Legislature(2005 - 2006)SENATE FINANCE 532

04/28/2005 09:00 AM FINANCE


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09:58:26 AM Start
04:33:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ HB 130 UNIVERSITY LAND GRANT/STATE FOREST TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= SB 153 INTERNATIONAL AIRPORTS REVENUE BONDS TELECONFERENCED
Moved SB 153 Out of Committee
+ HB 15 LIQUOR LICENSES: OUTDOOR REC. LODGE/BARS TELECONFERENCED
Heard & Held
+ HB 19 PESTICIDE & BROADCAST CHEMICALS TELECONFERENCED
Heard & Held
+ HB 97 OATHS; NOTARIES PUBLIC; STATE SEAL TELECONFERENCED
Moved SCS CSHB 97(FIN) Out of Committee
+ SB 20 OFFENSES AGAINST UNBORN CHILDREN TELECONFERENCED
Moved CSSB 20(JUD) Out of Committee
+ SB 164 SALMON PRODUCT DEVELOPMENT TAX CREDIT TELECONFERENCED
Moved CSSB 164(FIN) Out of Committee
+ SB 175 DISPENSING OPTICIANS TELECONFERENCED
Moved SB 175 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 113 GULF OF ALASKA GROUNDFISH FISHERY
Moved CSSB 113(RES) Out of Committee
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          April 28, 2005                                                                                      
                             9:58 a.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Green convened the meeting at approximately 9:58:26 AM.                                                              
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Bert Stedman                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
Also  Attending:   CHERYL  SUTTON,  Staff  to Senator  Ben  Stevens;                                                          
CHERYL  SUTTON,   Staff  to  Senator   Ben  Stevens;  NONA   WILSON,                                                            
Legislative  Liaison,   Department  of  Transportation   and  Public                                                            
Facilities;   KIP   KNUDSON,  Deputy   Commissioner   of   Aviation,                                                            
Department   of  Transportation  and   Public  Facilities;   ANNETTE                                                            
KREITZER, Chief of Staff  to Lieutenant Governor Loren Leman, Office                                                            
of  the Lieutenant  Governor;  BRIAN  WEST,  Intern, Office  of  the                                                            
Lieutenant  Governor;  MICHAEL PAWLOWSKI,  Staff  to Representative                                                             
Kevin  Meyer;  KRISTIN RYAN,  Director,  Division  of Environmental                                                             
Health, Department of Environmental  Conservation; ANDREA DOLL; CHIP                                                            
WAGONER,  Executive   Director,  Alaska  Catholic  Conference;   KIM                                                            
CARNOT,  Staff  to  Co-Chair  Green; TIM  BARRY,  Staff  to  Senator                                                            
Stedman;  MARK  VINSEL,  Executive  Director,  United  Fishermen  of                                                            
Alaska;  KRIS NORRIS,  Government  Affairs, Icicle  Seafoods,  Inc.;                                                            
JANE  ALBERTS,  staff to  Senator  Bunde;  PAT  DAVIDSON,  Director,                                                            
Division  of Legislative  Audit; RICK URION,  Director, Division  of                                                            
Occupational  Licensing,   Department  of  Commerce,  Community  and                                                            
Economic Development;                                                                                                           
                                                                                                                                
Attending  via  Teleconference:    From  an  offnet  location:  DAVE                                                          
EBERLE, Department  of Transportation and Public Facilities;  PAMELA                                                            
MILLER, Biologist  and Executive Director,  Alaska Community  Action                                                            
on Toxics;  ALAN COLTER;  DOUG GRIFFIN,  Director, Alcohol  Beverage                                                            
Control  Board,  Department  of  Public  Safety;   BRENDA  STANSILL,                                                            
Director,  Center for Non-Violent  Living,  and chair of a  steering                                                            
committee  of the  Alaska Counsel  on Domestic  Violence and  Sexual                                                            
Assault; CHRISTI BRAND,  President, Opticians Association of Alaska;                                                            
From Anchorage: KEN PERRY,  General Manager, PARATEX Pied Piper, and                                                            
representative,  Certified  Applicators  in  Alaska,  National  Pest                                                            
Management  Association,  and  RISE; ANNA  FRANKS,  Chief  Executive                                                            
Officer, Planned  Parenthood of Alaska;  CASSANDRA JOHNSON;  MICHAEL                                                            
MACLEUD-BALL,  Executive  Director,  Alaska Civil  Liberties  Union;                                                            
LARRY HARPER, American Board of Optometrists;                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 113-GULF OF ALASKA GROUNDFISH FISHERY                                                                                        
                                                                                                                                
The Committee  heard from  the sponsor. The  bill was reported  from                                                            
Committee.                                                                                                                      
                                                                                                                                
SB 130-WORKERS' COMPENSATION/ INSURANCE                                                                                         
                                                                                                                                
A  Subcommittee   was   formed   to  review   the   bill  and   make                                                            
recommendations  to  the  full  Committee.  The  bill  was  held  in                                                            
Committee.                                                                                                                      
                                                                                                                                
SB 153-INTERNATIONAL AIRPORTS REVENUE BONDS                                                                                     
                                                                                                                                
The  Committee  heard from  the  Department  of  Transportation  and                                                            
Public Facilities. The bill was reported from Committee.                                                                        
                                                                                                                                
HB  97-OATHS; NOTARIES PUBLIC; STATE SEAL                                                                                       
                                                                                                                                
The Committee  heard from the Office of the Lieutenant  Governor. An                                                            
amendment was adopted and the bill was reported from Committee.                                                                 
                                                                                                                                
HB  19-PESTICIDE & BROADCAST CHEMICALS                                                                                          
                                                                                                                                
The  Committee   heard   from  the   sponsor,   the  Department   of                                                            
Environmental Conservation,  industry organizations, public interest                                                            
organizations,  and  members of  the public.  The bill  was held  in                                                            
Committee.                                                                                                                      
                                                                                                                                
HB  15-LIQUOR LICENSES: OUTDOOR REC. LODGE/BARS                                                                                 
                                                                                                                                
The Committee  heard from the sponsor  and the Department  of Public                                                            
Safety.  An  amendment  was   adopted  and  the  bill  was  held  in                                                            
Committee.                                                                                                                      
                                                                                                                                
SB  20-OFFENSES AGAINST UNBORN CHILDREN                                                                                         
                                                                                                                                
The Committee heard from  the sponsor, the co-chair, representatives                                                            
of interested  organizations  and a member  of the public.  The bill                                                            
was reported from Committee.                                                                                                    
                                                                                                                                
SB 164-SALMON PRODUCT DEVELOPMENT TAX CREDIT                                                                                    
                                                                                                                                
The Committee  heard from the sponsor and industry  representatives.                                                            
The bill was reported from Committee.                                                                                           
                                                                                                                                
SB 175-DISPENSING OPTICIANS                                                                                                     
                                                                                                                                
                                                                                                                                
9:58:44 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 113(RES)                                                                          
     "An Act relating to entry into and management of Gulf of                                                                   
     Alaska groundfish fisheries."                                                                                              
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
9:59:01 AM                                                                                                                    
                                                                                                                                
CHERYL  SUTTON,  Staff to  Senator  Ben Stevens,  outlined  two  new                                                            
fiscal  notes  drafted  since  the  previous  hearing.  The  receipt                                                            
supported services fund source would be generated from fees.                                                                    
                                                                                                                                
The Committee had no questions regarding the new fiscal notes.                                                                  
                                                                                                                                
9:59:41 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  pointed out this legislation  relates to  provisions                                                            
in the  recently passed SB  93, which would  be soon transmitted  to                                                            
Governor Murkowski for signature into law.                                                                                      
                                                                                                                                
Ms. Sutton affirmed.                                                                                                            
                                                                                                                                
Co-Chair  Green remarked  on the  appropriateness  of not  utilizing                                                            
general funds for this purpose.                                                                                                 
                                                                                                                                
10:00:07 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  offered a motion to report the bill  from Committee                                                            
with individual recommendations and new fiscal notes.                                                                           
                                                                                                                                
Without objection  COMMITTEE SUBSTITUTE SB 113 (RES)  was MOVED from                                                            
Committee with  a new fiscal notes  from the Department of  Fish and                                                            
Game  dated  4/28/05;   one  for  the  Commercial  Fisheries   Entry                                                            
Commission in the amount  of $20,000, and a the other for the Boards                                                            
of Fisheries and Game in the amount of $45,600.                                                                                 
                                                                                                                                
10:01:02 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 130(FIN) am                                                                        
     "An  Act relating  to the grant  of certain  state land  to the                                                            
     University  of Alaska; relating  to the duties of the  Board of                                                            
     Regents;  establishing  the  university  research  forest;  and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Green  assigned Co-Chair Wilken, Senator  Dyson and Senator                                                            
Hoffman to  a subcommittee  and charged the  subcommittee to  review                                                            
this legislation and make recommendations to the full Committee.                                                                
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
10:02:28 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 153                                                                                                        
     "An Act relating to international airports revenue bonds; and                                                              
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
NONA WILSON, Legislative  Liaison, Department of Transportation  and                                                            
Public Facilities, testified  this would increase the "bond cap" for                                                            
the issuance of  International Airport System Revenue  Bonds by $288                                                            
million  to total  $813  million.  These bonds  would  be issued  to                                                            
finance projects at the  Fairbanks International Airports, which are                                                            
operated as a  unit of the Alaska International Airport  System. The                                                            
airports  are  operated   in  accordance  with  an  agreement   that                                                            
obligates  the carriers  to pay for  the operation  of the  airport,                                                            
including the redemption of these bonds.                                                                                        
                                                                                                                                
10:04:32 AM                                                                                                                   
                                                                                                                                
Senator Olson  asked why  the project size  has increased and  asked                                                            
what the additional funds would be utilized for.                                                                                
                                                                                                                                
10:04:53 AM                                                                                                                   
                                                                                                                                
Ms.  Wilson  replied   the  funds  would  be  utilized   for  runway                                                            
reconstruction.                                                                                                                 
                                                                                                                                
KIP  KNUDSON,  Deputy   Commissioner  of  Aviation,   Department  of                                                            
Transportation and Public  Facilities, explained the funds generated                                                            
from the  additional  bond issuance  would be utilized  to fund  the                                                            
issuance costs  and capitalized interest specifically  for terminals                                                            
projects until the terminals begin to generate revenue.                                                                         
                                                                                                                                
10:05:37 AM                                                                                                                   
                                                                                                                                
Senator  Olson requested  written or oral  testimony expressing  the                                                            
position of affected air carriers.                                                                                              
                                                                                                                                
10:05:53 AM                                                                                                                   
                                                                                                                                
Mr. Knudson  stated he would provide  a spreadsheet titled,  "Alaska                                                            
International  Airports System, Capital Projects,  Signatory Airline                                                            
Ballot Summary,  January 2005" [copy on file], which  indicates that                                                            
the air carriers support the Fairbanks projects.                                                                                
                                                                                                                                
10:06:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  also noted language of the second  paragraph of the                                                            
sponsor statement  reads, "Annual debt service on  the revenue bonds                                                            
will be paid for  primarily through airline rates  and fees. All the                                                            
projects  requiring  bond  funding   were  approved  by  the  Alaska                                                            
International  Airport Systems' 26 signatory airlines  in January of                                                            
this year."                                                                                                                     
                                                                                                                                
10:06:51 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  understood the spreadsheet  would list the  names of                                                            
the affected airlines  and how each voted on the proposed  projects.                                                            
                                                                                                                                
10:07:05 AM                                                                                                                   
                                                                                                                                
Mr.  Knudson  informed  that  80  percent   of  these  revenues  are                                                            
generated exclusively from cargo carriers.                                                                                      
                                                                                                                                
10:07:20 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  emphasized  that  cargo carriers  would  pay  these                                                            
bonds.                                                                                                                          
                                                                                                                                
10:07:26 AM                                                                                                                   
                                                                                                                                
Senator Hoffman asked how  the Federal Express carrier voted, noting                                                            
it is the major carrier that provides many jobs in the state.                                                                   
                                                                                                                                
Senator Hoffman had understood  that an earlier appropriation to the                                                            
Ted Stevens Anchorage  International Airport was sufficient  to fund                                                            
homeland   security  improvements.   He  asked   therefore   why  an                                                            
additional $14 million is requested for this purpose.                                                                           
                                                                                                                                
10:08:39 AM                                                                                                                   
                                                                                                                                
Mr.  Knudson  replied  that  the project  estimated  to  cost  $14.6                                                            
million has  been "held off  at arms length"  for approximately  ten                                                            
years. The federal  Department of Homeland Security  now encompasses                                                            
United  States Customs,  Border  patrol, the  Transportation  Safety                                                            
Administration  and another federal  agency that operates  screening                                                            
areas and occupy office  space in the North terminal. These agencies                                                            
have demanded  that the State renovate the terminal  to meet federal                                                            
standards.  The  Alaska  Department  of  Transportation  and  Public                                                            
Facilities  does not support these  renovates and has delayed  their                                                            
undertaking as long as possible.                                                                                                
                                                                                                                                
10:09:36 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman clarified  the entire $14.6  million is  designated                                                            
for the North Terminal.                                                                                                         
                                                                                                                                
Mr. Knudson affirmed.                                                                                                           
                                                                                                                                
10:09:49 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  asked when the information  Senator Olson  requested                                                            
would be delivered.                                                                                                             
                                                                                                                                
Mr. Knudson anticipated ten minutes.                                                                                            
                                                                                                                                
10:09:59 AM                                                                                                                   
                                                                                                                                
DAVE EBERLE,  Department  of Transportation  and Public Facilities,                                                             
testified  via teleconference  from an offnet  location that  he was                                                            
available to respond to questions.                                                                                              
                                                                                                                                
10:10:25 AM                                                                                                                   
                                                                                                                                
Senator Olson  noted the sponsor statement  indicates that  the bond                                                            
package would  include $91 million for projects at  Concourses A and                                                            
B of  the Ted  Stevens  Anchorage  International  Airport. He  cited                                                            
significant   cost  overruns  incurred   on  projects  relating   to                                                            
Concourse C  and asked the estimated  cost overruns of the  projects                                                            
at A and B.                                                                                                                     
                                                                                                                                
Mr.  Eberle  expressed  intent   that  no  cost  overruns  would  be                                                            
incurred. A  variety of measures are  under consideration  to ensure                                                            
this. He offered to detail those measures.                                                                                      
                                                                                                                                
Senator Olson requested such detail later.                                                                                      
                                                                                                                                
Mr. Eberle assured he would provide this information.                                                                           
                                                                                                                                
The bill  was HELD  in Committee.  It  was brought  back before  the                                                            
Committee later in the meeting.                                                                                                 
                                                                                                                                
10:12:13 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     SENATE COMMITTEE SUBSTITUTE  FOR COMMITTEE SUBSTITUTE FOR HOUSE                                                            
     BILL NO. 97(COMMITTEE SUBSTITUTE)                                                                                          
     "An Act relating to  the authority to take oaths, affirmations,                                                            
     and  acknowledgments   in  the  state,  to  notarizations,   to                                                            
     verifications,   to  acknowledgments,   to  fees  for   issuing                                                            
     certificates  with  the  seal  of  the state  affixed,  and  to                                                            
      notaries public; and providing for an effective date."                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
ANNETTE  KREITZER,  Chief  of Staff  to  Lieutenant  Governor  Loren                                                            
Leman, Office  of the  Lieutenant Governor,  introduced herself  and                                                            
Mr. West.                                                                                                                       
                                                                                                                                
BRIAN  WEST, Intern,  Office  of  the Lieutenant  Governor,  read  a                                                            
statement into the record as follows.                                                                                           
                                                                                                                                
     House  Bill 97 addresses changes  in Alaska's notary  statutes,                                                            
     which  have not  been  updated since  1961.  The changes  being                                                            
     proposed today have  been suggested by Alaskan notaries working                                                            
     together   with  Lieutenant  Governor  Leman's   office.  These                                                            
     proposed  changes  are outlined  to you in  the notary  statute                                                            
     comparison handout  [copy on file], which should be in front of                                                            
     you today and I shall walk you through that.                                                                               
                                                                                                                                
     They're arranged in  categories of qualifications, terms, fees,                                                            
     bond,  commission  types,  commission  revocation,  and  notary                                                            
     data. Going to the  handout under qualifications, currently the                                                            
     applicants  must be  a resident  of the State  and at least  19                                                            
     years of  age. We're proposing lowering that  age to 18. At the                                                            
     same time, we're proposing  that felons may not become notaries                                                            
     in  this state.  The  terms will  remain  the same  for  public                                                            
     notaries,  which  is  four  years.  And  we're  proposing  that                                                            
     limited  governmental  notaries  public  commissions  would  be                                                            
     open-ended  with  automatic   revocation  upon  termination  of                                                            
     government  employment.  For  fees, currently  there  is a  $40                                                            
     application   fee  and  a  $2 fee  for  a  certificate.   We're                                                            
     proposing  that the application fee will remain  at $40 but the                                                            
     certificate would be increased $3 to $5.                                                                                   
                                                                                                                                
     The bonds  at this time will remain the same  at $1,000 and the                                                            
     lieutenant  governor  will be required  to keep  the bonds  two                                                            
     years.                                                                                                                     
                                                                                                                                
     Commission   types:.  Notary   publics  will  serve   four-year                                                            
     commissions  as  well  as limited  governmental  notaries.  The                                                            
     proposed  change  in  the making  is  that  limited  government                                                            
     notaries  will be  expanded to  include  municipal and  federal                                                            
     employees in addition to State.                                                                                            
                                                                                                                                
     Commission  revocation, currently via administrative  procedure                                                            
     act, must be invoked  to review all complaints against notaries                                                            
     no  matter how  trivial. We're  proposing  that the  lieutenant                                                            
     governor,  for good cause, be a form of disciplinary  procedure                                                            
     is an administrative hearing office.                                                                                       
                                                                                                                                
     Notary data:  currently we collect information  such as mailing                                                            
     address,  surety  information and  commission  dates. We  would                                                            
     like to be able to  collect more data including e-mail, for the                                                            
     purpose   of   communication    and   to  collect    additional                                                            
     information, which will not be available for the public.                                                                   
                                                                                                                                
     For non-commissioned  notaries,  there will be no changes.  And                                                            
     finally,  this bill  addresses electronic  notarization,  which                                                            
     currently  is not addressed in the current statutes.  This will                                                            
     remove impediments for notaries by electronic means.                                                                       
                                                                                                                                
10:15:50 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green noted current  statute provides  that notary  names,                                                            
mailing  address,  surety  information   and  commission  dates  are                                                            
available to the public.  She asked about the public availability of                                                            
e-mail addresses.                                                                                                               
                                                                                                                                
Mr. West replied that the e-mail addresses of notaries would not be                                                             
available to the public.                                                                                                        
                                                                                                                                
10:16:40 AM                                                                                                                   
                                                                                                                                
Senator  Olson  asked  why the  minimum  age  requirement  would  be                                                            
lowered from 19 years to 18 years.                                                                                              
                                                                                                                                
10:16:48 AM                                                                                                                   
                                                                                                                                
Mr.  West  replied  that  people could  be  hired  for  bank  teller                                                            
positions beginning at  the age of 18. Bank teller positions usually                                                            
include notary public duties as part of the job description.                                                                    
                                                                                                                                
10:17:39 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  asked if the Lieutenant Governor received  increased                                                            
inquiries on this matter, which prompted this legislation.                                                                      
                                                                                                                                
10:17:44 AM                                                                                                                   
                                                                                                                                
Ms. Krietzer  explained  that when  Lieutenant  Governor Leman  took                                                            
office he directed  staff to investigate  how administration  of the                                                            
notary public  could be done differently.  Staff vetted with  Alaska                                                            
notary   publics,   companies   that   employ   notaries,   national                                                            
organizations,  lobbyists and other parties. It was  determined that                                                            
the bond  amount should be  changed although  the fee for  non-State                                                            
employees to become a notary  should remain unchanged. Consensus was                                                            
reached with other legislative  committees that have heard this bill                                                            
on other changes to the current system.                                                                                         
                                                                                                                                
10:19:01 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green commented  on the process  undertaken to make  these                                                            
changes.                                                                                                                        
                                                                                                                                
10:19:07 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  asked if  the proposed fee  structure intends  that                                                            
any state employee could become a notary public at no charge.                                                                   
                                                                                                                                
10:19:25 AM                                                                                                                   
                                                                                                                                
Ms. Krietzer  clarified that the provision  is written to  waive the                                                            
fee  for   State,  municipal   and  federal   government   employees                                                            
performing  notary  public  services as  a  job duty  to  accomplish                                                            
government  business.  One  government   agency  should  not  charge                                                            
another for notary services.                                                                                                    
                                                                                                                                
10:20:22 AM                                                                                                                   
                                                                                                                                
Senator Hoffman surmised  that the fee would not be automatically be                                                            
waived  for any  state  employee wishing  to  become  a notary.  The                                                            
notary  functions must  be included  in the duties  of the  position                                                            
held by that employee.                                                                                                          
                                                                                                                                
10:20:38 AM                                                                                                                   
                                                                                                                                
Ms. Krietzer affirmed.                                                                                                          
                                                                                                                                
10:20:43 AM                                                                                                                   
                                                                                                                                
Senator Hoffman asked the date of the last fee increase.                                                                        
                                                                                                                                
10:20:51 AM                                                                                                                   
                                                                                                                                
Ms. Krietzer replied that  no changes in the fee structure have been                                                            
made  since  1961. The  House  Finance  Committee  questioned  this.                                                            
However, it was determined  that unless the Notary Public program is                                                            
to be  considered a  revenue generator,  a higher  fee could  not be                                                            
justified.                                                                                                                      
                                                                                                                                
10:21:13 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman  calculated   the  fee  to  be  $10  per  year  the                                                            
certificate is valid.                                                                                                           
                                                                                                                                
Ms. Krietzer affirmed.                                                                                                          
                                                                                                                                
10:21:31 AM                                                                                                                   
                                                                                                                                
Amendment #1:  This amendment deletes the language  of subparagraphs                                                            
(A) and (B)  of subsection (6) of  Sec. 44.50.020. Qualifications.,                                                             
repealed and reenacted  in Section 8 of SCS COMMITTEE  SUBSTITUTE SB                                                            
97  (COMMITTEE SUBSTITUTE)  on  page  8, lines  16 through  22.  New                                                            
language is inserted to read as follows.                                                                                        
                                                                                                                                
                (6) may not, within 10 years before the commission                                                              
          takes effect,                                                                                                         
                     (A) have had the person's notary public                                                                    
          commission  revoked  under  AS 44.50.068(a)(2)  or (4)  or                                                            
          under  the notary public laws of another  jurisdiction for                                                            
          a substantially similar reason;                                                                                       
                     (B) have had the person's notary public                                                                    
          commission  revoked under  AS 44.50.068(1)(3),  unless the                                                            
          person  has reestablished residency in this state under AS                                                            
          01.10.055 before the person submits the application;                                                                  
                     (C) have been disciplined under AS 44.50.068                                                               
          if,  at the time  the person applies  for a notary  public                                                            
          commission  under  this chapter,  the disciplinary  action                                                            
          prohibits the person from holding a notary public                                                                     
          commission; or                                                                                                        
                     (D) have been disciplined under the notary                                                                 
          public  laws of another  jurisdiction if, at the  time the                                                            
          person  applies for a notary public commission  under this                                                            
          chapter,  the  disciplinary  action prohibits  the  person                                                            
           from holding a notary public commission; and                                                                         
                                                                                                                                
This amendment  also  deletes the  language of  subparagraph (4)  of                                                            
Sec. 44.50.036.  Denial of applications., added by  Section 9 of the                                                            
bill on  page 10, lines  25 though  27 and inserts  new language  to                                                            
read as follows.                                                                                                                
                                                                                                                                
                (4) applicant's commission as a notary public has                                                               
     been revoked, within 10 years before the commission takes                                                                  
     effect, in                                                                                                                 
                     (A) this state for a reason stated in                                                                      
                          (i) AS 44.50.068(a)(2) or (4);                                                                        
                          (ii) AS 44.50.068(a)(3), unless the                                                                   
                person has  reestablished  residency  in this  state                                                            
                under AS  01.10.055 before  the  person submits  the                                                            
                application; or                                                                                                 
                     (B) another jurisdiction for a reason                                                                      
          substantially similar to AS 44.50.068(a)(2) or (4).                                                                   
                                                                                                                                
This amendment also inserts  a new subparagraph to subsection (a) of                                                            
Sec. 44.50.068.  Disciplinary  action; complaint;  appeal,  hearing;                                                            
delegation.,  added by Section 11  on page 16, following  line 16 to                                                            
read as follows.                                                                                                                
                                                                                                                                
                (3) failure to maintain residency in this state                                                                 
     under AS 01.10.055.                                                                                                        
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair Green objected for an explanation.                                                                                     
                                                                                                                                
Ms.  Krietzer explained  that  the Division  of Legal  and  Research                                                            
Services determined  that the language  in the Senate State  Affairs                                                            
committee  substitute  was unclear.  That  language unintentionally                                                             
barred a  person from becoming  a notary public  who had moved  from                                                            
the state but then returned.  This correction was necessary in three                                                            
sections of the bill.                                                                                                           
                                                                                                                                
Co-Chair Green removed her objection.                                                                                           
                                                                                                                                
Without further objection the amendment was ADOPTED.                                                                            
                                                                                                                                
10:23:37 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken offered  a motion to report SCS COMMITTEE SUBSTITUTE                                                            
HB  97  (COMMITTEE  SUBSTITUTE),  as  amended  from  Committee  with                                                            
individual recommendations and accompanying fiscal note.                                                                        
                                                                                                                                
There  was not  objection and  SCS COMMITTEE  SUBSTITUTE  HB 97  was                                                            
MOVED from  Committee with zero fiscal  note #1-corrected,  from the                                                            
Office of the Governor.                                                                                                         
                                                                                                                                
AT EASE 10:23:49 AM                                                                                                           
                                                                                                                                
                                                                                                                                
     SB 153-INTERNATIONAL AIRPORTS REVENUE BONDS                                                                                
                                                                                                                                
                                                                                                                                
This bill was heard and held earlier in the meeting.                                                                            
                                                                                                                                
Co-Chair  Green noted the  information Senator  Olson requested  had                                                            
been distributed.                                                                                                               
                                                                                                                                
10:25:39 AM                                                                                                                   
                                                                                                                                
Mr. Knudson  reviewed  the voting  history  of the  air carriers  as                                                            
indicated on the aforementioned spreadsheet.                                                                                    
                                                                                                                                
10:27:05 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman was satisfied  with the  information regarding  the                                                            
position of Federal Express.                                                                                                    
                                                                                                                                
10:27:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  offered a motion to report the bill  from Committee                                                            
with individual recommendations and accompanying fiscal note.                                                                   
                                                                                                                                
There was  no objection  and SB  153 was MOVED  from Committee  with                                                            
fiscal note #1 from the Department of Revenue.                                                                                  
                                                                                                                                
AT EASE 10:27:48 AM / 10:28:39 AM                                                                                           
                                                                                                                                
10:28:40 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 19(FIN)                                                                            
     "An Act relating to pesticides and broadcast chemicals; and                                                                
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate Finance                                                                  
Committee.                                                                                                                      
                                                                                                                                
MICHAEL PAULOWSKI, Staff to Representative Kevin Meyer, read a                                                                  
statement into the record as follows.                                                                                           
                                                                                                                                
     The  intent  behind the  bill  before you,  House  Bill 19,  is                                                            
     twofold. First, to  eliminate the State general fund obligation                                                            
     for  what  is  a required  pesticide  program,  and  second  to                                                            
     provide  reasonable  protections  for the  public health.  I'll                                                            
     take these two intents twofold.                                                                                            
                                                                                                                                
     Speaking  on  general funds,  the  way the  State's  pesticides                                                            
     programs   work  is   that  the  EPA   [federal  Environmental                                                             
     Protection Agency]  approves a pesticide for sale in the United                                                            
     States.  Then each state  registers the  pesticide for  sale in                                                            
     that  particular state.  The state  agency in  our case  is the                                                            
     Department of Environmental  Conservation. They are responsible                                                            
     not  only   for  the  registration   of  pesticides,   but  the                                                            
     inspection  and enforcement of pesticides that  the EPA puts on                                                            
     the  handling, distribution  and  sale of  these chemicals.  In                                                            
     every  other  state in  the United  States,  the  cost of  this                                                            
     program  is  borne  by fees  that  are levied  along  with  the                                                            
     registration  of the chemicals.  Alaska is the only  state that                                                            
     does  not have  such  a fee.  HB 19  would  levy a  fee on  the                                                            
     chemical companies  to pay for the cost of regulating the sale,                                                            
     distribution  and use  of their chemicals  within the  state of                                                            
     Alaska.                                                                                                                    
                                                                                                                                
     The second provision  in HB 19 is those intended to protect the                                                            
     public  health. There  are two ways that  the sponsor  has gone                                                            
     about doing  this. The first is that when pesticides  or bypass                                                            
     chemicals are applied  in a public place, they are applied by a                                                            
     certified  applicator. This is  someone that is trained  in the                                                            
     use  and application  of these  chemicals. The  second is  that                                                            
     reasonable   public  notice  is  posted  when  pesticides   are                                                            
     applied. This is important  because the sponsor's intent was to                                                            
     find that  balance and strike  that balance between  added cost                                                            
     to the industry and  reasonable protections for the public. You                                                            
     might hear  today some testimony that will talk  about previous                                                            
     public  notice,  something  that's  48 hours  in  advance.  The                                                            
     sponsor very  carefully worked to something that  is more along                                                            
     the  lines  of similar  to  a wet  paint  sign; that  when  the                                                            
     activity  occurs and when the public should be  concerned, that                                                            
     notice is given to them.                                                                                                   
                                                                                                                                
     There  are  approximately  between  5,500 and  5,700  different                                                            
     chemicals  that  are used  in the  state of  Alaska. Trying  to                                                            
     write legislation  that specifically addresses the handling and                                                            
     use  of all of these  chemicals, the  sponsor found  incredibly                                                            
     problematic.  And so to reach these public health  goals, HB 19                                                            
     turns  the  Department  of  Environmental  Conservation  to  in                                                            
     regulation achieve the ends that are put forth in HB 19.                                                                   
                                                                                                                                
10:31:44 AM                                                                                                                   
                                                                                                                                
KEN PERRY, General Manager,  PARATEX Pied Piper, and representative,                                                            
Certified   Applicators   in  Alaska,   National   Pest   Management                                                            
Association, and RISE,  testified via teleconference from Anchorage,                                                            
read a statement into the record as follows.                                                                                    
                                                                                                                                
     I  am Ken  Perry, a  lifelong Alaskan  and  General Manager  of                                                            
     PARATEX Pied  Piper - Alaska's oldest Pest Management  Company.                                                            
     I also represent Certified  Applicators in Alaska, and speak by                                                            
     permission  of the National Pest  Management Association  and a                                                            
     major chemical  manufacturer's group known as  RISE. As you are                                                            
     aware, I have been  involved in this bill since Mr. Meyer first                                                            
     kindly asked  us to meet with his assistant,  Mr. Pawlowski and                                                            
     representatives    from   the  Department    of  Environmental                                                             
     Conservation   some  months   ago.  I  am  grateful   for  this                                                            
     consideration  on  their part.  At that time,  I addressed  the                                                            
     same  concerns  I  have  addressed  continually   through  many                                                            
     committees,  and  have offered  reasonable  solutions as  well.                                                            
     Frankly,  the document before you today is so  far removed from                                                            
     the original intent  of the sponsors, that I am amazed it still                                                            
     has  support.  In that  vein,  I submitted  to  you via  e-mail                                                            
     yesterday  a workable  set of  amendments that  can return  the                                                            
     bill to  its original course  and meet most of our concerns.  I                                                            
     urge  you to either  adopt those  amendments  or send the  bill                                                            
     back to the sponsor to achieve those same goals.                                                                           
                                                                                                                                
     On the issue of pesticide  safety, the barrages of comments you                                                            
     are receiving from  certain environmentalists have already been                                                            
     addressed  at  the federal  level.  While they  certainly  have                                                            
     every  right to be heard on their  claims, it is still  the EPA                                                            
     who makes  the decision on what  chemicals can be safely  used,                                                            
     when and  where. While a pesticide free environment  might seem                                                            
     to  be a goal  for them,  we should  not ignore  the desire  of                                                            
     others  for  a pest  free  environment.  Their choices  to  buy                                                            
     products  to  achieve  their desire  should  not  be denied  by                                                            
     excessive fees levied  against the manufacturers, who will then                                                            
     simply remove  their availability from the Alaska  marketplace.                                                            
     Nor  should the  concerns  you hear  raised about  five to  ten                                                            
     products  which they continually  reference require  4600 other                                                            
     products to be punished.  If you have not done so, I would urge                                                            
     you to request a current  list of the 4620 currently registered                                                            
     pesticides.  The first thing  you will notice is that  the vast                                                            
     majority   (perhaps    80%)   are  sanitizing    agents,   wood                                                            
     preservatives and  animal care products. Continue to peruse the                                                            
     list for  products that are "specialty  use" items,  registered                                                            
     and sold  in small volumes to  someone in Alaska or  have trade                                                            
     store  names that do not exist  in our state. As you  will see,                                                            
     very  few  of  them,  perhaps   4  percent,  are  used  by  the                                                            
     professional  applicators, and  many of those are used  once or                                                            
     twice a year.                                                                                                              
                                                                                                                                
     I  would  urge  this  committee  to  take  the  reasonable  and                                                            
     responsible  approach  to  this matter,  not the  inflamed  and                                                            
     passionate but seriously  misdirected sledge hammer one you see                                                            
     before  you. Consider  your decision carefully  as the  eyes of                                                            
     many  major companies  who may  chose to do  business with  our                                                            
     state in the future are upon you.                                                                                          
                                                                                                                                
10:35:06 AM                                                                                                                   
                                                                                                                                
Co-Chair Green had learned  from the Division of Agriculture that it                                                            
receives requests  each year for the registration  form currently in                                                            
use. Most companies are  accustomed to this procedure. She asked how                                                            
the current practice differs from that of other states.                                                                         
                                                                                                                                
10:35:44 AM                                                                                                                   
                                                                                                                                
Mr. Perry characterized  the difference as the imposition of various                                                            
proposed fees  where none currently  exist. Manufacturers  could not                                                            
predict the  amount of chemicals that  would be sold. Many  products                                                            
are sold in small  quantities and manufacturers would  likely opt to                                                            
not register to  sell those products in the state.  His organization                                                            
suggested a fee of $25,  although he still anticipated a hardship in                                                            
registering chemicals.                                                                                                          
                                                                                                                                
10:37:11 AM                                                                                                                   
                                                                                                                                
PAMELA MILLER,  Biologist and Executive  Director, Alaska  Community                                                            
Action  on  Toxics, testified  via  teleconference  from  an  offnet                                                            
location about the nonprofit  organization concerned about long-term                                                            
affects  of pesticides.  The  organization  strongly  supports  this                                                            
bill, as it would provide  a useful method to track chemical use and                                                            
impacts.  This bill  would be a  good investment  to protect  public                                                            
health.                                                                                                                         
                                                                                                                                
Ms. Miller  requested that further  protection be extended  to areas                                                            
near vulnerable populations, such as day care centers.                                                                          
                                                                                                                                
10:39:40 AM                                                                                                                   
                                                                                                                                
ALAN COLTER  testified via  teleconference  from offnet location  on                                                            
behalf of  himself. He told  of a friend exposed  to high levels  of                                                            
pesticides  who experienced  diminished health,  reduced quality  of                                                            
life, and ultimately  death at the age of 47. This  friend underwent                                                            
dialysis  treatment  and a  kidney  transplant.  Many manufacturers                                                             
assert  that most  pesticides  are not  harmful,  however many  are.                                                            
Public health is a high concern.                                                                                                
                                                                                                                                
10:41:45 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green   asked  the  witness's  opinion  on   whether  this                                                            
legislation would advance efforts for addressing the matter.                                                                    
                                                                                                                                
10:41:55 AM                                                                                                                   
                                                                                                                                
Mr. Colter emphasized that  any action is worthwhile. He admitted to                                                            
not closely reviewing  the language of this bill,  but understood it                                                            
to  be  similar   to  legislation   considered  during  a   previous                                                            
legislative session, which he supported.                                                                                        
                                                                                                                                
10:42:17 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  asked Ms. Miller the  same question of whether  this                                                            
legislation would further efforts.                                                                                              
                                                                                                                                
10:42:31 AM                                                                                                                   
                                                                                                                                
Ms. Miller  answered it would  because any  time parents and  others                                                            
are notified  that chemicals would  be sprayed allows those  parents                                                            
an opportunity to protect  their children and others who could be at                                                            
risk.  The  provisions  of  this  legislation   are  reasonable  not                                                            
extreme.                                                                                                                        
                                                                                                                                
10:43:31 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  told of regulatory  language related to health  care                                                            
and childcare  facilities that is included in other  legislation and                                                            
that would complement  and strengthen this bill. Just  because these                                                            
facilities  are not  specifically  addressed in  the bill  currently                                                            
before the  Committee, it is not an  indication that the  issues had                                                            
not  been considered.   Inclusion  of too  many  details  in a  bill                                                            
becomes a detriment  because the assumption  could be made  that the                                                            
overall provisions  of the  statute do not  cover any inadvertently                                                             
omitted listings.                                                                                                               
                                                                                                                                
10:44:38 AM                                                                                                                   
                                                                                                                                
KRISTIN   RYAN,  Director,   Division   of   Environmental   Health,                                                            
Department  of Environmental Conservation,  provided information  on                                                            
the  pesticide  program.   The  State  has  primacy  and   therefore                                                            
implements  the  federal   Environmental  Protection   Agency  (EPA)                                                            
requirements.  The federal  government  provides  funding for  these                                                            
efforts.  State regulations  allow the Department  to issue  permits                                                            
for certain  activities,  including distribution  of chemicals  over                                                            
water and the  spraying of chemicals by air. In addition,  the State                                                            
imposes  restrictions on  chemicals  determined to  be harmful  when                                                            
used  in cold  climates. This  occurs  infrequently,  and the  State                                                            
primarily relies  on EPA scientific  findings. Currently,  the State                                                            
does  not  charge  users or  manufacturers  for  these  services  it                                                            
provides.  This legislation  proposes  to  do so.  She assured  that                                                            
certain products,  such as sanitizers,  would be exempted,  as it is                                                            
not the  intent to discourage  cleaning  activities. Other  products                                                            
would likely be exempted as well.                                                                                               
                                                                                                                                
10:47:17 AM                                                                                                                   
                                                                                                                                
Co-Chair Green asked whether  the Committee should secure additional                                                            
information.                                                                                                                    
                                                                                                                                
10:47:34 AM                                                                                                                   
                                                                                                                                
Ms. Ryan  stated  that some  in the  pesticide industry  are of  the                                                            
opinion that  this legislation would  impose too many restrictions;                                                             
others  feel the Department  should  increase its  efforts. This  is                                                            
typical for  this issue.  This legislation  offers a compromise.  It                                                            
would impose certain  restrictions in areas which  children could be                                                            
exposed and  would require public  notice of chemical distribution.                                                             
                                                                                                                                
10:48:28 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken  pointed  out that  the  fiscal note  indicates  an                                                            
increased cost of $280,000  for FY 06, which is not reflected in the                                                            
Governor's proposed budget.                                                                                                     
                                                                                                                                
Co-Chair Wilken  also noted the analysis  in the fiscal note  states                                                            
that  by FY  08, all  general  funds would  be eliminated  for  this                                                            
program.  Therefore, the fiscal  note should  be amended to  reflect                                                            
this.                                                                                                                           
                                                                                                                                
10:49:22 AM                                                                                                                   
                                                                                                                                
Ms. Ryan  agreed. The  fees would  need to be  collected quickly  if                                                            
this bill becomes law.                                                                                                          
                                                                                                                                
10:49:43 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  requested a spreadsheet  detailing how the  proposed                                                            
fee amounts were established.                                                                                                   
                                                                                                                                
10:50:01 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken   surmised  that   beginning  July  1,   2005,  the                                                            
Department would expect to collect $318,000 in fees in one year.                                                                
                                                                                                                                
Ms. Ryan affirmed.                                                                                                              
                                                                                                                                
Co-Chair Green asked how this amount was calculated.                                                                            
                                                                                                                                
10:50:27 AM                                                                                                                   
                                                                                                                                
Ms. Ryan replied that originally  the bill would have required three                                                            
staff to oversee  the program. This was changed to  two. The cost of                                                            
these positions along with  the amount of eliminated general funding                                                            
currently appropriated  to the program  was calculated to  determine                                                            
the amount  of  fees necessary.  A small  fee would  be assessed  to                                                            
certified applicators.  These applicators have indicated  these fees                                                            
would not cause a hardship.                                                                                                     
                                                                                                                                
10:51:47 AM                                                                                                                   
                                                                                                                                
Senator  Olson spoke  to the  delay in  learning  about the  adverse                                                            
affects  of some chemicals.  It  has taken many  generations  before                                                            
manufactures  admit,  under duress,  the harm  that  a chemical  has                                                            
caused. This concerned him.                                                                                                     
                                                                                                                                
Senator Olson also noted  that certification of applicators could be                                                            
more difficult  for rural residents.  He favored a temporary  waiver                                                            
for these communities.                                                                                                          
                                                                                                                                
10:52:54 AM                                                                                                                   
                                                                                                                                
Ms. Ryan acknowledged  the difficulty  in obtaining a certification                                                             
for an applicator.  One solution would  allow for the issuance  of a                                                            
temporary  license in the  event a trainer  was unable to travel  to                                                            
the community.  The intent is not to hamper the elimination  of pest                                                            
infestation.  Certification is not  a difficult process;  the course                                                            
that has  been given  for years, is  "easy" and  has a zero  failure                                                            
rate.                                                                                                                           
                                                                                                                                
10:54:23 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  asked if the waiver could be granted  in urban areas                                                            
as well in instances  in which it was not "handy"  for an applicator                                                            
to obtain certification.                                                                                                        
                                                                                                                                
10:54:47 AM                                                                                                                   
                                                                                                                                
Ms. Ryan replied  that the waiver would be not restricted  to remote                                                            
areas                                                                                                                           
                                                                                                                                
10:54:56 AM                                                                                                                   
                                                                                                                                
Senator  Dyson  told of  a  friend who  died  five years  ago  after                                                            
contracting leukemia  after a trucking company used  Benzene to kill                                                            
bugs  in his  mattress.  He  asked what  protections  Alaskans  have                                                            
against chemicals used in the shipment of goods in to the State.                                                                
                                                                                                                                
10:55:56 AM                                                                                                                   
                                                                                                                                
Ms.  Ryan  replied  that  all  states  have  regulations   governing                                                            
pesticide  use.  Federal law  prohibits  the use  of  products in  a                                                            
manner  different than  specified on  the label.  Therefore, in  the                                                            
instance of Senator Dyson's  friend, the moving company violated the                                                            
law if it applied more  than the approved amount of the chemical. If                                                            
the Department  is informed of these instances, it  can investigate.                                                            
The commercial  use of products is inspected, and  if the Department                                                            
is aware of a  specific shipping company's questionable  activities,                                                            
that company is inspected.                                                                                                      
                                                                                                                                
10:56:51 AM                                                                                                                   
                                                                                                                                
Senator  Dyson asked  about  any provision  that  requires  customer                                                            
notification  of  any  chemical  distribution  done  by  a  shipping                                                            
company.                                                                                                                        
                                                                                                                                
10:57:08 AM                                                                                                                   
                                                                                                                                
Ms. Ryan  replied  that no State  requirement  currently exists  and                                                            
that such  a proposal would  be subject to  federal trade laws.  She                                                            
would investigate the matter.                                                                                                   
                                                                                                                                
10:57:25 AM                                                                                                                   
                                                                                                                                
Senator Dyson requested additional information.                                                                                 
                                                                                                                                
10:57:31 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green informed  that she was  raised in  an area in  which                                                            
chemicals were  commonplace. Her father  was a chemical researcher.                                                             
In  addressing  the  limiting  of pesticide  use,  balance  must  be                                                            
understood.                                                                                                                     
                                                                                                                                
10:58:22 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  indicated  the  fiscal  note  required   additional                                                            
review.                                                                                                                         
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
AT EASE 10:58:59 AM/ 3:09 PM                                                                                                  
                                                                                                                                
[Note: A computer malfunction  occurred during the following portion                                                            
of the  meeting. Periodic  links to the For  The Record (FTR)  audio                                                            
program  were lost.  Audio is  still available  by  clicking on  any                                                            
timestamp  above  and  forwarding  to  3:09  pm  when  this  meeting                                                            
resumes. (A  separate meeting was  held in this location  at 2:06 pm                                                            
and  is included  in  the  audio file  for  this  date.)  It is  not                                                            
possible to select the  exact portion of the recording relating to a                                                            
particular  topic until  the computer  system was  restored at  4:15                                                            
pm.]                                                                                                                            
                                                                                                                                
                                                                                                                                
     COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 15(L&C) am                                                                         
     "An  Act  relating   to  outdoor  recreation  lodge   alcoholic                                                            
     beverage  licenses; relating  to transfer  of certain  beverage                                                            
     dispensary  licenses issued before June 6, 1985;  and providing                                                            
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MICHAEL  PAWLOWSKI, Staff  to sponsor  Representative  Kevin  Meyer,                                                            
testified  this bill  is intended  to create  a  liquor license  for                                                            
outdoor recreation  lodges. These lodges have are  an important part                                                            
of the  State economy.  A liquor  license specific  to the needs  of                                                            
these lodges has  never been established. This creates  problems for                                                            
communities near  the location of some of the lodges  as well as for                                                            
wholesale alcohol  distributors. A  wholesaler may not sell  alcohol                                                            
for resale to a party that  does not possess a liquor license. Under                                                            
the current  system, lodges either  provide alcohol to their  guests                                                            
at no charge  or as part of the package  rate. This is in  violation                                                            
of statute.                                                                                                                     
                                                                                                                                
Mr. Pawlowski  stated that  this legislation  would provide  for the                                                            
issuance of a limited liquor  license that could not be transferred,                                                            
allows alcohol  to only be served to registered overnight  guests or                                                            
off duty  staff,  and only  served on  the licensed  premises or  in                                                            
conjunction with guided outdoor recreation activities.                                                                          
                                                                                                                                
Mr.  Pawlowski  explained  this  license   is  intended  to  address                                                            
situations involving  lodges located near communities  that prohibit                                                            
the use of alcoholic beverages.                                                                                                 
                                                                                                                                
Senator  Hoffman asked  the definition  of an  outdoor recreational                                                             
lodge as it pertains to this bill.                                                                                              
                                                                                                                                
Mr.  Pawlowski  cited subsection   (c) of  Sec.  04.11.225.  Outdoor                                                            
recreation  lodge license.,  added  by Section  2 of  the bill.  The                                                            
language reads as follows.                                                                                                      
                                                                                                                                
          (c) In this section, "outdoor recreation lodge" means a                                                               
     business  that provides overnight accommodations  and meals, is                                                            
     primarily  involved in  offering opportunities  for persons  to                                                            
     engage in  outdoor recreation activities, and  has a minimum of                                                            
     two guest rooms.                                                                                                           
                                                                                                                                
Mr.  Pawlowski noted  the  intent  is include  lodges  at which  the                                                            
primary  purpose of its  guests would  be to partake  in an  outdoor                                                            
recreation activity.                                                                                                            
                                                                                                                                
Senator  Hoffman  told  of  an  outfit  operating  in  the  election                                                            
district he represents.  At this site, tents are temporarily erected                                                            
on platforms.  He asked  if lodging  such as this  would qualify  as                                                            
guest rooms  and if  the operator  would be eligible  to obtain  the                                                            
license.                                                                                                                        
                                                                                                                                
Mr. Pawlowski  replied that other criterion would  apply. A licensee                                                            
must be  available to serve  alcohol and the  alcohol could  only be                                                            
served in conjunction  with a guided outdoor activity.  If the sites                                                            
were offered  solely as a  place to stay,  the license would  not be                                                            
available.                                                                                                                      
                                                                                                                                
Senator  Hoffman  stated  that guided  fishing  activities  are  the                                                            
purpose  of  this operation.  Conflicts  exist  between  the  Native                                                            
organization and  the guides, who claim that alcohol  is not served.                                                            
Local  residents  however  attest  to witnessing  cases  of  alcohol                                                            
passing through the airport.                                                                                                    
                                                                                                                                
Mr.  Pawlowski  identified   this  situation  as  the   reason  this                                                            
legislation   is  necessary.  With   the  issuance  of  a   license,                                                            
communities can provide  input and the State regulators have control                                                            
over the business.                                                                                                              
                                                                                                                                
Senator Dyson asked if  this license would apply to floating lodges.                                                            
                                                                                                                                
Mr. Pawlowski understood  that the license would apply to operations                                                            
with at least two guest  rooms that provide overnight accommodations                                                            
and meals  in which  the  primary purpose  is to  involve people  in                                                            
outdoor recreation.                                                                                                             
                                                                                                                                
Senator Dyson asked about self-propelled floating operations.                                                                   
                                                                                                                                
Mr.  Pawlowski  was unsure  and  deferred  to  the director  of  the                                                            
Alcohol Beverage Control Board.                                                                                                 
                                                                                                                                
DOUG GRIFFIN,  Director, Alcohol Beverage Control  Board, Department                                                            
of Public Safety,  testified from an offnet location  that the issue                                                            
of floating lodges has  been discussed. It was determined that these                                                            
facilities  could be  licensed  under the  provision  of this  bill.                                                            
Addressing  certain  factors would  be necessary  in  the event  the                                                            
float would  be present for any period  within the  boundaries  of a                                                            
local  government.  Providing  this  license  to a  float  operating                                                            
outside the boundaries  of a local government could be preferable to                                                            
the currently  applied carrier license.  The vessel specifically  in                                                            
question  is a barge that  is not self propelled  but is towed  from                                                            
one location to  another by a tugboat. This vessel  did not meet the                                                            
qualifications  imposed  for a  carrier  license, which  applies  to                                                            
boats, ships, trains, airplanes, etc.                                                                                           
                                                                                                                                
Co-Chair  Wilken referenced  the definition  of "outdoor  recreation                                                            
lodge" as  a business. He  asked if this  implies that the  licensee                                                            
would be a commercial entity  that would possess a business license.                                                            
                                                                                                                                
Mr. Griffin affirmed. He  elaborated that the Board first determines                                                            
whether an applicant  is registered as a corporation  before issuing                                                            
a license.  The Board must  be able to deal  with a legal  entity in                                                            
the event of problems pertaining to the license.                                                                                
                                                                                                                                
Co-Chair Green  asked if the language  of the bill is sufficient  in                                                            
stipulating that a business must be licensed.                                                                                   
                                                                                                                                
Mr. Griffin  replied  that if  the business  is a  corporation  or a                                                            
limited liability, the language is sufficient.                                                                                  
                                                                                                                                
Co-Chair Wilken  asked if a sole proprietor or partnership  would be                                                            
included.                                                                                                                       
                                                                                                                                
Mr.  Griffin  deferred  to  the  Division  of  Corporations  of  the                                                            
Department of Revenue.  The Alcohol Beverage Control Board's concern                                                            
is the accountability  and potential  culpability of liquor  license                                                            
holders.  The Board  does have  accountability  and culpability  for                                                            
taking  action  against  an  individual   in  a  sole  propriety  or                                                            
partnership operation.                                                                                                          
                                                                                                                                
Co-Chair  Wilken understood  that  a sole propriety  or partnership                                                             
must obtain a business license to conduct commercial operations.                                                                
                                                                                                                                
Senator Hoffman  asked the number  of applications for this  license                                                            
the witnesses anticipates would be received.                                                                                    
                                                                                                                                
Mr. Griffin was  unsure and estimated approximately  50 applications                                                            
would be submitted.                                                                                                             
                                                                                                                                
Mr. Griffin noted  that some facilities are "over-licensed"  in that                                                            
they  possess a  liquor dispensary  license,  which  allows for  the                                                            
distribution of alcohol  to anyone, not just registered guests. This                                                            
presents  other problems  especially in rural  Alaska. The  proposed                                                            
lodge  license would  be preferred,  as  it limits  distribution  to                                                            
guests.                                                                                                                         
                                                                                                                                
Senator Dyson  asked if a  bed and breakfast  operation that  serves                                                            
meals family  style is allowed  to serve a  glass of wine to  guests                                                            
without obtaining a liquor license.                                                                                             
                                                                                                                                
Mr. Griffin responded that  the Board does not regulate a "true" bed                                                            
and breakfast  in which the  owner or operator  resides on  site. In                                                            
this instance the business  is operated within the home. To regulate                                                            
these operations would require a significantly higher budget.                                                                   
                                                                                                                                
Senator Hoffman qualified  that such practices is not legal in a dry                                                            
community.                                                                                                                      
                                                                                                                                
Mr. Griffin confirmed.                                                                                                          
                                                                                                                                
Senator Hoffman asked if  this would be allowed in a damp community.                                                            
                                                                                                                                
Mr.  Griffin replied  that  serving  alcohol to  guests  in a  home-                                                            
operated bed and breakfast would be allowed.                                                                                    
                                                                                                                                
Amendment #1: This amendment  inserts "relating to brewpub licenses"                                                            
into the title of the bill  on page 1, following line 1. The amended                                                            
bill title reads as follows.                                                                                                    
                                                                                                                                
     An  Act  relating  to brewpub  licenses;  relating  to  outdoor                                                            
     recreation  lodge  alcoholic  beverage  licenses;  relating  to                                                            
     transfer of certain  beverage dispensary licenses issued before                                                            
     June 6, 1985; and providing for an effective date.                                                                         
                                                                                                                                
This amendment  also inserts new bill sections on  page 1, following                                                            
line 6 to read as follows.                                                                                                      
                                                                                                                                
     Section 2. AS 04.11.135(a) is amended to read:                                                                             
          (a) A brewpub license authorizes the holder of a beverage                                                             
     dispensary license to                                                                                                      
                (1)  manufacture  on  premises  licensed  under  the                                                            
     beverage  dispensary license  not more than 150,000  gallons of                                                            
     beer in a calendar year;                                                                                                   
                (2) sell  beer  manufactured  on  premises  licensed                                                            
     under  the beverage dispensary  license for consumption  on the                                                            
     licensed  premises or other licensed  premises of the  beverage                                                            
     dispensary  licensee  that  are  also licensed  as  a  beverage                                                            
     dispensary;                                                                                                                
                (3) sell beer manufactured on  the premises licensed                                                            
     under  the beverage  dispensary  license in  quantities of  not                                                            
     more than five gallons  per day to an individual who is present                                                            
     on the licensed premises;                                                                                                  
                (4) provide  a small  sample of  the brewpub's  beer                                                            
     manufactured  on the premises free of charge  unless prohibited                                                            
     by AS 04.16.030; and                                                                                                       
                (5) sell beer manufactured on  the premises licensed                                                            
     under the  beverage dispensary license to a person  licensed as                                                            
     a wholesaler  under AS 04.11.160 [; SALES UNDER  THIS PARAGRAPH                                                            
     MAY  NOT EXCEED 15,000  GALLONS OR THE  AMOUNT SOLD UNDER  THIS                                                            
     PARAGRAPH  IN CALENDAR  YEAR 2001, PLUS  10 PERCENT,  WHICHEVER                                                            
     AMOUNT IS GREATER].                                                                                                        
                                                                                                                                
     Section 3.  AS 04.11.135(a) is amended to read:                                                                            
          (a) A brewpub license authorizes the holder of a beverage                                                             
     dispensary license to                                                                                                      
                (1)  manufacture  on  premises  licensed  under  the                                                            
     beverage  dispensary license  not more than 150,000  gallons of                                                            
     beer in a calendar year;                                                                                                   
                (2) sell  beer  manufactured  on  premises  licensed                                                            
     under  the beverage dispensary  license for consumption  on the                                                            
     licensed  premises or other licensed  premises of the  beverage                                                            
     dispensary  licensee  that  are  also licensed  as  a  beverage                                                            
     dispensary;                                                                                                                
                (3) sell beer manufactured on  the premises licensed                                                            
     under  the beverage  dispensary  license in  quantities of  not                                                            
     more than five gallons  per day to an individual who is present                                                            
     on the licensed premises;                                                                                                  
                (4) provide  a small  sample of  the brewpub's  beer                                                            
     manufactured  on the premises free of charge  unless prohibited                                                            
     by AS 04.16.030; and                                                                                                       
                (5) sell beer manufactured on  the premises licensed                                                            
     under the  beverage dispensary license to a person  licensed as                                                            
     a wholesaler  under  AS 04.11.160; sales  under this  paragraph                                                          
     may  not exceed 15,000  gallons or the  amount sold under  this                                                          
     paragraph  in calendar  year 2001, plus  10 percent,  whichever                                                          
     amount is greater.                                                                                                       
                                                                                                                                
     Section 4. AS 04.11.135(d) is amended to read:                                                                             
          (d)  Notwithstanding (a) of this section,  the holder of a                                                            
     brewpub license  who, under the provisions of  AS 04.11.450(b),                                                            
     formerly  held a  brewery license  and a  restaurant or  eating                                                            
     place  license  and  who, under  the  former  brewery  license,                                                            
     manufactured  beer  at  a  location  other  than  the  premises                                                            
     licensed  under the former restaurant  or eating place  license                                                            
     may                                                                                                                        
                (1) manufacture not more than 150,000 gallons of                                                                
     beer  in a calendar  year on premises  other than the  premises                                                            
     licensed under the beverage dispensary license;                                                                            
                (2) provide a small sample of the manufactured beer                                                             
     free of charge at  the location the beer is manufactured unless                                                            
     prohibited by AS 04.16.030; and                                                                                            
                (3) sell the beer authorized to be manufactured                                                                 
     under this subsection                                                                                                      
                     (A) on the premises licensed under the beverage                                                            
          dispensary  license  or  other  licensed premises  of  the                                                            
          beverage  dispensary licensee that are  also licensed as a                                                            
          beverage dispensary;                                                                                                  
                     (B) to a wholesaler licensed under AS                                                                      
          04.11.160;  [SALES UNDER THIS SUBPARAGRAPH  MAY NOT EXCEED                                                            
          15,000  GALLONS OR THE AMOUNT SOLD UNDER THIS SUBPARAGRAPH                                                            
          IN  CALENDAR YEAR 2001, PLUS 10 PERCENT,  WHICHEVER AMOUNT                                                            
          IS GREATER;] or                                                                                                       
                     (C) to an individual who is present on the                                                                 
          premises  described under (A) of this  paragraph, or where                                                            
          the  beer is manufactured, in quantities  of not more than                                                            
          five gallons per day.                                                                                                 
                                                                                                                                
     Section 5.  AS 04.11.135(d) is amended to read:                                                                            
          (d)  Notwithstanding (a) of this section,  the holder of a                                                            
     brewpub license  who, under the provisions of  AS 04.11.450(b),                                                            
     formerly  held a  brewery license  and a  restaurant or  eating                                                            
     place  license  and  who, under  the  former  brewery  license,                                                            
     manufactured  beer  at  a  location  other  than  the  premises                                                            
     licensed  under the former restaurant  or eating place  license                                                            
     may                                                                                                                        
                (1) manufacture not more than 150,000 gallons of                                                                
     beer  in a calendar  year on premises  other than the  premises                                                            
     licensed under the beverage dispensary license;                                                                            
                (2) provide a small sample of the manufactured beer                                                             
     free of charge at  the location the beer is manufactured unless                                                            
     prohibited by AS 04.16.030; and                                                                                            
                (3) sell the beer authorized to be manufactured                                                                 
     under this subsection                                                                                                      
                     (A) on the premises licensed under the beverage                                                            
          dispensary  license  or  other  licensed premises  of  the                                                            
          beverage  dispensary licensee that are  also licensed as a                                                            
          beverage dispensary;                                                                                                  
                     (B)   to    a   wholesaler    licensed    under                                                            
          AS  04.11.160;  sales  under  this  subparagraph  may  not                                                          
          exceed  15,000  gallons  or  the amount  sold  under  this                                                          
          subparagraph   in calendar  year  2001, plus  10  percent,                                                          
          whichever amount is greater; or                                                                                     
                     (C) to an individual who is present on the                                                                 
          premises  described under (A) of this  paragraph, or where                                                            
          the  beer is manufactured, in quantities  of not more than                                                            
          five gallons per day."                                                                                                
                                                                                                                                
This amendment also provides  that sections 2 and 4 take effect July                                                            
1, 2005 and sections 3 and 5 take effect December 31, 2005.                                                                     
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
Co-Chair  Green  objected  for an  explanation.  She noted  a  title                                                            
change would be required if this amendment were adopted.                                                                        
                                                                                                                                
Mr.  Pawlowski  relayed  that  Representative  Meyer  supports  this                                                            
amendment. It  would create a temporary compromise  for brewpubs and                                                            
brewers in an attempt to  "better solution to the operation of their                                                            
business in  the State." It would  provide a five-month reprieve  of                                                            
the restriction  on the amount of beer that a brewpub  is allowed to                                                            
sell to a wholesaler.  The intent is that the impacted  groups would                                                            
present a long-term solution  to the legislature the following year.                                                            
                                                                                                                                
Co-Chair  Green noted the  presence of  representatives of  brewpubs                                                            
available to respond to questions.                                                                                              
                                                                                                                                
Senator  Olson requested  assurance  that this  amendment would  not                                                            
impact dry or damp communities.                                                                                                 
                                                                                                                                
Mr. Pawlowski  replied that  the amendment  would have no impact  on                                                            
dry  communities.  A  local  option  always   supersedes  any  other                                                            
license.  He qualified he  was unfamiliar  with the laws  regulating                                                            
the wholesale distribution of liquor to damp communities.                                                                       
                                                                                                                                
Co-Chair  Wilken  expressed initial  concern,  as a  constituent  is                                                            
involved in  brewpub operations. Upon  consulting this constituent,                                                             
he learned that the "little  guy" is protected in this amendment. He                                                            
therefore supported the amendment.                                                                                              
                                                                                                                                
Co-Chair  Green  removed  her  objection  to  the  adoption  of  the                                                            
amendment.                                                                                                                      
                                                                                                                                
The amendment was ADOPTED with no further objection.                                                                            
                                                                                                                                
Co-Chair  Wilken remained  uncertain that the  language in  the bill                                                            
would  require  that  lodges   owned  by  a  sole  proprietor  or  a                                                            
partnership obtain the  alcohol dispensary license. He suggested the                                                            
definition  of business  be clarified  in  this instance  or that  a                                                            
provision inserted to require  that an outdoor recreation lodge must                                                            
possess a  business license  to qualify for  the alcohol  dispensary                                                            
license.                                                                                                                        
                                                                                                                                
Mr. Pawlowski remarked  the sponsor's intent is that the legislation                                                            
is  to apply  to  businesses.  Therefore  a provision  requiring  an                                                            
operator  to secure  a business  license before  qualifying for  the                                                            
alcohol license  is appropriate. The language currently  in the bill                                                            
is  based   on  the  AS  4.11.090(d)   statute  governing   beverage                                                            
dispensary license.                                                                                                             
                                                                                                                                
Co-Chair  Wilken  requested  an opportunity   to have  an  amendment                                                            
drafted to provide for the clarifying language.                                                                                 
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
                                                                                                                                
     COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 20(JUD)                                                                           
      "An Act relating to offenses against unborn children."                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Dyson,  sponsor of the bill, testified this  legislation had                                                            
undergone extensive review  in the Senate Health and Social Services                                                            
and  Judiciary committees.  He  requested  the Committee  work  from                                                            
COMMITTEE SUBSTITUTE SB  20 (JUD), Version "R" rather than COMMITTEE                                                            
SUBSTITUTE SB 20 (2ndJUD), Version "U".                                                                                         
                                                                                                                                
Co-Chair  Green noted no  objection was voiced  to this request  and                                                            
COMMITTEE SUBSTITUTE SB 20 (JUD) was before the Committee.                                                                      
                                                                                                                                
Senator  Dyson stated that  this legislation  "follows" the  federal                                                            
Unborn Child Protection  Act. It was discovered that the federal law                                                            
only applies in  those instances when a federal crime  was committed                                                            
on  federal  property.  The State  attorney  general  recommended  a                                                            
parallel  State law be enacted  to allow for  the prosecution  of an                                                            
assault  or  murder of  an  unborn  child in  conjunction  with  the                                                            
prosecution of an assault or murder of a pregnant woman.                                                                        
                                                                                                                                
Co-Chair Green reminded that the Senate Finance Committee                                                                       
considered similar legislation the previous session. The                                                                        
legislation before the Committee presently is an improvement.                                                                   
                                                                                                                                
Senator Dyson concurred.                                                                                                        
                                                                                                                                
ANNA FRANKS, Chief Executive  Officer, Planned Parenthood of Alaska,                                                            
testified  via  teleconference   from  Anchorage  to  the  COMMITTEE                                                            
SUBSTITUTE  SB  20  (2ndJUD)  version  of the  bill.  She  read  her                                                            
testimony into the record as follows.                                                                                           
                                                                                                                                
     We  would   like  to  thank  Senator  Dyson  for   his  ongoing                                                            
     commitment  to  children  and  families.  First  and  foremost,                                                            
     Planned Parenthood  agrees with Senator Dyson  that the loss of                                                            
     a pregnancy  due to an  act of violence  is a tragic event.  We                                                            
     share  his goal  of  making it  a greater  crime  when such  an                                                            
     unfortunate circumstance happens.                                                                                          
                                                                                                                                
     However,  we  are  unable  to support  the  bill  as  currently                                                            
     written.  As I  have indicated  when meeting  with many  of you                                                            
     individually,  we  have  an  alternative  approach  that  would                                                            
     accomplish  greater penalties when a pregnant  woman is harmed.                                                            
     We view  legislation such as  this as part of a national  trend                                                            
     designed  to erode the foundation of a woman's  right to choose                                                            
     as set  forth in Roe v. Wade  by elevating the legal  status of                                                          
     all stages of prenatal development under state laws.                                                                       
                                                                                                                                
     Indeed, Senator Dyson  has indicated that this is the intent of                                                            
     the bill. With all  respect, however, Senator Dyson also stated                                                            
     during his comments  to Senate Judiciary that the intent of the                                                            
     bill is not to undermine the right to legal abortion.                                                                      
                                                                                                                                
     I therefore suggest  that an alternative we can all agree on: a                                                            
     penalty  enhancement  approach that  would make  it one  felony                                                            
     count higher  to harm a pregnant woman when the  result ends in                                                            
     miscarriage  or  stillbirth.  We've  consulted with  our  legal                                                            
     staff  and have learned this  approach is more likely  to reach                                                            
     offenders  because the language is much clearer.  The resulting                                                            
     penalty  would be  as stiff as  the penalties  outlined  in the                                                            
     current version of SB 20.                                                                                                  
                                                                                                                                
     There's  an area within  this bill I  hope this committee  will                                                            
     address,  particularly  because the fiscal  notes to this  bill                                                            
     are zero or unknown.  The current bill does not exclude actions                                                            
     a mother  may take against herself. Perhaps,  but I don't think                                                            
     so, the Department  of Law is there and could speak to this. In                                                            
     particular,  I call  your attention  to page  3, Section  2 and                                                            
     specifically the provisions  within the first and second-degree                                                            
     assault  sections.  The  language  now says  that  a  premature                                                            
     birth,  that is the birth  before 37 weeks,  or the birth  of a                                                            
     baby   weighing  less   than  five  and   one-half  pounds   is                                                            
     [indiscernible]  evidence  of  serious physical  injury.  Under                                                            
     this  bill, premature  births would be  considered a basis  for                                                            
     examining  whether or  not a woman would  be guilty of  assault                                                            
     against   her  own  child  in   uterus.  I  find  this   to  be                                                            
     incomprehensible.                                                                                                          
                                                                                                                                
     My  close friend  gave birth to  her baby  at 28 weeks,  almost                                                            
     three months premature.  Her son weighed just three pounds. She                                                            
     herself  was  a premature  baby  who  also weighed  just  three                                                            
     pounds  but  the evidence  as to  whether  or not  this may  be                                                            
     hereditary  is inconclusive.  She  did not smoke.  She did  not                                                            
     drink  and in fact had  a healthy pregnancy.  Yet if this  bill                                                            
     passes,   births  like  these,  or  perhaps  even  spontaneous                                                             
     miscarriages, would be called into questions.                                                                              
                                                                                                                                
     Smoking  while  pregnant is  my final  example.  The new  State                                                            
     website for pregnancy  [indiscernible] states that pregnant who                                                            
     smoke  should be aware  of increased  risks to their  offspring                                                            
     including  spontaneous   abortion,  low  birth  weight,  sudden                                                            
     infant death  syndrome, etc. Would smoking while  pregnant then                                                            
     result  in charges  against a woman?  Is this  what we  want to                                                            
     accomplish through this bill.                                                                                              
                                                                                                                                
     Women  need to understand the  risks of smoking and  everything                                                            
     must  be  done to  sway  their behaviors.  But  do  we want  to                                                            
     criminalize  this  and suffer  the emotional  implications  and                                                            
     indeed  the financial  implications when  approximately  one in                                                            
     ten children in Alaska are low birth weight?                                                                               
                                                                                                                                
     This is a policy call that should be seriously considered.                                                                 
                                                                                                                                
     In  closing,  the current  version  of SB  20 could  create  an                                                            
     environment  of  fear, as  women risk  their  lives to  protect                                                            
     themselves  or forego medical treatment because  they're afraid                                                            
     they may be charged.                                                                                                       
                                                                                                                                
     I urge  this committee  to amend the  bill to include  language                                                            
     that  allows women to  have healthy children  and allows  us to                                                            
     have  stricter  penalties  against those  in society  who  harm                                                            
     women.  Planned Parenthood  is  very willing  to work with  the                                                            
     committee to accomplish this.                                                                                              
                                                                                                                                
CASSANDRA JOHNSON testified via teleconference from Anchorage as                                                                
follows.                                                                                                                        
                                                                                                                                
     I  worked for  nine years  with domestic  violence victims  and                                                            
     survivors  including  two  years  with  the  State  Counsel  on                                                            
     Domestic   Violence  and  Sexual  Assault.  I'm   grateful  the                                                            
     legislature  is  willing to  address this  devastating  problem                                                            
     that is  all too prevalent in  our state. But I cannot  support                                                            
     this bill in its current draft.                                                                                            
                                                                                                                                
     Domestic  violence experts  nationwide  are unanimous in  their                                                            
     opposition  to bills  such as  this. Previous  committees  have                                                            
     heard  from several such experts  in our own state and  they've                                                            
     done  a wonderful  job about  [indiscernible]  the issues.  But                                                            
     some points are worth repeating.                                                                                           
                                                                                                                                
     Since  the late 1970s, Alaska  has been in the top five  states                                                            
     for  reported sexual assault.  I think  we can all agree  it is                                                            
     not  a  distinction  that  we  want  to have  [indiscernible].                                                             
     Homicide  is the  number one  killer of pregnant  women  in our                                                            
     country:  240,000 pregnant women,  six percent of all  pregnant                                                            
     women are battered  each year. Injury to the fetus is first and                                                            
     foremost  an  injury  to  a  pregnant  woman  where  the  fetus                                                            
     resides. She is the  one who deals with the increased emotional                                                            
     tensions  and stress  that usually precede  a violent  episode.                                                            
     She feels  the constant fear. She feels the physical  pain. She                                                            
     works  hard  to hide  the  physical  and emotional  scars  from                                                            
     family  and friends. It  is imperative  that any fair  and just                                                            
     legislation deal with that as a primary issue.                                                                             
                                                                                                                                
     In 2002 Alaska led  the nation in women killed by a significant                                                            
     other.  Clearly something needs  to be done. What can  be done.                                                            
     Shelters   and  domestic   violence  programs   in  Alaska   do                                                            
     extraordinary  things every day  to improve the lives  of women                                                            
     and  children. And  they do  it with relatively  little  funds.                                                            
     They  can definitely  use an increase  in State funding  beyond                                                            
     what has been appropriated this session.                                                                                   
                                                                                                                                
     We need to educate  all members of our society that we will not                                                            
     tolerate  gender violence  in Alaska.  This education  needs to                                                            
     start   at  a  very   early  age.  This   body  could   mandate                                                            
     comprehensive  age-appropriate education programs  about gender                                                            
     violence in all schools in the State.                                                                                      
                                                                                                                                
     Certain  enhancements   would  recognize  the  crime  committed                                                            
     against  a pregnant woman  and give  courts the flexibility  to                                                            
     consider the harm or loss of the fetus.                                                                                    
                                                                                                                                
     While  I  understand  this  bill  would   not  criminalize  the                                                            
     pregnant  women who returns to  an abusive partner.  What about                                                            
     the woman who delays  or does not seek proper medical attention                                                            
     after  a violent beating for  fear her partner or herself  will                                                            
     be charged under this  bill. That could have disastrous effects                                                            
     on her physical  and emotional health and she  will most likely                                                            
     return to suffering in silence.                                                                                            
                                                                                                                                
     Acts  of violence  against  women are  abhorrent  but they  are                                                            
     especially disturbing  when committed against a pregnant woman.                                                            
     When a violent crime  causes an injury to a pregnant woman that                                                            
     results in  a miscarriage or stillborn we all  share the desire                                                            
     to ensure that the  criminal justice system responds decisively                                                            
     and  firmly to  exact the  appropriate  punishment.  Protecting                                                            
     pregnant women and  families from violence is a serious problem                                                            
     that  deserves  to  be elevated  above  political  agendas  and                                                            
     partisan politics.                                                                                                         
                                                                                                                                
MICHAEL  MACLEUD-BALL, Executive  Director,  Alaska Civil  Liberties                                                            
Union, testified  via teleconference  from  Anchorage to "echo"  the                                                            
comments of  the previous two speakers.  He continued his  testimony                                                            
as follows.                                                                                                                     
                                                                                                                                
     The Alaska  Civil Liberties Union  opposes the passage  of this                                                            
     bill  in  its present  form.  We  do also  support  efforts  to                                                            
      enhance punishment for attacks against pregnant women.                                                                    
                                                                                                                                
     We think  that the current  bill in its  current form  has some                                                            
     potential  constitutional problems.  In particular its  related                                                            
     to  the lack of  an exemption  for a woman  committing  harmful                                                            
     acts  against  herself  resulting  in harm  to the  fetus.  The                                                            
     privacy  right  as you  know guarantees  the  woman's right  to                                                            
     control  her own  body in  the absence  of  a compelling  state                                                            
     interest.  The Roe v. Wade decision has interpreted  that right                                                          
     to protect  the right to abortion unilaterally,  in some stages                                                            
      during the pregnancy and conditionally in other times.                                                                    
                                                                                                                                
     This law  would criminalize activity with respect  to the fetus                                                            
     anyway, that is less  harmful than abortion. If a woman has the                                                            
     right  to abort  under the  constitution, it  simply stands  to                                                            
     reason  that she has  the right to do  other things during  her                                                            
     pregnancy that fall short of abortion.                                                                                     
                                                                                                                                
     The  other  interest  affect  of  this  bill is  that  it  will                                                            
     encourage more abortions.  Consider a woman who's anxious about                                                            
     an activity  that she has engaged in during pregnancy  that may                                                            
     result  in  harm to  the fetus.  Why  would she  risk  criminal                                                            
     liability by bearing  that child when she could avoid it simply                                                            
     by having an abortion.                                                                                                     
                                                                                                                                
     This  bill   unfairly  penalizes  wholly  innocent   and  legal                                                            
     behavior.  So for example lets assume that a  woman is pregnant                                                            
     but  she  does  not  yet know  she's  pregnant.  She  might  be                                                            
     drinking  and smoking  up a storm and  ultimately have  harmful                                                            
     affect on the child.  It seems to me that there are a couple of                                                            
     implications  to  this. First  and foremost,  the  cost to  the                                                            
     State in attempting  to prove criminal activity will sky rocket                                                            
     it seems  to me because it will be very difficult  to determine                                                            
     from what  behavior the harm to the child might  have resulted.                                                            
     Would it  be the drinking that occurred in the  early stages of                                                            
     pregnancy  or was it drinking that occurred in  the late stages                                                            
     of pregnancy? Would  it have been one particular act or several                                                            
     different  acts  and  how  does one  prove  exactly  where  the                                                            
     dividing   line  is  there?  …  Let's  just  take   the  strict                                                            
     hypothetical,  where  a woman  drinks  a lot  during the  early                                                            
     stage of pregnancy  when she doesn't even know she is pregnant.                                                            
     Is she criminal [indiscernible]?  How does the State prove that                                                            
     the harm to the fetus  happened from the activities during that                                                            
     stage.                                                                                                                     
                                                                                                                                
     We think there are  real proof problems for the State that will                                                            
     increase  their prosecution costs. I don't have  any numbers on                                                            
     this because  it's a purely hypothetical situation.  Suffice to                                                            
     say though  that we do think that there are practical  problems                                                            
     as  well  as constitutional  problems  with  this  bill in  its                                                            
     present  form and therefore  the Alaska  Civil Liberties  Union                                                            
     continues to oppose its passage.                                                                                           
                                                                                                                                
Senator Dyson  asked if the witness intended to infer  that the ACLU                                                            
hold  the position  that  a woman  should be  allowed  to cause  any                                                            
damage  to her  unborn  child and  that such  behaviors  would be  a                                                            
protected act.                                                                                                                  
                                                                                                                                
Mr. Macleud-Ball replied  that the ACLU does not take that position,                                                            
but rather supports  the position of the constitutional  right to an                                                            
abortion that is unilateral  during certain stages of the pregnancy.                                                            
Subsequently  a woman should  be protected  against prosecution  for                                                            
other activities  that would be less harmful to the  fetus. There is                                                            
no clear answer  to the question as  the issue has not been  brought                                                            
before the courts. However,  the ACLU deems important the concern of                                                            
whether this legislation would cause a constitutional violation.                                                                
                                                                                                                                
Senator  Dyson  concluded  that  his  evaluation   of  the  witness'                                                            
position was correct.                                                                                                           
                                                                                                                                
BRENDA STANSILL, Director,  Center for Non-Violent Living, and chair                                                            
of a steering  committee of the Alaska Counsel on  Domestic Violence                                                            
and Sexual  Assault,  testified via  teleconference  from an  offnet                                                            
location  in appreciation  of the  language inserted  into the  bill                                                            
providing  that  victims of  domestic  violence  would  not be  held                                                            
accountable  for  the  actions  of  someone  else  as  a  result  of                                                            
returning  to an abusive  situation. However,  this was just  one of                                                            
many concerns the Center had with regard to this legislation.                                                                   
                                                                                                                                
Ms. Stansill remained  concerned about the woman "riding  the roller                                                            
coaster" who does  know she is pregnant. In addition  she questioned                                                            
whether  snowmachiners,  horseback  riders, water  skiers,  marathon                                                            
runner   and  other  active   women  would   be  protected   against                                                            
prosecution  under  the  provisions  of this  legislation.  Would  a                                                            
pregnant woman  be held liable for  any strenuous activity.  She was                                                            
unsure  "where  this  bill stopped"  and  noted  the  "never  ending                                                            
question of 'what if'".                                                                                                         
                                                                                                                                
Ms. Stansill  suggested returning  the focus to a crime against  the                                                            
mother.  If  a woman  is  abused  and  miscarries  or the  fetus  is                                                            
damaged, the offender  should be charged with a higher-level  crime.                                                            
She cited a North Carolina state law as a viable solution.                                                                      
                                                                                                                                
Ms. Stansill  also  suggested that  such offenses  be considered  an                                                            
aggravator in sentencing  guidelines. Currently a perpetrator guilty                                                            
of beating a pregnant woman  with fists is convicted of third degree                                                            
assault,  a misdemeanor.  In  most instances,  if  such an  offender                                                            
pleads guilty to this offense,  the charge would be reduced to forth                                                            
degree assault. The penalty should "fit the crime".                                                                             
                                                                                                                                
Ms. Stansill expressed  support for protecting children and asserted                                                            
that those  who perpetrate  violence against  a pregnant woman  that                                                            
results  in harm  to an  unborn child  should be  held accountable.                                                             
However,  she  doubted  this bill  would  accomplish  this  mission.                                                            
Instead,  as with  other  efforts  nationally,  the focus  has  been                                                            
directed at  the possibility of pregnant  mothers inflicting  damage                                                            
on their unborn children.                                                                                                       
                                                                                                                                
Ms.  Stansill  recommended  the  bill  be  returned  to  the  Senate                                                            
Judiciary Committee for further amendments.                                                                                     
                                                                                                                                
Co-Chair  Green emphasized  that activities  associated with  sports                                                            
would not be criminalized  under the provisions of this legislation.                                                            
She pointed  out the multiple stipulations  of "intent" "knowingly"                                                             
and "extreme indifference" required for prosecution.                                                                            
                                                                                                                                
Co-Chair  Green spoke  to  the primary  difference  between the  two                                                            
Senate  Judiciary Committee  versions  of the bill.  The work  order                                                            
number of the second committee  substitute adopted by that committee                                                            
is 24-LS0197\U.  She noted  that the previous  witness' comments  to                                                            
the provision  exempting  pregnant women  who return  to an  abusive                                                            
relationship, were directed to Version "U".                                                                                     
                                                                                                                                
Senator  Hoffman  established  that  the  language  in  Version  "U"                                                            
relating  to holding  harmless  a pregnant  woman who  returns  to a                                                            
domestic violence situation was not included in Version "R".                                                                    
                                                                                                                                
Co-Chair Green affirmed.                                                                                                        
                                                                                                                                
ANDREA DOLL  testified on  her own behalf in  Juneau that this  is a                                                            
"fairly  dangerous bill"  because it  provides status  to an  unborn                                                            
child and to the  mother as two separate legal entities.  This would                                                            
make it  impossible for  a woman  to make decisions  about her  body                                                            
without the threat  of criminal ramifications. She  suggested that a                                                            
differential be made between  a fetus that is totally dependant upon                                                            
the  mother's  body  and  a  fetus  that could  be  self-sustained.                                                             
However,  this is not the  issue. Rather the  issue is that  a woman                                                            
has a right to govern her  body. If a woman does not have this right                                                            
she  questioned  the claim  that  lawmakers  support  human  rights.                                                            
Support for human rights should include the rights of women.                                                                    
                                                                                                                                
Ms. Doll assumed that violence  against women is a crime. She argued                                                            
for  greater  protection  of  women. She  recalled  the  history  of                                                            
women's  rights when  women were  jailed and  tortured because  they                                                            
wanted the  right to vote. Women still  fight today for their  human                                                            
rights. Although  women are allowed the right to vote,  the right to                                                            
her body had been circumvented.                                                                                                 
                                                                                                                                
Ms. Doll  requested the  Committee amend  the bill  to make  it less                                                            
"radical", as  it appears to be written in "black  and white terms".                                                            
It should  reflect more  compromise  and should  be returned  to the                                                            
Senate Judiciary Committee for greater review.                                                                                  
                                                                                                                                
Senator  Dyson  remarked   that  he  had  attempted  to  respond  to                                                            
criticisms  raised. The  Department  of Law advised  that the  first                                                            
Senate Judiciary  Committee substitute  should be considered  rather                                                            
than the second version.  He asserted to the "virtual impossibility"                                                            
that  a woman  would  be charged  for her  activities  unless  those                                                            
activities were  "raised to the level" of "knowingly  and recklessly                                                            
endangering"  the fetus.  In discussion over  attempts to  eliminate                                                            
all the "what  ifs", it was determined that the language  of Version                                                            
"R" is sufficient.                                                                                                              
                                                                                                                                
Senator Dyson shared that  he and Senator Hollis French investigated                                                            
the option of increasing  penalties for crimes of violence committed                                                            
against  a pregnant  woman. They  concluded that  such provision  is                                                            
pertinent to  a different section  of law and would create  "several                                                            
areas of possible  conflict" including  the possibility of  a double                                                            
jeopardy  offense.  The two  senators  agreed  to work  together  to                                                            
enhance penalties  for assaults on women, particularly  in instances                                                            
of domestic violence. However, this legislation is not the                                                                      
appropriate method.                                                                                                             
                                                                                                                                
CHIP  WAGONER,  Executive   Director,  Alaska  Catholic   Conference                                                            
testified  in Juneau  that the  Conference is  the "official  public                                                            
policy  voice of the  church in  Alaska". The  church supports  this                                                            
bill. At least  nine other states have adopted similar  legislation.                                                            
He continued his testimony as follows.                                                                                          
                                                                                                                                
     As  creatures  created in  the image  of  God, we  all have  an                                                            
     inherent  dignity that comes not from our successes,  titles or                                                            
     bank accounts,  but from God  himself. As such, each  and every                                                            
     human   being  from   conception  to   natural  death,   has  a                                                            
     fundamental  right to life and  to those things that  make life                                                            
     truly human:  food, clothing, housing, health  care, education,                                                            
     security, social services and employment.                                                                                  
                                                                                                                                
     Senate  Bill 20 recognizes  that a child  in the womb  deserves                                                            
     protection  just  as  you and  I deserve  protection.  This  is                                                            
     dramatically  brought home to me earlier this  session as I was                                                            
     listening to testimony  before this very committee from members                                                            
     of the Key  Campaign, the parents of disabled  children and the                                                            
     disabled children  themselves. One of the parents said, sitting                                                            
     in this  very chair, when you  are pregnant you have  great and                                                            
     wonderful  dreams for your child.  That is so true.  Therefore,                                                            
     when an unborn  child is taken and those dreams  are shattered,                                                            
     the responsible  party should be held accountable  much as they                                                            
     would if you or I were the victim.                                                                                         
                                                                                                                                
     Many  changes  have  been made  to  this  statute as  its  gone                                                            
     through  the legislative process,  which is one of the  reasons                                                            
     why the legislative  process is one of the great  inventions of                                                            
     mankind and humankind.                                                                                                     
                                                                                                                                
     A woman who has a  drinking addiction under this bill no longer                                                            
     would  be held  accountable for  a crime of  harming her  child                                                            
     because she really is a victim herself.                                                                                    
                                                                                                                                
     With regard  to violence in the home, domestic  violence, there                                                            
     are many  women for many reasons that will not  leave or cannot                                                            
     leave  that  situation.  Some  might  even  say  for  religious                                                            
     reasons. Others fear  of own life. Others fear their children's                                                            
     live because  many times in a domestic violence  situation it's                                                            
     not  the women  who's  threatened, it's  the  children who  are                                                            
     threatened  if the woman does  something. And there's  economic                                                            
     reasons  - just lots  of reasons, particularly  in some  of our                                                            
     rural areas where  you can't get away as easily as just driving                                                            
     down the busy street of a city.                                                                                            
                                                                                                                                
     So the Catholic  Conference would support keeping  in the bill,                                                            
     a  provision  that  the  mere  fact of  living  in  a  domestic                                                            
     violence  situation  does not rise  to the  conduct in any  way                                                            
     shape  or form that  could lead to her  being charged  with the                                                            
     crime  under this bill. We feel  that this is the right  way to                                                            
     go. It  just makes it clear,  by having it written in  the bill                                                            
     and we think it will  help the bill in its eventual passage. We                                                            
     don't  see it coming up the criminal  justice system  if that's                                                            
     made clear in the bill.                                                                                                    
                                                                                                                                
Senator Hoffman  clarified the witness  supports the second  version                                                            
passed from the Senate Judiciary Committee, Version "U".                                                                        
                                                                                                                                
Mr. Wagoner affirmed.                                                                                                           
                                                                                                                                
Co-Chair  Green  directed  a member  of  her  staff to  explain  the                                                            
differences between  the two Senate Judiciary Committee  substitutes                                                            
and  why the  Senate Finance  Committee  should choose  to  consider                                                            
Version "R".                                                                                                                    
                                                                                                                                
KIM CARNOT, Staff to Co-Chair  Green, testified to her understanding                                                            
of the reason Senator Dyson  decided to recommend Version "R" to the                                                            
Committee. The  language adopted in Version "U" was  too broad. This                                                            
bill was designed  to criminalize  conduct and inserting  exemptions                                                            
into criminal  language is problematic as it is difficult  to define                                                            
the activities intended  for exemption. The sponsor had attempted to                                                            
include  a  provision   relating  to  fetal  alcohol   syndrome  but                                                            
encountered  difficulty  in defining  and measuring  the  condition.                                                            
Mental states are established  to determine whether conduct rises to                                                            
a certain  criminal  level. Version  "R" does  not include  language                                                            
that stipulates that the  action of a woman who remains in a violent                                                            
situation  manifests to  the extreme  indifference  to the value  of                                                            
human life. Conduct that  demonstrates such a manifestation includes                                                            
"walking into a crowded room and opening fire".                                                                                 
                                                                                                                                
Ms. Carnot  shared that the  Department of  Law and the Division  of                                                            
Legal  and Research  Services  advised that  a woman's  decision  to                                                            
remain in a battered relationship  ordinarily would not rise to that                                                            
level of conduct.  However, circumstances  would occur in  which the                                                            
decision  to remain in  the relationship  may rise  to the level  of                                                            
extreme  indifference.  Also  considered  was whether  to  establish                                                            
timelines  on  domestic  violence  incidents.  For example,  if  the                                                            
offense occurred  five years prior, it could be understandable  that                                                            
the woman was currently  in the relationship. However, the exemption                                                            
would excuse  not only this  woman, but also  the woman who  returns                                                            
after  being  beaten every  day  for  the previous  four  weeks  and                                                            
required hospitalization.  At some  point the conduct, mental  state                                                            
and intent of  the second woman would rise to a criminal  level. For                                                            
this reason a "blanket exemption" was not supported.                                                                            
                                                                                                                                
Co-Chair Green  surmised that the issue is fundamentally  the mental                                                            
state of the woman.  The intent to not prosecute all  pregnant women                                                            
who return to an abusive  relationship is expressed elsewhere in the                                                            
legislation.                                                                                                                    
                                                                                                                                
Senator Hoffman  asked if the aforementioned  dialog was  considered                                                            
by  the  Senate Judiciary  Committee  in  it's  action  in  adopting                                                            
Version "U", which provided the exemption.                                                                                      
                                                                                                                                
Senator Dyson  replied that adequate  review of this matter  was not                                                            
given  at  that  time.  He  accepted  fault  for  this,  as  he  was                                                            
attempting to move the bill through the legislative process.                                                                    
                                                                                                                                
Senator Dyson  offered a motion to  report SB 20, 24-LS0197\R,  from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
Senator  Hoffman  announced  he  would  not object  to  the  motion.                                                            
However  he expressed  "serious reservations"  about  the choice  of                                                            
Version "R" over Version "U".                                                                                                   
                                                                                                                                
There was  no objection  and COMMITTEE  SUBSTITUTE  SB 20 (JUD)  was                                                            
MOVED from  Committee with zero fiscal  note #1 from the  Department                                                            
of  Public   Safety,  fiscal   note  #2   from  the  Department   of                                                            
Administration  in an indeterminate amount, and zero  fiscal note #3                                                            
from the Department of Corrections.                                                                                             
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 164                                                                                                        
     "An Act relating to  the salmon product development tax credit;                                                            
     providing  for an effective date by amending  an effective date                                                            
     in sec.  7, ch. 57,  SLA 2003; and  providing for an  effective                                                            
     date."                                                                                                                     
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
TIM BARRY, Staff  to Senator Stedman, the bill's sponsor,  noted the                                                            
proposed committee substitute.                                                                                                  
                                                                                                                                
Co-Chair Wilken  offered a motion  to adopt CS SB 164, 24-LS0589\L,                                                             
as a working document.                                                                                                          
                                                                                                                                
Co-Chair Green objected for an explanation.                                                                                     
                                                                                                                                
AT EASE 4:12:14 PM / 4:15:01 PM                                                                                               
                                                                                                                                
[Note: Computer malfunction was corrected. Periodic timestamps are                                                              
available from this point forward.]                                                                                             
                                                                                                                                
Mr. Barry read the sponsor statement into the record as follows.                                                                
                                                                                                                                
     Senate Bill  164 extends the deadline for salmon  processors to                                                            
     receive a salmon product  development tax credit. Under current                                                            
     law (AS  43.75.035), processors  can claim the credit  only for                                                            
     property first placed  into service by the end of this calendar                                                            
     year (December  31, 2005). SB  164 would give processors  three                                                            
     more years  (until December 31, 2008) to claim  the credit. The                                                            
     legislation  also clarifies  what types  of items are  eligible                                                            
     for   the  tax  credit,   to  more   effectively  achieve   the                                                            
     legislature's  goal of encouraging Alaska's seafood  processors                                                            
     to develop innovative value-added salmon products.                                                                         
                                                                                                                                
4:15:51 PM                                                                                                                    
                                                                                                                                
Mr. Barry continued reciting the sponsor statement as follows.                                                                  
                                                                                                                                
     In  2003,  the  legislature  passed  and  the  Governor  signed                                                            
     legislation  that allows  processors to  claim a credit  on the                                                            
     tax  liability  on new  equipment they  have  purchased to  add                                                            
     value  to salmon using  innovative  processing techniques.  The                                                            
     bill  (HB 90) that became  this law was  proposed by the  Joint                                                            
     Legislative  Salmon  Industry Task  Force, and  was part  of an                                                            
     effort by Alaska's  elected leaders and the fishing industry to                                                            
     create  incentives for  the industry  to take investment  risks                                                            
     and produce  new salmon products that add value  to our salmon.                                                            
     It has worked:  a number of processors have taken  advantage of                                                            
     this tax  credit. SB 164 extends the deadline  for applying for                                                            
     the  credit for another  three  years, to the  end of 2008.  In                                                            
     addition,  the  bill  defines   the  kind  of  investment  that                                                            
     qualifies  for  the credit,  making  it clear  that  processors                                                            
     should  be producing new, innovative  salmon products  in order                                                            
     to benefit from this  program. The legislation has been drafted                                                            
     in  consultation with  the Tax  Division of  the Department  of                                                            
     Revenue,  incorporating lessons learned in the  first two years                                                            
     of  administering  the credit,  to ensure  that management  and                                                            
     enforcement are efficient and effective.                                                                                   
                                                                                                                                
     Senate Bill  164 is supported by many Alaska  salmon processors                                                            
     and fishermen  as a valuable tool in improving  the quality and                                                            
     net worth of our wild salmon.                                                                                              
                                                                                                                                
4:17:56 PM                                                                                                                    
                                                                                                                                
Mr. Barry noted the Senate Resources Committee substitute, which                                                                
incorporated a conceptual amendment offered after the testimony of                                                              
an at-sea processor. The  original version of the bill did not allow                                                            
the tax credit to apply  to any canning equipment. The intent was to                                                            
transition   from  canned  salmon   products.  However,   processors                                                            
requested the  credit extend to equipment  used for "pop  top" cans,                                                            
as this is  new type of product. The  committee substitute  reflects                                                            
this allowance.                                                                                                                 
                                                                                                                                
4:19:29 PM                                                                                                                    
                                                                                                                                
MARK  VINSEL,  Executive  Director,   United  Fishermen  of  Alaska,                                                            
testified in  support of the bill  and the committee substitute.  He                                                            
continued his testimony as follows.                                                                                             
                                                                                                                                
     Since the Joint Legislative  Salmon Task Force passed this bill                                                            
     and some other bills,  the ex-vessel value total for salmon for                                                            
     Alaska  is up $73 million.  That's a  45 percent increase  from                                                            
     2002. That increase  has also brought an increase of $2 million                                                            
     in  the  raw  fish  tax,  based  on  the  ex-vessel   price  to                                                            
     fishermen.                                                                                                                 
     Other  good news  is [that] the  total imports  of salmon  were                                                            
     down last  year to the US domestic market. So  there's a better                                                            
     opportunity for product  development to move forward. SB 164 is                                                            
     an important  tool in the transition  of these new products  to                                                            
     compete in the marketplace.                                                                                                
     Pop  top  cans  are important.  Yesterday  there  was  a  press                                                            
     release  from  Lisa Murkowski  that  we  expect to  be  getting                                                            
     canned  salmon in the  Women, Infants  and Children program  in                                                            
     the  domestic  market.  Government  purchase programs  -  we're                                                            
     always  looking to  increase  canned salmon  in the  government                                                            
     purchase  programs. The requirement  for a can opener  has been                                                            
     one impediment to some of the foreign aid programs.                                                                        
     UFA  supports this bill  for continued  product development  to                                                            
     help  continue the trend  of increase  wholesale and  ex-vessel                                                            
     prices,  which should show a  return in revenues to  the State.                                                            
                                                                                                                                
4:21:13 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green, noting Section  1, amending  AS 43.75.035(b)(2)  on                                                            
page 1,  lines 10 and 11,  asked the significance  of extending  the                                                            
date that property eligible  for the tax credit must be first placed                                                            
into service from December  31, 2005 to December 31, 2008. She asked                                                            
if such an extension would be continually sought.                                                                               
                                                                                                                                
4:21:34 PM                                                                                                                    
                                                                                                                                
Mr.  Vinsel  responded  that  product  development  is  a  long-term                                                            
process. He attributed  the limited product development  made in the                                                            
previous  years  to  the low  salmon  prices.  With  the  stabilized                                                            
market,  such  efforts   are  feasible.  He  predicted  significant                                                             
increases  in product  development  would  occur in  the next  three                                                            
years.                                                                                                                          
                                                                                                                                
4:22:31 PM                                                                                                                    
                                                                                                                                
Senator Hoffman  asked if  the salmon industry  was still ranked  as                                                            
the number one employer in Alaska.                                                                                              
                                                                                                                                
4:22:53 PM                                                                                                                    
                                                                                                                                
Mr.  Vinsel replied  that  the  Department  of Labor  and  Workforce                                                            
Development  reports that  the construction  industry has  surpassed                                                            
the fishing industry as the top employer in the state.                                                                          
                                                                                                                                
4:23:03 PM                                                                                                                    
                                                                                                                                
KRIS NORRIS,  Government Affairs,  Icicle Seafoods, Inc.,  testified                                                            
about  the  40-year   history  of  the  corporation  that   operates                                                            
throughout  the coastal  areas of  Alaska. Icicle  Seafood  supports                                                            
this bill  and has participated  in this program  in the last  three                                                            
years. These efforts have  increased customer acceptance of some new                                                            
products. One  project involved salmon  roe packaged in a  "modified                                                            
atmosphere" that  allows for a longer shelf life.  This subsequently                                                            
brings  some stability  to  the market  place  and has  been  widely                                                            
accepted by customers.                                                                                                          
                                                                                                                                
Ms. Norris remarked  that many companies develop business  plans for                                                            
future years and that the  original deadline of 2005 did not provide                                                            
adequate time  to implement changes. Extension of  the program would                                                            
benefit Alaska.                                                                                                                 
                                                                                                                                
4:25:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  offered a motion to report CS SB  164, 24-LS0589\L,                                                            
from  Committee with  individual  recommendations  and accompanying                                                             
fiscal note.                                                                                                                    
                                                                                                                                
There was no objection  and CS SB 164 (FIN) was MOVED from Committee                                                            
with zero fiscal note #1 from the Department of Revenue.                                                                        
                                                                                                                                
4:25:35 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 175(L&C)                                                                                            
     "An  Act  relating  to  dispensing  opticians,   to  dispensing                                                            
     optician  apprentices,  to the Board  of Dispensing  Opticians,                                                            
     and  to the practice  of dispensing  opticianry; and  providing                                                            
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
JANE ALBERTS,  staff to Senator Bunde  and aide to the Senate  Labor                                                            
and  Commerce  Committee,  presented  the  bill  sponsored  by  that                                                            
Committee.  This bill  would allow  the statutes  providing for  the                                                            
Board of Dispensing  Opticians to lapse, transferring  its authority                                                            
of regulating  opticians to the Division of Occupational  Licensing.                                                            
Dispensing opticians would continue to be licensed.                                                                             
                                                                                                                                
Ms. Alberts relayed  that although the Murkowski Administration  has                                                            
indicated  that  the number  of  boards and  commissions  should  be                                                            
reduced, Senator Bunde had noticed this was not occurring.                                                                      
                                                                                                                                
Ms. Alberts stressed that  the continuation of the licensing program                                                            
would ensure that the quality of care would remain high.                                                                        
                                                                                                                                
4:28:14 PM                                                                                                                    
                                                                                                                                
Senator Olson  asked the number of  actions taken against  licensees                                                            
in the past.                                                                                                                    
                                                                                                                                
4:28:24 PM                                                                                                                    
                                                                                                                                
Ms. Alberts  was unaware  of the  amount and  recalled one  instance                                                            
several years  prior. She noted that  28 states continue  to license                                                            
these activities.                                                                                                               
                                                                                                                                
4:29:03 PM                                                                                                                    
                                                                                                                                
Senator  Olson asked  how  infractions would  be  prosecuted in  the                                                            
absence of formal review.                                                                                                       
                                                                                                                                
4:29:12 PM                                                                                                                    
                                                                                                                                
Ms. Alberts replied  that this function would be transferred  to the                                                            
Division of Occupational Licensing.                                                                                             
                                                                                                                                
4:29:25 PM                                                                                                                    
                                                                                                                                
PAT DAVIDSON,  Director,  Division of Legislative  Audit,  testified                                                            
that  in the  most  recently  completed  audit  of this  board,  the                                                            
Division of  Legislative Audit recommended  the board be  allowed to                                                            
sunset. A registration  process was suggested rather  than mandatory                                                            
licensing.  This bill would  allow the board  to sunset, retain  the                                                            
licensing   requirement,    and   implement   three    other   audit                                                            
recommendations.                                                                                                                
                                                                                                                                
4:30:29 PM                                                                                                                    
                                                                                                                                
LARRY  HARPER,  American   Board  of  Optometrists,   testified  via                                                            
teleconference from Anchorage in support of the bill.                                                                           
                                                                                                                                
4:30:37 PM                                                                                                                    
                                                                                                                                
CHRISTI BRAND, President,  Opticians Association of Alaska testified                                                            
via teleconference  from an offnet  location in support of  the bill                                                            
and its passage from Committee.                                                                                                 
                                                                                                                                
4:30:50 PM                                                                                                                    
                                                                                                                                
Amendment  #1: This  amendment  changes  language in  AS  08.71.090.                                                            
Examination requirement.,  amended in Section 4 on page 2, following                                                            
line 13, of the  Senate Labor and Commerce Committee  substitute, to                                                            
provide  that the  Department of  Commerce, Community  and  Economic                                                            
Development  adopt  an  examination  established  by  "a  nationally                                                            
recognized professional  organization" for "contact  lens examiners"                                                            
and "dispensing  opticians  examiners". Current  statute  stipulates                                                            
that  the  Contact  Lens  Registry  examination   and  the  National                                                            
Opticianry Competency examination be administered.                                                                              
                                                                                                                                
This  amendment  also amends  AS  08.71.090  to provide  that  these                                                            
examinations "may" be administered, rather than "shall".                                                                        
                                                                                                                                
This amendment  also changes the language  in AS 08.71.110(a)(2)(B)                                                             
amended  in Section 5  on page 3,  lines 15 through  18, to  provide                                                            
that at least 2,000 hours  as a dispensing optician in eyeglasses or                                                            
at least 2,000 hours as  a dispensing optician in contact lenses may                                                            
be  required  for  licensure.  Current  language  of  the  committee                                                            
substitute requires both prerequisites be met.                                                                                  
                                                                                                                                
Co-Chair Wilken moved for adoption.                                                                                             
                                                                                                                                
4:30:58 PM                                                                                                                    
                                                                                                                                
RICK   URION,  Director,   Division   of   Occupational   Licensing,                                                            
Department   of  Commerce,  Community   and  Economic  Development,                                                             
testified  he  has been  coordination  with  opticians  to ensure  a                                                            
smooth transition. This  amendment would clear ambiguity in the bill                                                            
language.                                                                                                                       
                                                                                                                                
4:32:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green  understood  the  changes  made to  Section  5  were                                                            
grammatical.                                                                                                                    
                                                                                                                                
Mr. Urion affirmed.                                                                                                             
                                                                                                                                
Mr.  Urion  explained the  changes  proposed  to  Section  4 are  to                                                            
provide assurances that  the Division would not attempt to "reinvent                                                            
the wheel" and would instead administer recognized examinations.                                                                
                                                                                                                                
4:33:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green appreciated  the  resolution  to this  issue,  given                                                            
concerns expressed to her by constituents.                                                                                      
                                                                                                                                
[Note: The  amendment was  not formally adopted,  although  this was                                                            
the intent of the Committee.]                                                                                                   
                                                                                                                                
Co-Chair  Wilken offered  a motion  to report  CS SB  175 (L&C),  as                                                            
amended,  from   Committee  with   individual  recommendations   and                                                            
accompanying fiscal note.                                                                                                       
                                                                                                                                
Without objection,  CS SB  175 (FIN) was  MOVED from Committee  with                                                            
zero fiscal note  #1 from the Department of Commerce,  Community and                                                            
Economic Development.                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Green adjourned the meeting at 4:34 PM.                                                                                

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