Legislature(2005 - 2006)

05/02/2005 10:36 AM FIN


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                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                            May 2, 2005                                                                                       
                            10:36 a.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Green  convened the meeting  at approximately 10:36:14  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:  SENATOR RALPH SEEKINS; REPRESENTATIVE  MIKE HAWKER;                                                          
REPRESENTATIVE  RALPH  SAMUELS;  REPRESENTATIVE  VIC  KOHRING;  DOUG                                                            
WOOLIVER,   Administrative  Attorney,   Alaska  Court  System;   BEN                                                            
MULLINGAN,  Staff  to Representative  Bill  Stoltze;  RANDY  RUARGO,                                                            
Assistant Attorney  General, Civil Division (Juneau),  Department of                                                            
Law;  KEVIN TABLER,  Manager,  Land/Government  Affairs,  Union  Oil                                                            
Company   of  California/Anchorage;   BARBARA   COTTING,  Staff   to                                                            
Representative  Jim Holm;  CONRAD JACKSON,  Staff to Representative                                                             
Kurt Olson;  GINGER BLAISDELL,  Staff to  Senator Lyda Green;  HEATH                                                            
HILLIARD, Staff  to Representative Mike Kelly; MIKE  TIBBLES, Deputy                                                            
Commissioner,  Department of Administration;  MIKE PAWLOWSKI,  Staff                                                            
to Representative  Kevin  Meyer; IAN FISK,  Staff to Representative                                                             
Bill Thomas; SAM KITO,  Chair, Legislative Liaison Committee for the                                                            
Alaska  Professional  Design  Council;  HEATHER  NOBREGA,  Staff  to                                                            
Representative  Norm Rokeberg; GREG  WINEGAR, Director, Division  of                                                            
investments,   Department  of  Commerce,   Community  and   Economic                                                            
Development; KACI SCHRODER, Staff to Representative Bill Thomas                                                                 
                                                                                                                                
Attending via Teleconference:  From Offnet Sites: TIM ROGERS, Alaska                                                          
Municipal  League;  DUANE  BANNOCK,   Director,  Division  of  Motor                                                            
Vehicles, Department of Administration                                                                                          
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB 249-ENHANCED 911 SURCHARGES                                                                                                  
                                                                                                                                
The  Committee  heard from  the  sponsor  and the  Alaska  Municipal                                                            
League. An amendment  was considered, but failed to  be adopted. The                                                            
bill reported from Committee.                                                                                                   
                                                                                                                                
HB 155-YOUTH COURTS AND CRIMINAL FINES                                                                                          
                                                                                                                                
The Committee  heard from the sponsor  and the Alaska Court  System.                                                            
One amendment was adopted, and the bill was held in Committee.                                                                  
                                                                                                                                
HB 131-ACCESS DEVICE & I.D. DOCUMENT CRIMES                                                                                     
                                                                                                                                
The Committee heard from  the sponsor and the Department of Law. The                                                            
bill reported from Committee.                                                                                                   
                                                                                                                                
HB 197-OIL SPILL EXEMPTIONS FOR GAS WELLS                                                                                       
                                                                                                                                
The Committee  heard  from the sponsor  and the  industry. The  bill                                                            
reported from Committee.                                                                                                        
                                                                                                                                
HB 156-COMMISSION ON AGING                                                                                                      
                                                                                                                                
The  Committee   heard  from  the   sponsor,  adopted  a   committee                                                            
substitute, and reported the bill from Committee.                                                                               
                                                                                                                                
HB 178-SPECIAL REQUEST LICENSE PLATES                                                                                           
                                                                                                                                
The  Committee  heard  from  the  sponsor   and  the  Department  of                                                            
Administration. The bill was held in Committee.                                                                                 
                                                                                                                                
SB 46-BUDGET: CAPITAL & OTHER/ BRF                                                                                              
                                                                                                                                
The Committee  reviewed a committee substitute and  held the bill in                                                            
Committee.                                                                                                                      
                                                                                                                                
HB 91-INDECENT EXPOSURE TO MINORS                                                                                               
                                                                                                                                
The Committee reported out the bill.                                                                                            
                                                                                                                                
HB 35-EXTEND BD ARCHITECTS/ENGINEERS/SURVEYORS                                                                                  
                                                                                                                                
The Committee  reported out  the bill, then  rescinded that  action.                                                            
After  hearing  from  the  bill's  sponsor  and  the  industry,  one                                                            
amendment  was adopted  and the  committee substitute  was  reported                                                            
from Committee.                                                                                                                 
                                                                                                                                
HB 75-HUNTING, FISHING, TRAPPING                                                                                                
                                                                                                                                
The Committee  heard from  the sponsor and  the Chair of the  Senate                                                            
Resources  Committee.   One  amendment  was  adopted  and  the  bill                                                            
reported from Committee.                                                                                                        
                                                                                                                                
SB 24-REEMPLOYMENT OF RETIREES                                                                                                  
                                                                                                                                
The Committee  heard from the Department of Administration,  adopted                                                            
one amendment and reported the bill from Committee.                                                                             
                                                                                                                                
HB 15-LIQUOR LIC: OUTDOOR REC. LODGE/BARS/PUBS                                                                                  
                                                                                                                                
The Committee  heard  from the sponsor  and reported  the bill  from                                                            
Committee.                                                                                                                      
                                                                                                                                
HB 19-PESTICIDE & BROADCAST CHEMICALS                                                                                           
                                                                                                                                
The Committee  heard  from the sponsor  and reported  the bill  from                                                            
Committee.                                                                                                                      
                                                                                                                                
HB 230-LOANS FOR COMMERCIAL FISHING TENDERS                                                                                     
                                                                                                                                
The  Committee  heard  from  the  sponsor   and  the  Department  of                                                            
Commerce,  Community  and Economic  Development.  The bill  reported                                                            
from Committee.                                                                                                                 
                                                                                                                                
HB 136-DRIVING UNDER INFLUENCE SENTENCING                                                                                       
                                                                                                                                
The Committee  heard from the bill's  sponsor and reported  the bill                                                            
and a House Judiciary Letter from Intent from Committee.                                                                        
                                                                                                                                
HB 119-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM                                                                                  
                                                                                                                                
The Committee heard from  the sponsor. One amendment was adopted and                                                            
the bill reported from Committee.                                                                                               
                                                                                                                                
                                                                                                                                
10:36:00 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 249(RLS)                                                                                             
     "An Act relating to enhanced 911 systems and enhanced 911                                                                  
     surcharges imposed by a municipality, public municipal                                                                     
     corporation, or village."                                                                                                  
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  MIKE  HAWKER, the  bill's  sponsor,  noted that  the                                                            
Committee  previously  heard  the  Senate  companion  bill  to  this                                                            
legislation.  The House  version of  the bill  before the  Committee                                                            
included    some     technical    changes    such     as    changing                                                            
"telecommunication"  to "telephone"  and "E 911" to "Enhanced  911".                                                            
In  addition,  the  maximum  tax  amount  allowable   without  voter                                                            
approval was increased from $1.50 to $2.00.                                                                                     
                                                                                                                                
10:37:57 AM                                                                                                                   
                                                                                                                                
TIM ROGERS,  Alaska Municipal League,  testified via teleconference                                                             
from  an offnet  location  in  support of  this  bill.  He would  be                                                            
available to answer questions.                                                                                                  
                                                                                                                                
10:38:28 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  remarked  that this  matter  has  had considerable                                                             
attention,  and  that  the  majority  of  the Committee's   language                                                            
recommendations   pertinent  to  the  Senate  companion   bill  were                                                            
incorporated  into  this  House  bill.  The three  changes  in  this                                                            
version  of the  bill,  as communicated  by  Representative  Hawker,                                                            
would be "a great improvement".                                                                                                 
                                                                                                                                
10:38:54 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken stated that  this legislation  is a "big issue"  to                                                            
the Fairbanks  North  Star Borough  and the City  of Fairbanks.  The                                                            
$2.00 maximum  tax limit would not  sufficiently cover the  costs of                                                            
the Enhanced 911  system in Fairbanks. Therefore,  the City would be                                                            
required to make internal adjustments.                                                                                          
                                                                                                                                
Co-Chair Wilken  stated that Fairbanks  is primarily concerned  with                                                            
the fact  that local voter  approval would  be required to  increase                                                            
the Enhanced  911  service assessment  beyond the  $2.00 limit  that                                                            
would be specified in Statute.  The concern is that the public might                                                            
not  support the  need. A  forthcoming  amendment  would change  the                                                            
manner  through which  the  local Enhanced  911 surcharge  could  be                                                            
managed by  allowing the  local assembly rather  than the public  to                                                            
decide the issue.                                                                                                               
                                                                                                                                
Co-Chair  Wilken  informed the  Committee  that local  assembly  and                                                            
mayoral  elections   are  held  every  three  years  in   Fairbanks.                                                            
Campaigns  for those  seats could  be intensive  and expensive.  The                                                            
concern  is  that, even  though  the  Enhanced  911 issue  would  be                                                            
considered  a worthy  initiative, the  issue would  have to  compete                                                            
with the assembly  and mayoral elections  and "would be lost  in the                                                            
noise".  It  would  be secondary   to the  focus  on  the  candidate                                                            
elections.                                                                                                                      
                                                                                                                                
Amendment #1:  This amendment deletes "surcharge amount  is approved                                                            
by the voters  of the enhanced 911  service area" in Sec.  2(a) page                                                            
two lines  14 and  15 and replaces  it with  "municipality adopts  a                                                            
separate ordinance authorizing the increase".                                                                                   
                                                                                                                                
Co-Chair Wilken moved for adoption of Amendment #1.                                                                             
                                                                                                                                
Co-Chair Wilken  argued that the current language  in the bill would                                                            
shortchange  the Enhanced 911 service.  While the effort  is to make                                                            
the  service  more  responsive  and enhance  public  safety  in  the                                                            
community, the  opposite would be true. He opined  that, were it put                                                            
to a local vote, he, having  used the service, would be one of a few                                                            
who  would   vote   for  an   increased  Enhanced   911   surcharge.                                                            
Nonetheless, while only  one in ten people have used the service, it                                                            
would be available for all ten.                                                                                                 
                                                                                                                                
Co-Chair Green  objected to the amendment. A tax limitation  in this                                                            
regard has "long been in  Statute", and the proposal to increase the                                                            
current 50-cent  tax limit to $2.00  would quadruple the  revenue to                                                            
most large communities.  It is interesting how the  blame pertaining                                                            
to this  issue  transitions from  one entity  to  another: when  the                                                            
local  phone   utility,  which  has   no  control  over   the  issue                                                            
incorporates  the Enhanced  911  surcharge into  their subscribers'                                                             
utility bills, the subscribers  blame the utility; the utility would                                                            
deflect that blame and  explain that the charge was due to a city or                                                            
borough decision;  and the city would then deflect  the criticism to                                                            
the Legislature by intoning  that the State allowed them to increase                                                            
the charge. While  she could accept the $2.00 tax  limit, any charge                                                            
imposed over that amount  in a local community should be approved by                                                            
that community's voters.                                                                                                        
                                                                                                                                
10:44:34 AM                                                                                                                   
                                                                                                                                
Senator Olson requested the sponsor's position of the amendment.                                                                
                                                                                                                                
10:44:41 AM                                                                                                                   
                                                                                                                                
Representative  Hawker  replied that  he had  previously  considered                                                            
this issue. His determination  was that arguments for both positions                                                            
are "equally  sound". He understood  the argument of allowing  those                                                            
most closely affected by  the issue to vote in its regard as well as                                                            
the  concern that  voters  might not  support increasing  fees  upon                                                            
themselves for a public issue.                                                                                                  
                                                                                                                                
10:45:36 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green  commented  on  the  neutrality  of  Representative                                                             
Hawker's position.                                                                                                              
                                                                                                                                
10:45:48 AM                                                                                                                   
                                                                                                                                
Senator Dyson,  noting that he had  served for six years  on a local                                                            
municipal   assembly,   spoke   in   support   of   the   amendment.                                                            
Traditionally,  in a western  representative  democracy, people  are                                                            
elected to positions  and charged with studying an  issue and making                                                            
a decision  in its regard. He agreed  with Co-Chair Wilken  that the                                                            
elected  body  could  best  make  the  decision  regarding  a  local                                                            
Enhanced  911  surcharge.  His  Senate  district  seat predecessor,                                                             
Senator  Sam Cotton,  was heard  to say  in response  to whether  he                                                            
would vote  in support of the will  of his constituents that,  "most                                                            
of the issues are very  complicated and take a lot of study … at the                                                            
end of  the day,  I hope that  I vote  the way that  you would  have                                                            
wanted to  vote if  you had had  access to the  information  and the                                                            
debate of the  history of the issue like I have a  chance to study."                                                            
The hope  is that  the electorate  would  vote for  mature and  wise                                                            
people  who would make  the right  decision after  they had  had the                                                            
time to study the issue and hear the debate.                                                                                    
                                                                                                                                
10:47:32 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green viewed Senator  Dyson's position  as being  "kind of                                                            
interesting",  as he has been "a proponent  of sound budgeting"  and                                                            
watchful of elected  officials' efforts to increase  spending. "This                                                            
flies  directly  in  the face  of  the  tax  cap that  the  City  of                                                            
Anchorage"  and other communities  have. This would be "a  mechanism                                                            
by which they  can get around the  tax limit, and that bothers  me."                                                            
Therefore, "we shouldn't  be providing them an avenue in which to go                                                            
around that tax cap."                                                                                                           
                                                                                                                                
Co-Chair Green  observed that one of the problems  with the Enhanced                                                            
911 system is  that, were a poll taken, it would be  determined that                                                            
few people  "know what that system  consists of." Communicating  the                                                            
financial  mechanics  of  the system  to  people  would be  a  "huge                                                            
education"  effort, as attested by  the discussions that  transpired                                                            
during   Committee  hearings.   The   language   provided  in   this                                                            
legislation  would clearly define  how this money could be  utilized                                                            
and would distinguish between "the needs verses the wants".                                                                     
                                                                                                                                
Co-Chair Green maintained her objection to Amendment #1.                                                                        
                                                                                                                                
10:49:08 AM                                                                                                                   
                                                                                                                                
Senator  Olson  voiced concern  that  the  amendment could  make  it                                                            
easier  for a  municipality  to  increase  the surcharge  rate  were                                                            
funding short.                                                                                                                  
                                                                                                                                
10:49:27 AM                                                                                                                   
                                                                                                                                
Co-Chair Green agreed.                                                                                                          
                                                                                                                                
10:49:30 AM                                                                                                                   
                                                                                                                                
Senator  Dyson  appreciated  Co-Chair  Green's  comments  about  the                                                            
"apparent hypocrisy"  of his earlier  position on the amendment.  He                                                            
has oftentimes  encountered issues in conflict with  his principles.                                                            
He  knew  of  many  circumstances  in  which   the  Municipality  of                                                            
Anchorage Assembly  has attempted to maneuver "around  their tax cap                                                            
rather than  facing it  honestly." He appreciated  being  "reminded"                                                            
that this  action might  enable such action.  Providing the  ability                                                            
"to end  run their tax cap"  would not be  his desire. However,  the                                                            
significance  of the  issue and  the principle  of a representative                                                             
government override that concern in this case.                                                                                  
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Dyson and Co-Chair Wilken                                                                                     
                                                                                                                                
OPPOSED: Senator  Olson, Senator Hoffman,  Senator Stedman,  and Co-                                                            
Chair Green                                                                                                                     
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (2-4-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
10:51:06 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  offered a motion to report the bill  from Committee                                                            
with individual recommendations and accompanying fiscal note.                                                                   
                                                                                                                                
There  being  no  objection,  CS  HB  249(RLS)   was  REPORTED  from                                                            
Committee  with zero fiscal  note #1  dated April  8, 2005 from  the                                                            
Department of Public Safety.                                                                                                    
                                                                                                                                
10:51:16 AM                                                                                                                   
                                                                                                                                
AT EASE 10:51:59 AM / 10:53:35 AM                                                                                           
                                                                                                                                
10:53:36 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 155(JUD)                                                                                             
     "An Act relating to funding for youth courts; and relating to                                                              
     separately  accounting for fines imposed on and  collected from                                                            
     defendants."                                                                                                               
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate Finance                                                                  
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE RALPH SAMUELS, the bill's sponsor, read from his                                                                 
Sponsor Statement as follows.                                                                                                   
                                                                                                                                
     HB  155   simply  gives  the   Legislature  the  authority   to                                                            
     appropriate  up to  25% of the  fines collected  by the  Alaska                                                            
     Court  System to the  youth courts. It  is not stipulated  that                                                            
     they must do so.                                                                                                           
                                                                                                                                
     The youth  courts help young offenders by intervening  early to                                                            
     set  them  on the  right  track and  work  to deter  them  from                                                            
     becoming adult offenders.                                                                                                  
                                                                                                                                
     The Anchorage  Youth Court, which  was established in  1989, is                                                            
     the oldest of the  14 youth court programs in the State. In the                                                            
     first two quarters  of the current fiscal year, there have been                                                            
     471   youth  offenders   referred   to  these   programs,   397                                                            
     adjudications,  8,833 hours of community service  and $7,502.00                                                            
     in restitution ordered.                                                                                                    
                                                                                                                                
     There  are  14 youth  courts  operating  statewide:  Anchorage,                                                            
     Delta   Junction,  Fairbanks,   Homer,  Juneau,  Kake,   Kenai,                                                            
     Ketchikan, Kodiak,  Kotzebue, Mat-Su, Nome, Sitka and Wrangell.                                                            
                                                                                                                                
     This  bill  simply provides  an  accounting  mechanism  through                                                            
     which to allow the  Legislature to give the Youth Courts money.                                                            
                                                                                                                                
     "The actions  of an offender  being tried in a Youth  Court are                                                            
     judged by  his or her peers. It is a lot tougher  to blow smoke                                                            
     if you are talking to your own age group."                                                                                 
                                                                                                                                
     Doug  Wooliver,  an  attorney  with the  Alaska  Court  System,                                                            
     drafted  Sections 3 and 4 to  address some of the concerns  the                                                            
     Court  System had with  their estimates  and accounting  of the                                                            
     money.                                                                                                                     
                                                                                                                                
10:56:05 AM                                                                                                                   
                                                                                                                                
Co-Chair Green asked where the revenues collected from fines are                                                                
currently deposited.                                                                                                            
                                                                                                                                
10:56:16 AM                                                                                                                   
                                                                                                                                
Representative  Samuels  clarified that  the Alaska  Youth Court  is                                                            
currently unable  to receive funds. He deferred to  the Mr. Wooliver                                                            
with the Alaska Court System for further specifics.                                                                             
                                                                                                                                
10:56:26 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green, noting  that this  legislation  would not  generate                                                            
additional  money;  it could  simply  divert  revenue  to the  Youth                                                            
Court,  asked for  further  information about  where  the funds  are                                                            
currently deposited.                                                                                                            
                                                                                                                                
10:56:43 AM                                                                                                                   
                                                                                                                                
Representative  Samuels  responded  that  the  funds  are  currently                                                            
deposited to  the General Fund. The  bill would not stipulate  where                                                            
the  Youth Court  would  be ranked  in line  for funding;  it  would                                                            
simply implement  an accounting mechanism through  which money could                                                            
be allocated to the Youth Court.                                                                                                
                                                                                                                                
10:57:04 AM                                                                                                                   
                                                                                                                                
Co-Chair Green asked whether  AS 37.05.142, as specified in language                                                            
in  Section 1(g)  page  one, line  five,  was a  general  accounting                                                            
reference.                                                                                                                      
                                                                                                                                
          (g) Fines imposed and collected under this section shall                                                              
     be separately accounted for under AS 37.05.142.                                                                            
                                                                                                                                
10:57:26 AM                                                                                                                   
                                                                                                                                
DOUG  WOOLIVER,  Administrative   Attorney,  Alaska   Court  System,                                                            
informed that  AS 37.05.142 is a Statute "that directs  an entity to                                                            
separately  account for specific  types of  money. In this  case, it                                                            
would  direct  the  Court  System  to specifically   identity  fines                                                            
collected under  AS 12.55.035 as opposed  to revenue collected  from                                                            
such things  as other types  of fines, court  costs or forfeitures.                                                             
The funds would therefore be "labeled" in the General Fund.                                                                     
                                                                                                                                
10:58:07 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  recalled past Committee discussions  and concerns in                                                            
regards to fines that were  collected but not provided to the harmed                                                            
party.  She was unsure  whether this  was the  result of  accounting                                                            
procedures  or a computer  "glitch". She  allowed that those  issues                                                            
might have  involved different types  of fines than those  addressed                                                            
in this legislation.  Nonetheless,  she asked what this legislation                                                             
would change that  would allow these funds to be made  available for                                                            
appropriation.                                                                                                                  
                                                                                                                                
10:58:48 AM                                                                                                                   
                                                                                                                                
Mr. Wooliver  stated  that this  legislation would  not address  the                                                            
issue of the  "disconnect" between  the Alaska Court System  and the                                                            
Collections and Support  Section of the Department of Law. This bill                                                            
would  specify  that the  fine  money collected  and  accounted  for                                                            
directly  by the Alaska  Court System  would be  deposited into  the                                                            
general  fund. That  would  be the  dollar  amount subject  to  this                                                            
legislation.   This  would  circumvent  "the  disconnect"   that  is                                                            
occurring with the Department of Law collections division.                                                                      
                                                                                                                                
Co-Chair  Green understood  therefore  that this  legislation  would                                                            
"pre-authorize"  one-quarter  of the fine  revenue collected  by the                                                            
Court System to be used to fund the Youth Court.                                                                                
                                                                                                                                
10:59:37 AM                                                                                                                   
                                                                                                                                
Mr.  Wooliver responded  that  this  legislation would  provide  the                                                            
authority through which the Legislature could do that.                                                                          
                                                                                                                                
Co-Chair Green  pointed out that the bill's provisions  specify that                                                            
the Legislature "'may' appropriate" those funds.                                                                                
                                                                                                                                
10:59:44 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green asked whether  this action  could occur absent  this                                                            
bill.                                                                                                                           
                                                                                                                                
10:59:50 AM                                                                                                                   
                                                                                                                                
Representative   Samuels  expressed   the  understanding   that  the                                                            
Legislature   could   establish  a   procedure   through  which   to                                                            
appropriate funds "all at one time".                                                                                            
                                                                                                                                
11:00:06 AM                                                                                                                   
                                                                                                                                
Senator Stedman  remarked "the operative  provision here  is 'may'".                                                            
That  word  would  indicate  that the  appropriation  would  not  be                                                            
mandatory. Continuing,  he inquired as to how much 25-percent of the                                                            
fines  collected  for  the  past three  to  five  years  would  have                                                            
amounted to.                                                                                                                    
                                                                                                                                
11:00:27 AM                                                                                                                   
                                                                                                                                
Mr. Wooliver  reported that,  over the past  year, the Alaska  Court                                                            
System collected approximately  $3,500,000 in fines; this bill would                                                            
allow  25 percent  of  that  amount to  be  available  to the  Youth                                                            
Courts.                                                                                                                         
                                                                                                                                
11:00:50 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  voiced surprise at  that amount, as the  Department                                                            
of Law fiscal  note #1 indicates that $1,200,000 was  collected. 25-                                                            
percent of that amount  would equate to approximately $324,800 being                                                            
provided to the Youth Courts.                                                                                                   
                                                                                                                                
11:01:10 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken understood  from  Representative  Samuels'  remarks                                                            
that  the   Legislature   could  appropriate   funds  without   this                                                            
legislation.   This  bill  would  simply  serve  to  establish   the                                                            
mechanism for  the appropriation. Continuing, he expressed  that the                                                            
words "up to" 25-percent  should be included in Sec. 2 page one line                                                            
nine, as  current wording  would indicate  the Legislature  would be                                                            
limited to  either appropriating  zero or  25-percent of the  fines.                                                            
While  he is  a "big  supporter"  of the  Youth Court  program,  the                                                            
concern  would be  that  the Youth  Court program  would  grow as  a                                                            
result of a  year or years with good  earnings; however the  program                                                            
would encounter  trouble were their funding to diminish  in years of                                                            
low earnings.  Therefore, the inclusion  of the words "up  to" would                                                            
provide the Legislature  "the discretion" to fund the program "at an                                                            
appropriate level depending on what they are requesting".                                                                       
                                                                                                                                
Conceptual  Amendment #1: This amendment  inserts the words  "up to"                                                            
before the phase "25 percent" in Sec. 2 page one line nine.                                                                     
                                                                                                                                
Co-Chair Wilken moved Conceptual Amendment #1.                                                                                  
                                                                                                                                
There being no objection, Conceptual Amendment #1 was ADOPTED.                                                                  
                                                                                                                                
Co-Chair Green ordered the bill HELD in Committee.                                                                              
                                                                                                                                
AT EASE 11:04:14 AM / 1:47:45 PM                                                                                            
                                                                                                                                
1:47:48 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 131                                                                                                         
     "An Act increasing  the criminal classification  of theft of an                                                            
     access   device  and   of  obtaining   an   access  device   or                                                            
     identification  documents by  fraudulent means; increasing  the                                                            
     criminal classification  for certain cases of fraudulent use of                                                            
      an access device; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
BEN  MULLIGAN, Staff  to  Representative  Bill Stoltze,  the  bill's                                                            
sponsor,  stated that  the  increase in  access identity  thief  has                                                            
become a nationwide  concern. Alaska is second in  the nation in the                                                            
number  of complaints  per capital  in regards to  this issue.  This                                                            
bill would increase the  criminal classification for this crime from                                                            
a Class  A misdemeanor  to  a Class  C felony  for the  theft of  an                                                            
access device, the use  of an access device, and the obtaining of an                                                            
access device by fraudulent means.                                                                                              
                                                                                                                                
1:48:51 PM                                                                                                                    
                                                                                                                                
RANDY  RURARO,  Assistant  Attorney   General,  Department  of  Law,                                                            
informed the Committee  that the Department of Law  is in support of                                                            
the bill.                                                                                                                       
                                                                                                                                
1:49:24 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  asked whether the definition of an  access device is                                                            
included in the bill.                                                                                                           
                                                                                                                                
1:49:31 PM                                                                                                                    
                                                                                                                                
Mr.  Mulligan stated  that  an access  device  is defined  in  State                                                            
Statue AS 11.81.900 as follows.                                                                                                 
                                                                                                                                
     An  access  device  means  a card,  credit  card,  plate  code,                                                            
     account number,  Algorithm, or identification  number including                                                            
     a social security  number, electronic serial number or password                                                            
     that  is capable  of being used  alone or  in conjunction  with                                                            
     another  access  device or  identification  document to  obtain                                                            
     property or services  that could be used to initiate a transfer                                                            
     of property.                                                                                                               
                                                                                                                                
1:50:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  asked whether increased  penalties for these  crimes                                                            
is occurring on a national level.                                                                                               
                                                                                                                                
1:50:28 PM                                                                                                                    
                                                                                                                                
Mr. Mulligan  replied that  numerous states  have either lowered  or                                                            
eliminated the value level  required for a felony charge relating to                                                            
the property  or services  obtained as a result  of this crime.  The                                                            
fact  that  these  crimes  have  increased  more  than  100  percent                                                            
nationwide has led to such action.                                                                                              
                                                                                                                                
1:51:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being  no objection, HB 131  was REPORTED from Committee  with                                                            
zero fiscal note  #1 dated February 25, 2005 from  the Department of                                                            
Corrections,  zero fiscal note #2  dated February 22, 2005  from the                                                            
Department of Law, zero  fiscal note #3 dated February 22, 2005 from                                                            
the Department  of Public Safety,  and indeterminate fiscal  note #4                                                            
dated February 22, 2005 from the Department of Administration.                                                                  
                                                                                                                                
1:51:18 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 197(RLS)                                                                                             
     "An  Act   exempting  certain   natural  gas  exploration   and                                                            
     production   facilities  from  oil  discharge  prevention   and                                                            
     contingency  plans and proof  of financial responsibility,  and                                                            
     amending  the  powers and  duties  of the  Alaska  Oil and  Gas                                                            
     Conservation  Commission   with respect  to  those  plans;  and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green  stated  that  this bill  would  address  oil  spill                                                            
exemptions for gas wells.                                                                                                       
                                                                                                                                
REPRESENTATIVE  VIC KOHRING,  the bill's  sponsor  on behalf of  the                                                            
House  Special  Committee  on  Oil  and  Gas,  explained  that  this                                                            
legislation  would exempt oil companies  that are drilling  strictly                                                            
for  gas  from  oil  spill  contingency  plans.  Current  State  law                                                            
requires  a  company "that  is  drilling  strictly  for gas  and  is                                                            
drilling  in formations  that contain  only gas"  to develop  an oil                                                            
spill contingency plan.  The development of these plans is expensive                                                            
and time  consuming. It "would  be logical  to exempt gas  drillers"                                                            
from  this requirement.  The  Oil and  Gas  Conservation  Commission                                                            
would be responsible  for making the  determination as to  whether a                                                            
formation contained  oil. The company would be granted  an exemption                                                            
from the oil spill contingency  plan requirement were the Commission                                                            
to determine that the formation did not contain oil.                                                                            
                                                                                                                                
Representative  Kohring  stated that  the bill is  accompanied  by a                                                            
zero fiscal note  from the Department of Environmental  Conservation                                                            
and is supported by the Governor Frank Murkowski Administration.                                                                
                                                                                                                                
1:53:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green asked when  the oil spill  contingency plan  statute                                                            
was enacted.                                                                                                                    
                                                                                                                                
Representative  Kohring replied that the oil spill  contingency plan                                                            
was enacted  in  HB 531 in  the year  2003. This  legislation  would                                                            
correct a drafting  error that inadvertently  included gas  drillers                                                            
with  those  that  would  be  required  to  develop  the  oil  spill                                                            
contingency plan.                                                                                                               
                                                                                                                                
1:53:59 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green remarked that  some of the  regulations relating  to                                                            
oil  and gas  drilling  and development  are  "quite  old". To  that                                                            
point, a distinction  between oil and gas might not  have been made.                                                            
                                                                                                                                
1:54:30 PM                                                                                                                    
                                                                                                                                
KEVIN TABLER,  Manager, Land/Government  Affairs, Union Oil  Company                                                            
of  California/Anchorage  requested  that  the Members  support  the                                                            
House Rules  Committee version of  the bill, as it would  "clean up"                                                            
the unintended  and inadvertent drafting error that  was included in                                                            
HB 531 when the definition  of conventional and non-conventional gas                                                            
wells was changed.                                                                                                              
                                                                                                                                
1:55:41 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  understood that hearings  on this bill had  occurred                                                            
in  the House  Committee  on Oil  and Gas  bill, the  House  Finance                                                            
Committee,  the Senate  Resources  Committee  and the  Senate  Rules                                                            
Committee.                                                                                                                      
                                                                                                                                
Representative Kohring affirmed                                                                                                 
                                                                                                                                
1:56:06 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being  no  objection,  CS  HB  197(RLS)   was  REPORTED  from                                                            
Committee  with previous zero  fiscal note  #1 dated March  14, 2005                                                            
from the Department of Environmental Conservation.                                                                              
                                                                                                                                
1:56:31 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 156(RLS) am                                                                                          
     "An Act relating to the membership and duties of and quorum                                                                
     requirements for the Alaska Commission on Aging; and providing                                                             
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
1:57:28 PM                                                                                                                    
                                                                                                                                
BARBARA  COTTING,  Staff  to Representative   Jim Holm,  the  bill's                                                            
sponsor, informed the Committee  that a new committee substitute has                                                            
been distributed.                                                                                                               
                                                                                                                                
Co-Chair  Wilken moved  to adopt  committee substitute  Version  24-                                                            
LS0615\S as the working document.                                                                                               
                                                                                                                                
Co-Chair Green objected for an explanation.                                                                                     
                                                                                                                                
Ms. Cotting  expressed that during  its committee referral  process,                                                            
this  "simple little  bill"  has been  amended numerous  times.  She                                                            
reminded  the Committee  that  the Alaska  Commission  on Aging  was                                                            
moved from  the Department  of Administration  to the Department  of                                                            
Health and Social  Services in the year 2003. That  move resulted in                                                            
the need for  Statutory revisions.  She voiced appreciation  for Co-                                                            
Chair Green's  and others' input on  the needed revisions  that have                                                            
occurred  in accomplishing  that task  during  the bill's  committee                                                            
process.                                                                                                                        
                                                                                                                                
Ms. Cotting stated  that the Version "S" committee  substitute would                                                            
eliminate the  requirement that the  Commissioner of the  Department                                                            
of Administration hold  a seat on the commission, as that Department                                                            
is no longer involved  with the Commission: that seat  would instead                                                            
be  reserved   for  a  senior  services   provider.  The   committee                                                            
substitute would  also allow all eleven Commission  members to vote.                                                            
It would also eliminate  sections that pertained to the Commission's                                                            
responsibility  of evaluating  and awarding  grant applications,  as                                                            
that function  was no longer being performed. This  would also serve                                                            
to eliminate any appearance of a conflict of interest.                                                                          
                                                                                                                                
[NOTE: Co-Chair Wilken assumed Chair of the Committee.]                                                                         
                                                                                                                                
1:58:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  asked whether there  were any further questions  or                                                            
testimony in regards to the bill.                                                                                               
                                                                                                                                
None were forthcoming.                                                                                                          
                                                                                                                                
1:58:54 PM                                                                                                                    
                                                                                                                                
In response to a question  from Senator Dyson, Co-Chair Wilken noted                                                            
that further action on  the bill must wait until Co-Chair Green, who                                                            
had  momentarily   stepped  away  from  the  meeting,   removed  her                                                            
objection to the adoption of the committee substitute.                                                                          
                                                                                                                                
AT EASE: 1:59:04 PM / 1:59:06 PM                                                                                                
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                
1:59:29 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 178(STA) am                                                                                          
     "An Act relating to special motor vehicle registration plates;                                                             
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
CONRAD  JACKSON,  Staff to  Representative  Kurt Olson,  the  bill's                                                            
sponsor,  stated  that this  legislation  would  allow,  with a  few                                                            
exceptions, all  license plates to be made available  for use on all                                                            
motor vehicles.  Currently, the use  of specialized or non-standard                                                             
license plates  is limited to passenger vehicles,  motorcycles, non-                                                            
commercial  vans,  pickup  trucks, and  motor  homes.  Use of  these                                                            
license  plates is  currently prohibited  for  commercial  vehicles.                                                            
Therefore, the end result  of this bill would be to allow the use of                                                            
non-standard  plates on all vehicles.  However, he noted  that those                                                            
applying  for  Veterans,  Purple Heart,  or  Alaska  National  Guard                                                            
plates would  be required  to meet specific  qualifiers in  order to                                                            
display them.                                                                                                                   
                                                                                                                                
Mr.  Jackson  noted that  since  there  is a  fee  for non-standard                                                             
plates, this  expansion would  increase revenue  in the Division  of                                                            
Motor Vehicles (DMV), Department of Administration.                                                                             
                                                                                                                                
Mr. Jackson addressed the  confusion that has accompanied the bill's                                                            
fiscal  notes  by   communicating  that  while  the  State   Affairs                                                            
Committee's  version of the  bill had been  adopted in the  House of                                                            
Representatives,  the  fiscal note  accompanying  the House  Finance                                                            
Committee's version  of the bill had been inadvertently  transmitted                                                            
to the Senate. Therefore,  he requested that the Committee adopt the                                                            
State Affairs fiscal note.                                                                                                      
                                                                                                                                
2:01:48 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken   understood  therefore  that  the   Department  of                                                            
Administration $5,000 fiscal  note #1, dated March 18, 2005 would be                                                            
the correct fiscal note.                                                                                                        
                                                                                                                                
Mr. Jackson affirmed.                                                                                                           
                                                                                                                                
2:02:02 PM                                                                                                                    
                                                                                                                                
Senator Olson  asked whether the fee structure for  the non-standard                                                            
license plates had been altered.                                                                                                
                                                                                                                                
2:02:16 PM                                                                                                                    
                                                                                                                                
Mr.  Jackson  replied  that  no  change  has  occurred  to  the  fee                                                            
structure.  This bill  would  simply serve  to expand  the usage  of                                                            
these plates.                                                                                                                   
                                                                                                                                
2:02:27 PM                                                                                                                    
                                                                                                                                
DUANE BANNOCK,  Director, Division of Motor Vehicles,  Department of                                                            
Administration,   testified  via   teleconference  from   an  offnet                                                            
location.  He voiced  appreciation for  the efforts  exerted by  the                                                            
bill's  sponsor  in this  effort to  increase  "the  greater use  of                                                            
vanity or personalized  specialty license plates".  This legislation                                                            
is one component  of the improvements  the Department is  attempting                                                            
to implement at the DMV.                                                                                                        
                                                                                                                                
2:03:27 PM                                                                                                                    
                                                                                                                                
Senator Hoffman asked whether  the Department of Public Safety has a                                                            
position on this bill.                                                                                                          
                                                                                                                                
2:04:02 PM                                                                                                                    
                                                                                                                                
Mr. Jackson  responded  that the  Director  of the DMV  has been  in                                                            
contact with  the Department of Public  Safety. No problem  has been                                                            
identified. The license  plates simply provide the identification of                                                            
the vehicle. Legibility  of the license plate and  other such issues                                                            
are addressed  in provisions  addressing the  basic construction  of                                                            
the plate.                                                                                                                      
                                                                                                                                
2:04:25 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman  understood  therefore  that Department  of  Public                                                            
Safety is not opposed to the bill.                                                                                              
                                                                                                                                
2:04:30 PM                                                                                                                    
                                                                                                                                
Mr.  Jackson  responded  that  he  is  unaware  of  any opposition.                                                             
However, he deferred to Mr. Bannock.                                                                                            
                                                                                                                                
2:04:37 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman  recalled  that,  in  the  past,  when legislation                                                             
allowing for increased  diversification of plates was discussed, the                                                            
Department  of Public Safety had voiced  reservations. Therefore  he                                                            
questioned whether their position had changed in that regard.                                                                   
                                                                                                                                
[NOTE: Co-Chair Green resumed Chair of the meeting.]                                                                            
                                                                                                                                
2:04:59 PM                                                                                                                    
                                                                                                                                
Mr.  Jackson clarified  that  this  legislation  would  not add  any                                                            
plates to Statute  it would merely  make them available to  a "wider                                                            
range of vehicles".                                                                                                             
                                                                                                                                
AT EASE 2:05:20 PM / 2:08:16 PM                                                                                             
                                                                                                                                
2:08:19 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green requested  that  the fiscal  note  issue be  further                                                            
explained.                                                                                                                      
                                                                                                                                
2:08:22 PM                                                                                                                    
                                                                                                                                
Mr. Jackson clarified that  the State Affairs Committee fiscal note,                                                            
fiscal  note #1,  rather than  the  House Finance  Committee  fiscal                                                            
note,  fiscal note  #2, should  have accompanied  the  bill when  it                                                            
transmitted from the House to the Senate.                                                                                       
                                                                                                                                
Co-Chair Green acknowledged.                                                                                                    
                                                                                                                                
2:09:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Green stated that  a question has been raised in regards to                                                            
Fiscal  note  #1, in  that,  in addition  to  the  $5,000  operating                                                            
expenses,  it reflects  a capital  expenditures  expense of  $5,000.                                                            
Therefore,  she asked whether  the total  expense should be  $10,000                                                            
rather than the $5,000 reflected in fiscal note #1.                                                                             
                                                                                                                                
2:09:27 PM                                                                                                                    
                                                                                                                                
Mr. Jackson deferred to the Division of Motor Vehicles.                                                                         
                                                                                                                                
2:09:32 PM                                                                                                                    
                                                                                                                                
Mr. Bannock, after  consulting with Division staff,  stated that the                                                            
$5,000 capital  expense would be provided  for from a separate  fund                                                            
account. Therefore,  while the total expense would  be $10,000, only                                                            
the $5,000 operating expense would be required.                                                                                 
                                                                                                                                
Co-Chair Green requested  that clarification be sought in regards to                                                            
whether $10,000 should be the total amount reflected.                                                                           
                                                                                                                                
Mr. Bannock stated  that while the first year's total  expense would                                                            
amount  to  $10,000,  the  $5,000  capital   expense  is  not  being                                                            
requested. Only the operating expense is being requested.                                                                       
                                                                                                                                
2:11:18 PM                                                                                                                    
                                                                                                                                
Co-Chair Green asked therefore  whether the capital expense might be                                                            
more  correctly  identified  as Capital  Improvement  Project  (CIP)                                                            
receipts.                                                                                                                       
                                                                                                                                
Co-Chair Green  stated that the fiscal note issue  should be further                                                            
reviewed,  as  the  desire would  be  to  have  correct information                                                             
accompany the bill.                                                                                                             
                                                                                                                                
Mr. Bannock agreed that the fiscal note should be "perfect".                                                                    
                                                                                                                                
2:11:42 PM                                                                                                                    
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
AT EASE 2:12:05 PM / 2:12:22 PM                                                                                             
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 156(RLS) am                                                                                          
     "An Act relating to the membership and duties of and quorum                                                                
     requirements for the Alaska Commission on Aging; and providing                                                             
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
The bill was again before the Committee.                                                                                        
                                                                                                                                
Co-Chair  Green  removed  her earlier  objection  to  the  committee                                                            
substitute. [See Time Stamp 1:56:31 PM.]                                                                                        
                                                                                                                                
There  being no  further  objection,  the committee  substitute  was                                                            
adopted.                                                                                                                        
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being no  objection, SCS  CS HB  156(FIN)  was REPORTED  from                                                            
Committee with previous  zero fiscal note #1 dated February 23, 2005                                                            
from the Department of Health and Social Services.                                                                              
                                                                                                                                
AT EASE 2:13:11 PM / 2:15:25 PM                                                                                             
                                                                                                                                
2:15:30 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 46                                                                                                         
     "An Act making capital appropriations and appropriations to                                                                
      capitalize funds; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This  bill  had  previously   been  heard  in  the  Senate   Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
GINGER BLAISDELL,  Staff to Co-Chair Green, prefaced  her remarks by                                                            
stating  that  the committee  substitute  work  draft,  Version  24-                                                            
GS1074\F,  being  explained  would require  additional  amending  to                                                            
correct  spelling and other  errors. Requests  from Legislators  are                                                            
continuing to be incorporated.                                                                                                  
                                                                                                                                
Ms. Blaisdell  stated that  the first 72 pages  of Version  "F" list                                                            
"standard"  capital budget projects,  broken out by agency.  Sec. 4,                                                            
page 73 through  page 88, would address  the projects that  are also                                                            
included  in SB 155-APPROP:  SCHOOLS/UNIV/VIROLOGY  LAB/MUSEUM.  The                                                            
introductory  language in SB 46 specifies  that were SB 155  to fail                                                            
passage,  the projects  included  in that  bill would  be funded  by                                                            
general  funds  (GF) rather  than  by the  Permanent  Fund  Earnings                                                            
Reserve Account  as specified  in SB 155.  She pointed out  that the                                                            
lone difference  between the language  in SB 155 and that  of Sec. 4                                                            
is that  SB 155  has a "general  appropriation  of $141,000,000  for                                                            
school maintenance projects",  whereas SB 46 identifies each project                                                            
by school name.                                                                                                                 
                                                                                                                                
2:17:54 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green stated  that that  would account  for the number  of                                                            
pages in the section. This  detailed information would be helpful to                                                            
Legislators.                                                                                                                    
                                                                                                                                
2:18:02 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  stated that  the list includes  each school  that was                                                            
identified  on the Department of Education  and Early Development's                                                             
maintenance  list. A few other school  projects were also  included.                                                            
                                                                                                                                
Ms. Blaisdell  noted  that Sec.  6 on  page 89  would address  those                                                            
projects that  would funded by the interest earnings  of the Amerada                                                            
Hess Fund in the Permanent  Fund via the Alaska Capital Income Fund.                                                            
There  would be  a few  corrections  to this  list, as  it had  been                                                            
developed from an older list version.                                                                                           
                                                                                                                                
2:18:42 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell commented  that the majority of the projects in Sec. 6                                                            
were  included   in  Governor   Frank   Murkowski's  transportation                                                             
initiatives and Roads to Resources endeavor.                                                                                    
                                                                                                                                
2:19:00 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  stated  that Sec.  7 on  page 89  contains  "standard                                                            
language" that  is included in every capital bill.  It would include                                                            
such things  as federal  program receipts.  This section would  also                                                            
include  language  pertaining   to projects   that  were  originally                                                            
included in SB 97-SUPPLEMENTAL APPROPRIATIONS/CBR.                                                                              
                                                                                                                                
Ms. Blaisdell  pointed out that the  Alaska Gas Pipeline  project is                                                            
included in  the bill on page 94.  That project had been  previously                                                            
vetoed in the Fast Track Supplemental bill.                                                                                     
                                                                                                                                
2:20:05 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  continued that Reappropriations, which  are listed by                                                            
House District, are included  in Sec. 36 beginning on page 104. Most                                                            
of these were projects  that were "highlighted" to Committee Members                                                            
by the Department  of Commerce, Community and Economic  Development.                                                            
                                                                                                                                
2:20:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  conveyed that that is the traditional  procedure for                                                            
any money that has not been utilized.                                                                                           
                                                                                                                                
2:20:52 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  stated that  a reappropriation  could consist  of any                                                            
money that  had been appropriated  in an earlier fiscal year  and is                                                            
being reappropriated  into a following fiscal year.  The funds could                                                            
be reappropriated to support  an entirely different use. These funds                                                            
could  include such  things  as extended  lapse  dates  or scope  of                                                            
project changes.                                                                                                                
                                                                                                                                
2:21:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Green communicated  that the reappropriation projects would                                                            
provide for projects  "across the State and every  district probably                                                            
has something  going …" either at  the request of the district  or a                                                            
department.                                                                                                                     
                                                                                                                                
2:21:24 PM                                                                                                                    
                                                                                                                                
Ms.  Blaisdell  mentioned  that  the  projects  prefaced  by  "House                                                            
District  are typically"  advanced  by the Department  of  Commerce,                                                            
Community and Economic Development.                                                                                             
                                                                                                                                
2:21:39 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  communicated that a  few projects that were  included                                                            
in the  Supplemental  Bill are  provided for  in the Appropriations                                                             
sections of the bill.                                                                                                           
                                                                                                                                
2:22:00 PM                                                                                                                    
                                                                                                                                
Ms.  Blaisdell stated  that  the final  pages  of the  bill  contain                                                            
contingency language  to the effect of specifying  that, were SB 155                                                            
to fail, money  for the projects in that bill would  be provided for                                                            
through  this bill.  In other  words, language  in  this bill  would                                                            
negate duplication  of funding  those projects  specified in  SB 155                                                            
were SB 155 to pass. Similar  language is included in regards to the                                                            
Amerada Hess Capital Income Fund projects.                                                                                      
                                                                                                                                
2:22:31 PM                                                                                                                    
                                                                                                                                
Ms.  Blaisdell concluded  her  testimony  by specifying  that  lapse                                                            
dates and effective dates  are included in the final sections of the                                                            
bill.                                                                                                                           
                                                                                                                                
2:22:36 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green pointed out  that, other than  the inclusion  of the                                                            
Amerada  Hess  interest   earning  projects,  this   bill  would  be                                                            
characterized  as a typical  capital budget  bill in regards  to its                                                            
fund sources.                                                                                                                   
                                                                                                                                
2:22:53 PM                                                                                                                    
                                                                                                                                
Ms.  Blaisdell concurred.  Efforts  were made  to  provide a  fairly                                                            
traditionally  formatted bill. "Past  precedence" was adhered  to as                                                            
much as possible.                                                                                                               
                                                                                                                                
2:23:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Green asked whether  some of the items she had mentioned in                                                            
her initial review of Version "F" had been altered.                                                                             
                                                                                                                                
2:23:14 PM                                                                                                                    
                                                                                                                                
Ms. Blaisdell  clarified that the  contents of Version "F"  have not                                                            
been changed. The work  draft does contain some typographical errors                                                            
and incorrect  numbers; corrections  are being made and a  corrected                                                            
committee substitute would be provided.                                                                                         
                                                                                                                                
2:23:36 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green asked Members  to communicate  any corrections  they                                                            
might find to Ms. Blaisdell.                                                                                                    
                                                                                                                                
Ms. Blaisdell expressed  that she had identified ten items requiring                                                            
corrections.  In addition,  the Division of  Legislative Finance  is                                                            
addressing changes relating to Legislators' requests.                                                                           
                                                                                                                                
2:24:34 PM                                                                                                                    
                                                                                                                                
Senator  Hoffman  asked whether  a  capital  budget total  has  been                                                            
determined.                                                                                                                     
                                                                                                                                
Co-Chair Green replied that a total has not yet been determined.                                                                
                                                                                                                                
2:24:45 PM                                                                                                                    
                                                                                                                                
Senator Dyson  asked regarding language  in Sec. 12, page  91, lines                                                            
12 and 13.                                                                                                                      
                                                                                                                                
2:25:28 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green responded  that that language  is standard  in every                                                            
piece of legislation  pertaining to marine vessels;  specifically it                                                            
would allow for vessel retrofitting.                                                                                            
                                                                                                                                
2:26:07 PM                                                                                                                    
                                                                                                                                
Senator  Dyson asked  whether  that  language could  be  used as  "a                                                            
loophole".                                                                                                                      
                                                                                                                                
2:26:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Green replied "absolutely".                                                                                            
                                                                                                                                
2:26:20 PM                                                                                                                    
                                                                                                                                
Ms.  Blaisdell  stated  that  the  language  in  question  typically                                                            
pertains to Department  of Public Safety and Department  of Fish and                                                            
Game vessels.  She noted that "the  average amount for the  sale and                                                            
resale" of those vessels is $250,000 to $300,000 per year.                                                                      
                                                                                                                                
2:26:42 PM                                                                                                                    
                                                                                                                                
Senator Olson asked the reason that this loophole is not closed.                                                                
                                                                                                                                
2:26:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green responded that  with a fleet,  over the course  of a                                                            
year, it might  be necessary to discard  and/or sell parts.  Some of                                                            
the resulting  income  might be  used to rehabilitate  or  refurbish                                                            
another vessel, airplane,  or helicopter in the fleet. This language                                                            
is the traditional language  in this regard. She stated that Senator                                                            
Olson, being an airplane owner, would understand this.                                                                          
                                                                                                                                
2:27:26 PM                                                                                                                    
                                                                                                                                
Senator Olson voiced being  aware of the issue. However, his concern                                                            
is that,  as aircraft are  sold and new  ones bought, the  situation                                                            
builds  on itself.  This  is  evidenced  by the  request  for a  new                                                            
hangar. That hanger  would be filled, and then another  hangar would                                                            
be required. He disagreed with such progression.                                                                                
                                                                                                                                
Co-Chair Green  asked whether the concern is in regards  to the fact                                                            
that increasing the number  of aircraft in the fleet would require a                                                            
hangar.                                                                                                                         
                                                                                                                                
Senator Olson  stated that his concern  pertained to the  Department                                                            
of  Public  Safety  request for  a  hangar  that  was in  excess  of                                                            
$6,000,000.  That hangar  would be  filled and  then another  hangar                                                            
would be requested. This cycle would continue to escalate.                                                                      
                                                                                                                                
Co-Chair Green  asked whether Senator  Olson had observed  a request                                                            
for a six million dollar hangar in this legislation.                                                                            
                                                                                                                                
Senator Olson  responded that  his concern  is to "the mentality  on                                                            
that absurd request".                                                                                                           
                                                                                                                                
2:28:55 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green   reiterated  that  the  language   in  question  is                                                            
identical  to  that  of previous   bills. It  would  allow  for  the                                                            
continuance  of efforts.  To that  point, she stated  that it  would                                                            
also support  the efforts  being exerted  by the Governor  Murkowski                                                            
Administration  in regards  to reducing the  number of aircraft  and                                                            
marine vessels  in State operations. Some would argue  that there is                                                            
an insufficient  number of  aircraft and  vessels in State  service.                                                            
Others would argue that there are too many.                                                                                     
                                                                                                                                
2:29:17 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green  asked  whether  there   were  any  other  Committee                                                            
questions or concerns. None were forthcoming.                                                                                   
                                                                                                                                
Co-Chair Green  reiterated that a new committee substitute  is being                                                            
developed.                                                                                                                      
                                                                                                                                
2:29:36 PM                                                                                                                    
                                                                                                                                
Ms.  Blaisdell  specified  the  timeframe  in  which  Members  could                                                            
communicate any "technical  corrections" to her. Members' amendments                                                            
that might incur significant  changes to the bill could be developed                                                            
with the assistance  of Members' own  staff or with the Division  of                                                            
Legislative Legal and Research.                                                                                                 
                                                                                                                                
2:30:11 PM                                                                                                                    
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
2:30:27 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 178(STA) am                                                                                          
     "An Act relating to special motor vehicle registration plates;                                                             
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
The bill  was again before  the Committee.  [For previous  Committee                                                            
discussion, see Time Stamp 1:59:29 PM]                                                                                          
                                                                                                                                
Co-Chair Green  informed that a corrected  fiscal note for  the bill                                                            
would be presented at the Committee's next scheduled hearing.                                                                   
                                                                                                                                
The bill was again HELD in Committee.                                                                                           
                                                                                                                                
AT EASE 2:30:55 PM                                                                                                            
                                                                                                                                
[NOTE: Due  to technical  difficulties, the  portion of the  meeting                                                            
between Time Stamp  2:30:55 PM and 2:43:55 PM was  not recorded. The                                                            
minutes  presented  are  from  the  Finance  Committee  Secretary's                                                             
notes.]                                                                                                                         
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 91 am                                                                                                       
     "An Act relating to indecent exposure."                                                                                    
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Green noted that  a mother of a child who had been a victim                                                            
of indecent exposure had shared her angst with Co-Chair Green.                                                                  
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being no objection,  HB 91 am was reported from Committee with                                                            
three zero  fiscal notes: fiscal note  #1 dated March 21,  2005 from                                                            
the Department  of Administration;  fiscal  note #2 dated March  17,                                                            
2005 from the  Alaska Court System;  and fiscal note #3 dated  March                                                            
22, 2005 from the Department of Law.                                                                                            
                                                                                                                                
                                                                                                                                
     SENATE CS FOR HOUSE BILL NO. 35(L&C)                                                                                       
     "An Act  extending the termination  date of the State  Board of                                                            
     Registration  for Architects,  Engineers,  and Land  Surveyors;                                                            
     extending the term  of a temporary member of the State Board of                                                            
     Registration  for Architects,  Engineers,  and Land  Surveyors;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
2:40:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being  no  objection,  SCS  HB  35(L&C)   was  REPORTED  from                                                            
Committee with  previous fiscal note #1 dated January  25, 2005 from                                                            
the Department  of  Commerce, Community  and  Economic Development.                                                             
While there  would be zero  fiscal impact in  FY 06, there  would be                                                            
fiscal note beginning in FY 07.                                                                                                 
                                                                                                                                
[NOTE: This action was  rescinded later in the hearing and a Finance                                                            
Committee  committee substitute  was  reported out.  See Time  Stamp                                                            
3:18:10 PM.]                                                                                                                    
                                                                                                                                
2:41:11 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 75(RES)                                                                                
     "An Act relating  to the powers and duties of  the commissioner                                                            
     of  fish and game,  Board of  Fisheries, and  Board of  Game in                                                            
     promoting and preserving  fishing, hunting, and trapping in the                                                            
     state; and repealing  the power and duty of the commissioner of                                                            
     fish  and game to assist  the United  States Fish and  Wildlife                                                            
     Service in  the enforcement of federal laws regarding  fish and                                                            
     game."                                                                                                                     
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Green noted that  the Senate Resources committee substitute                                                            
before  the Committee  has a title  change to  that of the  original                                                            
bill.                                                                                                                           
                                                                                                                                
AT EASE 2:43:27 PM / 2:43:57 PM                                                                                             
                                                                                                                                
[NOTE: Audio Recording of the meeting resumed at this point.]                                                                   
                                                                                                                                
Senator  Stedman asked  regarding  language in  Sec. 4(a)(13),  page                                                            
seven  line  23  as   added  by  the  Senate  Resources   Committee;                                                            
specifically as to "how  extensive" the heritage look-back might be,                                                            
as  he recalled  a  time  when  hunting  eagles  and sea  lions  was                                                            
permissible.                                                                                                                    
                                                                                                                                
     (13)  promoting   hunting  and  trapping  and  preserving   the                                                            
     heritage of hunting and trapping in the state.                                                                             
                                                                                                                                
Co-Chair  Green  pointed  out  that the  activities  that  would  be                                                            
considered must be legal.                                                                                                       
                                                                                                                                
2:45:04 PM                                                                                                                    
                                                                                                                                
Senator  Olson,  noting  that   the  bill  had  been  modeled  after                                                            
legislation  adopted  by  the  State  of  Michigan,   asked  whether                                                            
consideration   had  been  provided   to  the  issues  of   Alaska's                                                            
subsistence  laws as well as to the  Alaska National Interest  Lands                                                            
Conservation  Act (ANILCA); specifically  whether provisions  in the                                                            
bill were contrary to those issues.                                                                                             
                                                                                                                                
Co-Chair  Green assumed  that that  would not be  the case.  Efforts                                                            
would  be made  to  allow the  bill's  sponsor  to testify  in  this                                                            
regard.                                                                                                                         
                                                                                                                                
2:46:01 PM                                                                                                                    
                                                                                                                                
Senator Olson asked that the sponsor be allowed to respond.                                                                     
                                                                                                                                
Co-Chair Green  ordered the bill SET ASIDE in order  for the sponsor                                                            
to provide testimony.                                                                                                           
                                                                                                                                
[NOTE: This bill is readdressed at Time Stamp 2:58:41 PM.]                                                                      
                                                                                                                                
2:46:26 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 24(STA)                                                                      
     "An Act  relating to reemployment  of and benefits for  retired                                                            
     teachers and public  employees and to teachers or employees who                                                            
     participated   in  retirement   incentive   programs  and   are                                                            
     subsequently  reemployed as a  commissioner; and providing  for                                                            
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Amendment  #1: This amendment  deletes all  material in Sections  14                                                            
and 15  beginning  on page  seven line  13 through  page eight  line                                                            
seven and inserts the following language.                                                                                       
                                                                                                                                
          Sec. 14. The uncodified law of the State of Alaska is                                                                 
     amended by adding a new section to read:                                                                                   
          APPLICABILITY OF SECS. 2, 4, AND 5 OF THIS ACT TO RETIRED                                                             
     TEACHERS  MAKING  AN  ELECTION  UNDER AS  14.25.043(b)  OR  (e)                                                            
     BEFORE JULY 1, 2005.  (a) A retired teacher who was rehired and                                                            
     made an election  under AS 14.25.043(b) or (e)  before November                                                            
     3,  2004,  may continue  to  receive  retirement  benefits  and                                                            
     medical  benefits  under AS 14.25.043(b)  or  (e) from July  1,                                                            
     2005, through  December 31, 2006, if that teacher  continues to                                                            
     serve in  the same position.  However, on January  1, 2007, the                                                            
     period  of   reemployment  to  which  the  teacher's   original                                                            
     election  under AS 14.25.043(b)  or (e)  applied is  considered                                                            
     terminated.   If the  teacher continues  as an active  teacher,                                                            
     that  teacher  may not  continue  to receive  benefit  payments                                                            
     while working as an  active teacher unless the employer rehires                                                            
     the teacher  under AS 14.25.043(b) or (e), as  amended by secs.                                                            
     4 and 5 of this Act, on or after January 1, 2007.                                                                          
          (b) A retired teacher who was rehired and made an                                                                     
     election  under AS 14.25.043(b) or (e) on or  after November 3,                                                            
     2004,  may not  continue  to receive  retirement  benefits  and                                                            
     medical  benefits under AS 14.25.043(b)  or (e) after  June 30,                                                            
     2005. On July 1, 2005,  the period of reemployment to which the                                                            
     teacher's  original  election  under  AS  14.25.043(b)  or  (e)                                                            
     applied is  considered terminated. If the teacher  continues as                                                            
     an active  teacher, that  teacher may  not continue to  receive                                                            
     benefit payments while  working as an active teacher unless the                                                            
     employer  rehires the teacher under AS 14.25.043(b)  or (e), as                                                            
     amended  by secs.  4 and  5 of this  Act, on  or after July  1,                                                            
     2005.                                                                                                                      
          (c) This section does not apply to an employer who may be                                                             
     required  to  provide  health  and medical  benefits  under  AS                                                            
     14.25.043(b),  as amended by sec. 4 of this Act,  regardless of                                                            
     whether  a teacher receives retirement  medical benefits  under                                                            
     this section.                                                                                                              
          Sec. 15. The uncodified law of the State of Alaska is                                                               
     amended by adding a new section to read:                                                                                   
          APPLICABILITY OF SEC. 7 OF THIS ACT FOR RETIRED EMPLOYEES                                                             
     MAKING AN ELECTION  UNDER AS 39.35.150(b) OR (e) BEFORE JULY 1,                                                            
     2005.  (a)  A retired  employee  who was  rehired  and made  an                                                            
     election under AS  39.35.150(b) or (e) before November 3, 2004,                                                            
     may  continue  to  receive  retirement   benefits  and  medical                                                            
     benefits  under  AS 39.35.150(b)   or (e)  from July  1,  2005,                                                            
     through December 31,  2006, if that employee continues to serve                                                            
     in the same position.   However, on January 1, 2007, the period                                                            
     of  reemployment  to which  the  employee's  original  election                                                            
     under AS 39.35.150(b)  or (e) applied is considered terminated,                                                            
     and, as to that employee,                                                                                                  
                (1) AS 39.35.150(b), as amended by sec. 7 of this                                                               
     Act, or AS 39.35.150(e) applies; and                                                                                       
                (2) if the employee continues as an active member,                                                              
     that  employee may  not continue  to receive  benefit  payments                                                            
     unless  the employer  hires  the employee  as a  result of  the                                                            
     competitive   hiring   process  required   by  the   applicable                                                            
     subsection  of AS 39.35.150(f),  (g), and (h), added  by sec. 8                                                            
     of this Act, on or after January 1, 2007.                                                                                  
          (b) A retired employee who was rehired and made an                                                                    
     election  under AS 39.35.150(b) or (e) on or  after November 3,                                                            
     2004,  may not  continue  to receive  retirement  benefits  and                                                            
     medical  benefits under AS 39.35.150(b)  or (e) after  June 30,                                                            
     2005. On July 1, 2005,  the period of reemployment to which the                                                            
     employee's  original  election  under  AS 39.35.150(b)  or  (e)                                                            
     applied is considered terminated, and, as to that employee,                                                                
                (1) AS 39.35.150(b), as amended by sec. 7 of this                                                               
     Act, or AS 39.35.150(e) applies; and                                                                                       
                (2) if the employee continues as an active member,                                                              
     that  employee may  not continue  to receive  benefit  payments                                                            
     while an  active member unless the employer hires  the employee                                                            
     as a result  of the competitive hiring process  required by the                                                            
     applicable  subsection of AS 39.35.150(f), (g),  and (h), added                                                            
     by sec. 8 of this Act, on or after January 1, 2007.                                                                        
          (c) This section does not apply to an employer who may be                                                             
     required  to  provide  health  and medical  benefits  under  AS                                                            
     39.35.150(b),  as amended by sec. 7 of this Act,  regardless of                                                            
     whether  a member receives  retirement  medical benefits  under                                                            
     this section."                                                                                                             
                                                                                                                                
In addition, the amendment inserts a new bill section on page                                                                   
eight, following line 15 as follows.                                                                                            
                                                                                                                                
     Sec. 20.  Sections 2, 4, 5, and 7 of this Act take effect                                                                  
     July 1, 2005."                                                                                                             
                                                                                                                                
Furthermore, " sec. 19" is deleted in Sec. 20 page eight line 16                                                                
and replaced with "secs. 19 and 20".                                                                                            
                                                                                                                                
Co-Chair Wilken moved Amendment #1.                                                                                             
                                                                                                                                
Co-Chair Green objected for explanation.                                                                                        
                                                                                                                                
MIKE  TIBBLES, Deputy  Commissioner,  Department  of Administration                                                             
explained that the amendment  would modify Sections 14 and 15 of the                                                            
bill.  Those sections  would "establish  three  different groups  of                                                            
individuals  that  have three  separate  termination  dates for  the                                                            
period  going forward  for  their rehire."  The  previous  committee                                                            
substitute,  Version 24-LS0211\X,  "did not  clearly identify  those                                                            
three  different groups  and  did not  clearly identify  when  their                                                            
period of reemployment  would be terminated".  This amendment  would                                                            
clarify the issues pertinent  to those three groups. The first group                                                            
would consist  of retired individuals  rehired prior to November  3,                                                            
2004.  That was  the date  upon which  the Department  had  notified                                                            
Public Employees  Retirement System  (PERS) and Teachers  Retirement                                                            
System  (TRS)  employers   in the  State   that  the  program  would                                                            
terminate July 1, 2005.                                                                                                         
                                                                                                                                
Co-Chair  Green  asked for  further  discussion  in regards  to  the                                                            
notification  date, as  she understood  that an  earlier notice  had                                                            
been sent to PERS/TRS employers in September 2004.                                                                              
                                                                                                                                
Mr. Tibbles clarified  that the Department's first  notification had                                                            
been  provided  in  November  2004.   However,  he  noted  that  the                                                            
Department had  received a Department of Law legal  memorandum [copy                                                            
not provided] previous to that.                                                                                                 
                                                                                                                                
Co-Chair  Green ascertained  therefore, that  the Department  of Law                                                            
memorandum  might  have been  received  in September.  However,  the                                                            
Department   of  Administration    notification   letter  had   been                                                            
distributed in November.                                                                                                        
                                                                                                                                
Mr. Tibbles concurred.                                                                                                          
                                                                                                                                
2:48:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Green recapped the amendment discussion to this point.                                                                 
                                                                                                                                
Mr.  Tibbles  clarified  that  a  retired  rehiree  hired  prior  to                                                            
November 3, 2004,  could continue to receive retirement  and medical                                                            
benefits from July 1, 2005 through December 31, 2006.                                                                           
                                                                                                                                
Co-Chair   Green  understood   that  that   person  would   then  be                                                            
terminated.                                                                                                                     
                                                                                                                                
Mr. Tibbles  affirmed that  as of December  31, 2006 "the period  of                                                            
employment  for  the  purposes   of  the  rehire  program  would  be                                                            
terminated".                                                                                                                    
                                                                                                                                
Mr.  Tibbles communicated   that that  person  would then  have  the                                                            
option to remain an employee  and be subject to the status they held                                                            
before  the rehire  program  began:  they  would contribute  to  the                                                            
system  and  accrue   additional  benefits  for  their  retirement;                                                             
however,  their retirement  benefits  would be  suspended. Or,  they                                                            
could  terminate their  employment  and "continue  to receive  their                                                            
retirement benefits".                                                                                                           
                                                                                                                                
Co-Chair  Green asked  regarding the  terms of the  second group  of                                                            
retired rehirees.                                                                                                               
                                                                                                                                
Mr. Tibbles explained  that the second group of retired  individuals                                                            
would have been rehired after November 3, 2004.                                                                                 
                                                                                                                                
Co-Chair  Green understood  that this groups'  participation  in the                                                            
rehire program  would be  terminated on June  30, 2005. Thereafter,                                                             
they could  continue as an  active employee  but would be unable  to                                                            
continue  to receive retirement  benefit payments  unless they  were                                                            
rehired under AS 14.25.043(b).                                                                                                  
                                                                                                                                
2:50:45 PM                                                                                                                    
                                                                                                                                
Mr. Tibbles stated  that the period of re-employment  for the second                                                            
group of individuals would end on June 30, 2005.                                                                                
                                                                                                                                
Mr. Tibbles  stated that the third  group of rehired retirees  would                                                            
consist  of those  rehired  after July  1, 2005.  Those individuals                                                             
would  be  required   to  apply  for  their  position   through  the                                                            
"sideboards"  established  in  this  bill.  Those  sideboards  would                                                            
include  such things  as requiring  the  employer  to document  that                                                            
specific  recruitment  efforts  had  been  made.  In  addition,  the                                                            
employer would  be required to contribute to the unfunded  liability                                                            
for that employee at the  same rate paid for all other employees and                                                            
they  would be  required to  provide active  health  care for  those                                                            
employees working full time.                                                                                                    
                                                                                                                                
2:52:45 PM                                                                                                                    
                                                                                                                                
In  response  to  a  question  from  Co-Chair   Green,  Mr.  Tibbles                                                            
explained  that TERS  employees are  addressed in  Sec. 14 and  PERS                                                            
employees  are addressed  in  Sec. 15 of  the amendment.  While  the                                                            
conditions in both sections  mirror each other, there is a different                                                            
set of recruitment standards for PERS employers.                                                                                
                                                                                                                                
Co-Chair Green  asked the reason that  PERS employees rehired  prior                                                            
to November  3,  2004 would  continue  to receive  their  retirement                                                            
benefits until December 31, 2006.                                                                                               
                                                                                                                                
Mr. Tibbles  explained that,  "those individuals  were told  in many                                                            
cases that  they could  continue to  receive their  benefit for  the                                                            
period of their reemployment." That was a liability issue.                                                                      
                                                                                                                                
Co-Chair Green acknowledged.                                                                                                    
                                                                                                                                
2:54:01 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken commented  that while the  concept of this  bill is                                                            
good; it is a confusing  bill to understand, as attested by the fact                                                            
that the Committee  is continuing to struggle with  the sequences of                                                            
the  dates.  Therefore,  he  suggested  that a  visual  timeline  be                                                            
developed  that   would  specify  the  benchmark  dates   and  other                                                            
pertinent  information.  This  would  assist  other  Legislators  in                                                            
understanding the terms of the bill "as it marches ahead."                                                                      
                                                                                                                                
Co-Chair Green concurred.                                                                                                       
                                                                                                                                
Senator Stedman concluded  that, as of January 1 2007, regardless of                                                            
whether an individual were  a PERS or TRS member, the rehire benefit                                                            
program as currently defined,  would end. At that point, any retired                                                            
rehiree must  be subject  to the proposed  "new screening  process".                                                            
Provisions  in this bill would provide  transition time to  existing                                                            
rehired retirees.                                                                                                               
                                                                                                                                
2:55:53 PM                                                                                                                    
                                                                                                                                
Mr. Tibbles agreed.                                                                                                             
                                                                                                                                
Senator Stedman  communicated that he had initially  understood that                                                            
the program would  end earlier than currently proposed;  however, he                                                            
accepted the "compromise" that has been reached.                                                                                
                                                                                                                                
Co-Chair Green removed her objection to the Amendment.                                                                          
                                                                                                                                
There being no further objection, Amendment #1 was ADOPTED.                                                                     
                                                                                                                                
Co-Chair  Wilken  moved  to  report   the  bill,  as  amended,  from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
There  being  no  objection  CS SS  SB  24(FIN)  was  REPORTED  from                                                            
Committee  with new zero  fiscal note dated  March 2, 2005  from the                                                            
Department of Administration.                                                                                                   
                                                                                                                                
2:58:41 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 75(RES)                                                                                
     "An Act relating  to the powers and duties of  the commissioner                                                            
     of  fish and game,  Board of  Fisheries, and  Board of  Game in                                                            
     promoting and preserving  fishing, hunting, and trapping in the                                                            
     state; and repealing  the power and duty of the commissioner of                                                            
     fish  and game to assist  the United  States Fish and  Wildlife                                                            
     Service in  the enforcement of federal laws regarding  fish and                                                            
     game."                                                                                                                     
                                                                                                                                
                                                                                                                                
This bill was  again before the Committee.  [See Time Stamp  2:43:27                                                            
PM for the earlier Committee discussion on the bill.]                                                                           
                                                                                                                                
Senator  Olson restated his  earlier question  regarding the  affect                                                            
the changes made in the  Senate Resources committee substitute might                                                            
have  in regards  to  federal  subsistence  laws pertaining  to  the                                                            
Alaska National Interest Lands Conservation Act (ANILCA).                                                                       
                                                                                                                                
HEATH  HILLIARD,  Staff to  Representative  Mike Kelly,  the  bill's                                                            
sponsor, responded  that, although  the bill's sponsor was  amenable                                                            
to the changes  proposed in the Senate  Resources Committee,  such a                                                            
question  had not  been raised.  While he  was uncertain  as to  the                                                            
affect  of  the  changes  on  the  subsistence  issue,  his  initial                                                            
perspective  would  be  that  the changes  would  have  very  little                                                            
impact.                                                                                                                         
                                                                                                                                
3:00:14 PM                                                                                                                    
                                                                                                                                
Senator  Olson pointed  out that the  basis for  his concern  is the                                                            
question   regarding  consumptive   and  non-consumptive   use,   as                                                            
addressed  in the  April  4, 2005  Memorandum  [copy  on file]  from                                                            
George  Utermohle,  Legislative   Council,  Division  of  Legal  and                                                            
Research   Services,  Legislative   Affairs   Agency  addressed   to                                                            
Representative Mike Kelly.                                                                                                      
                                                                                                                                
Mr. Hilliard responded  that the "the main point with  regard to the                                                            
issue of consumptive  and non-consumptive uses, is  that Legislative                                                            
Intent language  was included  to mirror the  language found  in the                                                            
Alaska  Constitution  in regards  to State  resources.  This is  the                                                            
result  of conversations  that occurred  in previous  committees  of                                                            
referral where  user groups were concerned  that the effort  was "to                                                            
prioritize consumptive  uses over non-consumptive uses… our response                                                            
to that"  was that  was not  the intent.  The  bill packet  contains                                                            
several  legal opinions  state support  the position  that the  bill                                                            
would not prioritize either  consumptive or non-consumptive use over                                                            
each other.                                                                                                                     
                                                                                                                                
Senator Olson acknowledged.                                                                                                     
                                                                                                                                
3:01:07 PM                                                                                                                    
                                                                                                                                
Mr. Hilliard  pointed out  that the only change  made in the  Senate                                                            
Resources  committee substitute  was the addition  of language  that                                                            
repealed  the power of the  commissioner of  the Department  of Fish                                                            
and Game to  work with the United  States Fish and Wildlife  Service                                                            
in the  enforcement  of federal laws  regarding  fish and game.  The                                                            
bill's sponsor was amenable to the addition of that language.                                                                   
                                                                                                                                
3:02:05 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green  recalled  the  Senate  Resources  Committee  adding                                                            
similar  language to  other pieces  of legislation  over the  years.                                                            
Another  issue that  has been  addressed  by that  committee is  the                                                            
issue of  Alaska State  Troopers "enforcing  what are not  typically                                                            
State Trooper  activities". The reasons for both these  issues being                                                            
addressed  might  have  been  the  desire   "not  to  subject  State                                                            
employees  to the  federal  role. That  is not  their  role …  their                                                            
obligation" is to address matters on State land.                                                                                
                                                                                                                                
Mr.  Hilliard clarified  that  the action  conducted  by the  Senate                                                            
Resources  Committee  would  not  "preclude  the  commissioner  from                                                            
participating,  it simply removes that as a mandate  from the powers                                                            
and duties."                                                                                                                    
                                                                                                                                
Co-Chair Green  asked whether the  State Constitution specifies  the                                                            
duties of each State department's commissioner.                                                                                 
                                                                                                                                
Mr. Hilliard  replied that  State Statute,  rather than the  State's                                                            
Constitution, outlines commissioners' responsibilities.                                                                         
                                                                                                                                
Co-Chair Green  remarked that the Constitution includes  the role of                                                            
department rather than the responsibilities of the commissioner.                                                                
                                                                                                                                
Mr. Hilliard agreed.                                                                                                            
                                                                                                                                
Senator  Hoffman, commenting  that Alaska  Natives have the  longest                                                            
heritage of  the activities addressed  in this bill, inquired  as to                                                            
how the sponsor  would "perceive"  to promote hunting, fishing,  and                                                            
trapping and to preserve the heritage.                                                                                          
                                                                                                                                
Mr. Hilliard  responded that  specific instructions  in this  regard                                                            
are not outlined in the  bill. While the Department of Fish and Game                                                            
feels  that  they currently  promote  these  activities,  they  have                                                            
determined that the language  provided in this bill would make their                                                            
Statutory authority and  requirement clearer. No specific ideas have                                                            
been conveyed  to the Department.  The desire of the Legislation  is                                                            
to clarify  that  the heritage  of  hunting, fishing,  and  trapping                                                            
should be promoted and preserved.                                                                                               
                                                                                                                                
Co-Chair  Green asked  Senator Ralph  Seekins, chair  of the  Senate                                                            
Resources  Committee, to comment  in regards  to the removal  of the                                                            
language  in Sec. 2(a)(1)  page two, lines  five through eight  that                                                            
required  the Commissioner  of the  Department of  Fish and Game  to                                                            
assist  the  United   States  Fish  and  Wildlife   service  in  the                                                            
enforcement of  federal laws and regulations pertaining  to fish and                                                            
game.                                                                                                                           
                                                                                                                                
3:06:15 PM                                                                                                                    
                                                                                                                                
SENATOR RALPH SEEKINS,  Chair, Senate Resources Committee, explained                                                            
that much  focus was provided  to State Statutes  that specify  that                                                            
the State  should not force  the Department  of Fish and Game,  and,                                                            
the Department's  Commissioner to assist the United  States Fish and                                                            
Wildlife  Service.  AS  16.05.050.  The  Powers and  Duties  of  the                                                            
Commissioner.  states that "the Commissioner  has…but not  by way of                                                            
limitation,  the  following  powers…."  The  result  of  the  change                                                            
recommended by the Senate  Resources Committee would be to eliminate                                                            
the requirement that the  Commissioner must assist the United States                                                            
Fish and  Wildlife Service  in the enforcement  of federal  laws and                                                            
regulations pertaining to fish and game.                                                                                        
                                                                                                                                
3:07:38 PM                                                                                                                    
                                                                                                                                
Senator Seekins  concluded therefore that the elimination  of Sec. 2                                                            
19(a)(1)  would provide  the Commissioner  the  option, rather  than                                                            
requiring  him,  to  assist.  The  Statutory  requirement  that  the                                                            
Commissioner must assist would be removed.                                                                                      
                                                                                                                                
In response  to a  question from  Senator Hoffman,  Senator  Seekins                                                            
reiterated  that   "the  Commissioner  has,  'but   not  by  way  of                                                            
limitation' the following  powers and duties". It would be "implied"                                                            
that  the  Commissioner  would   have  the  option  to  assist.  The                                                            
requirement that the Commissioner assist would be removed.                                                                      
                                                                                                                                
Co-Chair Green  expressed that the  option would not be "enumerated                                                             
in the listing".                                                                                                                
                                                                                                                                
Senator Hoffman questioned  the inclusion of the language "repealing                                                            
the power and  duty of the commissioner  of fish and game  to assist                                                            
the United  States Fish and Wildlife  Service in the enforcement  of                                                            
federal laws regarding  fish and game." in the bill's  title on page                                                            
one beginning on line three.                                                                                                    
                                                                                                                                
3:09:15 PM                                                                                                                    
                                                                                                                                
Senator  Seekins voiced  being unsure  of the reason  for the  title                                                            
change.  The purpose  of  the  Senate Resources  Committee  was  "to                                                            
simply repeal" Sec. 2(a)(1) and provide the option to assist.                                                                   
                                                                                                                                
Co-Chair  Green  asked  whether  Senator  Seekins  had  offered  the                                                            
amendment to remove Sec. 2(a)(1).                                                                                               
                                                                                                                                
Senator Seekins affirmed that he had offered the amendment.                                                                     
                                                                                                                                
Co-Chair Green  asked whether there  might be alternate language  to                                                            
that  included  in  the title  of  the  Senate  Resources  committee                                                            
substitute.                                                                                                                     
                                                                                                                                
Senator Seekins  suggested replacing "repealing the  power and" with                                                            
"repealing the duty" in the bill's title page one, line three.                                                                  
                                                                                                                                
Senator Hoffman  suggested that the  language added to the  original                                                            
bill's title in regards to the commissioner be entirely removed.                                                                
                                                                                                                                
Senator  Seekins understood  that a  bill's title  must reflect  the                                                            
content of the bill.                                                                                                            
                                                                                                                                
3:11:10 PM                                                                                                                    
                                                                                                                                
Following  a  brief  discussion  with  Co-Chair  Green  and  Senator                                                            
Hoffman, Senator  Seekins ascertained  that the original  bill title                                                            
would accommodate the changes made in the content of the bill.                                                                  
                                                                                                                                
Co-Chair Green  asked for confirmation,  that Senator Seekins  would                                                            
support reverting to the original bill title.                                                                                   
                                                                                                                                
Senator Seekins affirmed.                                                                                                       
                                                                                                                                
Amendment  # 1: This amendment  restores the  original title  of the                                                            
bill by  eliminating  the language  "; and repealing  the power  and                                                            
duty  of the commissioner  of  fish and  game to  assist the  United                                                            
States Fish and Wildlife  Service in the enforcement of federal laws                                                            
regarding  fish and game."  as specified in  the bill's title,  page                                                            
one  lines three  through  five, The  revised  title  would read  as                                                            
follows.                                                                                                                        
                                                                                                                                
     "An Act relating  to the powers and duties of  the commissioner                                                            
     of  fish and game,  Board of  Fisheries, and  Board of  Game in                                                            
     promoting  and preserving fishing, hunting and  trapping in the                                                            
     state."                                                                                                                    
                                                                                                                                
Senator Hoffman moved to adopt Amendment #1.                                                                                    
                                                                                                                                
Co-Chair  Green  clarified  that approval  of  the  amendment  would                                                            
revert the bill's title back to the original language.                                                                          
                                                                                                                                
There being no objection, Amendment #1 was ADOPTED.                                                                             
                                                                                                                                
3:13:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  moved  to  report   the  bill,  as  amended,  from                                                            
committee  with personal  recommendations  and  accompanying  fiscal                                                            
note.                                                                                                                           
                                                                                                                                
There  being no  objection,  SCS CS  HB  75(FIN) was  REPORTED  from                                                            
Committee  with previous zero  fiscal note  #1 dated March  14, 2005                                                            
from the Department of Fish and Game.                                                                                           
                                                                                                                                
3:13:26 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS 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 third  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MIKE PAWLOWSKI,  Staff  to Representative  Kevin  Meyer, the  bill's                                                            
sponsor, explained  that this bill  would establish liquor  licenses                                                            
for outdoor  recreation lodges. A  conceptual amendment,  offered by                                                            
Co-Chair Wilken, had been  approved at the previous meeting in order                                                            
to clarify that the business must be a licensed establishment.                                                                  
                                                                                                                                
Co-Chair Green agreed that that qualifier is important.                                                                         
                                                                                                                                
Mr. Pawlowski  informed the Committee that the sponsor  also agreed.                                                            
                                                                                                                                
Co-Chair  Wilken  moved  to  report   the  bill,  as  amended,  from                                                            
committee with  individual recommendations  and accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
There being  no objection the bill,  SCS CS HB 15(FIN) was  REPORTED                                                            
from Committee  with two previous fiscal notes: zero  fiscal note #1                                                            
dated January  24, 2005  from the  Department of  Fish and Game  and                                                            
zero fiscal  note #2 dated January  24, 2005 from the Department  of                                                            
Public Safety.                                                                                                                  
                                                                                                                                
3:15:38 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 19(RES)                                                                                              
     "An Act relating to pesticides and broadcast chemicals; and                                                                
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the third  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MIKE PAWLOWSKI,  Staff  to Representative  Kevin  Meyer, the  bill's                                                            
sponsor,  informed  the Committee  that  a corrected  Department  of                                                            
Environmental  Conservation  fiscal note, dated  April 28,  2005 had                                                            
been distributed.  While the  amounts reflected  in the fiscal  note                                                            
were  not altered,  clarifying  changes were  made  in the  Analysis                                                            
section  of  the  note  in  regards  to  the  amounts  of  chemicals                                                            
registered in  the State. The fees generated from  the program would                                                            
replace the general fund obligation by the year 2007.                                                                           
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal note.                                                                        
                                                                                                                                
There being no objection,  CS HB 19(FIN) was REPORTED from Committee                                                            
with  new  $221,600  fiscal  note  dated April  28,  2005  from  the                                                            
Department of Environmental Conservation.                                                                                       
                                                                                                                                
3:17:07 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 230                                                                                                         
     "An Act authorizing the making of loans for upgrade of                                                                     
     commercial fishing tender vessels and gear."                                                                               
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
IAN FISK, Staff  to Representative Bill Thomas, the  bill's sponsor,                                                            
asked  that  the bill  be  set  aside  awaiting  the arrival  of  an                                                            
additional testifier.                                                                                                           
                                                                                                                                
Co-Chair Green ordered the bill SET ASIDE.                                                                                      
                                                                                                                                
[NOTE:  This bill was  readdressed  later in the  meeting. See  Time                                                            
Stamp 3:26:24 PM.]                                                                                                              
                                                                                                                                
3:18:10 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR HOUSE BILL NO. 35(L&C)                                                                                       
     "An Act  extending the termination  date of the State  Board of                                                            
     Registration  for Architects,  Engineers,  and Land  Surveyors;                                                            
     extending the term  of a temporary member of the State Board of                                                            
     Registration  for Architects,  Engineers,  and Land  Surveyors;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This bill,  which had been reported  from Committee [See  Time Stamp                                                            
2:40:07 PM], was again before the Committee.                                                                                    
                                                                                                                                
AT EASE 3:19:12 PM / 3:20:49 PM                                                                                             
                                                                                                                                
VIC KOHRING, the bill's  sponsor, stated that this legislation would                                                            
extend  the Board  of Registration  for Architects,  Engineers,  and                                                            
Land Surveyors  until June 2009. The  Division of Legislative  Audit                                                            
recommended this four-year extension.                                                                                           
                                                                                                                                
Co-Chair  Green  informed  the sponsor  that  the  Committee,  being                                                            
unaware of a pending amendment, had reported out the bill.                                                                      
                                                                                                                                
Co-Chair Wilken  moved to RESCIND  the action of reporting  the bill                                                            
from Committee.                                                                                                                 
                                                                                                                                
There being  no objection,  the action  of REPORTING  the bill  from                                                            
Committee was RESCINDED.                                                                                                        
                                                                                                                                
Co-Chair  Green stated  that the  Labor & Commerce  Committee  (L&C)                                                            
version   of  the   bill  was   again  before   the  Committee   for                                                            
consideration.                                                                                                                  
                                                                                                                                
3:22:00 PM                                                                                                                    
                                                                                                                                
SAM  KITO,  Chair, Legislative  Liaison  Committee  for  the  Alaska                                                            
Professional   Design  Council,  informed   the  Committee   that  a                                                            
forthcoming   amendment  would  correct   an  inadvertent   drafting                                                            
omission  in the  L&C committee  substitute.  The proposed  language                                                            
would  provide  transition  language  pertaining  to  the  temporary                                                            
Landscape Architect Board Member position.                                                                                      
                                                                                                                                
Conceptual Amendment  #1: This amendment inserts a  new section into                                                            
the bill as follows.                                                                                                            
                                                                                                                                
     Sec. 3.  The uncodified law of  the State of Alaska  is amended                                                            
     by adding a new section to read:                                                                                           
     TRANSITION:  TEMPORARY BOARD  MEMBER. The  term of office  of a                                                            
     person   holding  a   temporary  position   on  the  Board   of                                                            
     Registration  of  Architects,  Engineers,  and  Lang  Surveyors                                                            
     before  July 1,  2005, expires  June  30, 2005.  The person  is                                                            
     eligible  for  reappointment  under  sec. 2  of this  Act.  The                                                            
     temporary member may  remain in the position until the governor                                                            
     names a new appointee or reappoints the temporary member.                                                                  
                                                                                                                                
Co-Chair Wilken moved to adopt Amendment #1.                                                                                    
                                                                                                                                
There being no objection, Amendment #1 was ADOPTED.                                                                             
                                                                                                                                
Co-Chair  Wilken  moved  to  report   the  bill,  as  amended,  from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
note.                                                                                                                           
                                                                                                                                
There  being  no  objection,  SCS  HB  35(FIN)   was  REPORTED  from                                                            
Committee with  previous fiscal note #1 dated January  25, 2005 from                                                            
the Department  of  Commerce, Community  and  Economic Development.                                                             
While there  would be zero  fiscal impact in  FY 06, there  would be                                                            
fiscal note beginning in FY 07.                                                                                                 
                                                                                                                                
3:24:18 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 136                                                                                                         
     "An  Act  restricting  the  authority  of a  court  to  suspend                                                            
     execution of a sentence  or grant probation in prosecutions for                                                            
     driving while under  the influence and prosecutions for refusal                                                            
     to submit  to a chemical test; and allowing a  court to suspend                                                            
     up  to 75 percent  of the  minimum fines  required for  driving                                                            
     while  under  the influence  and  for refusal  to  submit to  a                                                            
     chemical test if the defendant successfully completes a court-                                                             
     ordered treatment program."                                                                                                
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green stated that  the bill would  allow a portion  of the                                                            
offender's  fine  to be  "diverted"  to  pay for  the  costs of  the                                                            
offender's  court ordered treatment  program. It would also  require                                                            
the Court to adhere  to a specified minimum sentence  for the crimes                                                            
addressed in the bill.                                                                                                          
                                                                                                                                
Co-Chair  Green noted  that a House  Judiciary  Committee Letter  of                                                            
Intent accompanied the bill.                                                                                                    
                                                                                                                                
HEATHER NOBREGA,  Staff to Representative Norm Rokeberg,  the bill's                                                            
sponsor,  communicated  that  the  Letter  of Intent  had  not  been                                                            
addressed during the previous discussion on the bill.                                                                           
                                                                                                                                
Co-Chair  Green stated that  the Letter of  Intent should  accompany                                                            
the bill when it moved from Committee.                                                                                          
                                                                                                                                
3:25:34 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken moved to  report the bill  and the House  Judiciary                                                            
Letter of Intent from Committee  with individual recommendations and                                                            
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There  being  no  objection,  HB  136,  accompanied   by  the  House                                                            
Judiciary Letter of Intent  adopted April 12 2005, was REPORTED from                                                            
Committee  with zero fiscal  note #1 dated  March 21, 2005  from the                                                            
Department of Corrections;  zero fiscal note #2 dated March 17, 2005                                                            
from the Alaska  Court System; zero  fiscal note #3 dated  March 18,                                                            
2005 from  the Department  of  Public Safety;  indeterminate  fiscal                                                            
note #4 dated March 21,  2005 from the Department of Administration;                                                            
indeterminate  fiscal note  #5 dated March  20, 2005 from the  Civil                                                            
Division, Department of  Law; and indeterminate fiscal note #6 dated                                                            
March 20, 2005 from the Criminal Division, Department of Law.                                                                   
                                                                                                                                
3:26:24 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 230                                                                                                         
     "An Act authorizing the making of loans for upgrade of                                                                     
     commercial fishing tender vessels and gear."                                                                               
                                                                                                                                
                                                                                                                                
AT EASE 3:27:13 PM /3:27:15 PM                                                                                              
                                                                                                                                
The bill was again before the Committee.                                                                                        
                                                                                                                                
Co-Chair Green stated that  the bill had been held in order to allow                                                            
the Department  of Commerce, Community  and Economic Development  to                                                            
address a concern voiced by Co-Chair Wilken.                                                                                    
                                                                                                                                
Co-Chair  Wilken restated  his concern that  the State, through  its                                                            
"quasi-private  entity",  the Commercial  Fisheries  Revolving  Loan                                                            
Fund (CFRLF) in  the Department of Commerce, Community  and Economic                                                            
Development, might be competing with private enterprise.                                                                        
                                                                                                                                
3:28:34 PM                                                                                                                    
                                                                                                                                
IAN FISK, Staff  to Representative Bill Thomas, the  bill's sponsor,                                                            
communicated  that  the Commercial  Fishing  and  Agricultural  Bank                                                            
(CFAB), which  operates the CRFLF, was created to  fill a void being                                                            
experienced  by a sector  of the fishing industry.  That void  was a                                                            
lack of  financing options  being available  in the private  sector.                                                            
The goal  of CFAB is to  promote and enhance  the quality of  Alaska                                                            
seafood.                                                                                                                        
                                                                                                                                
3:29:07 PM                                                                                                                    
                                                                                                                                
GREG  WINEGAR,  Director, Division  of  investments,  Department  of                                                            
Commerce,  Community and  Economic Development,  explained that  the                                                            
clientele  served by  CFAB is  "for the  most part,  different  than                                                            
those" who  could receive financial  assistance through the  private                                                            
sector". The  program being offered  has a lower interest  rate than                                                            
that  offered  by  other  financial  entities   because  the  State,                                                            
supported by  years of discussion  with such entities as  the Salmon                                                            
Industry Task Force, has  determined that "improving the quality" of                                                            
the State's products is  important. The rate being offered is "prime                                                            
minus two"; the  availability of this rate has encouraged  fishermen                                                            
to make improvements in their operations.                                                                                       
                                                                                                                                
Senator   Stedman  noted   that  the  majority   of  the   financial                                                            
institutions offer a rate of "prime plus something".                                                                            
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being  no objection, HB 230  was REPORTED from Committee  with                                                            
previous  zero  fiscal  note  #1  dated  March  25,  2005  from  the                                                            
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
3:30:53 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 119(FIN)                                                                                             
     "An Act extending the termination date of the Alaska regional                                                              
     economic assistance program; and providing for an effective                                                                
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green stated that  this hearing  was scheduled to  address                                                            
any continuing Committee concerns.                                                                                              
                                                                                                                                
Co-Chair  Wilken  asked  regarding  the  Alaska  regional   economic                                                            
assistance   program's  proposed   termination  date;  specifically                                                             
whether  the  program could  be  subject  to  a three  or  four-year                                                            
termination  date   rather  than  the  five-year  termination   date                                                            
specified in the bill.                                                                                                          
                                                                                                                                
KACI SCHRODER, Staff to  Representative Bill Thomas, Co-Chair, House                                                            
Community  &  Regional  Affairs Committee,  voiced  that  a  shorter                                                            
termination date would be acceptable.                                                                                           
                                                                                                                                
Co-Chair Wilken asked for  confirmation that a shorter timeframe had                                                            
been discussed  and  would be acceptable  to the  House Community  &                                                            
Regional Affairs Committee.                                                                                                     
                                                                                                                                
Ms. Schroder  assured that  a three-year  termination date  would be                                                            
acceptable.                                                                                                                     
                                                                                                                                
Conceptual  Amendment #1:  This amendment  replaces the year  "2010"                                                            
with "2008"  in Section 1,  subsection Sec.  2 page one line  six as                                                            
follows.                                                                                                                        
                                                                                                                                
     Sec. 2 AS 44.33.895 is repealed July 1, 2008.                                                                              
                                                                                                                                
Co-Chair  Wilken moved  to adopt Amendment  #1.  The effect of  this                                                            
amendment would  be to specify a three-year rather  than a five-year                                                            
termination date.                                                                                                               
                                                                                                                                
There being no objection, Conceptual Amendment #1 was ADOPTED.                                                                  
                                                                                                                                
Co-Chair  Wilken  moved  to  report   the  bill,  as  amended,  from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
There  being no  objection, SCS  CS HB  119(FIN)  was REPORTED  from                                                            
Committee  with a new $650,000  fiscal note  dated May 4, 2005  from                                                            
the Alaska Industrial Development  & Export Authority, Department of                                                            
Commerce,  Community  and  Economic  Development  and  new  $650,000                                                            
fiscal  note  dated May  4,  2005  from the  Division  of  Community                                                            
Advocacy,   Department   of   Commerce,   Community   and   Economic                                                            
Development.                                                                                                                    
                                                                                                                                
3:33:20 PM                                                                                                                    
                                                                                                                                
RECESSED TO THE CALL OF THE CHAIR 3:33:55 PM: / 5:20:00 PM                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Green adjourned the meeting at 05:20 PM.                                                                               

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