Legislature(1993 - 1994)
03/23/1994 02:41 PM Senate JUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE JUDICIARY COMMITTEE
March 23, 1994
2:41 p.m.
MEMBERS PRESENT
Senator Robin Taylor, Chairman
Senator George Jacko
Senator Dave Donley
Senator Suzanne Little
MEMBERS ABSENT
Senator Rick Halford, Vice-Chairman
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 454(FIN)
"An Act making a supplemental appropriation to the Department of
Law to pay costs of certain continuing legal proceedings; and
providing for an effective date."
SENATE JOINT RESOLUTION NO. 36
Proposing amendments to the Constitution of the State of Alaska
requiring that candidates for governor and candidates for
lieutenant governor receive more than 50 percent of the votes cast
to be elected and changing the term of office of the governor and
the lieutenant governor.
CS FOR HOUSE BILL NO. 374(FIN)
"An Act relating to reimbursable service agreements and other
agreements between state agencies for the purchase of services."
SENATE BILL NO. 292
"An Act relating to transfers of prisoners under the Interstate
Corrections Compact."
SENATE BILL NO. 295
"An Act relating to financial assistance for certain owners or
operators of underground petroleum storage tank systems; and
providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 454 - See Judiciary minutes dated 3/21/94.
SJR 36 - See State Affairs minutes dated 2/17/94 & 3/2/94.
HB 374 - See Judiciary minutes dated 3/21/94.
SB 292 - No previous action to record.
SB 295 - See Resources minutes dated 3/9/94.
WITNESS REGISTER
Jim Baldwin, Assistant Attorney General
Department of Law
P.O. Box 110300
Juneau, AK 99811-0300
POSITION STATEMENT: Offered information on HB 454
Senator Tim Kelly
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of SJR 36
Joe Swanson, Director
Division of Elections
Office of the Lieutenant Governor
P.O. Box 110017
Juneau, AK 99811-0017
POSITION STATEMENT: Neutral on SJR 36
Randy Welker, Legislative Auditor
Legislative Audit Division
P.O. Box 113300
Juneau, AK 99811-3300
POSITION STATEMENT: Testified in support of SB HB 374
David Skidmore, Staff to Senator Steve Frank
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented overview on SB 292
Michael Stark, Counsel to Department of Corrections
P.O. Box 112000
Juneau, AK 99811-2000
POSITION STATEMENT: Offered information on SB 292
Diane Schenker, Special Assistant
Department of Corrections
P.O. Box 112000
Juneau, AK 99811-2000
POSITION STATEMENT: Answered questions on SB 292
John Barnett, Executive Director
Board of Storage Tank Assistance
410 Willoughby Ave.
Juneau, AK 99801
POSITION STATEMENT: Supports SB 295
ACTION NARRATIVE
TAPE 94-23, SIDE A
Number 001
CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to
order at 2:41 p.m. He brought CSHB 454(FIN) (APPROP: COST OF
OIL/GAS LITIGATION) before the committee as the first order of
business.
JIM BALDWIN, Assistant Attorney General, Department of Law,
explained the legislation is the department's FY 94 supplemental
appropriation bill for oil and gas litigation. He noted this has
been a recurring event because of the way the Legislature has
funded the department's oil and gas special litigation budget
request unit. It has been funded on a half-year basis so that the
Legislature can, in the middle of the year, review the progress of
their litigation and determine whether the course of their
expenditures are keeping pace with the estimates that have been
presented during the budget process.
Mr. Baldwin directed attention to his letter to the committee dated
March 18, which outlines cases under litigation. He then updated
the committee on the status of royalty cases, oil and gas tax
cases, and TAPS cases, and responded to questions from the
committee members on those cases.
Number 225
SENATOR TAYLOR asked if his interpretation was correct that this is
merely a supplemental of approximately $18.5 million, which is just
half a year's cost, and the actual cost is $36 million. MR.
BALDWIN responded that $36 million is the amount they have asked
for FY 95. For FY 94 they have asked for approximately $25
million. He added the department was funded at the rate of 10.3
upfront in the budget, and that money has carried them through
about December. Because of the pace of the litigation, which they
are preparing for trial, it has forced the department to request
the $18.5 million supplemental. Because the litigation will be
going into its trial phase next year, they are asking for a
substantial increase in FY 95.
Number 270
SENATOR DONLEY asked if the expenses for the Department of Law is
for state employees or for contracts let out by the department.
MR. BALDWIN responded that the most of the money in the
supplemental is for contracts to outside attorneys. Within that
amount are the costs of expert witnesses and other expenses of the
litigation. SENATOR DONLEY then asked what the department has done
to comply with the legislative intent that there be increased
oversight over the contracts. MR. BALDWIN answered that they added
a position in the department last year to provide expertise towards
contract administration and management.
Number 327
There being no further testimony on HB 454, SENATOR TAYLOR asked
for the pleasure of the committee.
SENATOR JACKO moved that CSHB 454(FIN) be passed out of committee
with individual recommendations. Hearing no objection, it was so
ordered.
Number 336
SENATOR TAYLOR introduced SJR 36 (GOV & LT GOV MUST RECEIVE 40 %
VOTE) as the next order of business.
SENATOR TIM KELLY, prime sponsor of SJR 36, stated a majority of
Alaskans have not elected a governor since 1970, and it doesn't
make sense for the state's chief executive not to have the support
of at least 40 percent of those voting in an election. He noted he
originally introduced the bill at 50 percent, but it became clear
during its first hearing in the Senate State Affairs Committee that
50 percent would not have a chance of getting a two-thirds vote on
both sides, so it was cut back to 40 percent in the State Affairs
CS.
Senator Kelly said the days of the two-party system are gone with
ballot access being what it is, mostly by court decision. He
believes there has to be some sense of responsibility and
commitment by as close to a majority of the voters that is
practicable to be able to govern.
Senator Kelly noted that if the legislation passes, it would not go
into effect this year; it would be the next gubernatorial election.
It would also require enabling legislation changing some of the
other statues, but there would be that four-year period to address
those changes.
Senator Kelly pointed out that the Municipality of Anchorage has a
similar provision in the election of their mayor and it has worked
well.
Number 400
JOE SWANSON, Director of Elections, stated the division does not
have a position on SJR 36. He added, however, the mechanics of it,
the 28 days, would be almost impossible because they do not certify
an election, normally, until 26 days after the election. None of
the mechanical problems are insurmountable; they can be done, but
he does not think they could make the January 1 deadline for the
certification process. He said 35 days would be more realistic and
another 20 days after that to certify the election. SENATOR KELLY
stated he would not object to changing the 28 days to 35 days.
Number 480
SENATOR TAYLOR moved that on page 1, line 14, change "28 days" to
"35 days." Hearing no objection, the amendment was adopted.
Number 485
SENATOR LITTLE moved that SJR 36, as amended, be passed out of
committee with individual recommendations. Hearing no objection,
it was so ordered.
Number 495
SENATOR TAYLOR brought CSHB 374(FIN) (REIMBURSABLE SERVICE
AGREEMENTS) before the committee as the next order of business.
RANDY WELKER, Legislative Auditor, Division of Legislative Audit,
explained the legislation is the result of an audit conducted last
year in the Department of Health and Social Services. It was found
that the commissioner's office used reimbursable service agreements
(RSA's) to inappropriately increase the budget for the
commissioner's office. The legislation will provide some
clarification on what the intended use of an RSA should be by
putting the word "reimbursable" back in reimbursable service
agreements and require the use of them to be based on an actual
cost of a service provided. He added that there are a lot of
legitimate uses for RSA's in acquiring services.
Number 535
There being no further testimony on HB 374, SENATOR TAYLOR asked
for the pleasure of the committee.
SENATOR LITTLE moved that CSHB 374(FIN) be passed out of committee
with individual recommendations. Hearing no objection, it was so
ordered.
Number 540
SENATOR TAYLOR introduced SB 292 (INTERSTATE TRANSFERS OF INMATES) )
as the next order of business.
DAVID SKIDMORE, staff to prime sponsor of the legislation Senator
Steve Frank, related that in the past the Department of Corrections
has considered transferring inmates out of state. Currently, the
department faces severe overcrowding pressures.
Alaska statutes provide two different standards that must be met
before inmates may be transferred out of state. The first standard
in AS 33.30.061(b) provides that the department "may transfer
inmates out of state if rehabilitation or treatment of the inmate
will not be impaired. The second standard in AS 33.36.010
provides that the department may not transfer inmates out of state
if rehabilitation or treatment of the inmate will be better
facilitated in Alaska. SB 292 would resolve the two conflicting
standards by deleting the second standard and establishing the
first standard as the sole test which would have to be met.
Mr. Skidmore noted there is no advocacy or funding association with
SB 292; it is simply clarifying statute to give the commissioner of
corrections this tool in dealing with overcrowding.
Number 564
SENATOR LITTLE asked what effect this would have on the Cleary
Settlement if the facilities out of state don't have the same
provisions that Alaska has.
Number 570
MICHAEL STARK, Counsel to the Department of Corrections, pointed
out that under AS 33.30.031, the Department of Corrections has the
authority to transfer prisoners out of state. There is also an
independent law, which is known as the Interstate Corrections
Compact and is found in AS 33.36.010, which provides an independent
basis for transferring prisoners out of state. Typically, the
Interstate Corrections Compact is used for transferring inmates
from a state facility to another state's correctional system.
However, there are other correctional systems that are not state
systems, and AS 33.30.031 is broader authority for transferring
prisoners whenever there are not adequate state facilities.
TAPE 94-23, SIDE B
Number 558
Mr. Stark said the standard that is found in the Interstate
Corrections Compact is a more difficult standard to meet and it is
subject to legal challenge. The point of the bill is that there
should only be one standard, and it makes no sense to have a
different standard just because the possible vehicle for
transferring them might be the Interstate Compact.
Mr. Stark pointed out that the statutes provide that wherever they
send inmates there has got to be a similar degree of care provided.
The terms of the Cleary Settlement, by their own terms, are
restricted to inmates confined in the state in state-run
facilities. The specific provisions in that settlement don't apply
to inmates who are outside the state, however, they must be
provided a similar degree of care.
Number 543
SENATOR TAYLOR commented that, basically, this is just housekeeping
language. MR. STARK agreed and said the inmates rights are still
protected by existing law in 33.30.061.
Number 527
SENATOR DONLEY asked if the people who work in corrections have
taken a position on the bill. MR. STARK answered that he didn't
know, but, to his knowledge, right now there is no plan for the
wholesale transfer of prisoners out of state. However, there are
a number of crime bills before the Legislature and the correctional
system is overcrowded. That resource to transfer them out exists
right now under existing law and this would simply clarify the
standard.
SENATOR DONLEY asked which collective bargaining unit represents
the people working in corrections. DIANE SCHENKER, Special
Assistant, Department of Corrections, answered that they are
represented by ASEA and APEA. Both of those unions have opposed
out-of-state transfers in the past, but the department has not been
contacted by its employees or either of the unions on SB 292.
Number 492
SENATOR LITTLE pointed out that the whole upper floor in the
Wildwood Prison Facility is empty and could be staffed and
utilized. She asked if there is any movement in the Legislature to
fund that facility fully in order to utilize that space. MS.
SCHENKER answered that there wasn't at this point. The Governor
has requested funding and the department is pursuing every avenue
to get funding to open instate beds. Also, the Governor's amended
budget request has also requested money to increase soft bed
facilities for the misdemeanant population. There is statutory
authority for the department to contract for any type of bed in or
out of state, but they are not necessarily available.
SENATOR LITTLE stated that she is not willing at this time to fix
a statute that has do with sending prisoners outside of the state
when there is an existing facility like Wildwood that is not being
fully utilized.
Number 425
There was no motion to move SB 292 out of committee.
Number 422
SENATOR TAYLOR brought SB 295 (GRANTS/LOANS FOR STORAGE TANK
OWNERS) before the committee as the final order of business.
JOHN BARNETT, Executive Director of the Board of Storage Tank
Assistance, explained it is an appeal board for the Storage Tank
Assistance program, and it works in cooperation with the Department
of Environmental Conservation to administer the grant and loan
program for regulated underground storage tanks.
Mr. Barnette expressed the board's and Administration's support
for SB 295.
Section 1 clarifies the conditions in which an owner may appeal to
the board. Currently, there is no provision for somebody to appeal
if they have been determined completely ineligible by DEC. This
clarifies that the board will mediate the dispute between an owner
or operator and the Department of Environmental Conservation. He
noted there are approximately 151 applicants that have been
determined ineligible by DEC at this time, and some of those
ineligibility determinations may be policy calls or what might be
considered as misinterpretations of legislative intent.
Addressing Section 2, Mr. Barnett related that right now there are
approximately 400 unfunded applications for upgrade or closure. It
was estimated that these applicants would have been taken care of
before the cleanup application deadline, which is July 1, 1994.
Many of these 400 applicants will not discover contamination until
after the deadline has passed. The provision in Section 2 allows
the applicants to still be eligible if they are on the list.
Number 400
SENATOR TAYLOR asked if the list still sunsets. MR. BARNETT
responded that the application period for the cleanup program
sunsets July 1, 1994.
Number 377
SENATOR DONLEY stated his concern that some people get on the list
and then try to borrow money from banks or financial institutions
because they are on that list and they are going to get money from
the state. MR. BARNETT answered that they did experience that,
especially in the early days of the program when they had a lot of
banks questioning them as to when applicants would receive money.
However, the banks have gotten a little more savvy recently and
none of those bank or the Small Business Administration, at this
point in time, will provide a loan in conjunction with the state
funds unless a grant award has already been issued. He stated they
would support a sunset date for the upgrade and closure program.
Number 332
SENATOR DONLEY moved a conceptual amendment to add a new Section 2
that would provide a sunset date of December 31, 1994, which is the
same as Section 2 contained in CSHB 513(STA). Hearing no
objection, the motion carried.
Number 312
SENATOR LITTLE moved that SB 295, as amended, be passed out of
committee with individual recommendations. Hearing no objection,
it was so ordered.
There being no further business to come before the committee, the
meeting was adjourned at 3:55 p.m.
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