Legislature(2011 - 2012)BUTROVICH 205

03/06/2012 09:00 AM STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= SCR 22 ALASKA ARCTIC POLICY COMMISSION
Moved SCR 22 Out of Committee
= SB 198 POLICE OFFICER PROTECTIONS/CERTIFICATION
Moved CSSB 198(STA) Out of Committee
*+ SB 222 APPROP: BASE CLOSURE/REALIGNMENT STUDY TELECONFERENCED
Moved SB 222 Out of Committee
+= SB 29 TAX EXPENDITURE REPORT TELECONFERENCED
Heard & Held
*+ SB 208 DISASTER PLANNING AND SERVICES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 6, 2012                                                                                          
                           9:02 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bill Wielechowski, Chair                                                                                                
Senator Joe Paskvan, Vice Chair                                                                                                 
Senator Kevin Meyer                                                                                                             
Senator Cathy Giessel                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Albert Kookesh                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 22                                                                                             
Establishing   and  relating   to   the   Alaska  Arctic   Policy                                                               
Commission.                                                                                                                     
                                                                                                                                
     - MOVED SCR 22 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 198                                                                                                             
"An   Act   establishing   procedures   relating   to   issuance,                                                               
suspension, or revocation of certification  of police officers by                                                               
the  police  standards  council;  making  certain  court  service                                                               
officers  subject  to  certification   by  the  police  standards                                                               
council; making confidential  certain information that personally                                                               
identifies a police officer; relating  to requesting or requiring                                                               
police  officers to  submit to  lie detector  tests; repealing  a                                                               
provision exempting  certain police  officers from  a prohibition                                                               
against  requiring certain  employees to  submit to  lie detector                                                               
tests; and providing for an effective date."                                                                                    
                                                                                                                                
     - MOVED CSSB 198(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 222                                                                                                             
"An  Act making  a  special appropriation  to  the Department  of                                                               
Military  and Veterans'  Affairs  to hire  a  consulting firm  to                                                               
develop  strategies  for   retention  of  military  installations                                                               
affected by  the next base realignment  and closure announcement;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
     - MOVED SB 222 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 29                                                                                                              
"An  Act  relating  to  the reporting  and  analysis  of  certain                                                               
information  relating  to  tax credits,  deductions,  exclusions,                                                               
exemptions, deferrals, and other  tax expenditures; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 208                                                                                                             
"An Act establishing  an Alaska intrastate mutual  aid system and                                                               
relating  to  the  duties  of the  Alaska  division  of  homeland                                                               
security and  emergency management and  the duties of  the Alaska                                                               
State Emergency Response Commission."                                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SCR 22                                                                                                                  
SHORT TITLE: ALASKA ARCTIC POLICY COMMISSION                                                                                    
SPONSOR(s): FINANCE BY REQUEST OF AK NORTHERN WATERS TASK FORCE                                                                 
                                                                                                                                
02/06/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/06/12       (S)       STA, FIN                                                                                               
02/23/12       (S)       STA AT 9:00 AM FAHRENKAMP 203                                                                          
02/23/12       (S)       Heard & Held                                                                                           
02/23/12       (S)       MINUTE(STA)                                                                                            
03/06/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 198                                                                                                                  
SHORT TITLE: POLICE OFFICER PROTECTIONS/CERTIFICATION                                                                           
SPONSOR(s): STATE AFFAIRS                                                                                                       
                                                                                                                                
02/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/12       (S)       STA, JUD                                                                                               
03/01/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/01/12       (S)       Heard & Held                                                                                           
03/01/12       (S)       MINUTE(STA)                                                                                            
03/06/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 222                                                                                                                  
SHORT TITLE: APPROP: BASE CLOSURE/REALIGNMENT STUDY                                                                             
SPONSOR(s): STATE AFFAIRS                                                                                                       
                                                                                                                                
02/29/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/29/12       (S)       STA, FIN                                                                                               
03/06/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB  29                                                                                                                  
SHORT TITLE: TAX EXPENDITURE REPORT                                                                                             
SPONSOR(s): WIELECHOWSKI                                                                                                        
                                                                                                                                
01/19/11       (S)       PREFILE RELEASED 1/7/11                                                                                
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       STA, FIN                                                                                               
03/01/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/01/12       (S)       Scheduled But Not Heard                                                                                
03/06/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 208                                                                                                                  
SHORT TITLE: DISASTER PLANNING AND SERVICES                                                                                     
SPONSOR(s): PASKVAN                                                                                                             
                                                                                                                                
02/21/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/12       (S)       STA, FIN                                                                                               
03/06/12       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
WESTON EILER, Staff                                                                                                             
Senator Bert Stedman                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented SCR 22 on behalf of the sponsor.                                                                
                                                                                                                                
THOMAS PRESLEY, Intern                                                                                                          
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Related the changes in SB 198 on behalf of                                                                
the sponsor.                                                                                                                    
                                                                                                                                
DAVID SEXTON, Executive Director                                                                                                
Alaska Police Standards Council                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Commented on the changes to SB 198.                                                                       
                                                                                                                                
TERRY VRABEC, Deputy Commissioner                                                                                               
Office of the Commissioner                                                                                                      
Department of Public Safety                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to SB 198.                                                                     
                                                                                                                                
KENDRA KLOSTER, Staff                                                                                                           
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 222 on behalf of the sponsor.                                                               
                                                                                                                                
MCHUGH PIERRE, Deputy Commissioner                                                                                              
Office of the Commissioner                                                                                                      
Department of Military & Veterans Affairs                                                                                       
Fort Richardson, Alaska                                                                                                         
POSITION STATEMENT: Testified in support of SB 222.                                                                           
                                                                                                                                
DOUG ISAACSON, Mayor                                                                                                            
City of North Pole                                                                                                              
North Pole, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of SB 222.                                                                           
                                                                                                                                
SAM GOTTSTEIN, Staff                                                                                                            
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 29 on behalf of the sponsor.                                                                
                                                                                                                                
MATTHEW GARDNER, Executive Director                                                                                             
Institute on Taxation and Economic Policy                                                                                       
Washington, D.C.                                                                                                                
POSITION STATEMENT: Testified in support of SB 29.                                                                            
                                                                                                                                
MATT WALLACE, Executive Director                                                                                                
Alaska Public Interest Research Group (APIRG)                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 29.                                                                            
                                                                                                                                
JOHANNA BALES, Deputy Directory                                                                                                 
Tax Division                                                                                                                    
Department of Revenue                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions related to SB 29.                                                                      
                                                                                                                                
DAVID GIBBS, Director                                                                                                           
Department of Emergency Operations                                                                                              
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 208.                                                                           
                                                                                                                                
JEFF TUCKER, Fire Chief                                                                                                         
North Star Volunteer Fire Department and                                                                                        
Member                                                                                                                          
Alaska Fire Chief's Association                                                                                                 
North Pole, Alaska,                                                                                                             
POSITION STATEMENT: Testified in support of SB 208.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:02:44 AM                                                                                                                    
CHAIR BILL WIELECHOWSKI called the  Senate State Affairs Standing                                                             
Committee meeting  to order at 9:02  a.m. Present at the  call to                                                               
order   were  Senators   Giessel,  Paskvan,   Meyer,  and   Chair                                                               
Wielechowski. Senator Kookesh was excused.                                                                                      
                                                                                                                                
             SCR 22-ALASKA ARCTIC POLICY COMMISSION                                                                         
                                                                                                                                
9:03:00 AM                                                                                                                    
CHAIR  WIELECHOWSKI announced  that the  first order  of business                                                               
would be  SCR 22, which  would establish an Alaska  Arctic Policy                                                               
Commission.  On February  23, the  committee  heard from  Senator                                                               
Stedman's staff about the need  to develop a cogent Arctic policy                                                               
in Alaska.  The commission would build  on the good work  done by                                                               
the Northern  Waters Task Force  over the past interim.  The bill                                                               
has a  fiscal note of  about $250,000 for FY  13 and FY  14. This                                                               
would  cover the  cost of  one staff  member for  the commission,                                                               
travel,   printing,   and   funding  for   professional   service                                                               
contracts.                                                                                                                      
                                                                                                                                
WESTON EILER,  staff, Senator  Bert Stedman,  sponsor of  SCR 22,                                                               
refreshed  the committee  on the  contents of  the resolution  on                                                               
behalf of  the sponsor.  He said the  resolution was  the logical                                                               
next step in defining and developing Alaska's Arctic policy.                                                                    
                                                                                                                                
SENATOR  GIESSEL  asked for  more  information  about the  member                                                               
representing an Arctic organization listed  on page 3, line 17 of                                                               
the resolution.                                                                                                                 
                                                                                                                                
MR.  EILER   replied  that  there  are   many  multi-stakeholder,                                                               
international Arctic  organizations, such  as the  Arctic Council                                                               
and  the  Inuit Circumpolar  Conference,  of  which Alaska  is  a                                                               
member or seeking to become a member.                                                                                           
                                                                                                                                
SENATOR  GIESSEL  requested  more information  about  the  fiscal                                                               
note. She said  she thought $250,000 might be too  low for such a                                                               
large commission.                                                                                                               
                                                                                                                                
MR.  EILER   offered  to  provide   more  information   from  the                                                               
Legislative Affairs  Agency regarding the fiscal  note, which was                                                               
written to include travel and staff coordination.                                                                               
                                                                                                                                
SENATOR  GIESSEL  agreed  with  the expenses,  but  continued  to                                                               
question the validity of the fiscal note.                                                                                       
                                                                                                                                
MR.  EILER offered  to  get with  Legislative  Affairs Agency  to                                                               
provide more information.                                                                                                       
                                                                                                                                
9:07:32 AM                                                                                                                    
SENATOR MEYER  asked if the  Arctic commission would  replace the                                                               
Northern Waters Task Force.                                                                                                     
                                                                                                                                
MR. EILER said yes.                                                                                                             
                                                                                                                                
CHAIR WIELECHOWSKI  noted the resolution  had a  further referral                                                               
to finance.                                                                                                                     
                                                                                                                                
SENATOR  PASKVAN  moved to  report  SCR  22 from  committee  with                                                               
individual recommendations and the accompanying fiscal note.                                                                    
                                                                                                                                
CHAIR WIELECHOWSKI  announced that without objection,  SCR 22 was                                                               
moved from the Senate State Affairs Standing Committee.                                                                         
                                                                                                                                
        SB 198-POLICE OFFICER PROTECTIONS/CERTIFICATION                                                                     
                                                                                                                                
9:09:13 AM                                                                                                                    
CHAIR WIELECHOWSKI  noted that SB  198 was before  the committee.                                                               
The bill changes  procedures used by the  Alaska Police Standards                                                               
Council (APSC) when investigating the  conduct of an officer. The                                                               
committee  heard   the  bill   last  week   and  has   since  had                                                               
conversations with the Department of  Public Safety (DPS) and the                                                               
Public  Safety  Employees  Association (PSEA).  He  thanked  both                                                               
entities for  their willingness to address  previous concerns. He                                                               
said that  a new committee  substitute (CS)  for SB 198  has been                                                               
drafted, version D.                                                                                                             
                                                                                                                                
SENATOR PASKVAN  moved to adopt  the CS  for SB 198,  labeled 27-                                                               
LS1306\D, as the working document before the committee.                                                                         
                                                                                                                                
CHAIR WIELECHOWSKI objected for discussion purposes.                                                                            
                                                                                                                                
THOMAS PRESLEY, intern to Senator Bill Wielechowski, sponsor of                                                                 
SB 198, related the changes in SB 198. He read from the                                                                         
following statement:                                                                                                            
                                                                                                                                
     The CS  you see before you  is a product of  input from                                                                    
     all sides,  and addresses  issues discussed  during the                                                                    
     last hearing  on this bill.  The language in  section 1                                                                    
     has  been cleaned  up.  In the  CS,  the Alaska  Police                                                                    
     Standards Council is not bound  to follow a decision of                                                                    
     an  arbitration  court  when   deciding  to  revoke  or                                                                    
     suspend  a certificate.  Testimony  from the  Executive                                                                    
     Director of  APSC stated  the need  for the  council to                                                                    
     maintain independence  in decision making  with regards                                                                    
     to revocation, and this change allows for that.                                                                            
     Executive  Director David  Sexton and  Anchorage Police                                                                    
     Chief Mark Mew  testified to the fact  that the Council                                                                    
     has an  independent procedure and looks  at the conduct                                                                    
     of a  police officer. APSC  should not be bound  by the                                                                    
     decision  of an  arbitrator  who may  focus on  process                                                                    
     issues.  Section  3  now obligates  the  Alaska  Police                                                                    
     Standards   Council   to  "substantially   weigh"   the                                                                    
     decisions  of  arbitrations  and  employment  hearings.                                                                    
     This is  different because  the decision  of employment                                                                    
     cases  now must  only  be considered  when deciding  to                                                                    
     revoke or suspend a certificate.                                                                                           
                                                                                                                                
     Section 4  has been removed. This  section expanded the                                                                    
     definition  of   "police  officer"  to   include  court                                                                    
     service officers. Senator Giessel  asked whether or not                                                                    
     this  would have  a fiscal  impact  on training  costs.                                                                    
     After  discussion  with  the APSC,  the  Department  of                                                                    
     Public   Safety,  and   the  Public   Safety  Employees                                                                    
     Association,  it was  found that  section 4  would need                                                                    
     more discussion and  work. As of now,  that section has                                                                    
     been  taken  out  and  the  issue  of  including  court                                                                    
     service officers in  this bill will be taken  up in the                                                                    
     Judiciary Committee.                                                                                                       
                                                                                                                                
     Sections 5 and 6  now make explicit that pre-employment                                                                    
     polygraph testing  is permissible under SB  198. In our                                                                    
     last hearing,  both Mr. Sexton  and Mr. Mew  stated the                                                                    
     need  for  pre-employment  polygraph testing.  We  have                                                                    
     made progress  on this bill  and addressed many  of the                                                                    
        concerns by the Department of Public Safety, the                                                                        
     Alaska Police Standards Council, and Police Chiefs.                                                                        
                                                                                                                                
SENATOR MEYER asked why court service employees were removed.                                                                   
                                                                                                                                
MR. PRESLEY said there were unanswered questions about them.                                                                    
                                                                                                                                
SENATOR MEYER said he thought they should be included.                                                                          
                                                                                                                                
CHAIR WIELECHOWSKI explained  that it was found  that there could                                                               
be a  large fiscal impact  when including court  system employees                                                               
and more  information needs to  be sought. Senate  Judiciary will                                                               
take SB 198 up next.                                                                                                            
                                                                                                                                
SENATOR GIESSEL asked for Mr.  Sexton's opinion of the changes in                                                               
the bill.                                                                                                                       
                                                                                                                                
9:14:01 AM                                                                                                                    
DAVID  SEXTON,   Executive  Director,  Alaska   Police  Standards                                                               
Council (APSC),  commented on  the changes to  SB 198.  He opined                                                               
that the  bill was moving  in the  right direction. He  liked the                                                               
idea of  having "a  tool to  suspend." He said  he was  not clear                                                               
about new Section  1. He gave his understanding  that it required                                                               
APSC  to follow  the Administrative  Procedure Act.  He suggested                                                               
adding the  word "suspend" to  Section 2,  where it says  APSC is                                                               
allowed  to  "revoke and  modify."  He  said  he was  happy  with                                                               
Section 3 changes.                                                                                                              
                                                                                                                                
He related that  APSC was hoping to remove the  words "full time"                                                               
from the definition of police  officer in Section 4. He explained                                                               
that  currently  APSC has  no  jurisdiction  over seasonal,  part                                                               
time, or reserve officers. Removing  "full time" would allow APSC                                                               
to have  jurisdiction over all  officers. He said  he appreciated                                                               
the clarification  of the  pre-employment polygraphs  and keeping                                                               
the tool  for post-employment investigative polygraphs.  He noted                                                               
if that is done, then Sections 7 and 8 could be deleted.                                                                        
                                                                                                                                
CHAIR  WIELECHOWSKI  asked  which  version of  the  bill  he  was                                                               
looking at.                                                                                                                     
                                                                                                                                
MR. SEXTON stated he was reading from version B.                                                                                
                                                                                                                                
CHAIR  WIELECHOWSKI   noted  that   version  D  was   before  the                                                               
committee.                                                                                                                      
                                                                                                                                
MR. SEXTON continued  to say he was fine with  the changes in the                                                               
disclosure and privacy rules.                                                                                                   
                                                                                                                                
SENATOR GIESSEL  asked about  Section 3.  She read,  "The council                                                               
shall  give substantial  weight to  the significance  of a  post-                                                               
removal or reversal  of a disciplinary action." She  asked if Mr.                                                               
Sexton  was  concerned  about   the  words  "substantial  weight"                                                               
because she could not find a definition for them.                                                                               
                                                                                                                                
MR. SEXTON replied that he also  could not find a definition, but                                                               
assumed it  had a common  sense meaning. He  said did not  have a                                                               
problem  with  the  intent  behind   the  words.  He  noted  that                                                               
"substantial weight"  is difficult to  measure, as is  "clear and                                                               
convincing evidence."  He thought  the spirit behind  the wording                                                               
was acceptable.                                                                                                                 
                                                                                                                                
CHAIR WIELECHOWSKI  said an attorney suggested  that language. He                                                               
pointed  out that  SB  198  would be  heard  next  by the  Senate                                                               
Judiciary Committee. He thanked Mr. Sexton for his suggestions.                                                                 
                                                                                                                                
He  pointed  out  that  Section 1  clarifies  that  APSC  follows                                                               
procedures under the Administrative Procedure Act.                                                                              
                                                                                                                                
9:20:48 AM                                                                                                                    
CHAIR WIELECHOWSKI  noted two  fiscal notes;  one zero  note from                                                               
the Department  of Administration and an  indeterminate note from                                                               
the Department  of Public Safety  (DPS). He thought the  DPS note                                                               
would become a  zero note as a result of  changes made in version                                                               
D.                                                                                                                              
                                                                                                                                
TERRY VRABEC,  Deputy Commissioner,  Office of  the Commissioner,                                                               
Department  of Public  Safety, answered  questions related  to SB                                                               
198.                                                                                                                            
                                                                                                                                
CHAIR WIELECHOWSKI  asked if the DPS  fiscal note would now  be a                                                               
zero fiscal note.                                                                                                               
                                                                                                                                
MR. VRABEC  referred to a discussion  of the cost to  train CSO's                                                               
and  make them  certified  police officers.  He  said that  CSO's                                                               
receive  training now,  but not  at the  same level  as a  police                                                               
officer.  Under the  legislation, they  would have  to go  to the                                                               
Police Academy and it would cost  about $11,500 to train each CSO                                                               
for 18 weeks. That training could  be modified or could be spread                                                               
across fiscal years. A related  cost would be for overtime shifts                                                               
at court houses when CSO's were attending the academy.                                                                          
                                                                                                                                
CHAIR WIELECHOWSKI asked what it would cost to train 59 CSO's.                                                                  
                                                                                                                                
MR. VRABEC said $650,000.                                                                                                       
                                                                                                                                
CHAIR WIELECHOWSKI  asked if the DPS  fiscal note was now  a zero                                                               
fiscal note.                                                                                                                    
                                                                                                                                
MR. VRABEC thought so.                                                                                                          
                                                                                                                                
CHAIR WIELECHOWSKI thanked Mr. Vrabec.  He said that legal issues                                                               
could be worked out in Judiciary                                                                                                
                                                                                                                                
SENATOR PASKVAN  moved to report  the CS  for SB 198,  version D,                                                               
from   committee   with   individual  recommendations   and   the                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
CHAIR  WIELECHOWSKI   announced  that  without   objection,  CSSB                                                               
198(STA) moved from the Senate State Affairs Standing Committee.                                                                
                                                                                                                                
         SB 222-APPROP: BASE CLOSURE/REALIGNMENT STUDY                                                                      
                                                                                                                                
9:25:41 AM                                                                                                                    
CHAIR  WIELECHOWSKI   announced  that  SB  222   was  before  the                                                               
committee. The  bill proposes to  appropriate $300,000 to  hire a                                                               
consulting  firm  to  develop   strategies  to  protect  military                                                               
installations  in Alaska  from possible  closure  as the  federal                                                               
government  begins  its  Base   Realignment  and  Closure  (BRAC)                                                               
process.  The closure  of any  Alaskan base  should concern  both                                                               
state and federal  officials as Alaska plays a vital  role in the                                                               
nation's security.                                                                                                              
                                                                                                                                
KENDRA KLOSTER,  staff to Senator  Bill Wielechowski,  sponsor of                                                               
SB  222, introduced  the  bill. She  related that  SB  222 is  an                                                               
appropriation  from  the  general   fund  to  the  Department  of                                                               
Military and  Veteran's Affairs (DMVA).  The bill will  allow the                                                               
state to hire a consulting  firm from Washington, D.C. to address                                                               
recent budget  cuts of  $487 billion over  ten years,  which were                                                               
announced  by  Defense  Secretary  Panetta. The  firm  will  also                                                               
examine pending BRAC closures in 2013 and 2015.                                                                                 
                                                                                                                                
MS. KLOSTER  referred to articles  in members'  packets regarding                                                               
what other states are doing about the cuts.                                                                                     
                                                                                                                                
CHAIR WIELECHOWSKI noted the bill  came about because of meetings                                                               
with  DMVA  and  Senator  Murkowski. He  called  the  legislation                                                               
critical  for  Alaska's economy,  as  well  as for  the  nation's                                                               
security.   He  noted   the  funding   is  in   the  Supplemental                                                               
Appropriations bill currently in the Senate.                                                                                    
                                                                                                                                
9:28:48 AM                                                                                                                    
MCHUGH PIERRE,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department of  Military & Veterans  Affairs (DMVA),  testified in                                                               
support of  SB 222.  He voiced  appreciation for  the legislation                                                               
because it  was of  critical importance  to Alaska.  Other states                                                               
are taking  significant action on  infrastructure issues  for the                                                               
military. He pointed  out that the first step is  to see what the                                                               
Department of  Defense considers as Alaska's  needs and determine                                                               
how to partner with other entities.  He gave an example of a need                                                               
at  Eielson Air  Force  Base  to refurbish  the  power plant  and                                                               
privatize energy.                                                                                                               
                                                                                                                                
CHAIR   WIELECHOWSKI  requested   information   about  the   Base                                                               
Realignment and Closure (BRAC) process, both past and current.                                                                  
                                                                                                                                
MR. PIERRE  spoke of the number  one priority of BRAC,  a formula                                                               
model  used to  determine the  cost of  base relocation  (COBRA),                                                               
which  identifies  key  mechanisms  for  "racking  and  stacking"                                                               
various base operations.  He stressed that Alaska  must make sure                                                               
it is not in the top five of  the list. The goal is to use pieces                                                               
from the COBRA  model to rate each installation  and offset risky                                                               
issues before  BRAC begins.  Two BRAC's  have been  proposed, one                                                               
for 2013 and  one for 2015. Congress has to  take action for them                                                               
to  happen. He  did not  believe  Congress would  take action  to                                                               
create one in 2013, but will for 2015.                                                                                          
                                                                                                                                
CHAIR WIELECHOWSKI noted DMVA hired  a consultant for the Eielson                                                               
BRAC in the past.                                                                                                               
                                                                                                                                
MR. PIERRE recalled that in  2005, DMVA hired the Lundquist Group                                                               
from Washington,  D.C. for $2  million. They worked  closely with                                                               
the  Fairbanks  North Star  Borough  and  the Fairbanks  Economic                                                               
Development  Corporation   in  order  to  display   to  the  BRAC                                                               
Commission the  military strategic  importance case  for Eielson.                                                               
That effort  will have to be  repeated for the upcoming  BRAC. He                                                               
noted that there was only one  installation in the 1993 BRAC that                                                               
was saved  due to the economic  impact on the community  and that                                                               
was Whidbey  Island in Washington.  It was the  only installation                                                               
saved  because of  the "economic  impact" argument.  He concurred                                                               
with Chair Wielechowski  that for the 2015 BRAC  the focus should                                                               
be on "military strategic importance."                                                                                          
                                                                                                                                
9:33:33 AM                                                                                                                    
DOUG ISAACSON,  Mayor, City of  North Pole, testified  in support                                                               
of SB  222. He  related that  Eielson was  vital to  the Northern                                                               
Edge exercise last  year as well as to Red  Flag. He stressed the                                                               
strategic importance  of Eielson  and the  need for  a consultant                                                               
for the  BRAC process. He  spoke of the devastation  to Fairbanks                                                               
North Star  Borough if jobs at  Eielson are lost. He  described a                                                               
picture of what  would happen to North Pole as  a result of BRAC.                                                               
He called the legislation a necessary first step.                                                                               
                                                                                                                                
CHAIR  WIELECHOWSKI requested  a  motion to  move  the bill  from                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR  PASKVAN  moved  to  report   SB  222,  version  M,  from                                                               
committee  with  individual   recommendations  and  the  attached                                                               
fiscal note.                                                                                                                    
                                                                                                                                
CHAIR  WIELECHOWSKI  announced  that without  objection,  SB  222                                                               
moved from the Senate State Affairs Standing Committee.                                                                         
                 SB  29-TAX EXPENDITURE REPORT                                                                              
                                                                                                                                
9:38:02 AM                                                                                                                    
CHAIR WIELECHOWSKI announced  the consideration of SB  29, a bill                                                               
which seeks to focus greater  public and legislative attention on                                                               
"independent state  expenditures," which the bill  defines as tax                                                               
credits,  deferrals, waivers,  exclusions, and  deductions. These                                                               
forms of  indirect spending  constitute a  high percent  of state                                                               
spending,  yet they  receive relatively  little attention  in the                                                               
annual  state  budgeting  process  and are  rarely  evaluated  to                                                               
determine whether they are meeting  the goals for which they were                                                               
initially  enacted.  The public  also  knows  little about  these                                                               
expenditures,  despite the  fact that  the state  actually writes                                                               
checks to reimburse companies for some types of tax credits.                                                                    
                                                                                                                                
SENATOR PASKVAN  moved to  adopt the  CS for  SB 29,  labeled 27-                                                               
LS0305\I, as the working document before the committee.                                                                         
                                                                                                                                
CHAIR WIELECHOWSKI objected for discussion purposes.                                                                            
                                                                                                                                
SAM GOTTSTEIN, staff to Senator  Bill Wielechowski, sponsor of SB                                                               
29,  introduced the  bill.  He said  that SB  29  deals with  tax                                                               
expenditures which  are defined on  page 4,  lines 13 and  17. He                                                               
termed tax expenditures "tax credits."  The intent of the bill is                                                               
to have  information provided  to the  legislature and  public in                                                               
order to have  a better understanding of where  the state's money                                                               
goes  and  whether  money  given for  tax  credits  achieves  its                                                               
legislative  purpose.  According  to   the  Center  for  American                                                               
Progress, tax  expenditures make up  about 25 percent  of federal                                                               
government spending.  In Alaska,  according to the  Department of                                                               
Revenue (DOR),  there were  $863 million in  tax credits  in 2011                                                               
for the oil  and gas industry. Alaska spends more  on tax credits                                                               
annually than  the budget  of DOR, DNR,  DEC, LAW,  Court System,                                                               
and the Legislature combined. That  amount is about 15 percent of                                                               
Alaska's annual expenditures.                                                                                                   
                                                                                                                                
He  reported that  only  9 states  do not  publish  this type  of                                                               
disclosure information  and Alaska is  one of them.  The majority                                                               
of Alaska's tax  credits have no disclosure. Oil  and gas credits                                                               
do not disclose  the value of each credit, where  it was applied,                                                               
how  many jobs  it creates,  or how  much goes  to wages.  On the                                                               
other hand, the Alaska Film  Office has tax credit information on                                                               
line.                                                                                                                           
                                                                                                                                
He  concluded  that the  intent  of  the  legislation is  to  get                                                               
information about all tax credits out  to the public. He said the                                                               
sponsor's intent  is to  find the  right balance  between getting                                                               
information and creating too much of  a burden on DOR to find out                                                               
the information.                                                                                                                
                                                                                                                                
MR. GOTTSTEIN addressed the changes in the bill by section:                                                                     
                                                                                                                                
     Section 1  makes the short  title of SB 29  the "Alaska                                                                    
     Tax Break Transparency Act."                                                                                               
                                                                                                                                
     Section 2 requires legislative  intent language for any                                                                    
     future tax expenditures in order  to make it easier for                                                                    
     DOR  to  figure  out  if a  particular  tax  credit  is                                                                    
     achieving its legislative intent.                                                                                          
                                                                                                                                
     Sections 3-5 are  changed to more clearly  refer to the                                                                    
     Fall Revenue Sourcebook.                                                                                                   
                                                                                                                                
     Section 6 is  the "meat and potatoes" of  the bill. The                                                                    
     first  subsection deals  with what  would be  published                                                                    
     annually for  each tax credit. It  would have statutory                                                                    
     authority  and  deal  with the  annual  sum,  how  many                                                                    
     taxpayers there were, what the  estimate of tax credits                                                                    
     for the  following year would  be, and the  estimate of                                                                    
     the public  cost. In subsection  (c) in Section  6, the                                                                    
     goal is to have a  one-time analysis of each tax credit                                                                    
     over  $1  million  to  determine  whether  the  statute                                                                    
     authorizing  the  tax   expenditure  has  achieved  its                                                                    
     purpose.  Page   4,  lines  3-9,  describes   how  that                                                                    
     happens. If it  is a new tax  expenditure, the analysis                                                                    
     will be  done either seven years  after implementation,                                                                    
     or one year  before the sunset of  the tax expenditure.                                                                    
     If it is an existing  tax expenditure, there is a five-                                                                    
     year window  after the effective  date to  complete the                                                                    
     analysis. Also  in Section  6 is  a requirement  for an                                                                    
     electronic copy of the report.                                                                                             
                                                                                                                                
     Section 7 is  the effective date of July  1, 2015. This                                                                    
     date was chosen  because DOR is working  on creating an                                                                    
     automated  system,  which was  paid  for  from a  $34.7                                                                    
     million appropriation from the legislature last year.                                                                      
                                                                                                                                
9:45:09 AM                                                                                                                    
MATTHEW GARDNER,  Executive Director,  Institute on  Taxation and                                                               
Economic Policy  (ITEP), Washington,  D.C., testified  in support                                                               
of SB 29. He related that  ITEP is a non-profit organization that                                                               
focuses on federal  and state tax policy issues  with an emphasis                                                               
on  the goals  of sustainability,  transparency, and  fairness in                                                               
tax laws. He  said that SB 29 would take  an important first step                                                               
toward  achieving those  goals by  requiring regular  scrutiny of                                                               
Alaska  tax   expenditures  that  currently  reduce   Alaska  tax                                                               
revenue.                                                                                                                        
                                                                                                                                
He explained  that the basic  insight behind tax  expenditures is                                                               
that a law that cuts taxes  for a specific individual or business                                                               
is no  different, for budget  purposes, from a law  that directly                                                               
spends money  on that  business or person.  The problem  is that,                                                               
while the  legislative budget process imposes  regular and strict                                                               
scrutiny of spending that is  done directly by government, in the                                                               
absence of  a tax  expenditure report, little  or no  scrutiny is                                                               
given to spending  that is done through a tax  cut. He emphasized                                                               
that   tax  breaks   are  government   spending  and   should  be                                                               
scrutinized the same way as appropriations.                                                                                     
                                                                                                                                
He noted  that 45  states now require  a tax  expenditure report.                                                               
Five states have enacted new legislation  similar to SB 29. SB 29                                                               
goes the  extra mile to  evaluate tax breaks because  it requires                                                               
information  on the  equity  and efficiency  effects  of the  tax                                                               
expenditure. Requiring an evaluation  of the effectiveness of tax                                                               
breaks requires  a lot of  work. Some states, such  as Washington                                                               
and  Oregon, are  doing  very well  with  the reporting  process,                                                               
because they dedicate  resources up front. Other  states, such as                                                               
New Jersey,  have taken  the first step  of legally  requiring an                                                               
evaluation  of the  effectiveness  of tax  breaks,  but have  not                                                               
followed   through   by   funding   them.  SB   29   would   make                                                               
implementation easier  than some  states because it  requires the                                                               
evaluations  to be  staggered, which  reduces costs  and provides                                                               
adequate time to complete each evaluation.                                                                                      
                                                                                                                                
MR. GARDNER  suggested that SB 29  could go further in  one area.                                                               
It could decouple  from federal tax breaks. Oregon  is an example                                                               
of  a state  that provides  that tax  expenditure reports  not be                                                               
limited  to tax  breaks created  by state  law. It  also includes                                                               
federally  created tax  breaks.  SB 29  should  require that  new                                                               
legislation  creating or  expanding a  tax break  must include  a                                                               
statement identifying the rationale behind the tax break.                                                                       
                                                                                                                                
9:50:56 AM                                                                                                                    
MATT   WALLACE,  Executive   Director,  Alaska   Public  Interest                                                               
Research Group (APIRG), testified in  support of SB 29 because it                                                               
would achieve transparency,  accountability, and effectiveness in                                                               
Alaska's budget  and policy  making. He  related two  reasons why                                                               
this legislation  is important. First, it  promotes better policy                                                               
making and provides  information about whether it is  worth it to                                                               
provide  or increase  tax credits.  Secondly, it  makes sure  the                                                               
information about tax credits is available and transparent.                                                                     
                                                                                                                                
JOHANNA  BALES, Deputy  Directory,  Tax  Division, Department  of                                                               
Revenue (DOR),  answered questions related  to SB 29.  She agreed                                                               
with the  intent of the  legislation to provide  transparency and                                                               
information about  tax expenditures, but noted  the large expense                                                               
to do  so. She  referred to Mr.  Gardner's comment  about getting                                                               
information  from the  Film Credit  Program on-line,  but pointed                                                               
out that it  would not provide the type of  information this bill                                                               
is looking  for. She  said she  was aware that  LB&A was  doing a                                                               
performance audit  of the  Film Credit  Program and  had assigned                                                               
seven  auditors  to  the  project,  which  is  expected  to  take                                                               
approximately  six  months  and   use  a  significant  amount  of                                                               
resources  to  obtain the  information.  She  concluded that  the                                                               
legislation would be a highly expensive endeavor for the state.                                                                 
                                                                                                                                
CHAIR WIELECHOWSKI  noted that  DOR was  requesting 16  new full-                                                               
time  positions,   including  8  full-time  tax   technicians  to                                                               
manually compile  the aggregate  tax expenditures,  as well  as 4                                                               
full-time auditors. He  recalled several years ago  when he filed                                                               
a bill for  an on-line checkbook, which was done  for no cost. He                                                               
pointed out  that 45 other  states are doing  performance audits.                                                               
He  opined that  the legislation  was a  good investment,  but he                                                               
hoped it could be done for less than has been proposed.                                                                         
                                                                                                                                
SENATOR PASKVAN asked  if Ms. Bales agreed  with the coordination                                                               
with the  tax management system  that the legislature put  in the                                                               
budget a year ago.                                                                                                              
                                                                                                                                
MS.  BALES said  yes. Once  that system  is up  and running,  the                                                               
ability to compile  the information would simply be  a report. At                                                               
that point in time, tax technicians  would no longer be needed to                                                               
compile data. With  the implementation date of July  1, 2015, the                                                               
implementation  would  not  be   fully  realized  until  after  a                                                               
contractor has been identified, or  around 2017. In order to meet                                                               
the requirements of SB 29,  manual compilation of data would have                                                               
to be done.                                                                                                                     
                                                                                                                                
SENATOR  PASKVAN referred  to oil  production tax  credits of  $1                                                               
billion per  year, and asked what  would be a reasonable  cost in                                                               
order  to get  a  better  understanding of  where  that money  is                                                               
going.                                                                                                                          
                                                                                                                                
MS. BALES did  not have an opinion, but said  it was something to                                                               
think about when undertaking a  performance audit. She reiterated                                                               
that it would be expensive.                                                                                                     
                                                                                                                                
SENATOR PASKVAN  asked if  the DOR  fiscal note  was less  than 1                                                               
percent of the oil tax credits.                                                                                                 
                                                                                                                                
MS. BALES said yes.                                                                                                             
                                                                                                                                
9:59:36 AM                                                                                                                    
SENATOR  GIESSEL  asked if  Ms.  Bales  believed the  bill  would                                                               
clarify  where  the Film  Tax  Credits  would  go. She  said  she                                                               
thought that  the film industry did  not pay taxes and  their tax                                                               
credits were bartered to other companies.                                                                                       
                                                                                                                                
MS. BALES requested more information.                                                                                           
                                                                                                                                
SENATOR GIESSEL explained that the  state gives the film industry                                                               
a  credit and  those credits  are  sold to  other companies.  She                                                               
asked how a performance audit would show that.                                                                                  
                                                                                                                                
MS.  BALES explained  that the  report would  show the  number of                                                               
taxpayers that are claiming the  film credit. A performance audit                                                               
would  show the  benefit  to Alaska  from a  credit  to the  film                                                               
industry. She  noted that there  are 16  Alaska-specific credits,                                                               
12 of  which meet the $1  million threshold, so there  would need                                                               
to be 12 performance audits.                                                                                                    
                                                                                                                                
SENATOR GIESSEL  restated her concern.  She described  a scenario                                                               
where the  film industry credit  was sold to another  company and                                                               
asked how that credit would show up in a performance audit.                                                                     
                                                                                                                                
MS. BALES thought it would be shown  in two ways in the audit. It                                                               
would show up as a credit  given to the company that purchased it                                                               
and how it affected the film industry.                                                                                          
                                                                                                                                
SENATOR GIESSEL referred  to charts on page 106 of  the Fall 2011                                                               
Revenue Source Book  and asked if they summarize  the credits for                                                               
that tax year.                                                                                                                  
                                                                                                                                
MS. BALES said that was correct.                                                                                                
                                                                                                                                
10:04:08 AM                                                                                                                   
CHAIR WIELECHOWSKI noted  the original fiscal note for  SB 29 was                                                               
for $1.7  million and asked  for 16  new full time  positions. In                                                               
the past few  days, substantial changes were made to  the bill in                                                               
an attempt to keep expenses down,  and the effective date was set                                                               
at July 1, 2015,  to give the Tax Division time  to get their new                                                               
automated  tax  system  operational.   That  is  the  system  the                                                               
legislature appropriated $34.7 million  for last year. The intent                                                               
of that  was to avoid  most manual compilation  and to rely  on a                                                               
much less expensive and much more efficient automated system.                                                                   
                                                                                                                                
He explained  that the  revenue period  for tax  expenditures was                                                               
changed  from annually  to 7  years following  enactment for  new                                                               
expenditures,  and within  5  years from  2015  for existing  tax                                                               
expenditures. The  definition of tax expenditures  was refined in                                                               
order  to exempt  those  that  add up  to  less  than $1  million                                                               
annually   and   any   federal  tax   expenditures   Alaska   has                                                               
incorporated  into its  tax code.  He concluded  that the  fiscal                                                               
note is now  more modest and reasonable. He  requested Ms. Bales'                                                               
estimation of costs for version I of the bill.                                                                                  
                                                                                                                                
MS. BALES predicted there would be  a reduction in the amount for                                                               
compilation; however, the performance  audits costs may have been                                                               
underestimated. Even though federal  deductions are not included,                                                               
she predicted performance audits  would be more expensive because                                                               
of the  need to include  lease expenditures and capital  costs in                                                               
the oil  tax credit program.  She pointed  out that there  are 22                                                               
tax   programs  with   their  own   exemptions,  deferrals,   and                                                               
deductions   that  go   beyond  federal   corporate  income   tax                                                               
deductions   that   the   department   "piggybacks   on."   Doing                                                               
performance  audits on  those tax  programs,  within a  five-year                                                               
timeframe, would  be expense.  Also, she  noted there  was little                                                               
guidance regarding standards for  performance audits in the bill.                                                               
She  used  the film  production  tax  credit  as an  example  and                                                               
questioned what  standards would be  used to audit it.  Even with                                                               
the changes to the bill, significant resources would be needed.                                                                 
                                                                                                                                
CHAIR WIELECHOWSKI  said he  would continue to  work with  DOR on                                                               
the fiscal note.                                                                                                                
                                                                                                                                
10:08:46 AM                                                                                                                   
SENATOR  PASKVAN  discussed costs  that  apply  to an  audit.  He                                                               
understood  that DOR  already  has an  internal  duty to  conduct                                                               
audits and  he hoped that  DOR was  not including those  costs in                                                               
the fiscal note.                                                                                                                
                                                                                                                                
MS. BALES explained that DOR  does financial tax audits. The bill                                                               
would also  require performance  audits, which  DOR does  not do.                                                               
Performance  audits require  a more  subjective  process and  DOR                                                               
would need more direction as to how to proceed.                                                                                 
                                                                                                                                
SENATOR  PASKVAN  inquired about  the  automated  system that  is                                                               
going out  to bid. He  opined that  the internal audit  aspect of                                                               
the tax credit systems would be more easily understood.                                                                         
                                                                                                                                
MS. BALES said that was the expectation.                                                                                        
                                                                                                                                
SENATOR PASKVAN asked if determining  whether a credit is meeting                                                               
the intent was a legitimate function of government.                                                                             
                                                                                                                                
MS. BALES said  yes, but the legislation is outside  the scope of                                                               
DOR's mission, which is to  collect taxes. Currently, performance                                                               
audits  are  done  by  LB&A  and  have  specific  guidelines  and                                                               
standards.                                                                                                                      
                                                                                                                                
SENATOR  PASKVAN  requested  clarification  on  whether  the  Tax                                                               
Division  has the  authority to  conduct  performance audits,  or                                                               
whether another department should take on this work.                                                                            
                                                                                                                                
MS. BALES said she has  spoken with Chair Wielechowski about that                                                               
issue. She said she was  not saying performance audits should not                                                               
be  done by  DOR.  She  voiced concern  that  the guidelines  for                                                               
performance  audits are  not included  in  the bill.  Performance                                                               
audits are done by LB&A and contain performance standards.                                                                      
                                                                                                                                
SENATOR PASKVAN asked  if Ms. Bales would be  willing to transfer                                                               
data to LB&A.                                                                                                                   
                                                                                                                                
MS. BALES said that is already done.                                                                                            
                                                                                                                                
SENATOR MEYER suggested this legislation  could be considered for                                                               
LB&A.                                                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI agreed  to work further on this  issue. He set                                                               
SB 29 aside.                                                                                                                    
                                                                                                                                
             SB 208-DISASTER PLANNING AND SERVICES                                                                          
                                                                                                                              
10:17:06 AM                                                                                                                   
CHAIR  WIELECHOWSKI   announced  that  SB  208   was  before  the                                                               
committee. SB  208 creates a  framework to  facilitate intrastate                                                               
coordination during  a declared state  of emergency. It  is based                                                               
on  model   legislation  developed  by  the   National  Emergency                                                               
Management   Association  (NEMA)   and   the  Federal   Emergency                                                               
Management  Agency (FEMA),  along  with other  parties. It  would                                                               
allow the state  to create a comprehensive,  integrated system of                                                               
mutual  aid  at  various  levels   of  government  to  ensure  an                                                               
efficient and effective response to disasters.                                                                                  
                                                                                                                                
SENATOR PASKVAN  moved to adopt  the CS  for SB 208,  labeled 27-                                                               
LS0611\B, as the working document.                                                                                              
                                                                                                                                
CHAIR WIELECHOWSKI objected for discussion purposes.                                                                            
                                                                                                                                
SENATOR PASKVAN, sponsor of SB  208, introduced the bill. He read                                                               
from the following sponsor statement:                                                                                           
                                                                                                                                
     In 2004  the National Emergency  Management Association                                                                    
     (NEMA),  in  conjunction  with  the  Federal  Emergency                                                                    
     Management  Agency  (FEMA)  and  a  host  of  emergency                                                                    
     response organizations, began  developing and promoting                                                                    
     model legislation for an  intrastate mutual aid system.                                                                    
     The  Alaska Fire  Chiefs  Association, Fairbanks  North                                                                    
     Star Borough,  and Alaska Municipal League  worked with                                                                    
     the State of Alaska's  Division of Emergency Management                                                                    
     over   the  past   year  to   transform  NEMA's   model                                                                    
     legislation into  a form that would  be most beneficial                                                                    
     to  the  specific needs  of  Alaska.  Senate Bill  208,                                                                    
     relating  to disaster  planning  and  services, is  the                                                                    
     result of  this cooperation. It  is on behalf  of these                                                                    
     aforementioned   groups  that   I   am  bringing   this                                                                    
     legislation forward for your consideration.                                                                                
                                                                                                                                
     The  Alaska Intrastate  Mutual Aid  System, established                                                                    
     by  SB 208,  is essential  in  that it  will provide  a                                                                    
     statewide  framework for  mutual  assistance among  the                                                                    
     participating political subdivisions  in the prevention                                                                    
     of, response  to, and recovery  from any  disaster that                                                                    
     results  in  a  formal declaration  of  local  disaster                                                                    
     emergency.   "Political   subdivision"  means   (A)   a                                                                    
     municipality;  (B) an  unincorporated  village; or  (C)                                                                    
     another  unit  of  local  government  according  to  AS                                                                    
     26.23.907.                                                                                                                 
                                                                                                                                
     Through SB  208, the Division of  Homeland Security and                                                                    
     Emergency  Management will  be tasked  with playing  an                                                                    
     integral   part   in    developing   and   implementing                                                                    
     guidelines  and procedures  for  the Alaska  Intrastate                                                                    
     Mutual  Aid   System.    The  Alaska   State  Emergency                                                                    
     Response Commission, created  under the Alaska Disaster                                                                    
     Act,    will    facilitate    the    preparation    and                                                                    
     implementation   of  and   provide   review  and   make                                                                    
     recommendations about the mutual aid system.                                                                               
                                                                                                                                
     The  provisions of  the  Alaska  Intrastate Mutual  Aid                                                                    
     System were  developed with  the goal  of supplementing                                                                    
     existing regional  or local agreements  by establishing                                                                    
     a comprehensive,  integrated system of mutual  aid at a                                                                    
     statewide  level  that  will ensure  an  efficient  and                                                                    
     effective  response  to   all  hazards  and  disasters.                                                                    
     Though  mutual aid  agreements between  two neighboring                                                                    
     political   subdivisions   is  somewhat   common,   aid                                                                    
     agreements   may   not    necessarily   exist   between                                                                    
     subdivisions  that do  not have  a  history of  sharing                                                                    
     emergency assistance.   However, this system  would not                                                                    
     prevent  participating  entities   from  entering  into                                                                    
     supplementary    agreements   with    other   political                                                                    
     subdivisions or  impact existing or  future agreements.                                                                    
     An  instance in  recent history  that demonstrates  the                                                                    
     need for an  intrastate mutual aid system  was the 2009                                                                    
     flooding in  Eagle and other  villages along  the Yukon                                                                    
     River. The  Fairbanks North Star  Borough did  not have                                                                    
     an  existing mutual  aid  agreement  with Eagle,  which                                                                    
     resulted  in barriers  to providing  timely aid  due to                                                                    
     concerns  about workers'  compensation, liability,  and                                                                    
     reimbursement for  aid. SB  208 would  act as  a safety                                                                    
     net in  similar situations where  aid is needed  but no                                                                    
     mutual aid agreement currently exists.                                                                                     
                                                                                                                                
     Through  SB 208,  the Alaska  Mutual  Aid System  would                                                                    
     automatically  include all  political subdivisions.   A                                                                    
     political   subdivision  may   elect  to   withdraw  by                                                                    
     enacting a  resolution through its governing  body. The                                                                    
     system further allows that  a participating entity will                                                                    
     have sole discretion to  withhold or withdraw requested                                                                    
     assistance   to  provide   reasonable  protection   and                                                                    
     services  within  its  own  territorial  limits.  Other                                                                    
     details  in  the  Alaska   Mutual  Aid  System  include                                                                    
     guidelines  for  requesting   aid;  what  assistance  a                                                                    
     participating  member may  request; qualifications  and                                                                    
     employment   of,   and   workers'   compensation   for,                                                                    
     emergency responders; reimbursement  procedures for aid                                                                    
     provided by  participating political  subdivisions; and                                                                    
     definitions.                                                                                                               
                                                                                                                                
     The  dedicated employees  and volunteers  who serve  in                                                                    
     emergency    services   recognize    that   emergencies                                                                    
     transcend  political  jurisdictional boundaries.  They,                                                                    
     and  the local  agencies  they  serve, understand  that                                                                    
     intergovernmental  coordination  is essential  for  the                                                                    
     protection of  lives and property  and for best  use of                                                                    
     available  assets. By  providing  the  structure for  a                                                                    
     statewide  mutual   aid  system,  the   requesting  and                                                                    
     responding entities  could be  assured of  an efficient                                                                    
     and effective response to hazards and disasters.                                                                           
                                                                                                                                
10:24:58 AM                                                                                                                   
CHAIR WIELECHOWSKI opened public testimony                                                                                      
                                                                                                                                
DAVID  GIBBS,  Director,   Department  of  Emergency  Operations,                                                               
Fairbanks North Star Borough, testified  in support of SB 208. He                                                               
said  he  believes  that  no single  Alaskan  community  has  the                                                               
capacity  to  handle all  catastrophic  events  that might  occur                                                               
within  their  boundaries. He  gave  examples  of disasters  that                                                               
would  necessitate  the flow  of  resources  and assistance  from                                                               
communities throughout  Alaska. He gave another  example of when,                                                               
in 2009,  there was flooding  on the Yukon River  and cooperation                                                               
between communities was vital and  complicated. The provisions in                                                               
the bill  do not replace mutual  aid already in place.  He agreed                                                               
that the  system created in SB  208 would help to  facilitate the                                                               
ability of  Alaskan communities to  help each other  during their                                                               
time of greatest need.                                                                                                          
                                                                                                                                
10:28:22 AM                                                                                                                   
JEFF TUCKER,  Fire Chief, North  Star Volunteer  Fire Department,                                                               
Member,  Alaska Fire  Chief's  Association  (AFCA), testified  in                                                               
support of  SB 208. He said  AFCA has been involved  for the last                                                               
two years  in helping to develop  a mutual aid system  for Alaska                                                               
and  was  the  recipient  of  a  grant  allowing  them  to  track                                                               
resources in  the event that  a statewide system  is established.                                                               
Alaska  is currently  one of  only  four states  without such  as                                                               
system.  He  said  the  bill   provides  a  needed  framework  to                                                               
establish  a   mutual  aid  system  and   addresses  key  issues,                                                               
including liability and compensation,  currently not addressed in                                                               
statute.                                                                                                                        
                                                                                                                                
CHAIR WIELECHOWSKI held SB 208 in committee.                                                                                    
                                                                                                                                
10:30:59 AM                                                                                                                   
There being  no further  business to  come before  the committee,                                                               
Chair Wielechowski  adjourned the  Senate State  Affairs Standing                                                               
Committee  at 10:30 a.m.                                                                                                        

Document Name Date/Time Subjects
SCR 22.pdf SSTA 3/6/2012 9:00:00 AM
SCR 22
SCR22 ANWTF Report.pdf SSTA 3/6/2012 9:00:00 AM
SCR 22
SCR 22 Sponsor Statement.pdf SSTA 3/6/2012 9:00:00 AM
SCR 22
SCR22 2-22-12.pdf SSTA 3/6/2012 9:00:00 AM
SCR 22
SCR22 2-22-12.xls SSTA 3/6/2012 9:00:00 AM
SCR 22
SB198 Ver.M.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SCR 22 - Big 4 letter..PDF SSTA 3/6/2012 9:00:00 AM
SCR 22
SB198 Justices Allow Ban on Polygraph Use.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB198 Sponsor Statement.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB198List of States that Allow for Suspension of Police Officer Certificates.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB198States with Polygraph Protection for Police Officers.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB 198 Letters of Support.PDF SSTA 3/6/2012 9:00:00 AM
SB 198
SB 198 Lettter of Support.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB198-DOA-LR-2-24-12.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB198-DPS-APSC-02-28-12.pdf SSTA 3/6/2012 9:00:00 AM
SB 198
SB 29 Approved Film Production Tax Credits by Year.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 Redeemed Film Production Tax Credits by Year.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 Sectional Analysis.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 Sponsor Statement.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 Tax Expenditures 101.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29, version A.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 DOR 1-27-12 Presentation on Oil Production Tax Credits.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 DOR 2010 Fall Revenue Sourcebook Overview.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
Draft CS for SB 29 version B.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 Explanation of Changes in S STA CS, Version A, to Version I.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 DOR 2011 Fall Revenue Sourcebook Appendix on Total Tax Expenditures.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 29 Alaska public disclosures of tax expenditures.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB029-DOR-TAX-02-28-12.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 29
SB 208_Version M.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
CSSB 208_Version B.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
SB 208_Sectional Summary.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
SB 208_Sponsor Statement.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
CSSB 208-B_Sectional Summary.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
SB 208_Support Letter_Alaska Municipal League.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
SB208-DMVA-MVA-DHSEM-3-5-12.pdf SSTA 3/6/2012 9:00:00 AM
SSTA 3/13/2012 9:00:00 AM
SB 208
SB 222.pdf SSTA 3/6/2012 9:00:00 AM
SB 222
SB222 Sponsor Statement.pdf SSTA 3/6/2012 9:00:00 AM
SB 222
SB222 Other States Efforts to Fight Base & Budget Cuts.pdf SSTA 3/6/2012 9:00:00 AM
SB 222
SB222 Air Force Structure Changes (Feb 12) (1).pdf SSTA 3/6/2012 9:00:00 AM
SB 222
SB222 Articles on DoD Cuts & AK Responses.pdf SSTA 3/6/2012 9:00:00 AM
SB 222
Support for SB 198.PDF SSTA 3/6/2012 9:00:00 AM
SB 198
SB 208_Support Letter_Alaska State Fair.pdf SSTA 3/6/2012 9:00:00 AM
SB 208
SB 208_Support Letter_Food Bank of Alaska.pdf SSTA 3/6/2012 9:00:00 AM
SB 208
SB 208_Support Letter_AK Commission on Aging.pdf SSTA 3/6/2012 9:00:00 AM
SB 208
SB 208_Support Letter_Alaska Fire Chief's Association.pdf SSTA 3/6/2012 9:00:00 AM
SB 208