SENATE BILL NO. 115(efd fld)                                                                                                  
                                                                                                                                
     "An   Act   allowing  expenses   of   the   correctional                                                                   
     industries  program  that   may  be  financed  from  the                                                                   
     correctional  industries  fund to  include the  salaries                                                                   
     and benefits of state employees."                                                                                          
                                                                                                                                
Vice-Chair Meyer MOVED to ADOPT  the Committee Substitute 23-                                                                   
GS1104\D  (4/25).  There  being NO  OBJECTION  the  Committee                                                                   
Substitute was ADOPTED.                                                                                                         
                                                                                                                                
Vice-Chair  Meyer pointed  out the changes  in the  Committee                                                                   
Substitute.   He noted that  the changes were  to incorporate                                                                   
comments  made during  the  previous Committee  hearing,  and                                                                   
made reference  to Co-Chair Harris' concerns  about competing                                                                   
with private industry.  He also  noted concerns raised by the                                                                   
Public Employees  Union, and stated  that these  parties were                                                                   
now in agreement on the bill.                                                                                                   
                                                                                                                                
JERRY   BURNETT,   DIRECTOR    OF   ADMINISTATIVE   SERVICES,                                                                   
DEPARTMENT OF  CORRECTIONS spoke to the changes  contained in                                                                   
the  Committee  Substitute.    He noted  that  the  Committee                                                                   
Substitute   provides  intent   to   keep  the   correctional                                                                   
industries  program   operating  if   it  fails   to  produce                                                                   
sufficient income.   He referred  to Section 3, b  2, stating                                                                   
that the  correctional institute  may sell products  to other                                                                   
companies   as  approved  by   the  Correctional   Industries                                                                   
Commission.  The  section  deletes:  "have  minimal  negative                                                                   
impact  on existing  private  industry  or labor  force"  and                                                                   
inserts: "will be of benefit to".   The purpose of the change                                                                   
is  to  encourage  correctional  institutions  to  work  with                                                                   
private industry.                                                                                                               
                                                                                                                                
Co-Chair  Harris  asked  who determines  the  benefit.    Mr.                                                                   
Barnett   indicated   that   the    Correctional   Industries                                                                   
Commission, appointed by the Governor  and meeting quarterly,                                                                   
determines the  benefit.   In response to  a question  by Co-                                                                   
Chair Harris, Mr. Burnett explained  that the Commission made                                                                   
findings and held public hearings.                                                                                              
                                                                                                                                
FRED  COVEN, ALASKA  STATE EMPLOYEES  ASSOCIATION,  expressed                                                                   
his support for the Committee  Substitute.  He added that the                                                                   
effective  date  gave  the  correctional  industry  the  time                                                                   
needed to plan for budgetary changes.                                                                                           
                                                                                                                                
Public testimony concluded.                                                                                                     
                                                                                                                                
Representative Foster  MOVED to report  HCS SB 115  (FIN) out                                                                   
of Committee with the accompanying  fiscal note.  There being                                                                   
NO OBJECTION it was so ordered.                                                                                                 
                                                                                                                                
HCS SB  115 (FIN) was  REPORTED out of  Committee with  a "do                                                                   
pass" recommendation and one previously  public fiscal impact                                                                   
note from the Department of Corrections.                                                                                        
                                                                                                                                
Vice-Chair  Meyer  MOVED  to  Introduce  a  House  Concurrent                                                                   
Resolution  for  a  title  change:   work  draft  23-LS1047\A                                                                   
(4/24/03) on  the House Floor.  There being NO  OBJECTION, it                                                                   
was so ordered.