Legislature(2017 - 2018)SENATE FINANCE 532

04/25/2018 01:30 PM FINANCE

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                 SENATE FINANCE COMMITTEE                                                                                       
                      April 25, 2018                                                                                            
                         1:34 p.m.                                                                                              
1:34:45 PM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 1:34 p.m.                                                                                                   
MEMBERS PRESENT                                                                                                               
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Laura Cramer,  Staff, Senator  Anna MacKinnon;  Senator Mike                                                                    
Shower;  Representative Harriet  Drummond, Sponsor;  Patrick                                                                    
Fitzgerald,  Staff, Representative  Harriet Drummond;  Nancy                                                                    
Meade,  General   Counsel,  Alaska  Court   System;  Allison                                                                    
Hanzawa, Special  Assistant to the  Commissioner, Department                                                                    
of Public Safety.                                                                                                               
PRESENT VIA TELECONFERENCE                                                                                                    
Casey  Reynolds,  Communications  Director,  American  Civil                                                                    
Liberties Union  of Alaska, Anchorage; Dan  Lowden, Captain,                                                                    
Alaska State Troopers.                                                                                                          
SB 142    APPROP: CAPITAL BUDGET                                                                                                
          SB 142 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
CSHB 316(FIN)                                                                                                                   
          RESTRICT ACCESS MARIJUANA CRIME RECORDS                                                                               
          CSHB 316(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
SENATE BILL NO. 142                                                                                                           
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,       supplemental      appropriations,                                                                    
     reappropriations,  and   other  appropriations;  making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
1:35:51 PM                                                                                                                    
Vice-Chair Bishop  MOVED to  ADOPT the  committee substitute                                                                    
for SB 142, Work Draft 30-GS2565\O (Martin, 4/24/18).                                                                           
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
1:36:06 PM                                                                                                                    
AT EASE                                                                                                                         
1:37:47 PM                                                                                                                    
1:37:57 PM                                                                                                                    
LAURA CRAMER,  STAFF, SENATOR ANNA MACKINNON,  explained the                                                                    
committee substitute  (CS). She pointed out  the differences                                                                    
and changes  between the governor's proposed  budget and the                                                                    
current  version.  She  noted that  the  governor  had  also                                                                    
introduced a  nontraditional capital  request bill  that was                                                                    
contingent  on the  passage  of some  form  of revenue.  She                                                                    
stated that  the CS  included some  items in  the governor's                                                                    
contingency  bill.  She  thanked  the work  of  the  various                                                                    
departments and  the Legislative  Finance Division  (LFD) on                                                                    
the  development of  the budget.  She read  from a  prepared                                                                    
     Section 1, Pages 2-10: Agency capital appropriations                                                                       
     proposed by the Governor and amended by the Senate                                                                         
     Finance Committee                                                                                                          
          Page 2, line 19: Bulk  Fuel Upgrades   uses nearly                                                                    
          $5 million in AIDEA Dividends to replace UGF                                                                          
          Page 3, lines 18-20:  Added the Cruise ship tender                                                                    
          dock  reconstruction for  $1,105,000 using  Cruise                                                                    
          Vessel Passenger funds                                                                                                
          Page 3,  lines 31-32:  Added the  Ketchikan Cruise                                                                    
          ship berth  4 dock expansion for  $3,000,000 using                                                                    
          CVP funds                                                                                                             
          Page 4, lines  5-9: Funds the first  5 projects on                                                                    
          the school major maintenance list $24,203,372                                                                         
          Page  5, lines  14-15:  This has  to  do with  the                                                                    
          Pittman  Robertson  Funds   we  receive  from  the                                                                    
          Federal  Government      there  was  concern  with                                                                    
          overspending the  Fish and Game  fund, so  we have                                                                    
          replaced the  $2 million fish and  game funds with                                                                    
          $2  million in  Statutory Designated  receipts and                                                                    
          $2 million in Charter Revolving loan funds                                                                            
1:40:38 PM                                                                                                                    
AT EASE                                                                                                                         
1:40:58 PM                                                                                                                    
Ms. Cramer looked  at page 4 and noted that  the CS included                                                                    
$24.2  million  in  maintenance funding  for  the  top  five                                                                    
projects  on the  Major Maintenance  list. She  continued to                                                                    
address her prepared statement:                                                                                                 
     Page 5,  lines 19-20: Funded the  Governor's project to                                                                    
     modernize  and  replace  the existing  election  voting                                                                    
     system $4.8 million    $3.8 million is  funded using $3                                                                    
     million  in federal  and  $800,000 in  reappropriations                                                                    
     found in  Section 14 with  $1 million currently  in the                                                                    
     election fund                                                                                                              
     Page 5,  lines 21-27:  Included $20 million  to address                                                                    
     deferred  maintenance needs  within State  agencies and                                                                    
     included  intent  language  that   the  Office  of  the                                                                    
     Governor  prioritize  deferred  maintenance  needs  and                                                                    
     distribute the  funds to  address the  highest priority                                                                    
     Page  5,  line  28     page 6,  line  21:  Included  IT                                                                    
     projects for  State agencies  to modernize  old systems                                                                    
     and  upgrades in  order to  remain  in compliance  with                                                                    
     federal requirements                                                                                                       
     Page  6,  lines  25-26: Funded  the  Emergency  Medical                                                                    
     Services  Match for  Code  Blue at  the  FY18 level  of                                                                    
     Page  6,   lines  29-30:   Funded  the   Pioneer  Homes                                                                    
     Renovations  and   Repair  at   the  FY  18   level  of                                                                    
     Page 7, lines 15-20:  Included the projects approved by                                                                    
     the Exxon  Valdez Oil Spill Trustee  Council using EVOS                                                                    
     Page  7,  lines  30-31: Reduced  the  National  Mineral                                                                    
     Security Program  funding based on  anticipated reduced                                                                    
     funding from the Federal government    from $16 million                                                                    
     to $5 million                                                                                                              
     Page  8, lines  24-25:  Included funding  for AHFC  for                                                                    
     facility  deferred maintenance  $3  million in  Federal                                                                    
     Funds  and  $3 million  of  AHCC  funds    this  is  in                                                                    
     addition to  $3 million  in AHFC  funds and  $1 million                                                                    
     Federal funds included in the  operating budget for on-                                                                    
     going maintenance                                                                                                          
     Page 9,  lines 4-5:  Funded the Senior  Citizen Housing                                                                    
     and the FY18 level - $1 million                                                                                            
     Page  9, lines  6-7:  Funded  the Supplemental  housing                                                                    
    development program at the FY18 level - $3 million                                                                          
     Page 9, lines  13-17: In response to  the accident that                                                                    
     closed the  highway and  rerouted traffic  for multiple                                                                    
     days  Added  intent  language   to  the  Department  of                                                                    
     Transportation  directing them  to develop  a temporary                                                                    
     traffic  control plan,  as  well  as emergency  traffic                                                                    
     control guidelines for the  Glenn Highway from milepost                                                                    
     0 to 35.                                                                                                                   
     Page  9,  lines  26-28:  Funded  the  Municipal  Harbor                                                                    
     Facility grant  fund at  $5 million    using UGF  and a                                                                    
     reappropriations found in Section 22                                                                                       
     Page 10, line 6-10:                                                                                                        
     Funded Federal-Aid Highway match $51 million in UGF                                                                        
     and $14 million in reappropriations found in Section                                                                       
          The  Federal aid  aviation  and other  non-federal                                                                    
          aid highway  program state match  can be  found in                                                                    
          Section 21                                                                                                            
1:47:18 PM                                                                                                                    
Ms. Cramer continued with her testimony:                                                                                        
     Items removed from the Governor's requested budget in                                                                      
     Section 1:                                                                                                                 
               Port of Anchorage $40 million                                                                                    
               The  Correctional  Security  Upgrade  project                                                                    
          was  moved   from  the  numbers  section   to  the                                                                    
          language section  as we are  funding this  using a                                                                    
          reappropriations found in Section 18                                                                                  
               The  Fish   and  Game  vessel   and  aircraft                                                                    
          maintenance  repair and  upgrades  was moved  from                                                                    
          the numbers section to the  language section as we                                                                    
          are using a Reappropriation found in Section 20                                                                       
               Did  not  include   the  amendment  from  the                                                                    
          Governor  requesting   legal  and   financial  due                                                                    
          diligence relating  to AK  LNG for  DNR and  DOR -                                                                    
          $750.0 for both                                                                                                       
               Did  not  include   the  amendment  from  the                                                                    
          Governor  relating  to   the  Enhanced  9-1-1  for                                                                    
               Removed funding relating  to the Adak Airport                                                                    
          operations  as  it is  an  item  in the  operating                                                                    
          conference committee                                                                                                  
               Public  and  Community  Transportation  State                                                                    
          Match   $1,000,000      Fully   funded   Community                                                                    
          Assistance   in   the   Operating   Budget   which                                                                    
          communities    could    prioritize    the    local                                                                    
          transportation match program                                                                                          
               Removed  the   Governor's  project   for  the                                                                    
          Commuter Rail Concept for $4.5 million                                                                                
     Sec. 2 pages 11-13: The breakout of funding by agency                                                                      
     for the appropriations made in section 1                                                                                   
     Sec. 3 pages 14-15: The breakout of statewide funding                                                                      
     for the appropriations made in section 1                                                                                   
          UGF:      $139,492,862                                                                                                
          DGF:      $$62,951,500                                                                                                
          Other:    $73,355,000                                                                                                 
          FED:      $1,087,996,679                                                                                              
     Sec. 4 page 16: Supplemental capital projects and                                                                          
          Page  16, lines  10-11:   Included the  project to                                                                    
          move  barracks  from  JBER to  Mertarvik  to  help                                                                    
          relocate the residents of the  village of Newtok -                                                                    
          $960.0  leverages $3.8  million  in Federal  funds                                                                    
          through the Denali Commission                                                                                         
          Page   16,   lines   15-17:  This   increase   the                                                                    
          appropriation to  an EVOS project that  was funded                                                                    
          in the  FY18 capital budget  by $3 million  due to                                                                    
          an update appraisal of the land                                                                                       
          Page  16,   lines  21      26:  Funding   for  the                                                                    
          processing and storage  of untested sexual assault                                                                    
          kits statewide - $2.5 million    also added intent                                                                    
          language to guide the department in this process                                                                      
          Page 17,  line 5:  Included the Klutina  Lake road                                                                    
          survey  project   for  $350.0  requested   by  the                                                                    
          Page  17, lines  9-12:  Included  funding for  the                                                                    
          University of  Alaska to conduct a  study on Long-                                                                    
          acting  contraception's and  for  them to  provide                                                                    
          interim reports to the legislature - $500.0                                                                           
     Sec. 5 page 18: Funding by agency for the                                                                                  
     appropriations made in Sec. 4                                                                                              
     Sec.   6   page   19:   Statewide   funding   for   the                                                                    
     appropriations made in Sec. 4                                                                                              
          UGF:           $10,310,00                                                                                             
          Other - EVOS:  $3,000,000                                                                                             
          TOTAL:         $13,310,000                                                                                            
     Sec. 7  pages 20: Included some  supplemental operating                                                                    
     items  proposed  by  the Governor     there  are  still                                                                    
     several  outstanding supplemental  items that  have not                                                                    
     been agreed to by both bodies.                                                                                             
     Sec.   8   page  21:   Funding   by   agency  for   the                                                                    
     appropriations made in Sec. 7                                                                                              
     Sec.   9   page   22:   Statewide   funding   for   the                                                                    
     appropriations made in Sec. 7                                                                                              
          UGF:       $3,795,700                                                                                                 
          DGF:       $780,000                                                                                                   
          Fed Rcpts: $6,500,000                                                                                                 
          TOTAL:     $11,075,700                                                                                                
     Sections   10-19  are   primarily  Governor's   request                                                                    
     supplemental language sections as follows:                                                                                 
     Sec.  10   (c)  page  23,  lines   1-7:  Department  of                                                                    
     Administration      labor  contract   negotiations  and                                                                    
     arbitration  support   $792,000   extends   lapse  date                                                                    
     through FY19                                                                                                               
     Sec. 11  page 23,  lines 8-18: Department  of Education                                                                    
     and Early  Development (a) $400,000 from  the municipal                                                                    
     capital project  matching grant  fund to  Mt. Edgecombe                                                                    
     boarding school  for maintenance  and operation  of the                                                                    
     Aquatic  Center  (b)  the  1  percent  for  arts  funds                                                                    
     relating  to   the  aquatic  center  estimated   to  be                                                                    
     $200,000  is appropriated  to the  DEED for  equipment,                                                                    
     capital  improvements, or  maintenance  of the  aquatic                                                                    
     Sec. 12 page 23, lines  19-23: Department of Health and                                                                    
     Social Services  - $5 million  to the  Alaska temporary                                                                    
     assistance program  to satisfy the  Federal maintenance                                                                    
     of effort requirement for FY18 and FY19                                                                                    
     Sec.  13 page  23,  lines 24-27:  Department  of Law  -                                                                    
     $3,370,486  to the  civil  division  for judgments  and                                                                    
     settlements for FY18                                                                                                       
1:52:54 PM                                                                                                                    
Ms. Cramer continued with her testimony:                                                                                        
     Sec.  14 page  23, line  28    page 24,  line 11:  Fund                                                                    
     capitalization  of the  election  fund  for $3  million                                                                    
     from reappropriations listed in this section                                                                               
     Sec. 15  page 24, lines  12-20: Standard language    no                                                                    
     change Federal  and Other  Program Receipts    Standard                                                                    
     Federal  receipt  authority  language for  agencies  to                                                                    
     receive  Federal  and   other  receipt  authority  from                                                                    
     Legislative Budget and Audit                                                                                               
     Sec. 16  page 24, lines  21-25: Standard language    no                                                                    
     change  Insurance Claims    amounts  to be  received in                                                                    
     settlement of insurance claims  are appropriated to the                                                                    
     general fund  from the (1) State  insurance catastrophe                                                                    
     reserve  account or  (2)  appropriate  state agency  to                                                                    
     mitigate the loss                                                                                                          
     Sec. 17 page  24, line 26   page 25,  line 31: National                                                                    
     Petroleum  Reserve    Alaska Impact  Grant appropriated                                                                    
     to the Department of  Commerce, Community, and Economic                                                                    
     development for capital project  grants under the NPR-A                                                                    
     impact   grant  program.   This  year's   grants  total                                                                    
     Sec. 18  page 26, lines 1-5:  Department of Corrections                                                                    
       Reappropriation to the  Department of Corrections for                                                                    
     $1,605,479  for   security  upgrades   at  correctional                                                                    
     facilities     this  project was  a  request  from  the                                                                    
     Sec. 19  page 26, lines  6-22: No change from  what the                                                                    
     Governor   proposed  -   Department  of   Environmental                                                                    
     Conservation   Reappropriations  not to exceed $200,000                                                                    
     to the DEC for project  administration of water quality                                                                    
     enhancement,  water  supply,  sewage, and  solid  waste                                                                    
     facilities grants to municipalities                                                                                        
     Sec.  20  page  26,  line   23     page  27,  line  11:                                                                    
     Department   of  Fish   and  Game      Reappropriations                                                                    
     estimated  to   be  $309,025  to  Fish   and  Game  for                                                                    
     maintenance of, repair of, and  upgrades to vessels and                                                                    
     Sec.   21  page   27,   lines   12-24:  Department   of                                                                    
     Transportation    and   Public    Facilities        (a)                                                                    
     Reappropriation of  $12,111,142 to DOT for  federal aid                                                                    
     aviation  match  and   other  non-federal  aid  highway                                                                    
     program match                                                                                                              
          Page 27, line 25 -page 33, line 26: Various                                                                           
          reappropriations of to federal aid highway match                                                                      
          Page 33,  line 27    Page  34, line  14: Amendment                                                                    
          requested by  the Governor -  Reappropriations not                                                                    
          to   exceed    $10   million   to    DOT,   Alaska                                                                    
          international  airport  system for  rehabilitation                                                                    
          of runways and taxiways                                                                                               
     Sec.  22 page  34, lines  15-19: Fund  Capitalization                                                                      
     Reappropriation  $1.97 million  to the  harbor facility                                                                    
     grant  fund for  the  muni harbor  grant  program -  $3                                                                    
     million  in  numbers  section equals  $5  mil  for  the                                                                    
     program    Funds  first  project on  the  list    Sitka                                                                    
     Crescent Harbor                                                                                                            
     Sec.  23 page  34,  lines 20-22:  Fund  Transfer    The                                                                    
     large vessel  gaming and  gambling tax  account balance                                                                    
     estimated  to  be  $8,700,000 is  appropriated  to  the                                                                    
     Alaska marine highway system fund                                                                                          
     Sec. 24  page 34, lines  23-28: Fees collected  for NRA                                                                    
     license plates  estimated to be $6,000  is appropriated                                                                    
     to the  Department of Commerce  to be distributed  as a                                                                    
     grant  to the  Alaska SCTP  non-profit corporation  for                                                                    
     statewide youth shotgun sports programs.                                                                                   
     Sec.  25 page  34    page  35  line 3:  Reappropriation                                                                    
     estimated  to be  $98,782  to the  City  of Kodiak  for                                                                    
     design  and  engineering of  a  new  fire hall  due  to                                                                    
     structural  damage as  a result  of  the earthquake  in                                                                    
1:57:14 PM                                                                                                                    
Ms. Cramer continued with her testimony:                                                                                        
     Sec.  26  page  35,   lines  4-20:  Reappropriation  of                                                                    
     Legislative Appropriations    for renovation and repair                                                                    
     of,  technology improvements  to,  and other  necessary                                                                    
     projects   related   to    legislative   building   and                                                                    
     Sec.  27  page 35,  line  21-26:  Lapse    (a)  capital                                                                    
     projects,  Insurance   claims  to  state   agencies  to                                                                    
     mitigate   loss,    and   NPR-A   grants    lapse   (b)                                                                    
     capitalization of funds, insurance  claims to the state                                                                    
     insurance   catastrophe  reserve   account,  and   fund                                                                    
     transfer  do  not  lapse  (c)  capital  projects  lapse                                                                    
     unless a fiscal year is specified                                                                                          
     Sec. 28 page 35,  lines 27-28: Immediate Effective Date                                                                    
     for  supplemental capital  items  and Agency  operating                                                                    
     Sec. 29 page  35, lines 29-30: June  30, 2018 Effective                                                                    
     Date     for     Agency     reappropriations,     other                                                                    
     Sec. 30  page 35, line  31   page  36, line 1:  July 1,                                                                    
     2018 Effective  Date except as provided  in sections 28                                                                    
     and 29                                                                                                                     
1:58:41 PM                                                                                                                    
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further  OBJECTION, the  proposed  committee substitute  was                                                                    
1:59:01 PM                                                                                                                    
AT EASE                                                                                                                         
2:01:03 PM                                                                                                                    
Senator   Micciche   relayed   that   he   had   asked   for                                                                    
clarification  on  the  difference  between  the  amount  of                                                                    
Undesignated General  Funds (UGF) in the  governor's version                                                                    
and  the current  version of  the  bill. He  noted that  the                                                                    
difference was  $2.8487.9 million lower than  the governor's                                                                    
Vice-Chair Bishop  shared that  when the committee  began to                                                                    
contain spending  and find efficiencies  he had  looked into                                                                    
the  Department  of  Transportation and  Public  Facilities'                                                                    
(DOT) Highway Equipment Working  Capital Fund. He discovered                                                                    
that previously  the fund expended $25  million annually. He                                                                    
worked  with the  State Equipment  Fleet (SEF)  and reported                                                                    
that last  year's and the  current year's  appropriation was                                                                    
$15  million.   He  expounded  that  after   explaining  his                                                                    
methodology for the cuts that  included extending the length                                                                    
of time  equipment was  used, the  SEF were  currently using                                                                    
the same  equipment he had  identified four  year's earlier.                                                                    
He thanked the department and appreciated working with SEF.                                                                     
2:03:10 PM                                                                                                                    
Co-Chair  MacKinnon commented  that the  state continued  to                                                                    
face  significant budget  deficits. The  capital budget  was                                                                    
based  on  funds from  savings  and  state revenue  was  not                                                                    
sufficient  to support  some of  the appropriations  without                                                                    
taking  other measures.  She  acknowledged  that there  were                                                                    
additional  wants  and  needs   throughout  the  state.  She                                                                    
prioritized public  safety and deferred  maintenance through                                                                    
the reapporpriation  process. She looked forward  to hearing                                                                    
public testimony.                                                                                                               
Co-Chair MacKinnon announced that  public testimony would be                                                                    
heard the following day.                                                                                                        
SB  142  was  HEARD  and   HELD  in  committee  for  further                                                                    
2:05:10 PM                                                                                                                    
AT EASE                                                                                                                         
2:11:36 PM                                                                                                                    
CS FOR HOUSE BILL NO. 316(FIN) am                                                                                             
     "An Act relating to the release of certain records of                                                                      
    convictions; and providing for an effective date."                                                                          
2:12:10 PM                                                                                                                    
REPRESENTATIVE  HARRIET  DRUMMOND, SPONSOR,  introduced  the                                                                    
legislation.  She  explained that  HB  316  was intended  to                                                                    
clear  the  court and  permanent  records  of Alaskans  with                                                                    
simple  possession   convictions  of  marijuana   from  pre-                                                                    
legalization  in  November  2015.  The  lifelong  burden  of                                                                    
criminal  records  for  a  crime that  was  now  legal  kept                                                                    
Alaskans   from   achieving   their  full   potential.   The                                                                    
conviction created a barrier that  had the potential to keep                                                                    
people  from  attaining  a  higher   quality  of  life.  She                                                                    
characterized  the bill  as a  jobs bill.  The bill  did not                                                                    
grant a clean slate to  serious offenders. The bill intended                                                                    
to eliminate obstacles relating  to gaining employment, loan                                                                    
eligibility,  qualifying for  educational opportunities,  or                                                                    
advancing  in certifications  and  careers due  to a  simple                                                                    
possession  charge  for  a crime  that  was  legalized.  The                                                                    
recreational use  of marijuana was  legal for over  3 years,                                                                    
which  benefitted the  state  and  created prosperous  small                                                                    
businesses. She  voiced that  many citizens  benefitted from                                                                    
legalization and  the bill  offered a  chance to  extend the                                                                    
benefit to  more citizens by  removing barriers  to societal                                                                    
2:14:22 PM                                                                                                                    
PATRICK FITZGERALD, STAFF,  REPRESENTATIVE HARRIET DRUMMOND,                                                                    
discussed the Sectional Analysis (copy on file):                                                                                
     Sec. 1  AS 12.62.160                                                                                                       
     Stating that  an agency  may not  release records  of a                                                                    
     criminal  case  to  the public  if  the  defendant  was                                                                    
     charged  with  possession  of  a  controlled  substance                                                                    
     schedule VIA.                                                                                                              
          Schedule VIA definition: AS 11.71.190                                                                                 
          (a) a  substance shall be  placed in  schedule VIA                                                                    
          if  it is  found under  AS 11.71.120  to have  the                                                                    
          lowest degree of danger or  probable danger to the                                                                    
          person or public.                                                                                                     
          (b) marijuana is a schedule VIA controlled                                                                            
          Person had to have been 21 years or older at time                                                                     
          of offense.                                                                                                           
     Sec. 2  AS 22.35(040)                                                                                                      
     Is amended  by adding: AS 22.35.040  Confidential court                                                                    
     records. A court  record of a criminal case  is will be                                                                    
     made  confidential if  defendant was  convicted of  VIA                                                                    
     possession  through  state  or  local  ordinance  as  a                                                                    
     stand-alone charge.                                                                                                        
     Sec. 3  AS 40.25.120                                                                                                       
     Every person has a right  to inspect a public record in                                                                    
     the  state,  including   public  records  in  recorders                                                                    
     offices  except:   (18)  Records  of  a   schedule  VIA                                                                    
     possession for less than once  ounce if it was a stand-                                                                    
     alone charge. Defines  that a person must  have been 21                                                                    
     or older for the confidentiality to apply.                                                                                 
     Sec. 4 *                                                                                                                   
     Alters indirect  court rule amendment "Alaska  Rules of                                                                    
     Administration"  by limiting  public access  to certain                                                                    
     case records.                                                                                                              
     Sec. 5*  States that  because of  section four  of this                                                                    
     act  must  receive  2/3 majority  vote  in  each  house                                                                    
     because  of Article  IV  Sec. 15  of  the Alaska  State                                                                    
     Sec. 6*                                                                                                                    
    Provides effective date for 120 after bill signing.                                                                         
2:16:36 PM                                                                                                                    
Senator von  Imhof relayed that  the committee  had hearings                                                                    
on   various crime  bills. She asked  whether Representative                                                                    
Drummond was  aware of other  legislation that  would change                                                                    
past  criminal records  resulting from  SB 91  or SB  54, as                                                                    
crimes  were  recategorized.   She  asked  whether  criminal                                                                    
records were  being changed  for other  reclassified crimes.                                                                    
Representative  Drummond   was  not   aware  of   any  other                                                                    
legislation. She offered that  as marijuana was legalized in                                                                    
other states  other governments were expunging  records in a                                                                    
similar  manner.   She  exemplified  that  in   Vermont  the                                                                    
governor expunged the records of  192 individuals and in San                                                                    
Francisco  the   city  prosecutor  had   recently  dismissed                                                                    
approximately 3000  misdemeanor cases. She offered  that the                                                                    
ballot initiative supporters  considered including a feature                                                                    
like  the  provisions in  HB  316  but determined  that  the                                                                    
initiative was  less likely to  pass if  it was viewed  as a                                                                    
crime forgiveness initiative. Other  states had included the                                                                    
measure in  their original  legalization bill.  She believed                                                                    
that  the   provisions  should  apply   in  Alaska   as  the                                                                    
legalization  currently allowed  possession and  use of  the                                                                    
same   amount   of   marijuana   that   previously   created                                                                    
misdemeanants.  Currently, individuals  were profiting  from                                                                    
the  sale  of  marijuana   while  others  were  experiencing                                                                    
limitations and barriers due to their marijuana conviction.                                                                     
2:19:35 PM                                                                                                                    
Senator von  Imhof related that the  possession charge would                                                                    
have   to  be   a  non-violent,   standalone  offense   with                                                                    
possession of  a schedule VIA (Six-A)  controlled substance.                                                                    
She  understood  the   reasoning  behind  crime  forgiveness                                                                    
versus  economic  opportunity  and  why  other  states  were                                                                    
sealing records.  However, she wondered whether  a potential                                                                    
employer had the  right to know that an  individual had been                                                                    
convicted  of possession  and use  of a  substance that  was                                                                    
illegal  at  the  time.  She  asked  whether  Representative                                                                    
Drummond  thought that  the information  was  material in  a                                                                    
potential employment scenario.  Representative Drummond felt                                                                    
that  a   discussion  was  appropriate  in   the  employment                                                                    
scenario. She  indicated that  the bill  did not  remove the                                                                    
charges it  merely deleted the  conviction from  court view.                                                                    
The record  would still exist,  and an applicant  would need                                                                    
to  report  the  charges  or   conviction,  if  asked  by  a                                                                    
potential employer.                                                                                                             
Senator Micciche  cited page 1,  lines 5  and 6 of  the bill                                                                    
and  referred  to  the language,  "the  department  may  not                                                                    
release  records  of  a criminal  case  if  the  defendant?"                                                                    
Representative  Drummond answered  that the  section related                                                                    
to the  Department of  Public Safety  (DPS) and  was handled                                                                    
differently than Court View.                                                                                                    
Mr. Fitzgerald  added that  DPS used  a database  called the                                                                    
Alaska Public  Safety Information  Network (APSIN)  and used                                                                    
the  data   from  the  network  for   record  requests  from                                                                    
companies  and industries.  The information  was sold  for a                                                                    
fee. He detailed that individuals  would apply to DPS via an                                                                    
application  process to  prohibit the  sale of  their record                                                                    
for  the  standalone  conviction  of  simple  possession  of                                                                    
marijuana.  If other  charges or  convictions existed,  they                                                                    
would be  released; only the simple  possession charge would                                                                    
be withheld.                                                                                                                    
2:23:39 PM                                                                                                                    
Senator Stevens asked what constituted  the charge of simple                                                                    
possession  of  marijuana. Representative  Drummond  replied                                                                    
that  simple possession  applied  to one  ounce  or less  of                                                                    
marijuana. Senator  Stevens related  that times  had changed                                                                    
since he  was in the  army many  years ago when  the penalty                                                                    
for possession was much more severe.                                                                                            
Co-Chair   MacKinnon   asked   whether  the   bill   applied                                                                    
retroactively  in perpetuity.  Mr. Fitzgerald  answered that                                                                    
Court  View  records  would  be   removed  from  the  entire                                                                    
database. The  DPS records would be  removed via application                                                                    
and would depend on all  the applicants that applied to have                                                                    
their records held.                                                                                                             
2:25:39 PM                                                                                                                    
Co-Chair MacKinnon stated that the  answer was yes or no and                                                                    
wanted more  clarity.  Representative Drummond  thought that                                                                    
the  answer was  no. She  referenced a  Legislative Research                                                                    
Services   report  (copy   on   file)[Conviction  Data   for                                                                    
Marijuana Possession  in Alaska, 2007-2017]and  relayed that                                                                    
"the Court  System was able  to provide, for the  years 2007                                                                    
through 2017, a  count of cases in which  defendants had one                                                                    
or more  convictions only under  the relevant  statute." The                                                                    
count  totaled  approximately  700 individuals.  She  stated                                                                    
that convictions prior  to 2007 were not  contained in Court                                                                    
View. She deferred  to the Court System for  the answer. She                                                                    
added that  2012 was the first  year that all courts  in the                                                                    
state  were entering  case  information  on CourtView;  more                                                                    
cases  in other  courts around  the state  were likely.  Co-                                                                    
Chair  MacKinnon   asked  what  year  the   state  legalized                                                                    
marijuana.  Representative   Drummond  replied  legalization                                                                    
occurred in February 2015.  Co-Chair MacKinnon asked whether                                                                    
the   records  prior   to  the   date   would  be   removed.                                                                    
Representative  Drummond responded  in the  affirmative. She                                                                    
stated that there  were hundreds of cases prior  to 2015 but                                                                    
tapered down to two cases in 2017.                                                                                              
2:28:15 PM                                                                                                                    
Senator  Stevens  inquired  whether the  provision  included                                                                    
more  than one  arrest. Representative  Drummond replied  in                                                                    
the affirmative. She  restated that the bill  only removed a                                                                    
simple marijuana  conviction that  was not part  of multiple                                                                    
other charges.                                                                                                                  
2:29:55 PM                                                                                                                    
Co-Chair MacKinnon OPENED public testimony.                                                                                     
2:30:36 PM                                                                                                                    
CASEY  REYNOLDS,  COMMUNICATIONS  DIRECTOR,  AMERICAN  CIVIL                                                                    
LIBERTIES UNION  OF ALASKA, ANCHORAGE  (via teleconference),                                                                    
spoke in  support of the  bill. He stated that  the American                                                                    
Civil Liberties  Union (ACLU) had  two primary  concerns. He                                                                    
explained  that racial  disparity in  marijuana convictions,                                                                    
both  nationally   and  in  the  state   were  prevalent.  A                                                                    
significant  disparity existed  between  the enforcement  of                                                                    
marijuana  laws on  racial lines  even though  marijuana use                                                                    
was the same  among whites and minority  groups. He detailed                                                                    
that when  comparing census data  to arrest data,  7 percent                                                                    
of  African   Americans  were  arrested,   representing  3.3                                                                    
percent  of   the  state  population,  and   Alaska  Natives                                                                    
comprised  14.8 percent  of the  population and  represented                                                                    
23.5   percent   of   the  arrests.   Legalization   greatly                                                                    
diminished  some of  the disparity  in  the Alaska  criminal                                                                    
justice system.  He viewed HB  316 as  a way to  fully close                                                                    
the disparity gap.                                                                                                              
Mr. Reynolds  communicated that the second  ACLU concern was                                                                    
related to privacy  issues. He indicated that  the state had                                                                    
a  privacy  provision  and the  ACLU  believed  that  Alaska                                                                    
should not  be collecting or distributing  information about                                                                    
its  citizens  except  for   a  compelling  public  purpose.                                                                    
Initially,  the  activity  was criminal,  and  a  compelling                                                                    
public  purpose  existed,  but the  compelling  purpose  was                                                                    
negated when  the state legalized  and taxed  marijuana. The                                                                    
ACLU  did  not  feel  that  any  compelling  public  purpose                                                                    
existed for the  government to report on  its citizens about                                                                    
activity that was currently legal.                                                                                              
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
2:33:40 PM                                                                                                                    
Co-Chair  MacKinnon  recalled  a previous  bill  related  to                                                                    
state  compliance on  sexual assault  reporting  and how  it                                                                    
impacted   non-residents  and   CourtView.  She   asked  for                                                                    
comments from the Court System representative.                                                                                  
2:34:38 PM                                                                                                                    
NANCY MEADE, GENERAL COUNSEL,  ALASKA COURT SYSTEM, informed                                                                    
the committee  that she last  dealt with the issue  one year                                                                    
ago and attempted to remember  the details. She relayed that                                                                    
the  bill related  to domestic  violence protective  orders.                                                                    
The  Court   System  did  publish  petitions   for  domestic                                                                    
violence  protective  orders  unless they  were  immediately                                                                    
denied  by a  judge.  The bill  proposed halting  publishing                                                                    
domestic  violence  protective  orders because  the  federal                                                                    
Violence  Against  Women  Act (VAWA)  prohibited  publishing                                                                    
protective orders from another  state. The court interpreted                                                                    
VAWA literally and the Court  System did not publish out-of-                                                                    
state  protective orders  but  continued  to publish  Alaska                                                                    
protective   orders   on   CourtView.   Co-Chair   MacKinnon                                                                    
remembered  that   the  state  decision  was   not  entirely                                                                    
consistent  with  the  federal   law.  She  elaborated  that                                                                    
protective  orders  were  sometimes used  to  advantage  the                                                                    
party requesting  the order. She had  seen protective orders                                                                    
being used  against one  parent in  a child  custody battle.                                                                    
The  bill  passed  without  addressing  the  issue  and  she                                                                    
wondered   how  the   Court  System   currently  established                                                                    
"equity" when  issuing protective  orders since  evidence of                                                                    
the threat was  not considered. Ms. Meade  surmised that Co-                                                                    
Chair MacKinnon's concern was  that because every protective                                                                    
order  that  was not  immediately  denied  was published  on                                                                    
CourtView  there were  some individuals  named that  did not                                                                    
commit  an  act  of  domestic  violence.  The  Court  System                                                                    
determined  that  if  the   protective  order  petition  was                                                                    
granted at  the first  hearing, the  order was  published on                                                                    
CourtView  and  remained  listed.  She  mentioned  that  the                                                                    
legislature  could  enact  a statute  to  alter  the  Courts                                                                    
behavior in the matter.                                                                                                         
2:38:43 PM                                                                                                                    
Co-Chair  MacKinnon   asked  for  the  Courts   comments  or                                                                    
clarifications on  HB 316. Ms. Meade  indicated that Section                                                                    
1  dealt with  DPS and  she  deferred to  the department  to                                                                    
address that section  of the bill. She noted  that Section 2                                                                    
related to  CourtView. She clarified that  CourtView was not                                                                    
the  state's  official  criminal database.  She  interpreted                                                                    
that  Section  2 mandated  the  Court  to remove  all  prior                                                                    
convictions  for  possession  of  less  than  one  ounce  of                                                                    
marijuana  that  were  not  dismissed  as  part  of  a  plea                                                                    
agreement  in another  criminal  case. With  passage of  the                                                                    
bill, the Court  System would remove all  roughly 700 cases.                                                                    
The Court System had public  records going back further than                                                                    
2007  that   would  also  be  removed,   which  amounted  to                                                                    
approximately 200  more cases. She  noted that the  bill did                                                                    
not  have a  fiscal  impact on  the  Court System.  Co-Chair                                                                    
MacKinnon  referred to  Senator Steven's  question regarding                                                                    
multiple  convictions for  simple possession  and asked  for                                                                    
clarification.  Ms.  Meade  confirmed that  the  bill  would                                                                    
remove  multiple simple  possession charges  from CourtView.                                                                    
She relayed  that the  sponsor had  indicated that  the bill                                                                    
did not  remove the  simple possession charge  that included                                                                    
conviction  of other  charges. She  clarified that  if other                                                                    
criminal  charges  conjoined   with  the  simple  possession                                                                    
charge  were  acquitted  and   only  the  simple  possession                                                                    
conviction  remained,   the  case  would  be   removed  from                                                                    
2:43:10 PM                                                                                                                    
Senator  Stevens understood  that the  only conviction  that                                                                    
would be  removed in  a case with  multiple charges  was the                                                                    
simple  possession charge.  Ms. Meade  reiterated that  in a                                                                    
case  with   multiple  charges  that   ended  with   a  lone                                                                    
conviction  of  simple  possession of  marijuana,  the  case                                                                    
would be removed from CourtView.                                                                                                
Co-Chair MacKinnon  referred to the criminal  justice reform                                                                    
debate and  noted that one  of the reforms that  was changed                                                                    
was a  provision on small  petty theft or shop  lifting that                                                                    
included  multiple  infractions.  She  explained  that  some                                                                    
shoplifters were committing serial  small thefts on multiple                                                                    
businesses.  The scenario  had  not been  considered in  the                                                                    
reform  discussions   and  had   a  significant   impact  on                                                                    
businesses.   She  offered   that   some  legislators   were                                                                    
reluctant  to support  a  "one-time  and done"  backtracking                                                                    
over  time due  to the  petty theft  scenario. She  wondered                                                                    
whether  multiple  convictions  should  be  considered.  She                                                                    
stated  that  Alaska   had  previously  legalized  marijuana                                                                    
before  the   current  initiative  passed.   The  initiative                                                                    
related to  commercialization and taxation of  marijuana and                                                                    
not legalization.  Ms. Meade  answered that if the committee                                                                    
wanted to  change the provision to  exclude multiple charges                                                                    
the  Court System  would comply.  She felt  the issue  was a                                                                    
policy call.                                                                                                                    
2:45:39 PM                                                                                                                    
Senator Micciche  stated that possession of  marijuana of up                                                                    
to  four ounces  was not  legal outside  of a  person's home                                                                    
prior to the initiative. He  added that under the initiative                                                                    
public  consumption   was  still   illegal.  He   asked  for                                                                    
confirmation whether  public consumption was  still illegal.                                                                    
Ms. Meade answered in the  affirmative but added that it was                                                                    
reduced from a  crime to a violation;  the offender received                                                                    
a  citation.  Senator  Micciche  referred  to  his  previous                                                                    
question related  to page 1, lines  5 and 6 of  the bill and                                                                    
surmised that DPS  could no longer release the  records of a                                                                    
potential employee  with single possession  convictions. Ms.                                                                    
Meade clarified  that Section 2  only eliminated  the record                                                                    
from Court View and a  person could request records from the                                                                    
courthouse.  She  observed that  Section  1  related to  the                                                                    
actual criminal background check from  DPS and they would be                                                                    
prohibited  from releasing  the  records  if the  individual                                                                    
applied  for  removal,  which  was  considered  an  "opt-in"                                                                    
system.  The Court  System  would  automatically remove  the                                                                    
records from CourtView.  Senator Micciche questioned whether                                                                    
an  employer  could gain  access  to  the marijuana  records                                                                    
either through DPS or submitting  a request at a courthouse.                                                                    
Ms. Meade responded  that a person could gain  access to the                                                                    
records  at  a court  house  through  a special  kiosk.  She                                                                    
furthered that  the convictions would be  removed from APSIN                                                                    
but  only if  the individual  opted-in and  applied to  have                                                                    
their record removed.                                                                                                           
2:49:46 PM                                                                                                                    
Vice-Chair Bishop  hypothesized a scenario of  an individual                                                                    
who  was  convicted in  2008  of  simple possession  had  no                                                                    
further convictions  and wanted  to become a  state trooper.                                                                    
He asked  whether the  individual could  sign a  document to                                                                    
allow the  potential employer to  see the  conviction record                                                                    
in ASPIN.                                                                                                                       
2:51:24 PM                                                                                                                    
ALLISON  HANZAWA,  SPECIAL  ASSISTANT TO  THE  COMMISSIONER,                                                                    
DEPARTMENT  OF  PUBLIC  SAFETY,  answered  that  making  the                                                                    
record available  after an  individual opted-in  depended on                                                                    
the  circumstances.  She explained  that  the  bill was  not                                                                    
expunging  the  criminal  record   and  it  would  still  be                                                                    
available  for  criminal  justice  activities  and  any  law                                                                    
enforcement  employers  or  licensing  organizations  listed                                                                    
under  AS  12.62.400. The  bill  only  applied to  a  narrow                                                                    
section  of AS  12.62.160 for  the "any  person" or  general                                                                    
employment background check.                                                                                                    
Co-Chair  MacKinnon asked  whether a  federal inquiry  would                                                                    
have  access to  the record  of a  person who  opted-in. Ms.                                                                    
Hanzawa stated that  the record would remain  in the federal                                                                    
system  and the  bill only  applied to  the state.  Co-Chair                                                                    
MacKinnon declared that she did  not vote for the initiative                                                                    
and felt it contributed to  crime in the Anchorage area. She                                                                    
asked  how the  provision was  "the  right thing  to do  for                                                                    
public safety." Ms. Hanzawa replied  that DPS was not taking                                                                    
a position on  the public policy aspect  of the legislation.                                                                    
The department's concern  was over how to  implement the law                                                                    
and maintain the integrity of  criminal justice records. Co-                                                                    
Chair MacKinnon  asked if an  individual was  carrying under                                                                    
one ounce  of marijuana  was it likely  the person  was also                                                                    
driving  impaired  or using  the  substance  in public.  Ms.                                                                    
Hanzawa responded  that she did not  possess any statistical                                                                    
data  to  answer the  question.  She  felt that  if  another                                                                    
charge such as  driving under the influence  happened at the                                                                    
time of the  simple possession charge that the  bill was not                                                                    
2:55:12 PM                                                                                                                    
Senator Micciche remarked that  one simple possession charge                                                                    
that  happened  years  ago  should   not  be  a  barrier  to                                                                    
employment.  He used  receiving  speeding  tickets before  a                                                                    
speeding  limit   was  increased   as  example  of   a  fair                                                                    
comparison.   Ms. Hanzawa restated  that the  department did                                                                    
not take a position on the bill.                                                                                                
Vice-Chair   Bishop  stated   that  speeding   tickets  were                                                                    
automatically  removed within  10 years  if a  clean driving                                                                    
record was maintained since the  ticket. He asked whether he                                                                    
was correct. Ms. Hanzawa was unable to answer the question.                                                                     
Co-Chair MacKinnon  stated that  regardless of how  she felt                                                                    
about the initiative  it was the law and  expressed that she                                                                    
had  an  issue  with  retroactively erasing  records  for  a                                                                    
conviction that was  illegal at the time.  She believed that                                                                    
her   concern  was   consistent   with  Senator   Micciche's                                                                    
comparison with speeding tickets.                                                                                               
2:58:23 PM                                                                                                                    
Vice-Chair Bishop  discussed the  fiscal notes.  He reported                                                                    
that the zero Judiciary fiscal  note FN1 (JUD) was allocated                                                                    
to Trial  Courts and read the  following from page 2  of the                                                                    
     The  court  system  can remove  these  cases  from  the                                                                    
     public version  of CourtView,  and can  disallow public                                                                    
     access  to  the  paper files,  without  fiscal  impact.                                                                    
     Doing   so   will   require   some   staff   time   for                                                                    
     administrators to  revise the CourtView  parameters and                                                                    
     electronically  designate  the files  as  confidential,                                                                    
     but  we are  able to  absorb  that task  in the  normal                                                                    
     course of business. The  court system therefore submits                                                                    
     this zero fiscal note.                                                                                                     
Vice-Chair Bishop moved  to the fiscal impact  note from DPS                                                                    
DPS3 (DPS) and indicated that  $28 thousand was allocated to                                                                    
the  Criminal  Justice  Information Systems  Program  in  FY                                                                    
2019. He read the following analysis on page 2:                                                                                 
     There  are  1,939  records  in  APSIN  for  stand-alone                                                                  
     convictions  applicable  under  this bill.  Should  the                                                                    
     bill  pass, DPS  staff  would research  and redact  the                                                                    
     applicable   records  upon   request.   DPS  does   not                                                                    
     anticipate this to result in  a significant increase in                                                                    
     workload  for CJIS  Program staff.  However, to  ensure                                                                    
     that redacted  records are not  inadvertently released,                                                                    
     APSIN would  need an additional element  of programming                                                                    
     to block the identified  criminal history records. This                                                                    
     would require 200 hours of  programmer time at $140 per                                                                    
     hour, resulting in a one-time cost of $28,000.                                                                           
Co-Chair  MacKinnon  asked Ms.  Hanzawa  to  check with  the                                                                    
Department of Corrections to ensure  that the bill would not                                                                    
apply to anyone currently  incarcerated. She did not believe                                                                    
so  but wanted  confirmation.  Ms. Hanzawa  agreed with  the                                                                    
Co-Chair  MacKinnon invited  Mr. Fitzgerald  to address  any                                                                    
concerns  that  were  expressed by  the  committee  or  make                                                                    
closing  comments. Mr.  Fitzgerald  offered  to provide  any                                                                    
additional information  to members in response  to concerns.                                                                    
Co-Chair MacKinnon  reiterated her issue with  the bill. Mr.                                                                    
Fitzgerald offered to provide an answer in writing.                                                                             
Co-Chair  MacKinnon announced  that  amendments or  concerns                                                                    
were due the following day by 5pm.                                                                                              
3:03:55 PM                                                                                                                    
Co-Chair MacKinnon  asked whether  the bill  affected anyone                                                                    
currently  incarcerated. DAN  LOWDEN, CAPTAIN,  ALASKA STATE                                                                    
TROOPERS, DEPARTMENT OF  PUBLIC SAFETY (via teleconference),                                                                    
responded that he had to  review APSIN to provide an answer.                                                                    
Co-Chair  MacKinnon  restated  her  question  regarding  the                                                                    
department's position on the bill.  Mr. Lowden answered that                                                                    
DPS was  taking a  neutral position.  He alluded  to hearing                                                                    
much discussion pertaining to both sides of the issue.                                                                          
Senator Micciche voiced that the  conviction remained on the                                                                    
record  and was  not  expunged. He  described  the issue  as                                                                    
whether the charge  was "easily" visible to  the public. Co-                                                                    
Chair  MacKinnon agreed  with his  statement and  noted that                                                                    
the hearing  had established that  detail. She  offered that                                                                    
landlords  and  insurance companies  would  not  be able  to                                                                    
access  the   records.  She  pointed   out  that   the  bill                                                                    
considered barriers to employment  and housing and the issue                                                                    
"cut both ways."                                                                                                                
CSHB 316(FIN)  was HEARD and  HELD in committee  for further                                                                    
3:08:24 PM                                                                                                                    
The meeting was adjourned at 3:08 p.m.                                                                                          

Document Name Date/Time Subjects
HB 316 Supporting Doc ACLU.pdf SFIN 4/25/2018 1:30:00 PM
HB 316
HB316 Sponsor Statement.pdf SFIN 4/25/2018 1:30:00 PM
HB 316
HB 316 Supporting Doc Legislative Research- Convicstions for Marijuana Possession 07-17.pdf SFIN 4/25/2018 1:30:00 PM
HB 316
SB 142 Capital Work Draft version O.pdf SFIN 4/25/2018 1:30:00 PM
SB 142
HB 316 - Response to Sen. MacKinnon question_.pdf SFIN 4/25/2018 1:30:00 PM
HB 316