HOUSE FINANCE COMMITTEE March 25, 1994 8:35 A.M. TAPE HFC 94 - 86, Side 2, #000 - end. TAPE HFC 94 - 87, Side 1, #000 - #599. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 8:35 A.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Foster Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Navarre was not present for the meeting. ALSO PRESENT Margot Knuth, Assistant Attorney General, Criminal Division, Department of Law; Jan Hansen, Director, Adult Public Assistance, Department of Health and Social Services; Cindy Smith, Director, Network on Domestic Violence, Juneau; Jerry Burnett, Staff, Senator Randy Phillips; David Rose, (Testified via teleconference), Financial Advisor, Alaska Permanent Capital Management Company, Anchorage; Robert L. Brean, (Testified via teleconference), Director, Rural Housing, Alaska Housing Finance Corporation, Anchorage. SUMMARY SB 45 An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date. SB 45 was HELD in Committee for further consideration. HB 409 An Act relating to the maximum amount of assistance that may be granted under the adult public assistance program and the program of aid to families with dependent children; proposing a special demonstration project within the program of aid to families with dependent children and directing the Department of Health and Social 1 Services to seek waivers from the federal government to implement the project; and providing for an effective date. CS HB 409 (FIN) was reported out of Committee with a "do pass" recommendation and with seven new fiscal impact notes by the Department of Health and Social Services and with three fiscal notes by the Department of Health and Social Services dated 3/04/94. HB 450 An Act relating to investment pools for public entities; and providing for an effective date. HB 450 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Community and Regional Affairs. HB 467 An Act relating to housing programs of the Alaska Housing Finance Corporation and of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing in the state's small communities. HB 467 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 3/16/94. CSSB 238(FIN) An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions. CS SB 238 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Office of the Governor dated 2/11/94. HOUSE BILL 409 "An Act relating to the maximum amount of assistance that may be granted under the adult public assistance program and the program of aid to families with dependent children; proposing a special demonstration project within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the project; and 2 providing for an effective date." JAN HANSEN, DIRECTOR, ADULT PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, described changes made to the proposed legislation by the House Finance Committee. When adding Fairbanks, the additional site increased administrative and child care costs for those people participating. She added that the changes made in the "workfare" requirement, deleting those participants with children three years of age and then only including those with children six years and older, would reduce child care costs. Representative Brown questioned if the Adult Public Assistance (APA) reduction would place low income participants in a situation of not being eligible for Medicaid. She asked how these persons would be affected by HB 409. Ms. Hansen replied that the changes to APA for a person with no income would be minimal and advised that the reduction was structured in such a way that those persons who could not receive APA payments would not lose Medicaid. Representative Hanley MOVED to report CS HB 409 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Hanley, Larson. OPPOSED: Hoffman, Brown, Grussendorf. Representatives Navarre, Foster and MacLean were not present for the vote. The MOTION FAILED (5-3). SENATE BILL 238 "An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions." Co-Chair Larson MOVED TO RESCIND previous action which failed to move CS SB 238 (FIN) out of Committee. There being NO OBJECTION, the action was rescinded. Representative Hanley MOVED to report CS SB 238 (FIN) out of 3 Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was adopted. CS SB 238 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Office of the Governor dated 2/11/94. HOUSE BILL 467 "An Act relating to housing programs of the Alaska Housing Finance Corporation and of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing in the state's small communities." Co-Chair MacLean explained that HB 467 would make changes to the Rural Loan Program of the Alaska Housing Finance Corporation (AHFC) in order to increase the availability of loan services and to encourage more investment in rural housing. She added that current law does not specifically authorize regional housing authorities to originate or service loans in areas where AHFC has a regional office. This action prevents housing authorities in Fairbanks, Kotzebue, Nome, Bethel, Dillingham and Juneau from generating and servicing loans for AHFC. Co-Chair MacLean advised that the bill would encourage greater investment in rural housing by allowing owner- occupants to finance up to four units in a complex and by allowing owners to inhabit larger rental complexes. HB 467 would also allow AHFC to increase its participation in projects with unusually high water and sewer installation costs without reducing the amount of the federal contribution to such projects. ROBERT BREAN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, RURAL HOUSING, ALASKA HOUSING FINANCE CORPORATION, ANCHORAGE, commented that AHFC supports HB 467 and sees it as a positive pro-active bill that would provide for flexibility and consideration of the rural housing programs providing service to rural Alaska. He pointed out the main points of the legislation: [Copy on file]. 1. The regional housing authorities statewide would be authorized through HB 467 to originate and service residential loans in small communities in their respective regions. The provision further empowers the regional housing authorities to provide service in their region with the support of AHFC. 4 2. AHFC's Rural Housing Programs would be authorized through HB 467 to increase the allowable match of the Housing and Urban Development Grants to the Regional Housing Authorities from 20% to 30% on a case by case basis. Presently, the Supplemental Housing Grant Program provides 20% match to HUD's total development cost of housing units in rural Alaska. This provision of the bill would allow a match to go up to 30% on a case by case basis for water and sewer features. 3. AHFC's Rural Housing Programs would be authorized through HB 467 to expand the definition of "rental housing" from eight units to sixteen units and allow the owner to occupy the complex in order to provide for on site operation, maintenance and protection of the development opportunities throughout rural Alaska. 4. AHFC's Rural Housing Programs would be authorized through HB 467 to expand the definition of "housing" to mean a dwelling containing up to four units as opposed to a dwelling containing up to two units. The definition allows for the enhancement of local economic development opportunities throughout rural Alaska. Mr. Brean stated that the program would not be a grant program, but would establish a loan program. Discussion followed among House Finance Committee members regarding the program and modifications of the word "rental", Page 4, Line 18. Mr. Brean stated that definition changes would be to rural residential housing and owner occupied housing. Representative Martin noted his concern with the low quality of the HUD homes built elsewhere in the United States. Mr. Brean advised that AHFC's Rural Loan Program must meet specific conditions as established by the national building code standards and added, that thermal standards must be met by any loan provided through AHFC. Discussion followed regarding "ownership" of large unit complexes and where that owner would be required to live during the owner occupied program. Representative Brown asked for further clarification of the "housing" language and the effect it would have. Representative Hanley pointed out that language would not include residence unless the residence is occupied by the owner. 5 Representative Martin questioned why it would be necessary to by-pass the traditional lender in favor of the regional housing authority. Mr. Brean responded that AHFC will work through local banks, however, there are some rural locations where banks are reluctant to build. He emphasized that AHFC is involved in all areas and there would not be a conflict between the banks and AHFC financing. (Tape Change, HFC 94-87, Side 1). Representative Hoffman MOVED to report HB 467 out of Committee with individual recommendations and with the accompanying fiscal note. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. OPPOSED: Martin. Representative Navarre was not present for the vote. The MOTION PASSED (9-1). HB 467 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 3/16/94. HOUSE BILL 409 "An Act relating to the maximum amount of assistance that may be granted under the adult public assistance program and the program of aid to families with dependent children; proposing a special demonstration project within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the project; and providing for an effective date." Representative Hanley MOVED TO RESCIND Committee action taken on failure to report CS HB 409 (FIN) out of Committee. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Hanley, Martin, Larson, MacLean. OPPOSED: Brown, Grussendorf, Hoffman. Representative Navarre was not present for the vote. 6 The MOTION PASSED (7-3). Representative Hanley MOVED to report CS HB 409 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Hoffman OBJECTED. Representative Grussendorf spoke against the legislation which would make cuts to areas not participating in the program. Representative Hoffman added that the funds for the program should have originated from general funds rather than being taken from those families with dependant children. He emphasized that the Association of Village Council Presidents spoke strongly against the legislation. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Hanley, Martin, MacLean, Larson. OPPOSED: Brown, Grussendorf, Hoffman. Representative Navarre was not present for the vote. The MOTION PASSED (7-3). CS HB 409 (FIN) was reported out of Committee with "do pass" recommendation and with seven fiscal notes by the Department of Health and Social Services and three fiscal notes by the Department of Health and Social Services dated 3/04/94. HOUSE BILL 450 "An Act relating to investment pools for public entities; and providing for an effective date." DAVID ROSE, (TESTIFIED VIA TELECONFERENCE), FINANCIAL ADVISOR, ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY, ANCHORAGE, stated that HB 450 would allow public entity investment pools a broader ranger of investment options to enhance their financial performance. Mr. Rose outlined the technical changes which had been coordinated with the Commissioner of Revenue. [Copy on file]. Representative Martin MOVED to report HB 450 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 450 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Community and Regional Affairs. SENATE BILL 45 7 "An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date." Representative Therriault reviewed the Subcommittee's work which deleted the working prohibition. Representative Hanley MOVED the work draft 8-LS0355\Q, Lauterbach, 3/23/94 as the version before the Committee. There being NO OBJECTION, it was adopted. Representative Hoffman referenced Page 6, Line 20, and MOVED to adopt a conceptual amendment, Amendment #1, which would leave in the language "[Take the minor to a nearby location agreed to be the minor and the legal custodian]". Discussion followed among Committee members regarding continued inclusion of the language. CINDY SMITH, DIRECTOR, NETWORK ON DOMESTIC VIOLENCE, JUNEAU, spoke in support of including the language regarding location of a minor agreed to by the minor and legal custodian. JERRY BURNETT, STAFF TO SENATOR RANDY PHILLIPS, remarked that the language was removed in the House Judiciary Committee. He added that the sponsor would agree to inclusion of the language. There being NO OBJECTION, Amendment #1 was adopted with the necessary language changes within the body of the bill to accomodate that change. Representative Hanley MOVED to adopt Amendment #2. [Copy on file]. MARGOT KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION, DEPARTMENT OF LAW, stated that the purpose of the amendment would help to solve an unreasonable constraint in dealing with juveniles who are in custody. She pointed out that the amendment would create an exception allowing a minor to ask that a parent, guardian or custodian not be notified and which would be treated as a right that a minor must exercise knowingly. Ms. Knuth questioned whose right it should be to talk to the police, the minor's right or the parent's right. The amendment recognizes that the minor should have the same ability as an adult regarding with whom they choose to speak with. She continued that there is not an age limitation provided in the legislation. Representative Brown MOVED to divide Amendment #2, whereas, 8 the changes proposed to Page 5, Line 1, would stand independent of the amendment. There being NO OBJECTION, it was divided. Representative Hanley MOVED to adopt Portion #1, Amendment Representative Hanley MOVED to adopt Portion #2, Amendment CS SB 45 (FIN) was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 10:00 A.M. HOUSE FINANCE COMMITTEE March 25, 1994 8:35 A.M. TAPE HFC 94 - 86, Side 2, #000 - end. TAPE HFC 94 - 87, Side 1, #000 - #599. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 8:35 A.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Foster Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Navarre was not present for the meeting. ALSO PRESENT Margot Knuth, Assistant Attorney General, Criminal Division, Department of Law; Jan Hansen, Director, Adult Public Assistance, Department of Health and Social Services; Cindy Smith, Director, Network on Domestic Violence, Juneau; Jerry Burnett, Staff, Senator Randy Phillips; David Rose, (Testified via teleconference), Financial Advisor, Alaska Permanent Capital Management Company, Anchorage; Robert L. Brean, (Testified via teleconference), Director, Rural Housing, Alaska Housing Finance Corporation, Anchorage. 9 SUMMARY SB 45 An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date. SB 45 was HELD in Committee for further consideration. HB 409 An Act relating to the maximum amount of assistance that may be granted under the adult public assistance program and the program of aid to families with dependent children; proposing a special demonstration project within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the project; and providing for an effective date. CS HB 409 (FIN) was reported out of Committee with a "do pass" recommendation and with seven new fiscal impact notes by the Department of Health and Social Services and with three fiscal notes by the Department of Health and Social Services dated 3/04/94. HB 450 An Act relating to investment pools for public entities; and providing for an effective date. HB 450 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Community and Regional Affairs. HB 467 An Act relating to housing programs of the Alaska Housing Finance Corporation and of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing in the state's small communities. HB 467 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 3/16/94. CSSB 238(FIN) An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for 10 compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions. CS SB 238 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Office of the Governor dated 2/11/94. HOUSE BILL 409 "An Act relating to the maximum amount of assistance that may be granted under the adult public assistance program and the program of aid to families with dependent children; proposing a special demonstration project within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the project; and providing for an effective date." JAN HANSEN, DIRECTOR, ADULT PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, described changes made to the proposed legislation by the House Finance Committee. When adding Fairbanks, the additional site increased administrative and child care costs for those people participating. She added that the changes made in the "workfare" requirement, deleting those participants with children three years of age and then only including those with children six years and older, would reduce child care costs. Representative Brown questioned if the Adult Public Assistance (APA) reduction would place low income participants in a situation of not being eligible for Medicaid. She asked how these persons would be affected by HB 409. Ms. Hansen replied that the changes to APA for a person with no income would be minimal and advised that the reduction was structured in such a way that those persons who could not receive APA payments would not lose Medicaid. Representative Hanley MOVED to report CS HB 409 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Hanley, Larson. OPPOSED: Hoffman, Brown, Grussendorf. Representatives Navarre, Foster and MacLean were not present 11 for the vote. The MOTION FAILED (5-3). SENATE BILL 238 "An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions." Co-Chair Larson MOVED TO RESCIND previous action which failed to move CS SB 238 (FIN) out of Committee. There being NO OBJECTION, the action was rescinded. Representative Hanley MOVED to report CS SB 238 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was adopted. CS SB 238 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Office of the Governor dated 2/11/94. HOUSE BILL 467 "An Act relating to housing programs of the Alaska Housing Finance Corporation and of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing in the state's small communities." Co-Chair MacLean explained that HB 467 would make changes to the Rural Loan Program of the Alaska Housing Finance Corporation (AHFC) in order to increase the availability of loan services and to encourage more investment in rural housing. She added that current law does not specifically authorize regional housing authorities to originate or service loans in areas where AHFC has a regional office. This action prevents housing authorities in Fairbanks, Kotzebue, Nome, Bethel, Dillingham and Juneau from generating and servicing loans for AHFC. Co-Chair MacLean advised that the bill would encourage greater investment in rural housing by allowing owner- occupants to finance up to four units in a complex and by allowing owners to inhabit larger rental complexes. HB 467 would also allow AHFC to increase its participation in projects with unusually high water and sewer installation 12 costs without reducing the amount of the federal contribution to such projects. ROBERT BREAN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, RURAL HOUSING, ALASKA HOUSING FINANCE CORPORATION, ANCHORAGE, commented that AHFC supports HB 467 and sees it as a positive pro-active bill that would provide for flexibility and consideration of the rural housing programs providing service to rural Alaska. He pointed out the main points of the legislation: [Copy on file]. 1. The regional housing authorities statewide would be authorized through HB 467 to originate and service residential loans in small communities in their respective regions. The provision further empowers the regional housing authorities to provide service in their region with the support of AHFC. 2. AHFC's Rural Housing Programs would be authorized through HB 467 to increase the allowable match of the Housing and Urban Development Grants to the Regional Housing Authorities from 20% to 30% on a case by case basis. Presently, the Supplemental Housing Grant Program provides 20% match to HUD's total development cost of housing units in rural Alaska. This provision of the bill would allow a match to go up to 30% on a case by case basis for water and sewer features. 3. AHFC's Rural Housing Programs would be authorized through HB 467 to expand the definition of "rental housing" from eight units to sixteen units and allow the owner to occupy the complex in order to provide for on site operation, maintenance and protection of the development opportunities throughout rural Alaska. 4. AHFC's Rural Housing Programs would be authorized through HB 467 to expand the definition of "housing" to mean a dwelling containing up to four units as opposed to a dwelling containing up to two units. The definition allows for the enhancement of local economic development opportunities throughout rural Alaska. Mr. Brean stated that the program would not be a grant program, but would establish a loan program. Discussion followed among House Finance Committee members regarding the program and modifications of the word "rental", Page 4, Line 18. Mr. Brean stated that definition changes would be to rural residential housing and owner occupied housing. 13 Representative Martin noted his concern with the low quality of the HUD homes built elsewhere in the United States. Mr. Brean advised that AHFC's Rural Loan Program must meet specific conditions as established by the national building code standards and added, that thermal standards must be met by any loan provided through AHFC. Discussion followed regarding "ownership" of large unit complexes and where that owner would be required to live during the owner occupied program. Representative Brown asked for further clarification of the "housing" language and the effect it would have. Representative Hanley pointed out that language would not include residence unless the residence is occupied by the owner. Representative Martin questioned why it would be necessary to by-pass the traditional lender in favor of the regional housing authority. Mr. Brean responded that AHFC will work through local banks, however, there are some rural locations where banks are reluctant to build. He emphasized that AHFC is involved in all areas and there would not be a conflict between the banks and AHFC financing. (Tape Change, HFC 94-87, Side 1). Representative Hoffman MOVED to report HB 467 out of Committee with individual recommendations and with the accompanying fiscal note. Representative Martin OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. OPPOSED: Martin. Representative Navarre was not present for the vote. The MOTION PASSED (9-1). HB 467 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Revenue dated 3/16/94. HOUSE BILL 409 "An Act relating to the maximum amount of assistance that may be granted under the adult public assistance program and the program of aid to families with 14 dependent children; proposing a special demonstration project within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the project; and providing for an effective date." Representative Hanley MOVED TO RESCIND Committee action taken on failure to report CS HB 409 (FIN) out of Committee. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Hanley, Martin, Larson, MacLean. OPPOSED: Brown, Grussendorf, Hoffman. Representative Navarre was not present for the vote. The MOTION PASSED (7-3). Representative Hanley MOVED to report CS HB 409 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Hoffman OBJECTED. Representative Grussendorf spoke against the legislation which would make cuts to areas not participating in the program. Representative Hoffman added that the funds for the program should have originated from general funds rather than being taken from those families with dependant children. He emphasized that the Association of Village Council Presidents spoke strongly against the legislation. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Hanley, Martin, MacLean, Larson. OPPOSED: Brown, Grussendorf, Hoffman. Representative Navarre was not present for the vote. The MOTION PASSED (7-3). CS HB 409 (FIN) was reported out of Committee with "do pass" recommendation and with seven fiscal notes by the Department of Health and Social Services and three fiscal notes by the Department of Health and Social Services dated 3/04/94. HOUSE BILL 450 "An Act relating to investment pools for public entities; and providing for an effective date." 15 DAVID ROSE, (TESTIFIED VIA TELECONFERENCE), FINANCIAL ADVISOR, ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY, ANCHORAGE, stated that HB 450 would allow public entity investment pools a broader ranger of investment options to enhance their financial performance. Mr. Rose outlined the technical changes which had been coordinated with the Commissioner of Revenue. [Copy on file]. Representative Martin MOVED to report HB 450 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 450 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Community and Regional Affairs. SENATE BILL 45 "An Act relating to persons under 21 years of age; providing for designation of `safe homes' for runaway minors; and providing for an effective date." Representative Therriault reviewed the Subcommittee's work which deleted the working prohibition. Representative Hanley MOVED the work draft 8-LS0355\Q, Lauterbach, 3/23/94 as the version before the Committee. There being NO OBJECTION, it was adopted. Representative Hoffman referenced Page 6, Line 20, and MOVED to adopt a conceptual amendment, Amendment #1, which would leave in the language "[Take the minor to a nearby location agreed to be the minor and the legal custodian]". Discussion followed among Committee members regarding continued inclusion of the language. CINDY SMITH, DIRECTOR, NETWORK ON DOMESTIC VIOLENCE, JUNEAU, spoke in support of including the language regarding location of a minor agreed to by the minor and legal custodian. JERRY BURNETT, STAFF TO SENATOR RANDY PHILLIPS, remarked that the language was removed in the House Judiciary Committee. He added that the sponsor would agree to inclusion of the language. There being NO OBJECTION, Amendment #1 was adopted with the necessary language changes within the body of the bill to accomodate that change. Representative Hanley MOVED to adopt Amendment #2. [Copy on file]. 16 MARGOT KNUTH, ASSISTANT ATTORNEY GENERAL, CRIMINAL DIVISION, DEPARTMENT OF LAW, stated that the purpose of the amendment would help to solve an unreasonable constraint in dealing with juveniles who are in custody. She pointed out that the amendment would create an exception allowing a minor to ask that a parent, guardian or custodian not be notified and which would be treated as a right that a minor must exercise knowingly. Ms. Knuth questioned whose right it should be to talk to the police, the minor's right or the parent's right. The amendment recognizes that the minor should have the same ability as an adult regarding with whom they choose to speak with. She continued that there is not an age limitation provided in the legislation. Representative Brown MOVED to divide Amendment #2, whereas, the changes proposed to Page 5, Line 1, would stand independent of the amendment. There being NO OBJECTION, it was divided. Representative Hanley MOVED to adopt Portion #1, Amendment Representative Hanley MOVED to adopt Portion #2, Amendment CS SB 45 (FIN) was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 10:00 A.M. 17