MINUTES SENATE FINANCE COMMITTEE April 28, 1993 2:55 p.m. TAPES SFC-93, #69, Side 2 (225-end) SFC-93, #71, Side 1 (000-490) CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 2:55 p.m. PRESENT In addition to Co-chairs Pearce and Frank, Senators Kelly, Kerttula, Rieger, and Sharp were present. Senator Jacko did not attend. ALSO ATTENDING: Representative Parnell; Charlie Cole, Attorney General, Dept. of Law; Mead Treadwell, Deputy Commissioner, Dept. of Environmental Conservation; C.E. Swackhammer, Deputy Commissioner, Dept. of Public Safety; Jan Hansen, Director, Division of Public Assistance, Dept. of Health and Social Services; Curtis Lomas, Program Officer, AFDC, Division of Public Assistance, Dept. of Health and Social Services; Mike Mansker, Program Manager, Industry Preparedness Program, Division of Spill Prevention and Response, Dept. of Environmental Conservation; Mike Greany, Director, Legislative Finance Division; Cindy Smith, Executive Director, Network on Domestic Violence and Sexual Assault, Dept. of Public Safety; Sherrie Goll, Alaska Women's Lobby; Doug Wooliver, House Majority Office; and aides to committee members and other members of the legislature. SUMMARY INFORMATION HB 67 - ELIGIBILITY FOR PUBLIC ASSISTANCE SCS CSHB 67 (Finance) was REPORTED OUT of committee with nine fiscal notes from the Dept. of Health and Social Services. HB 69 - SEX OFFENDER REGISTRATION CSHB 69 (Finance) was REPORTED OUT of committee accompanied by a $86.5 fiscal note from the Dept. of Public Safety and zero notes from the Dept. of Administration, Dept. of Law, and Dept. of Corrections. HB 293 - EXTEND COUNCIL ON DOMESTIC VIOLENCE SCSHB 293 (Finance) was REPORTED OUT of committee with a "do pass" recommendation and a zero fiscal note from the Dept. of Public Safety. SB 89 - APPROP: CAPITAL PROJECT MATCHING GRANTS CSSB 89 (Finance) was REPORTED OUT of committee totaling $20,000,000 rather than $65,300,000. SB 150 - OIL & GAS EXPLORATION LICENSES/LEASES CSSB 150 (Finance) was REPORTED OUT of committee with a $51.0 fiscal note from the Dept. of Environmental Conservation, and a zero note from the Dept. of Revenue. SB 165 - APPROP: ALYESKA SETTLEMENT/FY 93 SUPPLMNT The "J" version of CSSB 165 (Finance), totaling $28,200,000, was ADOPTED and REPORTED OUT of committee. SB 183 - APPRO: EXXON VALDEZ,CAPITAL BUDGET FY 94 Amendments 1, 2, 3, 5, 6, 7 and 8 were ADOPTED. CSSB 183 (Finance) was REPORTED OUT of committee with a "do pass" recommendation. CS FOR HOUSE BILL NO. 69(FIN) An Act relating to registration of and information about sex offenders and amending Alaska Rules of Criminal Procedure 11(c) and 32(b). Co-chair Pearce directed that CSHB 69 (Fin) be brought on for discussion. DOUG WOOLIVER, attorney, House Majority Office, came before committee. He explained that the legislation would require persons convicted of various sex crimes to register with either the Alaska State Troopers or municipal police departments. Crimes covered by the law include: sexual assault, sexual abuse of a minor, promoting prostitution, incest, and unlawful exploitation of a minor. The registration requirement would not only cover those convicted in Alaska but those with convictions who come to Alaska from elsewhere. Locals have seven days within which to register while those from outside Alaska have fourteen days. The registration requirement would be retroactive to 1984. Individuals with two or more sex offense convictions would be required to comply with registration requirements for life while those with a single offense would be required to register for fifteen years. Mr. Wooliver next listed information that would have to be provided to law enforcement authorities at the time of registration. With the exception of fingerprints, driver's license, and aliases used, all information would be available to the public. Mr. Wooliver noted that Alaska leads nationally in instances of child sexual abuse (six times the national average). The state is second, nationally, in terms of sexual assault. Sex offenders have a high recidivism rate. One out of five will subsequently be re-arrested. Sources indicate that sex offenders are not like other criminals. They are "almost impervious" to the benefits of therapy. A number of states have discontinued treatment programs since studies in Ontario and Minnesota indicated that those who participated in them actually committed more violent crimes than those who did not receive treatment. A 1983 Iowa study found that the average number of sexual assaults committed against children by each offender was 167. The average number of child victims was 76. Because of the high rate of sex offenses in Alaska and the high rate of recidivism, it is important for employers and others to have access to information regarding offenders in order to protect themselves and their children. Mr. Wooliver attested to present lack of information on offenders from other states. He stressed that an additional benefit of the bill would be enhanced ability of law enforcement to locate sex offenders if they become suspects in additional crimes. Eighteen states currently have similar sex offender registration laws. CSHB 69 (Finance) is similar to legislation from other states except that it provides greater public protection by making registration information more accessible to the public. C.E. SWACKHAMMER, Deputy Commissioner, Dept. of Public Safety, next came before committee. He voiced support for the legislation since registration would serve as a deterrent to offenders and provide an additional resource for law enforcement personnel. He further attested to the substantial number of victims involved in crimes perpetrated by sex offenders. CINDY SMITH, Executive Director, Network on Domestic Violence and Sexual Assault, came before committee, voicing support for the bill. She noted that over the past two years, forcible rape of adult women in Alaska has increased 91%. In 1992, 530 women reported rape to the police. There were 700 confirmed reports of child sexual abuse the same year. Treatment personnel who track offenders following release from prison indicate that recidivism is approximately 80%. Treatment staff supports the legislation, believing that community awareness and monitoring of sex offender behavior has potential to reduce that recidivism. Ms. Smith stressed that unlike other criminals, sex offenders do not become less dangerous over time. Senator Kerttula noted that the fiscal note appears to be modest and asked if sufficient financial resources were being directed toward the effort. Mr. Swackhammer indicated that requested funding would get the program going. Senator Kerttula MOVED for passage of CSHB 96 (Finance) with individual recommendation. Senator Kelly posed a question regarding the 14-day registration requirement for offenders from outside Alaska. Mr. Wooliver acknowledged substantial discussion of a 30-day period. The universal complaint was that the time period was too long. Many people come to Alaska to fish or work in the fishing industry. Under the longer time period, "They have enough time to fish and spend their whole summer there and then leave without registering." The shorter time is consistent with most states. Senator Kelly reiterated concern that 14 days is too short a time period. He stressed that the bill should cover the offender who seeks to establish residency in Alaska. Senator Sharp concurred in concern regarding the shorter period, noting that an individual does not become a resident until he or she has been in the state for 30 days. Mr. Wooliver read a list of time frames from other states ranging from 24 hours to 30 days. Senator Rieger inquired regarding the penalty for failure to register. Mr. Wooliver said that it was a Class A misdemeanor (up to a year in prison). Senator Kerttula restated his MOTION for passage. He noted difficulties associated with application of law in multi- cultural communities and states. No objection to passage having been raised, CSHB 69 (Finance) was REPORTED OUT of committee with a $86.5 fiscal note from the Dept. of Public Safety, two zero notes from the Dept. of Administration (Public Advocacy and Public Defender) and zero notes from the Dept. of Corrections and the Dept. of Law. All members present signed the committee report "no rec." Senators Kelly and Jacko were absent and did not sign. CS FOR HOUSE BILL NO. 67(FIN)(efd fld) An Act relating to eligibility for and payments of public assistance. Co-chair Pearce directed that CSHB 67 (Fin)(efd fld) be brought on for discussion and directed attention to a draft SCS CSHB 67 (Finance) (8-GH1036\W, Lauterbach, 4/28/93). Co-chairman Frank MOVED for adoption of work draft "W." He explained that it adopts the House approach in terms of rolling amounts back to the 1992 level rather than the 1991 level proposed by the Governor. It also removes House Finance language requiring an increase if funding falls below 75% of the poverty line for AFDC and 100% of the poverty line for adult public assistance. The draft provides for increases when the legislature supplies money specifically for that purpose. A July 1, 1993, effective date was also added. In response to an inquiry from Senator Rieger, Co-chair Frank explained that the draft contains higher numbers but less of a reduction than the House or the Governor for both AFDC and public assistance. JAN HANSEN, Director, Division of Public Assistance, Dept. of Health and Social Services, came before committee in response to questions raised by Senator Kerttula. Mrs. Hansen explained that adult public assistance, including the elderly, the disabled, and the blind, consists of a federal core payment of $447.00 and a state supplement of $374.00 for a total of $821.00. Under the proposed Senate Finance bill, the state supplement would be reduced to $362.00, reducing the total payment to $809.00--a net reduction of $12.00. SHERRIE GOLL, Alaska Women's Lobby, next came before committee. She noted the 35 groups and 65 individuals who previously testified in opposition to the bill as it traveled through various committees. She stressed that while the proposed reduction might merely represent a restaurant meal to many people, to a poor mother and child it represents much more. It represents two weeks worth of Pampers for a baby, a bag of groceries, etc. Ms. Goll specifically noted changes in COLA that distinguish the Senate bill from that proposed by the House. She acknowledged that the automatic COLA is unique to Alaska. It is not, however, unusual for states to adjust public assistance payments to cover inflation. She stressed that while the average Alaskan spends approximately 30% of his or her income on housing. An AFDC household spends approximately 70%. Ms. Goll voiced a preference for mere suspension of the COLA as proposed by the Governor's legislation. She questioned how far into poverty people should be allowed to fall before public assistance payments are adjusted upward. Co-chair Frank referenced a fiscal note analysis indicating that changes would not become effective until October. Jan Hansen explained that because of failure of the effective date in the House, the earliest implementation would be October 1, 1993. A revised fiscal note references that date as well as associated additional costs. The legislation would become effective 90 days after signature by the Governor. While the 90-day limit may end as early as September 5, the earliest the department could effect changes for the entire caseload would be at the beginning of the next month. End, SFC-93, #69, Side 2 Begin, SFC-93, #71, Side 1 Senator Kelly inquired concerning a definition for "dependent child." CURTIS LOMAS, Program Officer, AFDC, Division of Public Assistance, Dept. of Health and Social Services, came before committee. Mr. Lomas noted that a definition currently exists in statutes. He explained that "under eighteen" years of age would be removed from statutes and "dependent child" substituted therefore to cover eighteen year olds who are still in high school. In response to an additional question from Senator Kelly concerning monetary standards that may be exceeded through regulation, Mrs. Hansen explained that setting the need standard higher than the payment standard does not increase the payment to the client. It allows a client working at a low paying job to earn moneys to supplement the AFDC payment while the individual works his or her way off AFDC. Mrs. Hansen subsequently referenced AS 47.25.410 (3) and recited the definition for "dependent child." Co-chairman Frank MOVED that SCS CSHB 67 (Finance) pass from committee with individual recommendations and appropriate fiscal notes. No objection having been raised, SCS CSHB 67 (Finance) was REPORTED OUT of committee. Co-chairs Frank and Pearce and Senators Kelly, Rieger, and Sharp signed the committee report with a "do pass" recommendation. Senator Kerttula signed "Do not pass." Senator Jacko was absent and did not sign. The following Dept. of Health and Social Services fiscal notes accompanied the bill: AFDC ($3,914.9) AFDC ( 1,944.4) AFDC ( 2,107.3) APA ( 607.7) APA ( 973.9) APA 0 PFD 414.0 Medicaid Facilities ( 106.8) Medicain Non-Facilities ( 106.9) HOUSE BILL NO. 293 An Act extending the termination date of the Council on Domestic Violence and Sexual Assault. Co-chair Pearce directed that HB 293 be brought on for discussion and referenced Amendment No. 1. She explained that Amendment No. 1 would change the extension date from June 30, 1997, to June 30, 1998. The Co-chair noted past political wrangling concerning the council and voiced need for an additional wind-down year prior to future sunset review. Co-chair Frank concurred and MOVED for adoption of Amendment No. 1. No objection having been raised, Amendment No. 1 was ADOPTED. Senator Rieger MOVED that SCS for HB 293 (Finance) pass from committee with individual recommendations. No objection having been raised, SCS HB 293 (Finance) was REPORTED OUT of committee with a zero fiscal note from the Dept. of Public Safety. All members present signed the committee report with a "do pass" recommendation. Senator Jacko was absent and did not sign. SENATE BILL NO. 89 An Act making appropriations for capital project matching grant programs; and providing for an effective date. Co-chair Pearce directed that SB 89 be brought on for discussion. She noted that the appropriation requested by the Governor totaled $67,000,000. The House has already sent $40,000,000 over to the Senate. Co-chair Pearce directed attention to proposed Amendment No. 1 and explained that it would reduce SB 89 to $20,000,000 and allow the Senate capital budget plan to remain at $300 million. Senator Kelly MOVED for adoption of Amendment No. 1. No objection having been raised, Amendment No. 1 was ADOPTED. Senator Sharp MOVED that CSSB 89 (Finance) pass from committee with individual recommendations. No objection having been raised, CSSB 89 (Finance) was REPORTED OUT of committee. Co-chairs Frank and Pearce and Senators Kelly and Sharp signed the committee report with a "do pass" recommendation. Senator Kerttula signed "Do not pass." Senator Rieger signed but made no recommendation. Senator Jacko was absent and did not sign. [Tape malfunction. This portion of the meeting did not record. Minutes reflect shorthand transcription.] SENATE BILL NO. 150 An Act providing for oil and gas exploration licenses, and oil and gas leases, in certain areas of the state; and providing for an effective date. Co-chair Pearce directed that SB 150 be brought on for discussion. Senator Kelly directed attention to a work draft CSSB 150 (Finance) (8-GS1012\Q, Chenoweth, 4/27/93) and MOVED for adoption. No objection having been raised, the "Q" version of CSSB 150 (Finance) was ADOPTED. Senator Kelly next directed attention to page 11, line 11, and noted need to change "mean low water" to "mean high water." He then MOVED for adoption of that change. No objection having been raised, the motion CARRIED and the Amendment was ADOPTED. Senator Kelly reference need for an additional change at page 11 and asked that department staff speak thereto. MIKE MANSKER, Program Manager, Industry Preparedness Program, Division of Spill Prevention and Response, Dept. of Environmental Conservation, came before committee. He directed attention to lines 22, 25, 28, and 31 and noted need to change "operator" to "person" since current statutes refer to "person" rather than "operator." Senator Sharp MOVED for adoption of the proposed language change. No objection having been raised, the motion CARRIED, and the Amendment was ADOPTED. Co-chair Pearce called for objections to passage of the bill from committee. No objection having been raised, CSSB 150 (Finance) was REPORTED OUT of committee with a $51.0 fiscal note from the Dept. of Natural Resources and a zero note from the Dept. of Revenue. Co-chair Pearce signed the committee report with a "do pass" recommendation. Co-chair Frank and Senators Kelly, Rieger, and Sharp signed "no rec." Senator Kerttula signed "Do not pass." Senator Jacko was absent and did not sign. SENATE BILL NO. 165 An Act making an appropriation to the Alyeska Settlement Fund and making appropriations from the Alyeska Settlement Fund; and providing for an effective date. Co-chair Pearce directed that SB 165 be brought on for discussion. Co-chair Frank referenced work draft CSSB 165 (Finance) (8-LS0854\J, Utermohle, 4/7/93) and MOVED for adoption. No objection having been raised, the "J" version of CSSB 165 (Finance) was ADOPTED. Co-chair Frank next directed attention to a proposed Amendment which he explained would delete existing Sec. 2 and insert a new Sec. 2. New Sec. 2 would provide $14,500,000 for construction of oil response equipment storage facilities at Tatitlek and Chenega and $6,000,000 for construction of a road from Cordova to Shepard Point. The Co-chairman further noted need to delete Sec. 6 containing lapse provisions for Sec. 2. He then MOVED for adoption of the changes at Sec. 2 and Sec. 6. No objection having been raised, the motion CARRIED and the Amendment was ADOPTED. Co-chair Frank MOVED that CSSB 165 (Finance) pass from committee with individual recommendations. No objection having been raised, CSSB 165 (Finance) was REPORTED OUT of committee. All members present signed the committee report "no rec," with the exception of Senator Kerttula who signed "Do not pass." Senator Jacko was absent and did not sign. [The recording problem was corrected at this point. The remainder of the minutes reflect tape transcription.] SENATE BILL NO. 183 An Act making special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects; and providing for an effective date. Co-chair Pearce directed that SB 183 be brought on for discussion and noted a number of amendments for the bill. Co-chair Frank MOVED for adoption of Amendment No. 1. No objection having been raised, Amendment No. 1 was ADOPTED. Senator Kelly MOVED for adoption of Revised Amendment No. 2. He explained that it would ensure that no construction at the Alaska Sea Life Center commences until all financing is in place. He noted that identical language recently passed the House. No objection having been raised, Revised Amendment No. 2 was ADOPTED. Co-chair Pearce directed attention to Amendment No. 3 and noted that it was requested by the Dept. of Law. Senator Rieger MOVED for adoption. Co-chair Pearce asked that the Attorney General speak to the request. CHARLIE COLE, Attorney General, Dept. of Law, came before committee. He explained that "substantial, ongoing" is superfluous at page 5, line 12, and should be deleted therefrom. The change is technical rather than substantive. No objection to the motion for adoption having been raised. Amendment No. 3 was ADOPTED. Co-chair Pearce directed attention to Amendment No. 4. Co- chair Frank advised that it was no longer necessary in light of adoption of Amendment No. 1. He then voiced his assumption that under language as changed by Amendment No. 1, the state would not be prohibited or constrained from awarding competitive contracts to either private or public entities. Co-chair Pearce next directed attention to Amendment No. 5 and noted the request to add "and related facilities" to language relating to the Kachemak Bay State Park visitors center. Attorney General Charlie Cole spoke to requests from residents of the Homer area that the above language be included. He stressed need for ability to apply funding to methods of access to and from the park, dock facilities, maintenance, staffing, etc. Co-chair Frank expressed concern that funding might be spent on trails and other facilities and no visitor center would be built. Attorney General Cole voiced his understanding that development would focus on the center. Senator Sharp referenced an April 15, 1993, memorandum from the department listing six different items of expenditure for the funding. Senator Rieger MOVED for adoption of Amendment No. 5. No objection having been raised, Amendment No. 5 was ADOPTED. Co-chair Pearce subsequently raised questions concerning the $500.0 in projects set forth on the above-referenced memorandum. She then asked if the park system intends to undertake those projects rather than a visitor center. The Attorney General advised that the Governor strongly favors the visitor center. Addition of "and related facilities" is not meant to incorporate the views expressed in the DNR memorandum. Mr. Cole reiterated that the central focus is the visitor center. Co-chair Pearce asked who would decide how the $500.0 is spent. The Attorney General said the department would be asked to sketch out a plan of development for approval by the Governor. Senator Sharp remarked on the existence of property in-holders in the area and stressed that the $500.0 should not develop amenities "next to the in-holders' property." Mr. Cole concurred. Co-chair Pearce directed attention to Amendment No. 6 a n d noted that it was requested by Commissioner Rosier, Dept. of Fish and Game. She then asked why it was necessary to add "habitat" to restoration projects under department jurisdiction. Attorney General Cole explained that the addition would clarify the purpose. It is designed to be limiting in response to concerns that "restoration" was too broad and unqualified. Senator Kelly MOVED for adoption of Amendment No. 6. No objection having been raised, Amendment No. 6 was ADOPTED. Senator Rieger MOVED for adoption of Amendment No. 7. He explained that he had received backup from sport and commercial fishermen in upper Cook Inlet indicating that not enough is known about the production capacity of the Susitna River and its drainage. The $150.0 study should commence the informational effort. No objection having been raised, Amendment No. 7 was ADOPTED. Co-chair Pearce referenced language at pages 4 and 5 providing $5 million for an oil spill response ferry. She said that the House struck that language from its version of the legislation and instead funded the ferry from the mitigation account. She then queried members regarding retention in the Senate bill. Senator Kelly voiced his belief that the ferry would ultimately cost more than estimated. He then said he had no objection to leaving the funding in place. Senator Rieger directed attention to page 5, line 13, and inquired concerning the lapse date of December 1, 1994. Attorney General Cole said that the administration requested that the date be changed to December 1, 1999. That amendment was adopted by the House. Senator Rieger advised that he would support extension of the date but questioned whether it should extend to 1999. He then MOVED to change the lapse date stated at page 5, line 13, and page 5, line 16, from December 1, 1994, to December 1, 1997. Co-chair Pearce called for objections to Amendment No. 8. No objection having been raised, Amendment No. 8 was ADOPTED, and the lapse date was changed to December 1, 1997. Co-chair Pearce queried members on disposition of the bill. Senator Kelly MOVED that CSSB 183 (Finance) pass from committee with individual recommendations. No objection having been raised, CSSB 183 (Finance) was REPORTED OUT of committee. Co-chairs Pearce and Frank and Senators Kelly, Rieger, and Sharp signed the committee report with a "do pass" recommendation. Senator Kerttula signed "no rec." Senator Jacko was absent and did not sign. Attorney General Cole commented on publications indicating that he was embarrassed by the bill. He said that was not the case, and he voiced support for the legislation. He acknowledged that he was not present when all of the projects were formulated, but again voiced his support. RECESS Co-chair Pearce directed that the meeting be recessed, subject to a call of the Chair. The meeting was recessed at approximately 4:15 p.m.