Legislature(2007 - 2008)SENATE FINANCE 532

04/11/2008 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 366 PFD: EXECUTION /DISCLOSURE OF APPROPS TELECONFERENCED
Heard & Held
+ SB 160 MANDATORY UNIVERSAL HEALTH CARE TELECONFERENCED
Heard & Held
+ HB 65 PERSONAL INFORMATION & CONSUMER CREDIT TELECONFERENCED
Scheduled But Not Heard
+= HB 50 CHILD PLACEMENT COMPACT TELECONFERENCED
Heard & Held
+= HB 332 PRE-ELEMENTARY SCHOOL PROGRAMS TELECONFERENCED
Moved CSHB 332(FIN)(title am) Out Comte.
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 2 VOCATIONAL EDUC ACCOUNT TELECONFERENCED
Moved SCS HB 2(FIN) Out of Committee
+= HB 226 REPEAL TERMINATION OF STEP PROGRAM TELECONFERENCED
Heard & Held
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 11, 2008                                                                                           
                         9:22 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 9:22:29 AM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Hollis  French;  David Gray,  Staff,  Senator  Donny                                                                   
Olson;  Guy   Bell,  Assistant  Commissioner   and  Director,                                                                   
Division of Administrative Services,  Department of Labor and                                                                   
Workforce  Development;   Representative  Mark   Neuman;  Pat                                                                   
Pitney, Vice  President, Budget  and Planning, University  of                                                                   
Alaska; Rynnieva  Moss, Staff,  Representative John  Coghill;                                                                   
Clark   Bishop,  Commissioner,   Department   of  Labor   and                                                                   
Workforce  Development;  Marcia   Pickering,  Deputy  Compact                                                                   
Administrator,  Social Services  Program Coordinator,  Office                                                                   
of  Children's  Services  (OCS),  Department  of  Health  and                                                                   
Social   Services;  Representative   Harry  Crawford;   Jerry                                                                   
Burnett,  Director,  Division   of  Administrative  Services,                                                                   
Department  of  Revenue; Representative  Bryce  Edgmon;  Eddy                                                                   
Jeans, Director,  Education Support  Services, Department  of                                                                   
Education   and  Early   Development;  Representative   David                                                                   
Guttenburg;  Darwin Peterson,  Staff,  Senator Bert  Stedman;                                                                   
Karen  Lister,  Staff,  Representative  John  Coghill;  Miles                                                                   
Baker,  Staff,  Senator  Bert Stedman;  Marie  Darlin,  AARP,                                                                   
Capital City Task  Force; Clyde (Ed) Sniffen,  Jr., Assistant                                                                   
Attorney General, Department of Law;                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Maurice  Bailey,  President,  Vietnam  Veterans  of  America,                                                                   
MatSu                                                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 160    "An Act establishing an Alaska health care program                                                                    
          to ensure  insurance coverage for  essential health                                                                   
          services   for   all   residents  of   the   state;                                                                   
          establishing  the  Alaska   Health  Care  Board  to                                                                   
          define essential  health care services,  to certify                                                                   
          health  care plans  that  provide essential  health                                                                   
          care services, and to  administer the Alaska health                                                                   
          care  program  and  the Alaska  health  care  fund;                                                                   
          establishing  the Alaska health care  clearinghouse                                                                   
          to administer the Alaska  health care program under                                                                   
          the  direction  of the  Alaska  Health Care  Board;                                                                   
          establishing  eligibility   standards  and  premium                                                                   
          assistance    for   persons   with    low   income;                                                                   
          establishing standards  for accountable health care                                                                   
          plans;  creating  the   Alaska  health  care  fund;                                                                   
          providing  for  review  of  actions  and  reporting                                                                   
          requirements  related to  the health care  program;                                                                   
          and providing for an effective date."                                                                                 
                                                                                                                                
          SB 160 was heard and  HELD in Committee for further                                                                   
          consideration.                                                                                                        
                                                                                                                                
CSHB 65(FIN)                                                                                                                    
          "An Act relating to  breaches of security involving                                                                   
          personal  information,  credit  report  and  credit                                                                   
          score  security   freezes,  protection   of  social                                                                   
          security  numbers,  care  of records,  disposal  of                                                                   
          records,  identity theft,  credit cards,  and debit                                                                   
          cards,  and to  the jurisdiction  of the office  of                                                                   
          administrative hearings;  amending Rules 60 and 82,                                                                   
          Alaska Rules of Civil  Procedure; and providing for                                                                   
          an effective date."                                                                                                   
                                                                                                                                
          SCS CSHB  65(FIN) was REPORTED from  Committee with                                                                   
          "no recommendation"  and with indeterminate  fiscal                                                                   
          note #3  by the Office  of the Governor  and fiscal                                                                   
          note #5 by the Department of Administration.                                                                          
                                                                                                                                
HB 366 am                                                                                                                       
          "An  Act  relating  to  an  exemption  from  public                                                                   
          disclosure  of  certain   appropriations  from  the                                                                   
          dividend   fund;   relating   to   execution   upon                                                                   
          permanent   fund  dividends  by   civilian  process                                                                   
          servers using electronic  procedures; amending Rule                                                                   
          89, Alaska Rules of  Civil Procedure; and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
          HB  366 am  was REPORTED  from  Committee with  "no                                                                   
          recommendation"   and  with  a  new   indeterminate                                                                   
          fiscal note from the  Department of Corrections and                                                                   
          a previously  published zero  fiscal note  from the                                                                   
          Department of Revenue.                                                                                                
                                                                                                                                
                                                                                                                                
HB 2      "An Act relating to the vocational education                                                                          
          account and  appropriations from that  account; and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                
          SCS HB 2(FIN) was REPORTED  out of Committee with a                                                                   
          "do  pass"  recommendation  and with  a  previously                                                                   
          published  zero fiscal  note by  the Department  of                                                                   
          Administration,  and  with new  forthcoming  fiscal                                                                   
          notes  by the  Department  of  Labor and  Workforce                                                                   
          Development, the Department  of Education and Early                                                                   
          Development, and the University.                                                                                      
                                                                                                                                
CSHB 226(FIN)                                                                                                                   
          "An  Act extending  the  termination  of the  state                                                                   
          training   and  employment  program;   requiring  a                                                                   
          review  of  the  program;   and  providing  for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          SCS CSHB 226(FIN) was  REPORTED from Committee with                                                                   
          a  "no  recommendation"  and  with two  new  fiscal                                                                   
          notes  by the  Department  of  Labor and  Workforce                                                                   
          Development.                                                                                                          
                                                                                                                                
CSHB 50(JUD)                                                                                                                    
          "An Act relating to  the Interstate Compact for the                                                                   
          Placement  of Children; establishing  an interstate                                                                   
          commission for the placement  of children; amending                                                                   
          Rules   4  and   24(b),  Alaska   Rules  of   Civil                                                                   
          Procedure; and providing for an effective date."                                                                      
                                                                                                                                
          CSHB 50(FUD)  was REPORTED from Committee  with "no                                                                   
          recommendation" and  with previously published zero                                                                   
          fiscal note #1 by the  Department of Administration                                                                   
          and fiscal note #2 by  the Department of Health and                                                                   
          Social Services.                                                                                                      
                                                                                                                                
CSHB 332(FIN)(title am)                                                                                                         
          "An  Act defining an  elementary school  to include                                                                   
          certain  pre-elementary  programs  and relating  to                                                                   
          counting  pre-elementary  students  in  a  school's                                                                   
          average daily membership."                                                                                            
                                                                                                                                
          CSHB  332(FIN)(title   am)  was  REPORTED   out  of                                                                   
          Committee with a "do  pass" recommendation and with                                                                   
          zero fiscal note #1  by the Department of Education                                                                   
          and Early Development.                                                                                                
                                                                                                                                
CSHB 314(FIN) am                                                                                                                
          "An Act providing for  and relating to the issuance                                                                   
          of  general  obligation bonds  for  the purpose  of                                                                   
          paying the  cost of state transportation  projects;                                                                   
          and providing for an effective date."                                                                                 
          SCS  CSHB 314  (FIN)  was REPORTED  from  Committee                                                                   
          with a "do pass" recommendation  and fiscal note #1                                                                   
          by the  Office of the  Governor and fiscal  note #2                                                                   
          by the Department of Revenue.                                                                                         
                                                                                                                                
CSHB 44(FIN)                                                                                                                    
          "An Act relating to information from veterans on                                                                      
          the permanent fund dividend application form."                                                                        
                                                                                                                                
          CSHB 44(FIN) was heard and HELD in Committee for                                                                      
          further consideration.                                                                                                
                                                                                                                                
SENATE BILL NO. 160                                                                                                           
                                                                                                                                
     "An Act  establishing an  Alaska health care  program to                                                                   
     ensure insurance coverage  for essential health services                                                                   
     for all residents of the  state; establishing the Alaska                                                                   
     Health  Care  Board  to  define  essential  health  care                                                                   
     services,  to certify  health  care  plans that  provide                                                                   
     essential  health care services,  and to administer  the                                                                   
     Alaska health  care program  and the Alaska  health care                                                                   
     fund; establishing the Alaska  health care clearinghouse                                                                   
     to administer  the Alaska health care program  under the                                                                   
     direction of the Alaska Health  Care Board; establishing                                                                   
     eligibility   standards  and   premium  assistance   for                                                                   
     persons  with  low income;  establishing  standards  for                                                                   
     accountable  health  care  plans;  creating  the  Alaska                                                                   
     health care  fund; providing  for review of  actions and                                                                   
     reporting  requirements   related  to  the  health  care                                                                   
     program; and providing for an effective date."                                                                             
                                                                                                                                
SENATOR  HOLLIS  FRENCH,  Sponsor,  introduced  SB 160.    He                                                                   
stated  that Starbucks  pays more for  health insurance  than                                                                   
they pay  for coffee.   General Motors  pays more  for health                                                                   
insurance than  it does for  steel.   The reason the  bill is                                                                   
before  the  Committee  is  because  Corporate  American  has                                                                   
decided that there  needs to be something done  to reduce the                                                                   
cost of health  insurance before it drives businesses  out of                                                                   
business.                                                                                                                       
                                                                                                                                
Senator French explained  that the genesis of  the bill began                                                                   
when Mitt Romney  became governor of Massachusetts  and faced                                                                   
the loss of  millions of dollars in "dish funds",  funds that                                                                   
the federal government pays to  cover hospitals for the costs                                                                   
of  the  uninsured.    Governor   Romney  formulated  a  new,                                                                   
consumer-driven   approach  to   address  health   insurance.                                                                   
Senator  French termed  SB 160  a  consumer-driven bill  that                                                                   
allows  individuals  to  make   choices  about  their  health                                                                   
insurance.   It  is that  market  force that  will help  keep                                                                   
health insurance costs down.                                                                                                    
                                                                                                                                
Senator  French  reported  that there  are  100,000  Alaskans                                                                   
without health insurance.   Over 50 percent have  jobs.  This                                                                   
bill would  use federal,  state, and  employer money  to make                                                                   
the cost of health insurance affordable.                                                                                        
                                                                                                                                
Senator French  drew attention  to the controversial  aspects                                                                   
of the bill.  The first is "individual  mandate".  There is a                                                                   
call in the  bill for every single citizen  to acquire health                                                                   
insurance.  This  is necessary to spread out  the risk, which                                                                   
will lead to lower costs.  The  upside is "guaranteed issue":                                                                   
everyone who applies is guaranteed  coverage in the form of a                                                                   
voucher.                                                                                                                        
                                                                                                                                
9:29:19 AM                                                                                                                    
                                                                                                                                
Senator French dispelled  the myths about the bill.   It does                                                                   
not require those  currently insured to change  policies.  It                                                                   
should bring policy costs down  by up to 15 percent, which is                                                                   
about equal to  the amount those who are insured  have to pay                                                                   
for those  who are not  insured.  He  gave an example  of the                                                                   
uninsured receiving  care at emergency  rooms resulting  in a                                                                   
loss of revenue to hospitals.   It was estimated that in 2007                                                                   
Providence Hospital spent $90 million on the uninsured.                                                                         
                                                                                                                                
Senator  French  reported on  what  the  bill would  not  do:                                                                   
create  more   doctors  in  Alaska  or  deal   with  Medicare                                                                   
reimbursement rates.   He opined  that eventually there would                                                                   
be a solution to the problem of  the uninsured.  He requested                                                                   
the Committee take  a hard look at the bill,  which he termed                                                                   
a work  in progress.   He stressed  the importance  of policy                                                                   
decisions that will be made by  the Senate Finance Committee.                                                                   
                                                                                                                                
9:32:37 AM                                                                                                                    
                                                                                                                                
Senator French  referred to a  chart entitled  "Alaska Health                                                                   
Care: The Framework For Change"  (copy on file.)  There is an                                                                   
Alaska  Health Care  Board,  which certifies  private  health                                                                   
care plans.  There is a fund that  holds vouchers, similar to                                                                   
the federal  plan, based  on a sliding  scale.  He  described                                                                   
the various plans  based on income level.   Certified private                                                                   
health insurance plans are made  available for purchase using                                                                   
vouchers.                                                                                                                       
                                                                                                                                
9:34:41 AM                                                                                                                    
                                                                                                                                
Senator   French   addressed   the   fiscal   notes.      The                                                                   
Administration expects  the plan to  cost $333 million  in FY                                                                   
2010.   Senator  French  thought  that  figure to  be  wildly                                                                   
overstated.  He  pointed out on page 2 of fiscal  note #1, it                                                                   
says  that "the  estimated  cost  for insurance  premiums  is                                                                   
$11,000 per  person per  year, based on  the State  of Alaska                                                                   
employee insurance  plan."  He pointed out  several errors in                                                                   
that assumption.   No one is paying $11,000  per person; that                                                                   
amount  will  cover  a  family  of four.    The  fiscal  note                                                                   
incorporates  Indian Health  Service  recipients.   The  bill                                                                   
does  not  mandate  that those  individuals  join  the  plan.                                                                   
Also, the fiscal  note does not take into account  that there                                                                   
is an enormous  amount of money being paid  for uncompensated                                                                   
care, which causes  an increase in health  insurance premiums                                                                   
of about 15 percent.                                                                                                            
                                                                                                                                
9:37:13 AM                                                                                                                    
                                                                                                                                
Senator Thomas  asked if  there is  a minimum requirement  of                                                                   
services and  if the  Alaska Health Care  Board would  set up                                                                   
the  policies  to be  selected  by  the uninsured.    Senator                                                                   
French said  those requirements  are found  on page 7  of the                                                                   
bill in Section  231.54.250, essential health  care services.                                                                   
It  does  not  set  the  level   of  the  deductible  or  the                                                                   
copayment.                                                                                                                      
                                                                                                                                
Senator  Olson  asked  if  the   program  was  all-inclusive.                                                                   
Senator  French  said  it  was  comprehensive,  just  like  a                                                                   
regular  health insurance  policy.   Senator  Olson asked  if                                                                   
Providence  Hospital  was in  favor  of  the bill.    Senator                                                                   
French  said  they  were  and  he referred  to  a  letter  of                                                                   
support.  He  further explained that hospitals  like the idea                                                                   
of health  insurance for all.   Insurance companies  are also                                                                   
in favor of such a plan.                                                                                                        
                                                                                                                                
9:40:03 AM                                                                                                                    
                                                                                                                                
Senator  Huggins requested  information about  Massachusetts'                                                                   
universal health  care plan.   Senator French  explained that                                                                   
over a  year ago, Massachusetts  instituted universal  health                                                                   
insurance  using the  mechanism of  the state  income tax  to                                                                   
require  insurance.   They  started with  a  base of  600,000                                                                   
uninsured and  lowered that  number by one  third.   They are                                                                   
spending about  $900 million  a year.   He said a  comparable                                                                   
cost to  Alaska for  a similar  program would  be about  $150                                                                   
million.  Other states are considering similar plans.                                                                           
                                                                                                                                
Senator French  mentioned a difficulty  with that plan.   Now                                                                   
it is more difficult to see a primary care physician.                                                                           
                                                                                                                                
Senator Huggins referred to Canada's  plan and the difficulty                                                                   
of getting into see a doctor.                                                                                                   
                                                                                                                                
SB  160  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT-EASE:       9:42:43 AM                                                                                                     
                                                                                                                                
RECONVENED:    9:46:53 AM                                                                                                     
                                                                                                                                
HOUSE BILL NO. 2                                                                                                              
                                                                                                                                
     "An Act relating to the vocational education account                                                                       
     and appropriations from that account; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
Senator  Olson MOVED  to  ADOPT SCS  HB  2(FIN), labeled  25-                                                                   
LS006\K,  Mischel,  4/10/08, as  the  work draft  before  the                                                                   
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion purposes.                                                                              
                                                                                                                                
DAVID GRAY,  STAFF, SENATOR DONNY  OLSON, explained  that SCS                                                                   
HB 2(FIN)  combines two  bills, the original  HB 2,  which is                                                                   
Section 3 of  the bill, and SB 124, which  made distributions                                                                   
of funds for  various vocational technical  training programs                                                                   
throughout the state.   SB 124 unanimously passed  the Senate                                                                   
and had  15 co-sponsors.   The  SCS is an  attempt to  try to                                                                   
enact the essential parts of SB 124.                                                                                            
                                                                                                                                
Mr. Gray  explained that Section  1 increases  the percentage                                                                   
of the  contribution to  technical training education  funds.                                                                   
Section 2  puts the allocations  in affect for a  5-year time                                                                   
period.   Page 2 of the  bill lists the various  allocations.                                                                   
The University of Alaska allocation  has been increased.  Mr.                                                                   
Gray noted  an error  in the Galena  Project allocation.   He                                                                   
said that it should  be 4 percent, not 3 percent.   He listed                                                                   
the  allocations  for the  various  categories  in  HB 2,  as                                                                   
compared to  what they used  to be in  SB 124.   Missing from                                                                   
124 is  an allocation  of 15.5  percent to  the Alaska  Works                                                                   
Partnership.                                                                                                                    
                                                                                                                                
9:52:07 AM                                                                                                                    
                                                                                                                                
Mr. Gray addressed  a new feature in subsections  (e) and (f)                                                                   
- an  expenditure and  performance report  to the  department                                                                   
and to the legislature.                                                                                                         
                                                                                                                                
Mr. Gray  reported that Section  4 is a repeal  of uncodified                                                                   
law.                                                                                                                            
                                                                                                                                
9:53:06 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT a Conceptual Amendment:                                                                         
                                                                                                                                
     On page 2, line 7, change 3 percent to 4 percent.                                                                          
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Stedman mentioned  the  zero fiscal  note from  the                                                                   
Department of Administration.                                                                                                   
                                                                                                                                
9:53:58 AM                                                                                                                    
                                                                                                                                
GUY BELL,  ASSISTANT COMMISSIONER  AND DIRECTOR,  DIVISION OF                                                                   
ADMINISTRATIVE  SERVICES, DEPARTMENT  OF LABOR AND  WORKFORCE                                                                   
DEVELOPMENT,  said there would  be a  third fiscal  note once                                                                   
the  bill  is  adopted  by  the  Committee.    One  from  the                                                                   
University of  Alaska, one from  the Department  of Education                                                                   
and Early Development,  and one from the Department  of Labor                                                                   
and Workforce Development.                                                                                                      
                                                                                                                                
9:55:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MARK NEUMAN,  Sponsor,  explained  that HB  2                                                                   
started out  as a proposal  to create a vocational  education                                                                   
account  within the  general fund.   It  was a  way to  allow                                                                   
private  industry  to help  vocational  education.   It  does                                                                   
require  the Department  of Education  and Early  Development                                                                   
and  the Department  of Labor  and  Workforce Development  to                                                                   
target  programs that  need vocational  education funds.   He                                                                   
spoke in favor of the changes in the new SCS.                                                                                   
                                                                                                                                
9:56:33 AM                                                                                                                    
                                                                                                                                
Senator Huggins asked about the  UAA allocation of 45 percent                                                                   
on  page 2  of  the  bill.   He  wondered which  programs  it                                                                   
funded.   He Representative Neuman did  not know.  It  was an                                                                   
amendment with the addition of SB 124.                                                                                          
                                                                                                                                
PAT PITNEY,  VICE PRESIDENT, BUDGET AND  PLANNING, UNIVERSITY                                                                   
OF ALASKA,  addressed the distribution  of the  funding which                                                                   
goes to all campuses.                                                                                                           
                                                                                                                                
Senator Huggins  asked about MatSu's  allotment.   Ms. Pitney                                                                   
reported that  it varies  from year to  year.  The  funds are                                                                   
primarily for  workforce startup  or equipment.   She offered                                                                   
to provide more information.                                                                                                    
                                                                                                                                
9:59:57 AM                                                                                                                    
                                                                                                                                
Representative Neuman  commented that there needs  to be more                                                                   
money funded for vocational education.   He spoke in favor of                                                                   
jobs for Alaskans.  He strongly  advocated for the passage of                                                                   
HB 2.                                                                                                                           
                                                                                                                                
Co-Chair Hoffman  MOVED to REPORT SCS HB 2(FIN),  as amended,                                                                   
out  of Committee  with  individual recommendations  and  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SCS HB 2(FIN) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation  and with a  previously published  zero fiscal                                                                   
note  by  the Department  of  Administration,  and  with  new                                                                   
forthcoming  fiscal  notes by  the  Department  of Labor  and                                                                   
Workforce Development, the Department  of Education and Early                                                                   
Development, and the University.                                                                                                
                                                                                                                                
10:02:31 AM                                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 226(FIN)                                                                                                
                                                                                                                                
     "An Act extending the termination of the state training                                                                    
     and employment program; requiring a review of the                                                                          
     program; and providing for an effective date."                                                                             
                                                                                                                                
Co-Chair Hoffman  MOVED to ADOPT  SCS CSHB 226(FIN),  labeled                                                                   
25-LS0778\L,  Wayne, 4/9/08,  as  the work  draft before  the                                                                   
Committee.  Co-Chair Stedman OBJECTED.                                                                                          
                                                                                                                                
Co-Chair Stedman commented that  version L reduces the sunset                                                                   
date to 2010  and requires the department to  post its report                                                                   
on the Alaska Online Public Notice System.                                                                                      
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.   There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
10:04:08 AM                                                                                                                   
                                                                                                                                
RYNNIEVA MOSS, STAFF, REPRESENTATIVE  JOHN COGHILL, explained                                                                   
that job  training and  employment are  very important.   The                                                                   
sponsor feels that  this program is the best way  to get that                                                                   
accomplished.    The  current commissioner  has  inherited  a                                                                   
program  that needs  improvements  and has  appointed a  task                                                                   
force to  address some  of the problems  that face  the State                                                                   
Training  and   Employment  Program   (STEP).     She  voiced                                                                   
appreciation for the extension of the program through 2010.                                                                     
                                                                                                                                
Co-Chair Stedman  noted two fiscal notes from  the Department                                                                   
of Labor  and Workforce Development.   The one  from business                                                                   
services  is  for  $5,678,100  -  the amount  of  the  FY  09                                                                   
operating  budget  for  the  program.    The  other  is  from                                                                   
unemployment  insurance  for   $356,900  -  STEP's  share  of                                                                   
unemployment  insurance  tax   collection  cost  required  by                                                                   
federal law.                                                                                                                    
                                                                                                                                
10:05:31 AM                                                                                                                   
                                                                                                                                
CLARK   BISHOP,  COMMISSIONER,   DEPARTMENT   OF  LABOR   AND                                                                   
WORKFORCE  DEVELOPMENT, thanked  everyone for  their work  on                                                                   
the bill.                                                                                                                       
                                                                                                                                
Senator Thomas asked who requested  the sunset date extension                                                                   
of two years.   Mr. Bishop replied that the bill  came out of                                                                   
the Senate Labor and Commerce  Committee with a date of 2018.                                                                   
The  department  requested  and  would prefer  10  years  for                                                                   
continuity  reasons.   Senator Thomas  asked if  there was  a                                                                   
recommendation by  the auditors.   Mr. Bishop said  he didn't                                                                   
think so.                                                                                                                       
                                                                                                                                
Co-Chair Hoffman  MOVED to  REPORT SCS  CSHB 226(FIN)  out of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal notes.   There being NO  OBJECTION, it was so ordered.                                                                   
                                                                                                                                
SCS  CSHB 226(FIN)  was REPORTED  out of  Committee with  "no                                                                   
recommendation"  and  with  two   new  fiscal  notes  by  the                                                                   
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
AT-EASE:       10:09:13 AM                                                                                                    
                                                                                                                                
RECONVENED:    10:13:31 AM                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to RESCIND  the action  to move  SCS                                                                   
CSHB 226(FIN) from  Committee.  There being  NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
Co-Chair  Stedman noted  that  more work  was  needed on  the                                                                   
bill.                                                                                                                           
                                                                                                                                
AT-EASE:       10:15:06 AM                                                                                                    
                                                                                                                                
RECONVENED:    10:15:34 AM                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 50(JUD)                                                                                                 
                                                                                                                                
     "An  Act  relating to  the  Interstate Compact  for  the                                                                   
     Placement  of   Children;  establishing   an  interstate                                                                   
     commission  for  the  placement  of  children;  amending                                                                   
     Rules 4 and 24(b), Alaska  Rules of Civil Procedure; and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
RYNNIEVA MOSS, STAFF, REPRESENTATIVE  JOHN COGHILL, explained                                                                   
that the  Interstate Compact  for the  Placement of  Children                                                                   
has several  problems.   States have  been joining  forces to                                                                   
compose a new compact that has  accountability and allows the                                                                   
states  to  agree  on regulations  of  conformity  that  will                                                                   
result  in children  being placed  in foster  care a  shorter                                                                   
length  of  time  before  being  placed  with  relatives  and                                                                   
friends  in   other  states.     She  shared   Representative                                                                   
Coghill's  story  behind  deciding  to come  forth  with  the                                                                   
legislation in order to help children.                                                                                          
                                                                                                                                
Ms. Moss reported  that under this legislation,  work studies                                                                   
would be  completed in sixty  days, rather than  three months                                                                   
to a year, as happens now.                                                                                                      
                                                                                                                                
10:18:23 AM                                                                                                                   
                                                                                                                                
MARCIA  PICKERING,   DEPUTY  COMPACT  ADMINISTRATOR,   SOCIAL                                                                   
SERVICES PROGRAM  COORDINATOR, OFFICE OF  CHILDREN'S SERVICES                                                                   
(OCS), DEPARTMENT  OF HEALTH  AND SOCIAL SERVICES,  explained                                                                   
the requirements  of the new  Compact, which are  intended to                                                                   
return uniformity  to the process, establish  accountability,                                                                   
and ensure safe  and timely placements of children  in foster                                                                   
care to  homes in other states.   The Compact  should shorten                                                                   
the time  spent in  foster care to  two months because  there                                                                   
will be an opportunity  to request an assessment  vs. a full-                                                                   
blown home study.  The assessment  will allow for provisional                                                                   
approval from another state more quickly.                                                                                       
                                                                                                                                
Ms.  Pickering  explained  that  the provisions  in  the  new                                                                   
Compact  will  help  address   the  frustrations  the  state,                                                                   
judges,  and   others  have  had.     It  will   provide  for                                                                   
administrative  rule-making  and enforcement.    In the  past                                                                   
there has  not been  any accountability  in enforcement.   It                                                                   
will  also  provide for  supervision  services  for  children                                                                   
already placed.  It will provide  for uniform data collection                                                                   
and information sharing and require  oversight by an in-state                                                                   
advisory committee made up of  administration, judiciary, and                                                                   
legislative participants.                                                                                                       
                                                                                                                                
10:20:31 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  asked how  the bill  relates to the  Indian                                                                   
Child Welfare  Act.  Ms.  Pickering shared her  understanding                                                                   
of the purpose of the placement  responsibilities of the Act.                                                                   
The Compact  will help facilitate the placements  recommended                                                                   
by the  Act.  Co-Chair  Hoffman asked  if it conflicted  with                                                                   
the Indian  Child Welfare Act's  intention to  place children                                                                   
with a native family.  Ms. Pickering said it did not.                                                                           
                                                                                                                                
10:22:09 AM                                                                                                                   
                                                                                                                                
Senator  Elton referred  to  page 27,  Section  6, where  the                                                                   
Governor is replaced with the  Commissioner of the Department                                                                   
of  Health   and  Social   Services.     He  questioned   the                                                                   
constitutionality  of that change.   Ms.  Moss said  that the                                                                   
Department  of Law  was involved  in  drafting the  language.                                                                   
She related the history of analyzing  the language in the old                                                                   
Compact.  The  Governor's office, Attorney  General's office,                                                                   
as well as private attorneys,  have been involved in drafting                                                                   
this legislation.                                                                                                               
                                                                                                                                
Senator Elton  wondered if "the Governor may  delegate" would                                                                   
be  better.   Ms.  Moss referred  to statutes  that  transfer                                                                   
authority to the commissioner  to be on the commission and to                                                                   
be involved in promulgating regulations  for states to use as                                                                   
guidelines  for  placement of  children.   She  predicted  it                                                                   
would be  labor intensive  for the first  several years.   It                                                                   
would be consistent with other laws.                                                                                            
                                                                                                                                
Senator  Elton  assumed  it  would  not  restrict  an  acting                                                                   
commissioner.   Ms. Moss thought  an acting commissioner  was                                                                   
considered to  be the commissioner.  Senator  Elton requested                                                                   
the bill be set aside to answer that question.                                                                                  
                                                                                                                                
10:25:51 AM                                                                                                                   
                                                                                                                                
Senator Thomas  stated support  for the bill.   He  asked how                                                                   
many  children the  bill would  affect.   Ms. Pickering  said                                                                   
there  were about  150  children  placed outside  the  state.                                                                   
About 38 of those  are in relative foster care,  about 50 are                                                                   
in  residential  programs, and  the  rest are  with  parents,                                                                   
relatives, and adoption placement.                                                                                              
                                                                                                                                
CSHB 50  (JUD) was  heard and HELD  in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT-EASE:       10:28:01 AM                                                                                                    
                                                                                                                                
RECONVENED:    10:32:30 AM                                                                                                    
                                                                                                                                
HOUSE BILL NO. 366 am                                                                                                         
                                                                                                                                
     "An Act relating to an exemption  from public disclosure                                                                   
     of  certain  appropriations   from  the  dividend  fund;                                                                   
     relating to  execution upon permanent fund  dividends by                                                                   
     civilian  process servers  using electronic  procedures;                                                                   
     amending Rule  89, Alaska Rules of Civil  Procedure; and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
REPRESENTATIVE  HARRY  CRAWFORD,  Sponsor, explained  that  a                                                                   
number of years ago the law was  changed so that incarcerated                                                                   
felons  and  multiple  misdemeanants   could  not  collect  a                                                                   
Permanent Fund  Dividend.  Unfortunately, it  prevented their                                                                   
children  who  were owed  child  support from  receiving  it.                                                                   
This bill  ensures that those  children will not lose  out on                                                                   
their child support.   Most children of  incarcerated parents                                                                   
have  a child  support  order that  is $50  per  month.   The                                                                   
majority of the time the parents'  only assets are the PFD's.                                                                   
The bill  also provides for  electronic delivery of  writs by                                                                   
the Department of Revenue.                                                                                                      
                                                                                                                                
10:35:58 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman asked if the  bill would direct the PFD of a                                                                   
parent  that is incarcerated  to the  child.   Representative                                                                   
Crawford explained  that it would  require the  Department of                                                                   
Revenue to estimate  the amount of the child's  PFD and allow                                                                   
the child  to receive  child support payments.   The  bill is                                                                   
subject to appropriation by the legislature.                                                                                    
                                                                                                                                
Senator Thomas wondered  about the order of  dispersal of the                                                                   
PFD for incarceration  costs to the Department  of Correction                                                                   
and the  Department of Public  Safety.  He wondered  how much                                                                   
would   be   left   over   for    child   support   payments.                                                                   
Representative  Crawford replied  that the  bill simply  puts                                                                   
the  children  back  on  the  list  to  be  able  to  receive                                                                   
payments.  It does not make an appropriation.                                                                                   
                                                                                                                                
Representative  Crawford  reported  that  this  year  it  was                                                                   
estimated  that   there  would  be  about  $16   million  for                                                                   
incarceration  costs.    He  said   there  were  about  5,000                                                                   
children,  of  which  about  2,000 would  be  eligible.    He                                                                   
thought that there would be money left over.                                                                                    
                                                                                                                                
10:39:07 AM                                                                                                                   
                                                                                                                                
JERRY   BURNETT,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                   
SERVICES,  DEPARTMENT  OF  REVENUE,   reported  on  currently                                                                   
calculated PFD felon  funds.  There were about  10,188 people                                                                   
who  did  not qualify  for  their  dividend  as a  result  of                                                                   
incarceration, which  represented about $16,800 in  the FY 09                                                                   
budget.                                                                                                                         
                                                                                                                                
AT-EASE:       10:39:57 AM                                                                                                    
                                                                                                                                
RECONVENED:    10:40:47 AM                                                                                                    
                                                                                                                                
Mr. Burnett continued to explain  that currently the money is                                                                   
all appropriated to the Department  of Corrections and to the                                                                   
Department of  Public Safety's  Council on Domestic  Violence                                                                   
and Sexual Assault.  With the  passage of the bill, PFD felon                                                                   
funds would potentially  be available for grants  to children                                                                   
of incarcerated parents.                                                                                                        
                                                                                                                                
Mr. Burnett reported  that next year when the  FY 2010 budget                                                                   
is compiled,  the Department  of Revenue  would estimate  how                                                                   
many children  are not  in foster  care or  are wards  of the                                                                   
state  and whose  parents would  have received  a PFD  absent                                                                   
their  incarceration, and  bring  a budget  request for  that                                                                   
amount.   He guessed  that next year's  felon funds  would be                                                                   
about $21 million  to $22 million.  He said that  half of the                                                                   
felons who  are incarcerated have  child support orders.   It                                                                   
is estimated  that next year  less than 2,000  children would                                                                   
be eligible  for the  support, which  would require  about $4                                                                   
million to replace garnished dividends.                                                                                         
                                                                                                                                
Co-Chair  Stedman  said the  fiscal  notes  show zero.    Mr.                                                                   
Burnett said  they were zero because  the effect of  the bill                                                                   
only allows the appropriations  from the PFD felon fund to be                                                                   
made.  The fiscal notes do not show appropriations.                                                                             
                                                                                                                                
10:43:52 AM                                                                                                                   
                                                                                                                                
Senator  Thomas asked  if the  legislature would  appropriate                                                                   
money for  purposes of child support.   He wondered  how much                                                                   
would be available  after the other appropriations  are made.                                                                   
Mr.  Burnett  explained that  the  monies  can be  spent  for                                                                   
anything  on the  list without  disclosure  on the  PFD as  a                                                                   
reduction  to peoples'  dividends.   The  bill  allows for  a                                                                   
specific  appropriation  request for  a  child support  grant                                                                   
program.  He related that the  appropriation request could be                                                                   
made in several ways.  He gave  an example of how it could be                                                                   
done.                                                                                                                           
                                                                                                                                
10:45:47 AM                                                                                                                   
                                                                                                                                
Mr. Crawford  explained  that the bill  allows child  support                                                                   
payments to be back on the list.   No one expected to pay for                                                                   
items  in the  felon's  fund  to come  off  of  the backs  of                                                                   
children.  It was an unintended consequence.                                                                                    
                                                                                                                                
Senator Olson asked if the incarcerated  person has access to                                                                   
the money.  Representative Crawford said they did not.                                                                          
                                                                                                                                
Senator Thomas said he was supportive of the bill.                                                                              
                                                                                                                                
Representative Crawford  explained that child  support orders                                                                   
are  number one  in line  for  garnished wages  in all  other                                                                   
instances.                                                                                                                      
                                                                                                                                
Co-Chair  Stedman noted  that  the fiscal  notes  need to  be                                                                   
cleared up.                                                                                                                     
                                                                                                                                
HB  366  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
10:49:06 AM                                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 332(FIN)(title am)                                                                                      
                                                                                                                                
     "An  Act  defining  an  elementary   school  to  include                                                                   
     certain   pre-elementary   programs  and   relating   to                                                                   
     counting pre-elementary  students in a  school's average                                                                   
     daily membership."                                                                                                         
                                                                                                                                
REPRESENTATIVE  BRYCE  EDGMON,  Sponsor, explained  that  the                                                                   
bill would allow pre-elementary  school programs such as Head                                                                   
Start  to be  eligible for  federal E-Rates,  a subsidy  that                                                                   
flows  from  the  Universal  Service  Administrative  Company                                                                   
(USAC)  funds.    It  would  not  impact  the  average  daily                                                                   
membership.   It  would  transfer about  $14  million to  $20                                                                   
million a  year in federal funds  to Alaska.  It  would allow                                                                   
Head Start  to receive  federal funds  unencumbered  by state                                                                   
matching funds.   He gave the  Bristol Bay Native  Head Start                                                                   
program as an example.                                                                                                          
                                                                                                                                
Senator Olson  asked where  the $15 -  $20 million  goes now.                                                                   
Representative Edgmon  said it goes to K-12  facilities which                                                                   
must qualify  to receive the funds.   Senator Olson  asked if                                                                   
the  department is  in  favor of  the  bill.   Representative                                                                   
Edgmon said they were.                                                                                                          
                                                                                                                                
10:52:38 AM                                                                                                                   
                                                                                                                                
EDDY JEANS, DIRECTOR, EDUCATION  SUPPORT SERVICES, DEPARTMENT                                                                   
OF EDUCATION AND  EARLY DEVELOPMENT, testified  in support of                                                                   
the bill.   He noted  previous efforts  to get this  approach                                                                   
reauthorized in legislation.                                                                                                    
                                                                                                                                
10:53:17 AM                                                                                                                   
                                                                                                                                
Senator Huggins asked if there was a preference for pre-                                                                        
elementary programs  over elementary programs  regarding this                                                                   
federal  funding.   Mr.  Jeans explained  that  there was  no                                                                   
competition  because  it  is a  national  program.    Senator                                                                   
Huggins asked if the pre-school  program has to be on-site at                                                                   
an elementary school.   Mr. Jeans did not think  so.  Senator                                                                   
Huggins  asked   for  a  definition  of  a   recognized  pre-                                                                   
elementary program.  Mr. Jeans did not know.                                                                                    
                                                                                                                                
Senator Thomas clarified  that the bill does  not change what                                                                   
exists  today regarding  student  count numbers.   Mr.  Jeans                                                                   
agreed.                                                                                                                         
                                                                                                                                
10:55:27 AM                                                                                                                   
                                                                                                                                
Senator Elton MOVED to REPORT  CSHB 332(FIN)(title am) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 332(FIN)(title am) was REPORTED  out of Committee with a                                                                   
"do  pass" recommendation  and with  zero fiscal  note #1  by                                                                   
Department of Education and Early Development.                                                                                  
                                                                                                                                
AT-EASE:       10:55:58 AM                                                                                                    
                                                                                                                                
RECONVENED:    3:43:37 PM                                                                                                     
                                                                                                                                
HOUSE BILL NO. 366 am                                                                                                         
                                                                                                                                
     "An Act relating to an exemption  from public disclosure                                                                   
     of  certain  appropriations   from  the  dividend  fund;                                                                   
     relating to  execution upon permanent fund  dividends by                                                                   
     civilian  process servers  using electronic  procedures;                                                                   
     amending Rule  89, Alaska Rules of Civil  Procedure; and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair  Stedman  referred  to  the  revised  Department  of                                                                   
Corrections fiscal  note which has  been changed from  a zero                                                                   
note to  an indeterminate  note.  He  referred to  the second                                                                   
paragraph  on  the fiscal  note  which  states, "In  FY  2009                                                                   
approximately $9.1  million of the $31 million  Inmate Health                                                                   
Care budget  is PFD  Criminal Funds.   If  in the future  the                                                                   
legislature  chooses  to  reduce  the current  level  of  PFD                                                                   
Criminal   Funds   appropriated    to   the   Department   of                                                                   
Corrections,  a  General  Fund  appropriation  equal  to  the                                                                   
reduction would  be requested to maintain inmate  health care                                                                   
services."  It would be up to  the legislature to decide what                                                                   
would be appropriated annually.                                                                                                 
                                                                                                                                
3:45:31 PM                                                                                                                    
                                                                                                                                
Representative Crawford  estimated the amount  of felon funds                                                                   
for the  coming year to  be $21 to  $22 million.   The amount                                                                   
for inmate care will increase,  but there should be more than                                                                   
enough  funds to  handle  the child  support  request.   That                                                                   
amount  can't  be known  until  the  number of  children  are                                                                   
accounted  for.   He maintained  that  it could  be about  $4                                                                   
million and there should be enough available.                                                                                   
                                                                                                                                
3:46:38 PM                                                                                                                    
                                                                                                                                
Senator Elton MOVED  to REPORT HB 366 am from  Committee with                                                                   
individual  recommendations  and accompanying  fiscal  notes.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB   366   am   was  REPORTED   from   Committee   with   "no                                                                   
recommendation"  and with  a  new indeterminate  fiscal  note                                                                   
from  the   Department  of   Corrections  and  a   previously                                                                   
published zero fiscal note from the Department of Revenue.                                                                      
                                                                                                                                
3:47:35 PM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 50(JUD)                                                                                                 
                                                                                                                                
     "An  Act  relating to  the  Interstate Compact  for  the                                                                   
     Placement  of   Children;  establishing   an  interstate                                                                   
     commission  for  the  placement  of  children;  amending                                                                   
     Rules 4 and 24(b), Alaska  Rules of Civil Procedure; and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair Stedman  remarked that the bill was  held because of                                                                   
Senator Elton's concerns.   He referred to a  legal memo that                                                                   
addresses those concerns (copy on file.)                                                                                        
                                                                                                                                
Senator Elton agreed that his questions were answered.                                                                          
                                                                                                                                
Senator Thomas  MOVED to REPORT  CSHB 50(JUD)  from Committee                                                                   
with  individual  recommendations   and  accompanying  fiscal                                                                   
notes.  There being NO OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CSHB   50(JUD)  was   REPORTED   from   Committee  with   "no                                                                   
recommendation"  and with  previously  published zero  fiscal                                                                   
note #1 by  the Department of Administration  and fiscal note                                                                   
#2 by the Department of Health and Social Services.                                                                             
                                                                                                                                
AT EASE:       3:48:49 PM                                                                                                     
                                                                                                                                
RECONVENED:    3:55:58 PM                                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 226(FIN)                                                                                                
     "An Act extending the termination of the state training                                                                    
     and employment program; requiring a review of the                                                                          
     program; and providing for an effective date."                                                                             
                                                                                                                                
Co-Chair Stedman  reported that  this was the  second hearing                                                                   
on HB 226.  There was a need to clear up some issues.                                                                           
                                                                                                                                
Senator  Elton  MOVED  to  REPORT   SCS  CSHB  226(FIN)  from                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
AT EASE:       3:56:32 PM                                                                                                     
                                                                                                                                
RECONVENED:    3:56:46 PM                                                                                                     
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
SCS  CSHB  226(FIN)  was REPORTED  from  Committee  with  "no                                                                   
recommendation"  and  with  two   new  fiscal  notes  by  the                                                                   
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
AT EASE:       3:57:07 PM                                                                                                     
                                                                                                                                
RECONVENED:    4:29:37 PM                                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 44(FIN)                                                                                                 
                                                                                                                                
     "An Act relating to information from veterans on the                                                                       
     permanent fund dividend application form."                                                                                 
                                                                                                                                
4:30:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAVID   GUTTENBURG,  Sponsor,   presented  an                                                                   
overview  of bill.  This bill  would  instruct the  Permanent                                                                   
Fund to  put a question on  the dividend application  to find                                                                   
out if  the applicant is  a veteran.   This list  of veterans                                                                   
would go to  the Department of Military and  Veterans Affairs                                                                   
and to  a service organization  for outreach for  the purpose                                                                   
of   informing  veterans   about  earned   benefits.     This                                                                   
information could not be used for anything political.                                                                           
                                                                                                                                
Representative Guttenberg  explained that about  $2 billion a                                                                   
year  in benefits  is  provided  for  veterans, but  only  20                                                                   
percent  actually receive  benefits.   The  bill would  allow                                                                   
service groups to  reach out and notify veterans  of eligible                                                                   
benefits.                                                                                                                       
                                                                                                                                
4:32:13 PM                                                                                                                    
                                                                                                                                
Senator Thomas inquired  if there would be an  explanation on                                                                   
the  form.   Representative Guttenberg  said  there would  be                                                                   
information included  on the form  saying that  disclosure is                                                                   
voluntary and an opportunity to sign up for benefits.                                                                           
                                                                                                                                
4:33:17 PM                                                                                                                    
                                                                                                                                
Senator  Huggins asked  what  Military and  Veterans  Affairs                                                                   
would  do with  the information.   Representative  Guttenberg                                                                   
replied    that     congressionally    chartered     veterans                                                                   
organizations would send mailings out to veterans.                                                                              
                                                                                                                                
Senator Huggins  stated that DMVA  presently gets 214's.   He                                                                   
asked  what   they  can  do   with  those.     Representative                                                                   
Guttenberg said  that the  reason the PFD  is the  vehicle is                                                                   
because it  has the most  current address.   He did  not know                                                                   
about the 214's.                                                                                                                
                                                                                                                                
4:34:26 PM                                                                                                                    
                                                                                                                                
Senator Elton, speaking  as a vet, said he did  not want junk                                                                   
mail or  lots of unwanted  mail.  He  wondered if  there were                                                                   
restrictions  to prevent the  organizations from  selling the                                                                   
list.   Representative Guttenberg  said that  was a  topic of                                                                   
discussion   in  the   House.     The   department  and   the                                                                   
organizations have confidentiality  rules in place.  It would                                                                   
be a violation of the law to sell the lists.                                                                                    
                                                                                                                                
Senator Elton concluded that there  are provisions that would                                                                   
prevent   the   organizations    from   selling   the   list.                                                                   
Representative  Guttenberg said  that  was his  understanding                                                                   
also.                                                                                                                           
                                                                                                                                
4:36:05 PM                                                                                                                    
                                                                                                                                
MAURICE  BAILEY,  PRESIDENT,  VIETNAM  VETERANS  OF  AMERICA,                                                                   
MATSU,  testified  in support  of  the  bill.   He  spoke  of                                                                   
organizing an  Aviation Outreach Program to find  veterans in                                                                   
Alaska  in  order  to  get  health  care  and  other  benefit                                                                   
information  to them.   The  program  also supplies  American                                                                   
flags to villages for burial services.   Most of the veterans                                                                   
do not know how  to get the forms they need  because they are                                                                   
not tracked after active duty.  He shared a personal story.                                                                     
                                                                                                                                
4:40:49 PM                                                                                                                    
                                                                                                                                
Senator Huggins  commented on military organizations  such as                                                                   
Veteran   Service  Officers   who   provide  information   to                                                                   
veterans.   He said he was  proud of these  organizations for                                                                   
reaching out to veterans.                                                                                                       
                                                                                                                                
Representative  Guttenberg agreed with  Senator Huggins.   He                                                                   
pointed out that a lot of people  get lost in the system.  He                                                                   
shared a personal story about his father who was a veteran.                                                                     
                                                                                                                                
4:43:05 PM                                                                                                                    
                                                                                                                                
Senator  Elton spoke  of his  experience with  the G.I.  Bill                                                                   
paying for  his schooling.  He  liked the idea that  it would                                                                   
be voluntary  to use  the Permanent  Fund to  find out  about                                                                   
benefits.  He said he would not like it if it was required.                                                                     
                                                                                                                                
4:44:08 PM                                                                                                                    
                                                                                                                                
CSHB  44(FIN) was  heard and  HELD in  Committee for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT EASE:       4:44:21 PM                                                                                                     
                                                                                                                                
RECONVENED:    4:46:09 PM                                                                                                     
                                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 65(FIN)                                                                                                 
                                                                                                                                
     "An  Act  relating  to breaches  of  security  involving                                                                   
     personal  information, credit  report  and credit  score                                                                   
     security   freezes,   protection  of   social   security                                                                   
     numbers, care of records,  disposal of records, identity                                                                   
     theft,  credit  cards,  and  debit  cards,  and  to  the                                                                   
     jurisdiction of  the office of administrative  hearings;                                                                   
     amending  Rules  60  and   82,  Alaska  Rules  of  Civil                                                                   
     Procedure; and providing for an effective date."                                                                           
                                                                                                                                
Senator  Olson MOVED  to ADOPT  SCS HB  65(FIN), labeled  25-                                                                   
LS0311\F,  Bannister,  4/10/08,   as  the  working  document.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
4:47:27 PM                                                                                                                    
                                                                                                                                
DARWIN PETERSON,  STAFF, SENATOR  BERT STEDMAN,  reviewed the                                                                   
changes to the  new SCS.  On page 2, line 19,  the word "and"                                                                   
was changed  to  "or".  On  page 3,  line 25,  the words  "to                                                                   
state residents"  were added for  clarification.  On  page 5,                                                                   
line 31, language was deleted  that was added as an amendment                                                                   
in the  previous committee that  referred to radio  frequency                                                                   
devices.   Page 8, line 28, through  page 9, line 18,  is the                                                                   
section of  the bill  that describes  the exceptions  for the                                                                   
fifteen minute time limit on removing a security freeze.                                                                        
                                                                                                                                
Mr. Peterson continued to explain  that on page 11, lines 21-                                                                   
24, changes  were made to the  amount that a  consumer credit                                                                   
reporting agency may charge a  consumer for lifting a freeze.                                                                   
Previous language  stated that if a consumer  makes more than                                                                   
two requests, then the company  may charge $2.  That language                                                                   
was  problematic.   On  page 13,  lines  17-18, language  was                                                                   
inserted  to  conform  to the  previous  exceptions  for  the                                                                   
fifteen  minute  time limit.    On  page  16, line  8-9,  the                                                                   
language  was   added  referring  to  AS  21.36.460   and  AS                                                                   
21.39.035.                                                                                                                      
                                                                                                                                
Mr. Peterson turned  to page 19, lines 1-4,  a new subsection                                                                   
that refers  to exceptions  for accessing  a person's  social                                                                   
security  number, and  lines 8-12,  which defines  "insurer".                                                                   
On  page 28,  line 7,  the words  "or  expiration date"  were                                                                   
added after "credit  card number".   On page  29, lines 8-14,                                                                   
a  new  definition  for  credit   report,  cross  referencing                                                                   
federal  code,  was inserted.    On  page  30, line  22,  the                                                                   
effective date was  changed from January 1, 2009,  to July 1,                                                                   
2009, to conform with the start of the next fiscal year.                                                                        
                                                                                                                                
4:51:41 PM                                                                                                                    
                                                                                                                                
Senator Elton  referred to the  change made on page  11, line                                                                   
21,  about  the charge  to  consumers.    He asked  how  many                                                                   
agencies  a consumer  would need  to contact  to establish  a                                                                   
freeze.  Darwin Peterson deferred to Karen Lister.                                                                              
                                                                                                                                
KAREN LISTER,  STAFF, REPRESENTATIVE  JOHN COGHILL,  reported                                                                   
that it would be three credit reporting agencies.                                                                               
                                                                                                                                
Senator Elton  assumed that  the cost would  be $15,  not $5.                                                                   
Ms. Lister agreed.                                                                                                              
                                                                                                                                
4:53:08 PM                                                                                                                    
                                                                                                                                
Ms. Lister presented  an overview of the bill  and listed the                                                                   
7 articles that  deal with all areas of  personal information                                                                   
and  the rights  and  protections the  consumer  has and  can                                                                   
expect   from   individuals  that   handle   their   personal                                                                   
information:                                                                                                                    
                                                                                                                                
     Breach of Security Involving Personal Information                                                                          
     Credit Report and Credit Score Security Freeze                                                                             
     Protection of Social Security Number                                                                                       
     Disposal of Records                                                                                                        
     Factual Declaration of Innocence after Identity Theft;                                                                     
     Right to File Police Report Regarding Identity Theft                                                                       
     Truncation of Card Information                                                                                             
     General Provisions                                                                                                         
                                                                                                                                
4:58:03 PM                                                                                                                    
                                                                                                                                
Senator Thomas inquired who currently  has access to personal                                                                   
information.     Ms.  Lister  replied  that the  Fair  Credit                                                                   
Reporting  Act provides  guidelines that  control access  and                                                                   
disclosure  of  that  information.     Those  guidelines  are                                                                   
referenced  many  times  in  the   bill.    Credit  reporting                                                                   
agencies are subject to those requirements.                                                                                     
                                                                                                                                
5:00:02 PM                                                                                                                    
                                                                                                                                
Senator  Olson asked,  if the  bill passes,  if doctors  will                                                                   
still be  able to use Social  Security numbers  for reporting                                                                   
purposes.  Ms. Lister said they would.  She referenced that                                                                     
information in the bill.                                                                                                        
                                                                                                                                
Senator Olson found that information on page 20, lines 29-                                                                      
31.                                                                                                                             
                                                                                                                                
5:00:42 PM                                                                                                                    
                                                                                                                                
Senator  Huggins asked  how long  of a delay  there would  be                                                                   
before  the person  is  informed if  their  security file  is                                                                   
lost.  Ms.  Lister deferred to the Attorney  General's Office                                                                   
to report on the "allowable delay" term.                                                                                        
                                                                                                                                
Co-Chair Stedman noted that an amendment was forthcoming.                                                                       
                                                                                                                                
AT EASE:       5:02:07 PM                                                                                                     
                                                                                                                                
RECONVENED:    5:03:52 PM                                                                                                     
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT Amendment #1:                                                                                   
                                                                                                                                
     Page 1, line 3, following "debit cards,":                                                                                
     Insert "disclosure of the names and addresses of                                                                         
     permanent fund dividend applicants,"                                                                                     
                                                                                                                                
     Page 2, following line 1:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "* Sec. 2. AS 43.23.017 is amended by adding a new                                                                       
     subsection to read:                                                                                                        
          (b)  Notwithstanding (a) of this section, the                                                                         
     department may release the names and addresses of                                                                          
     permanent fund dividend applicants to a legislator of                                                                      
     this state and to the legislator's office staff."                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 30, line 6:                                                                                                           
     Delete "sec. 3"                                                                                                            
     Insert "sec. 4"                                                                                                            
                                                                                                                                
     Page 30, line 10:                                                                                                          
     Delete "sec. 3"                                                                                                            
     Insert "sec. 4"                                                                                                            
                                                                                                                                
     Page 30, line 19:                                                                                                          
     Delete "sec. 3"                                                                                                            
     Insert "sec. 4"                                                                                                            
                                                                                                                                
     Page 30, line 21:                                                                                                          
     Delete "Section 6"                                                                                                         
     Insert "Section 7"                                                                                                         
                                                                                                                                
     Page 30, line 22:                                                                                                          
     Delete "secs. 7 and 8"                                                                                                     
     Insert "secs. 8 and 9"                                                                                                     
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
5:04:13 PM                                                                                                                    
                                                                                                                                
MILES  BAKER,  STAFF,  SENATOR  BERT  STEDMAN,  presented  an                                                                   
overview of  the amendment.   The  amendment would  insert an                                                                   
addition to  AS 43.23.017,  which is  the section in  statute                                                                   
regarding  who  has access  to  the  names and  addresses  of                                                                   
Permanent  Fund   Dividend  applicants.     Prior   to  2004,                                                                   
legislative  offices  had  access  to  that data.    In  2004                                                                   
legislation  was passed  which had the  unintended effect  of                                                                   
eliminating  legislative access.    Currently, local,  state,                                                                   
and federal government agencies  can access the PFD list, but                                                                   
legislative  offices  cannot.    The  amendment  would  allow                                                                   
legislators and their staff would have access to the list.                                                                      
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
Senator  Elton  OBJECTED.   He  inquired  if there  were  any                                                                   
restrictions on legislative use of that information.                                                                            
                                                                                                                                
5:07:17 PM                                                                                                                    
                                                                                                                                
Mr.  Baker related  that  the  department could  not  release                                                                   
confidential  information  and  he assumed  that  legislative                                                                   
offices would  do the same.   The issue was  not specifically                                                                   
addressed in the amendment.                                                                                                     
                                                                                                                                
Senator Elton said he was comfortable  with having access for                                                                   
official purposes.   He  thought it  should be restricted  to                                                                   
only official purposes.                                                                                                         
                                                                                                                                
Mr.  Baker reported  that he  had discussed  this with  Legal                                                                   
Services  and the  original suggestion  included the  wording                                                                   
"legislative offices  for official  business".  That  was the                                                                   
intent  of  the  amendment, but  in  discussions  with  Legal                                                                   
Services it was  decided that Amendment 1 contained  the best                                                                   
description.    He related the  history of the  discussion of                                                                   
the wording.                                                                                                                    
                                                                                                                                
5:10:59 PM                                                                                                                    
                                                                                                                                
Senator Elton MOVED to ADOPT a  conceptual amendment: on line                                                                   
10, before the period, add the words "for official use."                                                                        
                                                                                                                                
Co-Chair Stedman agreed with that friendly amendment.                                                                           
                                                                                                                                
Senator Elton WITHDREW   his  OBJECTION.    There   being  NO                                                                   
further OBJECTION, Amendment #1 was adopted, as amended.                                                                        
                                                                                                                                
Co-Chair Stedman  MOVED to ADOPT  a conceptual  amendment, on                                                                   
page 4, line  1, insert "credit" after "consumer".   This was                                                                   
recommendation by Legal Services.                                                                                               
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
5:13:27 PM                                                                                                                    
                                                                                                                                
MARIE DARLIN,  AARP, CAPITAL  CITY TASK  FORCE, testified  in                                                                   
support of  the bill.  She  related that the subject  of this                                                                   
bill has been  a concern of AARP's  for a long time.   It has                                                                   
been  thoroughly  reviewed  and discussed  since  last  year.                                                                   
AARP  believes   that  HB  65   will  be  one  of   the  most                                                                   
comprehensive identity theft bills  in the U.S.  She referred                                                                   
to a  letter of support  by AARP (copy  on file.)   She asked                                                                   
for the Committee's support of the bill.                                                                                        
                                                                                                                                
5:16:26 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman referred  to a letter  from legal  services                                                                   
dealing with interstate  commence.   He inquired  if the bill                                                                   
creates a problem with interstate commerce.                                                                                     
                                                                                                                                
Ms.  Lister replied  that she  does  not see  a problem,  but                                                                   
would like to have a legal explanation.                                                                                         
                                                                                                                                
CLYDE  (ED)   SNIFFEN,  JR.,   ASSISTANT  ATTORNEY   GENERAL,                                                                   
DEPARTMENT  OF LAW, reported  that this  kind of  legislation                                                                   
has been passed in 42 states and is not a concern.                                                                              
                                                                                                                                
5:18:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to REPORT  SCS  CSHB  65(FIN)  from                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  OBJECTED.    He reviewed  the  two  fiscal                                                                   
notes.                                                                                                                          
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
SCS  CSHB  65(FIN)  was  REPORTED  from  Committee  with  "no                                                                   
recommendation" and with indeterminate  fiscal note #3 by the                                                                   
Office of the  Governor and fiscal note #5  by the Department                                                                   
of Administration.                                                                                                              
                                                                                                                                
AT EASE:    5:19:32 PM                                                                                                        
                                                                                                                                
RECONVENED: 5:27:44 PM                                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 314(FIN) am                                                                                             
                                                                                                                                
     "An Act  providing for and  relating to the  issuance of                                                                   
     general obligation  bonds for the purpose  of paying the                                                                   
     cost  of state  transportation  projects; and  providing                                                                   
     for an effective date."                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to ADOPT  SCS CSHB 314(FIN),  labeled                                                                   
25-GH2041\O,  Cook, 4/11/08, as  the working document  before                                                                   
the  Committee.   There being  NO OBJECTION,  work draft  25-                                                                   
GH2041\O was adopted.                                                                                                           
                                                                                                                                
5:28:41 PM                                                                                                                    
                                                                                                                                
MILES  BAKER,  STAFF, SENATOR  BERT  STEDMAN,  went over  the                                                                   
changes in the  new Senate Committee Substitute.   On page 2,                                                                   
line 14, the Sawmill project was  moved over from the capital                                                                   
budget.  The  next five projects are Senate  additions.  Page                                                                   
3, lines 1-19, are all House projects.   On line 13 there was                                                                   
a  name  change  to  Craig-Klawock  Highway.    On  line  16,                                                                   
"Gateway  Borough" was  removed for clarification.    On line                                                                   
18, "Matanuska Susitna  Borough" was removed.   Page 4, lines                                                                   
1-8, are Senate additions.  The  total bond bill in the House                                                                   
was $220.6  million, of  which $6.6  million was deleted  for                                                                   
two projects.   The Senate added $101,050,000 for  a total of                                                                   
$315,050,000.                                                                                                                   
                                                                                                                                
5:32:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman MOVED  to REPORT  SCS CSHB  314 (FIN)  from                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
SCS CSHB  314 (FIN)  was REPORTED from  Committee with  a "do                                                                   
pass" recommendation and fiscal  note #1 by the Office of the                                                                   
Governor and fiscal note #2 by the Department of Revenue.                                                                       
                                                                                                                                
AT EASE:       5:32:59 PM                                                                                                     
                                                                                                                                
RECONVENED:    5:57:59 PM                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 5:57 PM.                                                                                           

Document Name Date/Time Subjects