Legislature(1993 - 1994)
05/08/1994 01:30 PM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 8, 1994
1:30 p.m.
TAPES
SFC-94, #91, Side 1 (100-end)
SFC-94, #91, Side 2 (end-550)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 1:30 p.m.
PRESENT
In addition to Co-chairs Pearce and Frank, Senators Kelly,
Kerttula, and Sharp were present. Senators Rieger and Jacko
arrived after the meeting was in progress.
ALSO ATTENDING: Representative Con Bunde, sponsor of HB
334; Dean J. Guaneli, Chief, Assistant Attorney General,
Legal Services Section, Criminal Division, Department of
Law; Diane Schenker, Special Assistant, Officer of the
Commissioner, Department of Corrections; Darrel Rexwinkel,
Commissioner, Department of Revenue; Gayle R. Oba, Vice
Chair, Alaska State Pension Investment Board; Senator Robin
Taylor, sponsor of SB 223; Diane Kaplan, Alaska Public Radio
Network; David Harding, aide to Representative MacLean,
sponsor of HB 212; Virginia Stonkus, fiscal analyst, and
Mike Greany, Director, Legislative Finance Division;
representative of the media, and aides to committee members
and other members of the legislature.
SUMMARY INFORMATION
SSSB 223: An Act relating to credits against
certain taxes for contributions to
certain public educational radio and
television networks and stations; and
providing for an effective date.
Senator Robin Taylor, sponsor of SB 223,
testified in support of the bill. Diane
Kaplan, Alaska Public Radio Network,
testified in support of SB 223 and
answered questions from the committee.
Senator Kerttula proposed conceptual
amendment 1. Amendment 1 was ADOPTED.
Co-chair Pearce clarified amendment 1 by
stating that the University would remain
the same and corporations would be
allowed only one $50,000 tax credit.
Senator Kelly proposed amendment 2 to
include the Iditarod Trail Race.
Amendment 2 FAILED. CSSSSB 223(FIN) was
REPORTED out of committee with a "do
pass," and zero fiscal notes for the
Department of Revenue and
Administration.
SCSCSHB 212(JUD): An Act relating to a factor in
aggravation of the presumptive term of a
criminal sentence, and prohibiting the
referral of a sentence based on
application of that factor to a
three-judge sentencing panel as an
extraordinary circumstance.
David Harding, aide to Representative
MacLean, sponsor of HB 212, testified in
support of HB 212. Diane Schenker,
Special Assistant, Officer of the
Commissioner, Department of Corrections,
spoke to the fiscal note, to the
increasing number of prisoners, and the
non-funding of crime bills over the past
years that effected the Department of
Corrections. SCSCSHB 212(JUD) was
REPORTED out of committee with
individual recommendations, and zero
fiscal notes for the Departments of
Corrections, Public Safety, Law,
Administration and the Alaska Court
System (the Department of Correction's
fiscal note showed a capital expense of
$600.0).
CSHB 334(FIN) am: An Act relating to criminal sentencing;
relating to the availability for good
time credit for offenders convicted of
certain first degree murders; relating
to definite 30- to 99-year terms of
imprisonment for offenders convicted of
an unclassified or class A felony that
is a homicide, assault, kidnapping,
sexual offense, or robbery and who have
at least two prior most serious felony
convictions; relating to parole, good
time credit, pardon, commutation of
sentence, modification or reduction of
sentence, reprieve, furlough, and
service of sentence at a correctional
restitution center for offenders with at
least three most serious felony
convictions; defining `most serious
felony' as an unclassified or class A
felony offense that is a homicide,
assault, kidnapping, sexual offense, or
robbery or an attempt or conspiracy to
commit, or criminal solicitation of, an
unclassified or class A felony that is a
homicide, assault, kidnapping, sexual
offense, or robbery; and amending Alaska
Rule of Criminal Procedure 35.
Representative Con Bunde, sponsor of HB
334, testified in support of the bill.
Dean J. Guaneli, Chief, Assistant
Attorney General, Legal Services
Section, Criminal Division, Department
of Law, also spoke in support of the
bill. Diane Schenker, Special
Assistant, Officer of the Commissioner,
Department of Corrections, spoke to the
zero fiscal note in that the Department
of Corrections would not be effected
until the 15th or 16th year. CSHB
334(FIN) am was REPORTED out of
committee with a "do pass,", a zero
fiscal note for the Department of
Corrections, and fiscal notes for the
Department of Administration (UPA)-
$181.1, PDA-$207.3, Alaska Court System
- $78.1, and for the Department of Law -
$112.6.
SCSCSHB 494(STA): An Act changing the Alaska State Pension
Investment Board to the Alaska Pension
Investment Authority and relating to the
authority; and providing for an
effective date.
Darrel Rexwinkel, Commissioner,
Department of Revenue, and Gayle R. Oba,
Vice Chair, Alaska State Pension
Investment Board, spoke to HB 494 and to
the fiscal notes. Discussion was held
regarding fiscal notes and amendment 2
which was ADOPTED in the previous Senate
Finance meeting. A motion to rescind
amendment 2 FAILED. Amendments 3 and 4
by Senator Rieger were ADOPTED. SCSCSHB
494(STA) was REPORTED out of committee
with individual recommendations, a zero
fiscal note for the Department of
Administration, and fiscal notes for the
Department of Revenue for $497.0 and
$398.5.
CS FOR HOUSE BILL NO. 334(FIN) am:
An Act relating to criminal sentencing; relating to the
availability for good time credit for offenders
convicted of certain first degree murders; relating to
definite 30- to 99-year terms of imprisonment for
offenders convicted of an unclassified or class A
felony that is a homicide, assault, kidnapping, sexual
offense, or robbery and who have at least two prior
most serious felony convictions; relating to parole,
good time credit, pardon, commutation of sentence,
modification or reduction of sentence, reprieve,
furlough, and service of sentence at a correctional
restitution center for offenders with at least three
most serious felony convictions; defining `most serious
felony' as an unclassified or class A felony offense
that is a homicide, assault, kidnapping, sexual
offense, or robbery or an attempt or conspiracy to
commit, or criminal solicitation of, an unclassified or
class A felony that is a homicide, assault, kidnapping,
sexual offense, or robbery; and amending Alaska Rule of
Criminal Procedure 35.
Co-chair Pearce invited Representative Con Bunde, sponsor of
HB 334, to speak to the bill.
REPRESENTATIVE BUNDE said that HB 334 had been reported on
in the media but wanted to point out that the bill was
different than the press presented it. The bill was crafted
narrowly to address only repeat offenders that commit
serious crimes. Accordingly to the Department of
Corrections, this bill would impact approximately 3 to 5
individuals a year. If an individual had committed two
serious felonies, the prosecutor then could choose to
prosecute under the provisions of HB 334.
Representative Bunde wanted the committee to know that, at
present, an individual convicted of a third serious felony
would spend between 12 to 15 years in jail. With this bill,
an individual would spend between 30 to 99, with a provision
that said after half a sentence was served, the Governor
could waive the rest of the sentence if the prisoner was
geriatric and no longer a threat to society. He noted that
the fiscal notes were a concern but the rationale was that
these individuals would be in the system anyway and this
bill could serve as a deterrent. He felt money would be
saved by not having to arrest and try these individuals for
the fourth, fifth, etc. time, and he asked the committee at
what cost did the state place personal loss to victims.
Representative Bunde asked Dean J. Guaneli, Chief, Assistant
Attorney General, Legal Services Section, Criminal Division,
Department of Law, to join him at the table.
DEAN GUANELI said the department supported HB 334. He
agreed that this version of the bill was much more narrow in
the number of crimes it covered, the way it considered prior
convictions, the way it gave discretion to the prosecutor,
and the type of sentence that could be imposed. He felt it
was a more narrow bill than any across the country.
In answer to Co-chair Frank, Mr. Guaneli described serious
crimes as homicides, rape, murder, manslaughter, armed
robbery, felony assault, shootings, and serious child abuse.
It did not include such crimes as theft, burglary, or drug
dealing.
Senator Kerttula pointed out this bill was not an attempt at
prevention but it just got the bad guys "off the street."
Mr. Guaneli said that a sentence could involve a
psychiatrist, or a lesser sentence could be imposed for
vehicular manslaughter since the prosecution would be given
such discretion in the bill.
In answer to Co-chair Frank regarding fiscal notes,
Representative Bunde said that public defenders felt more
cases would be heard because of HB 334. He felt that was
erroneous. Mr. Guaneli believed the potential of going to
jail for a longer period of time made the tendency for
individuals to fight harder, and the department estimated at
least work for one more attorney in their fiscal note.
Senator Sharp observed that if an individual was facing life
imprisonment that they may leave the state. Representative
Bunde said that in some instances individuals could be
counseled out of a life of crime because of the long
sentence they would face. Mr. Guaneli said that individuals
that commit such felonies were out of control and unable to
conform to what society wanted regardless of the penalty,
and those were the ones that were better off behind bars.
Senator Sharp said that some money must be saved by the
absence of the "revolving door."
Senator Kerttula asked if offenders may become more violent,
for example, in a sexual assault, if they knew their
sentence would be more severe or the same as murder. Mr.
Guaneli said it was hard to assess that sort of thing. A
third time rape offense brought a 25 year sentence now and
with this bill it would range from 30 to 99 years. He did
not feel that those offenders were thinking about sentences
when they were being violent. Senator Kerttula commented
that the state did not do much for prevention.
DIANE SCHENKER, Special Assistant, Officer of the
Commissioner, Department of Corrections, said that the
effect of HB 334 would not be felt for 10 to 15 years and
there was no way to reflect that in a fiscal note.
Senator Kelly MOVED for passage of CSHB 334(FIN) am from
committee with individual recommendations. No objection
being heard, CSHB 334(FIN) was REPORTED out of committee
with a "do pass," a zero fiscal note for the Department of
Corrections, and fiscal notes for the following departments:
Department of Administration (OPA) -$181.1; Department of
Administration (PDA) - $207.3; Alaska Court System - $78.1;
and the Department of Law - $112.6. Co-chairs Pearce and
Frank, Senator Kerttula, Kelly, Sharp and Jacko signed a "do
pass."
SENATE CS FOR CS FOR HOUSE BILL NO. 494(FIN):
An Act changing the Alaska State Pension Investment
Board to the Alaska Pension Investment Authority and
relating to the authority; and providing for an
effective date.
Co-chair Pearce announced that HB 494 was before the
committee. She reviewed the fact that amendment 1 had
FAILED and amendment 2 was ADOPTED in a prior meeting.
In answer to Senator Kerttula regarding amendment 2, Co-
chair Pearce pointed out that Senator Rieger's view was that
there was not a sufficient labor pool in Juneau of skilled
people who were not already either working for the Permanent
Fund or other funds from which to choose a new executive
director. Senator Kelly said the same argument could be
used for moving the Permanent Fund.
Co-chair Frank said he did not support amendment 2 and
opposed putting that constraint on the Pension Investment
Authority. He then asked why the fiscal note contained
general fund money and not all pension fund money.
DARREL REXWINKEL, Commissioner, Department of Revenue, spoke
on behalf of the board and as Commissioner of Revenue, and
explained the complicated fiscal notes regarding the
reorganization of the Treasury Division and creation of the
Pension Investment Authority. Co-chair Frank asked the
department to redo the existing fiscal notes so they could
be easily understood.
In returning to discussion over amendment 2, Senator Rieger
recalled a problem in 1989 or so when the Department of
Revenue was sorely lacking in staff. There was no one
unemployed in Juneau that could fill those vacancies. The
solution was that the department robbed two top employees of
the Permanent Fund. He did not want that scenario to be
repeated with this new organization. Senator Kerttula
opposed moving the Authority because of information he had
received regarding the inter-relationships of the trusts and
in-house, multiple units involving both organizations.
Senator Rieger reiterated his feelings that, with the
addition of eight more employees which included an executive
director, and drawing on the same talent pool, it could not
offer improved management to the Authority. He would also
like to restrict the area to Alaska in amendment 2.
GAYLE R. OBA, Vice Chair, Alaska State Pension Investment
Board, asked to speak on amendment 2.
Senator Kerttula MOVED to rescind the adoption of amendment
2.
Ms. Oba agreed that it did not make sense to move the
Pension Fund operation to Anchorage. It was her
understanding that it would be easier to move the Permanent
Fund to Anchorage. Because of the degree of coordination
between the Department of Revenue regarding SBS and deferred
compensation, it would not be an efficient move. She
suggested that during 1989, the situation was much
different. Since then, Wall Street alone had lost about
50,000 white collar positions. Now, if the State recruited
for new positions, she believed well qualified candidates
would be willing to move even to Juneau.
End SFC-93 #91, Side 1
Begin SFC-93 #91, Side 2
Senator Rieger agreed to consider a delayed effective date
on the bill but would not support the bill unless there was
a way to access better management for the Pension Fund.
Co-chair Pearce called for a show of hands and the motion to
rescind the adoption of amendment 2 FAILED (Senator Kerttula
was in support of the motion, Co-chair Pearce, Senators
Kelly, Sharp, Rieger and Jacko were opposed).
Senator Rieger MOVED amendment 3 that added the words
"Alaskan" before the words "metropolitan area" in amendment
2. Co-chair Pearce called for a show of hands and amendment
3 was ADOPTED on a vote of 5 to 1 (Co-chairs Pearce, and
Frank, Senators Kelly, Sharp, Rieger and Jacko were in
support. Senator Kerttula was opposed.).
Senator Rieger then MOVED amendment 4 making the effective
date for Section 3, July 1, 1995. No objection being heard,
amendment 4 was ADOPTED.
Senator Jacko MOVED for passage of SCSCSHB 494(FIN) from
committee with individual recommendations. Senator Kelly
OBJECTED. Co-chair Pearce called for a show of hands and
the motion to MOVE the bill from committee carried on a vote
of 4 to 3 (Co-chairs Pearce, and Frank, Senators Rieger and
Jacko were in support, Senators Kerttula, Kelly, and Sharp
were opposed). SCSCSHB 494(FIN) was REPORTED out of
committee with individual recommendations, a zero fiscal
note for the Department of Administration, and fiscal notes
for the Department of Revenue for $497.0 and $398.5. Co-
chairs Pearce and Frank signed "no recommendation."
Senators Rieger and Jacko signed "do pass." Senators
Kerttula, Kelly and Sharp signed "do not pass."
SENATE CS FOR CS FOR HOUSE BILL NO. 212(JUD):
An Act relating to a factor in aggravation of the
presumptive term of a criminal sentence, and
prohibiting the referral of a sentence based on
application of that factor to a three-judge sentencing
panel as an extraordinary circumstance.
Co-chair Pearce invited David Harding, aide to
Representative MacLean, sponsor of HB 212, to the table.
DAVID HARDING said the intent of the bill was to insure that
the serious sentences for the crime of sexual abuse against
a minor were levied when the offender was in a position of
authority over the minor. The bill accomplished this by
adding sexual abuse of a minor crime to a list of
aggravators considered at sentencing. Section 2 also added
this to a list of crimes that could not be referred to a
three-judge panel. The reasoning was that an offender that
was in an established trust relationship with a minor and
then breached that trust, deserved stronger penalties than a
stranger that sexually abused a child. It was much harder
for a child to defend him/herself physically and verbally
from someone in a position of authority than it was with
someone that the child did not know. It was the vulnerable
nature of the relationship that warranted more severe
punishment. He said that the Department of Law did support
HB 212 but Margo Knuth was not available to speak to the
bill. He went on to say that it would effect a small number
of cases. He gave child care workers or coaches as examples
of persons in authority.
Discussion followed by Co-chair Frank, Senators Kerttula and
Rieger regarding fiscal notes, and the continuing practice
of passing legislation without funding it.
Diane Schenker, Special Assistant, Officer of the
Commissioner, Department of Corrections, reported that in
the past the department had published zero fiscal notes on
all crime legislation because it was difficult to estimate
the impact of the legislation. According to a legislative
research 10-year study, prison population was on the
increase and continually had not been funded. At present,
there were about 200+ more prisoners in the system that
housing had not been funded for either in the capital or the
operating budget. The overcrowding was in severe crisis
this year and the department had decided to reflect true
fiscal impact on all fiscal notes. She had been informed
that those fiscal notes would not be funded but she knew no
other way to reflect on-going costs.
Mr. Harding pointed out that HB 212 would only add to the
end of the individual's sentence. Ms. Schenker agreed that
it would not effect FY95 but for the record, the department
wanted to request the capital expense in FY95.
Co-chair Frank agreed that the department was not
inappropriate in their presentation of the fiscal note. He
urged that the fiscal note be sent with the bill with the
understanding it would probably not be funded in conference
committee.
Co-chair Frank MOVED for passage of SCSCSHB 212(JUD) from
committee with individual recommendation. No objection
being heard, SCSCSHB 212(JUD) was REPORTED out of committee
with individual recommendations, zero fiscal notes for the
Departments of Administration, Law, Public Safety, and the
Alaska Court System, and a zero fiscal note for the
Department of Corrections with a capital expense of $600.0.
Co-chair Pearce, Senators Jacko, and Kelly signed "do pass."
Co-chair Frank, Senators Rieger, Kerttula and Sharp signed
"no recommendation."
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 223:
An Act relating to credits against certain taxes for
contributions to certain public educational radio and
television networks and stations; and providing for an
effective date.
Co-chair Pearce invited Senator Robin Taylor to the table to
speak to SB 223.
SENATOR ROBIN TAYLOR, sponsor of SB 223, said that in a
public survey, 65.4 percent of the people surveyed said they
would support a tax credit for corporations who contribute
to public radio. The same credit was used by the
University. He felt this was a way to wean public
broadcasting from the state budget and for them to raise
money on their own. He observed their budget had already
been reduced 35 percent.
Co-chair Pearce asked how he differentiated public
broadcasting from all the other non-profit programs that
received state grants money. She felt that this bill put
Public Radio on a different level than, for example,
domestic violence shelters.
DIANE KAPLAN, Alaska Public Radio Network, spoke to this
amendment. She anticipated 12 to 15 corporations in the
state would take advantage of this tax credit. She felt the
effect on the general fund would be quite minimal. The
Department of Revenue had provided a zero fiscal note for
two years. She listed the total effect of the existing
University tax credit to be about $600,000. The goal for
Public Radio for the first year was $100,000 for the
endowment trust fund. In answer to Co-chair Pearce, Ms.
Kaplan said that about half of the contributors targeted
were not contributing currently.
Senator Kerttula MOVED conceptual amendment 1 that removed
"(2) 100 percent of the next $100,000 of contributions" from
each section but not from the University. No objection
being heard, amendment 1 was ADOPTED.
Senator Kelly voiced his opinion that public television was
no longer of value to the state of Alaska. He felt public
radio still served the state, especially in the rural areas.
He called the fiscal notes following this bill "bogus"
pointing out that every dime that the public network
received came directly out of the state general fund.
Senator Kelly MOVED amendment 2 to include the Iditarod
Trail Race in SB 223. Senator Jacko OBJECTED. Co-chair
Pearce called for a show of hands and Amendment 2 FAILED on
a vote of 4 to 3 (Senators Kerttula, Rieger, and Kelly were
in support, Co-chairs Pearce and Frank, Senators Sharp and
Jacko were opposed).
After comments by Senator Sharp, Co-chair Pearce made it
clear that an organization could receive only one $50,000
tax credit.
Senator Jacko MOVED for passage of CSSSSB 223(FIN) from
committee with individual recommendations. CSSSSB 223(FIN)
was REPORTED out of committee with a "do pass," and zero
fiscal notes for the Departments of Administration and
Revenue. Co-chairs Pearce, Frank, Senators Kerttula, Kelly,
Rieger, Sharp and Jacko signed "do pass."
ADJOURNMENT
The meeting was recessed at approximately 2:45 p.m.
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