Legislature(1995 - 1996)

04/25/1995 09:25 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    SENATE FINANCE COMMITTEE                                   
                         APRIL 25, 1995                                        
                            9:25 A.M.                                          
  SFC-95, #42, Side 1 (000-575)                                                
  SFC-95, #42, Side 2 (575-end)                                                
  SFC-95, #44, Side 1 (000-400)                                                
  CALL TO ORDER                                                                
  Senator  Rick  Halford, Co-chair,  convened  the meeting  at                 
  approximately 9:25 a.m.                                                      
  Co-chairs Halford  and Frank, along with  Senators Phillips,                 
  Sharp, Donley, Rieger and Zharoff were present.                              
  Also  Attending: Senator  Miller;  Senator Leman;  Catherine                 
  Reardon, Director, Division of  Occupational Licensing, Dept                 
  of Commerce  and  Economic Development;  Jay  Livey,  Deputy                 
  Commissioner,  Dept   of  Health  &  Social   Services;  Bob                 
  Rubadeau,  Dept  of  Administration;  Alison  Elgee,  Deputy                 
  Commissioner, Dept  of Administration; Bruce Geron,  Dept of                 
  Fish and  Game; Joe  McCormick, Executive  Director for  the                 
  Commission  on  Postsecondary  Education;  Elmer  Lindstrom,                 
  Special Assistant to  the Governor,  Department of Health  &                 
  Social Services; Harlan  Knudson, President, Alaska Hospital                 
  and Nursing Home Association;  Susan Taylor, Fiscal Analyst,                 
  Legislative  Finance; Benjamin  Brown,  Legislative Aide  to                 
  Representative Toohey;  Kip Knudson, Aide  to Representative                 
  Hanley; Jackie Damon, Division of Family and Youth Services;                 
  and Sherrie Goll, Alaska Women's Lobby.                                      
       SB 124 HUMAN SERVICES COMMUNITY MATCHING GRANTS                         
       Senator  Miller  gave testimony  in  support of  SB 124                 
  which was                                                                    
       REPORTED   OUT  of   committee   with   a   "do   pass"                 
  recommendation, and      a zero fiscal note from the Dept of                 
  Health & Social Services.                                                    
       HB 124 ABOLISH BD OF NURSING HOME ADMINISTRATORS                        
       Discussion  was  had  by  Catherine  Reardon,  Benjamin                 
       Kip Knudson, Harlan Knudson, and Jay Livey. SCSCSHB 124                 
       REPORTED   OUT   of   committee  with   a   "do   pass"                 
  recommendation, and         a fiscal note  from the  Dept of                 
  Commerce and Economic              Development, $8.2.                        
       SB 142 HUMAN RESOURCE INVESTMENT COUNCIL                                
       Bob  Rubadeau, Special  Assistant to the  Lt. Governor,                 
       in support of the bill. CSSB  142 (STA) REPORTED OUT of                 
           committee with  a  "do pass"  recommendation and  7                 
  fiscal notes       (see details in minutes, page 5).                         
       SB 123 POSTSECONDARY EDUCATION PROGRAMS                                 
       Testimony  was   given  by  Joe   McCormick,  Executive                 
  Director for      the Commission on Postsecondary Education.                 
  Amendment 2 and 3                                                            
       was  ADOPTED. Conceptual  Amendment  involving a  title                 
       was  ADOPTED.   CSSB  123  (FIN)  was REPORTED  OUT  of                 
  committee          with a "do pass" recommendation,  and two                 
  zero fiscal notes                                                            
       from the Dept  of Education (Student Loans  and Program                 
       SB 105 PARENTAL CONSENT BEFORE MINOR'S ABORTION                         
       Senator  Leman  presented testimony  to  the committee.                 
       Phillips moved to adopt an amendment changing age 18 to                 
  age         16. Amendment  was ADOPTED  and invoked  a title                 
  change. Senator                                                              
       Rieger  moved  to adopt  an  amendment.   Amendment was                 
  ADOPTED         (see  minutes for details).  CSSB  105 (FIN)                 
  REPORTED OUT of                                                              
       committee with 4 fiscal notes (see minutes for details,                 
       page 9).                                                                
       SB  81 CLASSIFYING WOLF AS PREDATOR                                     
       Senator Sharp gave  testimony.  A Conceptual  Amendment                 
       ADOPTED.   CSSB 81 (FIN)  was REPORTED OUT of committee                 
       individual recommendations and a fiscal note from the                   
       Dept of Fish and Game.                                                  
       SENATE BILL NO. 124                                                     
       "An  Act  relating  to  the  human  services  community                 
  matching       grant program; and providing for an effective                 
  Senator  Miller testified that  the Human Services Community                 
  Matching Grants Program was created to assist municipalities                 
  in providing  human services via  local non-profit agencies.                 
  The statute  was structured to increase the local match each                 
  year   for  three   consecutive  years  beginning   at  10%,                 
  increasing the next  year to  30%, and leveling  out on  the                 
  third (FY96) and subsequent years at 50%.  Unfortunately the                 
  50%  match will be extremely difficult if not impossible for                 
  most  local  governments  to  accomplish  due  to  declining                 
  municipal assistance and revenue sharing  as well as reduced                 
  federal funds.  In addition,  non profits are struggling  to                 
  obtain contributions at levels similar  to those received in                 
  past  years.    It  should  also  be noted  that  all  other                 
  state/municipal matching grant programs require a 30% match.                 
  This legislation is  modeled after  SB 368  from 1994  which                 
  received broad support and passed both the House (Y31-N5-E1-                 
  A3) and Senate (Y13-N3-E1-A3) but was later vetoed.                          
  Senator  Zharoff  asked  for  an  example.   Senator  Miller                 
  referred  to  the  "History  of   Human  Services  Community                 
  Matching  Grant"  chart  which compares  1993  through 1995.                 
  (attached to minutes)                                                        
  Senator Rieger MOVED  to adopt SB  124 with an  accompanying                 
  zero fiscal note  and with  individual recommendations.   No                 
  objections being heard, SB 124 was REPORTED OUT of committee                 
  with a  zero fiscal note  from the  Dept of Health  & Social                 
  Services and a  "do Pass" from Co-chairs  Halford and Frank,                 
  along  with  Senators Rieger  and  Sharp.   Senator Phillips                 
  recommended "do not  pass", and Senators Donley  and Zharoff                 
  signed "no recommendation".                                                  
       HOUSE BILL NO. 124                                                      
       "An Act extending  the termination date of the Board of                 
  Nursing         Home  Administrators; and  providing  for an                 
  effective date."                                                             
  Senator Rieger MOVED to adopt CSHB  124 (FIN) "G" version as                 
  a working draft.  No objection being heard it was ADOPTED.                   
  Benjamin Brown, Legislative Aid to Rep. Toohey was  asked to                 
  give  testimony  on  the  original  bill and  the  sponsor's                 
  statement. He stated that HB 124 is introduced to extend the                 
  sunset date  of the  Board of  Nursing Home  Administrators,                 
  which  must  exist  according  to  federal regulation  as  a                 
  condition for the  state's receipt of Medicaid  funds. After                 
  the  initial  bill was  introduced,  the State  Hospital and                 
  Nursing Home Administration  decided on  its own, that  they                 
  did not want  a Board  of Nursing Home  Administrators.   It                 
  would be easier to abolish the Board and transfer its duties                 
  to the Division of Occupational Licensing.  The Division was                 
  happy with the proposed change which  evolved into a CS from                 
  the H&SS Committee.  The House Finance Committee changed the                 
  bill further,  giving  the Division  the ability  to deny  a                 
  license  to  a  Nursing  Home  Administrator  who  falsifies                 
  information on the application.  There was a loophole in the                 
  statute, meaning  they would have  had to give  the license,                 
  and  then  take  it  back  if   they  found  out  there  was                 
  falsification.   The bill is needed  because without it, the                 
  State  will  be at  risk at  not  receiving $157  million in                 
  Medicaid  in  the  coming  fiscal  year,  from  the  Federal                 
  Department of Health. The moratorium  on long term care beds                 
  is a  means  of controlling  the  growth of  the  facilities                 
  component of the Medicaid budget.                                            
  Catherine  Reardon,    Director,  Division  of  Occupational                 
  Licensing,  Dept   of  Commerce   &  Economic   Development,                 
  testified that  as of  July 1st,  the Board  will go  out of                 
  existence  if  this   legislation  does   not  pass.     The                 
  elimination of the Board and the change to have the Division                 
  directly   manage   the   licensing   program,   will   save                 
  approximately  $1.0  to $1.3  in  travel costs.  The primary                 
  advantage is that  it is much easier to issue  licenses in a                 
  timely fashion.                                                              
  Jay  Livey,  Deputy Commissioner,  Dept  of Health  & Social                 
  Services,  addressed Section 14:  Moratorium on Nursing Home                 
  Certificates of Need.   The department  is in favor of  this                 
  section.   Nursing home  care is  expensive. The  department                 
  spent  $50  million  on  nursing  home  care.    A  two-year                 
  moratorium will  give  the State  a chance  to develop  less                 
  expensive alternatives  that are  currently being  developed                 
  through the  home and community  based waiver program.   The                 
  moratorium allows for more services at less cost.                            
  Kip Knutson, Aid to Rep. Hanley said the state  pays for 87%                 
  of the long term  beds through the Medicaid program.   Their                 
  addition drives  the cost  of Medicaid  up.  Cost  increases                 
  amount to  10-15% each  year in  the Medicaid  budget.   The                 
  Certificate of Need process is broken.  The department needs                 
  attention before new beds are added.                                         
  Harlan Knudson, President, Alaska Hospital  and Nursing Home                 
  Association, spoke in  favor of the  original version of  HB
  124 and  speaking in opposition  to CSHB  124 as far  as the                 
  moratorium  on nursing home  beds.  There  is agreement with                 
  the original  HB 124 and  the intent.   With  regard to  the                 
  moratorium on  nursing home  beds, there  is agreement  that                 
  nursing  home  care  is  very  expensive.    There  is  also                 
  agreement where there are situations  where very frail, ill,                 
  or  disabled  individuals,   who  need   home  care.     The                 
  Certificate of Need determines who needs  how many beds.  He                 
  asked to move forward with the  Certificate of Need process.                 
  It has all  the tools  needed to stop  unnecessary beds.  He                 
  stated that community based care will increase costs because                 
  many people will never go to a nursing home since the family                 
  is  currently  taking  the  extra effort  to  care  for  the                 
  individual.  The non-facility portion of the budget reflects                 
  a higher rate, meaning a new level of service to a new level                 
  of  clients.   There  will  still  be a  need  for increased                 
  nursing beds.   There will  be an increase  in the  Medicaid                 
  Program for community based care.                                            
  Senator  Rieger inquired as to the percentage of people that                 
  could  be  placed in  the  community  based  care  that  are                 
  currently receiving  nursing beds  within the  institutions?                 
  Mr.  Knudson  responded  that  he   could  not  answer  that                 
  Senator  Sharp  MOVED  to  adopt  CSSB 124  with  individual                 
  recommendations and a zero fiscal note.  No objections being                 
  heard, CSSB 124  was REPORTED OUT  of committee with a  zero                 
  fiscal note from the Dept of Health &  Social Services and a                 
  "do  Pass"  from  Co-chairs Halford  and  Frank,  along with                 
  Senators Rieger and Sharp.  Senator Phillips recommended "do                 
  not  pass".    Senators  Donley   and  Zharoff  signed,  "no                 
  The meeting RECESSED at approximately 10:00 a.m.                             
  The meeting RECONVENED at approximately 2:45 p.m.                            
  Co-chair  Halford, along with  Senators Rieger, Zharoff, and                 
  Sharp were present.                                                          
       SENATE BILL NO. 142                                                     
       "An   Act  establishing   the  Alaska   Human  Resource                 
  Investment                Council  and  transferring certain                 
  functions  of  other  entities             to  the  council;                 
  establishing  a planning mechanism for            employment                 
  training  and other human  resource investment needs;                        
  and providing for an effective date."                                        
   Bob Rubadeau, Special Assistant to the Lieutenant Governor,                 
  testified that the  bill primarily  has 40 council  members,                 
  who  are now serving  on three separate  state councils that                 
  deal with  federally funded  projects in  the state  dealing                 
  with  vocational,  education,  and job  retraining.    These                 
  councils meet approximately  12 times a year,  quarterly, to                 
  coordinate and review many of the same program provisions in                 
  oversight over the federal funding mechanisms that deal with                 
  job training and retraining.  It is proposed under the Human                 
  Resources Investment Council Bill,  which has been empowered                 
  by  the federal government to combine  the councils into one                 
  council, and that  their oversight role would be  handled in                 
  one coordinated way.  The councils that are now proposed are                 
  now housed in  three separate agencies.   The proposal under                 
  SB 142 is to take the  oversight committee, the council that                 
  has created the Human Resource Investment Council, and place                 
  it under the role  of the governor.  The  consolidation bill                 
  deals with $42 million in federal flow-through funds.  Funds                 
  are  not coming from  the general fund  or the  state in any                 
  way.    He stated  that  it  is all  federal  past-due money                 
  identified   under  federal   legislation  that   meets  the                 
  requirements under a  federal bill to obtain the $42 million                 
  in federal  flow-through funds.   The interagency  transfers                 
  and staffing transfers have been identified specifically for                 
  these oversight committees.   The intent  is to combine  and                 
  consolidate   their   commission,  and   come   up   with  a                 
  comprehensive plan that is strictly for Alaska.  He stressed                 
  the importance of  having the consolidated council  with the                 
  upcoming federal block grants proposed.                                      
  Senator  Phillips MOVED  CSSB 142  with accompanying  fiscal                 
  notes,  with individual recommendations.  No objection being                 
  heard, CSSB 142  was REPORTED  OUT of committee  with a  "do                 
  pass"  recommendation  by   Co-chair  Frank,  and   Senators                 
  Phillips, Zharoff, and Sharp.  Signing  "no recommendations"                 
  were Co-chair Halford and Senator Rieger.  Zero fiscal notes                 
  from:  University  of  Alaska, Dept  of  Education;  Dept of                 
  Community  and  Regional  Affairs, Dept  of  Labor,  Dept of                 
  Health  & Social Services; and Dept of Commerce and Economic                 
  Development.  Office  of the governor  has a fiscal note  of                 
       SENATE BILL NO. 123                                                     
       "An Act relating  to student loan  programs, interstate                 
  compacts  for postsecondary  education, and fees  for review                 
  of   postsecondary education institutions; and providing for                 
  an   effective date."                                                        
  Co-chair Frank WITHDREW  amendment #1.   No objection  being                 
  heard amendment #1  was WITHDRAWN.  Senator  Zharoff offered                 
  amendment #2 which deals the full and part-time students.                    
  Joe  McCormick,  Executive  Director for  the  Commission on                 
  Postsecondary Education stated his support for amendment #2.                 
  He  said it provides  a graduation, downward,  of the annual                 
  amounts eligible depending on the length of the program.  It                 
  tracks very  closely the same loan  eligibility requirements                 
  that are currently available in the student aids programs.                   
  Senator Zharoff  MOVED to adopt amendment #2.  Senator Sharp                 
  OBJECTED.  Senator  Sharp MOVED  amendment #3 which  reduces                 
  the proposed total amount available for a student loan to an                 
  individual student over  the career course of  his education                 
  from $79.0 to  $60.0.  The $60.0 his still higher than under                 
  federal law.                                                                 
  Mr.  McCormick was supportive  of the amendment.   He stated                 
  that the current maximum is $5500 for an undergraduate,  and                 
  $6500 for a  graduate student.   Depending on the number  of                 
  years involved in the undergraduate  or graduate study would                 
  determine the aggregate.  Four years of study at $5500 would                 
  equal  $22,000.   Three  years of  graduate  study at  $6500                 
  equals $19,000.  This  amounts to a 26% increase  overall in                 
  the allowable amount to be borrowed.                                         
  There was no objection  to the amendment.  Amendment  #2 and                 
  Senator Rieger expressed  his concerns  with regards to  the                 
  origination fee at  5%.  He  offered an amendment to  reduce                 
  the rate from  5% to 3%.   Mr. McCormick stated that  the 5%                 
  rate was established as a rate  that customarily was paid in                 
  student loan programs,  and their rate  went up to 8%.   The                 
  rate  has ranged over time  from 3%- 8%.   Therefore, 5% was                 
  chosen as a  mid-point rate.   The average  student loan  is                 
  $4700.  Co-chair Frank stated that his desire is to have the                 
  student loan  program  be  fully  self-supporting.  Co-chair                 
  Halford agreed  with the program  needing to be  fully self-                 
  supporting  and  could  not  support  the  amendment.    Mr.                 
  McCormick stated that  the reason  the student loan  program                 
  has not been paying for itself combines many factors.  There                 
  were  many  years  that  contained a  forgiveness  provision                 
  within the  law, which did  not replenish the  loan capital.                 
  The  loans   were  forgiven,   but  the   capital  was   not                 
  replenished.  The  forgiveness is  part of the  loss.   When                 
  students die, become  totally disabled,  and default on  the                 
  loans, there is no billing of  the general fund to replenish                 
  the capital.  It is truly a loss and the capital of the fund                 
  does go down.  The other factor involved is that there is no                 
  interest  on  the  loan  during  the  time  the  student  is                 
  initially  in school.  Under  this provision the student may                 
  be  charged  $240  origination  fee, but  he  will  have  an                 
  interest free loan over  the next 12 months which  works out                 
  to  be a $400  savings to the student.   When the commission                 
  feels that politically they can come to the legislature with                 
  the proposal, they will come back and ask for interest to be                 
  charged  during  the in-school  period.   This  represents a                 
  period of time  for which the  state is paying bond  holders                 
  interest  on those  bonds for  which  interest is  not being                 
  charged  on  the loan.    That  is  a  loosing  proposition.                 
  Amendment by Senator Rieger FAILED.                                          
  Senator  Zharoff inquired as  to the effective  date for the                 
  students  borrowing  in the  year  of 1995.    Mr. McCormick                 
  responded  that   current  loan  limits  apply  to  students                 
  applying for, and  receiving, loans  through June 30,  1995.                 
  Students applying for  loans to be  disbursed on, or  after,                 
  July 1, 1995 would enjoy the  benefits of the increased loan                 
  limits.  Tuition  increase with the University of  Alaska is                 
  July  1,  1995.   He recommended  the  increase in  the loan                 
  program to coincide with that date.                                          
  Senator  Rieger  offered  a  conceptual  amendment  making a                 
  change in the title to include Western Interstate Commission                 
  on  Higher  Education.    No   objection  being  heard,  the                 
  conceptual amendment was ADOPTED.                                            
  End     Tape #42, Side 1                                                     
  Begin   Tape #42, Side 2                                                     
  Senator Phillips MOVED  to adopt CSSB 123  with accompanying                 
  fiscal  notes  and  with individual  recommendations.     No                 
  objections being heard,  CSSB 123 (FIN) was  REPORTED OUT of                 
  committee with a "do pass" from Co-chairs Halford and Frank,                 
  along with Senators Phillips and Sharp.  Senators Rieger and                 
  Zharoff signed "no  recommendation".  Two zero  fiscal notes                 
  from  Dept   of  Education  (Student  Loans)   and  (Program                 
       SENATE BILL NO. 105                                                     
       "An  Act  relating  to  a  requirement that  a  parent,                 
  guardian, or   custodian consent before a minor receives  an                 
  abortion;      establishing a judicial  bypass procedure  by                 
  which a minor may   petition  a  court for  authorization to                 
  consent to an abortion   without   consent   of   a  parent,                 
  guardian, or custodian; amending   the     definition     of                 
  `abortion'; and amending Alaska Rules of     Civil Procedure                 
  40, 53, and 79; Alaska Rules of Appellate    Procedure  204,                 
  210, 212, 213, 508, and 512.5; and Alaska    Administrative                  
  Rule 9."                                                                     
  Senator  Leman stated that SB 105 provides a judicial bypass                 
  for  a  juvenile who  seeks  to  have  an  abortion  without                 
  parental  permission.    Currently,  state  law  requires  a                 
  juvenile under  age 18  have parental  consent.   It is  not                 
  enforced.  This proposed  bill meets the test of  the United                 
  States  Supreme Court.    There are  fiscal  notes from  the                 
  Office  of  Public  Advocacy  and the  Court  System.    The                 
  advantages    of    a    judicial     bypass    incorporates                 
  confidentiality, and costs (no charge).                                      
  Co-chair  Halford offered  amendment  #1 and  asked  Senator                 
  Leman to define the amendment.  Senator Leman explained that                 
  the proposed amendment  would delete  the requirement for  a                 
  guardian ad litem, be appointed in addition to an  attorney.                 
  The  minor would  have an  attorney who would  represent her                 
  interest.  The duplication would  be removed. In response to                 
  the question, what  is the definition  of ad litem, he  said                 
  that  it is a person  appointed by the  court who assists in                 
  helping the juvenile  to make decisions, acting in  the best                 
  interests of that juvenile.                                                  
  Senator Sharp offered to ADOPT amendment #1.   No objections                 
  heard it was ADOPTED.                                                        
  Co-chair Frank asked Senator  Leman to give his  reaction to                 
  the  zero  fiscal note  from  the  Dept of  Health  & Social                 
  Services.  He responded  that there would be a  savings with                 
  fewer  abortions.    Elmer  Lindstrom  testified  in  direct                 
  conflict with the supporting documentation from other states                 
  and the purpose  of this  bill. The ultimate  purpose is  to                 
  reduce the  teen pregnancies and abortions.   There is ample                 
  documentation in the record that shows it does happen.                       
  Co-chair Frank focused  on the fiscal  note.  He stated  the                 
  discrepancies in this  bill.  Wanted  to know if the  $112.0                 
  fiscal note from OPA is accurate. Senator Leman said that by                 
  adopting the amendment, OPA's fiscal note would be decreased                 
  by $112.0.  Their projection is that there by 112 cases each                 
  at  $1500  per case.   Their  projection  of numbers  may be                 
  accurate,  the dollar  amount is exorbitant.   He  was asked                 
  what percentage  of teens  are expected  to   talk to  their                 
  parents versus the  court?  Senator Leman  responded that an                 
  assumption, based on statistics,  that 61% of girls  who now                 
  talk to  their parents, would continue to do so, and 39% who                 
  do not, would then seek to have a judicial bypass.                           
  Senator Leman stated that in order for a juvenile to qualify                 
  for  a  judicial  bypass she  will  be  required  to file  a                 
  complaint.  She will state that she is pregnant, that she is                 
  unmarried, under the age  of 18 and unemancipated, that  she                 
  wishes  to  have an  abortion  without  the consent  of  her                 
  parents or others, and  be able to allege to: the  fact that                 
  she is  mature and well-enough  informed; or,  that she  has                 
  been a victim of physical, sexual, or emotional abuse by the                 
  parents. That is how it would be presented to the judge.                     
  Alison Elgee,  Deputy Commissioner, Dept  of Administration,                 
  stated  that  as a  result  of the  amendment  just adopted,                 
  eliminating the guardian ad litem requirement, the Office of                 
  Public Advocacy fiscal  note can be  reduced to $168.0.   In                 
  other words,  $112.0 is  subtracted from  the $280.0.  Trial                 
  Courts has a fiscal note of $9.6.                                            
  Sherrie  Goll,  Representing   the  Alaska  Women's   Lobby,                 
  testified for the Pro Choice Alliances.  She stated that the                 
  Alliance  and   the  Women's   Lobby  is   opposed  to   the                 
  legislation.   In  regard to the  fiscal impact,  she stated                 
  that there is an  additional impact to be considered,  which                 
  is defending the constitutionality of  this law.  She stated                 
  it certainly will be challenged.  There are two other states                 
  that have similar  rights to privacy in  their constitution.                 
  As  the sponsor stated,  this judicial bypass  does meet the                 
  constitutional test  for the federal constitution.  However,                 
  the  two  states  that have  similar  constitutions  to ours                 
  (California and  Florida) have meet with  different results.                 
  In Florida it was struck down,  and in California they chose                 
  to suspend their law after they passed it, because there was                 
  so much weight given to the fact that it would be overturned                 
  to the court.                                                                
  Senator Phillips offered an amendment  changing the age from                 
  18 to 16 in all  provisions.  Age 16 is the  age of consent.                 
  Senator Leman does  not support the amendment.   He suggests                 
  focusing on the  issue.  The girls  can be emancipated.   He                 
  felt that there is  consistency in the juvenile laws  if the                 
  age is  kept at  age 18.   No further  debate, the  question                 
  before  the  committee  is  the  adoption  of  the  Phillips                 
  amendment.  In  favor were Senators Zharoff,  Donley, Rieger                 
  and  Phillips.   Opposed  were  Co-chair Halford,  Frank and                 
  Senator Sharp.  The amendment was ADOPTED.                                   
  Senator Rieger offered an amendment  moving language on page                 
  8, line  22 (section  5 (5)  to (4)).    No objection  being                 
  heard, the amendment was ADOPTED.                                            
  Senator Leman reiterated  that the bill comes  from existing                 
  law in other states that have already withstood the scrutiny                 
  of the  United States Supreme Court.   It is  not a standard                 
  created  by him or the Alaska bill  drafters.  Section 5 was                 
  modeled after the Ohio Law.                                                  
  Senator Sharp MOVED to adopt CSSB 105  (FIN) with individual                 
  recommendations and  accompanying fiscal  notes.   There was                 
  objection.  The question is, shall  CSSB 105 (FIN) move from                 
  committee.  Those  in favor  were Co-chairs Halford,  Frank,                 
  along with Senators Phillips and Sharp.   Those opposed were                 
  Senators Rieger,  Donley, and Zharoff.   CSSB 105  (FIN) was                 
  REPORTED  OUT of  committee with  "no  recommendations" from                 
  Senators  Rieger,  Phillips,  Frank,  and Zharoff.  Co-chair                 
  Halford and Senator Sharp recommended  "do pass" and Senator                 
  Donley  recommended  "do  not  pass".    Accompanying fiscal                 
  notes: Dept Health & Social Services (Medicaid Non-Facility)                 
  zero;  (Medicaid  Facility)  zero;  Dept  of  Administration                 
  $168.0; and Courts $9.6.                                                     
       SENATE BILL NO. 81                                                      
       "An  Act  classifying  the  wolf   as  a  predator  and                 
  providing for  a bounty on wolf."                                            
  Senator Sharp testified the bill declassifies the wolf as  a                 
  big game animal and places it in classified status.  It also                 
  leaves it as a fur  bearer.  It allows the Board of Game the                 
  flexibility  to  set  up   areas  designated  for  intensive                 
  predator control by offering harvest incentives if the Board                 
  of Game authorizes.  It designates  the department to set up                 
  areas where trappers  or members  of the public,  to take  a                 
  wolf,  can  present  the  skin  as  defined on  page  2  for                 
  identification   and   verification   to  the   department's                 
  satisfaction.  If the animal is taken in an area designated,                 
  then the department  is responsible  for paying the  harvest                 
  End    Tape #42, Side 2                                                      
  Begin  Tape #44, Side 1                                                      
  Senator Sharp  referred to his  large chart produced  by the                 
  Division of  Game.   It graphically  indicated the  wildlife                 
  harvest data.   He  indicated that  the Resources  Committee                 
  substantially changed the bill.  The bounty was reduced from                 
  $400 to $200.  All provisions were changed which referred to                 
  the wolf as a "vermin to be killed in any way."  It has been                 
  changed to reflect that  the wolf is an unclassified  or fur                 
  bearer and is subject  to all the protection and  the normal                 
  procedures  that  apply  to   unclassified  animals  or  fur                 
  bearers.  It further states,  that the harvest incentive for                 
  a bounty can only be applied  in areas decided by the  Board                 
  of Game.   He  reiterated, the  state is  in turmoil  over a                 
  subsistence question that basically deals with a total of 4%                 
  of the harvest.                                                              
  Senator Donley  supports maintaining  the existing  controls                 
  for non-residents and aliens, and applying the new standards                 
  to  Alaskan  residents.    Co-chair   Halford  responded  an                 
  inconsistency in that there is  no other unclassified or fur                 
  bearer that has  a non-resident tag.   He noted the  need to                 
  create a non-resident tag for an unclassified animal.   This                 
  is inconsistent with the current management scheme.                          
  Senator Phillips asked if there were  any limits to the type                 
  of wolf taken.   Co-chair Halford  responded that it is  the                 
  same  as  other  like  fur  bearing  animals.    It  is  not                 
  restricted  by  age   or  size,  primarily  because   it  is                 
  impossible for someone in the field  to know if a wolf is  a                 
  male  or  female  or if  it  is  6 months  or  6  years old.                 
  Trapping is  whatever gets  in the  trap.   He reminded  the                 
  committee that there are 1100 wolves taken a year.                           
  Senator Donley offered a  conceptual amendment limiting  the                 
  harvesting of the wolf to Alaskans. No objection being heard                 
  the amendment was ADOPTED.                                                   
  Senator Phillips inquired  as to why the  right foreleg must                 
  be taken  to the  department for  identification.   Co-chair                 
  Halford  responded  that the  characteristics  of  that bone                 
  distinguishes a wolf from a dog.                                             
  Senator  Sharp  MOVED    to  adopt  a  conceptual  amendment                 
  changing the language from retain to remove on page 2, lines                 
  4 and 6.  No objection being heard, it was ADOPTED.                          
  Co-chair Frank MOVED to adopt CSSB  81 (FIN) as amended with                 
  a fiscal  note from the Dept of Fish  and Game of $85.0 with                 
  individual recommendations.  No objection being heard,  CSSB
  81 (FIN) was REPORTED  OUT of committee.  Co-chairs  Halford                 
  and Frank along  with Senator  Sharp recommended "do  pass",                 
  Senators  Phillips,  Donley,  and   Rieger  recommended  "no                 
  recommendation". Co-chair Halford requested a current fiscal                 
  note to reflect the  actual cost from Dept of  Fish and Game                 
  of $85.0.                                                                    
  The meeting adjourned at approximately 3:00 p.m.                             

Document Name Date/Time Subjects