MINUTES SENATE FINANCE COMMITTEE May 1, 1994 1:10 p.m. TAPES SFC-94, #85, Side 1 (150-end) SFC-94, #85, Side 2 (end-000) SFC-94, #87, Side 1 (000-550) CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 1:10 p.m. PRESENT In addition to Co-chair Pearce, Senators Rieger, Kerttula, Kelly, Jacko and Sharp were present. Co-chair Frank joined the meeting after it was in progress. ALSO ATTENDING: Representative Gail Phillips, sponsor of HB 319; Senator Loren Leman; Representative Harley Olberg, sponsor of HB 427; Cheryl Sutton, aide to Representative Moses, sponsor of HB 230; Representative Eldon Mulder, sponsor of HCR 32 and HB 421; Jeff Morrison, Director, Administrative & Support Services Division, Department of Military & Veteran Affairs; Representative Jeannette James, sponsor of HB 222; David Skidmore, aide to Senator Frank; Jack Chenoweth, attorney, Legislative Legal Counsel, Legislative Affairs Agency; Sherrie Goll, lobbyist, Alaska Women's Lobby and KIDPAC; Jane Andrene, Executive Director, Council on Domestic Violence and Sexual Assault; John George for the Outdoor Council; George Dozier, aide to Representative Kott, sponsor of HB 231; Thomas Williams, Director, Permanent Fund Dividend Division, Department to Revenue; Larry Meyers, Director, Income & Excise Audit Division, Department of Revenue; Gerald L. Gallagher, Director, Division of Mining, Department of Natural Resources; Larry LaBolle, aide to Representative Larry Foster, sponsor of HB 498; C.E. Swackhammer, Deputy Commissioner, Department of Public Safety; Mike Greany, Director, Legislative Finance Division; representatives of the media, aides to committee members and other members of the legislature. SUMMARY INFORMATION CSSB 378(STA): An Act relating to permanent fund dividend program notice requirements, to the ineligibility for dividends of individuals convicted of felonies or incarcerated for misdemeanors, and to the determination of the number and identity of certain ineligible individuals; and providing for an effective date. Thomas Williams, Director, Permanent Fund Dividend Division, Department of Revenue, spoke to the department's concerns regarding SB 378. Senator Frank proposed Amendment 1. Amendment 1 was ADOPTED. CSSB 378(FIN) was REPORTED out of committee with a "do pass," zero fiscal notes for the Department of Corrections and the Department of Revenue, and an undetermined fiscal note for the Alaska Court System. CSHB 222(FIN): An Act relating to landlords and tenants and to the applicability of the Uniform Residential Landlord and Tenant Act, to termination of tenancies and recovery of rental premises, to tenant responsibilities, and to the civil remedies of forcible entry and detainer and nuisance abatement; and amending Rule 62(a) of the Alaska Rules of Civil Procedure and Rule 24(a) of the Alaska District Court Rules of Civil Procedure. Representative Jeannette James, sponsor of HB 222, and David Skidmore, aide to Senator Frank, testified in support of HB 222. Jack Chenoweth, attorney, Legislative Legal Counsel, Legislative Affairs Agency, explained each section of the bill. SCSCSHB 222(FIN) work draft "V" was ADOPTED. Amendment 1 conceptually added commercial illegal gaming as an illegal activity to the bill. Amendment 1 was ADOPTED. Amendment 2 by Senator Rieger was ADOPTED. Senator Sharp proposed Amendment 3 presented by Senator Leman. Amendment 3 FAILED. SCSCSHB 222(FIN) work draft "V" as amended was REPORTED out of committee with a "do pass," a zero fiscal note for the Department of Safety, and a fiscal note for the Department of Law in the amount of $10.0. CSHB 230(FIN): An Act relating to fees for a commercial fishing vessel license. Cheryl Sutton, aide to Representative Moses, sponsor of HB 230, spoke in support of the bill. CSHB 230(FIN) was REPORTED out of committee with a "do pass," and a fiscal note for the Department of Fish & Game in the amount of $16.6 showing revenue of $871.5. CSHB 231(FIN): An Act relating to when previous conduct constituting a sexual offense may be used as an aggravating factor at sentencing. George Dozier, aide to Representative Kott, sponsor of HB 231, spoke in support of the bill. Jan Andrene, Council on Domestic Violence and Sexual Assault, also testified in support of HB 231. SCSCSHB 319(JUD): An Act relating to the training of law enforcement and corrections officers; to the establishment of surcharges to be assessed for violations of certain traffic offenses; allowing defendants who are unable to pay the surcharge to perform community work; creating the Alaska police standards training fund; and providing for an effective date. Representative Gail Phillips, sponsor of HB 319, testified in support of the bill. SCSCSHB 319(JUD) was REPORTED out of committee with a "do pass," and with zero fiscal notes for the Department of Law, the Department of Public Safety, and the Alaska Court System. SCSCSHB 351(STA): An Act relating to permits for the carrying of a concealed handgun; providing for local option elections in municipalities and established villages to prohibit the possession of a concealed handgun under a permit; and relating to the possession of weapons; and providing for an effective date. Sherrie Goll, lobbyist, Alaska Women's Lobby and KIDPAC, and Jane Andrene, Executive Director, Council on Domestic Violence and Sexual Assault, testified in opposition to HB 351. John George, for the Outdoor Council, testified in support of HB 351. Senator Rieger voiced his opposition to a concealed weapon. CSHB 351(FIN am(efd add) was REPORTED out of committee with a "do pass," a zero fiscal note for the Department of Law, a fiscal note in the amount of $2.44 for the Office of the Governor, and a fiscal note for the Department of Public Safety in the amount of $1,351.8 showing a revenue of $1,842.7. HB 421: An Act authorizing grants for temporary housing assistance during emergencies and disasters. Representative Eldon Mulder, sponsor of HB 421, and Jeff Morrison, Director, Administrative & Support Services Division, Department of Military & Veteran Affairs, testified in opposition to limiting grants to $5,000. Discussion was had by Senators Kelly, Sharp, and Co-chair Pearce regarding double payments and existing legislation for limits. HB 421 was HELD in committee until a new CS could be drafted. HB 427: An Act relating to compensation for members of the Local Boundary Commission. Representative Harley Olberg, sponsor of HB 427, testified in support of the bill. Senator Kelly proposed Amendment 1 which limited the number of paid meeting days to 40. Amendment 1 was ADOPTED. SCSHB 427(FIN) was REPORTED out of committee with a "do pass," and a fiscal note for the Department of Community & Regional Affairs for $14.8. CSHB 498(FIN): An Act providing for exploration incentive credits for activities involving locatable and leasable minerals and coal deposits on certain land in the state; and providing for an effective date. Larry Meyers, Director, Income & Excise Audit Division, Department of Revenue; Gerald L. Gallagher, Director, Division of Mining, Department of Natural Resources; and Larry LaBolle, aide to Representative Larry Foster, sponsor of HB 498, spoke to HB 498. Amendment 4, 5, and 6 were ADOPTED. SCSCSHB 498(FIN) was REPORTED out of committee with a "do pass," and zero fiscal note for the Department of Revenue. HCR 32: Establishing the Joint Task Force on Military Bases in Alaska. Representative Mulder, sponsor of HCR 32, testified in support of the bill. HCR 32 was REPORTED out of committee with a "do pass," and a zero fiscal note for Legislative Affairs Agency. SENATE CS FOR CS FOR HOUSE BILL NO. 319(JUD): An Act relating to the training of law enforcement and corrections officers; to the establishment of surcharges to be assessed for violations of certain traffic offenses; allowing defendants who are unable to pay the surcharge to perform community work; creating the Alaska police standards training fund; and providing for an effective date. CO-CHAIR DRUE PEARCE announced that HB 319 was before the committee and invited Representative Gail Phillips, sponsor of the bill, to speak to the committee. REPRESENTATIVE PHILLIPS said that HB 319 would do three things. It would establish a police standards training fund within the general fund, provide a source of receipts for the training fund paid for by the violations of certain traffic offenses such as moving violations and driving while intoxicated, and allow those unable to pay to perform community work. It allowed the legislature to appropriate each year for the training of law enforcement and correction officers statewide through the Alaska Police Training Council. Training for law enforcement was sorely needed and in too many instances was non-existent. The phrase, surcharge, was used to avoid the appearance of a dedicated fund and a way for municipalities and the court system to account for the amount to be transferred from the state treasury for training. She asked that ten and twelve dollar increase in fines not be misconstrued as a tax, surcharge, user fee, etc. since the legislature did not set the fine schedules. The Supreme Court and municipalities raised or adjusted bail forfeiture schedules and could do so without giving the legislature the opportunity to direct where the increase would be used and for what purpose. Anticipated receipts on only the collectable fines would amount to approximately $700,000 annually. Delayed effective dates would allow the Court System to implement their new accounting system and to amend their bail forfeiture schedules to reflect the proposed increase and would allow municipalities adequate time to prepare in-house accounting systems. Representative Phillips went on to say that the Senate Judiciary Committee substitute made one change on page 3, lines 11-13, where new language was added that said "the legislature may appropriate equal amounts from the fund to the Department of Public Safety for the Public Safety Training Academy and to the Alaska Police Standards Council." In answer to Senator Kelly, Representative Phillips said she had no problem with the added language. SENATOR KERTTULA said that a fee is a fee is a fee and a tax is a tax is a tax. Senator Kelly said "and this is a surcharge" to everyone's amusement. SENATOR JACKO MOVED for passage of SCSCSHB 319(JUD) from committee with individual recommendations. No objection being heard, SCSCSHB 319(JUD) was REPORTED out of committee with a "do pass," and with zero fiscal notes for the Alaska Court System, the Departments of Law, and Public Safety. Co-chairs Pearce and Frank, Senators Sharp, Kerttula, Jacko, Kelly, and Rieger signed a "do pass." HOUSE BILL NO. 427: An Act relating to compensation for members of the Local Boundary Commission. Co-chair Pearce announced that HB 427 was before the committee and invited Representative Harley Olberg to speak to the bill. REPRESENTATIVE OLBERG admitted that the fiscal note was troublesome in view of declining revenues and low oil prices but he felt this legislation was long overdue. The local boundary commission met 18 times a year (9 in-person and 9 by teleconference), and last year handled seven petitions. This year 12 petitions had already been scheduled with an outlook of increased activity. He felt with this modest compensation, competent people would stay involved. SENATOR KELLY asked if there would be an objection to limiting the number of days the Commission met. Representative Olberg said that there were 18 meetings per year and 5 members on the Commission. At present, they receive travel and per diem. Although it was one of the five constitutional mandated boards, it was not one of the 28 that was presently compensated. He said he was not opposed to limiting the number of days except that the volume of work was on the increase. Co-chair Frank voiced his opinion that $100 a day would probably not encourage extra meetings. Senator Kelly questioned whether they could be compensated for a "full day", if they spent part of the day on the telephone. Representative Olberg said there were regulations in place that could provide for partial days including teleconference meetings, because when they were at home on the phone, they did not collect travel and per diem. Senator Rieger said he was in support of compensating members for meetings. He agreed that there was an increase of work for this Commission and it deserved to be compensated for time and effort. Senator Kerttula commented that he hoped enough money would be raised to cover costs for these kinds of boards and commissions. Senator Kelly MOVED conceptual amendment 1 that limited meeting days to 40 full days. Co-chair Pearce called for a show of hands and the motion carried on a vote of 4 to 3 (Co-chair Pearce, Senators Sharp, Jacko, and Kelly were in support, Co-chair Frank, Senator Rieger and Kerttula were opposed). Senator Kerttula MOVED for passage of SCSHB 427(FIN) as amended from committee with individual recommendations. No objection being heard, SCSHB 427(FIN) was REPORTED out of committee with a "do pass," and a fiscal note for the Department of Commerce and Regional Affairs for $14.8. Co- chair Frank, Senators Sharp and Jacko signed "do pass." Co- chair Pearce signed "do pass either way." Senator Kerttula signed "no recommendation." Senator Kelly signed "do pass as amended." Senator Rieger signed "do pass without the amendment." CS FOR HOUSE BILL NO. 230(FIN): An Act relating to fees for a commercial fishing vessel license. Co-chair Pearce announced that HB 230 was before the committee and invited Representative Carl Moses, and Cheryl Sutton, aide to Representative Moses, sponsor of HB 230, to the table. CHERYL SUTTON said that HB 230 was a simple bill that raised the vessel license fee from an across the board $20 fee to a fee based on the length of the vessel. This $20 fee had been in effect for a long time, at least since 1979 when the commercial fisheries entry commission took over the licensing of vessels. On page 2 of the bill, the fees imposed per length of vessel were listed. She said that this bill was a small move to bring the fee in line with the revenue of the fisheries. She pointed out that Representative Moses had included intent language in the bill so that revenue generated be appropriated to the Department of Fish & Game to assist with budget needs. If HB 230 passes, Representative Moses respectively requested Co-chairs Pearce and Frank to keep this in mind as they moved through the Department of Fish & Game's budget items and especially the AYK needs for research & management. She went on to say that United Fishermen of Alaska supported this bill. Senator Jacko MOVED for passage of CSHB 230(FIN) with individual recommendations. No objection being heard, CSHB 230(FIN) was REPORTED out of committee with a "do pass," and a fiscal note for the Department of Fish & Game for $16.6 showing a revenue of $871.5. Co-chairs Pearce and Frank, Senators Jacko, Rieger, Kerttula, Kelly and Sharp signed "do pass." HOUSE CONCURRENT RESOLUTION NO. 32: Establishing the Joint Task Force on Military Bases in Alaska. Co-chair Pearce announced that HCR 32 was before the committee and invited Representative Eldon Mulder to speak to the bill. REPRESENTATIVE MULDER said this was the final year of the Base Realignment and Closure Commission (BRAC) evaluation of military bases around the United States. The Department of Defense would visit each facility to reduce the least important or valuable ones in an effort to save money. He said the military annually contributes $2.7 billion to Alaska's economy, and the reduction of any of our bases would have a devastating effect on the state. Representative Mulder went on to say that HCR 32 was introduced to establish the Joint Task Force to better inform the members of the BRAC Commission of the importance of Alaska bases. Senator Kelly pointed out the BRAC Commission would have seventeen new members by September 1994 who would have had no exposure at all to base issues nationwide. He felt the sooner the state could lobby for the strategic importance of Alaska, the better off the state would be in the final 1995 review of bases. Senator Kelly MOVED for passage of HCR 32 from committee with individual recommendations. No objection being heard, HCR 32 was REPORTED out of committee with a "do pass," and a zero fiscal note for the Legislative Affairs Agency. Co- chairs Pearce and Frank, Senators Sharp, Rieger, Jacko, and Kelly signed "do pass." HOUSE BILL NO. 421: An Act authorizing grants for temporary housing assistance during emergencies and disasters. Co-chair Pearce announced that work draft SCSHB 421(FIN) "E" version was before the committee. She pointed out new language on page 1, line 11-14, and page 2, line 1, which Co-chair Frank and Senator Kelly had approved. CO-CHAIR FRANK MOVED for adoption of work draft SCSHB 421(FIN) "E" version. No objection being heard, it was ADOPTED. Representative Mulder invited Jeff Morrison, Director, Administrative & Support Services Division, Department of Military & Veteran Affairs, to speak to the bill. In regard to the $5,000 restriction, he said that in a real emergency the restriction might be too constrictive. JEFF MORRISON said there were two sections in present law regarding disasters. One that pertains to individual and family grants and one that pertains to temporary housing. HB 421 only applied to the temporary housing provision. The other section pertaining to family grants, was intended to address immediate needs following a disaster other than housing, such as food, clothing, medicine, bedding, etc., and had a $5,000 limitation per individual or per family. HB 421 would not change that limitation. He did not support putting a limit on temporary housing because it might not meet the needs of disaster victims. There was a limit of eighteen months for housing and a time limit seemed a more appropriate limitation. In answer to Co-chair Pearce, Mr. Morrison said that if a disaster was solely a state disaster and not declared a federal disaster, people would not be eligible for Federal Emergency Management Agency (FEMA) grants. Usually the magnitude of a disaster, for instance, how many individuals it effected, was the factor mandating it as a federal disaster. Senator Kelly asked if the state would be reimbursed if an individual received state and then later federal assistance. Mr. Morrison said there was a provision in the current temporary housing plan to offset insurance proceeds. He did not know if a settlement would be treated the same way. Discussion followed regarding housing limitations by Senator Sharp, Mr. Morrison, and Co-chair Pearce. Senator Kelly requested a provision be added to the bill to provide reimbursement to the state if an insurance or federal settlement was received by individuals receiving grants. Mr. Morrison suggested that Senator Kelly's concern could be addressed by adding the words "or other payments" after the words "under private Insurance" on line 14, and on line 12, and replace the words "are not eligible for" with the words "for the cost of housing that are not covered under." The state then would not duplicate payments. Co- chair Pearce pointed out that it might be years before settlements or other payments were received, and this was an emergency grant so individuals could receive money quickly. Senator Kelly agreed with Co-chair Pearce that the state grant would be an immediate help, but if any money was received after that, the state should be reimbursed. Representative Mulder also agreed that the intent of HB 421 was to enable people to receive emergency funds quickly without the department having to do a lengthy housing inventory, etc. He said he was in support of the grant being repaid to the state if the individual or family received another settlement at a later date. Co-chair Pearce announced that SCSHB 421(FIN) would be HELD until language could be drafted to accomplish Senator Kelly's proposed amendment. CS FOR HOUSE BILL NO. 222(FIN): An Act relating to landlords and tenants and to the applicability of the Uniform Residential Landlord and Tenant Act, to termination of tenancies and recovery of rental premises, to tenant responsibilities, and to the civil remedies of forcible entry and detainer and nuisance abatement; and amending Rule 62(a) of the Alaska Rules of Civil Procedure and Rule 24(a) of the Alaska District Court Rules of Civil Procedure. Co-chair Pearce announced that SCSHB 222(FIN) was before the committee and invited Representative James, sponsor of HB 222, and David Skidmore, aide to Co-chair Frank, to the table. DAVID SKIDMORE said that the changes in the Senate Finance Committee version included several Judiciary Committee amendments regarding tenant obligations and some clarification of existing statutes. The only Judiciary Committee amendment that was not included increased the allowable amount of a security deposit that a landlord could charge. Co-chair Frank MOVED for adoption of SCSHB 222(FIN) "S" version. No objection being heard, it was ADOPTED. On request by Senator Rieger, Mr. Skidmore began to go through the bill section by section. Mr. Skidmore then asked Jack Chenoweth, attorney, Legislative Legal Counsel, Legislative Affairs Agency, to join them at the table. At this time Mr. Chenoweth spoke to the sections beginning with Section 4. End SFC-93 #85, Side 1 Begin SFC-93 #85, Side 2 In answer to Senator Rieger, Mr. Chenoweth said that a hearing was required to remove a tenant from a property. Discussion continued regarding tenant/landlord procedures and time constraints. In regard to the nuisance abatement provisions designed after a law from California, Co-chair Pearce asked if illegal gaming could be added to Section 8. Representative James said that she had no problem with it. SENATOR RIEGER asked about immediate eviction in the case of substantial damage. He did not support the idea that a landlord with a large security damage had to wait for more damage to be done before he could evict the tenant, and proposed removing that provision. Mr. Skidmore said, in answer to Senator Rieger, that SCSCSHB 222(FIN) work draft "V" removed Section 6, removing court rule changes that address continuances mandated by a mediation clause. Discussion followed by Mr. Chenoweth and Senator Rieger regarding Section 8, illegal acts and nuisance abatement. It was explained that neighbors can come to the court and ask that certain activities be stopped on a specific premises without action being taken by an unconcerned landlord. Co-chair Frank MOVED for adoption of SCSCSHB 222(FIN) work draft "V". No objection being heard, it was ADOPTED. Co-chair Frank MOVED for adoption of conceptual amendment 1 adding illegal gaming to Section 8. Senator Rieger suggested the addition of the word "commercial" to illegal gaming so individuals having a private poker party would not be effected. No objection being heard, amendment 1 was ADOPTED. Later, Mr. Skidmore asked for clarification of where illegal gaming would be added to the bill. Senator Rieger MOVED amendment 2, on page 13, lines 16-17, deleting all language after $400. No objection being heard, amendment 2 was ADOPTED. End SFC-93 #85, Side 2 Begin SFC-93 #87, Side 1 SENATOR SHARP MOVED amendment 3 requested by Senator Leman. Extensive discussion was had by Senators Leman, Rieger, Jacko, and Mr. Chenoweth regarding the landlord's refusal to rent to unmarried persons according to religious beliefs. Senator Rieger OBJECTED to the amendment. Co-chair Pearce called for a show of hands and the motion FAILED on a vote of 2 to 3 (Co-chair Pearce and Senator Sharp were in favor, Co-chair Frank, Senators Rieger, and Jacko were opposed). Co-chair Frank MOVED for passage of SCSCSHB 222(FIN) work draft "V" as amended. Senator Jacko OBJECTED. Co-chair Pearce called for a show of hands and the bill was REPORTED out of committee with a "do pass," on a vote of 4 to 1 (Co- chairs Pearce, Frank, Senators Rieger and Sharp were in favor, Senator Jacko was opposed), and with a zero fiscal note for the Department of Safety and a fiscal note for the Department of Law for $10.0. Co-chairs Pearce and Frank, Senators Rieger and Sharp signed "do pass." Senator Jacko signed "do not pass." Recess 2:45pm Reconvene 3:00pm SENATE CS FOR CS FOR HOUSE BILL NO. 351(STA): An Act relating to permits for the carrying of a concealed handgun; providing for local option elections in municipalities and established villages to prohibit the possession of a concealed handgun under a permit; and relating to the possession of weapons; and providing for an effective date. Co-chair Pearce announced that HB 351 was before the committee and invited testimony to the bill. SHERRIE GOLL, lobbyist, Alaska Women's Lobby and KIDPAC, testified in opposition to HB 351. She did not believe that this bill would make life safer for women. Instead, she felt more guns would mean more accidents and tragedies. Almost all people murdered were killed by someone they knew. Studies showed that 75 percent of justifiable homicides occur in the home where handguns for protection were already permitted. FBI statistics show that even police officers who receive hundreds of hours of training, still kill themselves with their own weapons. She believed that women would be better served by training in a martial art that could not be taken and used against her. She also asked that a provision be added to the bill that if a permitted gun was used in a domestic violence assault case, that permit would be revoked. She also pointed out the poor example parents, who carried guns, were giving to children. Ms. Goll urged, if HB 351 would pass, that strict safety measures be added to the legislation. She added, that if having more guns on the streets made us a safer nation, we should be the safest nation in the world. JANE ANDRENE, Executive Director, Council on Domestic Violence and Sexual Assault, testified in opposition to HB 351. She said this bill was being presented as a way to deter crime but a significant portion of the crime in Alaska were crimes of domestic violence and sexual assault. In crimes of sexual assault, 85 percent of the offenders were known to the victims and happened where the victim would not have access to a concealed weapon or be able to access the weapon quickly enough. A significant and realistic fear of many victims of family violence was that the partner or spouse had access to and was skilled at using firearms. Many times the threat of using them was made repeatedly toward the victim. If alcohol or stress was added to these situations, the possibility of lethality escalated in family violence. She also pointed out that domestic violence and sexual assault workers would also be threatened. She said carrying weapons openly would reduce the potential for violent crimes. JOHN GEORGE, for the Outdoor Council, said the safest weapon on the street was carried by someone who was trained and this bill provided for training. He felt those that went through the training, submitted to fingerprinting, photographing, and paid a fee, were going to be safe gun carriers. He urged support for HB 351. In answer to Senator Rieger, he said that strapping on a six gun would give a wild west approach. He said this bill targeted a person who would like to walk softly and carry a big stick. Co-chair Frank MOVED for passage of SCSCSHB 351(STA) from committee with individual recommendations. No objection being heard, it was REPORTED out of committee with a "do pass," a zero fiscal note for the Department of Law, a fiscal note for the Officer of the Governor for $2.44, and a fiscal note for the Department of Safety for $1,351.8 showing a revenue of $(1,842.7). Co-chairs Pearce and Frank, Senators Sharp and Kelly signed a "do pass." Senator Rieger signed "no recommendation." CS FOR HOUSE BILL NO. 231(FIN): An Act relating to when previous conduct constituting a sexual offense may be used as an aggravating factor at sentencing. Co-chair Pearce announced that HB 231 was before the committee. She invited George Dozier, aide to Representative Kott, sponsor of HB 231. GEORGE DOZIER said the Alaska Sentencing Commission in 1991 recommended adding an aggravator factor into the law. In a report, it indicated that sex crimes, because of their repetitive nature, constituted a danger to the public and that individuals that were incarcerated after being convicted of those types of crimes needed additional time of incarceration. The legislature did add this to the law but one situation was omitted and that was when an individual was before the court for presumptive felony sentencing for sexual abuse of a minor and that individual had previously committed sexual assault against an adult. HB 231 covers that overlooked provision. Discussion was had by Co-chair Pearce and Mr. Dozier regarding the fiscal notes. She said the committee had not received a fiscal note from the Department of Corrections. Jane Andrene, Executive Director, Council on Domestic Violence and Sexual Assault, testified in support of HB 231. She said that it made a strong statement that sexual assault was not acceptable. Senator Sharp MOVED for passage of CSHB 231(FIN) from committee with individual recommendations. No objection being heard, it was REPORTED out of committee with a "do pass," and zero fiscal notes from the Departments of Law, Administration (OPA, and PDA), Public Safety, and Corrections. Co-chairs Pearce and Frank, Senators Sharp and Kelly signed "do pass." Senators Rieger and Jacko signed "no recommendation." (See minutes of May 5, 1994 for further action on HB 231.) CS FOR SENATE BILL NO. 378(STA): An Act relating to permanent fund dividend program notice requirements, to the ineligibility for dividends of individuals convicted of felonies or incarcerated for misdemeanors, and to the determination of the number and identity of certain ineligible individuals; and providing for an effective date. Co-chair Pearce announced that SB 378 was before the committee and asked Co-chair Frank to speak to it. Co-chair Frank said that SB 378 was the same as the amendment that was added to HB 392, Representative Parnell's bill. Since there was objection to that amendment, Co-chair Frank would prefer to move this bill and not jeopardize passage of HB 392. Co-chair Pearce noted that Thomas Williams, Director, Permanent Fund Dividend Division, Department to Revenue, was available for questions. Co-chair Frank MOVED for passage of CSSB 378(FIN) from committee with individual recommendations. Co-chair Frank REMOVED his motion to MOVE the bill and Co-chair Pearce asked Mr. Williams to speak. Mr. Williams said that CSSB 378(STA) needed to be amended to have two year funding available for FY95. He also wanted the committee to know about the Department's concern that this legislation would reduce a number of dividends available for attachment by agencies, such as the child support enforcement agency. Co-chair Frank MOVED amendment 1. No objection being heard, amendment 1 was ADOPTED. Co-chair Frank MOVED for passage of CSSB 378(FIN) from committee with individual recommendations. No objection being heard, CSSB 378(FIN) was REPORTED out of committee with a "do pass," and zero fiscal notes for the Departments of Corrections, Revenue, and an undetermined fiscal note for the Alaska Court System. Co-chairs Pearce and Frank, Senators Kelly, Rieger, and Sharp signed "do pass." CS FOR HOUSE BILL NO. 498(FIN): An Act providing for exploration incentive credits for activities involving locatable and leasable minerals and coal deposits on certain land in the state; and providing for an effective date. Co-chair Pearce announced that HB 498 was before the committee. She also reminded the committee that amendments 1, 2, and 3 had been adopted, and amendments 4, 5, and 6 had been held in a previous meeting. Co-chair Pearce invited Gerald L. Gallagher, Director, Division of Mining, Department of Natural Resources; Larry E. Meyers, Director, Income and Excise Audit, Department of Revenue; and Larry LaBolle, aide to Representative Larry Foster, sponsor of HB 498, to join the members at the table. Senator Kelly MOVED amendment 4. In answer to Co-chair Frank, Mr. Gallagher said the department would not have a problem with amendment 4. No objection being heard, amendment 4 was ADOPTED. Senator Kelly MOVED amendment 5. No objection being heard, amendment 5 was ADOPTED. Senator Kelly noted that Senator Kerttula's amendment 1 would need to fit with amendment 5. Co-chair Frank MOVED amendment 6. Mr. Meyers spoke to the amendment in regard to the fiscal note. He agreed that the department would provide a new fiscal note. No objection being heard, amendment 6 was ADOPTED. Co-chair Frank MOVED for passage of SCSCSHB 498(FIN) from committee with individual recommendations. No objection being heard, SCSCSHB 498(FIN) was REPORTED out of committee with a "do pass," and a zero fiscal note from the Department of Revenue. Co-chairs Pearce and Frank, Senators Kelly and Sharp signed a "do pass." Senator Rieger signed a "no recommendation." ADJOURNMENT The meeting was recessed at approximately 3:15 p.m.