HOUSE STATE AFFAIRS STANDING COMMITTEE March 19, 1994 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chairman Representative Gary Davis Representative Harley Olberg Representative Jerry Sanders Representative Fran Ulmer MEMBERS ABSENT Representative Pete Kott, Vice Chairman Representative Bettye Davis COMMITTEE CALENDAR FRED DYSON Confirmation to the State Human Rights Commission MOVED OUT OF COMMITTEE FOR JOINT SESSION CONSIDERATION DAVID H. CALL Confirmation to the Personnel Board MOVED OUT OF COMMITTEE FOR JOINT SESSION CONSIDERATION JULIE BENSON Confirmation to the Public Offices Commission MOVED OUT OF COMMITTEE FOR JOINT SESSION CONSIDERATION MERLE JANTZ Confirmation to the State Board of Registration for Architects, Engineers and Land Surveyors. MOVED OUT OF COMMITTEE FOR JOINT SESSION CONSIDERATION MICHAEL TAURIAINEN Confirmation to the State Board of Registration for Architects, Engineers and Land Surveyors. MOVED OUT OF COMMITTEE FOR JOINT SESSION CONSIDERATION SB 135: "An Act making a special appropriation to the Department of Transportation and Public Facilities to determine the cost of acquiring real property within the right-of-way of the proposed extension of the Alaska Railroad from Eielson Air Force Base to the Alaska-Canada border; and providing for an effective date." PASSED FROM COMMITTEE HB 347: "An Act relating to long-term plans of certain state agencies and recommendations regarding elimination of duplication in state agency functions." PASSED FROM COMMITTEE AS CSHB 347(HSTA) *HB 389: "An Act relating to criminal mischief." HELD IN COMMITTEE WITNESS REGISTER FRED J. DYSON 1223 Lugene Lane Eagle River, AK 99577 Phone: 694-3744 POSITION STATEMENT: Gave background information DAVID H. CALL 711 Gaffney Rd. Fairbanks, AK 99701 Phone: 452-2211 POSITION STATEMENT: Gave background information JULIE BENSON P.O. Box 75296 Fairbanks, AK 99707 Phone: 479-7655 POSITION STATEMENT: Gave background information MERLE JANTZ 1077 Vincent Ct. North Pole, AK 99705 Phone: 451-9353 POSITION STATEMENT: Gave background information MICHAEL J. TAURIAINEN Box 937 Soldotna, AK 99669 Phone: 262-4489 POSITION STATEMENT: Gave background information DIANE JENKINS P.O. Box 149 Tok, AK 99780 Phone: 883-5887 POSITION STATEMENT: Inquired about HB 347 TERESA SAGER-STANCLIFF, Staff Senator Mike Miller Alaska State Capitol, Room 423 Juneau, AK 99811-0460 Phone: 465-4976 POSITION STATEMENT: Addressed CSSB 135 for Senator Mike Miller, Sponsor REPRESENTATIVE SEAN PARNELL Alaska State Legislature Alaska State Capitol, Room 513 Juneau, AK 99811-0460 Phone: 465-2995 POSITION STATEMENT: Prime sponsor of HB 347 JACK FARGNOLI, Senior Policy Analyst Director's Office Office of Management and Budget P.O. Box 110020 Juneau, AK 99811-0020 Phone: 465-3568 POSITION STATEMENT: Supported HB 347 DENNIS POSHARD, Staff Representative Jim Nordlund Alaska State Capitol, Room 426 Juneau, AK 99811-0460 Phone: 465-4968 POSITION STATEMENT: Addressed HB 389 for Representative Nordlund, Sponsor PREVIOUS ACTION BILL: SB 135 SHORT TITLE: APPRO: AK RAILROAD EXTENSION STUDY SENATOR(S) SPONSOR(S):MILLER,Sharp,Frank,Phillips; REPRESENTATIVE(S) James JRN-DATE JRN-PG ACTION 02/26/93 504 (S) READ THE FIRST TIME/REFERRAL(S) 02/26/93 504 (S) TRANSPORTATION, FINANCE 03/16/93 (S) TRA AT 03:30 PM BELTZ ROOM 211 03/16/93 (S) MINUTE(TRA) 03/18/93 846 (S) TRA RPT 4DP 1NR 03/18/93 846 (S) FISCAL NOTE (DOT) 04/15/93 (S) FIN AT 06:45 PM SENATE FIN 518 01/24/94 2580 (S) FIN RPT CS 4DP 1NR SAME TITLE 01/24/94 (S) FIN AT 09:00 AM SENATE FIN 518 01/24/94 (S) MINUTE(FIN) 01/26/94 (S) RLS AT 11:30 AM FAHRENKAMP ROOM 203 01/26/94 (S) MINUTE(RLS) 01/28/94 2615 (S) RULES RPT 1 CAL 2 CAL/NR 01/28/94 2623 (S) READ THE SECOND TIME 01/28/94 2623 (S) FIN CS ADOPTED UNAN CONSENT 01/28/94 2623 (S) ADVANCED TO THIRD READING UNAN CONSENT 01/28/94 2623 (S) READ THE THIRD TIME CSSB 135(FIN) 01/28/94 2623 (S) PASSED Y13 N3 E4 01/28/94 2624 (S) EFFECTIVE DATE PASSED Y16 N- E4 01/28/94 2624 (S) Adams NOTICE OF RECONSIDERATION 02/01/94 2643 (S) RECONSIDERATION NOT TAKEN UP 02/01/94 2643 (S) TRANSMITTED TO (H) 02/02/94 2213 (H) READ THE FIRST TIME/REFERRAL(S) 02/02/94 2213 (H) TRANSPORTATION, STATE AFFAIRS, FINANCE 02/28/94 2557 (H) TRA REFERRAL WAIVED 02/28/94 2558 (H) CROSS SPONSOR(S): JAMES 03/12/94 (H) MINUTE(ECO) 03/19/94 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 347 SHORT TITLE: STATE LONG-TERM PLANNING SPONSOR(S): REPRESENTATIVE(S)PARNELL,Hanley,Therriault, B.Davis,James JRN-DATE JRN-PG ACTION 01/07/94 2018 (H) PREFILE RELEASED 01/10/94 2018 (H) READ THE FIRST TIME/REFERRAL(S) 01/10/94 2019 (H) STATE AFFAIRS, FINANCE 01/12/94 2043 (H) COSPONSOR(S): THERRIAULT 01/13/94 2056 (H) COSPONSOR(S): B. DAVIS 01/14/94 2084 (H) COSPONSOR(S): JAMES 03/08/94 (H) STA AT 08:00 AM CAPITOL 102 03/08/94 (H) MINUTE(STA) 03/10/94 (H) STA AT 08:00 AM CAPITOL 102 03/10/94 (H) MINUTE(STA) 03/19/94 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 389 SHORT TITLE: INCREASED PENALTIES FOR JOY RIDING SPONSOR(S): REPRESENTATIVE(S) NORDLUND,Finkelstein JRN-DATE JRN-PG ACTION 01/21/94 2124 (H) READ THE FIRST TIME/REFERRAL(S) 01/21/94 2124 (H) STATE AFFAIRS,JUDICIARY,FINANCE 03/10/94 (H) STA AT 08:00 AM CAPITOL 102 03/10/94 (H) MINUTE(STA) 03/19/94 (H) STA AT 08:00 AM CAPITOL 102 ACTION NARRATIVE TAPE 94-34, SIDE A Number 000 CHAIRMAN AL VEZEY called the meeting to order at 8:02 a.m. Members present were REPRESENTATIVES SANDERS, OLBERG and ULMER. FRED DYSON - CONFIRMATION HEARING TO THE STATE HUMAN RIGHTS COMMISSION CHAIRMAN VEZEY moved to the Eagle River offnet teleconference site and opened discussion on the confirmation of FRED DYSON to the State Human Rights Commission. Number 032 FRED DYSON introduced himself. (REPRESENTATIVE G. DAVIS joined the meeting at 8:03 a.m. A quorum was present.) MR. DYSON stated he has always been against discrimination. The Human Rights Commission deals mostly with discrimination housing and employment. He stated he has been in Alaska since 1964, living mostly in Anchorage and in Fairbanks for three years. He has three children and works in commercial fish. He worked in the oil industry for 13 years and has been in business for himself for the last 10 years. He served on the Anchorage Assembly for six years and has been involved with other various community projects. REPRESENTATIVE GARY DAVIS moved that the committee has reviewed the qualifications of FRED DYSON and recommends the appointment be forwarded to a joint session for consideration. CHAIRMAN VEZEY asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS MOTION PASSED DAVID H. CALL - CONFIRMATION HEARING TO THE PERSONNEL BOARD CHAIRMAN VEZEY moved to the Fairbanks teleconference site. He opened discussion on the confirmation of DAVID H. CALL to the Personnel Board. Number 150 DAVID H. CALL introduced himself. Number 160 REPRESENTATIVE FRAN ULMER asked if MR. CALL had requested appointment to the Personnel Board. MR. CALL answered yes. Number 171 REPRESENTATIVE ULMER inquired why he wanted to serve on the Personnel Board. MR. CALL responded he wanted to engage in public service and the Personnel Board had the ability to do things of importance. The board was not a figurehead group. He stated he has actually served the board for about a year and he had the training to be a useful member. Number 202 REPRESENTATIVE HARLEY OLBERG moved that the committee had reviewed the qualifications of DAVID H. CALL and recommends the appointment be forwarded to a joint session for consideration. Number 204 CHAIRMAN VEZEY asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS MOTION PASSED JULIE BENSON - CONFIRMATION HEARING TO THE PUBLIC OFFICES COMMISSION CHAIRMAN VEZEY opened discussion on the confirmation of JULIE BENSON to the Public Offices Commission. Number 243 JULIE BENSON, from Fairbanks teleconference site, introduced herself. Number 247 REPRESENTATIVE ULMER asked if MS. BENSON had ever worked on any campaigns. MS. BENSON stated she had not. Number 250 REPRESENTATIVE ULMER asked if MS. BENSON was familiar with the Alaska Public Offices Commission (APOC) laws. MS. BENSON said she was. Number 253 REPRESENTATIVE ULMER commented that APOC laws were extremely complicated and would take a lot of time to understand them. She asked if MS. BENSON was currently employed. MS. BENSON replied she was not. Number 256 REPRESENTATIVE ULMER asked if MS. BENSON could be a full- time volunteer and if she had already been serving the APOC. MS. BENSON responded yes she would serve as a full-time volunteer and she has been serving the APOC since April 1993. Number 260 REPRESENTATIVE ULMER asked if MS. BENSON had any opinions on how the APOC ought to be changed. Number 264 MS. BENSON answered that APOC just needs more money. Number 270 REPRESENTATIVE ULMER inquired if the APOC needed more money because they do not have adequate staff to do the job. Number 274 MS. BENSON affirmed REPRESENTATIVE ULMER. She stated they need a "xerox clerk" because, as it is now, staff has to stop whatever they are doing to do the xeroxing. The public does not have instant access to information because they have to wait for a staff person to become available to do the xeroxing. She stated they have been trying to obtain extra funds to hire a person for this job. Number 285 CHAIRMAN VEZEY questioned if MS. BENSON had sat in on an APOC meeting yet and who she would be replacing on the commission. MS. BENSON answered she had sat in on a meeting and she would be replacing Winston Burbank. Number 291 REPRESENTATIVE G. DAVIS moved that the committee had reviewed the qualifications of JULIE BENSON and recommends that the appointment be forwarded to a joint session. Number 295 CHAIRMAN VEZEY asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS MOTION PASSED MERLE JANTZ - CONFIRMATION HEARING TO THE STATE BOARD OF REGISTRATION FOR ARCHITECTS, ENGINEERS AND LAND SURVEYORS. CHAIRMAN VEZEY opened discussion on the confirmation of MERLE JANTZ to the State Board of Registration for Architects, Engineers and Land Surveyors. Number 311 MERLE JANTZ introduced himself. He stated he appreciated the opportunity to continue his public service in working with the Architects, Engineers and Land Surveyors Board. Number 319 REPRESENTATIVE G. DAVIS referred to the testing moneys for physical education exams that were "tied up," and asked if they were straightened out now. MR. JANTZ answered they were informed the money situation had been resolved during their February 14-15 meeting in Anchorage. Number 329 CHAIRMAN VEZEY inquired how MR. JANTZ planned on finding time to do the extra work. Number 331 MR. JANTZ responded the board is a commitment. He has been on the board since July 1993 and he appropriates his time for other projects wisely with evening and long distance work. He often works early in the morning and weekends to spend the time he needs to with the board. Number 341 CHAIRMAN VEZEY stated he appreciated his commitment. He moved that the committee has reviewed the qualifications of MERLE JANTZ and recommends that the appointment be forwarded to a joint session for consideration. He asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS. MOTION PASSED MICHAEL J. TAURIAINEN - CONFIRMATION HEARING TO THE STATE BOARD FOR ARCHITECTS, ENGINEERS AND LAND SURVEYORS CHAIRMAN VEZEY opened discussion on the confirmation of MICHAEL J. TAURIAINEN to the State Board for Architects, Engineers and Land Surveyors. Number 358 MICHAEL TAURIAINEN introduced himself. He stated with this confirmation, it would be his second term on the board. He has been serving the board for four years and has been a registered civil engineer in Alaska since 1974. Number 366 REPRESENTATIVE ULMER inquired of how well the board is working. Is the statute structured appropriately to keep their responsibilities reasonable in time commitment. Did they have adequate resources for their job specification. Number 372 MR. TAURIAINEN answered the time commitment is significant, but not overwhelming. Their board examiner is overwhelmed, however, with the number of applicants they have and is too busy doing other duties to help her. He stated they a reallocation of dollars to help her do her work. Number 389 REPRESENTATIVE ULMER asked if the board was one which generates through fees, sufficient program receipts to not only hire a person to work for them, but also additional staff if the legislature grants that ability. Number 391 MR. TAURIAINEN responded the board believes it is. He stated the board has discussed restructuring itself to be either independent or quasi-independent of the state. He noted changes in both the Oregon and Delaware boards. Number 400 REPRESENTATIVE ULMER inquired if the board was actively considering "taking one step away from the state," in order to have the fees adequately cover the work to be done. Number 403 MR. TAURIAINEN answered the board is not actively considering it, but it remains on their agenda to consider it further. Number 413 REPRESENTATIVE G. DAVIS commented he has known MR. TAURIAINEN for several years and he has worked for him and with him in the past. He noted when the board had its reception in Juneau it was quite professional. REPRESENTATIVE G. DAVIS moved that the committee had reviewed the qualifications of MICHAEL J. TAURIAINEN and recommends that the appointment be forwarded to a joint session for consideration. Number 426 CHAIRMAN VEZEY asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS. MOTION PASSED SB 135 - APPROPRIATION FOR THE ALASKA RAILROAD EXTENSION STUDY CHAIRMAN VEZEY opened CSSB 135, sponsored by SENATOR MIKE MILLER, for discussion. Seeing no one present from the sponsor's office, he moved to the Tok teleconference site for testimony. DIANE JENKINS, MEMBER BOARD OF DIRECTORS, TOK CHAMBER OF COMMERCE, asked questions about CSSB 135. She stated Tok did have an interest in CSSB 135. She asked if the studies that had been done several years ago were being reactivated. CHAIRMAN VEZEY answered no, CSSB 135 only provides a small appropriation to the Department of Transportation and Public Facilities, to reevaluate the cost of acquiring the right- of-ways that have already been identified. He noted the study had not been updated in 20-25 years. Number 472 MS. JENKINS asked if there was any chance the old pipeline corridor or canal would be used. CHAIRMAN VEZEY stated the study was not before him and CSSB 135 was merely an appropriation bill to evaluate the right- of-way. He did not believe the right-of-way in CSSB 135 was the same as the canal right-of-way. Number 483 REPRESENTATIVE ULMER noted the committee did have access to the right-of-way information if Tok would like to see it. She mentioned the two listed in her packet entitled "The Alaska Railroad Extension Route Selection Report," from 1979 and a follow up report which includes an environmental assessment of the route, from 1982. She stated the title work done on the report was $66,000. MS. JENKINS responded they would like a copy. Number 495 CHAIRMAN VEZEY returned to Juneau for testimony. TERESA SAGER-STANCLIFF, STAFF, SENATOR MIKE MILLER, gave the sponsor statement for CSSB 135. She stated CSSB 135 has a similar companion bill in the House, HB 484. She reiterated CSSB 135 would provide a $10,000 appropriation for an update of the original study done in 1979. The study was done on route selection for an extension of the railroad from Eielson to the Canadian border. The study was updated in 1982 and since then, there have been land transfers and acquisition in the area of the route. The appropriation in CSSB 135 would update the title work so a new cost estimate of acquiring the property for the right-of-way could be done. Number 514 REPRESENTATIVE G. DAVIS moved to pass CSSB 135 from committee with individual recommendations and attached fiscal note. CHAIRMAN VEZEY asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS. MOTION PASSED HB 347 - STATE LONG-TERM PLANNING REPRESENTATIVE SEAN PARNELL, PRIME SPONSOR, addressed HB 347. He mentioned the problems HB 347 was meant to address: 1) the general distrust in government; 2) the lack of an objective way for the legislature or the executive branch to make budget choices; 3) the focus on programs, rather than the people being served; 4) the lack of accountability in the spending of the budget. He stated when the departments testify about their job requirements and yearly results it has not been very useful, because they are not focusing on what the customer is receiving, or the end product. For example, the Department of Public Safety should measure how many people were killed on the Seward highway, rather than how many roads they covered and how many less enforcement officers they have. He felt the departments should be measured on more specific terms. REPRESENTATIVE PARNELL commented during his initial days of working with the budget last year, he asked each department for their long range plans over the next 10-20 years. He noted some departments had a relatively good "big picture view" of where they were headed, some wanted more money to develop a long range plan, and none had any objective set of measures for the legislature to use in evaluating their budget requests and their progress over time. He felt HB 347 is intended to offer this structure. Planning would establish statewide direction in key policy areas and help the state move away from "prices policy decision making." State resources could be aligned in a rational manner. HB 347 could help establish the priorities needed to be set for budgeting. He also mentioned with the present declining revenues, planning should help allocate resources in a way that is important to Alaskans. REPRESENTATIVE PARNELL stated "performance based budgeting" is not a new procedure. He noted Texas and Oregon as example states which presently use it. HB 347 is modeled after Texas legislation because he felt their financial situation was most similar to Alaska. He noted the main difference between Oregon and Texas legislation was that Oregon was public driven, while Texas was executive driven. Even with the different angles, the focus was still on the customer. REPRESENTATIVE PARNELL outlined HB 347. At the beginning of each governor's term, the governor will develop statewide goals to issue on May 1 of each odd numbered year. He noted in the CSHB 347, version O work draft before the committee there was a discrepancy on page 1, line 8, whereby it should state "odd-numbered" instead of "even-numbered." This would need to be corrected. He stated the two year cycle would start and the Office of Management & Budget (OMB) would issue each principle department about the state's economy and population. Between May 1 and July 1, those departments would develop their separate goals and objectives. Between July 1 and October 1, the OMB would review and approve each agencies goal, so these performance measures could be included in the agency's budget submitted to OMB. By Dec 15, OMB and the governor would have compiled the plans into one strategic long range plan, and would submit it as part of the budget process. REPRESENTATIVE PARNELL commented long-term planning is meant to be an ongoing process as it will be reviewed every two years and updated. He credited OMB for having been involved in "performance based budgeting" in the past. Number 629 CHAIRMAN VEZEY asked if REPRESENTATIVE PARNELL had a flow chart. REPRESENTATIVE PARNELL stated a flow chart should be in the packet. Number 639 CHAIRMAN VEZEY examined the flow chart and reiterated REPRESENTATIVE PARNELL's outline of the procedure in HB 347. He questioned if the process occurs in one calendar year. REPRESENTATIVE PARNELL affirmed CHAIRMAN VEZEY. Number 648 CHAIRMAN VEZEY asked what happened in the even-numbered years. REPRESENTATIVE PARNELL responded the OMB was still working on the specifics; however, they could either budget using the same performance measures or they could revise and update those performance measures. Once HB 347 is in place, the agencies basically have the even years "off" in not having any active work. Number 656 REPRESENTATIVE G. DAVIS referred to REPRESENTATIVE PARNELL's indication that when he had asked for the goals of the departments they did not already have them. He felt REPRESENTATIVE PARNELL was surprised. Number 660 REPRESENTATIVE PARNELL affirmed REPRESENTATIVE G. DAVIS. He noted the plans in HB 347 are meant to be six year plans, however, they need to be on a two year cycle to stay updated. Number 668 REPRESENTATIVE G. DAVIS stated he too had been surprised when he found there was not more organization when it was time to budget. He noted the lack of prioritization within the departments. Number 675 REPRESENTATIVE ULMER commented HB 347 reminded her of 1978- 1979 when "performance based budgeting" used to be done in Alaska. Jay Hammond then termed it "management by objective," whereby objectives were set, measurements of attainment were set, and periodically the attainment was reviewed. She noted the elements which made the program work: 1) training of agency managers; 2) commitment from the governor and OMB because it runs counter to the way business is usually done; 3) a person responsible for the follow through;... TAPE 94-34, SIDE B Number 000 REPRESENTATIVE ULMER continued. ...4) legislative involvement, brought in by the Executive branch, early in the process with an agreement that budgets would be based cooperatively on the stated goals and objectives; and 5) enforcement of policy goals with both rewards and penalties. She stated without these elements the program would be short-lived, and to maintain them it takes money. She directed the committee to the HB 347 zero fiscal notes and stated it would be like "passing crime bills without putting money into the Department of Corrections or Public Safety budget." An appropriation to OMB or the Governor's office, which they could then distribute to the agencies, would have to be made. She emphasized that existing personnel cannot just pick up another specific job. REPRESENTATIVE ULMER stated she encouraged the program and felt if the money was there to back up the program, it would be a good time to engage it again. Number 052 REPRESENTATIVE PARNELL reiterated the elements REPRESENTATIVE ULMER referred to and stated he had witnesses available to testify on those areas. He believed HB 347 would change a person's job description, rather than add to it. He recognized the program may not be enforced without additional money. REPRESENTATIVE ULMER commented "performance based budgeting" requires a focus on the long-term with external measurements, as opposed to simply numbers on paper. She emphasized the program would depend upon enough people understanding the program, with a commitment. Number 112 REPRESENTATIVE SANDERS asked REPRESENTATIVE ULMER what happened to the previous program. Number 115 REPRESENTATIVE ULMER answered the program was very active in the late 1970s and early 1980s, and it began to diminish around 1982. The program failed because it was too much money. She stated the tailored program became overwhelmed by the influx of money and the legislature's desire to do good by distributing money quickly. She noted the time was at the very end of the Hammond Administration and priorities were changing. Number 157 CHAIRMAN VEZEY asked the advantage of Section 2 in HB 347. Number 160 REPRESENTATIVE PARNELL replied Section 2 directs Legislative Budget & Audit (LB&A) to evaluate laws and look for duplications. The value is having someone to look for it. Section 2 was part of the Texas bill, and although he was not determined to include it, he felt it was a valuable function. Number 170 CHAIRMAN VEZEY stated he felt Section 2 just reiterates LB&A's authority and noted it states they will quit doing it December 31, 1997. Number 174 REPRESENTATIVE PARNELL corrected CHAIRMAN VEZEY in that Section 2 states the recommendations shall be submitted to the legislature by December 31, 1997. Number 184 JACK FARGNOLI, SENIOR POLICY ANALYST, DIRECTOR'S OFFICE, OFFICE OF MANAGEMENT & BUDGET (OMB), supported HB 347. He stated OMB has been involved with performance measurement over the past year, and as of the past few months, the importance of the program elevated to something they definitely wanted to do and intend to develop for implementation in the coming 18 months independent of HB 347. He agreed with REPRESENTATIVE ULMER on elements necessary to make the program successful. OMB intends to revamp the current budget process and supplant the new program into it. They would prefer a system very closely integrated to the delivery of budget documents to the legislature, rather than a separate track of plans which may, or may not, be linked to the budget developing process. MR. FARGNOLI commented HB 347 is a large undertaking, especially in regards to commitment. He stated the resource requirements were not as large as they could be, depending upon how the process is structured. He has been directed, when session is over, to devote 100 percent of his time to working with the departments, the legislature, LB&A, and the finance committees to develop the process, identify the training requirements, and to develop budget instructions and forms. The intention would be to focus on effectiveness, not so much efficiency. He noted presently, when the state looks into services it is providing to determine how successful they are, the state has very little budgetary apparatus for making those determinations. Performance based budgeting will provide a "budget based vocabulary" for making such determinations. MR. FARGNOLI addressed HB 347 fiscal notes in the packets. He referred to them as preliminary because the majority of detailed discussions had not been engaged in yet. He noted the departments have been asked to identify their training requirements, under the assumption OMB would provide all of the training necessary. The responses he believed, would differ dramatically from department to department, but "none of them will be trivial either in scale or importance." He stressed training for all levels is a key factor. Number 310 REPRESENTATIVE SANDERS stated he assumed from MR. FARGNOLI's opening statement that he supported HB 347. MR. FARGNOLI affirmed REPRESENTATIVE SANDERS. Number 315 REPRESENTATIVE SANDERS mentioned the tremendous fiscal note HB 347 will have, and questioned if MR. FARGNOLI felt HB 347 was a tool for moving towards a sixty or ninety day session. He believed the program would save a lot of money for the legislature because the finance committee would no longer have to constantly fly witnesses to Juneau to testify on programs. He felt there would be a large net savings, in addition to the benefits of the planning. Number 322 MR. FARGNOLI agreed with REPRESENTATIVE SANDERS, however, they did not view the process as encouraging to any one legislative approach. Number 329 REPRESENTATIVE SANDERS commented 75 percent of the work done deals with the budget and HB 347 would reduce it. Number 330 MR. FARGNOLI responded the intent would be to make the budget process more streamlined; however, reorientation more of their objective. Number 335 REPRESENTATIVE ULMER commented she thought MR. FARGNOLI was "exactly right." In relation to the committee and subcommittee process, it is very generalized and fairly superficial. She noted the subcommittee members do not always come prepared to meetings, so they do not know the goals, measurements, and how well they achieved them. She felt this type of work could be done during the interim if performance based budgeting system was in place. Periodic performance updates could also be sent out during the interim. Number 360 REPRESENTATIVE G. DAVIS asked if there had been something to set off the OMB to be so wrong that they felt the change was needed. Number 368 MR. FARGNOLI stated the OMB saw the absence of useful information in budget documents. They need feedback on their policy choices, of which they have very little. Number 386 REPRESENTATIVE G. DAVIS agreed with MR. FARGNOLI and stated it was obvious to a lot of the them. He referred to words which MR. FARGNOLI frequently used in his testimony such as "effectiveness" and "prioritization." He noted he had not found the use of those words in HB 347. Number 397 REPRESENTATIVE PARNELL offered on page 2, line 3, it could be amended to read, "an analysis of workload, priorities, and of the results..." Number 406 REPRESENTATIVE G. DAVIS stated he did not really have a preference. (REPRESENTATIVE SANDERS left the meeting a 9:13 a.m.) Number 412 CHAIRMAN VEZEY stated he found Section 2 to be a little superfluous. He asked for a comment. Number 414 MR. FARGNOLI responded the OMB did not have a problem with Section 2. They assumed Section 2, given the role and the function of a performance based budgeting system in evaluating agencies, would be helpful to investigate whether there are other statutes or regulations which bear on the question of how agencies should be measured. Section 2 would be a housekeeping measure and necessary for any new budget system in place. Number 431 REPRESENTATIVE PARNELL stated he was not opposed to the elimination of Section 2 if it were to suit the committee. CHAIRMAN VEZEY responded Section 2 did not seem to bother the other committee members. He reminded the committee that committee substitute for HB 347 which reflects on page 1, line 8, "each odd-numbered year" needed to be adopted. (REPRESENTATIVE SANDERS returned to the meeting at 9:15 a.m.) Number 440 REPRESENTATIVE G. DAVIS so moved. Number 446 CHAIRMAN VEZEY, hearing no objection, adopted the committee substitute to HB 347 reflecting the change on page 1, line 8, which now read "each odd-numbered year." Number 448 REPRESENTATIVE G. DAVIS directed to CHAIRMAN VEZEY's discussion on Section 2. He clarified a department would not be duplicating work so much as LB&A would be to check interdepartmental work. He stated Section 2 was important to have identified in CSHB 347 so duplication was not forgotten. He noted it is not in the duties of department to check what other departments are doing so there is no duplication. Number 467 REPRESENTATIVE ULMER moved to pass CSHB 347 from committee with individual recommendations, asking unanimous consent. Number 468 CHAIRMAN VEZEY, hearing no objection, asked the committee secretary to call the roll. IN FAVOR: REPRESENTATIVES VEZEY, ULMER, G. DAVIS, SANDERS, OLBERG. ABSENT: REPRESENTATIVES KOTT, B. DAVIS. MOTION PASSED WITH DO PASS RECOMMENDATION CHAIRMAN VEZEY called for a recess at 9:17 a.m. CHAIRMAN VEZEY reconvened the meeting at 9:25 a.m. Members present were REPRESENTATIVES G. DAVIS and OLBERG. HB 389 - INCREASED PENALTIES FOR JOY RIDING CHAIRMAN VEZEY opened HB 389, Sponsored by REPRESENTATIVE JIM NORDLUND and Co-Sponsored by REPRESENTATIVE DAVID FINKELSTEIN, for discussion. Number 489 DENNIS POSHARD, STAFF, REPRESENTATIVE JIM NORDLUND, gave the sponsor statement for HB 389. He apologized for REPRESENTATIVE NORDLUND not being in attendance due to a prior personal commitment. He stated HB 389 amends the criminal statutes to increase the penalties for joy riding. The current penalty for the first offense, Criminal Mischief III (a class A misdemeanor), would be changed to Criminal Mischief II (a class C felony). He stated the penalty for a second offense, Criminal Mischief II, would be changed to Criminal Mischief I (a class B felony). MR. POSHARD stated HB 389 was introduced because of the increase in auto theft and the lack of convictions. Current laws allow many offenders to plea down to the lesser offense of joy riding. MR. POSHARD noted about 500 incidents per year of joy riding. In 1993, only 99 cases were prosecuted, of which the vast majority were misdemeanors. Only two cases went to trial on a contested basis. In most cases the defendants plead guilty, or the charges were dropped in exchange for a plea of guilty to a lesser charge of driving while intoxicated or of theft. (REPRESENTATIVE SANDERS and ULMER rejoined the meeting at 9:27 a.m.) MR. POSHARD stated Anchorage Assembly members brought this problem to their attention. A theft charge requires someone to have the intent to deprive someone of their property. He stated the intent is what is difficult to proved, therefore it is easier to allow the defendant to plea down to the charge of joy riding. Increasing the penalty for joy riding will help decrease the rising number of vehicles stolen and the tremendous dollar loss suffered by insurance companies and the victims of auto theft. He stated HB 389 is heavily supported by the Anchorage Police Department. Number 541 CHAIRMAN VEZEY stated HB 389 was deleting some wording and replacing it with very similar wording. MR. POSHARD clarified HB 389 would change the penalty for joy riding from Criminal Mischief III to Criminal Mischief II. Number 550 CHAIRMAN VEZEY turned to Section 1 and stated currently, to be under Criminal Mischief II there has to be damage to the vehicle or expenses incurred by the owner. HB 389 would make the penalty Criminal Mischief II regardless of whether there are any expenses incurred by the owner. MR. POSHARD stated CHAIRMAN VEZEY was correct. He replied the drafter of HB 389 felt this would be the cleanest way to make the change. Number 559 CHAIRMAN VEZEY read page 2, beginning with line 8, "(b) Except as provided in (c) of this section, criminal [CRIMINAL] mischief in the second degree is a class C felony." He stated the exception under (c) provides a class B felony if a person has a prior conviction. MR. POSHARD affirmed CHAIRMAN VEZEY. Number 570 CHAIRMAN VEZEY stated in Section 3 of HB 389, criminal mischief III would still be a misdemeanor, but the exceptions in subsection (c) would be deleted. He asked for an explanation. Number 575 MR. POSHARD explained Section 3 was a conforming amendment that deletes the exception for the joy riding provision referring to if the damage was less than $500. Number 579 CHAIRMAN VEZEY stated the question was over AS 11.46.484. Number 596 MR. POSHARD clarified Section 3, "[EXCEPT AS PROVIDED IN (c) OF THIS SECTION,...]," refers back to Section 2, "the person drives, tows away, or takes the propelled vehicle of another." He noted Section 1 (4),"[THE PERSON DRIVES, TOWS AWAY, OR TAKES THE PROPELLED VEHICLE OF ANOTHER...]," was deleted. Therefore, Section 3 is the conforming amendment deleting exemption which directly referred to the language in Section 1(4). Number 607 CHAIRMAN VEZEY stated the activity described under criminal mischief III is being classified as a class A misdemeanor, even though the existing statute provides it will be a class C felony if there were prior convictions. He felt HB 389 would be deleting the stipulation that under certain circumstances the offense could be a felony. He believed HB 389 made a violation of AS 11.46.484 a class A misdemeanor and would it not be a felony if was a repeat offense as described in Section 2(c). Number 620 MR. POSHARD clarified criminal mischief III would no longer be a penalty for joy riding or theft of an automobile because the language was deleted. Number 624 REPRESENTATIVE ULMER made clear MR. POSHARD was referring to page 2, lines 20-21. (REPRESENTATIVE OLBERG and SANDERS left the meeting at 9:36 a.m.) Number 634 MR. POSHARD stated there may some language left in AS 11.46.484 which may need to be deleted. He noticed Section 2 would allow for criminal mischief III to still be a misdemeanor. He noted this was not the intent when HB 389 was drafted. Number 643 REPRESENTATIVE ULMER commented confusion arises because all of the provisions of AS 11.46.484 are not seen in HB 389. She referenced AS 11.46.484(b) in Section 3, line 20, which deletes [EXCEPT AS PROVIDED IN (c)...]. She clarified AS 11.46.484(c) includes the provisions of the joy riding statute which is being deleted on page 1 of HB 389. Number 650 CHAIRMAN VEZEY stated page 1 is deleting wording in AS 11.46.482. Number 651 REPRESENTATIVE ULMER agreed with CHAIRMAN VEZEY. She responded AS 11.46.482 is referenced within AS 11.46.484 in the statute. AS 11.46.482(a)(4) which is deleted in HB 389 is embraced within AS 11.46.484 as an exception to the class A misdemeanor. Therefore, the language must be deleted to make it no longer a misdemeanor. Number 661 CHAIRMAN VEZEY stated he understood REPRESENTATIVE ULMER's clarification; however, he felt it did explain the changes to the other three sub-subsections of paragraph 3. He stated under current law AS 11.46.484(a)(2) would also be a felony, but HB 389 would change it to a class A misdemeanor. Number 666 REPRESENTATIVE ULMER responded the structure of the language in AS 11.46.484(b) provides an exception to it being a misdemeanor. Section (c) is being removed because HB 389 is changing the definition of the offense by deleting subsection (4). She believed the drafter was correct. Number 674 CHAIRMAN VEZEY commented more work would have to be done on Section 3, but not at this time. He inquired about Section 4. MR. POSHARD replied Section 4 was a conforming amendment to AS 11.46.486(a). The reference to AS 11.46.484(a)(2) was being deleted on page 3, line 1. Number 692 CHAIRMAN VEZEY inquired about Section 5. MR. POSHARD replied Section 5 deleted another reference to AS 11.46.482(a)(4) on line 4, page 3. On page 3, line 3, the word "third" is replaced with "second" to comply with the intent of HB 389. TAPE 94-35, SIDE A Number 000 CHAIRMAN VEZEY clarified that Section 5 was a housekeeping measure. He asked about Section 6. Number 015 MR. POSHARD replied Section 6 dealt with sentencing. CHAIRMAN VEZEY stated Section 6 would mandate a minimum sentence. Number 019 MR. POSHARD agreed with CHAIRMAN VEZEY. The misdemeanor charge would be changed to a felony charge. Number 043 REPRESENTATIVE ULMER referred to the "Assumptions" section on page 2 of the Department of Corrections' fiscal note. It states, "The Municipality of Anchorage, which has its own `joy riding' law now, prosecutes an additional 35 such cases per year... It is assumed that the bill would have the effect of converting all the Municipality misdemeanor cases into State felony cases." She asked if this effect has been discussed. She was concerned about the statewide trend of all misdemeanor cases not being prosecuted at the municipal level, thereby leaving the state to "pick up the bag." MR. POSHARD said he could not comment because they have not spoken with the prosecutor's office for the municipality of Anchorage. Number 072 REPRESENTATIVE ULMER stated it would be worthwhile to find out their intentions as to whether or not they plan to continue to prosecute joy riding violations as misdemeanors. If the municipality of Anchorage did intend to continue, Department of Corrections may be able to down scale their fiscal note and reduce the state financial impact. Number 086 CHAIRMAN VEZEY stated he would like to see how much actual property damage is involved in joy riding. If $1.5 million were to be spent on the incarceration of offenders, their cost to society should also be examined. MR. POSHARD answered he did not know how much damage is done statewide, but he did have figures for Anchorage. Over the past 5 years, approximately $51 million dollars in vehicles had been taken, of which nearly $6 million have never been recovered. Number 108 CHAIRMAN VEZEY commented those items not recovered would not fall under the statute referred to in HB 389. Those items would be designated under theft. Number 110 MR. POSHARD affirmed CHAIRMAN VEZEY. He stated they contend that increasing the penalty for joy riding would also reduce theft because they would now both be carrying a felony charge. He noted many of the vehicles involved in joy riding do end up with damage to them. This proposes an added cost to insurance companies and victims. Number 129 CHAIRMAN VEZEY mentioned the fine connected with the charge of joy riding and the possibility of short-term jail time for those convicted. He stated the loss of a driver's license could be considered as a penalty for joy riding in HB 389. He commented most people convicted of joy riding do not get jail time and may or may not pay their fine; however, they still have their license intact. Number 159 MR. POSHARD responded CHAIRMAN VEZEY's assumptions about those individuals who commonly joy ride were correct. Regarding license revocation, he stated REPRESENTATIVE NORDLUND was open to changes on HB 389. HB 389 was meant to facilitate discussion on different means to curb joy riding. Number 177 CHAIRMAN VEZEY, hearing no more questions, held HB 389 in committee for further review. He asked MR. POSHARD to ask REPRESENTATIVE NORDLUND to examine Section 3, therewith a sponsor statement could be provided in explanation. He was not convinced that the penalty in Section 3 was not being reduced. ADJOURNMENT CHAIRMAN VEZEY, having no more business before the committee, adjourned the meeting at 9:54 a.m.