HOUSE FINANCE COMMITTEE February 17, 1994 1:30 a.m. TAPE HFC 94-36, Side 1, #000 - end. TAPE HFC 94-36, Side 2, #000 - end. TAPE HFC 94-37, Side 1, #000 - 390. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:30 p.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representatives Therriault and Grussendorf were not present for the meeting. ALSO PRESENT Representative Brian Porter; Representative Harley Olberg; Margot Knuth, Criminal Division, Department of Law; Karen Crane, Director, Libraries, Archives and Museums, Department of Education; George Dozier, Staff, Representative Pete Kott; Gary Williams, City Manager, City of Whittier; Helen Barrett, Alaska anchorage School of Education; Sally Rue, Juneau Board of Education; Skip Via, Teacher, Fairbanks; Jim Schaeffer, Bethel; Donna Peterson, Nikiski; Gary Hynes, Anchorage Cable Company, Zachary Via, Student, Fairbanks; Jessie Noah, Student, Fairbanks. SUMMARY INFORMATION HB 106 "An Act establishing the Alaska education technology program; and providing for an effective date." CSHB 106 (FIN) was reported out of Committee with individual recommendations and with three fiscal impact notes, two by the Department of Education, and one by the Department of Revenue. HB 313 "An Act relating to suspended imposition of 1 criminal sentences and to the period in which suspension of the imposition of sentence for conviction of the crime of disorderly conduct may be authorized." CSHB 313 (JUD) was reported out of Committee with a "do pass" recommendation and with six zero fiscal notes published 2/9/94, two by the Department of Administration, one by the Department of Law, one by the Department of Public Safety, one by the Department of Corrections, and one by the Alaska Court System. HB 315 "An Act relating to the unauthorized use of or unauthorized interference with transmission and delivery of subscription cable services; and amending the definition of the offense of theft of services and the penalties for its violation." CSHB 315 (JUD) was reported out of Committee with a "do pass" recommendation and with three zero fiscal notes, two by the Department of Administration, published 2/2/94 and one by the Department of Law. HB 397 "An Act relating to the power to levy property taxes in second class cities." SSHB 397 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Community and Regional Affairs, published 2/4/94. HOUSE BILL NO. 315 "An Act relating to the unauthorized use of or unauthorized interference with transmission and delivery of subscription cable services; and amending the definition of the offense of theft of services and the penalties for its violation." REPRESENTATIVE BRIAN PORTER asserted that CSHB 315 (JUD) "fills a hole in existing criminal statute within the State of Alaska." He explained that CSHB 315 (JUD) will allow the illegal interception and use of cable transmissions to be controlled. He asserted that current law does not deal appropriately with the theft of cable transmissions. Two levels of sanctions are created by CSHB 315 (JUD). Those that intentionally use the services of illegal apparatus to capture an unauthorized transmission could be found guilty of a Class A misdemeanor. Individuals who manufacture, sell or distribute illegal devices would be charged with a class 2 C felony. He stressed that the legislation is especially important in Alaska due to the small population base. In response to a question by Co-Chair MacLean, Representative Porter clarified that a misdemeanor offense carries less than a year penalty. MARGOT KNUTH, CRIMINAL DIVISION, DEPARTMENT OF LAW stressed that CSHB 315 (JUD) gives a value to the theft of cable services. Theft in the third degree is applicable if the value of the property taken is between $50 and $500 dollars. She observed that the legislation would place the value of the theft of subscription cable serves at between $50 and $500 dollars, making it a third degree theft. She suggested that it would be likely that the theft of cable services will have occurred over several months. However, it would be difficult to prove that the duration of the theft was more than a month. A month of cable subscription would be less than $50. Ms. Knuth explained that the class C felony offense or second degree theft offense would apply to those who knowingly distribute equipment which allows the theft to occur. She noted that other class C felonies include the theft of a firearm, taking property from the person of another and taking property from a vessel or aircraft. In response to a question by Representative Parnell, Ms. Knuth clarified that it must be demonstrated that the device is possessed "for the purpose of intercepting, receiving, or using a program or other service carried by the subscription cable system". Representative Hoffman asked if those acquiring cable services illegally were required to pay for the service if reduced rates to subscribers would result. Representative Porter stressed that cable companies must maximize subscriptions in order to offer services in rural Alaska. GARY HYNES, PRIME CABLE, ANCHORAGE emphasized that capital is needed to expand services into rural areas. In response to a question by Representative Navarre, Representative Porter explained that satellite dishes would not be covered by the legislation. Co-Chair MacLean MOVED to report CSHB 315 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 315 (JUD) was reported out of Committee with a "do 3 pass" recommendation and with three zero fiscal notes, two by the Department of Administration, published 2/2/94 and one by the Department of Law. HOUSE BILL NO. 313 "An Act relating to suspended imposition of criminal sentences and to the period in which suspension of the imposition of sentence for conviction of the crime of disorderly conduct may be authorized." GEORGE DOZIER, STAFF, REPRESENTATIVE PETE KOTT summarized CSHB 313 (JUD). He noted that the legislation amends AS 12.55.085(a). This section grants authority to the court to bestow a suspended imposition of sentence in criminal cases. He noted that aN individual found guilty of violating a criminal conviction could be put on probation under a suspended imposition of sentence. If the individual complies with all the terms and conditions of their probation, sentence is not imposed and the underlying judgement is vacated. He explained that the suspended imposition of sentence (SIS) is generally employed for offenses that are not of a serious or grave nature. He observed that SIS's commonly involve youthful offenders. The SIS is limited to the length of time that the person could receive as jail time for the crime, under current law. He noted that some class B misdemeanors are limited to 10 - 90 days of jail time. He maintained that the 10 - 90 days is not sufficient for the offender to be observed during suspended imposition of sentence. The legislation would allow the SIS to be equal to the amount of time a person could be sentenced to jail or up to one year, whichever is the greater amount. He noted that only class B misdemeanors would be effected. Representative Navarre asked if there would be a fiscal impact if the probation is increased. Mr. Dozier explained that the probation does not include active monitoring of the offender. At the end of the probation period the offender's file is consulted and if no petitions for revocations have been filed the judgement is vacated. In response to a question by Co-Chair MacLean, Mr. Dozier explained that if an offender commits a violation while on SIS the court has the ability to revoke probation and impose the original sentence. Ms. Knuth observed that the Department of Law, Department of Corrections and Alaska Court System all support the legislation. She maintained that CSHB 313 (JUD) allows courts to use SIS in more cases. She noted that the court 4 is not entering SIS's in cases currently due to the short period of probation. She anticipated that more SIS's will be issued if the legislation is passed. She emphasized that the records of offenders will be vacated if they have complied with the conditions of their probation. She expounded that the court has requested that SIS's be expanded to a one year period. In response to a question by Representative Martin, Ms. Knuth clarified that Alaska statute addresses which cases can be granted a SIS. She noted that SIS's cannot be issued for sexual offenses. Co-Chair MacLean MOVED to report CSHB 313 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 313 (JUD) was reported out of Committee with a "do pass" recommendation and with six zero fiscal notes published 2/9/94, two by the Department of Administration, one by the Department of Law, one by the Department of Public Safety, one by the Department of Corrections, and one by the Alaska Court System. HOUSE BILL NO. 397 "An Act relating to the power to levy property taxes in second class cities. REPRESENTATIVE HARLEY OLBERG noted that SSHB 397 was requested by the City of Whittier. He explained that SSHB 397 would place second class cities at the same level as first class cities and home rule cities in statute with regards to their taxing ability. This would allow second class cities to raise additional revenues. He noted that second class cities are facing reductions in state shared funding sources. Representative Hanley asked if formulas for revenue sharing (RS) or municipal assistance (MA) would be effected. Representative Olberg did not believe revenue sharing or municipal assistance would be effected. Representative Hanley questioned if educational powers of cities would be effected. Mr. Olberg stressed that second class cities would be on an equal footing with first class and home rule cities in regards to their ability to tax. Statutes regarding the requirement of first class and home rule cities to provide education would not be effected. Representative Hanley expressed concern that second class 5 cities would be allowed to tax to the level of first class cities but would not be allowed to take over education responsibilities. Representative Olberg reiterated that there is no intention to impact statutes regarding education. Representative Navarre commented that revenue sharing would be impacted since it is based on local tax effort. He added that the impact would not be significant. Representative Hanley noted that AS 29.35.260 states that a "second class city outside a borough is not a school district and may not establish a system of public schools." Representative Martin stressed that increased revenues of second class cities would allow resolution of more community problems. GARY WILLIAMS, CITY OF WHITTIER testified in support of SSHB 397. He emphasized that there are 117 second class cities in Alaska. He observed that second class cities are dependent on outside revenue sources such as municipal assistance and revenue sharing. Mr. Williams pointed out that the assessed value of real property in Whittier is $33.5 million dollars. After state allowed exemptions are deducted the taxable assessed value is only $8.3 million dollars. He noted that the Alaska Railroad owns 60 percent of the land in Whittier and is exempt from paying city tax. At 5 mills the city of Whittier can only raise $40.0 thousand dollars on assessed property value. He asserted that: "It is inappropriate to tie a knot in the shared revenue stream and yet expect second class cities to not only survive but to be actively involved in developing local economies." He observed that the Whittier City Council is in unanimous support of SSHB 397. Representative Hoffman spoke in support of SSHB 397. He emphasized that second class cities have grown accustomed to receiving state support through RS and MA. He stressed that some second class cities do not collect taxes due to the inability to administer the paper work involved in collection of taxes. He asserted that services will be diminished if a revenue source is not provided to substitute for lost state support. (Tape Change, HFC 94-36, Side 2) Representative Foster MOVED to report SSHB 397 out of Committee with individual recommendations and with the accompanying fiscal note. 6 Representative Navarre OBJECTED for purpose of discussion. He expressed support for the legislation's intent but suggested that a better method might be found. Mr. Williams clarified, in response to a question by Co- Chair Larson, that the city of Whittier's accessed value is reduced by the ownership of exempted railroad land and facilities. Co-Chair Larson reiterated the motion to report SSHB 397 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SSHB 397 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Community and Regional Affairs, published 2/4/94. HOUSE BILL NO. 106 "An Act establishing the Alaska education technology program; and providing for an effective date." Representative Brown noted that CSHB 106 (JUD) would create the Alaska Education Technology Program. She observe that similar legislation was passed by the House during the previous legislature. She stressed the need of education technology. KAREN CRANE, DIRECTOR, LIBRARIES, ARCHIVES AND MUSEUMS, DEPARTMENT OF EDUCATION spoke in support of CSHB 106 (JUD). She noted that most Alaskans cannot access information that is currently available. She asserted that the telecommunications network must be available to all Alaskans, the hardware must be available to access the network and that training be available. She maintained that schools and libraries will be able to open up the "information highway" to students and citizens, and provide training. Co-Chair Larson questioned if training for education technology could be provided as part of a teacher's recertification. Ms. Crane could not answer. Ms. Crane anticipated that the legislation would help to bridge discrepancies which exist between the resources available in urban and rural areas. She described the SLED program being offered through the University of Alaska, Fairbanks. In response to a question by Representative Parnell, Ms. 7 Crane discussed the Department's fiscal note. She observed that the greatest cost to the Department will be for training. She explained that the Department will add a position to an existing position to provide training. The two training positions will receive clerical support by the requested clerical position. Contractual money will be spent on a statewide plan for automation. Contractual money in subsequent years would be spent on training in rural areas. She explained that training may be done by video or on-line. Ms. Crane explained that only 13 or 14 of the 100 library positions are professional librarians. She noted that the Department would attempt to absorb administration costs with current staff. Representative Brown expounded that CSHB 106 (JUD) envisions the creation of the Education Technology Fund that would provide matching money for school districts and libraries to implement locally prepared plans. She observed that HB 107 would propose a general obligation bond issue. She observed that the fiscal note from the Department of Revenue would not be applicable if the fund is not created. She maintained that CSHB 106 (JUD) would allow the coordination of resources and a planned approach for sharing information that exists. She stressed the advantages of passing CSHB 106 (JUD) separate from HB 107. JIM SCHAEFFER, COORDINATOR, DISTANCE DELIVER CONSORTIUM testified via the teleconference network from Bethel. He noted that the Consortium is composed of four school districts, the Yukon-Kuskokwim Health Corporation, University of Alaska, Kuskokwim and KYUP Public Radio and Television. Mr. Schaeffer stressed that through their cooperative agreement agencies are able to deliver training to rural areas. He noted that teachers can receive in service training without leaving the villages. He stressed the importance of electronic mail. He maintained that planning will allow economies of scale not otherwise possible. DONNA PETERSON, PRINCIPLE, NORTH STAR ELEMENTARY testified via the teleconference network from Nikiski. She noted that a technological focus was implemented when the school opened seven years ago. There is a four to one computer ratio in the school. She asserted that the advantages to the students are "legendary". She maintained that second graders have mastered division through the use of computers. She maintained that two weeks of math classes can be accomplished in a half hour lab. She observed that class size has been reduced by utilizing para-professionals to man 8 labs. She emphasized the improvement of writing skills through the use of education technology. HELEN BARRETT, ALASKA ANCHORAGE SCHOOL OF EDUCATION testified via the teleconference network from Anchorage. She testified in support of CSHB 106 (JUD). She asserted that the changes in applications of technology to education have been dramatic over the past ten years. She noted that the finding of a 1993 Department of Education study stated that, "the greatest need of Alaska schools was for training teachers and administrators to use the existing technology." She discussed the University of Alaska programs. (Ms. Barrett's written comments are on file with the House Finance Committee). SKIP VIA, ELEMENTARY TEACHER, FAIRBANKS testified via the teleconference network from Fairbanks. He expressed the desire to apply for funds for educational technology. He emphasized that schools should reflect the emergence of world communication and education technology. ZACHARY VIA, FOURTH GRADE STUDENT, FAIRBANKS testified via the teleconference network from Fairbanks. He stated that he would "die without technology." He asserted that he survives on technology. JESSIE NOAH, FOURTH GRADE STUDENT, FAIRBANKS testified via the teleconference network from Fairbanks in support of CSHB 106 (JUD). Mr. Skip Via emphasized that computers allow students to progress at their own rate and to learn independently. SALLY RUE, JUNEAU testified in support of CSHB 106 (JUD). She noted that Juneau passed a $1.9 million dollar bond proposition by 66 percent of the vote in 1993. She asserted that education technology helps children learn and gives teachers an effective tool to help meet the diverse needs of children within the classroom. She added that children have different learning styles. She maintained that computers can provide motivation, challenges at different learning levels, meet the needs of at risk students, integrate students with disabilities into the classrooms, and increase reading and writing skills in a non-judgmental way. Ms. Rue noted that at the middle school level, technology provides access to resources and communications that bring real world issues into the classroom. She observed that at all levels technology can bring a vast array of resource materials. Ms. Rue stressed that CSHB 106 (JUD) takes into account that 9 school districts have differing capacity for local bonding and requires local participation. Ms. Rue added that the legislation is tied to educational goals. (Tape Change, HFC 94-37, Side 1) Ms. Rue added that CSHB 106 (JUD) provides comprehensive planning of technology and teacher training. Representative Brown reiterated her intent to move CSHB 106 (JUD) in the absence of legislation to capitalize the fund. Representative Brown noted that the effective date should be 1994. She MOVED to delete "1993" and insert "1994" on page 9, line 15. There being NO OBJECTION, it was so ordered. In response to a question by Co-Chair MacLean, Representative Brown referred to the findings of the Alaska Instructional Technology Survey, April 1993 by the Department of Education (copy on file). She noted that 80 percent of the superintendents that responded said that implementation of educational technology is a medium high or high priority. She stressed that the legislation will address the growing disparity between schools. Ms. Crane clarified that the Commissioner of the Department of Education supports CSHB 106 (JUD). Representative Parnell expressed support for the legislation. He observed the disparity between schools in his district. Representative Brown noted that it is difficult to retrofit buildings. She discussed other reasons for the disparities that exist between schools and school districts in regards to educational technology. Representative Brown observed that a matching requirement was included in the legislation to assure local commitment. Representative Navarre noted the lack of a coordinated effort. He observed that some equipment is included with new school construction. He stressed that old schools have difficulty finding room in their budgets for additional items. He noted that class size can be reduced through the use of educational technology. Representative Martin referred to the fiscal note by the Department of Education. Ms. Crane noted that funding for the Education Technology Committee's travel and per diem is included in the Department of Education's fiscal note. Representative Brown reiterated that the Department of 10 Revenue's fiscal note will not be needed unless the appropriation to capitalize the fund is approved. Representative Brown MOVED to report CSHB 106 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 106 (FIN) was reported out of Committee with individual recommendations and with three fiscal impact notes, two by the Department of Education, and one by the Department of Revenue. ADJOURNMENT The meeting adjourned at 3:29 p.m. 11