Legislature(1993 - 1994)

05/08/1994 01:30 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                                   
                           May 8, 1994                                         
                            1:30 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-94, #91, Side 1 (100-end)                                                
  SFC-94, #91, Side 2 (end-550)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Drue  Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 1:30 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Pearce and Frank,  Senators Kelly,                 
  Kerttula, and Sharp were present.  Senators Rieger and Jacko                 
  arrived after the meeting was in progress.                                   
                                                                               
  ALSO ATTENDING:   Representative  Con Bunde,  sponsor of  HB
  334; Dean  J.  Guaneli, Chief,  Assistant Attorney  General,                 
  Legal  Services Section,  Criminal  Division, Department  of                 
  Law;  Diane  Schenker,  Special  Assistant,  Officer  of the                 
  Commissioner, Department of  Corrections; Darrel  Rexwinkel,                 
  Commissioner,  Department  of Revenue;  Gayle  R. Oba,  Vice                 
  Chair, Alaska State Pension Investment  Board; Senator Robin                 
  Taylor, sponsor of SB 223; Diane Kaplan, Alaska Public Radio                 
  Network;  David  Harding,  aide to  Representative  MacLean,                 
  sponsor of  HB 212;  Virginia Stonkus,  fiscal analyst,  and                 
  Mike   Greany,   Director,  Legislative   Finance  Division;                 
  representative of the media, and  aides to committee members                 
  and other members of the legislature.                                        
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SSSB 223:           An  Act  relating  to   credits  against                 
                      certain  taxes   for  contributions   to                 
                      certain  public  educational  radio  and                 
                      television  networks  and  stations; and                 
                      providing for an effective date.                         
                                                                               
                      Senator Robin Taylor, sponsor of SB 223,                 
                      testified in support of the bill.  Diane                 
                      Kaplan,  Alaska  Public  Radio  Network,                 
                      testified  in  support  of  SB  223  and                 
                      answered questions  from the  committee.                 
                      Senator  Kerttula   proposed  conceptual                 
                      amendment 1.   Amendment 1  was ADOPTED.                 
                      Co-chair Pearce clarified amendment 1 by                 
                      stating that the University would remain                 
                      the  same  and  corporations   would  be                 
                                                                               
                                                                               
                      allowed  only  one  $50,000 tax  credit.                 
                      Senator  Kelly  proposed amendment  2 to                 
                      include   the   Iditarod   Trail   Race.                 
                      Amendment 2 FAILED.  CSSSSB 223(FIN) was                 
                      REPORTED  out of  committee  with a  "do                 
                      pass,"  and zero  fiscal  notes for  the                 
                      Department      of      Revenue      and                 
                      Administration.                                          
                                                                               
  SCSCSHB 212(JUD):   An   Act  relating   to   a  factor   in                 
                      aggravation of the presumptive term of a                 
                      criminal sentence,  and prohibiting  the                 
                      referral   of   a   sentence  based   on                 
                      application   of   that   factor  to   a                 
                      three-judge  sentencing   panel  as   an                 
                      extraordinary circumstance.                              
                                                                               
                      David  Harding,  aide  to Representative                 
                      MacLean, sponsor of HB 212, testified in                 
                      support  of  HB  212.   Diane  Schenker,                 
                      Special   Assistant,   Officer   of  the                 
                      Commissioner, Department of Corrections,                 
                      spoke  to   the  fiscal  note,   to  the                 
                      increasing number of prisoners,  and the                 
                      non-funding of crime bills over the past                 
                      years  that  effected the  Department of                 
                      Corrections.     SCSCSHB  212(JUD)   was                 
                      REPORTED   out    of   committee    with                 
                      individual  recommendations,   and  zero                 
                      fiscal  notes  for  the  Departments  of                 
                      Corrections,    Public   Safety,    Law,                 
                      Administration  and  the   Alaska  Court                 
                      System (the  Department of  Correction's                 
                      fiscal note showed a capital expense  of                 
                      $600.0).                                                 
                                                                               
  CSHB 334(FIN) am:   An Act relating to  criminal sentencing;                 
                      relating  to  the availability  for good                 
                      time credit for  offenders convicted  of                 
                      certain first  degree murders;  relating                 
                      to  definite  30-  to  99-year terms  of                 
                      imprisonment for offenders  convicted of                 
                      an unclassified  or class A  felony that                 
                      is  a  homicide,   assault,  kidnapping,                 
                      sexual offense, or robbery and who  have                 
                      at least  two prior most  serious felony                 
                      convictions;  relating  to  parole, good                 
                      time  credit,  pardon,   commutation  of                 
                      sentence, modification  or reduction  of                 
                      sentence,   reprieve,   furlough,    and                 
                      service  of  sentence at  a correctional                 
                      restitution center for offenders with at                 
                                                                               
                                                                               
                      least   three   most    serious   felony                 
                      convictions;   defining  `most   serious                 
                      felony'  as an  unclassified or  class A                 
                      felony  offense  that  is   a  homicide,                 
                      assault, kidnapping, sexual  offense, or                 
                      robbery or  an attempt or  conspiracy to                 
                      commit, or criminal solicitation  of, an                 
                      unclassified or class A felony that is a                 
                      homicide,  assault,  kidnapping,  sexual                 
                      offense, or robbery; and amending Alaska                 
                      Rule of Criminal Procedure 35.                           
                                                                               
                      Representative Con Bunde, sponsor  of HB
                      334, testified  in support of  the bill.                 
                      Dean   J.   Guaneli,   Chief,  Assistant                 
                      Attorney    General,    Legal   Services                 
                      Section,  Criminal Division,  Department                 
                      of  Law, also  spoke  in support  of the                 
                      bill.       Diane   Schenker,    Special                 
                      Assistant, Officer of  the Commissioner,                 
                      Department of Corrections, spoke  to the                 
                      zero fiscal note in  that the Department                 
                      of  Corrections  would  not be  effected                 
                      until  the  15th  or 16th  year.    CSHB
                      334(FIN)   am   was   REPORTED  out   of                 
                      committee with  a  "do  pass,",  a  zero                 
                      fiscal  note  for   the  Department   of                 
                      Corrections,  and  fiscal notes  for the                 
                      Department   of  Administration   (UPA)-                 
                      $181.1, PDA-$207.3, Alaska  Court System                 
                      - $78.1, and for the Department of Law -                 
                       $112.6.                                                 
                                                                               
  SCSCSHB 494(STA):   An Act changing the Alaska State Pension                 
                      Investment Board to  the Alaska  Pension                 
                      Investment Authority and relating to the                 
                      authority;   and   providing    for   an                 
                      effective date.                                          
                                                                               
                      Darrel      Rexwinkel,     Commissioner,                 
                      Department of Revenue, and Gayle R. Oba,                 
                      Vice   Chair,   Alaska   State   Pension                 
                      Investment Board, spoke to HB 494 and to                 
                      the fiscal  notes.  Discussion  was held                 
                      regarding fiscal notes  and amendment  2                 
                      which was ADOPTED in the previous Senate                 
                      Finance  meeting.   A motion  to rescind                 
                      amendment 2 FAILED.  Amendments  3 and 4                 
                      by Senator Rieger were ADOPTED.  SCSCSHB
                      494(STA) was REPORTED  out of  committee                 
                      with individual recommendations,  a zero                 
                      fiscal  note  for   the  Department   of                 
                      Administration, and fiscal notes for the                 
                                                                               
                                                                               
                      Department  of  Revenue  for $497.0  and                 
                      $398.5.                                                  
                                                                               
  CS FOR HOUSE BILL NO. 334(FIN) am:                                           
                                                                               
       An Act relating to criminal sentencing; relating to the                 
       availability  for   good  time  credit   for  offenders                 
       convicted of certain first degree murders;  relating to                 
       definite  30-  to  99-year terms  of  imprisonment  for                 
       offenders  convicted  of  an  unclassified  or  class A                 
       felony that is a  homicide, assault, kidnapping, sexual                 
       offense,  or robbery  and who have  at least  two prior                 
       most serious  felony convictions;  relating to  parole,                 
       good  time  credit,  pardon, commutation  of  sentence,                 
       modification  or  reduction   of  sentence,   reprieve,                 
       furlough,  and service  of sentence  at a  correctional                 
       restitution center  for offenders with  at least  three                 
       most serious felony convictions; defining `most serious                 
       felony' as an  unclassified or  class A felony  offense                 
       that  is   a  homicide,  assault,   kidnapping,  sexual                 
       offense,  or  robbery or  an  attempt or  conspiracy to                 
       commit, or criminal solicitation of, an unclassified or                 
       class A felony that is a homicide, assault, kidnapping,                 
       sexual offense, or robbery; and amending Alaska Rule of                 
       Criminal Procedure 35.                                                  
                                                                               
  Co-chair Pearce invited Representative Con Bunde, sponsor of                 
  HB 334, to speak to the bill.                                                
                                                                               
  REPRESENTATIVE BUNDE  said that HB 334 had  been reported on                 
  in the  media but  wanted to  point out  that  the bill  was                 
  different than the press presented it.  The bill was crafted                 
  narrowly  to  address  only  repeat  offenders  that  commit                 
  serious   crimes.     Accordingly   to  the   Department  of                 
  Corrections, this  bill would  impact approximately  3 to  5                 
  individuals  a year.   If  an individual  had  committed two                 
  serious  felonies,  the  prosecutor  then  could  choose  to                 
  prosecute under the provisions of HB 334.                                    
                                                                               
  Representative Bunde wanted  the committee to know  that, at                 
  present, an individual  convicted of a third  serious felony                 
  would spend between 12 to 15 years in jail.  With this bill,                 
  an individual would spend between 30 to 99, with a provision                 
  that said  after half  a sentence was  served, the  Governor                 
  could waive the  rest of  the sentence if  the prisoner  was                 
  geriatric and no longer a threat to society.  He noted  that                 
  the fiscal notes were  a concern but the rationale  was that                 
  these  individuals would  be in the  system anyway  and this                 
  bill could  serve as a  deterrent.   He felt money  would be                 
  saved by not having to arrest  and try these individuals for                 
  the fourth, fifth, etc. time, and  he asked the committee at                 
  what cost did the state place personal loss to victims.                      
                                                                               
                                                                               
  Representative Bunde asked Dean J. Guaneli, Chief, Assistant                 
  Attorney General, Legal Services Section, Criminal Division,                 
  Department of Law, to join him at the table.                                 
                                                                               
  DEAN  GUANELI said  the  department supported  HB  334.   He                 
  agreed that this version of the bill was much more narrow in                 
  the number of crimes it covered, the way it considered prior                 
  convictions, the way  it gave discretion to  the prosecutor,                 
  and the type of sentence that could be imposed.  He  felt it                 
  was a more narrow bill than any across the country.                          
                                                                               
  In answer to  Co-chair Frank, Mr. Guaneli  described serious                 
  crimes  as  homicides,  rape,  murder,  manslaughter,  armed                 
  robbery, felony assault, shootings, and serious child abuse.                 
  It did not include  such crimes as theft, burglary,  or drug                 
  dealing.                                                                     
                                                                               
  Senator Kerttula pointed out this bill was not an attempt at                 
  prevention but it  just got the  bad guys "off the  street."                 
  Mr.  Guaneli   said  that   a  sentence   could  involve   a                 
  psychiatrist,  or  a lesser  sentence  could be  imposed for                 
  vehicular manslaughter  since the prosecution would be given                 
  such discretion in the bill.                                                 
                                                                               
  In  answer   to  Co-chair  Frank   regarding  fiscal  notes,                 
  Representative Bunde  said that  public defenders  felt more                 
  cases would be  heard because of HB  334.  He felt  that was                 
  erroneous.   Mr. Guaneli believed  the potential of going to                 
  jail  for  a longer  period of  time  made the  tendency for                 
  individuals to fight harder, and the department estimated at                 
  least work for one more attorney in their fiscal note.                       
                                                                               
  Senator Sharp observed that if an individual was facing life                 
  imprisonment that they may leave  the state.  Representative                 
  Bunde  said  that  in some  instances  individuals  could be                 
  counseled  out  of  a life  of  crime  because  of the  long                 
  sentence they would face.  Mr. Guaneli said that individuals                 
  that commit such felonies were out  of control and unable to                 
  conform to what  society wanted  regardless of the  penalty,                 
  and those were  the ones that  were better off behind  bars.                 
  Senator Sharp  said that  some money  must be  saved by  the                 
  absence of the "revolving door."                                             
                                                                               
  Senator Kerttula asked if offenders may become more violent,                 
  for example,  in  a  sexual  assault,  if  they  knew  their                 
  sentence would  be more severe  or the same as  murder.  Mr.                 
  Guaneli said it  was hard to assess  that sort of thing.   A                 
  third time rape offense  brought a 25 year sentence  now and                 
  with this bill it would  range from 30 to 99 years.   He did                 
  not feel that those offenders  were thinking about sentences                 
  when they were  being violent.   Senator Kerttula  commented                 
  that the state did not do much for prevention.                               
                                                                               
  DIANE   SCHENKER,   Special   Assistant,  Officer   of   the                 
                                                                               
                                                                               
  Commissioner,  Department  of  Corrections,  said  that  the                 
  effect of HB  334 would not be  felt for 10 to  15 years and                 
  there was no way to reflect that in a fiscal note.                           
                                                                               
  Senator  Kelly MOVED  for passage  of CSHB 334(FIN)  am from                 
  committee  with individual  recommendations.   No  objection                 
  being heard,  CSHB 334(FIN)  was REPORTED  out of  committee                 
  with a  "do pass," a zero fiscal  note for the Department of                 
  Corrections, and fiscal notes for the following departments:                 
  Department of  Administration (OPA)  -$181.1; Department  of                 
  Administration (PDA) - $207.3; Alaska  Court System - $78.1;                 
  and the Department  of Law -  $112.6.  Co-chairs Pearce  and                 
  Frank, Senator Kerttula, Kelly, Sharp and Jacko signed a "do                 
  pass."                                                                       
                                                                               
  SENATE CS FOR CS FOR HOUSE BILL NO. 494(FIN):                                
                                                                               
       An  Act changing  the Alaska  State Pension  Investment                 
       Board  to the  Alaska Pension Investment  Authority and                 
       relating  to  the  authority;  and   providing  for  an                 
       effective date.                                                         
                                                                               
  Co-chair  Pearce  announced  that  HB  494  was  before  the                 
  committee.    She reviewed  the  fact that  amendment  1 had                 
  FAILED and amendment 2 was ADOPTED in a prior meeting.                       
                                                                               
  In answer  to Senator  Kerttula regarding  amendment 2,  Co-                 
  chair Pearce pointed out that Senator Rieger's view was that                 
  there was not a  sufficient labor pool in Juneau  of skilled                 
  people who were not already either working for the Permanent                 
  Fund or other  funds from  which to choose  a new  executive                 
  director.   Senator Kelly  said the  same argument  could be                 
  used for moving the Permanent Fund.                                          
                                                                               
  Co-chair Frank  said  he did  not  support amendment  2  and                 
  opposed  putting that constraint  on the  Pension Investment                 
  Authority.   He  then asked  why the  fiscal note  contained                 
  general fund money and not all pension fund money.                           
                                                                               
  DARREL REXWINKEL, Commissioner, Department of Revenue, spoke                 
  on behalf of the  board and as Commissioner of  Revenue, and                 
  explained  the  complicated   fiscal  notes  regarding   the                 
  reorganization of the Treasury Division  and creation of the                 
  Pension  Investment Authority.    Co-chair  Frank asked  the                 
  department  to redo the existing  fiscal notes so they could                 
  be easily understood.                                                        
                                                                               
  In returning to discussion over  amendment 2, Senator Rieger                 
  recalled a  problem in  1989 or  so when  the Department  of                 
  Revenue  was  sorely lacking  in staff.    There was  no one                 
  unemployed in Juneau that  could fill those vacancies.   The                 
  solution was that the department robbed two top employees of                 
  the Permanent  Fund.   He did not  want that scenario  to be                 
                                                                               
                                                                               
  repeated  with this  new  organization.    Senator  Kerttula                 
  opposed moving the  Authority because of information  he had                 
  received regarding the inter-relationships of the trusts and                 
  in-house,  multiple  units  involving   both  organizations.                 
  Senator  Rieger  reiterated  his  feelings  that,  with  the                 
  addition of eight more employees which included an executive                 
  director, and drawing on the same  talent pool, it could not                 
  offer  improved management to the Authority.   He would also                 
  like to restrict the area to Alaska in amendment 2.                          
                                                                               
  GAYLE R. OBA,  Vice Chair,  Alaska State Pension  Investment                 
  Board, asked to speak on amendment 2.                                        
                                                                               
  Senator Kerttula MOVED to rescind  the adoption of amendment                 
  2.                                                                           
                                                                               
  Ms.  Oba agreed  that  it did  not make  sense  to move  the                 
  Pension  Fund   operation  to   Anchorage.     It  was   her                 
  understanding that it  would be easier to move the Permanent                 
  Fund to  Anchorage.  Because  of the degree  of coordination                 
  between the Department of Revenue regarding SBS and deferred                 
  compensation,  it would  not  be  an  efficient move.    She                 
  suggested   that  during  1989,   the  situation   was  much                 
  different.   Since then,  Wall Street  alone had  lost about                 
  50,000 white collar positions.  Now,  if the State recruited                 
  for new  positions, she  believed well  qualified candidates                 
  would be willing to move even to Juneau.                                     
                                                                               
  End SFC-93 #91, Side 1                                                       
  Begin SFC-93 #91, Side 2                                                     
                                                                               
  Senator Rieger agreed  to consider a delayed  effective date                 
  on the bill but would not  support the bill unless there was                 
  a way to access better management for the Pension Fund.                      
                                                                               
  Co-chair Pearce called for a show of hands and the motion to                 
  rescind the adoption of amendment 2 FAILED (Senator Kerttula                 
  was  in  support of  the  motion, Co-chair  Pearce, Senators                 
  Kelly, Sharp, Rieger and Jacko were opposed).                                
                                                                               
  Senator  Rieger  MOVED  amendment  3  that added  the  words                 
  "Alaskan" before the words "metropolitan  area" in amendment                 
  2.  Co-chair Pearce called for a show of hands and amendment                 
  3 was  ADOPTED on a  vote of 5  to 1 (Co-chairs  Pearce, and                 
  Frank,  Senators  Kelly,  Sharp, Rieger  and  Jacko  were in                 
  support.  Senator Kerttula was opposed.).                                    
                                                                               
  Senator Rieger then  MOVED amendment 4 making  the effective                 
  date for Section 3, July 1, 1995.  No objection being heard,                 
  amendment 4 was ADOPTED.                                                     
                                                                               
  Senator Jacko  MOVED for  passage of  SCSCSHB 494(FIN)  from                 
  committee with  individual recommendations.   Senator  Kelly                 
  OBJECTED.  Co-chair  Pearce called for  a show of hands  and                 
                                                                               
                                                                               
  the motion to MOVE the bill from committee carried on a vote                 
  of 4 to 3 (Co-chairs Pearce,  and Frank, Senators Rieger and                 
  Jacko were in  support, Senators Kerttula, Kelly,  and Sharp                 
  were  opposed).    SCSCSHB  494(FIN)  was  REPORTED  out  of                 
  committee  with individual  recommendations,  a zero  fiscal                 
  note for the Department of  Administration, and fiscal notes                 
  for the Department  of Revenue for  $497.0 and $398.5.   Co-                 
  chairs  Pearce   and  Frank   signed  "no   recommendation."                 
  Senators  Rieger  and  Jacko  signed  "do pass."    Senators                 
  Kerttula, Kelly and Sharp signed "do not pass."                              
                                                                               
  SENATE CS FOR CS FOR HOUSE BILL NO. 212(JUD):                                
                                                                               
       An  Act relating  to  a factor  in  aggravation of  the                 
       presumptive   term   of   a   criminal  sentence,   and                 
       prohibiting  the  referral  of   a  sentence  based  on                 
       application of that factor to a three-judge  sentencing                 
       panel as an extraordinary circumstance.                                 
                                                                               
  Co-chair   Pearce    invited   David   Harding,    aide   to                 
  Representative MacLean, sponsor of HB 212, to the table.                     
                                                                               
  DAVID HARDING said the intent of the bill was to insure that                 
  the serious sentences for the crime  of sexual abuse against                 
  a minor were levied when  the offender was in a  position of                 
  authority over  the minor.   The bill  accomplished this  by                 
  adding  sexual  abuse  of  a  minor   crime  to  a  list  of                 
  aggravators considered at sentencing.   Section 2 also added                 
  this  to a list  of crimes that  could not be  referred to a                 
  three-judge panel.  The reasoning was that an offender  that                 
  was in  an established trust  relationship with a  minor and                 
  then breached that trust, deserved stronger penalties than a                 
  stranger that sexually abused  a child.  It was  much harder                 
  for a child  to defend  him/herself physically and  verbally                 
  from someone in  a position  of authority than  it was  with                 
  someone that  the child did not know.  It was the vulnerable                 
  nature  of  the  relationship  that  warranted  more  severe                 
  punishment.  He said that the  Department of Law did support                 
  HB  212 but Margo  Knuth was not  available to  speak to the                 
  bill.  He went on to say that it would effect a small number                 
  of cases.  He gave child care workers or coaches as examples                 
  of persons in authority.                                                     
                                                                               
  Discussion followed by Co-chair Frank, Senators Kerttula and                 
  Rieger regarding  fiscal notes, and  the continuing practice                 
  of passing legislation without funding it.                                   
                                                                               
  Diane   Schenker,   Special   Assistant,   Officer  of   the                 
  Commissioner, Department  of Corrections,  reported that  in                 
  the past the  department had published zero  fiscal notes on                 
  all crime legislation  because it was difficult  to estimate                 
  the  impact of the legislation.   According to a legislative                 
  research  10-year  study,  prison   population  was  on  the                 
                                                                               
                                                                               
  increase  and continually had not  been funded.  At present,                 
  there  were about  200+ more  prisoners in  the system  that                 
  housing had not been funded for either in the capital or the                 
  operating budget.   The  overcrowding was  in severe  crisis                 
  this  year and  the department  had decided to  reflect true                 
  fiscal impact on  all fiscal notes.   She had been  informed                 
  that those fiscal notes would not be funded  but she knew no                 
  other way to reflect on-going costs.                                         
                                                                               
  Mr. Harding pointed  out that HB 212  would only add  to the                 
  end of the individual's sentence.   Ms. Schenker agreed that                 
  it would not effect FY95 but  for the record, the department                 
  wanted to request the capital expense in FY95.                               
                                                                               
  Co-chair   Frank  agreed   that  the   department   was  not                 
  inappropriate in their presentation of the  fiscal note.  He                 
  urged that  the fiscal note be  sent with the bill  with the                 
  understanding it would probably not  be funded in conference                 
  committee.                                                                   
                                                                               
  Co-chair Frank MOVED  for passage  of SCSCSHB 212(JUD)  from                 
  committee  with  individual  recommendation.   No  objection                 
  being heard, SCSCSHB 212(JUD) was  REPORTED out of committee                 
  with individual  recommendations, zero fiscal notes  for the                 
  Departments of  Administration, Law, Public  Safety, and the                 
  Alaska  Court  System,  and  a  zero  fiscal  note  for  the                 
  Department of Corrections with a  capital expense of $600.0.                 
  Co-chair Pearce, Senators Jacko, and Kelly signed "do pass."                 
  Co-chair Frank, Senators Rieger,  Kerttula and Sharp  signed                 
  "no recommendation."                                                         
                                                                               
  SPONSOR SUBSTITUTE FOR SENATE BILL NO. 223:                                  
                                                                               
       An Act relating  to credits  against certain taxes  for                 
       contributions to  certain public educational  radio and                 
       television networks and stations; and providing  for an                 
       effective date.                                                         
                                                                               
  Co-chair Pearce invited Senator Robin Taylor to the table to                 
  speak to SB 223.                                                             
                                                                               
  SENATOR ROBIN  TAYLOR, sponsor  of SB  223, said  that in  a                 
  public survey, 65.4 percent of the people surveyed said they                 
  would support a  tax credit for corporations  who contribute                 
  to  public  radio.    The  same   credit  was  used  by  the                 
  University.    He  felt  this  was  a  way  to  wean  public                 
  broadcasting  from the state  budget and  for them  to raise                 
  money on their  own.  He  observed their budget had  already                 
  been reduced 35 percent.                                                     
                                                                               
  Co-chair   Pearce   asked  how   he   differentiated  public                 
  broadcasting  from all  the  other non-profit  programs that                 
  received state grants  money.  She  felt that this bill  put                 
                                                                               
                                                                               
  Public  Radio  on  a  different  level  than,  for  example,                 
  domestic violence shelters.                                                  
                                                                               
  DIANE KAPLAN,  Alaska Public  Radio Network,  spoke to  this                 
  amendment.   She  anticipated 12  to 15 corporations  in the                 
  state would take advantage of this tax credit.  She felt the                 
  effect on  the general  fund would  be quite  minimal.   The                 
  Department of  Revenue had provided  a zero fiscal  note for                 
  two years.   She  listed the  total effect  of the  existing                 
  University tax credit  to be about  $600,000.  The goal  for                 
  Public  Radio  for  the  first year  was  $100,000  for  the                 
  endowment  trust fund.   In answer  to Co-chair  Pearce, Ms.                 
  Kaplan said  that about  half of  the contributors  targeted                 
  were not contributing currently.                                             
                                                                               
  Senator  Kerttula MOVED conceptual  amendment 1 that removed                 
  "(2) 100 percent of the next $100,000 of contributions" from                 
  each  section but  not from  the  University.   No objection                 
  being heard, amendment 1 was ADOPTED.                                        
                                                                               
  Senator Kelly voiced his opinion  that public television was                 
  no longer of value  to the state of Alaska.   He felt public                 
  radio still served the state, especially in the rural areas.                 
  He  called  the  fiscal notes  following  this  bill "bogus"                 
  pointing  out  that  every  dime  that  the  public  network                 
  received came directly out of the state general fund.                        
                                                                               
  Senator  Kelly  MOVED amendment  2  to include  the Iditarod                 
  Trail Race in  SB 223.   Senator Jacko  OBJECTED.   Co-chair                 
  Pearce called for a show of hands and Amendment 2  FAILED on                 
  a  vote of 4 to 3 (Senators Kerttula, Rieger, and Kelly were                 
  in support, Co-chairs  Pearce and Frank, Senators  Sharp and                 
  Jacko were opposed).                                                         
                                                                               
  After comments  by Senator  Sharp, Co-chair  Pearce made  it                 
  clear that an  organization could  receive only one  $50,000                 
  tax credit.                                                                  
                                                                               
  Senator  Jacko  MOVED for  passage  of CSSSSB  223(FIN) from                 
  committee with individual recommendations.   CSSSSB 223(FIN)                 
  was REPORTED out  of committee  with a "do  pass," and  zero                 
  fiscal  notes  for  the  Departments of  Administration  and                 
  Revenue. Co-chairs Pearce, Frank,  Senators Kerttula, Kelly,                 
  Rieger, Sharp and Jacko signed "do pass."                                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was recessed at approximately 2:45 p.m.                          

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