Legislature(2007 - 2008)BELTZ 211

03/04/2008 09:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 276 STATE CONSTRUCT'N PROJECT LABOR AGREEMENT TELECONFERENCED
Moved CSSB 276(STA) Out of Committee
+ SB 265 SEX OFFENDERS & CHILD KIDNAPPERS TELECONFERENCED
Moved CSSB 265(TRA) Out of Committee
*+ SB 296 CRIME VICTIM COMPENSATION FUND TELECONFERENCED
Heard & Held
+ HB 259 ESTABLISHING ALASKA HISTORY WEEK TELECONFERENCED
Moved HB 259(efd add) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 4, 2008                                                                                          
                           9:06 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lesil McGuire, Chair                                                                                                    
Senator Gary Stevens, Vice Chair                                                                                                
Senator Hollis French                                                                                                           
Senator Lyda Green                                                                                                              
Senator Con Bunde                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
SENATE BILL NO. 265                                                                                                             
"An Act relating to drivers' licenses and identification cards                                                                  
issued to sex offenders and child kidnappers."                                                                                  
     MOVED CSSB 265(TRA) OUT OF COMMITTEE                                                                                       
                                                                                                                                
SENATE BILL NO. 276                                                                                                             
"An Act relating to project labor agreements."                                                                                  
     MOVED CSSB 276(STA) OUT OF COMMITTEE                                                                                       
                                                                                                                                
HOUSE BILL NO. 259(efd add)                                                                                                     
"An Act establishing the first week of every March as Alaska                                                                    
History Week; and providing for an effective date."                                                                             
     MOVED HB 259(efd add) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 296                                                                                                             
"An Act relating to the crime victim compensation fund."                                                                        
     HEARD AND HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 265                                                                                                                  
SHORT TITLE: SEX OFFENDERS & CHILD KIDNAPPERS                                                                                   
SPONSOR(S): SENATOR(S) MCGUIRE                                                                                                  
                                                                                                                                
02/13/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/08       (S)       TRA, STA                                                                                               
02/21/08       (S)       TRA AT 1:00 PM BUTROVICH 205                                                                           
02/21/08       (S)       -- MEETING CANCELED --                                                                                 
02/28/08       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
02/28/08       (H)       -- Rescheduled to 03/04/08 --                                                                          
03/03/08       (S)       TRA RPT CS  2DP 1NR   NEW TITLE                                                                        
03/03/08       (S)       DP: KOOKESH, WIELECHOWSKI                                                                              
03/03/08       (S)       NR: OLSON                                                                                              
03/04/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
BILL: SB 276                                                                                                                  
SHORT TITLE: STATE CONSTRUCT'N PROJECT LABOR AGREEMENT                                                                          
SPONSOR(S): SENATOR(S) BUNDE                                                                                                    
                                                                                                                                
02/15/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/08       (S)       STA, L&C                                                                                               
02/28/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
02/28/08       (S)       Heard & Held                                                                                           
02/28/08       (S)       MINUTE(STA)                                                                                            
03/04/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
BILL: SB 259                                                                                                                  
SHORT TITLE: EFFECTIVE DATE: MEDICAL ASSISTANCE LAWS                                                                            
SPONSOR(S): RULES BY REQUEST OF LEGISLATIVE COUNCIL                                                                             
                                                                                                                                
02/04/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/08       (S)       STA, FIN                                                                                               
                                                                                                                                
BILL: SB 296                                                                                                                  
SHORT TITLE: CRIME VICTIM COMPENSATION FUND                                                                                     
SPONSOR(S): STATE AFFAIRS                                                                                                       
                                                                                                                                
02/27/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/27/08       (S)       STA, FIN                                                                                               
03/04/08       (S)       STA AT 9:00 AM BELTZ 211                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TREVOR FULTON, Staff                                                                                                            
to Senator McGuire                                                                                                              
Alaska State Legislature                                                                                                        
POSITION STATEMENT: Presented SB 265 and SB296.                                                                               
                                                                                                                                
DEBBIE RICHTER, Director                                                                                                        
Permanent Fund Dividend Division                                                                                                
Department of Revenue                                                                                                           
Juneau AK                                                                                                                       
POSITION STATEMENT: Answered questions regarding SB 265.                                                                      
                                                                                                                                
KATHY MONFREDA, Chief                                                                                                           
Criminal Records Bureau                                                                                                         
Department of Public Safety                                                                                                     
Anchorage AK                                                                                                                    
POSITION STATEMENT: Answered questions regarding SB 265.                                                                      
                                                                                                                                
CHRIS ASHENBRENNER, Executive Director                                                                                          
Council on Domestic Violence and Sexual Assault                                                                                 
Juneau AK                                                                                                                       
POSITION STATEMENT: Spoke in support of SB 265.                                                                               
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH                                                                                                  
Alaska State Legislature                                                                                                        
Juneau AK                                                                                                                       
POSITION STATEMENT: Presented HB 259                                                                                        
                                                                                                                                
GERAD GODFREY, Chair                                                                                                            
Violent Crimes Compensation Board                                                                                               
Juneau AK                                                                                                                       
POSITION STATEMENT: Spoke in favor of SB 296.                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  LESIL MCGUIRE  called the  Senate  State Affairs  Standing                                                             
Committee  meeting  to  order at  9:06:05  AM.  Senators  French,                                                             
Green,  Bunde, and  McGuire were  present at  the call  to order.                                                               
Senator Stevens arrived shortly thereafter.                                                                                     
                                                                                                                                
            SB 265-SEX OFFENDERS & CHILD KIDNAPPERS                                                                         
                                                                                                                              
CHAIR McGUIRE announced the consideration of SB 265.                                                                            
                                                                                                                                
9:06:54 AM                                                                                                                    
TREVOR   FULTON,  Staff   to   Senator   McGuire,  Alaska   State                                                               
Legislature, said the state sex  offender registry is popular and                                                               
effective in identifying convicted  sex offenders in communities.                                                               
The  Permanent Fund  Dividend (PFD)  has the  most complete  data                                                               
base  in  Alaska.  SB  265  combines the  resources  of  the  PFD                                                               
division  and  the Department  of  Public  Safety's sex  offender                                                               
registry. By withholding PFDs from  sex offenders that are out of                                                               
compliance with  the registry, SB  265 aims  to bring in  the one                                                               
out of ten sex offenders who  have not registered. It provides an                                                               
incentive  to register,  so  it  will reduce  the  burden on  law                                                               
enforcement of tracking down  non-compliers. Most importantly, SB
265 gives  Alaskans an improved  means to identify  convicted sex                                                               
offenders who may be living in their community.                                                                                 
                                                                                                                                
MR.  FULTON  said  CSSB  265(TRA),   Version  M,  is  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
The committee took a brief at-ease at 9:09:46 AM.                                                                             
                                                                                                                                
9:11:39 AM                                                                                                                    
CHAIR  MCGUIRE said  a cursory  look at  those out  of compliance                                                               
revealed  that  about  two  thirds would  have  applied  for  and                                                               
qualified for the PFD.                                                                                                          
                                                                                                                                
SENATOR BUNDE  said a memo  from Tam Cook  [Director, Legislative                                                               
Legal Services] notes that a  convicted felon is not eligible for                                                               
a PFD, and he asked if that prohibition ends after serving time.                                                                
                                                                                                                                
DEBBIE  RICHTER,  Director,  Permanent  Fund  Dividend  Division,                                                               
Department  of  Revenue, said  the  sex  offender would  only  be                                                               
denied a dividend while incarcerated.                                                                                           
                                                                                                                                
KATHY  MONFREDA, Chief,  Criminal Records  Bureau, Department  of                                                               
Public  Safety, said  the department  supports SB  265. It  is an                                                               
opportunity to  improve compliance.  Two thirds  of non-compliant                                                               
sex offenders applied for a dividend check last year.                                                                           
                                                                                                                                
9:15:15 AM                                                                                                                    
SENATOR  BUNDE  asked  if  the PFD  division  will  withhold  the                                                               
dividend and notify law enforcement if SB 265 passes.                                                                           
                                                                                                                                
MS. RICHTER said  her division does not address  the sex offender                                                               
registry  at  all.  A  match  is  made  with  the  Department  of                                                               
Corrections   for  people   incarcerated  with   misdemeanors  or                                                               
felonies. The division  will not deny the dividend  under SB 265,                                                               
but  would  withhold payment  for  one  year until  the  offender                                                               
becomes compliant.                                                                                                              
                                                                                                                                
SENATOR BUNDE asked if she will notify the department.                                                                          
                                                                                                                                
MS. RICHTER said  information will be coming  from the Department                                                               
of Public Safety.  Eligibility work will need to  be done because                                                               
the sex offender would need to prove compliance.                                                                                
                                                                                                                                
9:17:38 AM                                                                                                                    
SENATOR BUNDE said he doesn't understand the process.                                                                           
                                                                                                                                
CHAIR MCGUIRE said the process  will be established. The point is                                                               
to  bring  sex offenders  into  compliance  when applying  for  a                                                               
dividend. Currently  a similar  process works  for those  who are                                                               
convicted criminals. She  has been working with  Ms. Monfreda and                                                               
Ms.  Richter to  come  up  with a  process  and  doesn't want  to                                                               
dictate every minute detail in  statute. This will just tell them                                                               
to do it, and they will come up with a system.                                                                                  
                                                                                                                                
9:19:04 AM                                                                                                                    
SENATOR FRENCH said, "I would  assume that should the dividend be                                                               
delayed and  should the  sex offender  who isn't  registered with                                                               
the right  address [indecipherable]  convicted during  that year,                                                               
during the period of delay, then the dividend will be denied."                                                                  
                                                                                                                                
MS. RICHTER said that is correct.                                                                                               
                                                                                                                                
SENATOR FRENCH  said he is no  friend of sex offenders,  but many                                                               
of the failures  to register are highly  technical, and sometimes                                                               
it is  a matter of  being one day behind.  It can be  a paperwork                                                               
problem, and  so it seems fair  to hold back on  the dividend for                                                               
the time  and see  if the  prosecutor has a  strong case.  If the                                                               
person is convicted of failure  to register, then the dividend is                                                               
withheld.  If it  turns  out  the case  is  dropped  and the  sex                                                               
offender is  registered at  the right address  - which  is really                                                               
the idea - then "all is well."                                                                                                  
                                                                                                                                
9:20:22 AM                                                                                                                    
CHAIR MCGUIRE  said if the dividend  was denied, it opens  up the                                                               
appeals  process and  the  question  of rights.  If  there was  a                                                               
legitimate  attempt  to register  or  a  paperwork problem,  then                                                               
there would be an administrative nightmare.                                                                                     
                                                                                                                                
SENATOR GREEN asked about the fiscal note.                                                                                      
                                                                                                                                
MS.  RICHTER said  the  fiscal  note does  not  address just  the                                                               
impact of the bill on the  PFD division. SB 265 will affect every                                                               
functional area of  the division minimally. The  situation now is                                                               
that  the division  is  backlogged in  appeals.  There are  4,000                                                               
appeals  and  the   division  is  about  8   months  behind.  The                                                               
eligibility  staff also  handles public  response, "so  we're not                                                               
able now  to deal with the  volume of contact that  we get during                                                               
application season and during payment  season." She is asking for                                                               
two positions including an eligibility  specialist, which takes a                                                               
year to fully  train. The contractual portion of  the fiscal note                                                               
for $96,000  is the cost  of hiring  the contractor to  write the                                                               
agency interface that  the division lost when it  switched to the                                                               
new database system.  The new system will be  very efficient over                                                               
time,  but  pieces are  not  written.  This $96,000  writes  that                                                               
interface and makes this match with DPS possible.                                                                               
                                                                                                                                
9:23:15 AM                                                                                                                    
SENATOR  GREEN asked  if those  costs  will be  incurred with  or                                                               
without SB 265.                                                                                                                 
                                                                                                                                
MS. RICHTER said the division received  the bid but does not have                                                               
the funding to implement it.                                                                                                    
                                                                                                                                
SENATOR BUNDE said that should have been a budget request.                                                                      
                                                                                                                                
MS.  RICHTER  said she  was  not  aware  that  this would  be  an                                                               
unintended  consequence of  rolling the  system over  until after                                                               
the budget passed.                                                                                                              
                                                                                                                                
SENATOR  BUNDE  asked  if  the  division is  funded  out  of  the                                                               
permanent fund.                                                                                                                 
                                                                                                                                
MS. RICHTER  said her  division is  funded out  of money  that is                                                               
transferred to pay the dividends.                                                                                               
                                                                                                                                
MS. MONFREDA said  her office will work out the  details with the                                                               
PFD  division. The  division  fears  a spate  of  calls from  sex                                                               
offenders, and she will try to minimize that.                                                                                   
                                                                                                                                
CHAIR MCGUIRE asked the percentage of people out of compliance.                                                                 
                                                                                                                                
9:25:18 AM                                                                                                                    
MS.  MONFREDA  said  about  90   percent  of  sex  offenders  are                                                               
compliant, and the  state is trying to improve that.  Not all are                                                               
in Alaska, and it takes an investigation to track people.                                                                       
                                                                                                                                
CHRIS  ASHENBRENNER,  Executive  Director,  Council  on  Domestic                                                               
Violence and Sexual Assault, Juneau, said  SB 265 is a great tool                                                               
for tracking sex offenders for safety and accountability.                                                                       
                                                                                                                                
SENATOR FRENCH moved to report  CSSB 265(TRA) from committee with                                                               
individual   recommendations  and   accompanying  fiscal   notes.                                                               
Hearing no objections, CSSB 265(TRA) passed out of committee.                                                                   
                                                                                                                                
        SB 276-STATE CONSTRUCT'N PROJECT LABOR AGREEMENT                                                                    
                                                                                                                                
CHAIR MCGUIRE announced the consideration of SB 276.                                                                            
                                                                                                                                
9:28:25 AM                                                                                                                    
SENATOR  BUNDE  noted an  amendment  to  SB  276 to  address  the                                                               
concerns by Senator French the  last time the committee discussed                                                               
the bill to make sure people have accurate information.                                                                         
                                                                                                                                
9:29:16 AM                                                                                                                    
SENATOR BUNDE  moved Amendment  1, labeled  25-LS1247\M.1, Wayne,                                                               
as follows:                                                                                                                     
                                                                                                                                
    Page 2, following line 9:                                                                                                   
    Insert a new subsection to read:                                                                                            
         "(c)  An employer or labor representative who                                                                          
    participates in  or administers a  fringe benefits  program                                                                 
    that is available  for selection by  an employee under  (b)                                                                 
    of this  section shall provide  to the  employee a  written                                                                 
    description of  the fringe  benefits program  within seven                                                                  
    days after a request by the employee."                                                                                      
                                                                                                                                
    Reletter the following subsection accordingly.                                                                              
                                                                                                                                
    Page 2, line 28, following "agreement;":                                                                                
         Insert "an employer or labor representative who                                                                    
    administers a  fringe benefits  program that  is available                                                              
    for selection  by an  employee under  this paragraph shall                                                              
    provide the  employee  with a  written description  of  the                                                             
    fringe benefits program within  seven days after a request                                                              
    by the employee;"                                                                                                       
                                                                                                                                
SENATOR FRENCH objected.                                                                                                        
                                                                                                                                
SENATOR BUNDE said Amendment 1  requires that an employee under a                                                               
project work  agreement is informed  within the first  seven days                                                               
of employment detailing union and non-union benefit plans.                                                                      
                                                                                                                                
SENATOR FRENCH removed his objection, and Amendment 1 passed.                                                                   
                                                                                                                                
SENATOR  BUNDE  said the  bill  gives  people  who work  under  a                                                               
project labor agreement an opportunity  to be vested in the union                                                               
benefit plan  if it is  the most  beneficial or to  continue with                                                               
the  benefit plan  of  their employer.  During  the Trans  Alaska                                                               
Pipeline project, people went to  work and they were not employed                                                               
long enough  to vest. There has  been a change. In  those days it                                                               
was a ten-year vesting period and  now it is five. But five years                                                               
is quite a  long time, so it  may be in a  person's best interest                                                               
to continue with their non-union program.                                                                                       
                                                                                                                                
9:32:04 AM                                                                                                                    
SENATOR BUNDE moved to report  SB 276, as amended, from committee                                                               
with  individual  recommendations  and attached  fiscal  note(s).                                                               
There being no objection, CSSB 276(STA) passed out of committee.                                                                
                                                                                                                                
            HB 259-ESTABLISHING ALASKA HISTORY WEEK                                                                         
                                                                                                                                
CHAIR MCGUIRE announced the consideration  of HB 259. [Before the                                                               
committee was HB 259(efd add).]                                                                                                 
                                                                                                                                
9:33:10 AM                                                                                                                    
REPRESENTATIVE  ANNA FAIRCLOUGH,  Alaska State  Legislature, said                                                               
HB  259 establishes  the first  week of  March as  Alaska History                                                               
Week. The idea came from  a national history program where Alaska                                                               
has many  contestants. National  History day  focuses on  a topic                                                               
and  this year  it  is  conflict and  compromise.  The bill  will                                                               
"align us so that our  students could compete nationally and also                                                               
to honor the  different things that have happened  to make Alaska                                                               
the  great state  that it  is by  designating the  first week  of                                                               
March  as   Alaska  History   week."  The   earthquake,  Alaska's                                                               
purchase, and the Iditarod all  occurred in March. A history week                                                               
will recognize  all the great Alaska  accomplishments. It doesn't                                                               
require the schools to do anything,  but it creates an avenue for                                                               
them to participate nationally with other colleagues.                                                                           
                                                                                                                                
9:35:02 AM                                                                                                                    
SENATOR STEVENS  said he  objects to the  first statement  of her                                                               
sponsor statement that  speaks of Alaska having  a short history.                                                               
We  have  a  longer  history  than  most.  Most  people  on  this                                                               
continent came through Alaska.                                                                                                  
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH said she will change that.                                                                            
                                                                                                                                
9:35:43 AM                                                                                                                    
CHAIR MCGUIRE asked if schools teach Alaska history.                                                                            
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH said  it is  taught in  Anchorage, but                                                               
she doesn't think it is mandated by the state.                                                                                  
                                                                                                                                
CHAIR MCGUIRE  said she  benefitted from  learning it  in school.                                                               
The basic background of Alaska benefitted her.                                                                                  
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  said  Alaska  has  a  rich  heritage.                                                               
Teachers can teach to the point in time of history week.                                                                        
                                                                                                                                
9:37:13 AM                                                                                                                    
CHAIR  MCGUIRE   wishes  she  can   mandate  Alaska   history  in                                                               
California schools.                                                                                                             
                                                                                                                                
SENATOR BUNDE said  he had a college requirement to  take a state                                                               
history class and asked if that is the case in Alaska.                                                                          
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH said  Alaska history was not  a part of                                                               
her accreditation.                                                                                                              
                                                                                                                                
9:37:57 AM                                                                                                                    
SENATOR  STEVENS  moved to  report  HB  259 from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, HB 259 (efd add) moved from committee.                                                                      
                                                                                                                                
The committee took a brief at-ease at 9:38:49 AM.                                                                             
                                                                                                                                
             SB 296-CRIME VICTIM COMPENSATION FUND                                                                          
                                                                                                                                
VICE-CHAIR STEVENS announced the consideration of SB 296.                                                                       
                                                                                                                                
9:43:16 AM                                                                                                                    
TREVOR   FULTON,  Staff   to   Senator   McGuire,  Alaska   State                                                               
Legislature, said SB  296 creates a non general  fund program for                                                               
the  Violent Crimes  Compensation Board  (VCCB), which  generates                                                               
funds for  the board  with no additional  outlay of  state funds.                                                               
The  arguments  for  and against  putting  dedicated  funds  into                                                               
statute are  familiar territory. It  would be the 83rd  such fund                                                               
on the books.  It is difficult to argue that  the state is better                                                               
off forgoing  the additional $0.60  in federal grants  that would                                                               
be generated  for every  dollar put  into the  compensation fund.                                                               
The mission  of the VCCB  is to mitigate the  financial hardships                                                               
innocent victims can suffer as  a direct result of violent crime.                                                               
The board may pay for  medical expenses, counseling, lost income,                                                               
funeral expenses, and  other costs for Alaska  victims of violent                                                               
crimes. SB  296 will generate  additional funds for  this program                                                               
without additional appropriations.                                                                                              
                                                                                                                                
9:45:04 AM                                                                                                                    
SENATOR  GREEN read  a  part  of the  bill  and  asked where  the                                                               
connection is  with the source  of the  money that is  coming in.                                                               
She asked what funds the bill is talking about.                                                                                 
                                                                                                                                
SENATOR  FRENCH said  the sponsor  statement says  that the  VCCB                                                               
awards $1.3  million every year.  In paragraph three, it  says if                                                               
the VCCB  can get these  funds that it's  taking to pay  into the                                                               
budget, it  would have gotten  an extra  $.60 on every  dollar in                                                               
federal grants.  The last  sentence says  without any  effort the                                                               
VCCB would have gained almost $1  million in ten years. "You must                                                               
not  be talking  about  all  of the  money  received, because  if                                                               
you're giving  out $1 million  a year and you're  [getting] $0.60                                                               
on every dollar, if you just  get that money into a special fund,                                                               
then you  should be talking  about $600,000  a year." There  is a                                                               
disconnect between  the money coming from  the federal government                                                               
and the money the VCCB is taking in.                                                                                            
                                                                                                                                
9:47:15 AM                                                                                                                    
VICE-CHAIR  STEVENS said  the bill  is not  moving today  because                                                               
Chair McGuire has left.                                                                                                         
                                                                                                                                
GERAD GODFREY, Chair, Violent  Crimes Compensation Board, Juneau,                                                               
said he  doesn't understand  the question.  When anyone  comes to                                                               
the board  with a claim,  they sign a subrogation  agreement. The                                                               
maximum   for   any  victim   is   $40,000.   That  is   entirely                                                               
compensatory.  It  has  to  be  tangible  losses,  like  medical,                                                               
counseling,  lost wages,  and relocation  expenses. For  example,                                                               
someone comes who  was a victim of a DWI.  "We know they're going                                                               
to win a lawsuit insurance  settlement," but that will take time.                                                               
But  this person  is out  of work  and bills  are piling  up. The                                                               
board gives  money, and it  is a de  facto loan. When  the person                                                               
tries to pay  it back, the board  has no means to accept  it - it                                                               
has  no receipt  authority. That  money that  operated as  a loan                                                               
while  awaiting  a  suit  could  compensate  other  victims,  but                                                               
instead it  goes into the general  fund. The $0.60 on  the dollar                                                               
is available regardless  of what the state puts up.  The board is                                                               
funded through garnished PFDs of felons.                                                                                        
                                                                                                                                
9:50:36 AM                                                                                                                    
MR. GODFREY  said during the  Murkowski administration,  "we were                                                               
looking at a $400,000 decrement  because the PFD average had gone                                                               
down so much. However that money  gets put up, it is eligible for                                                               
$0.60 to the  dollar in federal matching funds." There  is no cap                                                               
on the federal money. He spoke  of a graph illustrating the money                                                               
that  originated from  the board's  initial  funding, which  came                                                               
from  the garnished  PFD money.  "When it  comes back  to us,  we                                                               
don't get  it; it goes to  the general fund." If  that money were                                                               
put back  into the VCCB  fund, it  would be eligible,  yet again,                                                               
for the $0.60  federal match. Ultimately, if the  board was given                                                               
the money that it recuperates, in  the next era of decrements the                                                               
board believes it could sustain itself.                                                                                         
                                                                                                                                
9:52:58 AM                                                                                                                    
SENATOR GREEN  suggested a review  of the language in  Section 1,                                                               
because she  finds it  confusing. She asked,  "Is it  improper to                                                               
use the word such as subjugation, or court-ordered restitution?"                                                                
                                                                                                                                
SENATOR FRENCH said the clearer the better.                                                                                     
                                                                                                                                
SENATOR FRENCH said  he is fuzzy on the details.  It is not clear                                                               
why some dollars count for the federal match and why some don't.                                                                
                                                                                                                                
MR. GODFREY  said all the money  the state puts up,  whatever the                                                               
source, is eligible for the sixty  cents on the dollar. The money                                                               
that is eligible that the VCCB  puts up this year that didn't get                                                               
expended  because  of recuperation  comes  back  and is  eligible                                                               
again, rather than  a different allocation of  money. "If $30,000                                                               
was put up this year and  therefore it's eligible for sixty cents                                                               
to the dollar  federal money, and it was utilized  in the form of                                                               
that illustration I gave you,  like the DWI victim, that $30,000,                                                               
and it  comes back to  us again, next  year that same  $30,000 is                                                               
yet again  eligible for  sixty cents to  the dollar.  Rather than                                                               
using new  money, we're using  the same  money to get  that sixty                                                               
cents on the dollar again."                                                                                                     
                                                                                                                                
9:55:52 AM                                                                                                                    
SENATOR BUNDE  said it just recycles  the money. It is  almost an                                                               
arbitrage thing. It seems barely legal.                                                                                         
                                                                                                                                
VICE-CHAIR STEVENS said, "But do you object to that?"                                                                           
                                                                                                                                
SENATOR BUNDE said no.                                                                                                          
                                                                                                                                
SENATOR GREEN said the problem is  that the money that comes back                                                               
in from subrogation goes to the  general fund and never gets back                                                               
into your account; therefore, you cannot get the sixty cents.                                                                   
                                                                                                                                
MR. GODFREY  said it  is fuzzy,  but whatever  the state  puts up                                                               
next year -  from the general fund, garnished PFDs,  or the money                                                               
that  the fund  retains  -- it  will still  be  eligible for  the                                                               
match.  "We are  double  dipping that  same  money." The  federal                                                               
money is  available regardless of how  the state puts it  up. The                                                               
money can be used again after it  operates as a de facto loan and                                                               
get the sixty cents on the dollar that it already received.                                                                     
                                                                                                                                
SENATOR BUNDE  said the bill just  cuts out a step  - the $30,000                                                               
comes  back and  goes to  the general  fund, and  the legislature                                                               
appropriates it, but  it may decide not to. But  if this is money                                                               
that VCCB generated, maybe it should go back to them.                                                                           
                                                                                                                                
MR. GODFREY said exactly.                                                                                                       
                                                                                                                                
9:58:30 AM                                                                                                                    
MR. GODFREY said  the amount that comes back to  the VCCB was not                                                               
expended -  it was recuperated.  It should still be  available to                                                               
serve its  purpose. The board  imposed policy limitations  on how                                                               
much  it  would award  certain  categories.  It had  to  restrict                                                               
awards dramatically.  It could either  help the first  30 percent                                                               
of claimants with 100 percent of  their needs or help all of them                                                               
at 55  percent of what  they were entitled  too. He hopes  SB 296                                                               
will change that.                                                                                                               
                                                                                                                                
SENATOR BUNDE said  if someone is convicted, they  lose their PFD                                                               
to the  victim. When  the victim  repays, the  money goes  to the                                                               
general fund.  But this program  generates money for  the general                                                               
fund, and  if SB 296  passes, that money  goes back to  the VCCB.                                                               
"It is money they generated anyway."                                                                                            
                                                                                                                                
VICE-CHAIR STEVENS  said the  state provides a  dollar and  it is                                                               
matched with  sixty cents. It gets  loaned to a victim,  and then                                                               
when the  victim pays it back,  it can get a  federal match again                                                               
if it goes into the VCCB fund.                                                                                                  
                                                                                                                                
MR. GODFREY said Senator Stevens definitely has the concept.                                                                    
                                                                                                                                
10:00:57 AM                                                                                                                   
SENATOR  FRENCH  said he  supports  the  board, and  maybe  there                                                               
should be a  revised fiscal note. It sounds like  the state would                                                               
be spending less general funds.                                                                                                 
                                                                                                                                
SENATOR GREEN asked if the board is ever not repaid.                                                                            
                                                                                                                                
MR.  GODFREY said  there  are limited  resources  and only  three                                                               
staff. "We  do not  have a  whole lot of  motivation -  the board                                                               
itself  is  all volunteers  --  to  pursue  those people  that  -                                                               
everyone had to sign a  subrogation agreement - those people that                                                               
ultimately are going  to win a lawsuit and if  the perpetrator is                                                               
solvent -  perhaps the  perpetrator worked on  the Slope  and has                                                               
some cash  in the  bank or  what-have-you. We  do not  expend the                                                               
resources to go after that because  we can't recuperate it, so it                                                               
just doesn't serve our purpose  to spend our limited resources to                                                               
pursue somebody  who we know can  give us back that  $25,000 when                                                               
we're not  going to recuperate it."  He said it is  not time well                                                               
spent by  the board to pursue  money owed to the  VCCB. Typically                                                               
they  will  retain  an  attorney,  especially if  it  is  not  an                                                               
insurance  settlement,  and then  they  are  obliged to  disclose                                                               
that. He  estimated that  90 percent of  the time  their attorney                                                               
will petition  the board to  ask forgiveness on  the subrogation.                                                               
They  will give  their best  compelling argument  as to  why. One                                                               
example may  be a  resultant injury  that requires  more therapy.                                                               
The board wants an attorney to  give a good pitch, "and we pretty                                                               
much take it at the first  blush … because to spend the resources                                                               
to vet  out the veracity  of what the  attorney is saying  … he's                                                               
going  to  make  the  best  argument and  sometimes  we  buy  it,                                                               
sometimes we  don't." If the  board knew it could  recuperate it,                                                               
it would spend more time and  ask for more documentation and some                                                               
follow-up from the  attorney. "Yes, there's times when  we do not                                                               
recuperate money that was due us."                                                                                              
                                                                                                                                
10:04:35 AM                                                                                                                   
SENATOR   GREEN  suggested   that  it   would  be   difficult  to                                                               
approximate what  the board could  get back from people,  and she                                                               
asked if his attitude would change if SB 296 passes.                                                                            
                                                                                                                                
MR. GODFREY said  it would change because the  board could become                                                               
self sufficient  by recuperating  that money --  and lean  on the                                                               
general fund  less and  less to  the point of  not needing  it at                                                               
all.  There would  then be  more motivation  to go  after it.  He                                                               
would probably  develop a series of  steps for an attorney  to go                                                               
through. "We would like to go  after the money whether it's going                                                               
to the general fund or not; we just don't have the resources."                                                                  
                                                                                                                                
SENATOR GREEN  asked if he would  object to language in  the bill                                                               
asking the board to pursue the payments.                                                                                        
                                                                                                                                
MR. GODFREY said he would have no problem with that.                                                                            
                                                                                                                                
VICE-CHAIR STEVENS suggested working on the sponsor statement.                                                                  
                                                                                                                                
SENATOR FRENCH  said he would  like to  hear from the  people who                                                               
prepared the fiscal note and who oversee the funds.                                                                             
                                                                                                                                
VICE-CHAIR STEVENS said also to pursue Senator Green's idea.                                                                    
                                                                                                                                
MR. GODFREY  said the board  has been  working on this  for years                                                               
and he appreciates the opportunity to provide clarity.                                                                          
                                                                                                                                
VICE-CHAIR STEVENS set SB 296  aside and adjourned the meeting at                                                               
10:08:03 AM.                                                                                                                  
                                                                                                                                

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