Legislature(1993 - 1994)

05/04/1994 09:15 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                           May 4, 1994                                         
                            9:15 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #87, Side 1 (450-end)                                                
  SFC-94, #87, Side 2 (end-000)                                                
  SFC-94, #89, Side 1 (000-end)                                                
  SFC-94, #89, Side 2 (end-100)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 9:15 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to Co-chairs Pearce  and Frank, Senators Rieger,                 
  Kerttula, and Sharp were present.  Senators  Jacko and Kelly                 
  joined the meeting after it was in progress.                                 
                                                                               
  ALSO ATTENDING:   Diane Schenker,  Special Assistant to  the                 
  Commissioner,  Department  of Corrections;  Elmer Lindstrom,                 
  Special Assistant to the  Commissioner, Department of Health                 
  & Social  Services; David  Harding,  aide to  Representative                 
  Eileen MacLean, sponsor  of HB  73; Alison Elgee,  Director,                 
  Statewide    Budget    Office,    University   of    Alaska;                 
  Representative John Davies, sponsor of HB 234; Bill Paulick,                 
  Business  Development  Information   Network,  Division   of                 
  Economic Development,  Commerce &  Economic Development  and                 
  member,   Board   of   Directors,    Aerospace   Development                 
  Corporation; Representative  Cynthia Toohey,  sponsor of  HB
  507;  Representative  Con  Bunde,  sponsor  of HB  506;  Joe                 
  McCormick,   Executive   Director,   Alaska  Commission   on                 
  Postsecondary Education (ACPE); Joe Ambrose, aide to Senator                 
  Taylor; C.E. Swackhammer, Deputy Commissioner, Department of                 
  Public  Safety;  Chris  Christensen, Staff  Counsel,  Alaska                 
  Court  System;  Margot  Knuth,  Assistant Attorney  General,                 
  Criminal  Division,  Department  of  Law;  Juanita  Hensley,                 
  Chief,   Driver  Services,   Division  of   Motor  Vehicles,                 
  Department  of Public  Safety; Senator  Fred  Zharoff; Wanda                 
  Cooksey,  lobbyist   for   Single   Site   School   District                 
  Consortium; Susan Sorenson and Dana LaTour, fiscal analysts,                 
  Mike   Greany,   Director,  Legislative   Finance  Division;                 
  representatives of the media, aides to committee members and                 
  other members of the legislature.                                            
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSSSSB 301(HES):    An Act  relating to  the calculation  of                 
                      instructional units used  in determining                 
                                                                               
                                                                               
                      state aid for  education; and  providing                 
                      for an effective date.                                   
                                                                               
                      Joe  Ambrose,  aide  to   Senator  Robin                 
                      Taylor, sponsor  of  SB  301,  spoke  in                 
                      support of  the bill.   Senator Kerttula                 
                      proposed  amendment  1.   Wanda Cooksey,                 
                      lobbyist for Single Site School District                 
                      Consortium,  and  Senator  Fred  Zharoff                 
                      testified  in  support  of amendment  1.                 
                      Amendment  1  FAILED   to  be   adopted.                 
                      Amendment  2  by  Senator   Kelly  would                 
                      tighten  the title of SB 301.  Amendment                 
                      2 was  ADOPTED.    CSSSSB  301(FIN)  was                 
                      REPORTED  out of  committee  with a  "no                 
                      recommendation," and a  fiscal note  for                 
                      the Department of Education for $96.4.                   
  SB 381:             An Act relating  to the construction  of                 
                      the Alaska Orbital Launch Complex by the                 
                      Alaska       Aerospace       Development                 
                      Corporation.                                             
                                                                               
                      Bill   Paulick,   Business   Development                 
                      Information    Network,    Division   of                 
                      Economic    Development,   Commerce    &                 
                      Economic Development, and member  of the                 
                      Board     of     Directors,    Aerospace                 
                      Development  Corporation,  testified  in                 
                      support of SB 381.   SB 381 was REPORTED                 
                      out of committee with a "do pass," and a                 
                      zero fiscal  note for the  Department of                 
                      Commerce & Economic Development.                         
  SJR 52:             Proposing amendments to the Constitution                 
                      of the State of  Alaska relating to  the                 
                      budget reserve fund.                                     
                                                                               
                      Senator  Rieger  proposed   amendment  1                 
                      incorporating new language  for SJR  52.                 
                      Amendment 1 was ADOPTED.  CSSJR  52(FIN)                 
                      was REPORTED out of committee with a "do                 
                      pass," and  a fiscal note for the Office                 
                      of the Governor/  Division of  Elections                 
                      for $2.2.                                                
  HB 73:              An  Act  relating  to  state  and  local                 
                      taxation and other  state regulation  as                 
                      affected  by  the  Alaska Native  Claims                 
                      Settlement Act, as amended,  and related                 
                      federal statutes; and  providing for  an                 
                      effective date.                                          
                                                                               
                      David  Harding,  aide  to Representative                 
                                                                               
                                                                               
                      Eileen  MacLean,  sponsor   of  HB   73,                 
                      testified in support of the bill.  HB 73                 
                      was  REPORTED  out  of   committee  with                 
                      individual  recommendations  and  a zero                 
                      fiscal  note  for   the  Department   of                 
                      Revenue.                                                 
  CSHB 231(FIN):      An Act relating to when previous conduct                 
                      constituting  a  sexual  offense may  be                 
                      used   as   an  aggravating   factor  at                 
                      sentencing.                                              
                                                                               
                      Margot    Knuth,    Assistant   Attorney                 
                      General,  Criminal Division,  Department                 
                      of Law, answered  questions until  Diane                 
                      Schenker,  Special   Assistant  to   the                 
                      Commissioner, Department of Corrections,                 
                      could be located to speak to the  fiscal                 
                      note and  the bill.   CSHB  231(FIN) was                 
                      HELD  in committee  until  a new  fiscal                 
                      note and committee  substitute could  be                 
                      drafted.                                                 
  HB 234:             An  Act  relating   to  endowments   and                 
                      donations  of  the University  of Alaska                 
                      and the University  of Alaska  endowment                 
                      trust   fund;   and  providing   for  an                 
                      effective date.                                          
                                                                               
                      Representative John  Davies, sponsor  of                 
                      HB  234,  and  Alison  Elgee,  Director,                 
                      Statewide Budget  Office, University  of                 
                      Alaska,  testified  in  support  of  the                 
                      bill.    HB  234  was  REPORTED  out  of                 
                      committee  with  a  "do  pass,"  a  zero                 
                      fiscal  note  for   the  University   of                 
                      Alaska,  and  a  fiscal   note  for  the                 
                      Department of Revenue for $22.5.                         
  SCSCSHB 409(HES):   An Act relating to the maximum amount of                 
                      assistance that may be granted under the                 
                      adult public assistance program  and the                 
                      program   of   aid   to  families   with                 
                      dependent children; proposing  a special                 
                      demonstration project within the program                 
                      of  aid  to   families  with   dependent                 
                      children and directing the Department of                 
                      Health  and  Social  Services   to  seek                 
                      waivers from the  federal government  to                 
                      implement the project.                                   
                                                                               
                      Scheduled but not heard.                                 
  CSHB 412(HES) am:   An  Act relating  to facilities  for the                 
                                                                               
                                                                               
                      care  of  children;  to child  placement                 
                      agencies; to maternity homes; to certain                 
                      residential facilities  for adults;  and                 
                      to   foster   homes   for  adults;   and                 
                      providing for an effective date.                         
                                                                               
                      Elmer  Lindstrom,  Special  Assistant to                 
                      the Commissioner, Department of Health &                 
                      Social Services, testified in support of                 
                      the bill.  CSHB 412(HES) am was REPORTED                 
                      out   of   committee   with   individual                 
                      recommendations  and  a fiscal  note for                 
                      the  Department  of   Health  &   Social                 
                      Services-HFC for $30.0.                                  
  SCSHB 445(JUD):     An Act relating to  operating or driving                 
                      a   motor   vehicle,   commercial  motor                 
                      vehicle,  aircraft,  or  watercraft;  to                 
                      classifying   certain   driving    while                 
                      intoxicated  offenses  as  felonies;  to                 
                      motor vehicle forfeiture;  and providing                 
                      for an effective date.                                   
                                                                               
                      C.E.  Swackhammer, Deputy  Commissioner,                 
                      Department  of  Public Safety,  spoke to                 
                      the difference  of the original  and the                 
                      Judicial  version.   He agreed  with the                 
                      bill on principle but the cost reflected                 
                      in  the  department's fiscal  note would                 
                      not  allow  him  to  support  the  bill.                 
                      Chris Christensen, Staff Counsel, Alaska                 
                      Court  System,  testified  that   a  new                 
                      fiscal     note      was     forthcoming                 
                      approximately  twice  the amount  of the                 
                      existing one.   Margot Knuth,  Assistant                 
                      Attorney  General,   Criminal  Division,                 
                      Department of Law, answered questions by                 
                      the committee regarding the  fiscal note                 
                      for the Department of Law and number  of                 
                      hearings  for  DWI  arrests.     Juanita                 
                      Hensley,    Chief,   Driver    Services,                 
                      Division of  Motor Vehicles,  Department                 
                      of   Public   Safety,  spoke   to  whose                 
                      vehicles would be  confiscated under  HB
                      445.  SCSHB 445(JUD) was  HELD for a new                 
                      committee substitute.                                    
  CSHB 506(FIN) am:   An  Act relating  to  student loans;  to                 
                      sanctions  for  defaulting on  a student                 
                      loan,  including  denial   of  a   state                 
                      occupational license; and  providing for                 
                      an effective date.                                       
                                                                               
                      Representative Con Bunde, sponsor  of HB
                      506,   and   Joe   McCormick,  Executive                 
                      Director,    Alaska     Commission    on                 
                      Postsecondary Education (ACPE) testified                 
                      in support  of HB 506.   Senator  Rieger                 
                      voiced his opposition to the denial of a                 
                      state  license to  those  in default  of                 
                      student  loans.   CSHB  506(FIN)  am was                 
                      REPORTED  out of  committee  with a  "do                 
                      pass,"  with a zero  fiscal note for the                 
                      Department  of  Administration,   and  a                 
                      fiscal  note  for   the  Department   of                 
                      Education (ACPE) in  the amount of $99.7                 
                      also showing a revenue of $1,408.3.                      
  SCSCSHB 507(HES):   An  Act  relating  to licensure  by  the                 
                      State   Medical   Board   and  temporary                 
                      permits for certain optometrists.                        
                                                                               
                      Representative  Cynthia  Toohey, sponsor                 
                      of HB 507,  testified in support  of the                 
                      bill.  SCSCSHB 507(HES) was REPORTED out                 
                      of  committee with  a "do  pass,"  and a                 
                      fiscal  note  for   the  Department   of                 
                      Commerce  &  Economic   Development  for                 
                      $2.5.                                                    
                                                                               
  SENATE JOINT RESOLUTION NO. 52:                                              
                                                                               
       Proposing  amendments to the  Constitution of the State                 
       of Alaska relating to the budget reserve fund.                          
                                                                               
  Co-chair Pearce announced  that SJR  52 had been  previously                 
  heard  in  committee.   She  said  that  Senator Rieger  had                 
  proposed  new  language that  could  be incorporated  into a                 
  committee  substitute.   It  was  understood that  the House                 
  version was on the way to the Senate.                                        
                                                                               
  SENATOR STEVE RIEGER said that in  both versions of the bill                 
  the  repayment  provision  was  repealed  because  of  court                 
  rulings that suggested  repayment might require  ratings and                 
  revolving  loan funds  or other  funds that  were serving  a                 
  purpose  but technically  could  be  treated  as  repayment.                 
  Also, the amount that was withdrawn might not be practically                 
  repayable  making  this  a   meaningless  provision  in  the                 
  Constitution.   Secondly, he said  this approach  paralleled                 
  the  prior  constitutional  amendment.    The  statement  in                 
  support which was in the  election pamphlet said that  money                 
  in the budget reserve fund could be  used only if it did not                 
  serve to  increase spending over the prior year of spending,                 
  but if it was used to increase spending,  it would require a                 
  three-quarter vote.   He explained  that the House  approach                 
  was  more  restrictive,  saying  that  money in  the  budget                 
  reserve fund could not be used for any purpose even in cases                 
                                                                               
                                                                               
  of a deficit or a shortfall that needed to be covered except                 
  with  a three-quarter  vote.   The  other  issue raised  was                 
  whether  to  use  plain english  or  as  it  was drafted  in                 
  technical  language.   He  felt it  should  be put  in plain                 
  English like the rest of the Constitution was written.                       
                                                                               
  Senator  Rieger  MOVED  amendment  1  containing  his  plain                 
  English language.   Senator Kerttula OBJECTED.   Amendment 1                 
  was  ADOPTED on a vote  of 3 to  1 (Co-chairs Pearce, Frank,                 
  and  Senator  Sharp  were  in  favor, Senator  Kerttula  was                 
  opposed).                                                                    
                                                                               
  CSSJR  52(FIN)  was REPORTED  out  of committee  with  a "do                 
  pass,"  and fiscal  note  for the  Office  of the  Governor,                 
  Division  of  Elections,  for $2.2.    Co-chairs  Pearce and                 
  Frank,  Senators  Rieger  and  Sharp,  signed a  "do  pass."                 
  Senator Kerttula signed a "do not pass."                                     
                                                                               
  SENATE CS FOR HOUSE BILL NO. 445(JUD):                                       
                                                                               
       An  Act  relating  to  operating  or  driving  a  motor                 
       vehicle,   commercial   motor  vehicle,   aircraft,  or                 
       watercraft;  to  classifying   certain  driving   while                 
       intoxicated  offenses  as  felonies;  to motor  vehicle                 
       forfeiture; and providing for an effective date.                        
                                                                               
  Co-chair Pearce announced that SCSHB 445(JUD) was before the                 
  committee  with  6   fiscal  notes  making  the   bill  very                 
  prohibitive.   She invited  someone from  the department  to                 
  speak to the bill.                                                           
                                                                               
  End SFC-93 #87, Side 1                                                       
  Begin SFC-93 #87, Side 2                                                     
                                                                               
  C.E. SWACKHAMMER, Deputy  Commissioner, Department of Public                 
  Safety, said the Governor's bill that was introduced changed                 
  the implied consent law that would allow the taking of blood                 
  and urine in fatal and major injury accidents.  In 1992, 382                 
  major injury  accidents occurred involving 552  drivers, and                 
  89 fatality  accidents involving  125 drivers.   The  Senate                 
  Judiciary  version  made two  changes the  department agreed                 
  with  on  principle but  were  prohibitive due  to  the high                 
  fiscal notes.                                                                
                                                                               
  The first  change made a  third time DWI offender  a class C                 
  felony.  The second change was  that the court shall forfeit                 
  the offender's vehicle even if it was the first offense.  He                 
  referred to page 10-11  of the bill.   In answer to  Senator                 
  Rieger, Mr.  Swackhammer  confirmed  that  forfeiture  would                 
  occur on the first offense.                                                  
                                                                               
  In  answer  to  Co-chair Frank,  Mr.  Swackhammer  said that                 
  presently  the Department  had the  right  to take  blood or                 
                                                                               
                                                                               
  urine  samples  if an  arrest  was  made.   In  major injury                 
  accidents, the person would usually  be in the hospital, and                 
  if an arrest was made,  the department would be  responsible                 
  for that person from that time on.                                           
                                                                               
  Co-chair Pearce asked if the  forfeiture portion of the bill                 
  added a fiscal note  to the bill.  Mr.  Swackhammer referred                 
  to fiscal notes  for the Department  of Law for $786.3,  and                 
  for the Alaska Court System in the amount of $986.9.                         
                                                                               
  In answer to Co-chair Frank, Mr. Swackhammer said there were                 
  over 600 cases  of DWI  third time  offenders a  year.   The                 
  Department  of  Corrections had  anticipated  320 additional                 
  beds would be needed for this legislation.                                   
                                                                               
  CHRIS  CHRISTENSEN,  Staff  Counsel,  Alaska  Court  System,                 
  informed the committee that a new fiscal note, approximately                 
  double the existing one,  would be forwarded to them.   Each                 
  year there were about  4400 first time DWI cases  in Alaska.                 
  The trial rate was under  5 percent because the consequences                 
  were generally 3  days in jail and  a $250 fine.   With this                 
  new legislation, consequences would change to a fine, 3 days                 
  in jail, and  the confiscation of the  vehicle.  He said  it                 
  would take  four more  district court  judges to  handle the                 
  conservative estimated  10 percent increase  in trials which                 
  explained the revised fiscal note not yet received.                          
                                                                               
  In answer to Senator Rieger, Mr. Swackhammer said that drunk                 
  driving under  SCSHB 445(JUD) would  became a felony  on the                 
  third offense.    Mr. Christensen  said that  the day  fines                 
  legislation  specifically  prohibited   any  crime  with   a                 
  mandatory sentence  being treated  with a  day  fine.   DWIs                 
  would not come under that legislation if it should pass.                     
                                                                               
  In answer  to Senator Sharp,  Mr. Christensen said  that any                 
  money the state received for the  sale of any seized vehicle                 
  would go into the general fund.                                              
                                                                               
  In  answer  to  Co-chair  Frank,  Margot  Knuth,   Assistant                 
  Attorney General, Criminal Division, Department of Law, said                 
  the success rate  of DWI cases  going to trial was  about 80                 
  percent.   If there was  to be a  mandatory sentence of  360                 
  days  in  jail for  the  third DWI  offense,  the Department                 
  expected the success rate to go down because jurors would be                 
  aware  of  the sentence  and  may feel  that it  was  not an                 
  appropriate  sentence.   It could  drop to  a  60-70 percent                 
  success rate.  Again, in answer to Co-chair Frank, Ms. Knuth                 
  said that a ruling  from the Alaska Supreme Court  said that                 
  an error rate of  one percent must be factored into cases on                 
  the breath  machine, making  a .10  no  longer adequate  but                 
  instead .11 was  needed.   Those cases would  then be  lost.                 
  Also,  some  DWI arrests  were made  on behavior  or conduct                 
  rather  than a breathalizer result and  those were easier to                 
  argue.   In any  case that  goes to  the jury,  there was  a                 
                                                                               
                                                                               
  factor of a  loss rate for  unknown reasons even though  the                 
  system did not allow for jury nullification.                                 
                                                                               
  In answer to  Senator Sharp,  Ms. Knuth answered  that if  a                 
  person tested at 1.1,  even though the jury should  find the                 
  defendant not guilty  of a DWI, his/her  license would still                 
  stay suspended.  Senator Sharp then asked why the forfeiture                 
  would not hold up.  Ms. Knuth said the biggest  problem with                 
  a forfeiture was  that anyone  that had an  interest in  the                 
  vehicle was entitled  to a hearing on  it.  Rarely  were the                 
  drivers sole owners of the vehicles.  That was why a hearing                 
  was held in almost every  forfeiture case.  Mr.  Swackhammer                 
  said it would be only the equity  of the owner that would be                 
  wiped out.   He  said, in  answer to  Senator Sharp's  first                 
  question, the forfeiture  was court ordered and  the refusal                 
  to  take  a breathalizer  was implied  consent.   A driver's                 
  license could be suspended administratively and a forfeiture                 
  must be done through the court.                                              
                                                                               
  In answer to Senator Rieger,  JUANITA HENSLEY, Chief, Driver                 
  Services, Division of  Motor Vehicles, Department of  Public                 
  Safety,  said  under  SCSHB 445(JUD)  any  vehicle  could be                 
  forfeited whether it was  borrowed or rented.  She  said the                 
  owner could petition  the court for a  hearing regarding the                 
  forfeiture of the vehicle.                                                   
                                                                               
  In answer to Co-chair Frank, Ms.  Knuth said that about one-                 
  half  to  one-third of  the fiscal  note  was caused  by the                 
  forfeiture provision because of the hearings required in the                 
  forfeitures.                                                                 
                                                                               
  In  answer to  Co-chair  Frank,  Ms.  Knuth  said  that  the                 
  Department of Law believed this  legislation would have some                 
  deterrent effect, but not enough to offset the number of new                 
  trials  expected.   When  a misdemeanor  on a  third offense                 
  became a  felony,  the  motivation  to  go  to  trial  would                 
  increase at  least five  times, causing  trials to  increase                 
  even  though there  might  be a  fifteen  percent case  load                 
  reduction because of the deterrent effect.                                   
                                                                               
  Mr. Swackhammer agreed that the  legislation would have some                 
  deterrent value but  the system was already  processing over                 
  4,000 DWI cases a year and did  not have enough beds to take                 
  care of existing offenders.                                                  
                                                                               
  Discussion  was  had by  Senator  Sharp and  Mr. Swackhammer                 
  regarding restricting the forfeiture  language to only third                 
  offenses.  Ms. Knuth pointed out that the Courts already had                 
  a forfeiture provision that applied  to third and subsequent                 
  offenses.   The  Court  did  use  that  provision  when  the                 
  defendant was the sole owner of the vehicle.  The provisions                 
  of SCSHB 445(FIN) were  mandatory in all offenses.   She was                 
  not certain that  any portion  of the forfeiture  provisions                 
  could be left in the bill and be useful.  She suggested that                 
                                                                               
                                                                               
  over  the interim  a comprehensive  forfeiture  provision be                 
  written for this legislation.                                                
                                                                               
  Ms. Knuth reiterated  that the  problem with the  forfeiture                 
  provision was the number  of hearings it would require.   In                 
  answer to Senator Sharp, Mr. Christensen agreed that the new                 
  fiscal  note  was  triggered  by  the  forfeiture  provision                 
  applied to first, second and third,  etc. offenses.  He said                 
  he  would not have revised the fiscal note if it had applied                 
  only to third offenses.  He  wanted to point out that  while                 
  the  existing  fiscal note  did  not  take into  effect  the                 
  increased  number of trials,  it did  take into  account the                 
  increase  in  forfeiture hearings.    He  went on  to  say a                 
  conservative  estimate  said that  10  percent of  the cases                 
  would have hearings,  equating to 300  hearings at a half  a                 
  day each, requiring  three-quarter time  of a circuit  court                 
  judge.                                                                       
                                                                               
  Discussion  followed   by  Co-chair  Frank  and   Ms.  Knuth                 
  regarding real  estate forfeiture  procedures  for use  with                 
  vehicles.   In answer  to Co-chair  Frank, Ms.  Hensley said                 
  that there were very few forfeitures in process at  present.                 
  Co-chair Frank observed that this process was cumbersome and                 
  he could understand  why it was  not used extensively.   Ms.                 
  Knuth also pointed  out that  along with  the process  being                 
  burdensome,  as   offenses  increased,  the  worth   of  the                 
  defendant's vehicle usually decreased.                                       
                                                                               
  Co-chair Frank acknowledged  that the  opinion was that  the                 
  vehicle should be  taken out  of the hands  of the  offender                 
  rather than capturing any money from the vehicle.  Ms. Knuth                 
  again  reiterated  that  the  Department  of  Law completely                 
  supported the idea of confiscating vehicles but did not feel                 
  that this version of the bill was the appropriate one.                       
                                                                               
  In answer  to Senator  Rieger, Ms. Knuth  said the  original                 
  intent of the  bill was to  expand implied consent to  cover                 
  accident cases where  there was  serious physical injury  or                 
  death.  The  point was that the officer need  not arrest the                 
  driver before asking for a  blood or urine sample.  Many  of                 
  these accidents were caused by people under the influence of                 
  drugs and unlike  alcohol there was  no odor on the  breath,                 
  bloodshot eyes or other signs of intoxication.  The public's                 
  interest in finding  out these persons were  operating under                 
  the influence was so high it warranted asking them for blood                 
  or urine  samples.   Ms. Knuth  agreed with Senator  Rieger,                 
  that implied consent could be applied to a victim as well.                   
                                                                               
  Co-chair  Pearce  announced that  SCSCSHB 445(FIN)  would be                 
  held in committee.                                                           
                                                                               
  CS FOR HOUSE BILL NO. 506(FIN) am:                                           
                                                                               
                                                                               
       An  Act  relating to  student  loans; to  sanctions for                 
       defaulting on  a student  loan, including  denial of  a                 
       state  occupational  license;   and  providing  for  an                 
       effective date.                                                         
                                                                               
  Co-chair Pearce invited Representative Con Bunde, sponsor of                 
  HB  506,  and  Joe  McCormick,  Executive  Director,  Alaska                 
  Commission on  Postsecondary Education  (ACPE), to join  the                 
  members at the table.                                                        
                                                                               
  REPRESENTATIVE CON BUNDE,  sponsor of HB 506,  said the bill                 
  had been requested by Postsecondary Education and would make                 
  the student loan program more  "user friendly" and business-                 
  like.                                                                        
                                                                               
  JOE MCCORMICK highlighted the purposes of HB 506.  First, it                 
  was  written to enhance the integrity  of the Alaska Student                 
  Loan Program in the eyes of the bond holders, bond insurers,                 
  and  financial  markets.   Since  1986, the  legislature had                 
  directed  that  the Alaska  Student  Loan Program  issue tax                 
  exempt bonds in order to continue funding the program.  As a                 
  result, the program  had been examined  and was required  to                 
  come before the legislature with recommendations  that would                 
  improve and strengthen the stability of the program.                         
                                                                               
  Secondly,  it  provided  for   easier  repayment  terms  for                 
  students  by offering  a consolidation program  provision in                 
  the bill.   Also, a variable  interest rate provision  would                 
  allow students the lowest  possible interest rate  depending                 
  on the cost of money at the time of issuance of the bonds.                   
                                                                               
  Third,  provisions had  been  identified to  improve program                 
  administration.  Lastly,  the ability to collect  loans from                 
  borrowers had been improved.  A strong message would be sent                 
  to students  that the  fund was  a revolving  one and  their                 
  repayment  was the most important aspect of the loan because                 
  it provided future opportunities for students to continue to                 
  borrow in the program.                                                       
                                                                               
  Senator  Rieger  asked  if  the  department  would  consider                 
  seizing the  delinquent borrower's  vehicle  since it  would                 
  deny occupational licenses for unpaid  loans.  Mr. McCormick                 
  explained that the occupational license was not a forfeiture                 
  but a  stop-gap measure so  that prior  to an issuance  of a                 
  renewal of  a  license,  a  student  loan  must  be  brought                 
  current.  If  a loan  was in default,  the department  would                 
  like to negotiate with the borrower prior to the issuance of                 
  the  license.  Seizing  vehicles had not  been something the                 
  Commission would like to pursue  or suggest.  Representative                 
  Bunde added that student loans  were made without collateral                 
  and most borrowers had no credit history.                                    
                                                                               
  Senator  Rieger  reiterated  his  discomfort  in  regard  to                 
  holding someone's license if they were  in default.  He felt                 
                                                                               
                                                                               
  that  by taking away someone's  license, the person would be                 
  unable to make a  living and likened it to  debtor's prison.                 
  Representative Bunde responded  that once a debtor  had made                 
  arrangements for repayment they were no longer in default.                   
                                                                               
  Senator Sharp  observed  that  with  the  new  consolidation                 
  provision it would  be easier for  borrowers to repay  their                 
  loans.   Mr.  McCormick  stressed that  this bill  would not                 
  collect a lot of  money for the Alaska Student  Loan program                 
  but the Commission wanted to send a message to the borrowers                 
  and bond holders  in New York that  collection efforts would                 
  be taken seriously.   He felt that  if the State could  loan                 
  money to a  student for  their education it  was only  right                 
  that  the  borrower  remained  current  while  enjoying  the                 
  privilege of practicing law, medicine, etc. in Alaska.                       
                                                                               
  Senator Sharp  MOVED for passage  of CSHB  506(FIN) am  from                 
  committee.   Hearing no objection, the bill was REPORTED out                 
  with a  "do pass", a zero fiscal  note for the Department of                 
  Administration,  and  a fiscal  note  for the  Department of                 
  Education, ACPE  for $99.7  showing $1,408.3  revenue.   Co-                 
  chairs Pearce, Frank,  Senators Sharp, and Kelly  signed "do                 
  pass."  Senator Rieger signed "do not pass."                                 
                                                                               
  SENATE CS FOR CS FOR HOUSE BILL NO. 507(HES):                                
                                                                               
       An Act relating to licensure by the State Medical Board                 
       and temporary permits for certain optometrists.                         
                                                                               
  Co-chair  Pearce  announced  that  HB  507  was  before  the                 
  committee and invited Representative Cynthia Toohey to  come                 
  to the table.                                                                
                                                                               
  REPRESENTATIVE TOOHEY said HB 507 was the companion  bill to                 
  SB  298 which  had passed  out  of Senate  HESS &  Labor and                 
  Commerce Committees.  She said it was requested by the State                 
  Medical Board regarding a  problem in the bush or in an area                 
  where there  was  no physician  present.   The  tenen  locum                 
  problem stopped  the attempt to secure a  physician to cover                 
  for  another  one.   It  was  a bill  the  optometrists also                 
  supported so that when  they were sick or on  vacation, they                 
  could find a substitute.                                                     
                                                                               
  In  answer to  Co-chair  Frank,  Representative Toohey  said                 
  there had been an attempt to interview by telecommunication.                 
  The  required  interview  must  be   made  by  a  designated                 
  representative of the State Medical Board.                                   
                                                                               
  Senator Kelly  MOVED for  passage of  SCSCSHB 507(HES)  from                 
  committee with  individual  recommendations.   The bill  was                 
  REPORTED  out  of committee  with a  "do  pass", and  with a                 
  fiscal  note  for  the  Department  of Commerce  &  Economic                 
  Development  for $2.5.   Co-chairs  Pearce, Frank,  Senators                 
                                                                               
                                                                               
  Rieger, Kelly, Sharp and Kerttula signed "do pass."                          
                                                                               
  CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 301(HES):                      
                                                                               
       An Act  relating to  the  calculation of  instructional                 
       units used in determining state  aid for education; and                 
       providing for an effective date.                                        
                                                                               
  Co-chair  Pearce announced  CSSSSB 301(HES)  was before  the                 
  committee and invited  Joe Ambrose, aide to  Senator Taylor,                 
  sponsor of SB 301, to speak to the bill.                                     
                                                                               
  JOE AMBROSE said  the bill originally introduced  by Senator                 
  Taylor encompassed a permanent fix on the single site school                 
  issue but that provision had been removed from the bill.  He                 
  wanted  the committee  to  know that  Senator Taylor  was in                 
  support  of CSSSSB  301(HES)  which drastically  reduced the                 
  fiscal note.                                                                 
                                                                               
  Mr. Ambrose outlined section 1  which reduced the percentage                 
  at which the hold harmless provision was triggered from  the                 
  current 10 percent to 5 percent.   It would bring Sitka into                 
  the  hold harmless  cycle  which allowed  their  loss to  be                 
  spread over three years.  In  answer to Co-chair Pearce, Mr.                 
  Ambrose ask Senator Rieger to speak to Section 2.                            
                                                                               
  Senator  Rieger  said  Section 2  would  effect  Adak's hold                 
  harmless  if,  in  fact,  the   Adak  shutdown  occurred  as                 
  proposed.  What  the new hold  harmless provisions did as  a                 
  package was to create three tiers of hold harmless.  He went                 
  on to explain if a reduction in entitlement of instructional                 
  units exceeded 5  percent in a  year, it triggered the  hold                 
  harmless similar to  what was in  existing law.  There  were                 
  two  other  brackets  for  more   dramatic  changes  in  the                 
  entitlement to instructional units.  Existing law said there                 
  was a  three-step process.   First,  a four-year  phase-down                 
  where the school would receive 75 percent of what they would                 
  have  been entitled to,  then 50  percent, then  25 percent,                 
  then zero.   The next, a three-year  phase-down, two-thirds,                 
  one-third and then  zero, as a  hold harmless.  Then  a more                 
  extreme, two-year phase-down  bracket, 50  percent and  then                 
  zero.  The  more rapid phase-downs  occurred in cases  where                 
  there  was   a  more   dramatic  drop   in  entitlement   to                 
  instructional units.   If  a community  suffered a  complete                 
  shutdown,  it was  reasoned that  it should  not  take three                 
  years of gradual  phasing out  of the harmless.   There  was                 
  recognition  of  some need  for  hold harmless  because some                 
  employment contracts needed  to be  honored and  contractual                 
  obligations and funding were required to carry those out.                    
                                                                               
  Mr.  Ambrose  said  that  the  Department of  Education  had                 
  advised them that a reduction of the 5 percent trigger would                 
  add only Sitka to  the hold harmless provision.   There were                 
                                                                               
                                                                               
  three  other  districts in  one  step  or the  other  at the                 
  present time.  In answer to  Co-chair Frank, Mr. Ambrose did                 
  not know which communities those were.                                       
                                                                               
  Senator  Kerttula  MOVED  amendment   1.    Co-chair  Pearce                 
  OBJECTED  for  discussion purposes.    Senator Fred  Zharoff                 
  explained  that  amendment 1  would  hopefully take  care of                 
  funding for the single/dual site schools.  Since the funding                 
  formula  had been  revised 5-6  years  ago, a  shortfall had                 
  happened each year.                                                          
                                                                               
  Wanda  Cooksey, lobbyist  for  Single  Site School  District                 
  Consortium, spoke in support  of amendment 1.  She  said the                 
  formula provided in amendment  1 was the exact formula  that                 
  was being used  now.  She felt  this was a good  time to add                 
  this formula so when the foundation formula was worked on in                 
  the future,  this issue would  be included instead  of being                 
  outside  the  formula.   In  answer  to  Senator Kelly,  Ms.                 
  Cooksey answered that the fiscal impact for the coming year,                 
  $3.1M would be funded in HB 505.                                             
                                                                               
  In answer to Senator Sharp, Ms.  Cooksey said it effected 21                 
  school districts that range in size  from 50 to 800 students                 
  ADM.  Again in answer to Senator Sharp, Ms. Cooksey answered                 
  that there were 3 REAAs in the group and the rest were small                 
  municipal schools.  In answer to Senator Kerttula,  she said                 
  each REAA had only one funding community.                                    
                                                                               
  Co-chair Pearce called for a show of hands  on the motion to                 
  ADOPT amendment 1 and  the motion FAILED on a vote of 6 to 1                 
  (Co-chairs Frank  and Pearce, Senators Sharp,  Kelly, Rieger                 
  and Jacko were opposed, Senator Kerttula was in favor).                      
                                                                               
  Senator Rieger  MOVED for  passage of  CSSSSB 301(HES)  from                 
  committee with individual recommendations.  Co-chair  Pearce                 
  noted  that SB 301  had not received  a "do pass."   Senator                 
  Kelly noted  that he was not comfortable with the title.  No                 
  further objection having  been heard, the bill  was REPORTED                 
  out.                                                                         
                                                                               
  Senator Kelly  MOVED that  CSSSSB 301(HES)  be brought  back                 
  before  the committee  for the  purpose of  an amendment  to                 
  "tighten" the title.   No objection being heard,  the motion                 
  to RESCIND the committee's action CARRIED.                                   
                                                                               
  Senator Kelly MOVED conceptual amendment 2 that would revise                 
  the title  to conform  with the contents  of the  bill.   No                 
  objection   being  heard,   amendment  2  was   ADOPTED  for                 
  incorporation within a Finance Committee  Substitute for the                 
  bill.                                                                        
                                                                               
  Senator  Kelly  MOVED for  passage  of CSSSSB  301(FIN) from                 
  committee  with individual  recommendations.   No  objection                 
  being heard, the bill was REPORTED out as amended with a "no                 
                                                                               
                                                                               
  recommendation", and  a fiscal  note for  the Department  of                 
  Education  for  $96.4.    Co-chair  Pearce,  Senator  Kelly,                 
  Rieger, Kerttula and Sharp signed "no recommendation".                       
                                                                               
  SENATE BILL NO. 381:                                                         
                                                                               
       An  Act  relating  to the  construction  of  the Alaska                 
       Orbital   Launch  Complex   by  the   Alaska  Aerospace                 
       Development Corporation.                                                
                                                                               
  Co-chair Pearce  invited Bill Paulick,  Business Development                 
  Information  Network,  Division  of   Economic  Development,                 
  Commerce & Economic Development, to speak to SB 381.                         
                                                                               
  BILL PAULICK explained he also was a member of the Aerospace                 
  Development  Corporation   Board  of  Directors.     SB  381                 
  authorized the  Aerospace Development Corporation  to engage                 
  in a project that  would cost more than $1M.   He noted that                 
  projects over $1M  had to be authorized  by the legislature.                 
  He felt the  aerospace industry  represented a new  industry                 
  for the state, new employment, and new income for  Alaskans.                 
  He was  instrumental in setting  up the new  Corporation, as                 
  well as selecting the new Director and very pleased  to be a                 
  part of the operation.                                                       
                                                                               
  Mr.  Paulick  went  on  to  say   that  SB  381  marked  the                 
  commercialization  of aerospace for Alaska.   The bill had a                 
  zero fiscal note and in no way obligated the legislature for                 
  future authorizations.   It would  allow the Corporation  to                 
  bond and construct  a commercial  launch facility on  Kodiak                 
  Island  to  be  serviced by  the  ground  facilities  at the                 
  University of Alaska Geophysical Institute in Fairbanks.  He                 
  offered to answer questions from committee members.                          
                                                                               
  In  answer to  Senator Kelly,  Mr.  Paulick said  that bonds                 
  would be a  combination of revenue and possibly AIDEA bonds.                 
  Since it would be a dual use facility through the Department                 
  of Defense,  there were about  five commercial  contractors,                 
  including  Lockheed  Aerospace,  that  would participate  in                 
  commercial  debt funding  in  the  facility.    He  did  not                 
  anticipate any state financing besides  AIDEA bonds for this                 
  project.                                                                     
                                                                               
  In answer to  Senator Rieger, Mr. Paulick said  the facility                 
  had been planned  and approved by the  Aerospace Development                 
  Corporation Board of Directors.  They had reviewed the draft                 
  plan  and  the  plans  could   be  adjusted  depending  upon                 
  commercial  requirements  decided  over  the  next  eighteen                 
  months prior to  launch.  Mr.  Paulick handed out an  aerial                 
  photo  artist mock-up  of the  proposed facility.   He  then                 
  showed the committee  a notebook  of specifications for  the                 
  facility.   He went on  to explain the  relationship between                 
  Fairbanks and  Kodiak.   He said that  Kodiak represented  a                 
                                                                               
                                                                               
  unique  location  and  opportunity  for launching  different                 
  directions   and  into  different   orbits.    In  comparing                 
  Vandenberg to Kodiak,  he said  the weather was  as good  in                 
  Kodiak as it was in Florida and the rainfall and cloud cover                 
  was about the  same.  He  admitted that the temperature  was                 
  different.   He  also noted  that it  was economically  more                 
  feasible to launch out of Kodiak that Vandenberg.                            
                                                                               
  In answer  to Senator  Jacko, Mr. Paulick  agreed there  was                 
  existing infrastructure  at Kodiak  (about 32  miles out  of                 
  town)  and other  places around  the state.   Fairbanks  and                 
  Kenai had been ruled out.                                                    
                                                                               
  In  answer to  Senator  Kelly, Mr.  Paulick  said the  first                 
  launch would hopefully be in late 1995.  The safety analysis                 
  would  be  complete early  1995.   The Japanese  and several                 
  others were interested  in using the  launch site.  He  said                 
  the people in Kodiak were very supportive of the project.                    
                                                                               
  Co-chair Frank  MOVED for passage  of SB 381  from committee                 
  with individual recommendations.  No  objection being heard,                 
  the  bill was  REPORTED out  with a  "do pass",  and a  zero                 
  fiscal  note  for  the  Department  of Commerce  &  Economic                 
  Development.   Co-chair Pearce, Senators Kelly,  Rieger, and                 
  Jacko  signed  "do pass,"  and  Senator Sharp  signed  a "no                 
  recommendation".                                                             
                                                                               
  HOUSE BILL NO. 234:                                                          
                                                                               
       An  Act  relating to  endowments  and donations  of the                 
       University  of  Alaska  and  the  University  of Alaska                 
       endowment trust  fund; and  providing for  an effective                 
       date.                                                                   
                                                                               
  Co-chair Pearce invited Representative Davies to come before                 
  the committee and speak to HB 234.                                           
                                                                               
  REPRESENTATIVE  JOHN  DAVIES, sponsor  of  HB 234,  said the                 
  University was  interested in  managing the  endowment trust                 
  fund.  The University felt it could get a better  return for                 
  their money and showed a good track record on other funds it                 
  managed.                                                                     
                                                                               
  Senator  Kelly  asked  if  he  was  referring  to  the  same                 
  University that was unable to maintain its buildings and now                 
  wanted to manage its own money.                                              
                                                                               
  ALISON ELGEE, Director, Statewide  Budget Office, University                 
  of Alaska,  provided a  copy of  the investment  performance                 
  rating by  Callan &  Assoc. of  the Department  of Revenue's                 
  management of the land grant trust funds for the University.                 
  She said  that over the  past three years,  the University's                 
  own performance of  the management  of the foundation  funds                 
                                                                               
                                                                               
  had realized approximately 3 percent  greater rate of return                 
  than the Department of Revenue which  placed them in the top                 
  three percent nationwide  for the management of  these types                 
  of funds.  In comparison, she said the Department of Revenue                 
  was placed in the bottom one percent nationwide.                             
                                                                               
  Co-chair Frank reminded the committee  of the SBS investment                 
  losses made by the Department of Revenue several  years ago.                 
  He  said he did not know if there was any connection between                 
  managing money and coping with deferred maintenance.                         
                                                                               
  Senator  Sharp MOVED for  passage of  HB 234  from committee                 
  with  individual recommendations.  No objection being heard,                 
  the bill was REPORTED  out with a  "do pass", a zero  fiscal                 
  note for the University and a fiscal note for the Department                 
  of Revenue for $22.5.  Co-chairs  Pearce and Frank, Senators                 
  Sharp and Rieger signed "do pass."   Senator Jacko and Kelly                 
  signed a "no recommendation"                                                 
                                                                               
  CS FOR HOUSE BILL NO. 412(HES) am:                                           
                                                                               
       An Act relating to facilities for the care of children;                 
       to  child placement  agencies; to  maternity homes;  to                 
       certain  residential  facilities  for  adults;  and  to                 
       foster homes for adults; and providing for an effective                 
       date.                                                                   
                                                                               
  Co-chair Pearce  invited Elmer Lindstrom,  Special Assistant                 
  to the Commissioner, Department of Health & Social Services,                 
  to speak to HB 412.                                                          
                                                                               
  ELMER  LINDSTROM  said  that HB  412  was  not substantially                 
  different than CSSB 268(JUD) which was previously moved from                 
  Senate Finance.  The most significant change related to page                 
  6 of the  bill, exemptions from  foster home licensor.   The                 
  other  difference  was  that  the  House  Finance  Committee                 
  reduced  the  fiscal  note submitted  by  the  Department to                 
  $30.0.   The  Department  preferred the  larger,  previously                 
  submitted fiscal note but would proceed with the $30.0  note                 
  if so directed by the legislature.                                           
                                                                               
  Senator Rieger MOVED  for passage of  CSHB 412(HES) am  from                 
  committee  with individual  recommendations.   No  objection                 
  being  heard,  the  bill was  REPORTED  out  with individual                 
  recommendations, and  a fiscal  note for  the Department  of                 
  Health &  Social Services for  $30.0.  Co-chair  Pearce, and                 
  Senator Jacko signed  "do pass."   Co-chair Frank,  Senators                 
  Rieger and Sharp signed "no recommendation."                                 
                                                                               
  HOUSE BILL NO. 73:                                                           
                                                                               
       An Act relating  to state and local taxation  and other                 
                                                                               
                                                                               
       state  regulation as  affected  by  the  Alaska  Native                 
       Claims Settlement Act, as amended, and  related federal                 
       statutes; and providing for an effective date.                          
                                                                               
  Co-chair Pearce  announced that  HB 73  had previously  been                 
  heard by the committee in February 1994.  Co-chair Frank had                 
  some questions  regarding federal  law.   She invited  David                 
  Harding to join the members at the table to speak to HB 73.                  
                                                                               
  DAVID HARDING, aide to Representative MacLean, sponsor to HB
  73, said that the  bill made technical changes to  state law                 
  to bring  it  into compliance  with changes  in the  federal                 
  Alaska  Native  Claims  Settlement  Act  as  it  related  to                 
  exemptions from property  taxation at  the state, local  and                 
  federal level.  He referred the  committee to a memo written                 
  by  Jack  Chenoweth  that  stated   that  federal  law  took                 
  precedence  and at present, state law  did not reflect those                 
  changes.  He drafted HB 73  so that it would now and  in the                 
  future track federal law.  There had been several cases that                 
  had ended up  in court because state law was misread.  HB 73                 
  was drafted to  avoid that  confusion in the  future by  the                 
  state assessor or anyone else reading the law.                               
                                                                               
  In answer to Senator  Sharp, Mr. Harding said the  cases had                 
  taken place  in Cook  Inlet but he  did not  know the  exact                 
  circumstances.                                                               
                                                                               
  Senator Jacko MOVED for passage of HB 73 from committee with                 
  individual recommendations.  No  objection being heard,  the                 
  bill was REPORTED out with a individual recommendations, and                 
  a zero fiscal note for the Department of Revenue.  Co-chairs                 
  Pearce,  and  Frank,  and Senator  Jacko  signed  "do pass."                 
  Senators Rieger and Sharp signed "no recommendation."                        
                                                                               
  CS FOR HOUSE BILL NO. 231(FIN):                                              
                                                                               
       An Act relating to when previous conduct constituting a                 
       sexual offense may be used as an  aggravating factor at                 
       sentencing.                                                             
                                                                               
  Co-chair  Pearce invited  Margot  Knuth, Assistant  Attorney                 
  General, Criminal Division, Department of  Law, to the table                 
  since Diane Schenker, Special Assistant to the Commissioner,                 
  Department of Corrections, had not arrived at the meeting.                   
                                                                               
  Ms. Knuth said  there was  an assumption being  made by  the                 
  Department  of Corrections  that  this aggravator  provision                 
  would be used in  extremely few cases and anticipated  a one                 
  percent incidence.  Because  of the sex offenders that  were                 
  already in custody, she explained  any impact at all carried                 
  with  it a  fiscal note.   HB 231  would pick  up situations                 
  where  a  sex  offender's prior  offense  was  either sexual                 
  assault (rape) or  sexual abuse  of a minor,  and either  of                 
                                                                               
                                                                               
  those would be used as an aggravating factor.                                
                                                                               
  At this time, Diane Schenker  joined the meeting.   Co-chair                 
  Pearce  explained  that  there  were  questions  about   the                 
  Department  of Correction's  fiscal note  and why it  was so                 
  late in coming.                                                              
                                                                               
  DIANE SCHENKER said that the fiscal note was  submitted last                 
  year when the  original bill included a mitigator  which was                 
  not in the bill  at present.  She  said that as long  as the                 
  aggravating factor was in the bill,  it must be assumed that                 
  sentences would be aggravated.                                               
                                                                               
  In answer  to Co-chair Frank, Ms. Schenker said an operating                 
  cost was included  because the bill aggravated  sex offenses                 
  which already generally resulted in a year of incarceration.                 
  The  actual  prisoner  would already  be  incarcerated  on a                 
  normal  sentence and if the aggravator went into effect, the                 
  sentence  would be lengthened at  some point.  She explained                 
  that  the  capital  expenses  were  put  into  FY95  because                 
  approximately five beds  would need  to be added.   A  rough                 
  estimate  was  made of  the  aggravate increase  and capital                 
  money was asked for up front.                                                
                                                                               
  In answer to Co-chair Pearce, Ms.  Schenker said she did not                 
  know why Section 3 with the mitigating language was removed.                 
  Ms.  Knuth said there  was a philosophical  objection to the                 
  language  that  said why  should  someone be  rewarded whose                 
  conduct was becoming more serious.  Co-chair Frank concurred                 
  with that opinion.                                                           
                                                                               
  In answer  to Co-chair  Pearce, Ms.  Schenker remarked  that                 
  even if the mitigating language was  put back into the bill,                 
  a zero fiscal note would not be applicable.                                  
                                                                               
  Co-chair Pearce said that she would  prefer to move the bill                 
  and  add back in the  mitigating language in Rules Committee                 
  or on the  floor if it would make a difference in the fiscal                 
  note.                                                                        
                                                                               
  After comments from Co-chair Frank, Ms. Schenker said, based                 
  on  the crime  legislation that  would pass  this year,  not                 
  including  the  third  time felony  DWI,  the  Department of                 
  Corrections  would  require  the  construction  of over  200                 
  additional  beds.     The  Department  did   consider  every                 
  conceivable  way  that  those  could  be housed  in  outside                 
  contract or less secure  beds.  The  beds needed for HB  231                 
  were on top of those additional 200 beds, none of which were                 
  funded.   In fact,  she said,  some existing  beds had  been                 
  threatened to be defunded.                                                   
                                                                               
  In answer to Senator Rieger, Ms.  Schenker said in regard to                 
  the expansion of the furlough policy, the department was not                 
  prohibited  from furloughing  presumptive  sentences or  any                 
                                                                               
                                                                               
  offender by crime offense.  The only restriction on furlough                 
  was that they had to have served a third  of their sentence,                 
  be within three years  of their release,  and able to be  in                 
  community custody.  At this time, the department had gone as                 
  far as it could in this area.  in fact, it had to pull  back                 
  in furloughing untreated sex offenders.                                      
                                                                               
  At Co-chair Pearce's request, Ms. Schenker agreed to provide                 
  the committee  with  a new  fiscal  note if  the  mitigating                 
  language was added back into HB 231.                                         
                                                                               
  Co-chair Pearce  announced  that HB  231  would be  HELD  in                 
  committee.                                                                   
                                                                               
  Scheduled but not heard:                                                     
                                                                               
  SENATE CS FOR CS FOR HOUSE BILL NO. 409(HES):                                
                                                                               
       An Act  relating to  the maximum  amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
       dependent children; proposing  a special  demonstration                 
       project  within  the program  of  aid to  families with                 
       dependent  children  and  directing  the Department  of                 
       Health and  Social Services  to seek  waivers from  the                 
       federal government to implement the project.                            
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was recessed at approximately 11:00 a.m.                         

Document Name Date/Time Subjects