HOUSE FINANCE COMMITTEE February 27, 1996 1:38 P.M. TAPE HFC 96-51, Side 1, #000 - end. TAPE HFC 96-51, Side 2, #000 - end. TAPE HFC 96-52, Side 1, #000 - end. TAPE HFC 96-52, Side 2, #000 - 283. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 1:38 PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Kelly Representative Parnell Representative Kohring Representative Therriault Representative Grussendorf was absent from the meeting. ALSO PRESENT Representative Scott Ogan; Representative Carl Moses; Senator Dave Donley; Senator Robin Taylor; Tom Boutin, Division of Forestry, Department of Natural Resources; Nico Bus, Acting Director, Support Services Division, Department of Natural Resources; Anne Carpeneti, Assistant Attorney General, Criminal Division, Department of Law; Chris Christensen, Staff Counsel, Alaska Court System; Juanita Hensley, Chief Driver Services, Division of Motor Vehicles, Department of Public Safety; Tim Rogers, Legislative Program Coordinator, Municipality of Anchorage; Dave Harbour, Anchorage Parking Authority; Bob Allen, Anchorage; Jay Dulaney, Director, Division of Motor Vehicles, Department of Motor Vehicles, Department of Public Safety; Dean Brown, Deputy Director, Division of Forestry, Department of Natural Resources; Tom Smith, City Manager, City of Palmer. SUMMARY HB 352 An Act giving notice of and approving a lease-purchase agreement with the City of Palmer for a fire management facility at the Palmer Airport. 1 HB 352 was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Revenue, dated 2/2/96; and with a zero fiscal note by the Department of Transportation and Public Facilities, dated 2/2/96. HB 466 An Act establishing the Adak Reuse Authority. HB 466 was assigned to a subcommittee consisting of Chair Foster as Chair and Representatives Grussendorf and Kelly. SB 6 An Act relating to registration of a motor vehicle and suspension of a driver's license for failure to appear in court or failure to pay a fine. HCS CSSB 6 (CRA) was reported out of Committee with a "do pass" recommendation and with four fiscal impact notes; two by the Department of Public Safety; one by the Alaska Court System; and one by the Department of Corrections. ALCOHOLIC BEVERAGE CONTROL BOARD Co-Chair Hanley noted that the Committee had received and reviewed the Governor's appointments to the Alcoholic Beverage Control Board. The Governor has appointed: Evely Beeter - Chistochina Bert L Cottle - Valdez Ellen L. Ganley - Fairbanks Robert J. Klein - Anchorage Co-Chair Hanley asked if any members of the House Finance Committee wished to raise objections or interview the appointees. No members expressed the desire to interview appointees or raised objections. There being NO OBJECTION, the House Finance Committee recommends that the appointments be forwarded to a joint session for consideration. Co-Chair Hanley noted that the recommendation does not reflect an intent by any or the members to vote for or against an appointment. HOUSE BILL NO. 352 "An Act giving notice of and approving a lease-purchase agreement with the City of Palmer for a fire management facility at the Palmer Airport." REPRESENTATIVE SCOTT OGAN, sponsor HB 352, testified in support of the legislation. He noted that HB 352 would 2 provide authorization for a lease-purchase agreement with the City of Palmer to finance and build a Department of Natural Resources fire management facility at the Palmer Airport. He asserted that the agreement will save the State $282.0 thousand dollars a year. He stressed that the State will save $8.5 million dollars over 20 years. He observed that the new facility would consolidate four wildland fire facilities in the area of the Palmer Airport. He observed that the Department of Natural Resources' flight operations are currently run from a lease space at the Palmer Airport. The administrative operations are coordinated in Anchorage. Warehouse support is provided in Eagle River. Additional administrative and warehousing activities occur at Big Lake. He asserted that the legislation will make wildland fire fighting response time more efficient. He explained that materials are transported from the warehouse in Eagle River to the Palmer Airport. He noted that response time effects the level of fire support needed. He observed that the Governor's Budget Summary recognizes that the project will save the Department of Natural Resources money. The State would own the facility at the end of the agreement. Representative Ogan stressed that the City of Palmer has an airport and undeveloped land available. The runway at the Palmer Airport is long enough to operate fire support planes. He emphasized that air traffic at the Palmer Airport is less than at the Anchorage International Airport. He maintained that the Palmer Airport is centrally located. He added that Palmer also has community services and commercial support options available. He observed that the City of Palmer supports the project. Representative Brown questioned how the project will improve access. Representative Ogan observed that burning permits would be transferred from Big Lake to Palmer. Representative Brown questioned what services are located in the Anchorage Frontier Building that would be moved to Palmer. TOM BOUTIN, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF NATURAL RESOURCES replied that 4,200 square feet for wildland fire logistics would be transferred. He noted that the Urban and Community Forestry Program, Support Services, Forest Stewardship and Resource Management Program will remain in the Frontier Building. He clarified that Wildland Fire Logistics would be the only function transferred. Representative Brown asked why the legislation was not introduced by the Governor. Mr. Boutin noted that the legislation had already been introduced. He emphasized that the Commissioner of the Department of Natural Resources strongly supports the project. 3 Representative Brown noted that the Department has pursued a policy of letting fires burn. Mr. Boutin agreed that the majority of land under state protection is in the let burn category. He added that due to suburban sprawl the percentage of land in the let burn category is at the maximum. In response to a question by Representative Brown, Mr. Boutin clarified that AS 41.15 requires the State to perform fire suppression on state, municipal and private land. He noted that the federal government reimburses the State for fires fought on federal land and on Alaska Native Claims Settlement Act lands. He noted that the 56 fire districts around the State act under a cooperative agreement. DEAN BROWN, DEPUTY DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF NATURAL RESOURCES clarified that the Division responds to wildland fires within the Municipality of Anchorage. The Division does not respond to structure protection unless a structure is threatened by an out growth of a wildland fire. The Division does not respond to house fires. Representative Brown questioned if fees for services have been considered. Ms. Brown stated that they have not considered instituting user fees. Representative Brown asked if the City of Palmer is available to bond for the facility. Mr. Boutin noted that financing would be identical to the lease financing obligation used to build the Palmer Courthouse. Representative Brown suggested that most of the economic benefit goes to the City of Palmer. She expressed concern over the number of lease purchase agreements the State has acquired. Mr. Boutin observed that lease purchases for real estate are located in the front section of the operating budget. Representative Parnell asked if the State currently owns other facilities used by the Division. Mr. Boutin observed that the Eagle River facility is a portable warehouse that could be moved or used by other agencies. It is on state land. The Big Lake facility is state owned and is on state land. He observed that the Department will not be out of the lease space in the Frontier Building until the end of the current rental agreement. The lease will expire in July, 1999. The State could rent the space for another agency. Representative Parnell questioned if the savings would be to the State or to the Department only. Mr. Boutin argued that there will be a savings to the State. He added that materials are transported back and forth from Eagle River to Palmer. Representative Ogan noted that other agencies are interested in the Eagle River facility. 4 Representative Parnell questioned if there would be a savings to the State to build the facility with state funds. Mr. Boutin noted that the true interest cost would be tax free at approximately 5 percent. The state general fund is invested at a taxable yield. He added that there is arbitrage every time the State enters into a tax exempt obligation. Representative Therriault noted that the let burn policy is based on the decision that there are benefits to letting some areas burn. He pointed out that the policy is not necessarily driven by the budget. He added that fees would be difficult to administer and could have adverse effects on fire suppression efforts. Representative Navarre noted the Majority's budget plan calls for significant reductions in the operating budget. He suggested that it is premature to consider the project authorization until the impact of reductions is seen. He stated that the project does not appear to be a bad idea. He asked what kinds of needs assessments are being done. He maintained that today's assumptions will not hold true over time. Representative Brown referred to backup material provided to the Committee by the Department of Natural Resources, "South Zone Facilities Consolidation, Proposed Lease Finance at Palmer Airport (copy on file). Brown noted that the FY 99 savings is shown at $24.8 thousand dollars. Mr. Boutin explained that the on going annual facility savings is estimated at $282.9 thousand dollars. There will be an additional one time savings of $24.8 thousand dollar in FY 99. Ms. Brown explained that the transfer would occur in phases transfer due to the seasonal nature of the fire season. NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES clarified that the savings in FY 99 will occur as the Department partially vacates the office space at the Frontier Building. He explained that General Services can move other positions into the space as they are vacated before the lease expires. As positions are transferred other rental space can be cancelled as leases expire. Representative Brown noted that the Department stated that the cost of underground fuel storage tank replacements will be mitigated by the move. Ms. Brown explained that the move to Palmer will allow the Department to use available commercial facilities for fuel storage. The Department would no longer need to use underground oil tanks located at 5 the Big Lake facility. These tanks would need to be replaced if their use was continued. TOM SMITH, CITY MANAGER, CITY OF PALMER testified via the teleconference network. He observed that the City of Palmer passed Resolution No. 1049 in support of the Forestry Consolidation Project at the Palmer Municipal Airport. Ms. Brown reviewed charts provided to the Committee. She noted that 80 percent of fires are caused by humans. She noted that the Department's operations are spread between five locations. She emphasized that if the Department can catch a fire when it is small that the cost is minimal. She stressed that a project fire can cost the State $2.0 million dollars or more. She emphasized that consolidation will decrease response time and increase safety. She pointed out that there are 30 miles between the Eagle River facility and the Palmer Airport. (Tape Change, HFC 96-51, Side 2) Ms. Brown noted that basic public services would be maintained in Anchorage. The central office which houses all the federal programs and urban and community forestry will remain in the Frontier Building. She stressed that expenses associated with large project fires can be reduced through greater efficiencies. She observed that population has increased in areas that are not readily accessible by road. Co-Chair Foster MOVED to report HB 352 out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 352 was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Revenue, dated 2/2/96; and with a zero fiscal note by the Department of Transportation and Public Facilities, dated 2/2/96. Representative Navarre OBJECTED for purpose of discussion. He questioned where the debt service on the project fits into the Majority's overall plan and with the impact of budget cuts. Representative Navarre WITHDREW his objections. Representative Brown OBJECTED for purpose of discussion. Co-Chair Hanley stressed that the State will always have fire fighting capability. He asked how current costs will be financed if consolidation does not take effect. He stressed that consolidation will save money over time. 6 Representative Navarre questioned if consolidation will result in savings. Mr. Boutin stated that the numbers show both a future value and a discounted net present value savings. He emphasized that the State will own the building at the end of the lease. Representative Navarre argued that reductions in the budget could result in deferred maintenance. He emphasized that deferred maintenance could result in the failure of the building before projected savings can be realized. He stressed that any budget plan must build in the project's cost over the next 20 years. Representative Brown WITHDREW her objection. Representative Kohring observed that savings will be realized by increased efficiencies and improvements in response time. Representative Brown asked how the $6.0 million dollar construction cost will be financed. Mr. Boutin noted that the City of Palmer will issue a lease obligation. HOUSE BILL NO. 466 "An Act establishing the Adak Reuse Authority." Co-Chair Hanley assigned HB 466 to a subcommittee consisting of Co-Chair Foster as Chair and Representatives Kelly and Grussendorf. REPRESENTATIVE CARL MOSES, sponsor HB 466, spoke in support of HB 466. He noted that HB 466 would establish an Adak Reuse Authority to serve as the facilitating body for conversion of the Naval Air Base to civilian use. He observed that there is no local government on Adak Island. The Authority would perform administrative functions relative to the Reuse Plan. He observed that the objective of the Navy is to vacate the Adak site earlier than January 1998. The legislation would allow the Governor to appoint a 7 member Authority. The Authority would develop and implement a comprehensive Reuse Plan. The Authority would be empowered to enter into contracts, operate enterprises, receive grants, assets and other funds, disburse funds, distribute assets and issue revenue bonds. An enterprise development account would also be established. Representative Moses asserted that in line with base closure procedures nationwide that the Department of Defense makes some funding available for economic redevelopment. He emphasized that communities and municipalities in the area are supportive. He noted that the Coast Guard, Corps of Engineers, Navy and other groups wish to maintain a presence on the Island. He noted that Adak has a world class 7 airfield, two deep water port facilities and a modern tank farm. He observed that there are approximately $2.3 billion dollars in fixed and rolling assets currently on the Island. Representative Martin asked if there will be a cost to the State. Representative Moses stated that he hoped that there will not be any cost to the State. He noted that there is considerable federal money available for the transition. Representative Martin questioned the State's responsibility to provide services until the transition takes place. Representative Mulder stated that there are a number of federal agencies that are interested in maintaining a presence in Adak. He stated that the income derived from federal agencies would offset operation costs. He stressed that the transitional phase will be the most difficult. In response to a question by Representative Martin, Representative Moses stated that the highest point on the Island is 2,500 thousand feet. He added that the every twin jet that flies from Anchorage overseas uses the airport as an alternate landing site. He observed that closure of the airport would effect these flights. Representative Martin noted that earthquakes are common, but that there are no glaciers on the Island. Representative Moses noted that the base has geothermal potential. Representative Parnell asked if the State's Bond Council has issued a legal opinion on the validity of the scope being given to the Authority. Representative Moses stated that he did not know of any legal opinions. In response to a question by Representative Parnell, Representative Moses noted that there will be proceeds from investments. He anticipated that federal transition money would be available. Representative Parnell asked what would happen to the Authority's assets if the Authority went bankrupt. Representative Moses noted that the Authority cannot obligate the State. Representative Mulder suggested that the project would be moth-balled if the Authority did not succeed. Representative Brown asked if bonds issued by the Authority would obligate the State. Representative Moses reiterated that the legislation clarifies that the State cannot be obligated. Representative Brown noted that up to $4.0 million dollars in bonds could be issued. Representative Carl stated that he did not anticipate that bonds to that magnitude would be issued. He clarified that specified 8 revenue bonds could be issued for additional projects. Representative Brown asked if the Authority would stand in the place of a local government. Representative Moses recommended that within one year of the formation of a first class city or borough that the Authority fold into the municipality. He clarified that the Navy will donate facilities to the State without any requirement for payment. Representative Brown referred to page 9, (b). Representative Moses explained that the Authority would not have taxation powers. Representative Brown questioned if the State would have the power to tax. TIM BENINTENDI, STAFF, REPRESENTATIVE MOSES agreed that the Authority would not have the power to tax. The sponsor agreed to clarify the intent of (b) on page 9. Representative Martin referred to Fort Richardson and the issue of Native rights to surplus military property. Representative Moses noted that Native groups can work through the Interior Department to obtain surplus military equipment. Representative Martin asked if Adak has been classified as surplus property. Representative Moses pointed out that Adak is in the process of going through base closure procedures. Representative Brown noted that the operating budget of the Authority would be subject to provisions of the Executive Budget Act. She asked the relationship of the revenue stream from the use of facilities at Adak. She questioned how these funds could be subject to the Executive Budget Act if they are not state funds. She referred to problems with the Sutton/Glenallen intertie. She observed that it is not always clear what is financially sound. She expressed concern that the State will be responsible for additional debt. She asked how the State could escape liability if decisions are made by state officers. HB 466 was assigned to a subcommittee consisting of Co-Chair Foster as Chair and Representatives Grussendorf and Kelly. SENATE BILL NO. 6 "An Act relating to registration of a motor vehicle and suspension of a driver's license for failure to appear in court or failure to pay a fine." SENATOR ROBIN TAYLOR, sponsor SB 6, testified in support of the HCS CSSB 6 (CRA). He noted that the intent of the legislation is to encourage individuals to pay some of the 25,000 traffic fines for moving violations that go 9 uncollected each year. He noted that HCS CSSB 6 (CRA) was designed to provide additional leverage to the Alaska Court System in the collection of fines. It would also apply to an individual who fails to appear in court. He maintained that HCS CSSB 6 (CRA) would be a valuable tool for use by the courts in addressing the problems created by those who choose to ignore the law, especially those who fail to make court ordered appearances or to pay fines imposed by the court. He explained that the legislation was based on laws of other states. He observed that in the state of Washington over 50 percent of those who receive notice of possible sanctions clear up outstanding matters within one week. He noted that HCS CSSB 6 (CRA) allows the court to suspend the driver's license of anyone who fails to make a court appearance or pay a fine. The legislation provides that an offender's permanent fund dividend could be attached. He asserted that HCS CSSB 6 (CRA) will generate revenue, through the collection of outstanding fines and reinstatement fees collected by the Division of Motor Vehicles. He stressed that the legislation does not involve parking violations. Representative Brown observed that the accompanying fiscal notes showed a net cost to the legislation. Senator Taylor noted that the Department of Law's fiscal note, dated 2/23/96 was based on the assumption that requirements of the bill could result in a jury trial and court appointed counsel. He noted that the Department is anticipating that the Court's ruling in Baker versus City of Fairbanks would apply. He disagreed with the Department's assessment. He did not feel that the $657.5 thousand dollar Court System's fiscal note was justified. Representative Mulder referred to a letter by the National Motorist Association. He summarized that the letter concludes that the legislation will raise a $15 dollar ticket to the level of a suspended license charge. He asked if Senator Taylor agreed with that conclusion. Senator Taylor did not agree with their conclusion. He emphasized that the legislation will provide motivation to pay fines. Co-Chair Hanley pointed out that the fiscal notes by the Department of Public Safety have not changed. He noted that the Department of Law's new interpretation regarding mandatory jury trials is the basis for increased fiscal notes by the Alaska Court System and the Departments of Law and Administration. ANNE CARPENETI, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW explained that the Department's fiscal note is based on the concern that the Court will rule that the Baker versus City of Fairbanks ruling will apply to the legislation. The 10 Baker case ruled that a jury trial and subsequent court appointed counsel is required due to the revocation of the driver's license. She noted that the Department is contesting the Court's ruling. She withdrew the Department of Law's fiscal note (copy on file). MIKE FORD, LEGAL COUNSEL, DIVISION OF LEGAL SERVICES stated that in his opinion HCS CSSB 6 (CRA) will not trigger the requirement for a jury trial. He noted that if enough speeding tickets are acquired a person's license is revoked under a point system. He stressed that because a license is lost under a point system does not give rise to the right of a jury trial for each ticket. He observed that if a person fails to pay a fine or appear in court that there is a collateral affect which may result in suspension of the license. He acknowledged that the Court could rule that the right to a jury trial pertains, but he did not think it would do so. Senator Taylor referred to "use it and loose it" legislation passed in 1995. The Alaska Supreme Court ruled in Baker versus City of Fairbanks, 471 P. 2d 386 (Alaska 1970) that the revocation of a license as a penalty stemming from a criminal offense requires a jury trial on the underlying offense. He noted that the Department of Law is appealing the Court's ruling. Ms. Carpeneti agreed that the Court's ruling is being appealed. Co-Chair Hanley noted that the Department of Law has withdrawn their fiscal note. CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM stated that the Alaska Court System would revise their fiscal note to reflect the withdrawal of the Department of Law's fiscal note. He explained that they would reinstate their original fiscal note for $7.2 thousand dollars. Co-Chair Hanley noted that the Department of Administration's fiscal note from the Public Defender Agency was also based on assumptions that a jury trial would be required. Representative Mulder stated that it would be consistent to revise the Department of Administration's fiscal note to their original position. Representative Brown referred to language on page 2, line 31. Ms. Carpeneti explained that the intent is that the suspension for failure to appear would be terminated and upon a finding of guilt for the underlying offense the license be again suspended. Mr. Ford pointed out that the provision relates to suspension under the subsection. The provision only applies 11 if the offender was suspended for not appearing in court or not paying the fine. Representative Mulder questioned if Legislative Intent should be added to indicate that the legislation is not intended to entitle offenders to a jury trial. Mr. Ford observed that the issue of jury trial is a matter of constitutional interpretation. He did not think that an expression of intent by the Legislature would affect the Court's interpretation. SENATOR DAVE DONLEY requested that the Committee return HCS CSSB 6 (CRA) to the version that passed the Senate. He noted that the legislation was amended in the House Community and Regional Affairs Committee. He provided members with an amendment that would restore HCS CSSB 6 (CRA) to the version passed by the Senate (Attachment 1). He explained that HCS CS 6 (CRA) deleted a section added on the floor of the Senate limited the authority of Parking Authorities. He noted that Anchorage is the only municipality that currently has a parking authority. He provided members with a memorandum, dated 2/27/96 (Attachment 2). He explained that the amendment would require citations issued by a municipality to conform with the requirements of AS 12.25.200. He explained that this would require that basic information would be provided on any citation issued. The amendment would also require that an appeals process substantially similar to state law be provided. He observed that Attachment 2 compares the Anchorage Parking Authority's appeals process to state law. He stressed that under the Anchorage Parking Authority the fine must be paid before the appeal process is completed. Under the state process the fine is suspended until the appeal is completed. He added that the legislation would limit the authority of parking authorities to hire individuals that are not peace officers to issue citations. Individuals that are not peace officers could only issue fines for one half of the fine structure adopted by the Supreme Court. Peace officers could issue fines for the full amount. He maintained that individuals hired to issue citations would not have the same level of training as a peace officer. He asserted that these employees would have a conflict of interest since their salaries are derived from writing citations. He alleged that these employees must meet a quota. He observed that a person's permanent fund dividend or license could be taken based upon citations issued by the Anchorage Parking Authority. He stressed that procedural protections need to be in place. Co-Chair Hanley asked if Senator Donley could cite examples of ticketing abuse by the Authority. Senator Donley 12 stressed that he has received accounts that seem to have inherent unfairness involved. He observed that an employee of the Anchorage Parking Authority decides if a person's objection is valid. He maintained that there is an inherent conflict of interest in allowing the Anchorage Parking Authority to establish their own appeals process. In response to a question by Co-Chair Hanley, Senator Donley noted that a person can appeal to the Superior Court. He pointed out that a person must pay a $100.0 hundred dollar non-refundable fee to appeal a citation by the Anchorage Parking Authority before the Superior Court. He added that a $750.0 dollar bond is also required. Senator Taylor maintained that problems with the Anchorage Parking Authority should be taken up with the Anchorage Assembly. He stressed that HCS CSSB 6 (CRA) only involves moving traffic violations. He spoke in support of HCS CSSB 6 (CRA). Senator Donley suggested that the restriction on fine levels could be removed and the other provisions maintained. DAVE HARBOUR, ANCHORAGE PARKING ANCHORAGE (APA) testified via the teleconference network. He maintained that APA's appeal process is user friendly. He asserted that APA's appeal proceedings are in compliance with the Administrative Procedures Act and the Anchorage Municipal Code. He observed that APA operates a toll free phone number to answer questions about citations and appeals and that appeals can be deliver by fax or mail. He stressed that on request hearing officers provide hearing opportunities after hours and on weekends. He asserted that no fee of any kind is charged for an appeal. He noted that the deadline for filing an appeal was increased from 7 to 30 days. No payment penalty is assessed until 30 days after the issuance of a written decision from the hearing officer. He noted that APA supports requests for waivers of Superior Court bond requirements. He stressed that HCS CSSB 6 (CRA) will not effect APA's authority. Mr. Harbour referred to Attachment 2. He maintained that the appeal process meets all the tests imposed by the State or municipality. He maintained that APA has responded to requirements pertaining to information contained on the citations issued by APA. He stressed that "if a ticket is a bad ticket it should not be issued by anybody." He maintained that APA tickets are not inferior just because employees wear a different uniform. He stressed that traffic offenses are not parking offenses. He stated that quotas are not given to APA officers. He maintained that APA officers do not receive bonuses based on tickets issued. 13 He noted that the Port of Anchorage, Anchorage Telephone Utility, Municipality of Anchorage's security office, State Troopers, Anchorage Police Department and the Anchorage International Security Office have employees trained and certified by APA to issue tickets. Mr. Harbour objected to language contained in Attachment 2. He maintained that APA would be subject to a legal challenge if it abused its authority. Representative Brown questioned if APA has the authority to forward fines to a collection agency while citations are on appeal in Superior Court. Mr. Harbour stated that APA does not recommend that citations be paid while on appeal. He maintained that fines are suspended during appeal. He agreed that APA has the municipal authority to refer fines to collection agencies. He stated that he has no knowledge of any case in which payment was not suspended during appeal. He stated that if a citation is not appealed within 30 days the individual's right to appeal is forfeited. After 30 days the individual is given notice that they have another 30 days to pay the fine with an additional $15.00 dollar penalty. If the fine and penalty are not paid the offender is given a notice that non-payment will result in the fine's referral to a collection agency. Senator Donley clarified that the information contained in Attachment 2 was given to his staff by an employee of the Anchorage Parking Authority. TIM ROGERS, LEGISLATIVE PROGRAM COORDINATOR, MUNICIPALITY OF ANCHORAGE, BOARD MEMBER, ANCHORAGE PARKING AUTHORITY testified via the teleconference network. He spoke against the amendment prepared by Senator Donley. He stated that the amendment may infringe on municipal jurisdiction. He maintained that the requirement to employ peace officers to issue non-moving violations would place a financial burden on the municipality or result in a lack of enforcement of parking ordinances. BOB ALLEN, ANCHORAGE testified via the teleconference network. He spoke in support of the amendment prepared by Senator Donley. He noted that the Anchorage Ombudsman issued a report that APA's appeal process was unfair. He acknowledged that the procedure in question was changed, but maintained that APA changed their procedures grudgingly. He alleged that APA's hearing procedure would not stand the test of law. He criticized APA's hearing procedure. JAY DULANEY, DIRECTOR, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY clarified that the state fine for an unregistered vehicle is $50.0 dollars. Senator 14 Donley noted that the fine schedule is set by the State Supreme Court. The amendment would limit APA to one half of the fine schedule. JUANITA HENSLEY, CHIEF DRIVER'S SERVICES, DEPARTMENT OF PUBLIC SAFETY explained that municipalities are allowed to set their own bail for mail in forfeitures. If a Municipality of Anchorage peace office writes a citation for failure to have a front license plate the municipal fine is $75 dollars. If a state trooper or APA official write the same citation it is a $50 dollar fine. (Tape Change, HFC 96-53, Side 2) Representative Mulder acknowledged that problems exist within the Anchorage Parking Authority. He suggested that problems with APA be addressed through other legislation. Representative Kohring agreed that issues surrounding APA should be addressed in separate legislation. Representative Mulder MOVED to report HCS CSSB 6 (CRA) out of Committee with individual recommendations and with the accompanying fiscal notes from the Department of Public Safety, Department of Corrections and Alaska Court System's revised fiscal note of $7.2 thousand dollars. There being NO OBJECTION, it was so ordered. HCS CSSB 6 (CRA) was reported out of Committee with a "do pass" recommendation and with four fiscal impact notes; two by the Department of Public Safety; one by the Alaska Court System; and one by the Department of Corrections. ADJOURNMENT The meeting adjourned at 3:55 p.m. 15