing for  an                 
       effective date.                                                         
                                                                               
  CO-CHAIR  PEARCE  invited  Dean  J.  Guaneli,  Chief,  Legal                 
  Services Section,  Criminal Division, Department  of Law, to                 
  speak to SB 276.                                                             
                                                                               
  DEAN GUANELI  said that for  a number of  years it  had been                 
  recognized  that  the  state statutes  relating  to criminal                 
  justice  information  systems,   providing  safeguards   and                 
  oversight over those systems, were in need of amendment.  He                 
  noted  that   the  legislative  auditor,   the  Division  of                 
  Legislative  Legal  Services,   and  consultants  with   the                 
  Department of Public Safety had recommended changes.  SB 276                 
  was  a  product  of  several  years  of  effort  to  provide                 
  oversight over  criminal justice information systems, to set                 
  guidelines of how the information  in those computer systems                 
  would  be disseminated,  and to  make  other changes  to the                 
  system   that   were   needed   to   provide   adequate  and                 
  comprehensive records.   He informed the committee  that, at                 
  the present time,  no state  statute required an  individual                 
  under arrest  to be  fingerprinted.   In a  large number  of                 
  instances, fingerprints  were not taken.   He said  the only                 
  way  to  have an  accurate  information system,  which keeps                 
  track of criminal history records, was to link those records                 
  to fingerprints.   This bill  mandated that fingerprints  be                 
  taken and if  for some  reason a person  bypassed the  first                 
                                                                               
                                                                               
  process, it mandated they be taken at  the next stage of the                 
  process.                                                                     
                                                                               
  Mr. Guaneli felt that the need for this legislation was also                 
  made clear by  federal legislation.   The Brady Bill was  on                 
  example.  He felt strongly  that if criminal history records                 
  were going to be  given out - they should be  accurate.  The                 
  FBI had  criminal standards for criminal justice information                 
  systems and those standards had been followed in SB 276.  He                 
  pointed out  that  there  had been  a  separate  bill  going                 
  through   Senate   Judiciary   Committee    that   addressed                 
  fingerprinting  requirements  only,   and  more  simply  and                 
  directly than  SB 276.   From that  bill, he  had drafted  a                 
  finger-printing provision preferable  to the  section in  SB
  276 in  the form  of  amendment 1,  and  offered it  to  the                 
  committee for consideration.                                                 
                                                                               
  Co-chair  Pearce reminded the committee that when SB 276 had                 
  been  received  in  the Senate  Finance  Committee  that the                 
  Senate  Judiciary  Committee  had  passed  SB  276  with  an                 
  amendment dated February  15, 1994,  without drafting a  CS.                 
  She directed the  members' attention  to CSSB 276(FIN)  work                 
  draft dated  February 16,  1994 that  did incorporate  those                 
  Senate  Judiciary  amendments.   Co-chair  Frank  MOVED  for                 
  adoption of CSSB 276(FIN) work draft dated February 16, 1994                 
  for  discussion purposes.  No objection  being heard, it was                 
  ADOPTED.                                                                     
                                                                               
  Discussion was had by Senators  Kerttula and Kelly regarding                 
  the fiscal notes attached to the  bill.  Senator Kelly asked                 
  if the fiscal note for the  Department of Corrections in the                 
  amount  of  $181,874  would  include  staffing  requirements                 
  required SB 276.  Since there  was not a representative from                 
  the Department of Corrections, Co-chair Pearce requested the                 
  department  to  provide that  information to  the committee.                 
  Senator Kelly  asked if  the amendment  now incorporated  in                 
  CSSB  276(FIN)  work draft  would  effect the  Department of                 
  Corrections fiscal note.                                                     
                                                                               
  Senator Kelly  asked what  fiscal effect  amendment 1  would                 
  have on SB  276.  Mr.  Guaneli said that  the Department  of                 
  Corrections  already  required  that everyone  brought  into                 
  their  facilities be  fingerprinted.    In  some  instances,                 
  however, individuals were being missed, and this legislation                 
  would  tighten up  procedures.   He  said the  Department of                 
  Corrections did  not anticipate any  significant increase in                 
  the  number  of fingerprints  taken,  and therefore  did not                 
  believe there would be  a fiscal impact.  He  believed there                 
  might  be  a slight  impact  on local  police  agencies, but                 
  admitted it was hard to assess.  The bill had the backing of                 
  the Alaska Association of the  Chiefs of Police because they                 
  realized  fingerprinting  requirements,  although   a  small                 
  burden,  was  necessary  in  order  to provide  an  accurate                 
  criminal justice information system.                                         
                                                                               
                                                                               
  Mr.  Guaneli felt  that SB  276 established  a framework  to                 
  improve  the  information   systems  that  currently  exist.                 
  Efforts  were underway  to  link existing  systems scattered                 
  among the  departments and make  them more efficient.   This                 
  bill  would   also   establish   a   board   consisting   of                 
  commissioners  from  effected  departments  to oversee  that                 
  effort.                                                                      
                                                                               
  Senator  Kerttula said this system  was going to cost money.                 
  He  objected  to  fiscal notes  that  did  not  lay out  the                 
  complete cost.  Mr. Guaneli said he  would like to point out                 
  that  the  improvements  in  this  bill would  be  supported                 
  partially  by federal  funding.   If this legislation  is in                 
  place,  the  Department of  Safety  could take  advantage of                 
  federal  funding  and  federal  information  systems.    Mr.                 
  Guaneli  did admit  the  state would  have some  expenses in                 
  setting up the new framework.                                                
                                                                               
  In answer to Senator Rieger,  regarding page 4, lines 12-14,                 
  stating that the  commissioner could exempt certain  persons                 
  from the  fingerprinting requirements,  Mr. Guaneli said  it                 
  was  intended   to  prevent   certain  circumstances   where                 
  fingerprints would have  to be taken repetitively.   Senator                 
  Rieger asked if the provision requiring fingerprinting to be                 
  done  within 24  hours  was always  practical, and  could it                 
  cause any kind of  "Miranda rights" allowing a person  to go                 
  free if the fingerprints  were not taken.  Mr.  Guaneli felt                 
  the 24-hour  requirement was  reasonable and  if it  did not                 
  happen, technically an arrest warrant could be issued.  More                 
  practically, when the  person appeared  in court, the  judge                 
  would probably  order fingerprints taken  at that time.   He                 
  did not  believe it  could cause  a person  to be  set free.                 
  However, he believed if a person  was arrested again and had                 
  not been fingerprinted  the first time, their  offense could                 
  be treated as a first rather than a second offense.                          
                                                                               
  In answer to Senator Rieger,  Mr. Guaneli voiced his opinion                 
  that it was reasonable for regulations to be adopted, people                 
  to be trained, and the advisory board to  be formed in order                 
  to make policy decisions by the July 1, 1994 effective date.                 
                                                                               
  DUNCAN FOWLER, Ombudsman, Office of the Ombudsman, testified                 
  in support of SB 276.   He said the Office of the  Ombudsman                 
  had been interested  in this legislation for the  past three                 
  years.    He  felt  it  was  an important  piece  of  policy                 
  legislation  that  insured  the integrity  of  the  criminal                 
  justice system records,  enabled citizens to  correct errors                 
  in  their  criminal records,  and most  importantly, defined                 
  rules for the collection, access and use of criminal justice                 
  information.  It would also set  out penalties for the abuse                 
  of information which  was not addressed  now.  He said  over                 
  the past few years, one to two serious complaints a year had                 
  been  filed   regarding  the  misuse  of   criminal  justice                 
                                                                               
                                                                               
  information.  He  believed some of them were serious enough,                 
  if  this  framework   had  been  in  place,   to  have  been                 
  prosecuted.  He reiterated that he supported SB 276 and felt                 
  it would significantly  assist the state  in tying up  loose                 
  ends in this area.                                                           
                                                                               
  Senator   Kerttula   said   that    California   was   using                 
  fingerprinting  to  detect  welfare fraud.    Senator Rieger                 
  asked  if Senator Kerttula was suggesting an amendment to SB
  276.  Senator Kerttula  agreed that he would not  be opposed                 
  to it.                                                                       
                                                                               
  CHIP  THOMA,  testifying  as  a  private citizen,  spoke  in                 
  support of  SB 276.  He said that in 1972 he worked with the                 
  late Senator Terry Miller on previous legislation SB 378 and                 
  SJR 9 on the  right to privacy.  He said legislative history                 
  and the public's perception of the possible misuse of police                 
  records supported the  reasoning for  this legislation.   He                 
  urged the committee's support of SB 276.                                     
                                                                               
  Co-chair Pearce asked  the committee's will on  amendment 1.                 
  Mr.  Guaneli again  spoke to the  amendment.   Senator Sharp                 
  MOVED for  the conceptual  adoption of  amendment  1 by  Mr.                 
  Guaneli.  No objection having been raised, the amendment was                 
  ADOPTED  for incorporation  within  a new  Finance Committee                 
  Substitute for the bill.                                                     
                                                                               
  In answer to Senator Rieger, regarding page 8, provisions on                 
  how  criminal  justice  information  may  be  released,  Mr.                 
  Guaneli said that there were no specific  provisions, but at                 
  this  time it was done occasionally on a case by case basis.                 
  Mr. Guaneli  said these new  provisions were recommendations                 
  made several years  ago by consultants to  the Department of                 
  Public Safety in  a report that  had found  its way into  SB
  276.  Senator Kerttula voiced his concern over privacy abuse                 
  issues in  those  provisions.   Mr.  Guaneli said  that  the                 
  preface for  the  entire section  declared criminal  justice                 
  information confidential.  That  provision did not currently                 
  exist.   In addition,  the United  States Supreme  Court had                 
  interpreted the law to say  that information within criminal                 
  justice  information  systems   (computerized  data   bases)                 
  involve some  questions of  privacy even  when all  that was                 
  kept are public records  and convictions.  If  anything more                 
  than statistics were given out, such as names and dates, the                 
  law recognized this as confidential information.  He felt it                 
  was a good idea to have protections on this information.  He                 
  spoke  of  an  instance  where  records were  requested  for                 
  members of the  ethic's committee  and the department  asked                 
  the members to  sign a waiver.   This helped the  department                 
  realize from time to time the legislature would request such                 
  information.                                                                 
                                                                               
  In  answer  to  Senator  Rieger,  Mr. Guaneli  said  current                 
  offender  information refers  to someone  who was  currently                 
                                                                               
                                                                               
  charged with an  offense, was moving  their way through  the                 
  criminal  justice  information  system,  or  was  under  the                 
  supervision  of  the  system   (someone  in  prison,  etc.).                 
  Senator Rieger asked if a  request could be made for  a list                 
  of individuals who  had been  convicted of a  felony in  the                 
  last  ten years.   Mr.  Guaneli said  that this  legislation                 
  allowed the Department  of Safety to  charge a fee for  that                 
  service.  He  said that at  the present the courts  were not                 
  linked  by any  computer system.    Those records  were kept                 
  within the Department of Public Safety and were public.                      
                                                                               
  Senator Rieger said that a blanket release  of past criminal                 
  offenses   or   past   convictions   which   would   include                 
  misdemeanors  made  him very  uncomfortable.   Senator Kelly                 
  voiced similar concerns.                                                     
                                                                               
  Senators  Sharp  and Kelly  asked  for clarification  on the                 
  fiscal  note for  the  Department of  Corrections  regarding                 
  overtime for training and the length of the training.                        
                                                                               
  Co-chair Pearce asked Senator Rieger to chair a subcommittee                 
  which included Senators  Kelly and Kerttula.   She announced                 
  that SB 276 would be HELD in committee until March 12, 1994,                 
  or until the subcommittee proposed a new work draft.                         
                                                                               
  SENATE BILL NO. 278                                                          
                                                                               
       An Act  relating to sobriety checkpoints; and providing                 
       for an effective date.                                                  
                                                                               
  Co-chair  Pearce  announced  that  SB  278  was  before  the                 
  committee.      She   invited   C.E.   Swackhammer,   Deputy                 
  Commissioner, Dept. of Public Safety,  to join the committee                 
  at the table and speak to SB 278.                                            
                                                                               
  MR.  SWACKHAMMER said that one  mission of the Department of                 
  Public Safety  was to  protect the  traveling public  on the                 
  highways.   In  1992, there  were  89 traffic  crashes  that                 
  resulted  in  108  deaths, and  58.3%  were  alcohol related                 
  accidents.    He  believed  advertising  in  the  media  the                 
  initiation of sobriety checkpoints would provide a deterrent                 
  for impaired drivers, and,  secondly, would remove  impaired                 
  drivers from the  highways.  The way the bill  read was that                 
  law enforcement  agencies must  submit a plan  to the  court                 
  specifying   time,   location,   implementation,   sequence,                 
  justification of  the location,  time, date,  and within  10                 
  days report back to the court with the information obtained.                 
                                                                               
  End SFC-94 #31, Side 1                                                       
  Begin SFC-94 #31, Side 2                                                     
                                                                               
  Senator Kerttula  pointed out that  the state  police had  a                 
  limited budget and already were putting a lot of time on the                 
                                                                               
                                                                               
  highway.  He  proposed the  idea that state  police did  not                 
  spend enough time off the highways and in the community.  He                 
  suggested  hiring security  guards  to  staff such  sobriety                 
  checkpoints and have one trooper supervise the process.  Mr.                 
  Swackhammer  said  that  federal  funds  would  be  used  to                 
  implement the checkpoints.  The estimated cost for one four-                 
  hour  checkpoint  would be  $2,500  as detailed  in  the DOS                 
  fiscal note.   He admitted  troopers would be  paid overtime                 
  for these  checkpoints.   Senator  Kerttula  reiterated  his                 
  concern regarding  state trooper overtime and  added expense                 
  to the state.                                                                
                                                                               
  Senator Sharp understood  that because  the helmet bill  was                 
  not going to pass, there would be federal funds available to                 
  the Department  of Safety in the amount of $2.5-5M.  He said                 
  the checkpoints would qualify for these  federal funds up to                 
  three years.  He still felt it was a lot of money focused on                 
  less  than  10 percent  of the  causes  of accidents  in the                 
  state.  He listed  other statistics that said, of  the total                 
  16,000 accidents, only 1,400 were  alcohol related.  He felt                 
  that state troopers would be more effective on the road.  He                 
  did not deny  that it was a good place to focus but felt the                 
  troopers better served the state on the highway.                             
                                                                               
  Mr. Swackhammer said that in citing accidents, 60 percent of                 
  the  people  killed  were   in  alcohol  related  accidents.                 
  Senator Sharp disputed his statistics but agreed that it was                 
  a disaster.                                                                  
                                                                               
  Senator Kerttula again  asked why security guards  could not                 
  be used in  the checkpoints.   He asked  Mr. Swackhammer  to                 
  propose that to  the administration.   Mr. Swackhammer  said                 
  that  police  officer training  took  about  16 weeks.    He                 
  maintained that processing a DWI was quite complicated, took                 
  about 3 hours, and he did  not believe it was a place  where                 
  security guards could be used.                                               
                                                                               
  Senator  Rieger  commented  that the  bill  seemed  to allow                 
  municipal  police  and   VPSOs  to   be  used  in   sobriety                 
  checkpoints.  He asked if an arrest could  be made for other                 
  reasons than the purpose of the checkpoint.  Mr. Swackhammer                 
  said that there  was no  limitation once the  stop had  been                 
  made  but  as a  practical matter,  the  goal was  to detect                 
  impaired drivers and  not impede  the traveling public  more                 
  than needed.  Mr. Swackhammer thought the troopers would not                 
  write  someone up for an  equipment violation because of the                 
  time it would take.  Senator  Rieger agreed that driving was                 
  a privilege  and not a right but he felt that the checkpoint                 
  was an  intrusion in people's lives.   Mr. Swackhammer said,                 
  as a practical matter, that would not be a problem.                          
                                                                               
  Co-chair  Frank  shared Senator  Rieger's  concern regarding                 
  privacy.  He said that the checkpoint was mostly a deterrent                 
  effect.  He felt though, that  to be an effective deterrent,                 
                                                                               
                                                                               
  there must be a recurrent occurrence of the checkpoints.  He                 
  also  felt  the fiscal  note  should reflect  that recurrent                 
  occurrence and it would make it a very large expense.                        
                                                                               
  Mr. Swackhammer quoted someone as  saying that more troopers                 
  on  the  road  would  be  a  deterrent.   He  said  sobriety                 
  checkpoints were just  a small part  of that deterrent.   If                 
  the  department were  to  stage a  checkpoint at  $2,500 and                 
  found  no impaired drivers,  that would be  a success simply                 
  because of the  advertisement acting as a deterrent to drunk                 
  driving.    He stated  there  was  not enough  money  to put                 
  troopers in  villages,  or to  have the  presence needed  to                 
  deter but that should not prevent the department from trying                 
  to reduce alcohol related fatalities.  He said that was what                 
  this  legislation was  about.   Research  would  be done  to                 
  choose the best time for the best effect possible.                           
                                                                               
  Co-chair  Frank  asked  if  the  department  had  considered                 
  confiscating the car  when an individual has  been convicted                 
  of a DWI.   He said that  airplanes and guns could  be taken                 
  away.  He felt chronic drinkers  seem to be the problem  and                 
  deterrents such as checkpoints would not seem to effect  the                 
  chronic  drunk  driver.   Mr.  Swackhammer  said  that those                 
  individuals somehow  manage to  find automobiles.   Co-chair                 
  Frank said  that  it would  take  a wide  net  to deter  the                 
  chronic drunk driver.                                                        
                                                                               
  Senator Kelly asked for  an explanation of page 3,  line 18-                 
  19, "sobriety  checkpoint shall substantially conform."  Mr.                 
  Swackhammer  said  that  guidelines  would  be set  but  the                 
  choices of whether to  stop every third car or  every second                 
  could be decided by the flow of traffic, etc.  Senator Kelly                 
  said he had concerns regarding the word "substantially."                     
                                                                               
  In answer to Senator Kelly, Mr.  Swackhammer said on page 4,                 
  line 11, the words "production of documents" meant asking an                 
  individual  for  their  driver's  license and  registration.                 
  Senator Kerttula said that maybe it should say exactly that.                 
                                                                               
  Senator Kerttula  asked for  a breakdown  of the  checkpoint                 
  costs.   Mr. Swackhammer  stated that  it  would consist  of                 
  paying four troopers four hours of overtime ($500 each) plus                 
  equipment  rental.    Senator   Kerttula  observed  that   a                 
  substantial amount of money was  obtained from federal funds                 
  for  safety.  In answer to Senator Kerttula, Mr. Swackhammer                 
  did  not  believe that  federal  money  could  be  used  for                 
  enhancing the training of VPSOs or increasing salaries.                      
                                                                               
  LAUREN CAMPBELL,  Director, Alaska  Highway Safety  Planning                 
  Agency, Department of Public  Safety, answered that  federal                 
  funds cannot be used for on-going  programs.  It also cannot                 
  be  used  for salaries  or  to  increase salaries.    It was                 
  designated  for  special  enforcement  projects  that  would                 
  reduce serious injury or fatal  accidents.  Senator Kerttula                 
                                                                               
                                                                               
  reiterated his proposal  to hire security guards  instead of                 
  using state troopers on an overtime basis.                                   
                                                                               
  Senator Sharp asked Mr. Swackhammer to provide the committee                 
  with  1993  statistics  including  alcohol  related  traffic                 
  deaths on the highways.                                                      
                                                                               
  Co-chair  Frank asked  how  a fiscal  note for  $2,500 would                 
  relate to SB 278, and did they intend to have more  than one                 
  checkpoint as the  fiscal note  presented.  Mr.  Swackhammer                 
  said that the  fiscal note represented one  checkpoint.  The                 
  Department  of  Safety  would  apply   for  grant  money  to                 
  implement the sobriety checkpoint program.   Grant money and                 
  resources  dedicated  to that  program  would  determine the                 
  number of checkpoints.                                                       
                                                                               
  Co-chair Frank  asked if the  federal money  was likely  and                 
  what other funds might  be available for this program.   Mr.                 
  Campbell said that  other moneys  were available beside  the                 
  helmet money.  Enacting the sobriety checkpoints would allow                 
  a 5 percent increase, or about a $10,000 increase in federal                 
  funds.    He agreed  that  a  grant could  be  written using                 
  personnel other than troopers.  In answer to Co-chair Frank,                 
  Mr. Swackhammer said that using other than trooper personnel                 
  in the checkpoints  had more  to do  with management  policy                 
  than employee  contracts.   Mr. Swackhammer  said that  most                 
  intoxicated  individuals  were not  the  most congenial  and                 
  cooperative  people  to  deal  with  and  specially  trained                 
  individuals were needed in those circumstances.                              
                                                                               
  Co-chair Frank asked for a projection of a one-year  program                 
  rather than a fiscal note for one checkpoint.                                
                                                                               
  Co-chair  Pearce  announced that  SB  278 would  be  HELD in                 
  committee until March 12, 1994.  She asked committee members                 
  to present amendments to SB 278 to her office no later  than                 
  March 11, 1994.                                                              
                                                                               
  CS FOR SENATE BILL NO. 215(RES)                                              
                                                                               
       An  Act  relating  to  oil  and  hazardous  substances;                 
       redesignating the oil  and hazardous substance  release                 
       response fund and its uses;  repealing the authority in                 
       law by which marine highway vessels may be designed and                 
       constructed to aid in oil and hazardous substance spill                 
       cleanup in  state marine water  using money in  the oil                 
       and hazardous substance  release response fund  and the                 
       authority   of   the   Department    of   Environmental                 
       Conservation to  levy and  collect fees  for review  of                 
       certain   submissions   related   to    oil;   altering                 
       requirements applicable to liens  for recovery of state                 
       expenditures related  to oil  or hazardous  substances;                 
       terminating  the  nickel-per-barrel   oil  conservation                 
                                                                               
                                                                               
       surcharge;   levying   and  collecting   two   new  oil                 
       surcharges;  and  providing  for  the  suspension   and                 
       reimposition  of   one  of  the  new   surcharges;  and                 
       providing for an effective date.                                        
                                                                               
  Co-chair Pearce announced  SB 215 was before  the committee.                 
  She   said   that  Bob   Poe,   Director,   Information  and                 
  Administrative   Services,   Department   of   Environmental                 
  Conservation, and two  individuals, via teleconference, were                 
  waiting to testify.                                                          
                                                                               
  WALT  FURNACE,  General  Manager,  Alaska  Support  Industry                 
  Alliance (ASIA),  Anchorage, said  he  hesitated to  testify                 
  again but wanted to take a little different stand.  He  said                 
  ASIA was in strong support of SB 215.  He wanted  to address                 
  some concerns others  had voiced regarding  this bill.   The                 
  first  was  that the  split-nickel  would not  be sufficient                 
  moneys  to  fund  the oil  and  hazardous  substance release                 
  response fund.  Testimony  supported, under the split-nickel                 
  approach fund, balances  could range from  $16-26M annually.                 
  He  believed  expected  expenditures of  the  fund  had been                 
  stated at $10-13M.   It  would appear there  were more  than                 
  sufficient  funds to  meet the  needs of the  response fund.                 
  The second concern voiced was that  SB 215 represented a tax                 
  break for the industry.  The intent of the 1989 amendment to                 
  Chapter 43 was to levy a 5-cent a barrel surcharge until the                 
  sum  of  $50M   was  accumulated   and  then  suspend   that                 
  collection.  Testimony to date  supported collection of from                 
  $112-150M.  Under  SB 215, it  appeared that, rather than  a                 
  tax break, it would  provide for a proper adjustment  of the                 
  fund  to  include assurances  of  funding the  $50M  oil and                 
  hazardous  substance  release   contingency  and   abatement                 
  mitigation account.   Thirdly, there  had been a  rumor that                 
  the fund was  broke.  He stated  the fund was not  broke and                 
  anticipated  the  generation  of $112-150M.    SB  215 would                 
  provide an opportunity to  fine tune the fund.   Lastly, the                 
  taxing power was vested  in the state, but the  privilege of                 
  taxing  policy must  be exercised  carefully and  equitably.                 
  The general philosophy of taxation should be  to only assess                 
  tax to the extent needed to support services of  government.                 
  We must  acknowledge that  the  petroleum industry  provided                 
  over 80 percent of  state revenue.  In regard  to additional                 
  taxes on this  industry, how much is  too much, and  at what                 
  point  did the taxing policy become  a deterrent to business                 
   ***FIN116PM                                                                 
   0AASFIN    0426941755                                                       
                                                                               
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 26, 1994                                        
                            5:55 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #81, Side 1 (000-end)                                                
  SFC-94, #81, Side 2 (end-000)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Drue  Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 5:55 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to Co-chairs Pearce  and Frank, Senators Rieger,                 
  Kerttula, Kelly, and  Sharp were present.  Senator Jacko did                 
  not attend the meeting.                                                      
                                                                               
  ALSO  ATTENDING:   Cheryl  Sutton,  aide  to  Representative                 
  Moses,   sponsor   of  HJR   34;   Tim  Sullivan,   aide  to                 
  Representative  Eldon   Mulder,  sponsor  of  HB   421;  Don                 
  Stolworthy, Director, Charitable Gaming Division, Department                 
  of  Revenue;  Tom Dow,  Vice  President of  Hotels, Princess                 
  Tours; Clark Gruening, lobbyist, Alaska Visitor Association;                 
  Jetta   Whittaker,   fiscal  analyst,   Legislative  Finance                 
  Division; representatives of the  media, aides to  committee                 
  members and other members of the legislature.                                
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSSB 341(RES): An  Act   relating  to  the   Alaska  Tourism                 
                 Marketing  Council;  and  providing   for  an                 
                 effective date.                                               
                                                                               
                 Discussion was had by Co-chair Frank, Pearce,                 
                 Senators Sharp and Kelly  regarding "pro rata                 
                 share."  Even  though he  had not planned  to                 
                 speak to SB  341, Tom Dow, Vice  President of                 
                 Hotels,  Princess  Tours,  shared information                 
                 with  the  committee  regarding the  vacation                 
                 planner.    Clark Gruening,  lobbyist, Alaska                 
                 Visitor Association, also spoke  to the bill.                 
                 Amendment 1  was ADOPTED.  CSSB  341(FIN) was                 
                 REPORTED  out  of  committee with  individual                 
                 recommendations and  a zero  fiscal note  for                 
                 the   Department   of  Commerce   &  Economic                 
                 Development.                                                  
                                                                               
  CSSB 370(JUD): An Act  providing an exemption  from gambling                 
                                                                               
                                                                               
                 laws for gambling  conducted by cruise  ships                 
                 for their ticketed passengers in the offshore                 
                 water   of  the   state  outside   of  ports;                 
                 requiring certain  disclosures in  connection                 
                 with  promotions on  board  cruise ships  and                 
                 making violation of  that provision an unfair                 
                 trade practice; defining  `cruise ship';  and                 
                 providing  for  exemption  fees  for  certain                 
                 cruise ships before they can conduct gambling                 
                 in the offshore water of the state.                           
                                                                               
                 CSSB  370(FIN) work  draft  "D" was  ADOPTED.                 
                 Amendment  1  was ADOPTED  changing  the word                 
                 "fees" in the title to the word "procedures."                 
                 Amendment  2  was  ADOPTED  providing  for  a                 
                 sunset  for  Sections  1,  2  and  3.    CSSB
                 370(FIN)  as  amended  was  REPORTED  out  of                 
                 committee  with  individual  recommendations,                 
                 and a zero fiscal note  for the Department of                 
                 Revenue showing a revenue of $(295.0).                        
                                                                               
  HB 421:        An  Act  authorizing  grants   for  temporary                 
                 housing  assistance  during  emergencies  and                 
                 disasters.                                                    
                                                                               
                 Tim  Sullivan,  aide to  Representative Eldon                 
                 Mulder,  testified  in  support  of  HB  421.                 
                 Discussion  was  had   by  Co-chairs   Frank,                 
                 Pearce, Senators Rieger  and Kelly  regarding                 
                 assistance  grants  and   temporary  housing.                 
                 Conceptual Amendment  1 and  2 were  ADOPTED.                 
                 HB  421  was  HELD  in  committee  until  new                 
                 language for SCSHB 421(FIN)  was complete and                 
                 could be rescheduled.                                         
                                                                               
  HJR 34:        Requesting the Department of Commerce to give                 
                 a  high  priority  to  fisheries  development                 
                 project   grants   for   the  Alaska   salmon                 
                 industry.                                                     
                                                                               
                 Cheryl  Sutton,  aide to  Representative Carl                 
                 Moses,  sponsor  of  HJR  34,  testified   in                 
                 support of HJR  34.  HJR 34 was  REPORTED out                 
                 of  committee  with a  "do  pass" and  a zero                 
                 fiscal  note for  the  Department  of Fish  &                 
                 Game.                                                         
                                                                               
  HOUSE JOINT RESOLUTION NO. 34:                                               
                                                                               
       Requesting the Department  of Commerce  to give a  high                 
       priority to  fisheries development  project grants  for                 
       the Alaska salmon industry.                                             
                                                                               
                                                                               
  CO-CHAIR PEARCE said  that HJR 34 was  before the committee.                 
  She invited Cheryl Sutton to join the members at the table.                  
                                                                               
  CHERYL SUTTON, fisheries specialist, aide to  Representative                 
  Carl Moses, House Special Committee  on Fisheries, said that                 
  HJR  34  requested  that  the  United States  Department  of                 
  Commerce give  high priority to fisheries development grants                 
  for  the Alaska salmon industry.  Ground fish development in                 
  Alaska had received strong attention  by the U.S. Department                 
  of Commerce.  She  pointed out that the salmon  industry had                 
  undergone  new  stresses  in  its ability  to  compete  in a                 
  changing world  market.   The  Saltonstall-Kennedy Act  made                 
  available to the Secretary  of Commerce up to 30  percent of                 
  the gross  receipts under  the customs  laws from  duties on                 
  fisheries  products.   Each  year the  Secretary must  use a                 
  portion of  those funds to  make grants available  to assist                 
  persons in  carrying out research  and development  projects                 
  which address aspects of U.S. fisheries.  These projects can                 
  include harvesting, processing,  associated infrastructures,                 
  and other projects.   The National Marine  Fisheries Service                 
  issues  the  conditions  under which  applications  would be                 
  accepted and funded.   HJR  34 would ask  Congress to  place                 
  salmon technology  development in  a prominent  position for                 
  project funding  consideration.  This  form of  governmental                 
  assistance would benefit  the industry,  the state, and  the                 
  harvesters and processors in the salmon industry.  She asked                 
  for support for HJR 34.                                                      
                                                                               
  Senator  Rieger MOVED for  passage of HJR  34 from committee                 
  with individual recommendations.   No objection being heard,                 
  HJR 34 was REPORTED OUT of committee with a "do pass," and a                 
  zero fiscal  note for the  Department of  Fish & Game.   Co-                 
  chairs  Pearce and  Frank, Senators Rieger,  Kelly, Kerttula                 
  and Sharp signed "do pass."                                                  
                                                                               
  HOUSE BILL NO. 421:                                                          
                                                                               
       An  Act  authorizing   grants  for  temporary   housing                 
       assistance during emergencies and disasters.                            
                                                                               
  Co-chair  Pearce  announced  that  HB  421  was  before  the                 
  committee.                                                                   
                                                                               
  Tim Sullivan, aide to Representative Eldon Mulder, said this                 
  bill  was  introduced  by  request  of  Alaska  Division  of                 
  Emergency  Services.   Currently people that  were displaced                 
  from  their  homes  during  a state-declared  disaster  have                 
  temporary  housing  arrangements negotiated  individually by                 
  the Department of Military & Veteran Affairs.  This can be a                 
  lengthy and tedious process that takes  time and energy away                 
  from other disaster  assistance.  FEMA had  streamlined this                 
  process during a federal-declared  disaster by making grants                 
                                                                               
                                                                               
  directly to displaced individuals.   These individuals  made                 
  their  own housing arrangements  reducing costs and removing                 
  liability from the government  as a lessor.  This  change in                 
  state statutes would result in a more efficient response  to                 
  temporary housing needs during a state-declared disaster.                    
                                                                               
  Senator Rieger asked  if this  would allow  the Governor  to                 
  have  his  own  capital  budget  for building  or  providing                 
  housing.   Mr. Sullivan  said that during  a state disaster,                 
  individuals  could  find their  own  housing and  they would                 
  receive the grant directly.                                                  
                                                                               
  In answer to Co-chair  Pearce, Mr. Sullivan said he  did not                 
  know if there was a  limit to the amount of the grant.   Co-                 
  chair Frank thought  individuals were eligible for  a $2,500                 
  grant during disasters.                                                      
                                                                               
  Senator  Kelly  voiced  his  concern  that state  grants  be                 
  subordinate to  FEMA and other private  insurance assistance                 
  available.  He  MOVED conceptual amendment 1,  changing page                 
  1,  line  11,  to read  "make  temporary  housing assistance                 
  grants,   subordinate   to   FEMA   and  private   insurance                 
  assistance."    Senator  Kerttula  asked  if the  individual                 
  amount  should  be  capped.   Co-chair  Pearce  reworded the                 
  amendment  to  read  "make  grants  for  temporary   housing                 
  assistance  subordinate   to  FEMA  and   private  insurance                 
  assistance,  to eligible  disaster victims who  have located                 
  temporary housing."  Co-chair Frank referred to AS 26.23.090                 
  that  indicated,    the  "Governor  was authorized  to  make                 
  financial grants to an individual or family to meet disaster                 
  related necessary  expenses or serious needs  of individuals                 
  or families adversely  affected by the disaster  that cannot                 
  otherwise adequately be met from other means of assistance."                 
  He  then  referred  to AS  26.23.100  relating  to temporary                 
  housing which said  the department  would make  arrangements                 
  for temporary  housing.   Mr. Sullivan  reiterated that  the                 
  purpose of the legislation was to give individuals grants so                 
  they could make their own temporary housing arrangements.                    
                                                                               
  Senator Kelly MOVED  conceptual amendment  1.  No  objection                 
  being heard, amendment 1 was ADOPTED.                                        
                                                                               
  Co-chair Frank MOVED conceptual amendment 2 that said grants                 
  to any individual or  family made under AS 26.23.100  and AS                 
  26.23.090  should  not  exceed $5000.    No  objection being                 
  heard, it was ADOPTED.                                                       
                                                                               
  Co-chair Pearce  announced that  a SCSHB  421(FIN) would  be                 
  HELD until another work draft could be written.                              
                                                                               
  CS FOR SENATE BILL NO. 341(RES):                                             
                                                                               
       An  Act  relating  to   the  Alaska  Tourism  Marketing                 
                                                                               
                                                                               
       Council; and providing for an effective date.                           
                                                                               
  Co-chair Pearce announced that CSSB  241(RES) was before the                 
  committee.     She  said   the  Resources   CS  raised   the                 
  contribution by Alaska Tourism Marketing Council (ATMC) from                 
  15 to 25 percent, and the sunset date extended to 1996.                      
                                                                               
  In answer to Co-chair Frank, Co-chair Pearce said that under                 
  the powers of ATMC, they could  provide space to a qualified                 
  trade association in publications  and promotional materials                 
  developed by the  Council.  She  read from the statutes  and                 
  explained that for the Travel Planner  that was out now, the                 
  production  costs  were around  $400,000  and the  "pro rata                 
  share" paid  by the  trade association  was  $200,000 or  50                 
  percent.  She understood that  their contracted share was 50                 
  percent but under the  statute it referred to  it as a  "pro                 
  rata share".                                                                 
                                                                               
  TOM DOW, Vice President of Hotels, Princess Tours, said that                 
  he was  not expecting to  testify on SB  341 but he  offered                 
  information.    He  said  the   Vacation  Planner  contained                 
  advertising which  was sold to raise money  for the industry                 
  match,  and  the sale  of  labels  were the  two  major fund                 
  raising mechanisms.   Those  pages dedicated  to advertising                 
  were  considered  the   "pro  rata   share"  of  the   trade                 
  association to carry the  cost of the contribution.   If the                 
  book  cost $400,000, and  half of the  book was advertising,                 
  then that was how the 50 percent cost was reached.  Co-chair                 
  Pearce said that Bob Jacobson  had just called those figures                 
  into the committee.                                                          
                                                                               
  After discussion  was had by Co-chairs Pearce and Frank, and                 
  Mr. Dow regarding budget figures and the pro rata share, Mr.                 
  Dow indicated  that the  AA Board  was in  town tonight  and                 
  would be willing to answer questions for the committee.  Co-                 
  chair  Frank asked what  the pro rata  share would be  at 25                 
  percent.    Co-chair Pearce  compared  pro rata  shares with                 
  House and Senate numbers.                                                    
                                                                               
  CLARK  GRUENING,  lobbyist for  Alaska  Visitors Association                 
  (AVA),  said that  15 percent  was presently in  statute and                 
  that was calculated on the total  amount of the budget which                 
  included the industry contribution.  One of the problems AVA                 
  would face with a reduced state contribution was the ability                 
  to sell ads at  the present rate which raised $1.3M  for the                 
  current year.   If the  state share  would go  down (and  it                 
  would with either the House or  Senate numbers) the price of                 
  the  ads  would have  to  be  raised and  coverage  would be                 
  reduced.                                                                     
                                                                               
  Co-chair  Frank said  that if  the budget  was reduced,  the                 
  amount of ads  would not have  to be raised.   Mr.  Gruening                 
  disagreed  and said there would be  slippage.  Senator Sharp                 
  said that was under  the assumption that they would  want to                 
                                                                               
                                                                               
  reduce the program.                                                          
                                                                               
  Co-chair Pearce read from the statute AS  44.33.715(a).  Co-                 
  chair Frank  MOVED amendment 1 which deleted  the word "not"                 
  to subsection (13).   No objection being heard, amendment  2                 
  was ADOPTED.                                                                 
                                                                               
  End SFC-93 #81, Side 1                                                       
  Begin SFC-93 #81, Side 2                                                     
                                                                               
  Discussion  was  held  by Co-chairs  Frank  and  Pearce, and                 
  Senator  Kelly regarding ad  sales and label  sales for ATMC                 
  matching money.                                                              
                                                                               
  Co-chair  Frank  MOVED  for passage  of  CSSB  341(FIN) from                 
  committee  with  individual recommendations.    No objection                 
  being heard,  CSSB 341(FIN)  was REPORTED  OUT of  committee                 
  with "individual  recommendations," and a  zero fiscal  note                 
  for the Department  of Commerce & Economic Development.  Co-                 
  chairs Pearce and  Frank signed "do pass."   Senators Kelly,                 
  Rieger and Sharp signed "no recommendation."                                 
                                                                               
  CS FOR SENATE BILL NO. 370(JUD):                                             
                                                                               
       An Act providing  an exemption  from gambling laws  for                 
       gambling conducted by  cruise ships for  their ticketed                 
       passengers in the  offshore water of the  state outside                 
       of ports;  requiring certain disclosures  in connection                 
       with  promotions  on  board  cruise  ships  and  making                 
       violation of  that provision an unfair  trade practice;                 
       defining  `cruise ship';  and  providing for  exemption                 
       fees for certain  cruise ships before they  can conduct                 
       gambling in the offshore water of the state.                            
                                                                               
  Co-chair Pearce announced that a proposed CSSB 370(FIN) work                 
  draft "D" was  before the committee.   Co-chair Frank  MOVED                 
  for adoption of CSSB 370(FIN)  work draft "D" for discussion                 
  purposes.  No objection being heard, it was ADOPTED.                         
                                                                               
  Co-chair Pearce said CSSB 370(FIN) continued an exemption to                 
  cruise ships  so they can  conduct gambling in  the offshore                 
  waters of  Alaska if  they pay an  exemption fee.   The fees                 
  were found on  page 2.  She  noted that there are  no cruise                 
  ships  that  came   to  Alaska  carrying  more   than  2,000                 
  passengers.  The company  also could decide to not  exempt a                 
  ship.  Section  4 and  5 were added  over co***FIN116PM                      
   0AASFIN    0426941755                                                       
                                                                               
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 26, 1994                                        
                            5:55 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #81, Side 1 (000-end)                                                
  SFC-94, #81, Side 2 (end-000)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Drue  Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 5:55 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to Co-chairs Pearce  and Frank, Senators Rieger,                 
  Kerttula, Kelly, and  Sharp were present.  Senator Jacko did                 
  not attend the meeting.                                                      
                                                                               
  ALSO  ATTENDING:   Cheryl  Sutton,  aide  to  Representative                 
  Moses,   sponsor   of  HJR   34;   Tim  Sullivan,   aide  to                 
  Representative  Eldon   Mulder,  sponsor  of  HB   421;  Don                 
  Stolworthy, Director, Charitable Gaming Division, Department                 
  of  Revenue;  Tom Dow,  Vice  President of  Hotels, Princess                 
  Tours; Clark Gruening, lobbyist, Alaska Visitor Association;                 
  Jetta   Whittaker,   fiscal  analyst,   Legislative  Finance                 
  Division; representatives of the  media, aides to  committee                 
  members and other members of the legislature.                                
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSSB 341(RES): An  Act   relating  to  the   Alaska  Tourism                 
                 Marketing  Council;  and  providing   for  an                 
                 effective date.                                               
                                                                               
                 Discussion was had by Co-chair Frank, Pearce,                 
                 Senators Sharp and Kelly  regarding "pro rata                 
                 share."  Even  though he  had not planned  to                 
                 speak to SB  341, Tom Dow, Vice  President of                 
                 Hotels,  Princess  Tours,  shared information                 
                 with  the  committee  regarding the  vacation                 
                 planner.    Clark Gruening,  lobbyist, Alaska                 
                 Visitor Association, also spoke  to the bill.                 
                 Amendment 1  was ADOPTED.  CSSB  341(FIN) was                 
                 REPORTED  out  of  committee with  individual                 
                 recommendations and  a zero  fiscal note  for                 
                 the   Department   of  Commerce   &  Economic                 
                 Development.                                                  
                                                                               
  CSSB 370(JUD): An Act  providing an exemption  from gambling                 
                                                                               
                                                                               
                 laws for gambling  conducted by cruise  ships                 
                 for their ticketed passengers in the offshore                 
                 water   of  the   state  outside   of  ports;                 
                 requiring certain  disclosures in  connection                 
                 with  promotions on  board  cruise ships  and                 
                 making violation of  that provision an unfair                 
                 trade practice; defining  `cruise ship';  and                 
                 providing  for  exemption  fees  for  certain                 
                 cruise ships before they can conduct gambling                 
                 in the offshore water of the state.                           
                                                                               
                 CSSB  370(FIN) work  draft  "D" was  ADOPTED.                 
                 Amendment  1  was ADOPTED  changing  the word                 
                 "fees" in the title to the word "procedures."                 
                 Amendment  2  was  ADOPTED  providing  for  a                 
                 sunset  for  Sections  1,  2  and  3.    CSSB
                 370(FIN)  as  amended  was  REPORTED  out  of                 
                 committee  with  individual  recommendations,                 
                 and a zero fiscal note  for the Department of                 
                 Revenue showing a revenue of $(295.0).                        
                                                                               
  HB 421:        An  Act  authorizing  grants   for  temporary                 
                 housing  assistance  during  emergencies  and                 
                 disasters.                                                    
                                                                               
                 Tim  Sullivan,  aide to  Representative Eldon                 
                 Mulder,  testified  in  support  of  HB  421.                 
                 Discussion  was  had   by  Co-chairs   Frank,                 
                 Pearce, Senators Rieger  and Kelly  regarding                 
                 assistance  grants  and   temporary  housing.                 
                 Conceptual Amendment  1 and  2 were  ADOPTED.                 
                 HB  421  was  HELD  in  committee  until  new                 
                 language for SCSHB 421(FIN)  was complete and                 
                 could be rescheduled.                                         
                                                                               
  HJR 34:        Requesting the Department of Commerce to give                 
                 a  high  priority  to  fisheries  development                 
                 project   grants   for   the  Alaska   salmon                 
                 industry.                                                     
                                                                               
                 Cheryl  Sutton,  aide to  Representative Carl                 
                 Moses,  sponsor  of  HJR  34,  testified   in                 
                 support of HJR  34.  HJR 34 was  REPORTED out                 
                 of  committee  with a  "do  pass" and  a zero                 
                 fiscal  note for  the  Department  of Fish  &                 
                 Game.                                                         
                                                                               
  HOUSE JOINT RESOLUTION NO. 34:                                               
                                                                               
       Requesting the Department  of Commerce  to give a  high                 
       priority to  fisheries development  project grants  for                 
       the Alaska salmon industry.                                             
                                                                               
                                                                               
  CO-CHAIR PEARCE said  that HJR 34 was  before the committee.                 
  She invited Cheryl Sutton to join the members at the table.                  
                                                                               
  CHERYL SUTTON, fisheries specialist, aide to  Representative                 
  Carl Moses, House Special Committee  on Fisheries, said that                 
  HJR  34  requested  that  the  United States  Department  of                 
  Commerce give  high priority to fisheries development grants                 
  for  the Alaska salmon industry.  Ground fish development in                 
  Alaska had received strong attention  by the U.S. Department                 
  of Commerce.  She  pointed out that the salmon  industry had                 
  undergone  new  stresses  in  its ability  to  compete  in a                 
  changing world  market.   The  Saltonstall-Kennedy Act  made                 
  available to the Secretary  of Commerce up to 30  percent of                 
  the gross  receipts under  the customs  laws from  duties on                 
  fisheries  products.   Each  year the  Secretary must  use a                 
  portion of  those funds to  make grants available  to assist                 
  persons in  carrying out research  and development  projects                 
  which address aspects of U.S. fisheries.  These projects can                 
  include harvesting, processing,  associated infrastructures,                 
  and other projects.   The National Marine  Fisheries Service                 
  issues  the  conditions  under which  applications  would be                 
  accepted and funded.   HJR  34 would ask  Congress to  place                 
  salmon technology  development in  a prominent  position for                 
  project funding  consideration.  This  form of  governmental                 
  assistance would benefit  the industry,  the state, and  the                 
  harvesters and processors in the salmon industry.  She asked                 
  for support for HJR 34.                                                      
                                                                               
  Senator  Rieger MOVED for  passage of HJR  34 from committee                 
  with individual recommendations.   No objection being heard,                 
  HJR 34 was REPORTED OUT of committee with a "do pass," and a                 
  zero fiscal  note for the  Department of  Fish & Game.   Co-                 
  chairs  Pearce and  Frank, Senators Rieger,  Kelly, Kerttula                 
  and Sharp signed "do pass."                                                  
                                                                               
  HOUSE BILL NO. 421:                                                          
                                                                               
       An  Act  authorizing   grants  for  temporary   housing                 
       assistance during emergencies and disasters.                            
                                                                               
  Co-chair  Pearce  announced  that  HB  421  was  before  the                 
  committee.                                                                   
                                                                               
  Tim Sullivan, aide to Representative Eldon Mulder, said this                 
  bill  was  introduced  by  request  of  Alaska  Division  of                 
  Emergency  Services.   Currently people that  were displaced                 
  from  their  homes  during  a state-declared  disaster  have                 
  temporary  housing  arrangements negotiated  individually by                 
  the Department of Military & Veteran Affairs.  This can be a                 
  lengthy and tedious process that takes  time and energy away                 
  from other disaster  assistance.  FEMA had  streamlined this                 
  process during a federal-declared  disaster by making grants                 
                                                                               
                                                                               
  directly to displaced individuals.   These individuals  made                 
  their  own housing arrangements  reducing costs and removing                 
  liability from the government  as a lessor.  This  change in                 
  state statutes would result in a more efficient response  to                 
  temporary housing needs during a state-declared disaster.                    
                                                                               
  Senator Rieger asked  if this  would allow  the Governor  to                 
  have  his  own  capital  budget  for building  or  providing                 
  housing.   Mr. Sullivan  said that during  a state disaster,                 
  individuals  could  find their  own  housing and  they would                 
  receive the grant directly.                                                  
                                                                               
  In answer to Co-chair  Pearce, Mr. Sullivan said he  did not                 
  know if there was a  limit to the amount of the grant.   Co-                 
  chair Frank thought  individuals were eligible for  a $2,500                 
  grant during disasters.                                                      
                                                                               
  Senator  Kelly  voiced  his  concern  that state  grants  be                 
  subordinate to  FEMA and other private  insurance assistance                 
  available.  He  MOVED conceptual amendment 1,  changing page                 
  1,  line  11,  to read  "make  temporary  housing assistance                 
  grants,   subordinate   to   FEMA   and  private   insurance                 
  assistance."    Senator  Kerttula  asked  if the  individual                 
  amount  should  be  capped.   Co-chair  Pearce  reworded the                 
  amendment  to  read  "make  grants  for  temporary   housing                 
  assistance  subordinate   to  FEMA  and   private  insurance                 
  assistance,  to eligible  disaster victims who  have located                 
  temporary housing."  Co-chair Frank referred to AS 26.23.090                 
  that  indicated,    the  "Governor  was authorized  to  make                 
  financial grants to an individual or family to meet disaster                 
  related necessary  expenses or serious needs  of individuals                 
  or families adversely  affected by the disaster  that cannot                 
  otherwise adequately be met from other means of assistance."                 
  He  then  referred  to AS  26.23.100  relating  to temporary                 
  housing which said  the department  would make  arrangements                 
  for temporary  housing.   Mr. Sullivan  reiterated that  the                 
  purpose of the legislation was to give individuals grants so                 
  they could make their own temporary housing arrangements.                    
                                                                               
  Senator Kelly MOVED  conceptual amendment  1.  No  objection                 
  being heard, amendment 1 was ADOPTED.                                        
                                                                               
  Co-chair Frank MOVED conceptual amendment 2 that said grants                 
  to any individual or  family made under AS 26.23.100  and AS                 
  26.23.090  should  not  exceed $5000.    No  objection being                 
  heard, it was ADOPTED.                                                       
                                                                               
  Co-chair Pearce  announced that  a SCSHB  421(FIN) would  be                 
  HELD until another work draft could be written.                              
                                                                               
  CS FOR SENATE BILL NO. 341(RES):                                             
                                                                               
       An  Act  relating  to   the  Alaska  Tourism  Marketing                 
                                                                               
                                                                               
       Council; and providing for an effective date.                           
                                                                               
  Co-chair Pearce announced that CSSB  241(RES) was before the                 
  committee.     She  said   the  Resources   CS  raised   the                 
  contribution by Alaska Tourism Marketing Council (ATMC) from                 
  15 to 25 percent, and the sunset date extended to 1996.                      
                                                                               
  In answer to Co-chair Frank, Co-chair Pearce said that under                 
  the powers of ATMC, they could  provide space to a qualified                 
  trade association in publications  and promotional materials                 
  developed by the  Council.  She  read from the statutes  and                 
  explained that for the Travel Planner  that was out now, the                 
  production  costs  were around  $400,000  and the  "pro rata                 
  share" paid  by the  trade association  was  $200,000 or  50                 
  percent.  She understood that  their contracted share was 50                 
  percent but under the  statute it referred to  it as a  "pro                 
  rata share".                                                                 
                                                                               
  TOM DOW, Vice President of Hotels, Princess Tours, said that                 
  he was  not expecting to  testify on SB  341 but he  offered                 
  information.    He  said  the   Vacation  Planner  contained                 
  advertising which  was sold to raise money  for the industry                 
  match,  and  the sale  of  labels  were the  two  major fund                 
  raising mechanisms.   Those  pages dedicated  to advertising                 
  were  considered  the   "pro  rata   share"  of  the   trade                 
  association to carry the  cost of the contribution.   If the                 
  book  cost $400,000, and  half of the  book was advertising,                 
  then that was how the 50 percent cost was reached.  Co-chair                 
  Pearce said that Bob Jacobson  had just called those figures                 
  into the committee.                                                          
                                                                               
  After discussion  was had by Co-chairs Pearce and Frank, and                 
  Mr. Dow regarding budget figures and the pro rata share, Mr.                 
  Dow indicated  that the  AA Board  was in  town tonight  and                 
  would be willing to answer questions for the committee.  Co-                 
  chair  Frank asked what  the pro rata  share would be  at 25                 
  percent.    Co-chair Pearce  compared  pro rata  shares with                 
  House and Senate numbers.                                                    
                                                                               
  CLARK  GRUENING,  lobbyist for  Alaska  Visitors Association                 
  (AVA),  said that  15 percent  was presently in  statute and                 
  that was calculated on the total  amount of the budget which                 
  included the industry contribution.  One of the problems AVA                 
  would face with a reduced state contribution was the ability                 
  to sell ads at  the present rate which raised $1.3M  for the                 
  current year.   If the  state share  would go  down (and  it                 
  would with either the House or  Senate numbers) the price of                 
  the  ads  would have  to  be  raised and  coverage  would be                 
  reduced.                                                                     
                                                                               
  Co-chair  Frank said  that if  the budget  was reduced,  the                 
  amount of ads  would not have  to be raised.   Mr.  Gruening                 
  disagreed  and said there would be  slippage.  Senator Sharp                 
  said that was under  the assumption that they would  want to                 
                                                                               
                                                                               
  reduce the program.                                                          
                                                                               
  Co-chair Pearce read from the statute AS  44.33.715(a).  Co-                 
  chair Frank  MOVED amendment 1 which deleted  the word "not"                 
  to subsection (13).   No objection being heard, amendment  2                 
  was ADOPTED.                                                                 
                                                                               
  End SFC-93 #81, Side 1                                                       
  Begin SFC-93 #81, Side 2                                                     
                                                                               
  Discussion  was  held  by Co-chairs  Frank  and  Pearce, and                 
  Senator  Kelly regarding ad  sales and label  sales for ATMC                 
  matching money.                                                              
                                                                               
  Co-chair  Frank  MOVED  for passage  of  CSSB  341(FIN) from                 
  committee  with  individual recommendations.    No objection                 
  being heard,  CSSB 341(FIN)  was REPORTED  OUT of  committee                 
  with "individual  recommendations," and a  zero fiscal  note                 
  for the Department  of Commerce & Economic Development.  Co-                 
  chairs Pearce and  Frank signed "do pass."   Senators Kelly,                 
  Rieger and Sharp signed "no recommendation."                                 
                                                                               
  CS FOR SENATE BILL NO. 370(JUD):                                             
                                                                               
       An Act providing  an exemption  from gambling laws  for                 
       gambling conducted by  cruise ships for  their ticketed                 
       passengers in the  offshore water of the  state outside                 
       of ports;  requiring certain disclosures  in connection                 
       with  promotions  on  board  cruise  ships  and  making                 
       violation of  that provision an unfair  trade practice;                 
       defining  `cruise ship';  and  providing for  exemption                 
       fees for certain  cruise ships before they  can conduct                 
       gambling in the offshore water of the state.                            
                                                                               
  Co-chair Pearce announced that a proposed CSSB 370(FIN) work                 
  draft "D" was  before the committee.   Co-chair Frank  MOVED                 
  for adoption of CSSB 370(FIN)  work draft "D" for discussion                 
  purposes.  No objection being heard, it was ADOPTED.                         
                                                                               
  Co-chair Pearce said CSSB 370(FIN) continued an exemption to                 
  cruise ships  so they can  conduct gambling in  the offshore                 
  waters of  Alaska if  they pay an  exemption fee.   The fees                 
  were found on  page 2.  She  noted that there are  no cruise                 
  ships  that  came   to  Alaska  carrying  more   than  2,000                 
  passengers.  The company  also could decide to not  exempt a                 
  ship.  Section  4 and  5 were added  over concern  regarding                 
  promotions on board the cruise ships.                                        
                                                                               
  Co-chair  Pearce  said that  on  page  1, line  4,  the word                 
  "procedures" should replace the word  "fees".  Senator Kelly                 
  MOVED amendment 1  making the word  change.  Senator  Rieger                 
  conceptually OBJECTED  to the reason  behind this amendment.                 
  No further objection being heard, amendment 1 was ADOPTED.                   
                                                                               
                                                                               
  Co-chair Frank MOVED amendment 2 which would sunset Sections                 
  1,  2,  and 3  as  of  December  30, 1996.    Senator  Kelly                 
  OBJECTED.  Co-chair  Pearce called for  a show of hands  and                 
  the motion carried  on a vote  of 3-2 (Co-chairs Pearce  and                 
  Frank, and Senator Sharp were in favor.  Senators Rieger and                 
  Kelly were opposed.   Senator Kerttula  was absent from  the                 
  meeting when the vote was taken.)                                            
                                                                               
  Co-chair  Pearce   estimated  income   from  the   exemption                 
  procedures  to  be  approximately $590,000.    In  answer to                 
  Senator Kelly, she  said there  was no  way to  know if  all                 
  would play.                                                                  
                                                                               
  Co-chair Pearce asked if an  exemption rather than an actual                 
  license  would  result  in  a  lower  fiscal  note  for  the                 
  Department of Revenue.                                                       
                                                                               
  DON  STOLWORTHY,  Director,   Charitable  Gaming   Division,                 
  Department of  Revenue,  agreed  that  the  term  exemptions                 
  rather than licenses  removed the  inferred procedures.   He                 
  said  processing the  ships  this  year  would not  be  very                 
  expensive  and he  estimated  the  new  fiscal  note  to  be                 
  somewhere between  $50-80,000.   Co-chair Frank  pointed out                 
  that if only 5  companies were involved, the ships  could be                 
  processed all at once.                                                       
                                                                               
  Discussion  followed  between  Co-chairs  Frank and  Pearce,                 
  Senator  Kelly,   and  Mr.  Stolworthy,  regarding  how  the                 
  department would enforce this legislation.   Co-chair Pearce                 
  suggested that the Department not  bring a $50-80,000 fiscal                 
  note to the department.                                                      
                                                                               
  TOM DOW, Vice President of Hotels,  Princess Tours, spoke in                 
  support of CSSB  370(FIN).  He  was surprised at the  sunset                 
  that was added to the  bill.  He said it would  cause an air                 
  of uncertainty in several years.   He asked the committee to                 
  reconsider the sunset.  He thought  it would also cause some                 
  cumbersome analysis for  those that were doing  planning 3-4                 
  years out.                                                                   
                                                                               
  Co-chair Pearce voiced her opinion that all gaming should be                 
  stopped on ships or anywhere.  She also said, that if gaming                 
  took place, the state  should receive a percent of  the take                 
  and that the  books should be available  to the state.   She                 
  said the sunset in two or three years would  provide a place                 
  for the legislature  to analyze if gambling  on cruise ships                 
  should continue.                                                             
                                                                               
  In answer to Senator Kelly, Mr. Dow said that all six of the                 
  Princess Tour  cruise ships would  pay for the  exemption as                 
  provided for in the bill.                                                    
                                                                               
  Senator  Kelly  MOVED  for  passage  of CSSB  370(FIN)  from                 
                                                                               
                                                                               
  committee  with  individual recommendations.    No objection                 
  being  heard,   it   was  REPORTED   OUT   with   individual                 
  recommendations and with a fiscal  note for $43.6 showing  a                 
  revenue  of  $620.0.   Co-chair  Frank,  and  Senator Rieger                 
  signed  "do  pass."    Senator  Sharp  and Kelly  signed "no                 
  recommendation."                                                             
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was recessed at approximately 7:15 p.m.                          

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