Legislature(2013 - 2014)SENATE FINANCE 532

02/24/2014 08:00 AM FINANCE


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08:02:57 AM Start
08:04:04 AM SB119
08:04:51 AM Fy 15 Governor's Budget Overview: Department of Public Safety
08:18:16 AM Fy 15 Governor's Budget Overview: Department of Environmental Conservation
08:32:44 AM SB124
08:58:25 AM SB132
09:13:00 AM SB109
09:45:00 AM SB104
10:39:39 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 119 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
Dept. of Environmental Conservation
Dept. of Public Safety
+ SB 124 EXTENDING COUNCIL ON DOMESTIC VIOLENCE TELECONFERENCED
Moved SB 124 Out of Committee
+ SB 132 MOTOR VEHICLE REGISTRATION FEES TELECONFERENCED
Moved CSSB 132(STA) Out of Committee
+ SB 109 ADVISORY COMMISSION ON FEDERAL MGT AREAS TELECONFERENCED
Heard & Held
+ SB 104 APPROPRIATIONS FROM THE DIVIDEND FUND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 24, 2014                                                                                          
                         8:02 a.m.                                                                                              
                                                                                                                                
8:02:57 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer  called the Senate Finance  Committee meeting                                                                    
to order at 8:02 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Dan Spencer, Director,  Division of Administrative Services,                                                                    
Department  of  Public  Safety;  Thomas  Cherian,  Director,                                                                    
Division   of   Administrative   Services,   Department   of                                                                    
Environmental   Conservation;    Bill   Griffith,   Facility                                                                    
Programs   Director,  Division   of  Water,   Department  of                                                                    
Environmental  Conservation; Edra  Morledge, Staff,  Senator                                                                    
Kevin Meyer;  Kris Curtis, Auditor, Division  of Legislative                                                                    
Audit;  Lauree   Morton,  Executive  Director,   Council  on                                                                    
Domestic Violence  and Sexual Assault, Department  of Public                                                                    
Safety;  Tally Teal,  Staff, Senator  Anna Fairclough;  Chad                                                                    
Hutchison,  Staff,   Senator  John  Coghill;   Senator  John                                                                    
Coghill;  Jean Davis,  Director, Support  Services Division,                                                                    
Department of Natural Resources;  Senator Fred Dyson; Joshua                                                                    
Banks,  Staff,  Senator  Fred   Dyson;  Chuck  Kopp,  Staff,                                                                    
Senator Fred Dyson; Dan  DeBartolo, Director, Permanent Fund                                                                    
Division,  Department of  Revenue;  Kaci Schroeder,  Special                                                                    
Assistant, Department of Corrections.                                                                                           
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Amy   Erickson,  Director   Division   of  Motor   Vehicles,                                                                    
Department  of  Administration;   Stan  Leaphart,  Executive                                                                    
Director, Citizens' Advisory Commission  on Federal Areas in                                                                    
Alaska.                                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 104    APPROPRIATIONS FROM THE DIVIDEND FUND                                                                                 
                                                                                                                                
          SB  104  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 109    ADVISORY COMMISSION ON FEDERAL MGT AREAS                                                                              
                                                                                                                                
          SB  109  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 119    BUDGET: CAPITAL                                                                                                       
                                                                                                                                
          SB  119  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 124    EXTENDING COUNCIL ON DOMESTIC VIOLENCE                                                                                
                                                                                                                                
          SB 124  was REPORTED out  of committee with  a "do                                                                    
          pass"    recommendation   and    with   previously                                                                    
         published fiscal impact note: FN1 (DPS).                                                                               
                                                                                                                                
SB 132    MOTOR VEHICLE REGISTRATION FEES                                                                                       
                                                                                                                                
          CS  SB 132  (STA)  was REPORTED  out of  committee                                                                    
          with   a  "do   pass"   recommendation  and   with                                                                    
          previously published zero fiscal note: FN1 (ADM).                                                                     
                                                                                                                                
FY 15 GOVERNOR'S BUDGET OVERVIEWS:                                                                                              
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
                                                                                                                                
SENATE BILL NO. 119                                                                                                           
                                                                                                                                
     "An Act making appropriations, including capital                                                                           
     appropriations   and   other   appropriations;   making                                                                    
     appropriations to capitalize funds."                                                                                       
                                                                                                                                
8:04:04 AM                                                                                                                    
                                                                                                                                
^FY  15 GOVERNOR'S  BUDGET  OVERVIEW:  DEPARTMENT OF  PUBLIC                                                                  
SAFETY                                                                                                                        
                                                                                                                                
8:04:51 AM                                                                                                                    
                                                                                                                                
DAN SPENCER, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT  OF  PUBLIC  SAFETY,  discussed  the  budget  for                                                                    
Department of Public Safety (DPS).  He outlined each request                                                                    
by reference number.                                                                                                            
                                                                                                                                
RN 6121                                                                                                                       
Aircraft and Vessel Repair and Maintenance                                                                                    
FY2015 Request: $1,000,000                                                                                                    
                                                                                                                              
Brief Summary and Statement of Need:                                                                                            
This annual project provides repair  and maintenance for the                                                                    
Department of  Public Safety's 44  aircraft and  41 vessels.                                                                    
These  assets   are  crucial  tools  used   to  achieve  the                                                                    
department's  mission to  ensure public  safety and  enforce                                                                    
fish  and wildlife  laws. These  funds are  used to  rebuild                                                                    
vessel and aircraft engines and  components when they r each                                                                    
the limits of safe useful life.                                                                                                 
                                                                                                                                
8:05:21 AM                                                                                                                    
                                                                                                                                
RN 37774                                                                                                                      
Alaska State Troopers Law Enforcement Equipment                                                                               
FY2015 Request: $500,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This   annual  project   provides  various   types  of   law                                                                    
enforcement equipment  that is deemed mission  critical. The                                                                    
Alaska State Troopers rely  upon capital improvement funding                                                                    
for equipment  purchases for day-to-day operations  in order                                                                    
to meet t he department's  mission of ensuring public safety                                                                    
and enforcing  state laws by protecting  lives, property and                                                                    
public peace.                                                                                                                   
                                                                                                                                
RN 45300                                                                                                                      
Alaska Wildlife Troopers Law Enforcement Equipment                                                                            
FY2015 Request: $500,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This  annual  project  provides   new  and  replacement  law                                                                    
enforcement  equipment  for  use   by  the  Alaska  Wildlife                                                                    
Troopers.  The Alaska  Wildlife Troopers  rely upon  capital                                                                    
improvement project  funding for purchase of  equipment used                                                                    
for day-to-day operations in order  to meet the department's                                                                    
mission of  ensuring public safety and  enforcing state laws                                                                    
by protecting lives, public peace, and wildlife resources.                                                                      
                                                                                                                                
RN 51707                                                                                                                      
Village Public Safety Officer Equipment                                                                                       
FY2015 Request: $500,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This  annual  project   provides  equipment  replacement  to                                                                    
support the  Village Public  Safety Officer  (VPSO) program.                                                                    
The Department  of Public Safety  supports the  VPSO program                                                                    
through  grants   to  non-profit  organizations   and  local                                                                    
governments.  The   VPSOs  rely  upon   capital  improvement                                                                    
project  funding  for  equipment  purchases  for  day-to-day                                                                    
operations  in order  to meet  the  department's mission  of                                                                    
public safety and enforcing state  laws by protecting lives,                                                                    
property, and public peace in rural communities.                                                                                
                                                                                                                                
RN 35825                                                                                                                      
Marine Fisheries Patrol Improvements                                                                                          
FY2015 Request: $1,200,000                                                                                                    
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This  annual   project  is  part  of   a  joint  enforcement                                                                    
agreement (JEA) with the  National Marine Fisheries Service.                                                                    
The project  is for  federal fiscal year  2014 JEA.  The JEA                                                                    
federal funding  has historically  been part of  the capital                                                                    
budget  since  it primarily  funds  equipment,  but it  also                                                                    
currently funds three  positions. Federally regulated marine                                                                    
fisheries occur  on a  year-round basis  in the  coastal and                                                                    
offshore  waters  of  Alaska.  Both the  federal  and  state                                                                    
governments share  an interest  in ensuring  these fisheries                                                                    
are  protected.  This  project   will  help  the  department                                                                    
achieve  its mission  to ensure  public  safety and  enforce                                                                    
fish and wild life laws and protecting wildlife resources.                                                                      
                                                                                                                                
8:06:45 AM                                                                                                                    
                                                                                                                                
RN 35688                                                                                                                      
Statewide Domestic Violence Shelter Improvements                                                                              
FY2015 Request: $2,000,000                                                                                                    
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This  project  provides  state funds  to  leverage  matching                                                                    
funds  from  the  Rasmuson Foundation,  and  possibly  other                                                                    
entities, to  provide deferred maintenance  improvements for                                                                    
domestic violence shelters  statewide. All domestic violence                                                                    
shelters  have  deferred  maintenance  needs  such  as  roof                                                                    
repairs,    window     replacements,    kitchen    upgrades,                                                                    
flooring/carpeting, furnishings, etc.                                                                                           
                                                                                                                                
8:07:23 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman requested  a list  of improvements  made to                                                                    
shelters  in  the previous  fiscal  year  and which  shelter                                                                    
would benefit from the FY2015 funds.                                                                                            
                                                                                                                                
Mr. Spencer said that he would provide the information.                                                                         
                                                                                                                                
8:07:50 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  explained   that  Standing  Together                                                                    
Against  Rape (STAR)  would send  a contractor  out to  each                                                                    
shelter in  order to  determine the  needs for  each entity.                                                                    
She  wondered if  the  funding request  would  be enough  to                                                                    
support  the 26  different  programs across  the state  that                                                                    
provided  shelter  for  women and  children  facing  in-home                                                                    
violence.                                                                                                                       
                                                                                                                                
Mr.  Spencer relayed  that a  statewide assessment  would be                                                                    
done  on all  domestic violence  shelters in  the state  and                                                                    
then  the  necessary  repairs   and  improvements  would  be                                                                    
prioritized. The repairs and upgrades  would then be handled                                                                    
by  a  statewide  group  rather  than  turning  the  funding                                                                    
directly over to the shelters.  He understood that there was                                                                    
potentially  an  amount  of additional  private  funds  that                                                                    
could be added to the appropriation.                                                                                            
                                                                                                                                
8:09:46 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough   understood  that  the   Council  on                                                                    
Domestic Violence  and Sexual  Assault in  coordination with                                                                    
the Rasmuson  Foundation would  be providing  the allocation                                                                    
and not  the state. She  said that  the state was  trying to                                                                    
fortify the shelter  and was going to  let the appropriation                                                                    
be managed by the council.                                                                                                      
                                                                                                                                
Mr. Spencer replied  that that was correct.  He continued to                                                                    
list the budget requests.                                                                                                       
                                                                                                                                
8:11:44 AM                                                                                                                    
                                                                                                                                
RN 41788                                                                                                                      
Deferred Maintenance, Renewal, Repair and Equipment                                                                           
FY2015 Request: $1,350,000                                                                                                    
                                                                                                                              
Brief Summary and Statement of Need:                                                                                            
This annual  project allows the Department  of Public Safety                                                                    
to  address  some  of the  deferred  maintenance  needed  in                                                                    
buildings   throughout  Alaska.   The  department   occupies                                                                    
various  facilities  in  66  locations   with  a  number  of                                                                    
electrical/mechanical  code issues,  as well  as energy  and                                                                    
security  improvements that  need to  be addressed.  Storing                                                                    
evidence,   protecting   department-owned   equipment,   and                                                                    
providing employees with safe  working conditions allows the                                                                    
department to meet its mission.  The following requests were                                                                    
allocations under this appropriation:                                                                                           
                                                                                                                                
RN 58735                                                                                                                      
Anchorage - Alaska Bureau of Investigation Headquarters                                                                       
Roof Repair                                                                                                                   
FY2015 Request: $100,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This   project  will   allow  for   the  Alaska   Bureau  of                                                                    
Investigation building roof repairs.                                                                                            
                                                                                                                                
RN 58736                                                                                                                      
Bethel - Trooper Office Improvements and Hangar Energy                                                                        
Repairs                                                                                                                       
FY2015 Request: $500,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
The State  Trooper office and  hangar in Bethel are  in need                                                                    
of improvements that were identified  by a survey and energy                                                                    
audit  done in  2011. Identified  issues include  repairs to                                                                    
the  hangar  foundation,   aircraft  door,  and  ventilation                                                                    
system.  The  office  needs   improvements  such  as  energy                                                                    
efficiency upgrades and windows replacement.                                                                                    
                                                                                                                                
RN 58738                                                                                                                      
Soldotna - Trooper Post Facility Repairs                                                                                      
FY2015 Request: $150,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
The  Soldotna Alaska  State Trooper  office  building is  in                                                                    
need of  repair and  renovations. This project  will provide                                                                    
separate   public  restrooms,   exit   signs,  heating   and                                                                    
ventilation  improvements, and  safety and  building repairs                                                                    
and renovations for the Soldotna Trooper Post facility.                                                                         
RN 58737                                                                                                                      
Fairbanks - Facility and Energy Repairs                                                                                       
FY2015 Request: $400,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
The  Fairbanks  facility  is  in need  of  code  and  energy                                                                    
repairs.  This   project  will  provide  upgrades   such  as                                                                    
replacing  in-wall wiring,  circuit breaker  panels, helipad                                                                    
renovations,  and  other  building  energy  efficiencies  or                                                                    
electrical code or safety issues.                                                                                               
                                                                                                                                
RN 58740                                                                                                                      
Statewide Facility Security Renovations and Electrical                                                                        
Upgrades                                                                                                                      
FY2015 Request: $200,000                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                            
This  project will  upgrade and  secure office  entrances to                                                                    
protect   staff  and   provide   electric  system   upgrades                                                                    
statewide.                                                                                                                      
                                                                                                                                
8:12:38 AM                                                                                                                    
                                                                                                                                
Senator Olson looked at RN  6121: Aircraft Vessel Repair and                                                                    
Maintenance. He asked for  more information regarding moving                                                                    
the P/V Stimson from Dutch Harbor to Kodiak.                                                                                    
                                                                                                                                
Mr.  Spencer responded  that  the items  listed  on the  P/V                                                                    
Stimson were  routine and  were not  dependent on  where the                                                                    
vessel was based. He noted that  there was a proposal in the                                                                    
Operating Budget to  move the vessel from its  base in Dutch                                                                    
Harbor  to Kodiak,  but the  move would  not affect  Capital                                                                    
Projects.                                                                                                                       
                                                                                                                                
8:13:59 AM                                                                                                                    
                                                                                                                                
Senator Olson  spoke to RN  45300: Alaska  Wildlife Troopers                                                                    
Law  Enforcement  Equipment.  He   asked  how  much  of  the                                                                    
equipment replacement and repairs  was related to the number                                                                    
of airplane accidents over the past few seasons.                                                                                
                                                                                                                                
Mr. Spencer  did not  believe that any  of the  repairs were                                                                    
specifically related to accidents. He  said that in the past                                                                    
year, aside  from one helicopter  crash, there had  been two                                                                    
incidents  with aircraft  booth of  which had  involved prop                                                                    
strikes.                                                                                                                        
                                                                                                                                
Senator Olson  asked whether the  pilots of the  prop strike                                                                    
incidents had been given  additional training or disciplined                                                                    
in any way.                                                                                                                     
                                                                                                                                
Mr. Spencer responded that he  would look into the situation                                                                    
and get back to the committee.                                                                                                  
                                                                                                                                
8:15:25 AM                                                                                                                    
                                                                                                                                
Senator Olson wondered if the  troopers were still signed up                                                                    
with the Medallion Program.                                                                                                     
                                                                                                                                
Mr. Spencer  agreed to  provide the  information at  a later                                                                    
date.                                                                                                                           
                                                                                                                                
8:15:43 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough noticed  that many appropriations were                                                                    
for  maintenance. She  asked how  much money  the department                                                                    
was sitting on  and whether they expended each  of the funds                                                                    
each year.                                                                                                                      
                                                                                                                                
Mr. Spencer responded no. He  elaborated that the department                                                                    
often found itself  in the situation where  there was either                                                                    
not enough  funding in one  particular year and  other years                                                                    
when  there  was  additional  funding.   He  said  that  the                                                                    
department needed  to have an  amount of money  available at                                                                    
any particular point in time  during any particular year. He                                                                    
gave an example from years past.                                                                                                
                                                                                                                                
Co-Chair Meyer handed the gavel to Vice-Chair Fairclough.                                                                       
                                                                                                                                
8:16:59 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:18:08 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^FY   15   GOVERNOR'S   BUDGET   OVERVIEW:   DEPARTMENT   OF                                                                  
ENVIRONMENTAL CONSERVATION                                                                                                    
                                                                                                                                
8:18:16 AM                                                                                                                    
                                                                                                                                
THOMAS   CHERIAN,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES,   DEPARTMENT    OF   ENVIRONMENTAL   CONSERVATION,                                                                    
discussed  the   FY15  Capital   Budget  requests   for  the                                                                    
Department  of Environmental  Conservation  (DEC). He  noted                                                                    
that  the  total departmental  request  for  RY15 was  $69.3                                                                    
million,  61   percent  of  which  was   funded  by  federal                                                                    
agencies. He  said that  5 percent  came from  other sources                                                                    
and 34 percent  was unrestricted general funds.  He spoke to                                                                    
the projects by reference number.                                                                                               
                                                                                                                                
RN 41376                                                                                                                      
Village  Safe Water  and Wastewater  Infrastructure Projects                                                                  
FY2015 Request: $51,500,000                                                                                                   
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This project provides financial  and technical assistance to                                                                    
rural communities  to plan, design, and  construct water and                                                                    
sewer system  improvements. 60% of the  funding will provide                                                                    
first-time  service to  communities while  40% will  be used                                                                    
for   expansion,  upgrade,   and  replacement   of  existing                                                                    
service.                                                                                                                        
                                                                                                                                
Mr. Cherian  said that the appropriation  would be allocated                                                                    
to the following projects:                                                                                                      
                                                                                                                                
RN 497848                                                                                                                     
First Time Service Projects                                                                                                   
FY2015 Request: $30,900,000                                                                                                   
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This project provides funding for  first time service grants                                                                    
to  communities  to  plan, design,  and  construct  drinking                                                                    
water and sanitation facilities.                                                                                                
                                                                                                                                
RN 49749                                                                                                                      
Expansion,  Upgrade,  and  Replacement of  Existing  Service                                                                  
FY2015 Request: $20,600,000                                                                                                   
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This project provides grant  funding for expansion, upgrade,                                                                    
and replacement of existing service  to communities to plan,                                                                    
design   and  construct   drinking   water  and   sanitation                                                                    
facilities.                                                                                                                     
                                                                                                                                
8:20:49 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy queried the  number of different approaches                                                                    
to clean water and sanitation in rural areas of the state.                                                                      
                                                                                                                                
BILL  GRIFFITH,  FACILITY  PROGRAMS  DIRECTOR,  DIVISION  OF                                                                    
WATER, DEPARTMENT  OF ENVIRONMENTAL  CONSERVATION, explained                                                                    
that  there were  standard  designs for  a  number of  major                                                                    
system components  like sewage  lift stations  and different                                                                    
treatment  processes,  but there  were  other  parts if  the                                                                    
systems  that  could  not be  standardized  because  of  the                                                                    
variation in  the environment  of different  communities. He                                                                    
said  that the  typical design  life of  the systems  was 30                                                                    
years and  some of the  existing systems had  surpassed that                                                                    
and  were in  need of  an upgrade.  He added  that sometimes                                                                    
systems did not last as long  as they were expected, did not                                                                    
work  as   well  and   intended,  and   faced  environmental                                                                    
challenges such as flooding.                                                                                                    
                                                                                                                                
8:22:17 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy asked  how many  communities were  without                                                                    
minimal water and sewer facilities.                                                                                             
                                                                                                                                
Mr.  Griffith replied  that there  were 34  communities that                                                                    
were  without running  water and  sewer; the  department had                                                                    
ongoing construction projects in  four of the communities to                                                                    
provide  running   water  and   sewer  to  homes,   but  the                                                                    
department did not  have current funding to  bring water and                                                                    
sewer to the remaining 30 communities.                                                                                          
                                                                                                                                
8:23:02 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy   asked  whether   the  population   of  a                                                                    
community was  a determining factor for  the department when                                                                    
choosing projects.                                                                                                              
                                                                                                                                
Mr. Griffith replied  that under the Village  Safe Water Act                                                                    
there was  a definition  of eligibility. The  minimum number                                                                    
of people  in a  community to  make that  community eligible                                                                    
was  25.  He  added  that  it was  not  always  feasible  or                                                                    
sustainable to construct a community  water and sewer system                                                                    
in a community larger than 25.                                                                                                  
                                                                                                                                
8:24:06 AM                                                                                                                    
                                                                                                                                
Senator  Olson wondered  if communities  with partial  water                                                                    
and  sewer facilities  were included  in the  34 communities                                                                    
cited.                                                                                                                          
Mr.  Griffith  responded  that   the  department  defined  a                                                                    
community  that did  not  have running  water  and sewer  as                                                                    
fewer than  55 percent  of the homes  had running  water and                                                                    
sewer. He  said that in  the 30  that he mentioned,  none of                                                                    
the homes had water and sewer.  He said that there were many                                                                    
communities where  more than 55  percent, but less  than 100                                                                    
percent, of the homes had running water and sewer.                                                                              
                                                                                                                                
8:25:02 AM                                                                                                                    
                                                                                                                                
Senator Olson asked for the  list of projects in priority of                                                                    
spending.                                                                                                                       
                                                                                                                                
Mr. Griffith  agreed to provide  a multi-year  priority list                                                                    
of the  projects. He added  that in addition to  state funds                                                                    
projects were  funded every year  through the  Indian Health                                                                    
Service some  of which were  administered by  the department                                                                    
and some by the Alaska Native Tribal Health Consortium.                                                                         
                                                                                                                                
8:25:39 AM                                                                                                                    
                                                                                                                                
Senator  Olson  asked  how  the  projects  played  into  the                                                                    
Village Safe Water Act projects.                                                                                                
                                                                                                                                
Mr. Griffith  responded that  the department  worked closely                                                                    
with the  Alaska Native Tribal Health  Consortium and Indian                                                                    
Health Service  to identify projects; all  three groups used                                                                    
the  same  data  base  to  identify  necessary  projects.  A                                                                    
scoring  system was  used for  state funded  projects and  a                                                                    
different  set-up  criteria  was   used  for  Indian  Health                                                                    
Service projects.                                                                                                               
                                                                                                                                
8:26:08 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy  requested  a  list  of  projected  annual                                                                    
maintenance costs for the projects statewide.                                                                                   
                                                                                                                                
Mr. Griffith agreed to provide the information.                                                                                 
                                                                                                                                
8:27:08 AM                                                                                                                    
                                                                                                                                
Mr. Cherian continued to discuss the budget requests.                                                                           
                                                                                                                                
RN 49697                                                                                                                      
Drinking  Water  Capitalization   Grant  -  Subsidy  Funding                                                                  
FY2015 Request: $2,526,300                                                                                                    
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
The  federal Drinking  Water  Capitalization Grant  requires                                                                    
states  to issue  30% of  the funding  as subsidies  (a loan                                                                    
forgiveness process). This program  functioned strictly as a                                                                    
loan program until  FY2011 when this provision  was added to                                                                    
the federal  budget. In order  to implement  this provision,                                                                    
an appropriation  is necessary  to properly record  the loan                                                                    
forgiveness  payment as  an expense  in the  Alaska Drinking                                                                    
Water  Fund.   Future  requests   will  remain  at   30%  of                                                                    
capitalization grants.                                                                                                          
                                                                                                                                
8:28:07 AM                                                                                                                    
                                                                                                                              
RN 49698                                                                                                                      
Clean Water Capitalization Grant - Subsidy Funding                                                                            
FY2015 Request: $563,200                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
The  federal  Clean   Water  Capitalization  Grant  requires                                                                    
states to issue subsidies  (a loan forgiveness process). The                                                                    
subsidy  amount  required  was identified  under  the  grant                                                                    
terms  the Environmental  Protection  Agency has  identified                                                                    
for  Alaska.  This program  functioned  strictly  as a  loan                                                                    
program until  FY2011 when this  provision was added  to the                                                                    
federal  budget. In  order to  implement this  provision, an                                                                    
appropriation  is  necessary  to properly  record  the  loan                                                                    
forgiveness payment as an expense  in the Alaska Clean Water                                                                    
Fund.  Future   funding  requests  will  remain   at  a  set                                                                    
percentage of each year's capitalization grant.                                                                                 
                                                                                                                                
RN 46714                                                                                                                      
Municipal Water, Sewage, and Solid Waste Facilities Grants                                                                    
(AS 46.03.030)                                                                                                                
FY2015 Request: $14,558,203                                                                                                   
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This  project   provides  funding   for  grants   to  larger                                                                    
communities to  plan, design,  and construct  drinking water                                                                    
and  sanitation  facilities  and  the  associated  operating                                                                    
costs  of the  Facility  Construction  component within  the                                                                    
Division of Water.                                                                                                              
                                                                                                                                
RN 54566                                                                                                                      
Deferred Maintenance, Renewal, Repair and Equipment                                                                           
FY2015 Request: $200,000                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                            
This project will address deferred  maintenance items in the                                                                    
state Environmental Health  Laboratory Building. Examples of                                                                    
immediate  deferred maintenance  needs  in  the lab  include                                                                    
water  main back-  flow backup,  autoclave, door  locks, and                                                                    
window blast films.                                                                                                             
SB  119  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
8:30:28 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:32:16 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 124                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Council                                                                      
     on Domestic Violence and Sexual Assault; and providing                                                                     
     for an effective date."                                                                                                    
                                                                                                                                
8:32:44 AM                                                                                                                    
                                                                                                                                
EDRA MORLEDGE,  STAFF, SENATOR  KEVIN MEYER,  explained that                                                                    
SB  124 would  extend the  sunset  date for  the Council  on                                                                    
Domestic Violence and Sexual Assault.                                                                                           
                                                                                                                                
8:34:30 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   AUDITOR,  DIVISION  OF   LEGISLATIVE  AUDIT,                                                                    
explained that  the division had  conducted an  audit report                                                                    
on  the council  and  had determined  that  the council  was                                                                    
serving the public interest and  should have the termination                                                                    
date extended. She added that  the report provided a summary                                                                    
of the council's organization and  function as well as their                                                                    
funding sources. The division  found that the council served                                                                    
as  a central  coordinator for  related services  throughout                                                                    
the  state.  She cited  Page  16  of  the audit  provided  a                                                                    
schedule  of  operating  expenditures and  funding  sources,                                                                    
which had  increased from FY09  through FY12.  The increases                                                                    
were  the  result  of  an  FY12  addition  of  a  prevention                                                                    
coordinator,  a  reduction  in  staff  vacancies,  increased                                                                    
funding through  the governor's "Choose  Respect" initiative                                                                    
and  additional  focus  on   domestic  violence  and  sexual                                                                    
assault  prevention.  She  explained  that  council  funding                                                                    
sources  were  comprised  of federal  funds,  state  general                                                                    
funds,  permanent  fund  dividends  (PFD)  for  incarcerated                                                                    
individuals, and inner agency  receipts from the Departments                                                                    
of Corrections,  Health and Social  Services and  the Office                                                                    
of the Governor. She relayed that  there was a change in the                                                                    
council's  funding   from  FY11  to  FY12   when  PFD's  for                                                                    
incarcerated  individuals  were  consolidated as  a  funding                                                                    
source  for the  Department  of  Corrections and  supplanted                                                                    
with general  funds. The audit identified  3 recommendations                                                                    
for operation improvements and could  be found on Page 11 of                                                                    
the audit. The first recommendation  was a continuation of a                                                                    
prior finding  from the 2005  sunset review of  the council;                                                                    
the  recommendation  was  to  improve  coordination  between                                                                    
itself   and  the   Department   of   Education  and   Early                                                                    
Development Education  (DEED) and  the Department  of Health                                                                    
and Social Services (DHSS). During  the current audit period                                                                    
the  division  found  that  the  council  had  significantly                                                                    
improved  coordination with  DEED, to  implement its  fourth                                                                    
"R" initiative,  which is a school-based  curricula designed                                                                    
to include  students, teachers,  parents, and  the community                                                                    
in  reducing  violence  and risky  behaviors.  However,  the                                                                    
council did  not coordinate with  DHSS to  develop standards                                                                    
and  procedures. Because  general  standards and  procedures                                                                    
for healthcare providers  and facilities delivering services                                                                    
to domestic  violence victims were developed  over ten years                                                                    
ago, and the  council and the department  did not coordinate                                                                    
regarding  continued delivery  and  ongoing availability  of                                                                    
the    standards   to    healthcare   providers,    improved                                                                    
coordination  had  been  recommended. She  stated  that  the                                                                    
other two recommendations  could be found on Page  13 of the                                                                    
audit  and  were administrative  in  nature.  First, it  was                                                                    
recommended  that the  council's executive  director improve                                                                    
procedures  to post  public notices;  secondly, the  council                                                                    
director should  improve grant award in  monitoring policies                                                                    
and procedures.                                                                                                                 
                                                                                                                                
8:38:31 AM                                                                                                                    
                                                                                                                                
Senator  Olson wondered  if there  had been  any significant                                                                    
programs  that   had  not  been  funded   due  to  budgetary                                                                    
constraints.                                                                                                                    
                                                                                                                                
Ms.  Curtis replied  that the  division  had not  identified                                                                    
through  the  audit  procedure any  unfunded  programs.  She                                                                    
noted that it had not been a focus of the review.                                                                               
                                                                                                                                
8:39:15 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough   noted  that   a  response   to  the                                                                    
recommendations from  the executive director of  the council                                                                    
could be found on Pages 31 through 33 of the audit.                                                                             
                                                                                                                                
LAUREE  MORTON,  EXECUTIVE  DIRECTOR,  COUNCIL  ON  DOMESTIC                                                                    
VIOLENCE AND  SEXUAL ASSAULT,  DEPARTMENT OF  PUBLIC SAFETY,                                                                    
spoke to the audit recommendations.  She shared that the two                                                                    
administrative  recommendations had  been  addressed by  the                                                                    
council. She relayed  that during the first  meeting of 2014                                                                    
the  council  would develop  a  schedule  of meetings  which                                                                    
would be posted on the  state public notice system. She said                                                                    
that  the council  had established  a routine  where program                                                                    
coordinators  met on  a quarterly  basis to  discuss program                                                                    
quality  control.  She relayed  that  the  council would  be                                                                    
meeting  with DHSS  in  summer 2014.  She  pointed out  that                                                                    
although  it  was  the  responsibility  of  the  council  to                                                                    
consult  with   the  department,  the  burden   was  on  the                                                                    
department to get the work done.                                                                                                
                                                                                                                                
8:41:45 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy wondered about stated program goals.                                                                           
                                                                                                                                
Ms. Morton  replied that program  goals could be  found both                                                                    
in the annual report and on their website.                                                                                      
                                                                                                                                
8:42:37 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy asked  whether the  council had  collected                                                                    
data  in  order  to  determine   if  the  goals  were  being                                                                    
achieved.                                                                                                                       
                                                                                                                                
Ms.  Morton responded  that  the within  the  past year  the                                                                    
council  had examined  how the  services had  helped victims                                                                    
and  not  only  the   amount  of  emergency  transportations                                                                    
provided. She  said three areas were  examined: interactions                                                                    
with  the  legal  system,   processing  the  experience  and                                                                    
healing,  and access  and utilization  of safety  resources.                                                                    
She shared that  2013 results had indicated  that 80 percent                                                                    
of  the  council's clients  believed  that  their lives  had                                                                    
improved  in those  three areas.  She stated  that data  was                                                                    
collected for the Batter's  Intervention programs by logging                                                                    
the  people who  were referred  to, attended,  and completed                                                                    
the program and  whether they had gone back  into the system                                                                    
within one year.  In  addition, a survey examining attitudes                                                                    
and longitudinal  changes over time was  administered at the                                                                    
beginning, middle,  and end  of the  program. She  said that                                                                    
prevention programs  had evaluations  that were  specific to                                                                    
each program;  in 2014 the  council would look into  ways to                                                                    
provide  overarching  goals   that  could  weave  prevention                                                                    
efforts together.                                                                                                               
                                                                                                                                
Vice-Chair Fairclough pointed out  to the committee that the                                                                    
council's functions were outlined on page 5 of the audit.                                                                       
                                                                                                                                
8:45:32 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  lamented that Alaska  had the  highest rate                                                                    
of domestic violence  in the nation. He asked  if there were                                                                    
areas  of the  state  where statistics  might be  improving;                                                                    
additionally,  he   queried  areas   that  were   seeing  an                                                                    
escalation in domestic violence.                                                                                                
                                                                                                                                
Ms. Morton responded  that the council looked  at regions of                                                                    
the   state  that   through   the   2010  statewide   Alaska                                                                    
Victimization  Survey, which  confirmed that  59 percent  of                                                                    
adult Alaska women had been  victims of domestic violence or                                                                    
sexual  violence, or  both. The  council intended  to repeat                                                                    
the  survey  in 2015.  Regional  baseline  surveys had  been                                                                    
conducted. She  believed that a  decrease in  violence would                                                                    
be noticed  through prevention efforts,  the changes  in the                                                                    
behavior of  young people and community  member interactions                                                                    
would  indicate  whether change  was  occurring  in the  way                                                                    
people treated each  other. She said that  9,300 victims had                                                                    
worked with  the council  in the past  year, which  had been                                                                    
the average  for the past  several years. She  believed that                                                                    
instances would  decrease as a result  of prevention efforts                                                                    
by the council.                                                                                                                 
                                                                                                                                
8:48:04 AM                                                                                                                    
                                                                                                                                
Senator Hoffman stressed that he  was the most interested in                                                                    
two area  of the state  that recently changed  their alcohol                                                                    
status:  Kotzebue and  Bethel.  He remarked  that there  was                                                                    
concern over the impact of  alcohol on domestic violence and                                                                    
sexual abuse.                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough  shared  that there  were  two  pilot                                                                    
programs for primary prevention.                                                                                                
                                                                                                                                
Vice-Chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
8:50:23 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough discussed  the fiscal  note from  the                                                                    
Department of  Public Safety. She noted  the total operating                                                                    
budget request  of $17,762 for  each year  from FY 15  to FY                                                                    
20.                                                                                                                             
                                                                                                                                
8:51:07 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  looked at Page  16, exhibit 3  of the                                                                    
audit  and   noted  that  the  travel   for  FY12  increased                                                                    
dramatically.   She   queried  additional   cost   increases                                                                    
reflected on the fiscal note.                                                                                                   
                                                                                                                                
Ms.  Morton  explained  that the  travel  increase  was  the                                                                    
reflection of  increased training activities. She  said that                                                                    
the  council provided  scholarships  for participation.  She                                                                    
believed that the increase in  commodity spending was due to                                                                    
an increase in publications  and materials for training. She                                                                    
said  that reimbursable  service  agreements  were used  for                                                                    
services  line   items  to  give  funding   to  other  state                                                                    
departments.                                                                                                                    
                                                                                                                                
8:54:11 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough noted  that  the  audit reflected  an                                                                    
increase in personnel services of  $150,000 between FY12 and                                                                    
FY15.                                                                                                                           
                                                                                                                                
Ms. Morton agreed to provide  information on the increase at                                                                    
a later date.                                                                                                                   
                                                                                                                                
8:54:38 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:55:06 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
8:55:17 AM                                                                                                                    
                                                                                                                                
Senator Bishop MOVED to REPORT  SB 124 out of committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  124 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and  with previously published  fiscal impact                                                                    
note: FN1 (DPS).                                                                                                                
                                                                                                                                
8:55:38 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:58:03 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 132                                                                                                           
                                                                                                                                
     "An Act relating to motor vehicle registration fees."                                                                      
                                                                                                                                
8:58:25 AM                                                                                                                    
                                                                                                                                
TALLY  TEAL, STAFF,  SENATOR  ANNA  FAIRCLOUGH, offered  the                                                                    
sponsor statement for SB 132(copy on file):                                                                                     
                                                                                                                                
     Currently, Alaska Statute  28.10.411 exempts a resident                                                                    
     from a  vehicle registration fee  if they are  over the                                                                    
     age of  65; however, the statute  requires the resident                                                                    
     to  be 65  "on January  1 of  the year  the vehicle  is                                                                    
     registered." This  requirement disqualifies individuals                                                                    
     who turn 65  later in the year from  receiving the same                                                                    
     benefit as their peers.                                                                                                    
                                                                                                                                
     Senate  Bill 132  will  allow any  resident  who is  65                                                                    
     years  old   at  the  time  of   registration  to  take                                                                    
     advantage of  this fee exemption. It  is important that                                                                    
     we  clarify the  intent to  provide a  lifetime vehicle                                                                    
     registration to Alaskans when they reach age 65.                                                                           
                                                                                                                                
8:59:43 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy  asked if there  were a minimal  numbers of                                                                    
vehicles that could be registered.                                                                                              
                                                                                                                                
Ms.  Teal  replied  that  there  was  a  maximum  number:  1                                                                    
vehicle.                                                                                                                        
                                                                                                                                
9:00:32 AM                                                                                                                    
                                                                                                                                
Senator Olson offered a conflict  of interest because he was                                                                    
over 65 years old.                                                                                                              
                                                                                                                                
9:00:48 AM                                                                                                                    
                                                                                                                                
Senator Olson  asked how  many people  would be  affected by                                                                    
the bill.                                                                                                                       
                                                                                                                                
Ms. Teal  responded that  the number  was unknown.  She said                                                                    
that there were just over  32,000 people who currently had a                                                                    
vehicle registered under the exemption.                                                                                         
                                                                                                                                
9:01:16 AM                                                                                                                    
Senator  Olson   wondered  whether  there  would   be  undue                                                                    
hardship caused by not passing the bill.                                                                                        
                                                                                                                                
Ms. Teal replied that she did not know.                                                                                         
                                                                                                                                
Senator  Dunleavy  queried  the   current  cost  of  vehicle                                                                    
registration.                                                                                                                   
                                                                                                                                
Ms. Teal replied that it was $100 per vehicle.                                                                                  
                                                                                                                                
9:01:51 AM                                                                                                                    
                                                                                                                                
AMY   ERICKSON,  DIRECTOR   DIVISION   OF  MOTOR   VEHICLES,                                                                    
DEPARTMENT    OF   ADMINISTRATION    (via   teleconference),                                                                    
explained that  32,425 seniors  currently took  advantage of                                                                    
the senior  exemption. She  clarified that  the registration                                                                    
fee  was $100,  every two  years,  and did  not include  the                                                                    
motor  vehicle registration  tax imposed  in 16  communities                                                                    
across the state.                                                                                                               
                                                                                                                                
Senator Dunleavy  understood that  the $100 fee  was charges                                                                    
per every qualifying senior.                                                                                                    
                                                                                                                                
Ms. Erickson  responded that every Alaskan  was charged $100                                                                    
for  vehicle registration,  including  seniors, unless  they                                                                    
took an exemption on one of their vehicles.                                                                                     
                                                                                                                                
9:03:03 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy wondered how  much the vehicle registration                                                                    
fee grossed in 2013.                                                                                                            
                                                                                                                                
Ms. Erickson said  she would get back to  the committee with                                                                    
the information.                                                                                                                
                                                                                                                                
Senator Olson  wondered about married couples  qualifying if                                                                    
a spouse was below the age of 65.                                                                                               
                                                                                                                                
Ms. Erickson  responded that every senior  would be entitled                                                                    
one vehicle exemption.                                                                                                          
                                                                                                                                
Vice-Chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
9:05:01 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  looked  at   the  zero  fiscal  note                                                                    
attached to the  bill. She felt that the  fiscal note should                                                                    
be considered "indeterminate."                                                                                                  
                                                                                                                                
9:05:37 AM                                                                                                                    
                                                                                                                                
Senator Bishop MOVED to REPORT  SB 132 out of committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CS SB  132 (STA) was  REPORTED out  of committee with  a "do                                                                    
pass"  recommendation  and  with previously  published  zero                                                                    
fiscal note: FN1 (ADM).                                                                                                         
                                                                                                                                
9:05:57 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:12:54 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 109                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the                                                                              
     Citizens' Advisory Commission on Federal Management                                                                        
     Areas in Alaska; and providing for an effective date."                                                                     
                                                                                                                                
9:13:00 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough returned the gavel to Co-Chair Meyer.                                                                     
                                                                                                                                
9:13:39 AM                                                                                                                    
                                                                                                                                
CHAD HUTCHISON, STAFF, SENATOR  JOHN COGHILL, explained that                                                                    
SB  109  would  extend  the sunset  date  of  the  Citizen's                                                                    
Advisory Commission of Federal  Areas (CACFA). The extension                                                                    
would be  from June 30, 2014  to June 30, 2021.  He provided                                                                    
some  background  on  the  commission.   He  said  that  the                                                                    
commission was  currently particularly important  because of                                                                    
the  federal executive  branch's behavior  as it  related to                                                                    
natural resource  development and land access  issues in the                                                                    
state. He  shared that the commission  held hearings related                                                                    
to  land   management  and  access,  and   natural  resource                                                                    
development. He  related that the commission  held 2 summits                                                                    
in 2013  that were  attended by several  Alaskan politicians                                                                    
concerned with  federal overreach. He expounded  on the many                                                                    
ways  the commission  fought against  federal overreach.  He                                                                    
shared that CACFA was creating  and electronic database that                                                                    
would  analyze  and  review  the  Memorandums  of  Agreement                                                                    
(MOA's)  and Memorandums  of  Understanding (MOU's)  between                                                                    
state departments  and federal  agencies with the  intend of                                                                    
establishing a  database that regular citizens  could use to                                                                    
understand  potential  legal  repercussions when  trying  to                                                                    
move forward with  development on federal land.  He spoke to                                                                    
the benefits  of the commission  and of the database  and of                                                                    
the development projects championed by CACFA.                                                                                   
                                                                                                                                
9:21:36 AM                                                                                                                    
                                                                                                                                
SENATOR JOHN  COGHILL, believed  that the  commission should                                                                    
be  extended. He  warned that  Alaska shared  a lot  of land                                                                    
with  the  federal  government  and  the  state  not  having                                                                    
legislation that  established legitimate citizen  input into                                                                    
management  and  access  issues   would  be  a  failure.  He                                                                    
asserted  that  the  federal   government  had  a  different                                                                    
perspective on  land usage  than the  people of  Alaska; the                                                                    
federal  government  wanted  to   go  from  conservation  to                                                                    
preservation and the  state wanted to go  from production to                                                                    
conservation.  He believed  that the  commission was  a good                                                                    
forum for  conversations between  the state and  the federal                                                                    
government.                                                                                                                     
                                                                                                                                
9:23:39 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  wondered if  the commission  had ever                                                                    
been audited.                                                                                                                   
                                                                                                                                
Mr. Hutchison deferred to Mr. Leaphart.                                                                                         
                                                                                                                                
Co-Chair Meyer stressed that many  boards and commissions in                                                                    
Alaska were subject  to audit, but that the  CACFA board was                                                                    
not subject to audit.                                                                                                           
                                                                                                                                
Senator  Olson  queried  the   significant  actions  of  the                                                                    
commission over the years.                                                                                                      
                                                                                                                                
9:25:03 AM                                                                                                                    
                                                                                                                                
Mr. Hutchison  remarked that the most  significant impact of                                                                    
the commission  related to  the allowance  of the  public to                                                                    
comment  on  land  management  plans.   He  added  that  the                                                                    
recommendations   provided  by   the  commission   had  been                                                                    
effective  in changing  policy as  it  pertained to  natural                                                                    
resource  development issues.  He  said  that without  CACFA                                                                    
there were  no assurances that the  federal government would                                                                    
honor its MOA's and MOU's.                                                                                                      
                                                                                                                                
9:26:55 AM                                                                                                                    
                                                                                                                                
Senator Olson asked if the list  of members on Page 3 of the                                                                    
annual report was up-to-date.                                                                                                   
                                                                                                                                
Mr. Hutchison responded in the affirmative.                                                                                     
                                                                                                                                
Senator  Olson wondered  where Chokosna  was located  within                                                                    
the state.                                                                                                                      
                                                                                                                                
Mr. Hutchison deferred the question to Mr. Leaphart.                                                                            
                                                                                                                                
9:28:02 AM                                                                                                                    
                                                                                                                                
STAN  LEAPHART,   EXECUTIVE  DIRECTOR,   CITIZENS'  ADVISORY                                                                    
COMMISSION ON FEDERAL AREAS  IN ALASKA (via teleconference),                                                                    
stated that  Chokosna was located within  Wrangell-St. Elias                                                                    
National Park.                                                                                                                  
                                                                                                                                
9:29:28 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  noted that at  the initial  establishment of                                                                    
the commission  the budget was  $246 million and was  now up                                                                    
to $285 million.                                                                                                                
                                                                                                                                
Mr. Leaphart explained  that he was a  full-time employee of                                                                    
the commission  and that  the other  position in  the budget                                                                    
was funded for  9.2 months of the year. He  assumed that the                                                                    
budget  increase had  been for  additional travel  costs and                                                                    
standard inflation.                                                                                                             
                                                                                                                                
Co-Chair  Meyer   queried  the   job  descriptions   of  the                                                                    
commission's staff.                                                                                                             
                                                                                                                                
Mr.  Hutchison responded  that the  2 staff  members created                                                                    
recommendations,  organized  summits, organized  committees,                                                                    
exchange policy  ideas with commissioners around  the state,                                                                    
and analyze the regulations  and compendiums coming from the                                                                    
federal government.                                                                                                             
                                                                                                                                
9:32:28 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  wondered if the commission  had a set                                                                    
of bylaws.                                                                                                                      
Mr. Leaphart responded yes. He  added that they were updated                                                                    
in 2007 and could be provided to the committee.                                                                                 
                                                                                                                                
9:33:06 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough asked  if the  bylaws were  available                                                                    
online.                                                                                                                         
                                                                                                                                
Mr. Leaphart  responded that he  did not know. He  agreed to                                                                    
update the website.  He agreed to send a copy  of the bylaws                                                                    
to Vice-chair Fairclough.                                                                                                       
                                                                                                                                
Senator Hoffman wondered if the  commission members had term                                                                    
limits,  and whether  there were  guidelines for  membership                                                                    
appointment.                                                                                                                    
                                                                                                                                
Mr. Leaphart  responded that the regional  appointments were                                                                    
staggered.  He   remarked  that  the   statutory  guidelines                                                                    
specified   that   the   federal    land   users   must   be                                                                    
geographically  represented. He  explained  that there  were                                                                    
various members from different areas across the state.                                                                          
                                                                                                                                
9:35:31 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer queried  the commission's  relationship with                                                                    
the Department  of Law (LAW)  and the Department  of Natural                                                                    
Resources (DNR).                                                                                                                
                                                                                                                                
Mr.  Leaphart replied  that  the  commission worked  closely                                                                    
with  the DNR  Alaska National  Interest Lands  Conservation                                                                    
Act (ANILCA) coordination program.                                                                                              
                                                                                                                                
9:37:55 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  asked  whether   the  commission  would  be                                                                    
amenable to an audit.                                                                                                           
                                                                                                                                
Mr. Hutchison  responded that he  could offer  no compelling                                                                    
reason that an audit should not be done.                                                                                        
                                                                                                                                
9:39:26 AM                                                                                                                    
                                                                                                                                
JEAN DAVIS, DIRECTOR,  SUPPORT SERVICES DIVISION, DEPARTMENT                                                                    
OF NATURAL  RESOURCES, stated that  the commission  could be                                                                    
audited.                                                                                                                        
                                                                                                                                
Co-Chair  Meyer queried  Ms.  Davis's  interaction with  the                                                                    
commission.                                                                                                                     
                                                                                                                                
Ms.  Davis  replied that  her  primary  role was  in  budget                                                                    
creation. She said  that she did not work  directly with the                                                                    
commission's program function.                                                                                                  
                                                                                                                                
Senator  Bishop asked  whether  any of  the  members on  the                                                                    
commission   represented    any   non-profits    or   native                                                                    
corporations.                                                                                                                   
                                                                                                                                
Mr.  Leaphart   responded  that   Mr.  Frank  Woods   was  a                                                                    
commercial  fisherman from  Dillingham  who  worked for  the                                                                    
Bristol Bay Native Association.                                                                                                 
                                                                                                                                
9:41:44 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman remarked  that over  95 percent  of private                                                                    
lands in  the state were  owned by the  native corporations.                                                                    
He  wondered how  much of  the focus  of the  commission was                                                                    
related  to oversight  of private  lands as  in relation  to                                                                    
overreach by the federal government.                                                                                            
                                                                                                                                
Mr. Leaphart replied that  the commission placed significant                                                                    
focus on the matter.                                                                                                            
                                                                                                                                
9:44:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
SB  109  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 104                                                                                                           
                                                                                                                                
     "An Act relating to appropriations from the dividend                                                                       
     fund; creating the criminal fund; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
9:45:00 AM                                                                                                                    
                                                                                                                                
SENATOR  FRED   DYSON,  offered  a  brief   history  of  the                                                                    
legislation that lead to SB 104.  He said that in 2012 there                                                                    
was court ordered restitution  of victims totaling $600,000;                                                                    
approximately  $70,000  was  given  to  the  Violent  Crimes                                                                    
Compensation Board for distribution  to victims. He asserted                                                                    
that there  were millions in court  ordered restitution that                                                                    
had  not been  paid.  He  said that  the  legislation was  a                                                                    
vehicle  that would  make priorities  clearer and  provide a                                                                    
method for the funds to  be accumulated. He opined that that                                                                    
the Department  of Corrections (DOC)  was using  $13 million                                                                    
per  year to  pay for  inmate  healthcare with  none of  the                                                                    
funds going  to victims.  He said that  with the  passage of                                                                    
the  Affordable Care  Act prisoners  would  be eligible  for                                                                    
Medicaid, which  would allow for  the department  to receive                                                                    
reimbursement. He  offered that  the governor  supported the                                                                    
bill.  He said  that  the bill  would  clarify ambiguity  in                                                                    
existing law.                                                                                                                   
                                                                                                                                
9:50:53 AM                                                                                                                    
                                                                                                                                
JOSHUA  BANKS,  STAFF,  SENATOR FRED  DYSON,  spoke  to  the                                                                    
fiscal impacts of the bill.  He remarked that there were six                                                                    
fiscal notes  currently attached to  the bill, and  only one                                                                    
had  fiscal impact.  He said  that the  DOC fiscal  note had                                                                    
been written  to be  larger than  anticipated, but  would be                                                                    
updated  as  new  information  was   brought  to  light.  He                                                                    
believed  that   even  with  the   fiscal  note,   based  on                                                                    
projections for  the 2014 dividend,  there would  be minimal                                                                    
negative fiscal impact to DOC.                                                                                                  
                                                                                                                                
9:52:01 AM                                                                                                                    
                                                                                                                                
Senator  Dyson   referred  to  a  report   from  Legislative                                                                    
Research  Services  (copy on  file).  He  lamented that  the                                                                    
mission that the legislature has  clearly articulated in law                                                                    
had been ignored.                                                                                                               
                                                                                                                                
Vice-Chair Fairclough requested a sectional analysis.                                                                           
                                                                                                                                
Mr. Banks explained the document,  "Section Analysis - CS SB                                                                    
104 (STA)" (copy on file):                                                                                                      
                                                                                                                                
     Section 1                                                                                                                
     AS 43.23.028(a)(5)                                                                                                       
     Prioritizes  by  order  of importance  the  legislative                                                                    
     purposes  for  making   certain  individuals  under  AS                                                                    
     43.23.005(d) ineligible  for a PFD to  be: compensation                                                                    
     for crime victims, child support arrearages, court-                                                                        
     ordered    rehabilitation     programs,    and    other                                                                    
     incarceration or probation costs.                                                                                          
     AS 43.23.028(a)(7)                                                                                                       
     References  a  new  section  of   law  to  be  used  to                                                                    
     determine  which agencies  can receive  money from  the                                                                    
     Criminal Fund.                                                                                                             
     AS 43.23.028(b)                                                                                                          
     Adds language to allow money  from the criminal fund to                                                                    
     go to  the purposes listed  in this section,  after the                                                                    
     appropriation to the criminal fund.                                                                                        
                                                                                                                              
     Section 2                                                                                                                
     AS 43.23.031                                                                                                             
     A  new  section   in  law  is  created   to  deal  with                                                                    
     appropriations from the criminal fund:                                                                                     
     1.  Section (a)  sets the  priority order  for how  the                                                                    
     money in  the criminal fund should  be appropriated and                                                                    
     the departments that should receive the money.                                                                             
     2. Sections (b)  states that by October 1  of each year                                                                    
     the Violent Crimes Compensation  Board will send to the                                                                    
     Office  of Management  and Budget  the total  amount of                                                                    
     compensable claims  from the  previous fiscal  year and                                                                    
     the operating costs of the VCCB.                                                                                           
     3. Section  (c) states that  by October 1 of  each year                                                                    
     the child  support services agency  will report  to the                                                                    
     Office  of Management  and Budget  the total  amount of                                                                    
     money   owed  towards   child  support   arrearages  of                                                                    
     incarcerated individuals.                                                                                                  
     4.   Section  (d)   states  that   the  Department   of                                                                    
     Corrections  will report  to the  Office of  Management                                                                    
     and  Budget  the total  amount  of  money owed  towards                                                                    
     court-ordered drug or alcohol treatment.                                                                                   
                                                                                                                                
     5. Section  (e) provides that the  Office of Management                                                                    
     and  Budget  will  use the  amounts  reported  by  each                                                                    
     department in sections (b)-(d) and  the total amount of                                                                    
     money in the criminal  fund under AS 43.23.028(a)(6) to                                                                    
     determine how much money should go to each department.                                                                     
     6.  Section (f)  states that  the Office  of Management                                                                    
     and Budget  will send  a report  to the  Legislature at                                                                    
     the  same  time  the  Governor  submits  the  Operating                                                                    
     Budget listing  the size of  the appropriation  to each                                                                    
     agency.                                                                                                                    
                                                                                                                                
     Section 3                                                                                                                
     AS 43.23.048                                                                                                             
     A new  section is  put into  law to  statutorily create                                                                    
     the Criminal  Fund as an individual  account within the                                                                    
     dividend fund consisting of money  that would have been                                                                    
     paid to  felons and certain misdemeanants  had they not                                                                    
     been  made  ineligible   under  AS  43.23.005(d).  This                                                                    
     section also emphasizes that the  money in the Criminal                                                                    
     Fund  may   be  appropriated  in  accordance   with  AS                                                                    
     43.23.031. Finally,  this section  states that  it does                                                                    
     not create a dedicated fund  in violation of Article IX                                                                    
     Section 7 of the Alaska State Constitution.                                                                                
                                                                                                                                
     Section 4                                                                                                                
     AS 43.23.055                                                                                                             
     1. Subsection  (6) is amended  to allow  the Department                                                                    
     of  Revenue   to  create   new  regulations   that  are                                                                    
     necessary   to    implement   the    Department's   new                                                                    
     responsibilities in AS 43.23.031.                                                                                          
     2. Subsection (11)  is added to give  the child support                                                                    
     services  agency  the  authority  to use  the  list  of                                                                    
     ineligible  individuals  to  determine  the  amount  of                                                                    
    child support arrearages owed by these individuals.                                                                         
                                                                                                                                
     Section 5                                                                                                                
     This section  provides that this bill  will take effect                                                                    
     on July 1, 2014.                                                                                                           
                                                                                                                                
9:57:57 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman asked  whether  there was  a timeframe  for                                                                    
when the perpetrator would have their dividend reinstated.                                                                      
                                                                                                                                
Mr. Banks responded that under  AS 43.23.005 an incarcerated                                                                    
felon, third-time  misdemeant, or a misdemeant  with a prior                                                                    
felony,  would be  ineligible to  receive  a dividend  until                                                                    
released from jail.                                                                                                             
                                                                                                                                
9:59:17 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough asked how money got into the fund.                                                                        
                                                                                                                                
Mr.  Banks  deferred  the question  to  the  Permanent  Fund                                                                    
Division. He  said that there  was a  list from DOC  and the                                                                    
Department  of   Public  Safety  (DPS)  that   DOR  used  to                                                                    
determine   which  inmates   should  have   their  dividends                                                                    
deposited into the criminal fund.                                                                                               
                                                                                                                                
10:00:38 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough asked how  the dividends could help to                                                                    
pay child support for the  children of those incarcerated if                                                                    
the  inmates failed  to apply  for the  permanent fund.  She                                                                    
wondered about  the children  of parents  who did  not apply                                                                    
for  the dividend,  could the  child collect  their dividend                                                                    
retroactively.                                                                                                                  
                                                                                                                                
Senator  Hoffman interjected  that  the child  would not  be                                                                    
able  to  apply for  the  retroactive  dividends until  they                                                                    
reached the age of 18.  He thought that those children would                                                                    
have  expenses  before the  age  of  18  and should  not  be                                                                    
punished  for  their parents  neglect.  He  opined that  the                                                                    
issue  had yet  to  be addressed,  even  for children  whose                                                                    
parents were not incarcerated.                                                                                                  
                                                                                                                                
10:02:11 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough stressed  that the  bill referred  to                                                                    
individuals who  were leaving  incarceration. She  wanted to                                                                    
understand   the  formula   of  how   the  money   would  be                                                                    
distributed.                                                                                                                    
                                                                                                                                
Mr. Banks deferred the question to LAW.                                                                                         
                                                                                                                                
Senator Hoffman remarked that the  department could apply on                                                                    
behalf  of the  child  for their  parent's  dividend if  the                                                                    
parent was delinquent in their child support payments.                                                                          
                                                                                                                                
Vice-Chair  Fairclough reiterated  he  desire to  understand                                                                    
how money would be dropped into the fund.                                                                                       
                                                                                                                                
10:04:12 AM                                                                                                                   
                                                                                                                                
Co-Chair   Meyer  queried   how   the   priority  list   for                                                                    
distribution of the funds was established.                                                                                      
                                                                                                                                
Mr. Banks  responded that distribution  was the  per-view of                                                                    
the legislature  and the  governor. He cited  Page 3  of the                                                                    
bill which listed the agencies  that were currently eligible                                                                    
to receive  money from the  criminal fund. He  believed that                                                                    
for budgetary  purposes the CDVSA  had opted to  not receive                                                                    
money from the criminal fund.                                                                                                   
                                                                                                                                
10:06:09 AM                                                                                                                   
                                                                                                                                
Senator  Dyson stressed  that under  the  concept of  victim                                                                    
restoration the  court would order that  everything that the                                                                    
victim needed for restoration would be covered by the fund.                                                                     
                                                                                                                                
CHUCK KOPP, STAFF, SENATOR FRED  DYSON, explained that there                                                                    
were  no new  entities in  the  bill. He  asserted that  the                                                                    
legislation was crafted to assure  that the victims were the                                                                    
first on the  priority list to receive money  from the fund.                                                                    
He stated that  the intent of the bill was  to establish the                                                                    
fund in statute  and to assure that money  from the criminal                                                                    
fund went first and foremost to victim restoration.                                                                             
                                                                                                                                
10:08:11 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough  explained  that CDVSA  had  received                                                                    
significant financial support from  the criminal fund in the                                                                    
past. In the  past few years the legislature  had been using                                                                    
general fund dollars for the  CDVSA and the felon monies had                                                                    
been distributed  elsewhere. She understood that  the monies                                                                    
had been going to programs inside  of the DOC rather than to                                                                    
victim restoration.                                                                                                             
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
10:09:35 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  asked for more  information regarding                                                                    
how the money was distributed into the fund.                                                                                    
                                                                                                                                
Mr. Banks responded that the process was conducted by DOR.                                                                      
                                                                                                                                
DAN   DEBARTOLO,   DIRECTOR,    PERMANENT   FUND   DIVISION,                                                                    
DEPARTMENT OF REVENUE,  could not speak to  how the dividend                                                                    
program   calculated  the   amount  appropriated   into  the                                                                    
criminal fund.  Annually, the division matched  a large file                                                                    
from  DOC  that   identified  the  incarcerated  individuals                                                                    
against the current dividend  application list. He explained                                                                    
that  if   incarceration  was  the   only  thing   that  was                                                                    
disqualifying the  individual for  the dividend  DOR applied                                                                    
that  percentage  to  the  number of  people  in  the  file,                                                                    
including  those who  did not  apply in  that year.  He said                                                                    
that  the division  then determined  how  many people  would                                                                    
have received  a dividend, had  they applied. The  number of                                                                    
people was  then multiplied  by the  amount of  the dividend                                                                    
for the  year, which determined  the pool of  funds reported                                                                    
to the Office  of Management and Budget (OMB).  He said that                                                                    
the amount had ranged over the  years from $9 million to $19                                                                    
million.                                                                                                                        
                                                                                                                                
10:12:15 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough requested further clarification.                                                                          
                                                                                                                                
Mr. DeBartolo  responded that the calculation  had been used                                                                    
for a while. He said that  the assumption was that not every                                                                    
inmate that  fell into one  of the criminal  fund categories                                                                    
was applying  for a dividend  because they had  become aware                                                                    
that  they  were ineligible.  The  process  allowed for  the                                                                    
division of account for those individuals.                                                                                      
                                                                                                                                
Vice-Chair  Fairclough  felt  that  an  individual  who  was                                                                    
incarcerated should  be required  to apply  for the  PFD, in                                                                    
order  to provide  for  their family  or  contribute to  the                                                                    
criminal fund.                                                                                                                  
                                                                                                                                
10:14:39 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer noted  that all  of  the money  in the  fund                                                                    
could be  used solely for priority  one listed on Page  4 of                                                                    
the bill.                                                                                                                       
                                                                                                                                
Mr. Banks responded  that there were two  charts included in                                                                    
the  bill  file.  The first,  "Historic  PFD  Criminal  Fund                                                                    
Appropriations"(copy   on   file),   illustrated   the   DOA                                                                    
appropriation that  went to the Violent  Crimes Compensation                                                                    
Board. He said that the board  had never needed more than $2                                                                    
million and  had received much  more. He did  not anticipate                                                                    
that the  Violent Crimes Compensation  Board would  take all                                                                    
of the  money from  the criminal  fund.   He spoke  to child                                                                    
support, which  was the next  priority on the list.  He said                                                                    
that the  drafters of  the bill understood  that all  of the                                                                    
funds could  be used for  child support, which had  not been                                                                    
the intent  of the legislation;  the CS had been  amended to                                                                    
limit one dividend  per child support order.  He referred to                                                                    
the  second chart,  "Potential Appropriation  Scenarios". He                                                                    
said  that  the bill  would  have  minimal impact  on  DOC's                                                                    
budget.                                                                                                                         
                                                                                                                                
10:17:25 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  looked at the child  support language                                                                    
in the bill.  She wondered whether there was a  way that the                                                                    
amount of  money going  to child  support services  could be                                                                    
increased without damaging the budget of DOC.                                                                                   
                                                                                                                                
Mr. Banks  responded that  the intent had  not been  to take                                                                    
funds away  from the department.  He believed that  the step                                                                    
that  had been  taken to  limit one  dividend per  order for                                                                    
child support was a good solution.                                                                                              
                                                                                                                                
10:19:35 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough wondered  if there  was an  order per                                                                    
child,  or per  family.  She specifically  wondered if  more                                                                    
than  one   order  could  be  submitted,   creating  further                                                                    
bureaucracy.                                                                                                                    
                                                                                                                                
Senator Dyson  responded that the  idea had been  to provide                                                                    
restitution  retroactively. He  said that  there was  a huge                                                                    
amount  of  restoration due  for  businesses  that had  been                                                                    
burglarized. It had been decided  that those businesses that                                                                    
received payment from insurance would  not be a priority. He                                                                    
stressed that he  wanted the funds to go  to individuals. He                                                                    
said that  the rearages  on child support  in the  state ran                                                                    
into  the 10's  of millions  of  dollars. He  said that  the                                                                    
Child Support  Enforcement Division had approached  him with                                                                    
the idea so  that the child support  unmet obligations would                                                                    
not overpower other priorities. He  stressed that it had not                                                                    
been  the intention  to protect  DOC  from the  loss of  $12                                                                    
million  per year.  He suspected  that most  people did  not                                                                    
realize  that those  funds were  in  the DOC  budget in  the                                                                    
first place.                                                                                                                    
                                                                                                                                
10:21:50 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer understood  one  dividend  would be  ordered                                                                    
regardless of the number of children in a household.                                                                            
                                                                                                                                
Mr. Banks replied in the affirmative.                                                                                           
                                                                                                                                
10:22:39 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough stressed  that  the  state was  using                                                                    
percentages. She noted that  the incarcerated individual may                                                                    
not have applied for all  of the children in their household                                                                    
and wondered  how those children  would be  compensated. She                                                                    
asserted that she did not  understand the method used by the                                                                    
Permanent Fund Division to calculate the percentage.                                                                            
                                                                                                                                
Mr.  Banks said  that it  was  difficult to  find a  perfect                                                                    
calculation to  provide families  with all of  the necessary                                                                    
support.                                                                                                                        
                                                                                                                                
10:24:45 AM                                                                                                                   
Vice-Chair  Fairclough   remarked  that  the   equation  was                                                                    
complicated. She  disagreed with  the use of  percentages in                                                                    
the  calculation  rather than  using  the  number of  actual                                                                    
applicants.  She  felt that  the  current  method created  a                                                                    
scenario where the funds were not making it to the victims.                                                                     
                                                                                                                                
Mr. Kopp  explained that  the bill  sponsor was  amenable to                                                                    
the   conversation   spurred  by   Vice-chair   Fairclough's                                                                    
questions.  He furthered  that sideboards  would  be put  in                                                                    
place to  assure that child  support rearages would  not eat                                                                    
up the entire criminal fund.  He agreed that the methodology                                                                    
could be revisited.                                                                                                             
                                                                                                                                
10:27:11 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  relayed that  what she needed  to see                                                                    
was how DOR was calculating  dividends and coming up with an                                                                    
$8 million  number to fund  something, because  it currently                                                                    
was  not  funding  victim  restoration.  She  requested  the                                                                    
formula that DOR used.                                                                                                          
                                                                                                                                
10:28:02 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer surmised  that the money would  be moved from                                                                    
the criminal fund to the  Violent Crimes Compensation Board.                                                                    
He noted that the fiscal note for the board was zero.                                                                           
                                                                                                                                
Mr. Banks  said that  the fiscal note  was zero  because the                                                                    
board did not anticipate any additional operating costs.                                                                        
                                                                                                                                
10:29:23 AM                                                                                                                   
                                                                                                                                
KACI   SCHROEDER,    SPECIAL   ASSISTANT,    DEPARTMENT   OF                                                                    
CORRECTIONS,  testified  that  the  only  concern  that  the                                                                    
department had was any reduction  in criminal fund receipts.                                                                    
She  said   that  any   reduction  would   be  met   with  a                                                                    
corresponding general fund request.                                                                                             
                                                                                                                                
10:30:21 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  said that  she had  further questions                                                                    
for DOC  regarding work opportunities for  inmates and their                                                                    
ability to make  money in order to  provide restitution. She                                                                    
requested  additional  information  on  sentencing  and  the                                                                    
ability  for   inmates  to  access  alcohol   treatment  and                                                                    
substance abuse programs during incarceration.                                                                                  
                                                                                                                                
Senator  Dyson  replied that  the  convicted  felon was  not                                                                    
excused  from  their  debt   and  obligation  because  their                                                                    
forfeited  dividend  had gone  into  the  criminal fund.  He                                                                    
added that he had considered  the issue of covering multiple                                                                    
children.                                                                                                                       
                                                                                                                                
10:33:26 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer  remarked  that the  fiscal  notes  did  not                                                                    
reflect  the  $8.5 million  being  directed  to the  Violent                                                                    
Crimes  Compensation Board.  He felt  that the  fiscal notes                                                                    
needed to be studied and revised.                                                                                               
                                                                                                                                
Mr.  Banks replied  that there  was no  anticipation of  the                                                                    
Violent  Crimes  Board  receiving  $8.5  million  under  the                                                                    
legislation.  He  understood  that  the note  spoke  to  the                                                                    
worst-case scenario of the department  losing the money that                                                                    
they would  receive from the  criminal fund they  would need                                                                    
$8.5 million to backfill for  their operating costs. He said                                                                    
that  looking  at  projections for  the  2014  dividend  the                                                                    
department did not anticipate that there would be any loss.                                                                     
                                                                                                                                
10:35:46 AM                                                                                                                   
                                                                                                                                
Mr. Kopp remarked  that the bill sponsor  was confident that                                                                    
the legislation would not negatively affect DOC.                                                                                
                                                                                                                                
10:36:50 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman asked  for  calculations  for FY16  through                                                                    
FY18 in order  to examine how the fund  would be distributed                                                                    
at higher numbers.                                                                                                              
                                                                                                                                
Mr. Banks  replied that there  was a rough estimate  of FY16                                                                    
on the second chart.                                                                                                            
                                                                                                                                
10:38:11 AM                                                                                                                   
                                                                                                                                
Senator Hoffman felt  that the number did  not calculate all                                                                    
of the lower  earning years of the dividend.  He wondered if                                                                    
there was  the anticipation  that the number  would increase                                                                    
in FY 17 and FY18.                                                                                                              
                                                                                                                                
Mr. Banks agreed to provide that information.                                                                                   
                                                                                                                                
SB  104  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
ADJOURNMENT                                                                                                                   
10:39:39 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:39 a.m.                                                                                         

Document Name Date/Time Subjects
SB 124 DPS Council on Domestic Violence and Sexual Assault Audit 2013.pdf SFIN 2/24/2014 8:00:00 AM
SB 124
SB 124 Sponsor Statement.pdf SFIN 2/24/2014 8:00:00 AM
SB 124
CS SB132 (STA).pdf SFIN 2/24/2014 8:00:00 AM
SB 132
CS SB132(STA) Sponsor Statement.pdf SFIN 2/24/2014 8:00:00 AM
SB 132
SB 132 Fiscal Note VerA DOA.pdf SFIN 2/24/2014 8:00:00 AM
SB 132
SB 132 Leg Research Report.pdf SFIN 2/24/2014 8:00:00 AM
SB 132
SB 132 Public Opinion.msg SFIN 2/24/2014 8:00:00 AM
SB 132
SB 132 Summary of Changes-CS(STA).pdf SFIN 2/24/2014 8:00:00 AM
SB 132
SB 109 Alaska_Lands_Update_11_2013.pdf SFIN 2/24/2014 8:00:00 AM
SB 109
SB 109 Alaska_Lands_Update_12_2013.pdf SFIN 2/24/2014 8:00:00 AM
SB 109
SB 109 CACFA 2013 Annual Report.pdf SFIN 2/24/2014 8:00:00 AM
SB 109
SB 109 Fiscal Note.pdf SFIN 2/24/2014 8:00:00 AM
SB 109
SB 109 Sectional Analysis.pdf SFIN 2/24/2014 8:00:00 AM
SB 109
SB 109 Sponsor Statement.pdf SFIN 2/24/2014 8:00:00 AM
SB 109
SB 104 - Section Analysis.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
SB 104 - Sponsor Statement.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
SB 104 - Support Document - HB 245 1988.pdf SFIN 2/24/2014 8:00:00 AM
HB 245
SB 104
SB 104 - Support Document LRS - Restitution.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
SB104-DOC-OC-01-21-14.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
SB104-DOR-CSSD-02-01-14.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
Summary of Changes to Senate Bill 104.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
SB 104 - Support Document - Letter VCCB.pdf SFIN 2/24/2014 8:00:00 AM
SB 104
SB 104 - Support Document - Criminal Fund Appropriations - 2.pdf SFIN 2/24/2014 8:00:00 AM
SB 104